Capital Re And ACE Form Reinsurance Joint Venture
ACE Limited and Capital Re Corporation today announced the formation of a joint venture, A.C.E. Capital Re Limited. A.C.E. Capital Re Limited, is a successor company to Capital Global Underwriters Limited. The new firm, a Bermuda-domiciled reinsurance company, will write traditional and custom-designed programs covering financial guaranty, mortgage guaranty and a broad range of financial risks.
According to Capital Re, each of the partner companies-ACE and Capital Re-have a 50 percent financial interest in the new venture.
Operations will be underwritten and managed in Bermuda by a joint venture managing agency, A.C.E. Capital Re Managers Ltd.
Brian Duperreault, chairman, president and chief executive officer of ACE Limited says, "ACE welcomes the opportunity to partner with Capital Re. This joint venture represents a collaboration between two companies with specific strengths in financial risks. Capital Re's track record in providing innovative financial guaranty products complements ACE's experience with highly sophisticated, custom-designed programs. This joint venture will enable both of us to meet an even broader range of customer needs."
Michael E. Satz, chairman, president and chief executive officer of Capital Re Corporation says, "The joint venture with ACE provides Capital Re with the capability to utilize a non-consolidated vehicle to optimize its core businesses and facilitate Capital Re's further expansion into financial lines. This will be accomplished in partnership with a highly regarded company whose underwriting expertise and technical skills are complementary to those of Capital Re."
Capital Re Corporation is a specialty reinsurance company. Its subsidiaries engage in financial guaranty, mortgage guaranty, title, financial, credit and specialty reinsurance, and specialty insurance through participation in Lloyd's.
The ACE group of companies provides insurance and reinsurance for a diverse group of international clients. Operating subsidiaries are based in Bermuda, the United States, the United Kingdom (Lloyd's), and the Republic of Ireland.