Arch U.S. MI Holdings, Inc., the U.S.-based subsidiary of Arch Capital Group Ltd., completed on Monday its acquisition of CMG Mortgage Insurance Co. from CUNA Mutual Group and PMI Mortgage Insurance Co.
The acquisition of CMG MI and the operating platform will form the foundation for Arch Mortgage Insurance Co. to offer mortgage insurance throughout the United States.
“This relationship with Arch MI allows CUNA Mutual Group to better focus on its strengths, while maintaining our commitment to delivering superior product solutions to the credit unions and members we serve," said Robert Trunzo, CUNA Mutual Group president and chief executive officer. "Our marketplace knowledge and distribution abilities combined with Arch's strength as a global insurer and strong credit ratings will allow us to continue delivering superior service and a reliable private mortgage insurance product to credit unions.”
This transaction was announced one year ago, and earlier this month Arch received approval from Fannie Mae and Freddie Mac.
From the company:
With the completion of the transaction, Arch MI enters the market as a government-sponsored enterprise (GSE)-approved mortgage insurer with the infrastructure to begin operations immediately. This includes nationwide mortgage insurance licenses and a tested, reliable, and secure mortgage insurance operating platform.
As part of the transaction, CUNA Mutual Group has entered into a distribution agreement with Arch MI to exclusively manage the distribution of mortgage insurance to credit unions. The CMG MI sales team will remain CUNA Mutual Group employees dedicated to serving their credit union customers. Credit union systems interfaces and key support personnel, including underwriters, will not change, making this a seamless transition for credit union customers.
This transaction does not impact any credit unions with existing CMG MI policies. The transaction also provides that a CUNA Mutual Group affiliate will reinsure a portion of the post-closing mortgage insurance business issued by CMG MI to credit unions, under the terms of a quota share reinsurance agreement.