HAMILTON, Bermuda--(BUSINESS WIRE)--Arch Reinsurance Ltd. (Arch Re) announced today that it has entered into a reinsurance transaction with Catalina General Insurance Ltd. (Catalina) to reinsure run-off liabilities associated with certain discontinued US Specialty Casualty exposures and various discontinued US Standard Programs businesses. Arch Re assumed the liabilities from its affiliate, Arch Insurance Company, over time through internal reinsurance transactions.
Nicolas Papadopoulo, Chairman & CEO of Arch Worldwide Insurance Group and Chief Underwriting Officer for Property & Casualty Operations, stated: “As part of our normal risk management practices, Arch continuously reviews potential solutions available to protect us against the downside risk from our run-off portfolios. Going forward, this transaction will both provide capital relief and allow management more time to support further growth of our insurance platform and underwriting activities.”
As part of the transaction, Catalina will handle all claims for the run-off businesses, some of which date back to the early years of Arch Insurance Company.
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.