JSMedia – Arch Capital Group Ltd. has acquired Westpac Lenders Mortgage Insurance Limited. It will merge WLMI operations with Arch LMI Pty Ltd and will be Westpac’s exclusive LMI provider for the next 10 years. The transaction is subject to regulatory approval. It is expected to close in the third quarter of 2016. This will enable the new ownership to focus on the lender’s lending business. Further, the new management team will be led by former WLMI chief executive officer Angus Wilson.
Arch Capital Group Ltd. has completed the acquisition of Westpac Lenders Mortgage Insurance Limited. WLMI is an Australian Prudential Regulation Authority (APRA)-authorized captive lender. The deal will merge the operations of WLMI with Arch LMI Pty Ltd., and the merged entity will be the sole provider of LMI for the Westpac Group for the next decade. As a result of the merger, Arch Capital expects to enhance its position as the world’s leading insurer of mortgage credit risk.
Arch Capital Group Ltd. has completed the acquisition of WLMI. WLMI is an Australian Prudential Regulation Authority-authorized captive lender. Its shareholders’ equity was $AUD 285.7 million at the end of September 2020. Under the agreement, the new company will become exclusive provider of LMI on new mortgage originations for 10 years. The new entity will continue to provide LMI to the Westpac Group as long as the merger is completed.
Arch Capital Group and Westpac Lenders Mortgage Insurance Limited
The acquisition will enable Arch to become an exclusive LMI provider for Westpac Bank for the next 10 years. The two companies will remain separate but will continue to serve the Australian market as their LMI provider. While the transaction is subject to various regulatory approvals, the deal is expected to close by the end of August 2021. The company’s combined operations will become the sole source of LMI for Westpac for ten years.
Arch has been active in the Australian LMI market since 2011. It has acquired WLMI in 2011 and has since become the exclusive LMI provider for the Westpac Group for 10 years. The transaction is subject to various regulatory approvals. At the end of August, the transaction is expected to close. With the acquisition, Arch will continue to offer its existing Australian LMI clientele. The merger is expected to make Westpac a more accessible lender for consumers.
The company will be a major provider of LMI in Australia and New Zealand. It will provide LMI to customers of the bank. The deal involves a 10-year exclusive supply agreement with Arch. The transaction includes small annual payments to both companies. The deal is subject to various regulatory approvals. In addition to the Arch acquisition, Westpac will continue to provide LMI in the Australian market for its customers. They will be the largest provider of LMI in Australia.
As of the end of December, the deal was completed between the two Lenders. The transaction is valued at approximately $1 billion. It will be completed over the next 10 years. It will take at least three months to close. The acquisition will cost the bank around $1.5 billion, but Arch will be reimbursed for its expenses. The transaction is subject to various regulatory approvals. The merger is expected to close in the second half of 2021.
The deal will create a new mortgage insurance company headquartered in Bermuda. Both companies are publicly-traded Bermuda exempt companies and are expected to have $15 billion in capital at the end of 2020. They both provide insurance and reinsurance globally. The value of the combined company will be determined on a proforma 31 December 2020 basis. The transaction is subject to antitrust approvals. This transaction will be completed in 2H21.
The deal will combine two mortgage insurance providers in Australia. The deal is expected to be completed later this year. The deal will require antitrust approvals by APRA and the Australian Competition and Consumer Commission. After that, the merger will complete. Once the deal is complete, the companies will be merged. If the merger is successful, the merger could be worth up to $7 billion. The acquisition will also provide additional capacity for the Australian lending market.