ARCH COMPLETES ACQUISITION OF MORTGAGE INSURER UGC

Arch Capital has completed the acquisition of United Guaranty Corporation, a deal which will see it become the largest player in the US private mortgage insurance sector. The $3.4bn deal was announced in August last year, with Arch acquiring UGC from AIG as part of the latter’s strategy to simplify its business through the disposal of non-core operations. The deal has substantially increased Arch’s presence in the mortgage insurance (MI) market, where the group already operated through platforms in the US, Europe and Bermuda. The transaction has also made mortgage insurance Arch’s largest business line from a premium and capital perspective.