Gallagher Re secures mammoth indemnity reinsurance deal

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Gallagher Re has partnered with Arch Mortgage Insurance Company (Arch MI) to build and place traditional reinsurance capacity for the Bellemeade Re 2020-4 Ltd program.

Gallagher Re has approximately $ 93 million loss reinsurance on Arch MI covering a pool of approximately $ 36 billion in mortgage-related 123,224 residential real estate mortgage loans from Arch MI and its affiliates.

Continue reading: Gallagher Re secures a large capacity contract

The capacity was secured by seven different reinsurers, who, according to Gallagher, were the largest number of participants in such a transaction to date.

This follows Gallagher’s first Bellemeade transaction in 2021, in which the broker raised $ 63,860,000 through five reinsurers, increasing the total capacity of traditional reinsurance capacity to $ 157 million that year.

“We are delighted to have represented Arch MI again and to have achieved a record level of direct reinsurance capacity for its Bellemeade program, bringing a total of $ 157 million in traditional reinsurance capacity to these transactions in less than four months “Said Freddie Scarratt, Account Executive at Gallagher Re. “The fact that this already exceeds the total capacity of $ 140 million raised through four deals last year, and with this latest transaction, the largest number of reinsurers to date, underscores this as a growth program.”

“Arch MI is pleased with the expanded traditional reinsurance capabilities that this transaction will provide,” said Danny Mamo, senior vice president of structured capital and reinsurance at Arch MWI. “This is the sixth Bellemeade Re-Transaction with a concurrent parallel execution of traditional reinsurance, giving reinsurers another consistent way to share the risk of Arch MI.”