Arch Capital Group (ACGL) has finalised the acquisition of United Guaranty Corporation (UGC) from American International Group (AIG).
The company said that the purchase will allow it to further expand its footprint in the mortgage insurance market.
In October 2016, the company had announced that it will acquire two businesses of AIG, UGC and AIG United Guaranty Insurance (Asia), for around $3.4 billion.
Following the deal, Arch has based its US mortgage insurance headquarters in Greensboro, North Carolina, while maintaining its existing operations in California.
The US operations will be led by David Gansberg, president and CEO of Arch US MI, who reports to Andrew Rippert, the CEO of global mortgage insurance and reinsurance at ACGL.
“We are extremely pleased to complete this transaction, which will enable our company to continue to provide a strong and diversified source of private capital to the US mortgage insurance and housing finance markets,” said Constantine Iordanou, chairman and CEO of ACGL.
“We believe the impressive operational, managerial and risk management expertise of Arch, together with the talented professionals joining us from UGC, will enable us to provide our clients with the best products and services available anywhere in the industry,” he added.
Marc Grandisson, ACGL’s president and chief operating officer, said: “We are gratified that Arch US MI will be led by experienced professionals Andrew Rippert and David Gansberg and welcome our new colleagues from UGC.
“Over the past several months, teams at Arch and UGC have been working together to ensure a successful integration of our combined operations and a seamless transition for our clients. Our combined mortgage group looks forward to further strengthening its leadership position in the development of innovative products and services to meet the ever-evolving needs of our clients and the housing finance system.”
Arch Capital Group, ACGL, AIG, UGC, Acquisition, Mortgage insurance, United Guaranty Corporation, Bermuda, North America