Arch Reinsurance said it will acquire global credit and surety renewal rights from Aspen Re, now that the latter company is exiting the line.

Both parties have also agreed to start additional discussions about the potential novation of the existing book in the coming months.

Arch Re is a wholly owned subsidiary of Arch Capital Group Ltd., and Aspen Re is the reinsurance business segment of Aspen Insurance Holdings Ltd.

Arch said it has invited all of Aspen Re’s Zurich-based credit and surety employee to join its existing credit and surety team based in Zurich.

Arch said it has invited all of Aspen Re’s Zurich-based credit and surety employees to join Arch Re’s existing credit and surety team based in Zurich.

Michael Hammer, president and CEO of Arch Re Europe, said the deal is a great opportunity for the company to strengthen and diversify its credit and surety operation.

Christian Dunleavy, Chief Underwriting Officer of Aspen Re said in prepared remarks that the agreement will help ensure the business it is shedding will continue uninterrupted.

“We are very pleased to have reached agreement with Arch Re for the renewal of our reinsurance credit and surety business as we seek to create a more simple and focused reinsurance business at Aspen Re,” Dunleavy said. “This agreement with Arch Re facilitates continuity for both our staff and cedents with a strong counterparty, which was a critical consideration. We would like to wish our cedents and the credit and surety team well for their future with Arch Re.”

Source: Arch Re, Aspen Re