Arch Capital Group Ltd. Closes Acquisition of Westpac Lenders Mortgage Insurance Limited

Rhea-AI Summary

Arch Capital Group Ltd. (ACGL) has completed the acquisition of Westpac Lenders Mortgage Insurance Limited (WLMI), an Australian mortgage insurance provider. This strategic move allows Arch to combine WLMI's operations with its existing Australian division, Arch LMI Pty Ltd., making WLMI the exclusive provider of lenders mortgage insurance to Westpac for a decade. Arch aims to enhance its position as a globally diversified mortgage credit risk insurer. With this acquisition, Arch strengthens its commitment to delivering innovative solutions across Australia.

Positive

• Acquisition of WLMI enhances Arch's market presence in Australia.
• WLMI becomes exclusive lender mortgage insurance provider for Westpac for 10 years.
• Synergies expected from combining WLMI with Arch LMI Pty Ltd.

Negative

• None.

PEMBROKE, Bermuda--(BUSINESS WIRE)-- Arch Capital Group Ltd. [NASDAQ: ACGL] today announced the completion of the previously disclosed acquisition of Westpac Lenders Mortgage Insurance Limited (WLMI), an Australian Prudential Regulation Authority (APRA) authorized captive lenders mortgage insurance (LMI) provider to the Westpac Group (Westpac). With the transaction complete, Arch will proceed with combining the operations of WLMI with its existing Australian LMI company, Arch LMI Pty Ltd.

As part of the acquisition, 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.

WLMI has been a provider of LMI in the Australian market since 2011 and this 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 United States.

“I want to thank both the Westpac and Arch teams for helping complete this transaction,” said David Gansberg, CEO, Global Mortgage for Arch Capital Group Ltd. “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.”

About Arch Capital Group Ltd.

Arch Capital Group Ltd., a publicly listed Bermuda exempted company with approximately $16.7 billion in capital at June 30, 2021, provides insurance, reinsurance and mortgage insurance on a worldwide basis through its wholly owned subsidiaries.

Cautionary Note Regarding Forward-looking Statements

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward−looking statements. This release or any other written or oral statements made by or on behalf of Arch Capital Group Ltd. and its subsidiaries may include forward−looking statements, which reflect our current views with respect to future events and financial performance. All statements other than statements of historical fact included in or incorporated by reference in this release are forward−looking statements.

Forward−looking statements can generally be identified by the use of forward−looking terminology such as "may," "will," "expect," "intend," "estimate," "anticipate," "believe" or "continue" or their negative or variations or similar terminology. Forward−looking statements involve our current assessment of risks and uncertainties. Actual events and results may differ materially from those expressed or implied in these statements. A non-exclusive list of the important factors that could cause actual results to differ materially from those in such forward-looking statements includes the following: adverse general economic and market conditions; increased competition; pricing and policy term trends; fluctuations in the actions of rating agencies and the Company’s ability to maintain and improve its ratings; investment performance; the loss of key personnel; the adequacy of the Company’s loss reserves, severity and/or frequency of losses, greater than expected loss ratios and adverse development on claim and/or claim expense liabilities; greater frequency or severity of unpredictable natural and man-made catastrophic events, including pandemics such as COVID-19; the impact of acts of terrorism and acts of war; changes in regulations and/or tax laws in the United States or elsewhere; the Company’s ability to successfully integrate, establish and maintain operating procedures as well as integrate the businesses the Company has acquired or may acquire into the existing operations; changes in accounting principles or policies; material differences between actual and expected assessments for guaranty funds and mandatory pooling arrangements; availability and cost to the Company of reinsurance to manage the Company’s gross and net exposures; the failure of others to meet their obligations to the Company; changes in the method for determining the London Inter-bank Offered Rate (“LIBOR”) and the potential replacement of LIBOR and other factors identified in the Company’s filings with the U.S. Securities and Exchange Commission (“SEC”).

The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with other cautionary statements that are included herein or elsewhere. All subsequent written and oral forward−looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these cautionary statements. The Company undertakes no obligation to publicly update or revise any forward−looking statement, whether as a result of new information, future events or otherwise.

arch-corporate

arch-mortgage

View source version on businesswire.com: https://www.businesswire.com/news/home/20210830005611/en/

Greg Hare, SVP Branding & Employee Communications Services

Arch Capital Services LLC

336 333 0414 / ghare@archgroup.com

Damian Smith, CEO & Country Manager

Arch LMI

+1 0411604082 / dsmith@archlmi.com

Source: Arch Capital Group Ltd.

FAQ

What is the significance of Arch Capital's acquisition of Westpac Lenders Mortgage Insurance Limited?

The acquisition enhances Arch's market position in Australia and secures WLMI as Westpac's exclusive provider of mortgage insurance for 10 years.

How will the acquisition of WLMI affect Arch Capital's operations?

Arch Capital plans to integrate WLMI with Arch LMI Pty Ltd., aiming for improved efficiency and service offerings in the Australian mortgage insurance market.

What strategic advantages does Arch Capital gain from acquiring WLMI?

The acquisition strengthens Arch's status as a globally diversified mortgage insurer and provides exclusive access to Westpac's mortgage origination business.

When was the acquisition of WLMI by Arch Capital completed?

Arch Capital announced the completion of the acquisition of WLMI on August 30, 2021.