Arch Capital acquires Westpac LMI

Global mortgage insurance provider Arch Capital Group closed a deal that adds the operations of Australia’s Westpac Lenders Mortgage Insurance Ltd, known as WLMI, under its family of companies.

WLMI has served the Australian market since 2011 as a division of Westpac, one of Australia’s largest financial services institutions. Arch had already been providing support for WLMI’s reinsurance treaties since that year, and in 2019, the Australian Prudential Regulation Authority granted Arch’s Australian entity, Arch LMI Pty Ltd, authorization as a lender mortgage insurer for the country’s clients.

“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,” said David Gansberg, CEO, global mortgage for Arch Capital Group.

Arch will combine the operations of WLMI with those of Arch LMI. Per terms of the acquisition, which was initially announced in March, the newly merged company will retain WLMI’s risk in force and also become Westpac’s exclusive provider of lender mortgage insurance on new originations for 10 years, ensuring a steady flow of business.

According to Westpac, WLMI was sold at book value, estimated at approximately 350 million Australian dollars or approximately $256.1 U.S. dollars.

The WLMI deal is Arch’s second major acquisition to close this summer. In July, the publicly listed company completed its $700 million merger with Watford Holdings, a property and casualty insurance and reinsurance firm.

Arch Capital Group, which has mortgage insurance and reinsurance operations in Bermuda, Europe, Australia and the United States, reported income of $250.1 million from its mortgage insurance segment in the second quarter and held approximately $16.7 billion in capital as of June 30. Its insurance in force business, which includes mortgage reinsurance policies, ended the quarter at $422 billion, down from $427 billion in the previous quarter.

Most Related Links :
Business News Governmental News Finance News

Need Your Help Today. Your $1 can change life.

[charitable_donation_form campaign_id=57167]

Source link

Back to top button