Summary
Arch Capital Group Ltd. (ACGL) announced a significant development regarding its U.S. mortgage insurance business, Arch U.S. MI. On June 20, 2013, the Arizona receivership court approved the acquisition of CMG Mortgage Insurance Company and certain of its affiliates, along with PMI's mortgage insurance operating platform and related assets. This acquisition is from PMI Mortgage Insurance Co. (PMI), which has been under receivership since 2011. This acquisition represents a strategic move to expand Arch's presence in the U.S. mortgage insurance market. However, the transaction is not yet finalized. It is contingent upon receiving further approvals from applicable regulators, Fannie Mae, and Freddie Mac, as well as satisfying other customary closing conditions. If all approvals are secured, the deal is anticipated to close in the latter half of 2013. Investors should monitor for updates on these remaining approvals.
Key Highlights
- 1Arizona receivership court approved Arch U.S. MI's acquisition of CMG Mortgage Insurance Company and related assets from PMI.
- 2The acquired assets include CMG Mortgage Insurance Company, its affiliates, and PMI's mortgage insurance operating platform.
- 3This acquisition aims to expand Arch Capital's footprint in the U.S. mortgage insurance market.
- 4The transaction is subject to additional regulatory approvals.
- 5Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac) approval of Arch U.S. MI as an eligible carrier is required.
- 6The deal is expected to close in the latter part of 2013, pending satisfaction of all closing conditions.