Re/insurance specialist Arch Capital Group has turned to the capital markets for a third time this year, as it looks to complete an insurance-linked securities (ILS) transaction that will provide $506.11 million of reinsurance capacity, according to reports from our sister site Artemis.
Once this deal completes, Arch will have secured an astounding $1.534 billion of capacity from capital market investors.
Artemis states that for this ILS transaction Arch registered a Bermuda domiciled special purpose insurer (SPI) in September named Bellemeade Re 2018-3 Ltd.
Arch issued the $374.5 million Bellemeade Re 2018-1 Ltd. in April of this year and followed it with its largest mortgage ILS to date, the $653.3 million Bellemeade Re 2018-2 Ltd. in August.
This announcement closely follows news that the mortgage insurance specialist MGIC has sought $318.6 million of capital markets-backed reinsurance capacity with its first ILS transaction.
Once this latest Bellemeade Re 2018-3 Ltd. transaction is completed, Arch will benefit from almost $2.5 billion of in-force mortgage reinsurance protection from the capital markets, according to Artemis’ data tracking the leading ILS sponsors of the world.
Artemis adds that, once completed, this will have been Arch Capital Group’s sixth mortgage insurance linked note or mortgage ILS issuance in the Bellemeade series of transactions, the fourth in the series since it acquired AIG’s United Guaranty, which had sponsored the first two Bellemeade Re ILS deals.
You can read all about the new Bellemeade Re 2018-3 Ltd. mortgage ILS transaction from Arch, as well as every other mortgage insurance-linked notes transaction, in the Artemis Deal Directory.
