Gallagher Re has partnered with Arch Mortgage Insurance Company (Arch MI) in raising and placing traditional reinsurance capacity for the Bellemeade Re 2020-4 Ltd program.
Gallagher Re obtained approximately US$93 million (around AU$123.33 million) of indemnity reinsurance for Arch MI, on a pool representing approximately US$36 billion of mortgages linked to 123,224 residential mortgage loans issued by Arch MI and affiliates.
The capacity was secured from seven different reinsurers, which Gallagher said was the largest number of participants on such a transaction to date.
This follows Gallagher’s first Bellemeade transaction of 2021, where the broker raised US$63,860,000 through five reinsurers, and brings the total of traditional reinsurance capacity secured this year to date to US$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 US$157 million of traditional reinsurance capacity to these transactions in less than four months,” said Freddie Scarratt, account executive at Gallagher Re. “The fact this already exceeds the US$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.”
“Arch MI is pleased with the increased traditional reinsurance capacity provided on this transaction,” said Danny Mamo, senior vice president of structured capital and reinsurance at Arch MWI. “This marks the sixth Bellemeade Re transaction featuring a simultaneous side-by-side traditional reinsurance execution, affording reinsurers another consistent opportunity for sharing in Arch MI’s risk.”