|By TAP Staff| Arch Reinsurance Ltd. (Arch) announced completion of its acquisition of Gulf Reinsurance Ltd. (Gulf Re), a specialty reinsurer based in the Dubai International Financial Centre.
Gulf Re was founded jointly by Arch and the Gulf Investment Corporation (GIC) in 2008. In 2014, Arch and the GIC signed an agreement whereby Arch would acquire 100% ownership of Gulf Re. The agreement provides that, among other things, Arch will acquire all of Gulf Re Holdings Limited (Gulf Holdings), which is the parent of Gulf Re, through a reduction in the share capital of Gulf Holdings and Arch’s purchase of 50% of Gulf Holdings from the GIC.
With the closing of the acquisition and the placement of a 90% whole account quota share retrocession arrangement of Gulf Re’s net liabilities and a loss portfolio transfer of all of its existing business with Arch effective as of October 1, 2014, Gulf Re is strongly positioned for opportunities in the marketplace. Gulf Re will continue to provide treaty reinsurance and specialty reinsurance lines with a focus on energy and utility assets primarily in the six member states of the Gulf Cooperation Council, including the MENA Region.
GIC will continue to have representation on the Board of Directors of Gulf Re, as well as an ongoing 50% economic interest in the results of Gulf Re.