Arch Capital Group Ltd. (“ACGL”), together with its co-sponsor Kelso & Co. (“Kelso”), today launched Premia Reinsurance Ltd., a newly-formed multi-line Bermuda reinsurance company (“Premia Re”). Premia Re is a Class 4 insurer licensed by the Bermuda Monetary Authority. Premia Re’s strategy is to reinsure or acquire companies or reserve portfolios in the non-life property and casualty insurance and reinsurance run-off market.

The initial capitalization of Premia Re’s parent, Premia Holdings Ltd. (“Premia”), consists of $400.0 million in common equity and $110.0 million in unsecured senior debt. Arch Reinsurance Ltd. (“ARL”) and certain Arch co-investors, including senior management of Premia, invested $100.0 million and acquired approximately 25% of Premia’s common equity as well as warrants to purchase additional common equity. Affiliates of Kelso, along with co-investors of Kelso, invested $300.0 million and acquired the balance of Premia’s common equity as well as warrants to purchase additional common equity. ARL will provide a 25% whole account quota share reinsurance treaty on business written by Premia Re, and another subsidiary of ACGL will provide certain administrative and support services to Premia, in each case for a specified period of time.

William O’Farrell and Scott Maries were named Chief Executive Officer and Chief Financial Officer, respectively, of Premia. In August 2016, Mr. O’Farrell joined Arch Capital Group (U.S.) Inc. to spearhead the formation of Premia Re, and prior to that was the Chief Reinsurance Officer at Chubb Ltd. (formerly ACE Limited). Nicolas Papadopoulo, CEO of ACGL’s Reinsurance Group, and Maamoun Rajeh, CEO of ARL, were appointed to the seven person board of directors of Premia.

About Arch Capital Group Ltd. (NASDAQ:ACGL)

Arch Capital Group Ltd. writes insurance and reinsurance on worldwide basis. The Company operates in five segments: insurance, reinsurance, mortgage, other and corporate. The Company’s insurance, reinsurance and mortgage segments are underwriting segments. The insurance segment’s product lines include construction and national accounts; excess and surplus casualty; lenders products; professional lines; programs; property, energy, marine and aviation; travel, accident and health, and other, which includes alternative market risks and excess workers’ compensation. The reinsurance segment’s product lines include casualty; marine and aviation; other specialty; property catastrophe; property excluding property catastrophe, and other, which includes life reinsurance and casualty clash businesses. The mortgage segment includes the results of Arch Mortgage Insurance Company (Arch MI U.S.) and Arch Mortgage Insurance Designated Activity Company (Arch MI Europe).

Arch Capital Group Ltd. (NASDAQ:ACGL) Recent Trading Information

Arch Capital Group Ltd. (NASDAQ:ACGL) closed its last trading session down -1.25 at 85.22 with 622,056 shares trading hands.