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."
To learn more, follow @CUNAMutualGroup on Twitter, circle +CUNA
Mutual Group on Google+, or visit
http://www.cunamutual.com/pressroom.
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.
PR-0114-89A5
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SOURCE CUNA Mutual Group