Filed Under:Markets, Reinsurance

Arch to Acquire Ariel Re’s Credit and Surety Operations

Update: 4:16 p.m. EST

NU Online News Service, March 5, 12:00 p.m. EST

Hamilton, Bermuda-based insurer Arch Capital Group Ltd. says it will acquire Ariel Re’s Credit & Surety reinsurance operations based in Zurich, Switzerland.

Upon the closing of the transaction, Ariel Re’s Zurich-based team will transfer to the Zurich office of Arch Reinsurance Europe Underwriting Ltd (Arch Re Europe).

Arch says the teams will be “fully operational with immediate effect” to ensure “a seamless transition for service to both clients and intermediaries.”

The company went on to say that Ariel Re’s existing trade credit and surety portfolio will be reinsured by Arch Reinsurance Ltd. (Arch Re Bermuda), based in Bermuda.

Both Arch Re Europe and Arch Re Bermuda are rated "A-plus" by Standard & Poor’s.

The closing of the transaction is subject to regulatory approvals and other customary closing conditions.

Terms of the transaction were not released.

Last week, Ariel Re’s insurance and reinsurance operations were acquired by Goldman Sachs. The group will operate as part of Goldman Sachs Reinsurance Group.

Arch Capital, with more than $5 billion in capital as of the end of 2011, provides insurance and reinsurance on a worldwide basis through its wholly-owned subsidiaries.

Late today, Standard & Poor's says its rating of Ariel Reinsurance Co. Ltd. was not affected by the sale. The "A-minus" rating was placed on credit watch negative on March 1 with the knowledge that a transaction of this sort was already being comtemplated, the rating service says.

This story was updated at 4:16 p.m. EST with S&P comments. 

Featured Video

Most Recent Videos

Video Library ››

Top Story

Future is bright for renewable energy market

A buyers’ market for coverage and strong growth in renewable energy, particularly in solar and wind power, provides opportunity for agents and brokers looking to grow their book.

Top Story

7 steps for keeping business after your contact leaves

No matter how well your producers get along with their customers, there are no guarantees that the customers will renew each year.

More Resources

Comments

eNewsletter Sign Up

PropertyCasualty360 Daily eNews

Get P&C insurance news to stay ahead of the competition in one concise format - FREE. Sign Up Now!

Mobile Phone

Advertisement. Closing in 15 seconds.