Arch Capital Group has announced that its newly-formed subsidiary, Arch Underwriters, will act as reinsurance manager for a newly-formed multi-line Bermuda reinsurance company, Watford Re.
The start-up is being formed in association with Highbridge Capital Management. It will be funded principally with third party capital.
Highbridge Principal Strategies will act as investment manager for Watford Re.
The deal makes Arch Capital Group the latest company to partner with hedge funds to establish new operations on Bermuda.