Arch grows mortgage reach via acquisition
Arch US, a subsidiary of Arch Capital Group, has acquired CMG Mortgage Insurance Company and the mortgage insurance operating platform of PMI Mortgage Insurance. GMG will be renamed Arch Mortgage Insurance Company.
The deal gives Arch US mortgage insurance licenses across the US and the ability to enter the mortgage insurance marketplace across the country. It has also has obtained approval as an eligible mortgage insurer from Fannie Mae and Freddie Mac.
The acquisition also broadens Arch’s existing global mortgage insurance and reinsurance capabilities.
Marc Grandisson, Chairman and CEO of Arch Worldwide Reinsurance Group, is responsible for Arch Capital Group’s global mortgage insurance and reinsurance operations. Arch US MI is led by president and CEO David Gansberg.
Gansberg joined the Arch group in 2001 and has 20 years of experience in various actuarial, underwriting and senior management positions in the insurance industry. He will report to Andrew Rippert, who joined Arch in 2010 and has 16 years of experience in the mortgage insurance industry.
Rippert will be CEO of Arch Worldwide Mortgage Insurance and Reinsurance Group and currently serves as president and CEO of Arch Mortgage Insurance based in Ireland. The current experienced senior management team and staff of PMI and CMG MI also joined Arch US MI in connection with the transaction.
Constantine (Dinos) Iordanou, chairman and CEO of Arch Capital Group, said: “We are extremely pleased to complete this transaction and expand our existing mortgage insurance and reinsurance capabilities, which will enable our company to provide a strong and diversified source of private capital to the US mortgage insurance market.
“We are gratified that Arch US MI will be led by experienced managers in David and Andrew and also welcome our new colleagues from PMI and CMG MI. We believe the impressive operational, managerial and risk management expertise of Arch, together with the mortgage insurance professionals we have assembled, will form an industry leading team with broad capabilities to meet our clients' needs. Our ability to promote from within is another indication of the depth and strength of the management team we have built at Arch. As we develop our new business, we look forward to working with Fannie Mae and Freddie Mac.”
