Arch Capital secures approval for new Lloyd’s syndicate

by Gill Montia

Story link: Arch Capital secures approval for new Lloyd’s syndicate

Arch Capital Group has reported that it has received approval in principle from the Lloyd’s Franchise Board and the Financial Services Authority to establish a new managing agent and syndicate at Lloyd’s.

According to Arch, which writes insurance and reinsurance worldwide through its operations in Bermuda, the US, Europe and Canada, the move will enhance the company’s underwriting platform by providing access to Lloyd’s extensive distribution network and worldwide licenses.

The platform will be managed by Arch’s existing senior London team and the syndicate is expected to begin underwriting during the first half of 2009, subject to obtaining requisite approvals.

The company has also announced that it has recently established Arch Re Europe, a new division with offices in Dublin and Zurich.

The unit will complement the existing property and casualty treaty capabilities within the group and provide greater access to brokers in Europe, bearing in mind that the recent European Union Reinsurance Directive means Arch Re Europe can operate in all EU member states under a single regulatory framework.

Arch continues to expand rapidly having last year announced a $400 million partnership with Gulf Investment Corporation to form a new specialist reinsurer in Dubai.

Gulf Reinsurance Ltd operates in the market for high-value oil and gas, industrial, utility and transportation assets, mainly in Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE.