Arch Capital Closes Acquisition of Westpac Lenders Mortgage Insurance
Bermuda-based Arch Capital Group Ltd. has completed its acquisition of Australia’s Westpac Lenders Mortgage Insurance Limited (WLMI),
With the transaction complete, Arch said it will combine 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. This acquisition augments Arch MI’s position as a 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.
Westpac, Australia’s oldest bank and one its largest, has been withdrawing from non-core operations. Last month, Westpac announced it had agreed to sell its life insurance business to Japan’s Dai-ichi Life Holdings. Last December, Allianz announced it had agreed to purchase the general insurance business of Westpac Banking Corp., the Australian banking group for a deal worth A$725 million (US$534 million).
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.