Ace to Launch Dubai-Based Reinsurance Company

Ace Group said it will launch a reinsurance company in Dubai.

Ace Group of insurance and reinsurance companies said it's been granted a license from the Dubai Financial Services Authority to establish a wholly owned subsidiary in the Dubai International Financial Centre. The license enables the company to offer reinsurance products to the market, including a full range of property, casualty and accident and health coverages.

The new company is called Ace Insurance Management (DIFC) Ltd. and will be managed by Mark Quinn, who is the senior executive officer. Ace also plans to strengthen its underwriting presence in Dubai with the appointment of a senior property underwriter, the company said in a statement.

Attempts to reach the company for additional comment were not immediately successful.

Opened in 2004, the DIFC is the world's fastest growing international financial center and offers Ace access to a fully integrated reinsurance market.

Ace has had a representative office in Dubai since 2008. Ace will share the DIFC office with Sovereign Risk Insurance, a wholly-owned subsidiary of Ace, one of the world’s leading underwriters of political risk insurance. Ace Dubai forms part of the Ace MENA regional group.

Earlier this year, Ace Ltd. announced plans to expand by acquiring all outstanding common stock of Rain and Hail Insurance Service Inc. that it doesn't already own for about $1.1 billion in cash (BestWire, Sept. 15, 2010).

In July, Munich Re received a license from the Dubai Financial Services Authority to operate a reinsurance unit from the Dubai International Financial Center, (BestWire, July 6, 2010).

Most of Ace's rated subsidiaries currently have a Best's Financial Strength Rating of A+ (Superior).

Shares of Ace's stock (NYSE: ACE) were trading at $60.83 a share on the afternoon of Dec. 20, down 0.36% from the previous close.

(By Meg Green, senior associate editor, BestWeek: [email protected])