Arch Capital Group, a Bermuda-based provider of property and casualty insurance lines, has agreed to acquire Ariel Re’s Credit & Surety reinsurance operations based in Zurich, Switzerland.

Following the completion of the transaction, Ariel Re’s Zurich based team will transfer to the Zurich office of Arch Reinsurance Europe Underwriting and will be fully operational with immediate effect.

Ariel Re’s current head of credit and surety Thomas Rothenberger will continue to lead the team upon its move to Arch.

Rothenberger said that Ariel Re believes that Arch’s outstanding capital position, deep experience and knowledge of this business line and risk culture provides it with an excellent opportunity to guarantee continuity to its clients and further grow its business

As part of the transaction, Ariel Re’s existing Trade Credit & Surety portfolio will be reinsured by Arch Reinsurance based in Bermuda.

The closing of the transaction is subject to regulatory approvals and other customary closing conditions.