Arch Re, one of the Island's new wave of reinsurers, has announced it has reached its targeted capital of $1 billion.

The Arch Capital Group, which set up Arch Re, announced it had $763 million in private equity investment led by Warburg Pincus and Hellman & Friedman, which takes the company over the $1 billion mark. Paul Ingrey, the new Chairman and CEO of Arch Re, said: "The benefits of Arch's existing platform have become readily apparent. We've already been reviewing submissions, quoting terms and binding policies. "With more than $1 billion of fresh capital, we are a significant source of capacity for the upcoming January renewal season."

Mr. Ingrey is the former chairman and chief executive officer of F&G Re Inc and was "lured" out of retirement to head up Arch Re, according to Business Insurance. The US industry publication described Arch Re as: "One of the most recently re-capitalised Bermuda-based companies to start writing insurance for January 1 renewals in the rapidly tightening marketplace."

Mr. Ingrey, 62, retired at the end of 1996 after 36 years in insurance, but Bob Clements, the chairman of Arch Capital asked him to come out of retirement to head up the new venture.

On October 24, Arch Capital announced the launch of Arch Re to meet current and future demand in the global insurance marketplace thrown up by the attacks on the United States on September 11. Peter Appel, President and CEO of Arch Capital, said: "The two most important components of our new initiative - the management team and a $1 billion capital base - are now in place."

"Our team, led by Paul Ingrey," he added, "is already in Bermuda helping to meet the increased demand for insurance and reinsurance products. Arch is now a key participant in the global insurance marketplace."

Warburg Pincus and Hellman & Friedman led the financing, investing $405 million and $225 million, respectively. Other institutional investors included funds affiliated with GE Capital, GE Asset Management, Trident II, LP, and Farallon Capital Management. Included in the financing, management co-invested a combined $13.15 million.

The company also announced that Kewsong Lee, a Managing Director at Warburg Pincus, and Jack Bunce, a Managing Director at Hellman & Friedman, will join the board of directors.

"Arch is open for business," said Warburg Pincus' Kewsong Lee. "Instead of being distracted by raising money and building infrastructure, the Arch management team can focus on underwriting insurance to grow this company." Jack Bunce of Hellman & Friedman, said: "We are confident the insurance market will value Arch's key assets - knowledgeable underwriters and lots of clean capital."

The company's reinsurance team, also announced last month, includes industry veterans Ingrey, formerly Chairman of F&G Re; Dwight Evans, formerly Executive Vice President, North American Property for St. Paul Re and F&G Re; and Marc Grandisson, Vice President and Actuary of the reinsurance division of Berkshire Hathaway. Together they represent more than 70 years of combined management experience in the reinsurance business.