Arch Capital’s reinsurance subsidiary, Arch Reinsurance, amended its letter-of-credit facility with Lloyds Bank, extending the period in which it can use the facility and increasing the amount of additional commitments it may seek. The facility remains $700 million.
The changes relate to letters of credit rather than a newly announced cash borrowing. The amendment also covers letters of credit for the 2027 underwriting year of account.
Key details
- Facility size: The letter-of-credit facility remains $700 million.
- Longer availability: The last day of the availability period moves from May 31, 2026, to May 31, 2027.
- Higher limit for incremental commitments: The maximum incremental commitment rises from $50 million to $200 million. This increases the amount of additional commitments Arch Reinsurance may seek; it does not, by itself, raise the stated $700 million facility.
- 2027 underwriting year: The amendment provides for a request to extend letters of credit for the 2027 underwriting year of account.
- Borrower: Arch Reinsurance, a wholly owned Arch Capital subsidiary, is the borrower under the facility.
What changes for investors
Arch Reinsurance has more time to access the letter-of-credit facility and greater scope to seek additional commitments. The stated facility size remains $700 million, and the amendment does not describe a new cash draw or a change in Arch Capital’s ownership or governance.