Arch Capital Group Ltd., based in Bermuda, has completed the acquisition of the Australian company Westpac Lenders Mortgage Insurance Limited (WLMI),
Upon completion of the transaction, Arch announced that it would merge WLMI operations with existing Australian LMI company, Arch LMI Pty Ltd.
As part of the acquisition, WLMI will maintain its existing risk and the new joint venture, operated by Arch, will become Westpac’s exclusive LMI provider for new mortgages within 10 years.
WLMI has been a LMI supplier to the Australian market since 2011. The acquisition strengthens Arch MI’s position as a globally diversified mortgage risk insurer. In addition to Australia, Arch has mortgage insurance and reinsurance operations in Bermuda, Europe and the United States.
Westpac, the oldest and one of the largest banks in Australia, is ditching non-core operations. Westpac announced last month that it had agreed to sell its life insurance business to Japan’s Dai-ichi Life Holdings. Allianz announced its agreement last December buy a general insurance business Australian banking group Westpac Banking Corp. on the deal for 725 million Australian dollars (534 million US dollars).
Arch Capital Group Ltd., a publicly listed Bermuda exempt company with a capital of approximately $ 16.7 billion as of June 30, 2021, provides insurance, reinsurance and mortgage insurance worldwide through its wholly owned subsidiaries.
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