Arch Capital Puts Up $300M For Piece Of US Mortgage Market

Law360, New York (February 8, 2013, 3:59 PM EST) -- Bermuda-based reinsurer Arch Capital Group Ltd. will crack into a boomeranging U.S. mortgage market with the purchase of CMG Mortgage Insurance Co. and the operating platform of PMI Mortgage Insurance Co., the parties said Friday, in a deal reportedly worth $300 million.

In the deal, Arch Capital will lift ownership of the units from Wisconsin-based CUNA Mutual Holding Co. and the bankrupt PMI — which each own 50 percent of CMG — and operate under distribution and reinsurance agreements with CUNA.

The sale is subject to...
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