Bermuda-based Arch Reinsurance Ltd has completed the acquisition of the Dubai-based reinsurer that it launched as a joint venture in 2008.

Gulf Reinsurance Ltd (Gulf Re) is a specialty reinsurer based in the Dubai International Financial Centre, which Arch founded in conjunction with the Gulf Investment Corporation (GIC) seven years ago.

Last year, Arch and the GIC signed an agreement whereby Arch would acquire 100 per cent ownership of Gulf Re.

The agreement provides that, among other things, Arch will acquire all of Gulf Re Holdings Limited (Gulf Holdings), which is the parent of Gulf Re, through a reduction in the share capital of Gulf Holdings and Arch’s purchase of 50 per cent of Gulf Holdings from the GIC.

Gulf Re will continue to provide treaty reinsurance and specialty reinsurance lines with a focus on energy and utility assets primarily in the six member states of the Gulf Cooperation Council, including the Middle East and North Africa region.

GIC will continue to have representation on the Board of Directors of Gulf Re, as well as an ongoing 50 per cent economic interest in the results of Gulf Re.