Business
Arch MI Secures Over $249 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 $249 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 $249 million of indemnity reinsurance on a pool representing approximately $54.2 billion of mortgages from Bellemeade Re 2025-1 Ltd., a special purpose reinsurer.\n\n\nThe coverage was obtained by issuing approximately $199 million in bonds and $50 million in direct reinsurance. This transaction largely covers a portfolio of MI policies issued by Arch MI and affiliates primarily from July 2024 through September 2025 and closed on Nov. 13.\n\n\nThis Mortgage Insurance-Linked Note (MILN) transaction is Arch’s first of 2025. Since the Bellemeade program began in 2015, Arch has completed 22 transactions that have secured nearly $10 billion in indemnity reinsurance.\n\n\nBellemeade Re 2025-1 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 Morningstar DBRS 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$39,859,000 class M-1A notes with a coupon equal to one-month SOFR plus 1.55%.\n\n\n\n$59,789,000 class M-1B notes with a coupon equal to one-month SOFR plus 2.50%.\n\n\n\n$42,706,000 class M-1C notes with a coupon equal to one-month SOFR plus 3.25%.\n\n\n\n$37,012,000 class M-2 notes with a coupon equal to one-month SOFR plus 3.90%.\n\n\n\n$19,929,000 class B-1 notes with a coupon equal to one-month SOFR plus 5.05%.\n\n\n\nAdditionally, a total of $49,826,000 was placed with a panel of reinsurers.\n\n\n“Bellemeade is an important part of Arch’s risk and capital management strategy, and we are excited to introduce an innovative amortization structure in this Bellemeade transaction that matches our capital requirements,” said Jennifer Weiss, VP of Structured Capital and Reinsurance for Arch MI. “We had strong investor engagement for this offering, and we are pleased with the ultimate execution.”\n\n\nAbout Arch MI\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 ...