Arch Insurance Group’s Accident & Health Division Forms Partnership with Tethys - A Leader in Managed Care Administration

NEW YORK--(BUSINESS WIRE)--Arch Insurance Group, a division of Arch Capital Group Ltd., announced today that it has formed a partnership with Tethys Health Ventures to provide 100% of its medical stop loss administration. Premium collections, claims adjudication and large case management are the primary functions that Tethys will perform. Tethys will leverage its expertise in managed care administration, risk management, network management, government program eligibility, and medical care management for Arch’s A&H clients and brokers.

“This partnership gives Arch a significant competitive advantage in the marketplace”

Arch reinvigorated its A&H division in May 2010. The Division is a specialty writer of accident, disability and medical products – offering products not typically available through companies specializing in employee benefits.

“This partnership gives Arch a significant competitive advantage in the marketplace,” said Richard Richiski- EVP of Arch’s A&H Division. “Working with an organization such as Tethys, given their expertise, means that our customers and brokers will gain access to proven medical case management support, government program advocacy and strong network relationships to effectively control the costs associated with catastrophic medical events, while optimizing outcomes for our insureds,” he said.

Arch’s arrangement with Tethys means that Tethys will provide specialized risk management services for complex medical conditions such as organ and bone marrow transplantation. In addition, they will provide risk mitigation services through disability advocacy programs for Arch clients and brokers. Tethys holds arrangements with many of the country’s most renowned medical providers to form an effective network of partner “centers of excellence”.

“Tethys has developed unique capabilities that assist our clients in mitigating and managing the costs associated with the most complex and costly medical conditions,” stated Tim Koch- CEO and President Tethys Health Ventures. “Our stated goal is to reduce risk and increase care. A team of dedicated case managers focus their efforts on superior service and developing innovative solutions throughout the spectrum of care. In partnership with Arch Insurance Group, we will drive positive outcomes and generate substantial payer savings for policyholders,” he said.

The distribution of Arch’s offering will be through select specialized brokers.

Arch Insurance Group Inc. is a member of Arch Capital Group Ltd., a Bermuda-based company that provides insurance and reinsurance on a worldwide basis through its wholly owned subsidiaries. For more information, visit www.archinsurance.com.

Cautionary Note Regarding Forward-Looking Statements

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward−looking statements. This release or any other written or oral statements made by or on behalf of Arch Capital Group Ltd. and its subsidiaries may include forward−looking statements, which reflect our current views with respect to future events and financial performance. All statements other than statements of historical fact included in or incorporated by reference in this release are forward−looking statements.

Forward−looking statements can generally be identified by the use of forward−looking terminology such as "may," "will," "expect," "intend," "estimate," "anticipate," "believe" or "continue" or their negative or variations or similar terminology. Forward−looking statements involve our current assessment of risks and uncertainties. Actual events and results may differ materially from those expressed or implied in these statements. A non-exclusive list of the important factors that could cause actual results to differ materially from those in such forward-looking statements includes the following: adverse general economic and market conditions; increased competition; pricing and policy term trends; fluctuations in the actions of rating agencies and our ability to maintain and improve our ratings; investment performance; the loss of key personnel; the adequacy of our loss reserves, severity and/or frequency of losses, greater than expected loss ratios and adverse development on claim and/or claim expense liabilities; greater frequency or severity of unpredictable natural and man-made catastrophic events; the impact of acts of terrorism and acts of war; changes in regulations and/or tax laws in the United States or elsewhere; our ability to successfully integrate, establish and maintain operating procedures as well as integrate the businesses we have acquired or may acquire into the existing operations; changes in accounting principles or policies; material differences between actual and expected assessments for guaranty funds and mandatory pooling arrangements; availability and cost to us of reinsurance to manage our gross and net exposures; the failure of others to meet their obligations to us; and other factors identified in our filings with the U.S. Securities and Exchange Commission.

The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with other cautionary statements that are included herein or elsewhere. All subsequent written and oral forward−looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these cautionary statements. We undertake no obligation to publicly update or revise any forward−looking statement, whether as a result of new information, future events or otherwise.