Arch Mortgage Insurance Company ("Arch MI") has obtained $577,267,000 of indemnity reinsurance on a pool representing $7.2 billion of mortgages from Bellemeade Re 2019-4 Ltd., a special purpose reinsurer. The reinsurance is for a portfolio of MI policies linked to 113,180 loans issued by Arch MI and affiliates in 2019.
In a statement, Arch MI explained that this insurance-linked note ("ILN") transaction was Arch's fourth of 2019, marking the most ILN transactions ever conducted in a single year by a mortgage insurer. In total, Arch has issued 10 Bellemeade transactions, which have provided aggregate reinsurance coverage of over $4.7 billion.
Bellemeade Re 2019-4 Ltd. is funding its reinsurance obligations through the issuance of five classes of amortizing notes with 10-year legal final maturities.
The notes consist of the following five classes:
- $144,317,000 class M-1A notes with a coupon equal to one-month LIBOR plus 140 basis points.
- $144,317,000 class M-1B notes with a coupon equal to one-month LIBOR plus 200 basis points.
- $126,277,000 class M-1C notes with a coupon equal to one-month LIBOR plus 250 basis points.
- $144,317,000 class M-2 notes with a coupon equal to one-month LIBOR plus 285 basis points.
- $18,309,039 class B-1 notes with a coupon equal to one-month LIBOR plus 385 basis points.
"This transaction represents Arch's continued commitment to actively managing the risk in our U.S. mortgage insurance business," said Jim Bennison, executive vice president for alternative markets for Arch Capital Group (U.S.) Inc. "Our efforts are supported by a wide range of private market investors that are attracted to Arch's best in class pricing, asset selection, and servicing of our mortgage insurance portfolio."
Learn more: archmi.com.
Victoria Spears
Victoria Prussen Spears is senior vice president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. A graduate of Sarah Lawrence College and Brooklyn Law School, Ms. Spears was an attorney at a leading New York City law firm before joining Meyerowitz Communications. She may be contacted at [email protected].