Arch MI Announces Introduction of RateStarsm Risk-Based Pricing Program

Program advances risk-based pricing in the Mortgage Insurance industry

WALNUT CREEK, Calif.--(BUSINESS WIRE)-- Arch Mortgage Insurance Company (“Arch MI”), a leading provider of private mortgage insurance and a wholly owned subsidiary of Arch Capital Group Ltd., today introduced Arch MI RateStar, the Company’s new risk-based pricing program. RateStar uses a combination of loan characteristics and other risk factors to determine the most precise premium rate for each loan. RateStar is expected to be available in the fourth quarter of this year and will go well beyond traditional rate sheets to provide competitive MI premium rates.

“Since its inception, Arch MI has encouraged its customers to expect more from mortgage insurance providers as we established our reputation for new and innovative product offerings,” said David Gansberg, President and Chief Executive Officer of Arch Mortgage Insurance Company. “Today, Arch MI continues down the path of innovation and product development with the introduction of RateStar – our new risk-based program for pricing mortgage insurance coverage.

“We are excited to introduce RateStar. This innovative and dynamic solution will bring a wide range of benefits to loan originators and their customers,” said Gansberg. “RateStar provides a more targeted approach than the conventional rate sheets used for decades in the industry. Instead of loans being grouped in large risk buckets, each loan will be priced based on its individual risk attributes.”

With RateStar, lenders can compete more effectively, seek out fresh opportunities and open up new markets.

“RateStar will not require any new data attributes so the transition to RateStar will be seamless and easy for lenders,” continued Gansberg. “With its intuitive design and ready access, our customers will find RateStar is an easy-to-use tool to access competitive mortgage insurance rates.”

For more information on Arch MI’s RateStar visit archmi.com/RateStar

The timing and extent of the RateStar pricing availability will be subject to receipt of state regulatory approvals, where applicable. Arch MI rate sheet pricing will be available and applied to coverage where RateStar pricing is not yet available.

ABOUT ARCH MORTGAGE INSURANCE COMPANY

Arch Capital Group Ltd.’s U.S. mortgage insurance operation, Arch MI, is a leading provider of private insurance covering mortgage credit risk. Headquartered in Walnut Creek, CA, Arch MI's mission is to protect lenders against credit risk, while extending the possibility of responsible homeownership to qualified borrowers. Arch MI’s flagship mortgage insurer, Arch Mortgage Insurance Company, is licensed to write mortgage insurance in all 50 states, the District of Columbia, and Puerto Rico. For more information, please visit archmi.com.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward−looking statements. This release or any other written or oral statements made by or on behalf of Arch Capital Group Ltd. and its subsidiaries may include forward−looking statements, which reflect our current views with respect to future events and financial performance. All statements other than statements of historical fact included in or incorporated by reference in this release are forward−looking statements.

Forward−looking statements can generally be identified by the use of forward−looking terminology such as "may," "will," "expect," "intend," "estimate," "anticipate," "believe" or "continue" or their negative or variations or similar terminology. Forward−looking statements involve our current assessment of risks and uncertainties. Actual events and results may differ materially from those expressed or implied in these statements. A non-exclusive list of the important factors that could cause actual results to differ materially from those in such forward-looking statements includes the following: adverse general economic and market conditions; increased competition; pricing and policy term trends; fluctuations in the actions of rating agencies and our ability to maintain and improve our ratings; investment performance; the loss of key personnel; the adequacy of our loss reserves, severity and/or frequency of losses, greater than expected loss ratios and adverse development on claim and/or claim expense liabilities; greater frequency or severity of unpredictable natural and man-made catastrophic events; the impact of acts of terrorism and acts of war; changes in regulations and/or tax laws in the United States or elsewhere; our ability to successfully integrate, establish and maintain operating procedures as well as integrate the businesses we have acquired or may acquire into the existing operations; changes in accounting principles or policies; material differences between actual and expected assessments for guaranty funds and mandatory pooling arrangements; availability and cost to us of reinsurance to manage our gross and net exposures; the failure of others to meet their obligations to us; and other factors identified in our filings with the U.S. Securities and Exchange Commission.

The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with other cautionary statements that are included herein or elsewhere. All subsequent written and oral forward−looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these cautionary statements. We undertake no obligation to publicly update or revise any forward−looking statement, whether as a result of new information, future events or otherwise.

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Arch Mortgage Insurance Company

Bill Horning, 925-658-6193

or

Weber Shandwick

Katharine Carver, 212-445-8210

Source: Arch Mortgage Insurance Company