Arch Capital Group Closes Acquisition Of UGC
Bermuda-based Arch Capital Group has completed its previously announced acquisition of United Guaranty Corporation [UGC] from American International Group, Inc. [AIG] at year-end 2016.
“The acquisition of UGC expands the scale of Arch’s existing mortgage insurance businesses by combining UGC’s position as the market leader in the U.S. private mortgage insurance industry with Arch’s financial strength and history of innovation, further diversifying our business profile and customer base,” the company said.
“The expansion of our mortgage insurance business complements our strengths in the specialty insurance and reinsurance businesses, which continue to be central to our global operations. Diversity across segments and product lines remains fundamental to our corporate strategy and allows us to deploy our capital to those areas offering the best opportunities at any given time.”
Constantine [Dinos] Iordanou, Chairman and CEO of ACGL, commented, “We are extremely pleased to complete this transaction, which will enable our company to continue to provide a strong and diversified source of private capital to the U.S. mortgage insurance and housing finance markets.
“We believe the impressive operational, managerial and risk management expertise of Arch, together with the talented professionals joining us from UGC, will enable us to provide our clients with the best products and services available anywhere in the industry.”
Marc Grandisson, President and COO of ACGL, added, “We are gratified that Arch U.S. MI will be led by experienced professionals in Andrew Rippert and David Gansberg and welcome our new colleagues from UGC.
“Over the past several months, teams at Arch and UGC have been working together to ensure a successful integration of our combined operations and a seamless transition for our clients. Our combined mortgage group looks forward to further strengthening its leadership position in the development of innovative products and services to meet the ever evolving needs of our clients and the housing finance system.”
Mr. Rippert, Chief Executive Officer, Global Mortgage Group, is responsible for ACGL’s global mortgage insurance and reinsurance operations.
Mr. Gansberg, President and CEO of Arch U.S. MI Holdings, reports to Mr. Rippert and is responsible for ACGL’s U.S. primary mortgage insurance operations, which will be headquartered in Greensboro, North Carolina, with significant operations in California.
