Arch Reinsurance Ltd. said that its runoff liabilities from some discontinued operations will now be handled by Catalina General Insurance Ltd.
The reinsurance transaction specifically involves some discontinued U.S. specialty casualty exposures and other discontinued U.S. standard programs business. Why does Arch Re have the liabilities? It assumed them from its affiliate, Arch Insurance Company, through internal reinsurance transactions over time.
As part of the transaction, Catalina will handle all claims for the runoff businesses, some of which date back to the early years of Arch Insurance Company.
Nicholas Papadopoulo, chairman and CEO of Arch Worldwide Insurance Group and chief underwriting officer for Property & Casualty Operations, said that the arrangement stems from an ongoing review of its normal risk management practices and that the deal made sense.
“This transaction will both provide capital relief and allow management over time to support further growth of our insurance platform and underwriting activities,” Papadopoulo said in prepared remarks.
Source: Arch Re
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