Arch Reinsurance enters $175 million letter-of-credit facility

By Wendy Van Sickle

Columbus, Ohio, Oct. 2 – Arch Capital Group Ltd. wholly owned subsidiary Arch Reinsurance Ltd. entered into a $175 million letter-of-credit facility agreement on Sept. 27 with Lloyds Bank Corporate Markets plc as letter-of-credit issuer, according to an 8-K filing with the Securities and Exchange Commission.

The commitments will expire on Sept. 27, 2025.

Arch Reinsurance is required to maintain a financial strength rating of at least B++ by A.M. Best Co., Inc. or BBB+ from Standard & Poor’s Financial Services LLC. In addition, Arch Reinsurance may not permit Arch Capital to exceed a maximum consolidated leverage ratio, and Arch Reinsurance is required to comply with a minimum consolidated tangible net worth covenant.

Arch Capital is an insurance, reinsurance and mortgage insurance provider based in Hamilton, Bermuda.

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