The global mortgage group of Arch Capital Group Ltd. has entered into a share purchase agreement with the Westpac Group to acquire Westpac Lenders Mortgage Insurance Limited, an Australian Prudential Regulation Authority authorized captive lenders mortgage insurance provider to Westpac.
As part of the agreement, WLMI will retain its existing risk in force and become Westpac’s exclusive provider of LMI on new mortgage originations for a period of 10 years. Upon completion of the transaction, Arch intends to combine the operations of WLMI and its existing Australian LMI company, Arch LMI Pty Ltd.
“Australia has been and continues to be an important market for our mortgage insurance business. This acquisition reinforces our commitment to both the market and our clients and enhances Arch’s position as a leading provider of LMI in Australia,” said David Gansberg, CEO, global mortgage for Arch Capital. “We look forward to continuing our long-standing partnership with Westpac by being their exclusive provider of LMI and will remain focused on providing innovative solutions and excellent service to clients across Australia.”
Credit Suisse acted as financial advisor, KPMG acted as tax advisor and Clyde & Co. acted as legal advisor to Arch in the transaction.