Arch Reinsurance, a subsidiary of Arch Capital Group Ltd., is acquiring Aspen Reinsurance’s global credit and surety reinsurance business after Aspen Re decided to exit the line.
In addition to the renewal rights on the portfolio, Arch and Aspen have agreed to initiate additional discussions about the potential novation of the existing book in the coming months.
Financial details of the deal were not disclosed.
Arch said it has extended employment offers to all of Aspen Re’s Zurich-based credit and surety employees to join Arch Re’s existing credit and surety team based in Zurich.
“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,” said Michael Hammer, president and CEO of Arch Re Europe. “We appreciate working with Aspen to bring the two teams together and look forward to enhancing our overall service offering to our clients.”
“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,” said Christian Dunleavy, chief underwriting officer of Aspen Re, the reinsurance business segment of Aspen Insurance Holdings Ltd.
“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,” he added.
Richard Lange, head of Credit and Surety at Arch Re Europe, said: “We welcome the opportunity to add to the Arch team and provide top level service along with a large balance sheet to Aspen Re’s existing clients and brokers. We hope to earn these clients’ trust and to begin and sustain a long-term relationship with them.”
Source: Arch Reinsurance
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