Restructuring: Arch Capital Buys CMG and PMI for $300M
PMI, which owns part of CMG, has been in rehabilitation since 2011
Arch Capital Group Ltd. (Nasdaq: ACGL) will acquire CMG Mortgage Insurance Co., and assets of PMI Mortgage Insurance Co. for about $300 million.
Arch will make the purchase through its subsidiary, Arch U.S. MI, which will buy CMG from current owners PMI Mortgage Insurance Co. and CMFG Life Insurance Co.
PMI has been in rehabilitation under the Arizona Department of Insurance since 2011. Arch will take over its mortgage-insurance operating platform.
The deal will provide Arch with nationwide mortgage insurance licenses. The deal is subject to approval from the Arizona receivership court, as well as Fannie Mae and Freddie Mac.
Arch is a Bermuda-based insurance and reinsurance company.
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