ARCH CLOSES ILS DEAL AND AUGMENTS IT WITH $93M IN DIRECT REINSURANCE

Bermudian re/insurer Arch Capital’s mortgage insurance unit has secured $616m in indemnity mortgage reinsurance with the completion of its $523m Bellemeade Re mortgage insurance-linked note transaction and the direct placement of an additional $93m of cover. Arch said the combined reinsurance package largely covers a $36bn portfolio of mortgage loans that Arch MI and its affiliates insured from December 2020 through March 2021. The mortgage insurance-linked note deal was Arch’s second of 2021 and marked the 16th Bellemeade Re transaction since the programme’s 2015 launch. The deal was also the second Bellemeade Re issuance using the Secured Overnight Financing Rate rather than the London Inter-Bank Offered Rate.