Arch Re had signed the agreement with Aspen Re, after it announced exit from the global credit and surety reinsurance business
Image: Arch Re to acquire rights for Aspen Re’s business. Photo: Courtesy of rawpixel/Pixabay
Arch Capital Group’s subsidiary Arch Reinsurance (Arch Re) has signed an agreement with Aspen Insurance subsidiary Aspen Reinsurance (Aspen Re) to acquire the renewal rights of its global credit and surety reinsurance business, for an undisclosed amount.
Arch Re announced that it has entered the agreement, after Aspen Re announced the exit from its global credit and surety reinsurance business.
Furthermore, the two companies have agreed to begin additional discussions about the potential novation of the existing book in the coming months.
Arch Re Europe president and CEO Michael Hammer said: “This is a unique opportunity for us to not only augment and diversify our credit and surety portfolio through the acquisition of Aspen Re’s renewal rights, but to also add talented employees to our team.
“We appreciate working with Aspen to bring the two teams together and look forward to enhancing our overall service offering to our clients.”
Arch Re extends employment offers to Aspen Re’s Zurich-based workforce
Arch Re has made employment offers to all of Aspen Re’s Zurich-based credit and surety employees to join its existing credit and surety team based in Zurich.
Aspen Re chief underwriting officer Christian Dunleavy said: “We are very pleased to have reached agreement with Arch Re for the renewal of our reinsurance credit and surety business as we seek to create a more simple and focused reinsurance business at Aspen Re.
“This agreement with Arch Re facilitates continuity for both our staff and cedents with a strong counterparty, which was a critical consideration. We would like to wish our cedents and the credit and surety team well for their future with Arch Re.”
In July, Arch Capital had agreed to acquire Barbican Group from funds managed by Carlson Capital, an alternative asset management firm.
The deal included Barbican Managing Agency, Lloyd’s Syndicate 1955, Lloyd’s Syndicate 1856 (Arcus), Lloyd’s Special Purpose Arrangement (SPA) 6132, Castel Underwriting Agencies Limited (Castel) and other associated entities.
Arch Capital Group is a Bermuda-based company that offers insurance, reinsurance and mortgage insurance across the world, through its wholly owned subsidiaries. The company had $12.89bn in assets as of 30 June 2019.