Arch Capital Subsidiary Acquires Old Republic's RMIC, Enhancing Mortgage Insurance Reach

Arch Capital Group Ltd. ACGL subsidiary Arch U.S. MI Holdings has agreed to acquire RMIC Companies, Inc., a subsidiary of Old Republic International Corporation ORI, with the expected consideration to be ~$140 million.

In this transaction, Arch U.S. MI Holdings will acquire all of the capital stock of Old Republic's wholly-owned subsidiary RMIC and its wholly-owned subsidiaries that comprise Old Republic's run-off mortgage insurance business. ORI placed this business in run-off in 2011.

Once the transaction is closed, RMIC's $1 billion risk in force (RIF) portfolio will be integrated into Arch MI's existing U.S. primary mortgage portfolio, which had an RIF of $75.9 billion on Sept. 30, 2023.

"Our ability to leverage the scale of our platform to gain significant expense and capital synergies makes this an attractive financial transaction for Arch," commented David Gansberg, CEO of Arch's Global Mortgage Group.

Expected to finalize in the first half of 2024, the completion of this transaction is contingent upon the acquisition securing regulatory approval.

Price Action: ACGL shares traded higher by 0.78% at $86.62 and ORI up by 0.11% at $27.97 on the last check Monday.