Arch MI Secures Over $203 Million of Indemnity Reinsurance through Bellemeade Re Insurance-Linked Note Transaction and Related Reinsurance
This Mortgage Insurance-Linked Note (MILN) transaction is Arch’s first of 2024. Since the Bellemeade program began in 2015, Arch has completed 21 transactions that have secured over
Bellemeade Re 2024-1 Ltd. is funding its reinsurance obligations through the issuance of five classes of amortizing notes with 10-year legal final maturities.
The notes received ratings from DBRS Morningstar as follows: Class M-1A was BBB (low)(sf), Class M-1B was BB (high)(sf), Class M-1C was BB (low)(sf), Class M-2 was B (high)(sf) and Class B-1 was B (sf).
Pricing detail for the five classes of offered notes is below:
-
$34,964,000 class M-1A notes with a coupon equal to one-month SOFR plus 2.15%. -
$53,612,000 class M-1B notes with a coupon equal to one-month SOFR plus 3.20%. -
$37,294,000 class M-1C notes with a coupon equal to one-month SOFR plus 3.95%. -
$25,640,000 class M-2 notes with a coupon equal to one-month SOFR plus 4.60%. -
$11,654,000 class B-1 notes with a coupon equal to one-month SOFR plus 5.55%.
Additionally, a total of
“Bellemeade continues to be a key element of Arch’s risk and capital management strategy. Despite current market volatility, we are pleased with this execution,” said
About Arch MI
Arch MI, a wholly owned subsidiary of
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