Arch Capital Group Ltd. (ACGL), 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, Governor Roy Cooper announced today. The company will invest $12.9 million in North Carolina by the end of 2019.
“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,” Governor Cooper said. “I look forward to the new opportunities Arch will bring to Wake County.”
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.
“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 ACGL. “This region offers a talented and educated labor force, a collaborative business environment, and an appealing quality of life for our employees.”
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. We welcome the company’s investment in Wake County and the 365 well-paying jobs this project will bring.”
The North Carolina Department of Commerce and the Economic Development Partnership of N.C. (EDPNC) led the state’s support for the company’s selection.
Arch’s new project in Wake County will be facilitated, in part, by a Job Development Investment Grant (JDIG) approved by the state’s Economic Investment Committee earlier today. Over the course of the 12-year term of this grant, the project will grow the state’s economy by an estimated $760,747,000. Using a formula that accounts for the new 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 following performance verification by the Departments of Commerce and Revenue that 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. Even when new jobs are created in a Tier 3 county such as Wake, the new tax revenue generated through JDIG grants helps more economically challenged communities throughout the state. More information on the state’s economic tier designations is available here.
“I am proud to welcome Arch’s new facility and its investment in the Raleigh area,” said N.C. Senate Democratic Leader Dan Blue. “There is no better place to live and work than North Carolina. This project will support 365 well-paying jobs, and I am confident that talented North Carolinians are prepared to fill future positions.”
“Wake County is a hub for the financial services industry because of the region’s exceptional talent and world-class universities,” said N.C. Representative Grier Martin. “This project strengthens our state and community’ reputation as an industry leader.”
Partnering with N.C. 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.