The global reinsurance arm of brokerage giant Gallagher has partnered with Arch Mortgage Insurance Company (Arch MI) to secure a significant capacity agreement for Bellemeade Re 2020-4 Ltd.
In the fourth transaction of its kind in 2020, Gallagher Re secured $15,620,000 in indemnity insurance for Arch MI, out of a pool representing approximately $33.3 billion in mortgages linked to loans originated by Arch MI and its affiliates.
The move follows three previous transactions in 2020 which saw Gallagher Re and Arch MI develop a growing partnership around its specialist mortgage clearing team.
“We are extremely pleased to have once again represented Arch MI in increasing the direct reinsurance capacity required for its Bellemeade program, bringing a total of over $140 million of traditional reinsurance capacity to these transactions at six months,” said account executive Freddie Scarratt. at Gallagher Re, which managed and placed the reinsurance capacity of the transaction.
“In what has undoubtedly been a testing environment, collaborative partnership has never been more important. Reinsurers continue to demonstrate that they are ready to support new mortgage indemnification transactions when they have experience and expertise in risk transfer in this highly specialized area.
Meanwhile, Danny Mamo, senior vice president of structured capital and reinsurance at Arch MI, explained that the firm’s goal was to explore the reinsurance market’s appetite for side-by-side participation in the Bellmeade Re program.
“We knew that simultaneous execution would be new to the market and despite the challenges posed by the COVID-19 pandemic, we were able to attract consistent participation from several reinsurers on all Bellemeade Re transactions carried out in 2020”, a- he declared. “We have found another innovative structure to extend our relationship with the reinsurance market.”