The reinsurance arm of Arch Capital Group, Arch Reinsurance (Arch Re), has entered into a renewal rights agreement with Aspen Reinsurance (Aspen Re) on its global credit and surety reinsurance business.
The agreement follows Aspen Re’s decision to exit the line of business, and, as well as the renewal rights of the portfolio, both Arch Re and Aspen Re have agreed to initiate further discussions about the potential novation of the existing book in the months ahead.
In light of the agreement, the parties have announced that Arch Re has extended employment offers to all of Aspen Re’s Zurich domiciled credit and surety employees to join Arch Re’s 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.
“We appreciate working with Aspen to bring the two teams together and look forward to enhancing our overall service offering to our clients,” said Michael Hammer, President and Chief Executive Officer (CEO) of Arch Re Europe.
Christian Dunleavy, Chief Underwriting Officer (CUO) at Aspen Re, which is the reinsurance arm of Bermudian insurer and reinsurer Aspen Insurance Holdings Limited, said: “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.
“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.”
As the reinsurer continues to simplify its reinsurance business, Aspen Re recently confirmed to Reinsurance News that it will be closing its reinsurance offices in Miami, Dubai and Lloyd’s China.
“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,” said Richard Lange, Head of Credit and Surety at Arch Re Europe.
