Arch Reinsurance announced a number of strategic initiatives to provide additional support to Gulf Reinsurance, a specialty reinsurer based in the Dubai International Financial Centre (DIFC) founded jointly by Arch and Gulf Investment Corporation (GIC) in 2008.
Arch has agreed in principle to acquire complete ownership of Gulf Re, subject to approval by the Dubai Financial Services Authority.
To further support Gulf Re’s business in advance of the January 1 renewal season, Arch is also entering into an uncapped 90% whole account quota share retrocession arrangement of Gulf Re’s net liabilities and a loss portfolio transfer of all of Gulf Re’s existing business, effective as of October 1, 2014. With these new agreements being implemented, Arch will cancel its existing stop loss agreement with Gulf Re.
Gulf Re will continue to benefit from the relationships of GIC, which will continue to have representation on the Board of Directors of Gulf Re as well as an ongoing economic interest in the results of Gulf Re.
With the new strategic initiatives in place, we believe that Gulf Re is strongly positioned for opportunities in the marketplace. Gulf Re benefits from the substantial experience of its management team based in Dubai, which is led by Christian Vogel.
Arch Reinsurance is a member of Arch Capital Group Ltd, a Bermuda-based company that provides insurance and reinsurance on a worldwide basis through its wholly owned subsidiaries.