Gallagher Re raises $93m for new Arch MI Bellemeade Re ILS deal

Global reinsurance broker  Gallagher Re partnered with  Arch Mortgage Insurance Company (Arch MI) in raising and placing traditional reinsurance capacity for Bellemeade Re 2021-2, a special purpose reinsurer.

Gallagher Re obtained $93.2 million of indemnity reinsurance for Arch MI in the second Bellemeade transaction of 2021, on a pool representing approximately $36 billion of mortgages. The mortgages were linked to 123,224 residential mortgage loans issued by Arch MI and affiliates, primarily from 1 December 2020 through to 31 March 2021.

Overall, Arch MI obtained over $616 million of indemnity reinsurance. The capacity was secured from seven different reinsurers, the largest number of participants on such a transaction to date.

This follows the first Bellemeade transaction of 2021, where Gallagher Re raised $63.8 million through five reinsurers, and brings the total of traditional reinsurance capacity secured this year to date to $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 programme, bringing a total of $157 million of traditional reinsurance capacity to these transactions in less than four months,” said Freddie Scarratt, account executive at Gallagher Re, who managed and placed the reinsurance capacity of the transaction.

He added: “The fact this already exceeds the $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 programme.”

Danny Mamo, senior vice president of structured capital and reinsurance at Arch MI, commented: “Arch MI is pleased with the increased traditional reinsurance capacity provided on this transaction. This marks the 6th Bellemeade Re transaction featuring a simultaneous side-by-side traditional reinsurance execution, affording reinsurers another consistent opportunity for sharing in Arch MI’s risk.”

Steven Rance, managing partner of mortgage indemnity reinsurance at Gallagher Re, added: “Over the course of the last 18 months, reinsurers have repeatedly demonstrated their willingness to collaborate on new transactions when working in partnership with experienced and specialist brokers and clients.”

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