Arch Capital Unit Lifts Incremental Credit Cap To $200 Million In Lloyds Bank Facility Now Totaling $700 Million
Arch Reinsurance's sixth amendment to its letter of credit facility with Lloyds Bank Corporate Markets runs the line to May 2027.
Arch Reinsurance, a subsidiary of Arch Capital Group, signed a sixth amendment to its Lloyds Bank letter of credit facility on Wednesday, leaving the line at $700 million and raising the cap on add-on commitments fourfold in dollar terms, from $50 million to $200 million, according to an 8-K filed Friday.
Terms of the sixth amendment
Arch Reinsurance Ltd., wholly owned by Arch Capital, is the borrower. Lloyds Bank Corporate Markets plc acts as administrative agent and letter of credit agent, the filing says.
The amendment lifts the maximum incremental commitment — extra capacity that can be added to the facility — from $50,000,000 to $200,000,000. It also requests that the last day of the availability period move from May 31, 2026 to May 31, 2027.
A third change requests an extension of the letters of credit for the 2027 underwriting year of account. Together, the amended agreement provides for a $700 million facility for letters of credit.
A facility renewed every autumn
The agreement dates to November 3, 2020, and has been amended every year since. Earlier amendments are dated October 29, 2021, October 27, 2022, October 25, 2023, October 30, 2024 and October 29, 2025.
A letter of credit is a bank's guarantee of payment, a tool reinsurers commonly use to back obligations to the insurers they cover.
Where the facility fits at Arch
Arch Capital provides insurance, reinsurance and mortgage insurance worldwide, with a focus on specialty lines. Reinsurance is insurance that other insurers buy to cover part of their own risk.
The Bermuda company reported about $26.9 billion in capital at December 31, 2025, and wrote $16.5 billion of net premiums for 2025, according to its annual report.
The sixth amendment follows the pattern of the prior five, each signed in late October, and carries the facility's availability period through May 31, 2027.
Sources
- 8-K Filing — ARCH CAPITAL GROUP LTD. (ACGL) — SEC EDGAR
