|By PR Newswire||
|January 30, 2014 08:41 PM EST||
MADISON, Wis., Jan. 30, 2014 /PRNewswire/ -- Arch U.S. MI Holdings, Inc. (Arch), the U.S.-based subsidiary of Arch Capital Group Ltd. (Nasdaq: ACGL) today completed the acquisition of CMG Mortgage Insurance Company (CMG MI) from CUNA Mutual Group and PMI Mortgage Insurance Co. (PMI). The acquisition of CMG MI and the operating platform will form the foundation for Arch Mortgage Insurance Company (Arch MI) to offer mortgage insurance throughout the United States.
This transaction was first announced in February 2013, and earlier this month Arch received approval from Fannie Mae and Freddie Mac for the acquisition of CMG MI as well as the expansion of its charter to conduct non-credit union mortgage insurance business. 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.
"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," Trunzo said.
Constantine (Dinos) Iordanou, chairman and chief executive officer of Arch Capital Group Ltd. commented, "We are extremely pleased to complete this transaction and expand our existing mortgage insurance and reinsurance capabilities, which will enable our company to provide a strong and diversified source of private capital to the U.S. mortgage insurance market. We believe the impressive operational, managerial and risk management expertise of Arch, together with the mortgage insurance professionals we have assembled, will form an industry-leading team with broad capabilities to meet our clients' needs."
"All of us at Arch thank Fannie Mae, Freddie Mac, the FHFA and the Wisconsin and Arizona Departments of Insurance for their approval of this acquisition, as well as their support of our Company," said Marc Grandisson, chairman and chief executive officer of Arch Worldwide Reinsurance Group. "We are open for business and look forward to strengthening relationships with our existing credit union customers, as well as broadening our relationships with lenders nationwide."
CUNA Mutual Group insurance, retirement and investment products provide financial security and protection to credit unions and their members worldwide. With more than 75 years of true market commitment, CUNA Mutual Group's vision is unwavering: To be a trusted business partner who delivers service excellence through customer-focused products and market-driven insight. More information on the company is available on the company's website at www.cunamutual.com.
CUNA Mutual Group is the marketing name for CUNA Mutual Holding Company, a mutual insurance holding company, its subsidiaries and affiliates. Life, accident, health and annuity insurance products are issued by CMFG Life Insurance Company. Property and casualty insurance products are issued by CUMIS Insurance Society, Inc. Each insurer is solely responsible for the financial obligations under the policies and contracts it issues. Corporate headquarters are located in Madison, Wisconsin.
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SOURCE CUNA Mutual Group