Arch U.S. MI Holdings (Arch MI), a subsidiary of Arch Capital Group Ltd., has finalised a definitive agreement to acquire RMIC Companies, Inc. (RMIC), along with its subsidiaries, constituting the run-off mortgage insurance business of Old Republic International Corporation.
Upon the completion of the transaction, RMIC’s $1 billion risk in force (RIF) portfolio will be seamlessly integrated into Arch MI’s existing U.S. primary mortgage portfolio, boasting a RIF of $75.9 billion as of September 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, CEO 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 maximise the value of this acquisition,” he added.
The transaction, contingent on regulatory approval, is anticipated to conclude in the first half of 2024.
Jefferies LLC served as Arch’s financial advisor, and Eversheds Sutherland served as the legal advisor.
