Arch to Take Complete Ownership of Gulf Re After Losses in Dubai - Bloomberg

Arch to Take Complete Ownership of Gulf Re After Losses in Dubai - Bloomberg:



"Arch Capital Group Ltd. (ACGL) agreed to take complete ownership of Gulf Reinsurance Ltd. after losses on a venture that was backed by oil-producing nations.



Arch will also take on liabilities from insurance contracts written in prior periods, the Bermuda-based company said yesterday in a statement that didn’t disclose terms.



Gulf Re’s financial strength rating was placed under review, with negative implications, by A.M. Best in September. The ratings firm said yesterday that the Dubai-based business will probably post a loss of $20 million to $30 million this year, which would push capital and surplus below the $200 million figure from when the reinsurer was founded."



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