Gallagher Re partnered with Arch Mortgage Insurance Company (Arch MI) in raising and placing traditional reinsurance capacity for Bellemeade Re 2021-2, a special purpose reinsurer.
Gallagher Re obtained $93,210,000 of indemnity reinsurance for Arch MI in the second Bellemeade transaction of 2021, on a pool representing approximately $36 billion of mortgages. The mortgages were linked to 123,224 residential mortgage loans issued by Arch MI and affiliates, primarily from 1 December 2020 through to 31 March 2021.
The capacity was secured from seven different reinsurers, the largest number of participants on such a transaction to date.
Danny Mamo, senior vice president of structured capital and reinsurance at Arch MI, said: “This marks the sixth Bellemeade Re transaction featuring a simultaneous side-by-side traditional reinsurance execution, affording reinsurers another consistent opportunity for sharing in Arch MI’s risk.”
Gallagher Re raised $63,860,000 in the first Bellemeade transaction of 2021, through five reinsurers, meaning it has secured $157 million of reinsurance capacity in total, year to date.
Freddie Scarratt, account executive at Gallagher Re, who managed and placed the reinsurance capacity of the transaction, said: “The fact this already exceeds the $140 million total capacity raised through four deals last year, and with this latest transaction also involving the largest number of reinsurers to date, underlines this as a growth programme.”
He added: “Despite the testing environment and turbulence of 2020, the success of the collaborative partnership we have built with Arch MI during this time has enabled us to establish these transactions as a consistent offering, with more counterparties joining the programme each time, a more even spread across tranches and core markets returning to participate across each of the transactions.”
Steven Rance, managing partner of mortgage indemnity reinsurance at Gallagher Re, added: “Over the course of the last 18 months, reinsurers have repeatedly demonstrated their willingness to collaborate on new transactions when working in partnership with experienced and specialist brokers and clients.”