Gallagher Re Helps Arch Increase Diversification Of Mortgage Reinsurance

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Securing its latest Bellemeade Re deal in Mortgage-backed Securities (ILS), sponsor Arch Capital Group also benefited from a $ 93.21 million traditional mortgage reinsurance deal posted alongside the capital markets deal backed by broker Gallagher Re. …

Gallagher logoGallagher Re has been hosting traditional mortgage reinsurance alongside Arch Bellemeade Re’s ILS mortgage issues for some time now.

Global reinsurance broker Gallagher Re, part of the broader Gallagher group, successfully brokered $ 140 million in Arch Capital’s traditional mortgage reinsurance during 2020.

In 2021, Gallagher Re already brokered $ 63.86 million in reinsurance, along with Arch’s first mortgage loan this year, $ 580 million. Bellemeade Re 2021-1 Ltd. deal.

Now, along with recently completed $ 523 million Arch projects Bellemeade Re 2021-2 Ltd.Gallagher Re helped the company raise an additional $ 93.21 million in traditional reinsurance coverage.

Increase in total in 2021 to $ 157 million, already ahead of traditional mortgage reinsurance in 2020, along with Bellemeade Re’s mortgage-linked bond program.

Importantly, Gallagher Re said this latest offering provided Arch with the broadest diversification of reinsurance counterparties to date, with seven reinsurers providing $ 93.21 million in mortgage reinsurance.

This is important because Arch also announced that diversifying its investor panel for its latest deal with Bellemeade Re was the most ambitious it has achieved so far.

Access to as many markets as possible, whether investors or reinsurers, is important to Arch as it uses reinsurance capital both for general protection against mortgage losses and as a source of growth opportunities to help it expand Arch’s mortgage insurance book. … …

“We are delighted to have once again represented Arch MI and were able to raise a record amount of direct reinsurance for our Bellemeade program, resulting in a total of $ 157 million in conventional reinsurance in these transactions in less than four months,” said Freddie Scarratt, Managing Director Customer Service at Gallagher Re, which managed and hosted the transaction’s reinsurance capacity, explained. “The fact that this already exceeds the total capacity of $ 140 million from four deals last year, and this latest deal also involves the largest number of reinsurers to date, underlines this as a growth agenda.

“Despite the testing conditions and turbulence of 2020, the success of our partnership with Arch MI during this time has allowed us to make these transactions a single offering, with more counterparties joining the program each time, ensuring a more even distribution. through tranches and major markets, returning to participate in each of the transactions. “

Danny Mamo, Senior Vice President of Structured Capital and Reinsurance at Arch MI, added: “Arch MI is pleased with the increase in traditional reinsurance capacity on this transaction. This marks the sixth Bellemeade Re deal to concurrently carry out traditional side-by-side reinsurance, providing reinsurers with another ongoing opportunity to share the Arch MI risk. ”

Stephen Rance, Managing Partner of Mortgage Reinsurance at Gallagher Re, also commented: “Over the past 18 months, reinsurers have repeatedly demonstrated their willingness to collaborate on new deals, working in partnership with experienced and specialized brokers and clients. It is fantastic to work with the growing number of reinsurers on these large scale deals for Arch MI to provide Bellemeade with diversified partner capital. Each successful capacity expansion reinforces the importance of traditional reinsurance as a source of capital for the mortgage insurance business. ”

You can read all about the new Bellemeade Re 2021-2 Ltd. Mortgage-linked securities (ILS) transaction and every ILS mortgage transaction ever entered into in Artemis deals catalog

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