PEMBROKE, Bermuda – (BUSINESS WIRE) – The Global Mortgage Group of Arch Capital Group Ltd. (NASDAQ: ACGL) has entered into a share purchase agreement with Westpac Group (Westpac) to acquire Westpac Lenders Mortgage Insurance Limited (WLMI), an Australian regulatory agency (APRA) authorized mortgage insurance provider (LMI) for Westpac. As of September 30, 2020, WLMI had equity of AUD 285.7 million.
Under the agreement, WLMI will maintain its existing risk and become Westpac’s exclusive provider of LMI for new mortgage origins for a period of 10 years. Upon completion of the transaction, Arch intends to continue the operations of WLMI and its existing Australian LMI company Arch LMI Pty Ltd. to merge.
Arch has been in the Australian LMI market since 2011 when it began supporting WLMI’s reinsurance treaties. In 2019, Arch LMI Pty Ltd was approved as a mortgage lender by APRA. The acquisition of WLMI secures Arch’s Australian LMI business flow from Westpac Bank and strengthens the company’s position as the only globally diversified insurer of mortgage credit risk. In addition to Australia, Arch has mortgage insurance and reinsurance businesses in Bermuda, Europe, and the United States.
“Australia was and is an important market for our mortgage insurance business. This acquisition strengthens our commitment to both the market and our customers and strengthens Arch’s position as the leading provider of LMI in Australia, ”said David Gansberg, CEO of Global Mortgage at Arch Capital Group Ltd. Partnership with Westpac as the exclusive provider of LMI and continues to focus on providing innovative solutions and excellent service to customers across Australia. ”
The transaction is expected to close later this year pending antitrust and regulatory approvals from APRA and the Australian Competition and Consumer Commission.
Credit Suisse acted as financial advisor, KPMG as tax advisor and Clyde & Co as legal advisor to Arch on the transaction.
About Arch Capital Group Ltd.
Arch Capital Group Ltd., a publicly traded, Bermuda-exempt company with approximately $ 15.8 billion in capital as of December 31, 2020, provides insurance, reinsurance and mortgage insurance worldwide through its wholly owned subsidiaries.
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