MADISON, Wis. — Although CUNA Mutual Group has spun off its CMG Mortgage Insurance Company to Arch Mortgage Insurance Company, the sales team that will be distributing the mortgage insurance product to credit unions will remain employees of CUNA Mutual Group under the acquisition deal that was finalized Thursday.
The acquisition of CMG Mortgage Insurance Company from CUNA Mutual Group and PMI Mortgage Insurance Co. by Arch U.S. MI Holdings, Inc., the U.S.-based subsidiary of Arch Capital Group Ltd. That is doing business as Arch Mortgage Insurance Company (Arch MI), was first announced in 2013. When Fannie Mae and Freddie Mac gave the deal their blessing, Arch MI was also cleared to expand its charter to conduct non-credit union mortgage insurance business, as well.
CUNA Mutual Group said the CMG MI sales team will remain CUNA Mutual Group employees. Credit union systems interfaces and key support personnel, including underwriters, will not change, CUNA Mutual added, emphasizing the acquisition does not impact any credit unions with existing CMG MI policies.
The transaction also provides that a CUNA Mutual Group affiliate will reinsure a portion of the post-closing mortgage insurance business issued by CMG MI to credit unions, under the terms of a quota share reinsurance agreement, CUNA Mutual said.
"This relationship with Arch MI allows CUNA Mutual Group to better focus on its strengths, while maintaining our commitment to delivering superior product solutions to the credit unions and members we serve," said Robert Trunzo, CUNA Mutual Group's president and CEO.
Constantine (Dinos) Iordanou, chairman and chief executive officer of Arch Capital Group Ltd. said, "We are extremely pleased to complete this transaction and expand our existing mortgage insurance and reinsurance capabilities, which will enable our company to provide a strong and diversified source of private capital to the U.S. mortgage insurance market."
