Reinsurance broker Gallagher Re has partnered with Arch Mortgage Insurance Company (Arch MI) in raising and placing traditional reinsurance capacity for special purpose reinsurer Bellemeade Re 2021-2.
In this second Bellemeade transaction of 2021, Gallagher Re obtained $93.2 million of indemnity reinsurance for Arch MI, on a pool representing approximately $36 billion of mortgages linked to 123,224 residential mortgage loans issued by Arch MI and affiliates across H1 2021
The capacity was secured from seven different reinsurers, the largest number of participants on such a transaction to date.
This follows the first Bellemeade transaction of 2021, where Gallagher Re raised $63.7 million through five reinsurers, and brings the total of traditional reinsurance capacity secured this year to date to $157 million.
“We are delighted to have once again represented Arch MI and succeeded in raising a record amount of direct reinsurance capacity for its Bellemeade program, bringing a total of $157 million of traditional reinsurance capacity to these transactions in less than four months,” said Freddie Scarratt, Account Executive at Gallagher Re, who managed and placed the reinsurance capacity of the transaction.
“The fact this already exceeds the $140 million total capacity raised through four deals last year, and with this latest transaction also involving the largest number of reinsurers to date, underlines this as a growth program.
“Despite the testing environment and turbulence of 2020, the success of the collaborative partnership we have built with Arch MI during this time has enabled us to establish these transactions as a consistent offering, with more counterparties joining the program each time, a more even spread across tranches and core markets returning to participate across each of the transactions.”