Arch Insurance Group, a division of Bermuda-based Arch Capital Group Ltd., has established two principal underwriting groups in its U.S.-based operations: the Arch Property & Casualty Group and the Arch Financial & Professional Liability Group.

The company said yesterday the new groups are designed to help Arch Insurance "maximise underwriting opportunities as the market transitions".

Michael Murphy, who joined the Company in 2002, has been promoted to the position of president of the Property & Casualty Group. Mr. Murphy has 20 years of specialty lines experience and served most recently as a Senior executive vice-president of Arch Insurance Group.

David McElroy, who recently joined the company, serves as president of the Financial & Professional Liability Group. Mr. Murphy and Mr. McElroy will work closely with John Edack, Arch Insurance's chief regional and marketing officer. They will all report directly to Mark Lyons, chairman and chief executive officer of Arch Worldwide Insurance Group.

Arch Insurance Group also announced that John Rafferty has joined the Company as head of the Executive Assurance division of the Financial & Professional Liability Group. Mr. Rafferty has over 20 years of executive assurance experience. Mr. Rafferty most recently led Hartford's Financial Products division. At Arch, Mr. Rafferty will report directly to Mr. McElroy.