Arch Mortgage Insurance Secures $374.46 Million of Indemnity Reinsurance from Insurance-Linked Note Transaction

By a News Reporter-Staff News Editor at Insurance Weekly News -- Arch Mortgage Insurance Company ("Arch MI") announced that it has obtained $374,460,000 of indemnity reinsurance from Bellemeade Re 2018-1 Ltd., a special purpose insurer. The reinsurance is for a portfolio of mortgage insurance (MI) policies issued by Arch MI primarily from July through December of 2017. The senior M-1B class note received a rating of BBB from Morningstar.

This transaction marks the second time that Arch MI has accessed the capital markets for a risk transfer involving an MI portfolio. Previously, United Guaranty, which was acquired by Arch from AIG in 2016, had conducted two similar transactions through Bellemeade Re Ltd. special purpose vehicles. Altogether, the four Bellemeade transactions have garnered over $1.3B of reinsurance protection for loans representing over $117B of unpaid principal balance.

Bellemeade Re 2018-1 Ltd. is funding its reinsurance obligations through the issuance of three classes of amortizing notes with 10-year legal final maturities. This insurance-linked securities (ILS) transaction provides Arch with fully collateralized coverage from Bellemeade Re 2018-1 Ltd. for potential losses on a portion of its 2017 MI portfolio.

Keywords for this news article include: Business, Real Estate, Arch Mortgage Insurance Company.

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