Arch Capital entry into PMI industry beating out NMI
Arch Capital bought CMG, a smaller PMI company with about $78 million in annual sales. In addition, Arch bought the remaining assets of PMI, who went bankrupt in November 2011.
Arch Capital essentially leap frog NMI, who announced that were approved to start selling new insurance in the PMI industry a few weeks ago. Arch expects to gain all the approvals to complete the transaction in 11 months.
Arch has a better chance to gain marketshare in 2014 than NMI. CMG had a 2% marketshare as of June 2012. NMI is essentially starting from zero. They attempted to buy some assets from PMI but, they were challenged by the Arizona regulatory for illegally obtaining proprietary information from PMI prior to It's bankruptcy.
strong negative for mtg and rdn, now there will be essent, nmi, and cmg with fresh capital, ugi has already been bailed out by aig, and gnw is getting fresh capital, mtg and rdn will be left out in the cold, struggling to get by for years.