JSMedia – Arch Capital has closed on its acquisition of Westpac Lenders Mortgage Insurance (LMI). The deal involves the combination of WLMI’s operations with its own Arch LMI Pay subsidiary. As a result, Arch will become the exclusive provider of LMI on new mortgage originations for at least 10 years. While this is a good move for both companies, there are risks associated with the transaction.
As the Australian market struggles with the global economic crisis, Australia has made a bold move by snatching up LMI. The Australian Prudential Regulation Authority (APRA)-authorized captive lender will continue to provide LMI to Westpac for a minimum of 10 years. In return, the reinsurance provider will maintain its existing LMI risks, which are estimated to be around $AUD 1.3 billion.
The deal is also positive for the country’s banking sector. The unemployment rate in February was down to 5.8%. Despite the slowdown, the ASX has been on a roller coaster between gains and losses since the start of the year. As of the time of writing, the S&P/ASX 200 index is down 18 points at 6,777. However, futures point to a fall of 12 points. This is a sign that the Australian market has not followed the lead of the US market, with the exception of the announcement that Westpac would sell its LMI business to Arch Capital Group.
Arch Capital To Snap Up Westpac Lenders Mortgage Insurance
The transaction is expected to close by the end of March or April 2019. The WLMI’s reinsurance treaties will be transferred to Arch LMI Pty Ltd. The WLMI business will remain in place and will be the exclusive LMI provider to Westpac for 10 years. The WLMI team will continue to provide LMI services to Westpac as it continues to grow its business.
Arch has been active in the Australian LMI market since 2011. The company has since been providing support for WLMI’s reinsurance treaties and was recently authorized as a lenders mortgage insurer by APRA in 2019. The deal will allow Arch to be the sole provider of LMI for the Westpac group in Australia. The transaction is expected to close at the end of March or April, and will be a good fit for both companies.
The deal will further strengthen Arch Capital’s position in Australia’s mortgage insurance market. WLMI will continue to provide mortgage insurance to Westpac. After acquiring the business, Arch Capital will focus on expanding its reach and increasing its share price. This will also ensure that WLMI is the best mortgage insurer in the world, while providing a better service to its customers. While the acquisition of WLMI is a good move for the industry, the deal could be a big risk for the company.
WLMI was acquired by Arch Capital Group. The company plans to use the proceeds from the sale to expand its mortgage insurance offerings. After the acquisition, Arch Capital will focus on expanding its geographic reach and on integrating WLMI’s other businesses. In the meantime, it will focus on its core business and on strengthening its brand image in Australia. The deal is a good step for the industry.
The transaction will be a major merger for both companies. The deal will give Arch Capital access to the Westpac Lenders’ mortgage insurance portfolio. The move will also increase the size of its insurance portfolio. It will also enhance the company’s global reach. The transaction will also help the company’s clients, as Arch Capital’s mortgage products will offer protection for more than just home loans.
The deal will increase Arch Capital’s international presence. The deal will create a global network of reinsurance and mortgage insurance. The combined companies will provide global reinsurance and mortgage insurance services. The combined companies will have a combined $15.8 billion in capital at the end of 2020. Upon completion of the deal, the transaction proceeds will be determined by book value at the end of 2021.