Gulf Re granted license by Dubai Financial Services Authority
New specialist insurer to start operations within days
The Dubai Financial Services Authority (DFSA) licensed Gulf Reinsurance Ltd. (Gulf Re) as an authorised firm on May 28, 2008, to be established in the Dubai International Financial Centre (DIFC.)
Gulf Re is a new specialist reinsurer equally-owned by Gulf Investment Corporation (GIC) and Arch Capital Group Ltd. (Arch Capital). GIC and Arch Capital have subscribed to a total of US$400 million of capital. The initial paid-up capital of Gulf Re is US$200 million, with an additional US$200 million to be funded depending on the business needs of the company. The joint venture was announced on March 17, 2008, at the World Insurance Forum held at the DIFC.
“We are delighted to secure the license in such a short period. The DFSA licensing process was thorough and demanding, but highly efficient. The DFSA worked closely with Gulf Re management to achieve this milestone in about two months,” said Gail Norstrom, Gulf Re Chief Executive Officer. “We are grateful to Clyde & Co., our professional advisers, for their valuable assistance in this application. We look forward to writing our first reinsurance business in a matter of days.”
Gulf Re will initially target high-value oil and gas, industrial, utility and transportation assets primarily in the six member states of the Gulf Cooperation Council. The company will write a broad range of property and casualty lines of reinsurance, including aviation, energy, commercial transportation, marine, engineered risks and property, on both a treaty and facultative basis.
“Gulf Re will make a valuable contribution to the development of reinsurance for high value assets in the GCC,” said Hisham Al-Razzuqi, GIC Chief Executive Officer. “Gulf Re will support local sponsors and insurers by providing capital, specialist expertise and long-term commitment. The granting of a license by the DFSA allows Gulf Re to start offering its services in the GCC.”
“We are very pleased that Gulf Re has been authorised by the DFSA. With an outstanding management team led by Gail Norstrom, we believe that Gulf Re is well positioned to meet the need for local reinsurance capacity in the fast-growing GCC,” said Marc Grandisson, Chairman and CEO of Arch Worldwide Reinsurance Group.
