Arch Mortgage Insurance Company (Arch MI) has announced that it has obtained over $315 million of indemnity reinsurance on a pool representing approximately $6.3 billion of mortgages from Bellemeade Re 2022-1 Ltd., a special purpose reinsurer.
The coverage was obtained by issuing approximately $282 million in bonds and $33 million in direct reinsurance.
This transaction largely covers a portfolio of MI policies issued by Arch MI and affiliates from July through November 2021.
This Mortgage Insurance-Linked Note (MILN) transaction is Arch’s first of 2022, following three issuances in 2021. S
ince the Bellemeade program began in 2015, Arch has completed 18 transactions which have secured over $8 billion in indemnity reinsurance.
“We are very pleased with this Bellemeade placement, which saw strong interest from both bond investors and reinsurers and provided important feedback on Arch’s primary mortgage insurance business through their participation,” said Jim Bennison, EVP, Alternative Markets for Arch MI.
“In addition to obtaining investors’ views on mortgage credit and pricing, these transactions remain an efficient source of capital and loss protection for Arch.”
Bellemeade Re 2022-1 Ltd. is funding its reinsurance obligations through the issuance of five classes of amortizing notes with 10-year legal final maturities.
