CUNA Mutual Group and the Arizona Department of Insurance (DOI), receiver for PMI Mortgage Insurance Co (PMI), have inked an agreement to support the future development of CMG Mortgage Insurance Company (CMG MI).
Based on terms of the deal, Arch Capital Group, through its US subsidiaries (Arch US MI), will purchase all outstanding equity interests in CMG MI.
Further, the acquirer will ink distribution and reinsurance agreements in order to continue offering CMG MI’s private mortgage insurance offerings to credit unions.
It will enable the company to enter the US mortgage insurance market and enhance existing mortgage insurance and reinsurance capabilities.
Pending regulatory receipt from Arizona receivership court and other regulatory agencies as well as satisfying customary closing conditions, the acquisition is likely to close within one year.
CUNA Mutual Group mortgage insurance sales staff will continue to serve credit union customers on behalf of CMG MI, as per the proposed distribution arrangement.
CMG MI has been licensed in all 50 states and operates as a corporate joint venture between CMFG Life Insurance Company and PMI Mortgage Insurance Co.
Bermuda-based Arch Capital Group had nearly $5.75bn in capital at 30 September 2012, and delivers insurance and reinsurance services through its wholly owned subsidiaries.