Bermuda-based Arch Reinsurance Ltd., a member of Arch Capital Group Ltd., has completed the acquisition of Gulf Reinsurance Ltd.
Gulf Re, a specialty reinsurer based in the Dubai International Financial Centre, was founded jointly by Arch and the Gulf Investment Corporation (GIC) in 2008. In 2014, Arch and the GIC signed an agreement whereby Arch would acquire 100 percent ownership of Gulf Re. The agreement provides that, among other things, Arch would acquire all of Gulf Re Holdings Limited (Gulf Holdings), which is the parent of Gulf Re, through a reduction in the share capital of Gulf Holdings and Arch’s purchase of 50 percent of Gulf Holdings from the GIC.
With the closing of the acquisition, Arch said that Gulf Re is strongly positioned to take advantage of opportunities in the marketplace. Arch Re also pointed to the benefits of the placement of a 90 percent whole account quota share retrocession arrangement of Gulf Re’s net liabilities and a loss portfolio transfer of all of its existing business with Arch, effective as of October 1, 2014.
Gulf Re provides treaty reinsurance and specialty reinsurance lines with a focus on energy and utility assets, primarily in the six member states of the Gulf Cooperation Council, including the MENA region.
GIC will continue to have representation on the board of directors of Gulf Re, as well as an ongoing 50 percent economic interest in the results of Gulf Re.
Source: Arch Reinsurance Ltd.
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