Bermuda-based Arch Capital Group has agreed to buy Ariel Re’s Credit & Surety reinsurance operations based in Zurich.

The news comes on the heels of Goldman Sachs agreeing to buy Ariel’s Bermuda-based reinsurance operations.

On the closing of the transaction, Ariel Re’s team in the Swiss city will transfer to the Zurich office of Arch Reinsurance Europe Underwriting Ltd (Arch Re Europe) and will be fully operational with immediate effect, Arch said on Friday.

Ariel Re’s existing Trade Credit & Surety portfolio will be reinsured by Arch Re Bermuda. Both Arch Re Europe and Arch Re Bermuda are rated A+ by Standard & Poor’s.

Marc Grandisson, chairman and CEO of Arch Worldwide Reinsurance Group, said: “Adding this highly experienced and successful team to our group furthers our strategy to become a lead capacity and service provider in speciality lines where we see a proven record and opportunities for growth.”

Thomas Rothenberger, currently head of Credit and Surety at Ariel Re, who will continue to lead the team upon its move to Arch, said: “We are excited to join a reinsurance company of this calibre and believe that Arch’s outstanding capital position, deep experience and knowledge of this business line and risk culture provides us with an excellent opportunity to guarantee continuity to our clients and further grow our business.”

The closing of the transaction is subject to regulatory approvals and other customary closing conditions.