Arch Buys Ariel’s Credit & Surety Business
Bermuda’s Arch Capital Group Ltd. today [Mar.3] announced that it will acquire Ariel Re’s Credit & Surety reinsurance operations based in Zurich.
Upon the closing of the transaction, Ariel Re’s Zurich based team will transfer to the Zurich office of Arch Reinsurance Europe Underwriting Limited and will be fully operational with immediate effect, ensuring a seamless transition for service to both clients and intermediaries.
The move swiftly follows Ariel Re’s decision to sell its main Bermuda-based reinsurance business to investment bank Goldman Sachs. Ariel Re was created in Bermuda by insurance entrepreneur Don Kramer in late 2005 in the wake of hurricanes Katrina, Rita and Wilma.
Ariel Re’s existing Trade Credit & Surety portfolio will be reinsured by Arch Reinsurance Ltd., based in Bermuda. Both Arch Re Europe and Arch Re Bermuda are rated “A+” by Standard & Poor’s.
Marc Grandisson, chairman and CEO of Arch Worldwide Reinsurance Group, stated: “Adding this highly experienced and successful team to our group furthers our strategy to become a lead capacity and service provider in speciality lines where we see a proven record and opportunities for growth.”
Thomas Rothenberger, currently Head of Credit and Surety at Ariel Re, who will continue to lead the team upon its move to Arch, stated: “We are excited to join a reinsurance company of this caliber and believe that Arch’s outstanding capital position, deep experience and knowledge of this business line and risk culture provides us with an excellent opportunity to guarantee continuity to our clients and further grow our business.”
The closing of the transaction is subject to regulatory approvals and other customary closing conditions.
Arch Capital Group Ltd., a Bermuda-based company with approximately $5.03 billion in capital at December 31, 2011, provides insurance and reinsurance on a worldwide basis through its wholly owned subsidiaries.
