Arch secures $315 indemnity reinsurance through Bellemeade Re

Arch Capital has secured over $315 million of indemnity reinsurance for subsidiary Arch Mortgage Insurance Company (Arch MI) through its Bellemeade Re 2022-1 Ltd special purpose reinsurer.

The coverage was obtained by issuing approximately $282 million in bonds and $33 million in direct reinsurance. It covers a portfolio of policies issued by Arch MI and affiliates from July through November 2021.

The mortgage insurance-linked note (MILN) transaction is Arch’s first of 2022, following three issuances in 2021. Since its Bellemeade program began in 2015, Arch has completed 18 transactions securing over $8 billion in indemnity reinsurance.

Bellemeade Re 2022-1 Ltd is funding its reinsurance obligations by issuing five classes of amortising notes with ten-year legal final maturities. Additionally, a total of $33,260,000 was placed with a panel of reinsurers.

“We are very pleased with this Bellemeade placement, which saw strong interest from both bond investors and reinsurers and provided important feedback on Arch’s primary mortgage insurance business through their participation,” said Jim Bennison, EVP for alternative markets for Arch MI. “In addition to obtaining investors’ views on mortgage credit and pricing, these transactions remain an efficient source of capital and loss protection for Arch.”