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Arch MI Secures Over $203 Million of Indemnity Reinsurance through Bellemeade Re Insurance-Linked Note Transaction and Related Reinsurance
GREENSBORO, N.C.--(BUSINESS WIRE)-- Arch Mortgage Insurance Company (Arch MI) announced it has obtained over $203 million of indemnity reinsurance on a pool
About this update from Arch Capital Group Ltd.
[{"type":"text","content":" GREENSBORO, N.C.--(BUSINESS WIRE)--\nArch Mortgage Insurance Company (Arch MI) announced it has obtained over $203 million of indemnity reinsurance on a pool representing approximately $30.5 billion of mortgages from Bellemeade Re 2024-1 Ltd., a special purpose reinsurer. The coverage was obtained by issuing approximately $163 million in bonds and $41 million in direct reinsurance. This transaction largely covers a portfolio of MI policies issued by Arch MI and affiliates primarily from September 2023 through July 2024 and closed on Aug. 15.\n\n\nThis 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 $9.7 billion in indemnity reinsurance.\n\n\nBellemeade Re 2024-1 Ltd. is funding its reinsurance obligations through the issuance of five classes of amortizing notes with 10-year legal final maturities.\n\n\nThe 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).\n\n\nPricing detail for the five classes of offered notes is below:\n\n\n\n$34,964,000 class M-1A notes with a coupon equal to one-month SOFR plus 2.15%.\n\n\n\n$53,612,000 class M-1B notes with a coupon equal to one-month SOFR plus 3.20%.\n\n\n\n$37,294,000 class M-1C notes with a coupon equal to one-month SOFR plus 3.95%.\n\n\n\n$25,640,000 class M-2 notes with a coupon equal to one-month SOFR plus 4.60%.\n\n\n\n$11,654,000 class B-1 notes with a coupon equal to one-month SOFR plus 5.55%.\n\n\n\nAdditionally, a total of $40,793,000 was placed with a panel of reinsurers.\n\n\n“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 Jennifer Weiss, VP of Structured Capital and Reinsurance for Arch MI.\n\n\nAbout Arch MI\n\n\nArch MI, a wholly owned subsidiary of Arch Capital Group Ltd., is a leading provider of private insurance covering mortgage credit risk in the U.S. Headquartered in Greensboro, North Carolina, Arch MI's mission is to protect lenders against credit risk, while extending the possibility of responsible home ownership to qualified borrowers. Arch MI’s flagship mortgage insurer, A...