Arch closes $140m mortgage insurer buyout
Bermuda-based Arch Capital Group, a leading players in the mortgage insurance sector, has closed its $140 million purchase of the mortgage insurance business of Old Republic international.
The deal, first announned last November, sees Arch subsidiary Arch US MI Holdings buy RMIC Companies and its subsidiaries that together comprise the run-off mortgage insurance business of Old Republic.
“We are pleased that this deal has closed according to originally agreed terms, with regulatory approval, and look forward to integrating RMIC into Arch MI’s existing U.S. primary mortgage portfolio,” said David Gansberg, chief executive officer of Arch’s Global Mortgage Group.
The definitive agreement was first announced on November 13, 2023. The deal closed on June 3, 2024. Jefferies LLC served as Arch’s financial advisor and Eversheds Sutherland served as Arch’s legal advisor.
Insurance subsidiaries of Arch MI are leading providers of private insurance covering mortgage credit risk in the US. Headquartered in Greensboro, North Carolina. Arch MI says its mission is to protect lenders against credit risk, while extending the possibility of responsible home ownership to qualified borrowers. Arch MI’s flagship mortgage insurer, Arch Mortgage Insurance Company, is licensed to write mortgage insurance in all 50 states, the District of Columbia and Puerto Rico.
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