Arch Insurance, part of Arch Capital Group Ltd, acquired Thimble, a New York-based company that offers quick insurance for small business owners.
The transaction will expand Arch’s suite of digital solutions for small business customers, per a press release published by the global mortgage insurer on Tuesday. Further details of the acquisition were not disclosed.
Thimble, founded in 2016, provides insurance “in minutes” to a plethora of industries including pet, beauty and cleaning services through its mobile app, website or over the phone. Since 2018, Thimble has delivered over 170,000 policies to small business owners in the country.
The acquired company works with a number of carriers, including Markel and Employer and it will continue doing so, while also offering new solutions through Arch, per an announcement.
“At Arch, we’re always looking to expand our digital solutions and create new, easy ways to do business with us,” said Jay Rajendra, chief strategy and innovation officer at Arch. “The Thimble team has created a best-in-class digital experience for small business customers and agents to acquire and manage insurance.”
The global company, whose operations were also impacted by the downward spiral of the mortgage industry, managed to grow some parts of its business in the fourth quarter of 2022.
Arch Capital’s mortgage insurance business, which besides the U.S. primary line, includes Australian and reinsurance operations, reported a 39% annual increase in underwriting income in Q4 2022. It totaled $373.5 million, compared with $244.9 million in the third quarter and $268.6 million a year ago.
Meanwhile, Arch’s U.S. business reported NIW (new insurance written) of $11.4 billion in the fourth quarter, compared with $17.4 billion in the third quarter and $22.5 billion one year ago.
Other stakeholders in the mortgage insurance pool, such as Essent Group and Mutual of Omaha, have also been participating in the M&A craze.
Essent Group purchased the title insurance subsidiaries of Finance of America’s Incenter business for $100 million in February, and Mutual of Omaha purchased Keller Mortgage’s assets in late-February.
Consolidation is expected to continue within the mortgage industry, with over 60 transactions predicted to close this year.
Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.