Arch Reinsurance (Arch Re) has signed a reinsurance transaction with Catalina General Insurance (Catalina).
As per the transaction, Arch Re will reinsure run-off liabilities associated with certain discontinued US Specialty Casualty exposures and various discontinued US Standard Programs businesses.
Arch Re assumed the liabilities from its affiliate, Arch Insurance Company, over time through internal reinsurance transactions.
Arch Worldwide Insurance Group chairman & CEO and property & casualty operations chief underwriting officer Nicolas Papadopoulo said: “As part of our normal risk management practices, Arch continuously reviews potential solutions available to protect us against the downside risk from our run-off portfolios.
“Going forward, this transaction will both provide capital relief and allow management more time to support further growth of our insurance platform and underwriting activities.”
As part of the transaction, Catalina will handle all claims for the run-off businesses, some of which date back to the early years of Arch Insurance Company.
Source: Company Press Release