Arch US MI To Acquire RMIC Companies
Arch U.S. MI Holdings, a wholly owned subsidiary of Arch Capital Group Ltd., has entered into a definitive agreement to acquire RMIC Companies, Inc. [RMIC] and its subsidiaries that together comprise the run-off mortgage insurance business of Old Republic International Corporation.
A spokesperson said, “Once the transaction is closed, RMIC’s $1 billion risk in force [RIF] portfolio will be integrated into Arch MI’s existing U.S. primary mortgage portfolio, which had a RIF of $75.9 billion at Sept. 30, 2023.”
“Our ability to leverage the scale of our platform to gain significant expense and capital synergies makes this an attractive financial transaction for Arch,” said David Gansberg, Chief Executive Officer of Arch’s Global Mortgage Group. “Our teams are experienced and proficient at acquiring and integrating mortgage insurance companies, which we expect will help us quickly maximize the value of this acquisition.”
The spokesperson said, “The transaction is expected to close in the first half of 2024 and is subject to regulatory approval. Jefferies LLC served as Arch’s financial advisor and Eversheds Sutherland served as Arch’s legal advisor.”
