![]() The indemnity reinsurance will cover a pool representing approximately $36 billion of mortgages and largely covers a portfolio of MI policies issued by Arch MI and affiliates from December 2020 through March 2021, the company explained.īellemeade Re 2021-2 Ltd. Now, Arch Capital has successfully closed its latest mortgage ILS deal, securing the $523 million of collateralized mortgage reinsurance from the capital markets through Bermuda based issuer Bellemeade Re 2021-2 deal.Īt the same time, Arch added $93 million in direct mortgage reinsurance, taking the total amount of coverage secured to $616 million of indemnity protection. It is actually the sixteenth mortgage insurance-linked notes (ILN) issuance under the Bellemeade Re program of deals since it began.īut the fourteenth for Arch Capital, since it purchased AIG’s United Guaranty, through which the company secures a flexible source of collateralized reinsurance to support its expanding mortgage insurance underwriting business. We explained earlier this week that Arch Capital was back in the capital markets in search of its second mortgage insurance-linked securities (ILS) transaction of the year, Bellemeade Re 2021-2 Ltd. The company explained that capital markets conditions for mortgage insurance-linked notes issuance has recovered from the pandemic, resulting in the best pricing and broadest investor participation of any Bellemeade Re deal so far. mortgage ILS deal and a direct placement of another $93 million of cover. Best placed a number of its own Arch ratings on review with developing implications.Arch Capital Group, the Bermuda headquartered specialty insurance and reinsurance company, said today that its mortgage insurer arm, Arch Mortgage Insurance Company (Arch MI), has secured $616 million of reinsurance across its latest $523 million Bellemeade Re 2021-2 Ltd. Moody’s placed several Arch ratings on review for downgrade, and A.M. The ratings agency raised its ratings for Arch in light of the completed deal.įitch placed several ratings for Arch Capital Group on rating watch negative. But S&P affirmed its “A-” long-term counterparty credit rating for Arch Capital, as well as the counterparty credit and financial strength ratings for Arch’s operating subsidiaries. S&P revised its outlook to negative from stable on all Arch Capital ratings and its subsidiaries (except for Arch Mortgage) due to financial risks involved. Best gave a mixed response regarding Arch’s side of the deal. Soon after the deal was announced, Standard & Poor’s, Fitch Ratings, Moody’s and A.M. He reports to Andrew Rippert, CEO of Arch’s global mortgage group. primary mortgage insurance operations, which will be headquartered in Greensboro, North Carolina, with significant operations in California. AIG said it is retaining a portion of mortgage-insurance business originated from 2014 through 2016 through a intra-company risk transfer deal.ĭavid Gansberg, president and CEO of Arch U.S., is responsible for U.S. The deal is valued at $3.4 billion including $2.2 billion in cash and the rest in Arch securities, AIG said in August. 30, with 1,000 employees and active relationships with nearly 1,700 customers, according to AIG. UGC had $186.4 billion of first-lien primary mortgage insurance in force as of Sept. International business will be combined in Europe, Hong Kong and Australia. Arch has said it will maintain a significant presence in that state while retaining mortgage-insurance operations in California. United Guaranty, based in Greensboro, North Carolina, has about 1,000 employees. “We believe that the companies’ complementary risk-management cultures will further accelerate innovation and sound risk management and help us to maximize our best-in-class processes in the specialty insurance space,” Iordanou said when the deal was announced. “With this transaction, AIG has taken another step in simplifying our organization to become a leaner, more focused insurance company,” AIG President and CEO Peter Hancock said in prepared remarks.ĪIG has been reorganizing and streamlining in part to fend off pressure from activist investor Carl Icahn to break up the insurer.ĪIG has said it will continue to be a participant in the residential real estate market through direct ownership of mortgage loans, a portfolio of structured securities, the holding of Arch stock and continued ties to United Guaranty.Īrch CEO Dinos Iordanou said the transaction unites two market leaders. ![]()
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