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Transactions with Related Parties
 12 Months Ended
Dec. 31, 2020
Related Party Transactions [Abstract]  
Transactions with Related Parties
In 2017, the Company acquired approximately 25% of Premia Holdings Ltd. Premia Holdings Ltd. is the parent of Premia Reinsurance Ltd., a multi-line Bermuda reinsurance company (together with Premia Holdings Ltd., “Premia”). Premia’s strategy is to reinsure or acquire companies or reserve portfolios in the non-life property and casualty insurance and reinsurance run-off market. Arch Re Bermuda and certain Arch co-investors invested $100.0 million and acquired approximately 25% of Premia as well as warrants to purchase additional common equity. Arch has appointed two directors to serve on the seven person board of directors of Premia. Arch Re Bermuda is providing a 25% quota share reinsurance treaty on certain business written by Premia.
In the 2019 fourth quarter, Barbican entered into certain reinsurance and related transactions with Premia pursuant to which Premia assumed a transfer of liability for the 2018 and prior years of account of Barbican as of July 1, 2019. Barbican recorded reinsurance recoverable on unpaid and paid losses and funds held liability of $199.8 million and $149.6 million, respectively at December 31, 2020, compared to $177.7 million and $180.0 million, respectively, at December 31, 2019.
In the 2020 fourth quarter, Arch Capital and Arch Re Bermuda entered into agreements pursuant to which Arch Re Bermuda, together with certain co-investors, expect to acquire all of the common shares of Watford Holdings Ltd, subject to customary closing conditions including regulatory and shareholder approval. See note 12, “Variable Interest Entity and Noncontrolling Interests.”
Certain directors and executive officers of the Company own common and preference shares of Watford. See note 12, “Variable Interest Entity and Noncontrolling Interests,” for information about Watford.