Old Republic President and CEO Craig Smiddy commented on the divestment, “We are pleased to announce this definitive exit from the mortgage insurance business. Since placing this business in run-off in 2011, we have been able to preserve significant value for shareholders.”
Read more: Mortgage market blues – how to weather the storm
Smiddy also mentioned the favorable development of run-off reserves over the past five years, resulting in dividends exceeding $398 million, including the expected fourth-quarter amount.
Upon finalization, RMIC’s $1 billion risk in force (RIF) portfolio will become part of Arch MI’s US primary mortgage portfolio, which reported a RIF of $75.9 billion as of Sept. 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,” David Gansberg, CEO of Arch’s Global Mortgage Group, said in a statement. “Our teams are experienced and proficient at acquiring and integrating mortgage insurance companies, which we expect will help us quickly maximize the value of this acquisition.”
Source: mpamag.com