Arch MI obtains indemnity reinsurance on $30.5bn of mortgages

Arch Mortgage Insurance Company has obtained over $203 million of indemnity reinsurance on a pool representing approximately $30.5 billion of mortgages from a special purpose reinsurer, the company said. 

Arch MI , a subsidiary of Bermuda-based Arch Capital, said the coverage from Bellemeade Re 2024-1 was obtained by issuing approximately $163 million in bonds and $41 million in direct reinsurance. This transaction largely covers a portfolio of MI policies issued by Arch MI and affiliates primarily from September 2023 through July 2024 and closed yesterday.

The notes were listed on the Bermuda Stock Exchange yesterday. 

Arch said this Mortgage Insurance-Linked Note transaction is Arch’s first of 2024. Since the Bellemeade program began in 2015, Arch has completed 21 transactions that have secured over $9.7 billion in indemnity reinsurance.

Bellemeade Re 2024-1 Ltd. is funding its reinsurance obligations through the issuance of five classes of amortising notes with 10-year legal final maturities. The coupons vary from SOFR plus 2.15% to SOFR plus 5.55%. 

Additionally, a total of $40,793,000 was placed with a panel of reinsurers.

“Bellemeade continues to be a key element of Arch’s risk and capital management strategy. Despite current market volatility, we are pleased with this execution,” said Jennifer Weiss, VP of Structured Capital and Reinsurance for Arch MI.

Did you get value from this story? Sign up to our free daily newsletters and get stories like this sent straight to your inbox.