Arch looks to become 'market leader' in Australian mortgage insurance

Bermuda-based re/insurer  Arch Capital Group has augmented its mortgage credit risk insurance business in the Australian market following its acquisition of  Westpac Lenders Mortgage Insurance (WLMI).

Arch has completed the acquisition of WLMI, an Australian Prudential Regulation Authority (APRA) authorised captive lenders mortgage insurance (LMI) provider to the Westpac Group.

WLMI has been a provider of LMI in the Australian market since 2011, and the acquisition augments Arch MI’s position as the only globally diversified insurer of mortgage credit risk. In addition to Australia, Arch has mortgage insurance and reinsurance operations in Bermuda, Europe and the US.

Following the completion of the transaction, Arch will proceed with combining the operations of WLMI with its existing Australian LMI company, Arch LMI.

As part of the deal, WLMI will retain its existing risk in force and the newly combined entity under Arch will become Westpac’s exclusive provider of LMI on new mortgage originations for a period of 10 years.

David Gansberg (pictured), CEO of global mortgage for Arch Capital Group, said: “I want to thank both the Westpac and Arch teams for helping complete this transaction. We look forward to continuing our partnership with Westpac and leveraging this acquisition to further establish Arch LMI as a market leader that provides innovative solutions and excellent service to clients across Australia.”

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