Arch completes Australian acquisition to bolster mortgage insurance business
Bermuda’s Arch Capital Group has completed its acquisition of Australian captive lenders mortgage insurance (LMI) provider Westpac, it announced today.
Westpac Lenders Mortgage Insurance Limited (WLMI) has been active in the Australian market since 2011, and the acquisition bolsters Arch’s position there. With operations in Bermuda, Europe and the United States as well, Arch is the only globally diversified insurer of mortgage credit risk.
Under the deal, WLMI will retain its existing risk in force. The newly combined entity under Arch will become Westpac’s exclusive provider of lenders mortgage insurance on new originations for ten years.
“I want to thank both the Westpac and Arch teams for helping complete this transaction,” said David Gansberg, CEO, Global Mortgage for Arch Capital Group Ltd. “We look forward to continuing our partnership with Westpac and leveraging this acquisition to further establish Arch LMI as a market leader that provides innovative solutions and excellent service to clients across Australia.”
The news follows the day after Arch announced redemption of 5.25% Series E preferred shares. The redemption price was set to $25 per depositary share, payable on September. 30.
