Arch unit to buy run-off mortgage insurance business of property insurer
A US subsidiary of Bermuda-based Arch Capital will acquire RMIC Companies, Inc. (RMIC) and its subsidiaries that together comprise the run-off mortgage insurance business of Old Republic International Corporation.
RMIC’s $1 billion risk in force portfolio will be integrated into Arch US MI Holdings' existing US primary mortgage portfolio, which had a RIF of $75.9 billion at September 30, 2023.
“Our ability to leverage the scale of our platform to gain significant expense and capital synergies makes this an attractive financial transaction for Arch,” said David Gansberg, chief executive officer of Arch’s Global Mortgage Group. “Our teams are experienced and proficient at acquiring and integrating mortgage insurance companies, which we expect will help us quickly maximize the value of this acquisition.”
The transaction is expected to close in the first half of 2024 and is subject to regulatory approval.
Jefferies LLC served as Arch’s financial advisor and Eversheds Sutherland served as Arch’s legal advisor.
Arch MI is described as a leading provider of private insurance covering mortgage credit risk in the US. Headquartered in Greensboro, North Carolina, Arch MI's mission is to protect lenders against credit risk, while extending the possibility of responsible home ownership to qualified borrowers.