MADISON, Wis. (1/31/14)--Arch U.S. MI Holdings Inc. (Arch), the U.S.-based subsidiary of Arch Capital Group Ltd., Thursday completed the acquisition of CMG Mortgage Insurance Co. (CMG MI) from CUNA Mutual Group and PMI Mortgage Insurance Co.
The acquisition of CMG MI and the operating platform will form the foundation for Arch Mortgage Insurance Co. (Arch MI) to offer mortgage insurance nationwide.
This transaction was first announced in February 2013. Earlier this month Arch received approval from Fannie Mae and Freddie Mac for the acquisition of CMG MI and 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.
As part of the transaction, CUNA Mutual Group will exclusively manage the distribution of mortgage insurance to credit unions. The CMG MI sales team will continue serving credit unions as CUNA Mutual Group employees. Credit union systems interfaces and key support personnel, including underwriters, will not change.
"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/CEO. "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."
The transaction does not affect any credit unions with existing CMG MI policies, the companies said. 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.