Arch Capital Group Ltd., a globally diversified financial services group providing insurance, reinsurance and mortgage insurance, will open an operational hub in Raleigh and create 365 new jobs over four years. The company will invest $12.9 million in North Carolina by the end of 2019.
“The overall attractiveness of the area, combined with our existing operations in North Carolina and the incentives offered by the state were all factors in our decision to create an operational hub in Raleigh,” said Marc Grandisson, president and CEO of Arch Capital Group. “This region offers a talented and educated labor force, a collaborative business environment, and an appealing quality of life for our employees.”
Arch currently employs approximately 575 people in North Carolina, and this project will bring several operational functions supporting Arch’s long-term growth to Raleigh.
“Global finance and technology leaders like Arch choose North Carolina because they know our world-class universities and community colleges prepare talented students to succeed in those industries,” Gov. Roy Cooper said.
Salaries for the employees will vary by position and include a a wide variety of professional roles from entry level to executive. Once all positions are filled, the annual payroll impact in North Carolina will be $39.8 million. Wake County’s average annual wage is $56,245.
“Our state’s talent, top-notch universities and research institutions make us a tech and finance powerhouse,” said North Carolina Commerce Secretary Anthony Copeland. “Companies like Arch select North Carolina for its strong business climate and workforce.”
The North Carolina Department of Commerce and the Economic Development Partnership of North Carolina (EDPNC) led the state’s support for the company’s selection.
Arch Capital’s new project in Wake County will be supported, in part, by a state Job Development Investment Grant (JDIG). Over the course of the grant’s 12-year term, the project will grow the state’s economy by an estimated $760,747,000. Using a formula that accounts for the additional tax revenues generated by the new jobs, the JDIG agreement authorizes the potential state reimbursement to the company of up to $5,106,000 spread over 12 years. State payments only occur after the company has met its incremental job creation and investment targets. JDIG projects result in positive net tax revenue to the state treasury, even after taking into consideration the grant’s reimbursement payments to a given company.
Because Arch chose to locate in Wake County, classified by the state’s economic tier system as Tier 3, the company’s JDIG agreement also calls for moving as much as $1,702,000 in new tax revenue generated through the grant into the state’s Industrial Development Fund – Utility Account. The Utility Account helps rural communities finance necessary infrastructure upgrades to attract future business.
Partnering with state Commerce and the EDPNC on this project were the North Carolina General Assembly, the North Carolina Community College System, Wake County, the city of Raleigh, Wake County Economic Development, Wake Technical Community College, the Capital Area Workforce Development Board and the Greater Raleigh Chamber of Commerce.