U.S. Markets closed

Arch Mortgage Insurance Secures $368 Million of Indemnity Reinsurance from a Rated Insurance-Linked Note Transaction

HAMILTON, Bermuda--(BUSINESS WIRE)--

Arch Capital Group Ltd. [NASDAQ: ACGL] announced today that its mortgage insurance (MI) business obtained $368 million of indemnity reinsurance from Bellemeade Re 2017-1 Ltd., a special purpose insurer. The reinsurance is for a portfolio of MI policies issued by Arch MI from January through June of this year (2017). This transaction marks the first time that Arch’s Mortgage Group has accessed the capital markets for a risk transfer involving a mortgage insurance portfolio, as well as the first time any mortgage insurance-linked note in the industry has been rated. The senior M-1 class note has received a rating of BBB from Morningstar.

Bellemeade Re 2017-1 Ltd. is funding its reinsurance obligations through the issuance of three classes of amortizing notes with 10-year legal final maturities. This insurance-linked securities (ILS) transaction provides Arch with fully collateralized coverage from Bellemeade Re 2017-1 Ltd. for potential losses on a portion of its 2017 MI portfolio.

Andrew Rippert, CEO of Arch’s Global Mortgage Group said, “Transactions like this provide us with valuable feedback from third parties on the risk and capital management aspects of our business.” Mr. Rippert added, “This ILS transaction demonstrates our commitment to building a sustainable mortgage guaranty business model that can last through multiple housing cycles and positions Arch as the industry leader in proactively managing residential mortgage credit risk.”

Arch Capital Group Ltd., a Bermuda-based company with approximately $11.04 billion in capital at September 30, 2017, provides insurance, reinsurance and mortgage insurance on a worldwide basis through its wholly owned subsidiaries.

Cautionary Note Regarding Forward-Looking Statements

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward−looking statements. This release or any other written or oral statements made by or on behalf of Arch Capital Group Ltd. and its subsidiaries may include forward−looking statements, which reflect our current views with respect to future events and financial performance. All statements other than statements of historical fact included in or incorporated by reference in this release are forward−looking statements.

Forward−looking statements can generally be identified by the use of forward−looking terminology such as "may," "will," "expect," "intend," "estimate," "anticipate," "believe" or "continue" or their negative or variations or similar terminology. Forward−looking statements involve our current assessment of risks and uncertainties. Actual events and results may differ materially from those expressed or implied in these statements. A non-exclusive list of the important factors that could cause actual results to differ materially from those in such forward-looking statements includes the following: adverse general economic and market conditions; increased competition; pricing and policy term trends; fluctuations in the actions of rating agencies and our ability to maintain and improve our ratings; investment performance; the loss of key personnel; the adequacy of our loss reserves, severity and/or frequency of losses, greater than expected loss ratios and adverse development on claim and/or claim expense liabilities; greater frequency or severity of unpredictable natural and man-made catastrophic events; the impact of acts of terrorism and acts of war; changes in regulations and/or tax laws in the United States or elsewhere; our ability to successfully integrate, establish and maintain operating procedures as well as integrate the businesses we have acquired or may acquire into the existing operations; changes in accounting principles or policies; material differences between actual and expected assessments for guaranty funds and mandatory pooling arrangements; availability and cost to us of reinsurance to manage our gross and net exposures; the failure of others to meet their obligations to us; and other factors identified in our filings with the U.S. Securities and Exchange Commission.

The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with other cautionary statements that are included herein or elsewhere. All subsequent written and oral forward−looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these cautionary statements. We undertake no obligation to publicly update or revise any forward−looking statement, whether as a result of new information, future events or otherwise.

###

View source version on businesswire.com: http://www.businesswire.com/news/home/20171025006357/en/

  • Buffett says 'terrible mistake' for long-term investors to be in bonds
    Business
    Reuters

    Buffett says 'terrible mistake' for long-term investors to be in bonds

    Billionaire Warren Buffett prodded ordinary investors on Saturday to stay invested in U.S. stocks, ignoring price swings, guidance from people with fancy credentials and the temptation to load up on bonds. Buffett said it is a "terrible mistake" for investors with long-term horizons - among them, pension funds, college and endowments and savings-minded individuals - to measure their investment "risk" by their portfolio's ratio of bonds to stocks. The long-time bull on U.S. companies and the economy issued his latest letter to Berkshire Hathaway Inc shareholders on Saturday.

  • Russian Olympian Who Wore an 'I Don't Do Doping' Slogan Shirt Just Failed Her Drug Test
    World
    Time

    Russian Olympian Who Wore an 'I Don't Do Doping' Slogan Shirt Just Failed Her Drug Test

    Nadezhda Sergeeva, pilot of the two-woman bobsled team representing the Olympic Athletes from Russia, proudly proclaimed her anti-doping stance when she appeared in a YouTube video wearing a sweatshirt with the slogan “I don’t do doping” stamped brightly across the front. The federation says that the bobsledder does not have a prescription for the drug.

  • Here's the Average Length of Retirement. Will Your Money Last That Long?
    Lifestyle
    Motley Fool

    Here's the Average Length of Retirement. Will Your Money Last That Long?

    If you're financially savvy, you're diligently saving and investing for retirement. You're probably a little uneasy about it all, though, not knowing exactly how much you need and, therefore, how on- or off-track you are. Part of the problem is that you

  • Latest Mueller indictment spells trouble for bankers, too
    Finance
    Associated Press

    Latest Mueller indictment spells trouble for bankers, too

    Recently filed federal charges against President Donald Trump's ex-campaign chairman Paul Manafort could also pose legal and regulatory risks for the banks that loaned him millions of dollars against his New York real estate in recent years. The most serious exposure may be for a Rhode Island-based bank that employed a "conspirator" in Manafort's scheme to obtain a loan he couldn't afford, according to the 32-count new indictment unsealed this week. Dubbed "Lender B" in court papers, Citizens Bank not only lent Manafort $3.4 million based off of fraudulent documents but, in another case, appeared to help Manafort avoid being caught by sending back a crudely falsified financial statement that had been sent to them from a Manafort associate, according to federal prosecutors.

  • Adam Schiff's Memo Has Been Released. Here's What It Says
    Politics
    Time

    Adam Schiff's Memo Has Been Released. Here's What It Says

    Democrats on the the House Intelligence Committee on Saturday released a memo prepared as a counter to the one overseen by the committee’s chairman Devin Nunes that was publicized earlier this month. Overseen by Rep. Adam Schiff, the ranking Democrat on the committee, the memo from the Democrats attempts to contextualize the Nunes memo, which argued that the FBI displayed bias in obtaining a FISA warrant for former Trump campaign adviser Carter Page. That memo alleges that the FBI failed to disclose Christopher Steele, who compiled the notorious Steele dossier, was working for Fusion GPS or the firm’s founder Glenn Simpson, and that Deputy FBI Director Andrew McCabe — who is stepping down —said the FBI would not have sought a warrant without the dossier.

  • Buffett says Berkshire can handle $400 billion mega-catastrophe
    Finance
    Reuters

    Buffett says Berkshire can handle $400 billion mega-catastrophe

    Warren Buffett says: Bring it on. In his annual letter to shareholders of Berkshire Hathaway Inc , Buffett said "no company comes close" to his conglomerate in its ability to financially withstand even a mega-catastrophe that causes $400 billion of insurance losses. Buffett said the odds of such a catastrophe in any year is just 2 percent, but that Berkshire would lose only about $12 billion, a sum more than offset by annual profits from its non-insurance businesses.

  • Lisa Marie Presley Sues Manager for 'Reckless Mismanagement' of $100 Million Elvis Fortune
    Celebrity
    People

    Lisa Marie Presley Sues Manager for 'Reckless Mismanagement' of $100 Million Elvis Fortune

    Lisa Marie Presley and her financial manager Barry Siegel are in a legal battle after it was revealed that she’s $16.7 million in debt — Presley going after his “reckless and negligent mismanagement” of her inherited estate and Siegel claiming she “squandered” her own fortune due to her “excessive spending” habits. Much of that, she alleges, began in 2005 when Siegel sold 85 percent of her interest in Elvis Presley Enterprises in order to align himself with a famous investor tied to the holding company of American Idol. By 2016, Presley claims Siegel had liquidated almost all of the trust’s remaining principles — especially after the Idol holding company went bankrupt.

  • Here's How Much Bitcoin Elon Musk Owns
    Business
    Fortune

    Here's How Much Bitcoin Elon Musk Owns

    Musk revealed this week on Twitter how much Bitcoin he owns—and it’s not much. Musk shed light on his bitcoin ownership in response to a question from a Twitter follower asking why there were so many bots impersonating him to push cryptocurrency scams. “What’s with all the ETH spam?” the Twitter user asked, referring to the cryptocurrency Ethereum.

  • Democrats distance themselves from Nancy Pelosi
    Politics
    Fox Business Videos

    Democrats distance themselves from Nancy Pelosi

    Former President George W. Bush Deputy Assistant Brad Blakeman discusses why Democrats are starting to disengage from Senate Minority Leader Nancy Pelosi.

  • Flu Killed 13 Children Last Week But May Be Winding Down, CDC Says
    Health
    Time

    Flu Killed 13 Children Last Week But May Be Winding Down, CDC Says

    This year’s sweeping flu season may be starting to wind down, but activity is still high throughout the country, according to the CDC’s latest update. With weeks of flu season potentially still to go, that number is likely to climb higher. Illness and hospitalization rates also remain high, with most of the continental U.S. reporting widespread flu activity.

  • In 1961 a Plane Crash Killed the Entire U.S. Figure Skating Team. Here's How the Tragic Legacy Lives On
    News
    Time

    In 1961 a Plane Crash Killed the Entire U.S. Figure Skating Team. Here's How the Tragic Legacy Lives On

    Fifty-seven years ago this month, the U.S. figure skating team was devastated by a plane crash. The star-spangled athletes were on their way to compete at the 1961 World Figure Skating Championships in Prague, where they were expected to score medals and launch into preparations for the 1964 Olympics. The tragedy was mourned across the nation and shattered the figure skating world, which the U.S. had dominated for over a decade.

  • These 3 Dividend Stocks Offer Shares at a Discount
    Business
    Motley Fool

    These 3 Dividend Stocks Offer Shares at a Discount

    Dividend stocks can help investors benefit from the power of compounding. By reinvesting dividend payments to purchase additional shares of stock, you'll see the amount of income you receive grow over time, building on itself and creating a positive-feedback loop that can eventually produce huge amounts of income. In particular, Aqua America (NYSE: WTR), Franco-Nevada (NYSE: FNV), and Student Transportation (NASDAQ: STB) are three stocks that you can buy more cheaply through dividend reinvestment than you'll get on the open market.

  • These companies are cutting ties with the NRA
    Business
    Yahoo Finance

    These companies are cutting ties with the NRA

    In the wake of the mass shooting in a Florida high school last week, companies are dropping their partnerships with the National Rifle Association (NRA), which touts 5 million members. According to a list compiled by ThinkProgress, an advocacy organization, there are at least 22 corporations, including car-rental companies and financial institutions that have been offering discounts to NRA members. –First National Bank of Omaha: The largest privately held bank announced it will stop issuing the NRA Visa Card due to “customer feedback” on Thursday.

  • US asks judge to approve seizure of Pharma Bro's assets
    Finance
    Associated Press

    US asks judge to approve seizure of Pharma Bro's assets

    NEW YORK (AP) — "Pharma Bro" Martin Shkreli appeared in court Friday for the first time since a judge locked him up for his online antics, and the brash former pharmaceutical CEO had a new look since his bail was revoked in September: a scruffy beard that made his appearance less boyish. "Under the circumstances, I think he's doing remarkably well," his attorney, Ben Brafman, told reporters when asked about his client's stint in a fortress-like federal jail in Brooklyn. Shkreli was convicted on charges he cheated investors in two failed hedge funds.

  • Mnuchin Says Ivanka Trump Has Been Briefed on North Korea Sanctions
    Politics
    Bloomberg Video

    Mnuchin Says Ivanka Trump Has Been Briefed on North Korea Sanctions

    U.S. Treasury Secretary Steven Mnuchin speaks at a news conference in Washington about the Trump administration's new sanctions against North Korea. PRESIDENT TRUMP'S DAUGHTER HAS BEEN BRIEFED AND SHE HAD DINNER WITH PRESIDENT MOON , THEY HAVE A PRIVATE DISCUSSION IN ADVANCE OF THIS AND THIS HAS BEEN AN INTERAGENCY PROCESS.

  • Michael B. Jordan Had a Hilarious Response to an Internet Troll's Judgmental Opinion
    Celebrity
    Time

    Michael B. Jordan Had a Hilarious Response to an Internet Troll's Judgmental Opinion

    Michael B. Jordan’s charismatic turn as villain Erik Killmonger in Black Panther has commanded the collective attention of the Internet, some of who have taken it upon themselves to do extensive research into how Jordan lives his life off-camera, which has prompted a response from the actor himself. In an interview last year with Vogue, Jordan revealed that he shares a home with his parents and that he’d love to visit Tokyo, Japan because he loves anime, two facts that a Twitter user slyly pointed out might not be as endearing if they hadn’t come from the charming Fruitvale Station actor. As might be expected, the tweet went viral, catching the attention of Jordan himself, who had a pithy clap back to the tweet of his own.

  • No Amazon Worries for FedEx
    Business
    barrons.com

    No Amazon Worries for FedEx

    Shares of FedEx (FDX) rose 2.77%, to $252.22, on Friday, thanks in part to an upgrade from Bernstein's David Vernon and his team. Vernon boosted his rating to Outperform and his price target to $290, writing that the shares are attractively valued and offer mid-teens earnings- per-share growth marking the "highest rate of return in company history," thanks to a strengthening global economy, rising interest rates, and strong business-to-consumer demand. Lower corporate taxes also figure into his thesis. It's the business-to-consumer part that may be most eye-catching for investors, as it's impossible to talk about shipping these days without talking about Amazon.com (AMZN). Vernon writes that

  • President Trump Still Hasn't Forgiven John McCain for Killing Obamacare Repeal
    Politics
    Time

    President Trump Still Hasn't Forgiven John McCain for Killing Obamacare Repeal

    President Donald Trump has again blasted Sen. John McCain for voting against the repeal and replacement of the Affordable Care Act last summer — but did not once call him by name. “We’re having tremendous plans coming out now, healthcare plans, at a fraction of the cost, that are much better than Obamacare,” Trump said Friday at the Conservative Political Action Conference. “Remember — one person walked into a room when he was supposed to go this way,” Trump added, giving a thumbs up sign, “and he walked in and went this way [thumbs down] and everyone said, ‘What happened?

  • Citigroup to refund $335 million of credit card interest charges
    Business
    Reuters

    Citigroup to refund $335 million of credit card interest charges

    Citigroup Inc (C.N) said on Friday that it had failed to properly reduce interest charges on some 1.75 million credit card accounts since 2011, prompting a $335 million (239.65 million pounds) refund to customers later this year. The refund, which will average $190 per account, stems from the bank's discovery that it had not used a proper method for reducing interest charges for cardholders who resumed timely payments after having had to pay penalty rates for lapses. The errors amounted to about 10 percent of the interest reductions cardholders were due, the bank said.

  • Why Nvidia (NVDA) Stock Is the Cheapest It's Been in Nearly a Year
    Finance
    Zacks

    Why Nvidia (NVDA) Stock Is the Cheapest It's Been in Nearly a Year

    It is no secret that Nvidia NVDA is one of Wall Street’s most popular stocks. The graphics chip maker is a dominant force in the global gaming industry, and its tireless investments in self-driving cars, machine learning, and artificial intelligence all but guarantee the company a spot among the tech industry’s leaders for years to come. Nvidia’s leadership and innovation have also led to a massive surge in the company’s stock.

  • GE says it may face U.S. action over subprime mortgage operations
    Business
    Reuters

    GE says it may face U.S. action over subprime mortgage operations

    General Electric Co (GE.N) faces potential action by the U.S. Justice Department over allegations that its GE Capital unit and now defunct WMC Mortgage Corp unit violated U.S. law in connection with subprime mortgages, according to a regulatory filing on Friday. GE said the department "is likely to assert" violation of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) "in connection with WMC's origination and sale of subprime mortgage loans in 2006 and 2007," the filing said. "WMC and GE Capital will explore whether an acceptable settlement of this matter can be reached.

  • NYSE Top Dividend Paying Stocks
    Business
    Simply Wall St.

    NYSE Top Dividend Paying Stocks

    Williams Companies is one of our top dividend-paying companies that can help boost the investment income in your portfolio. These stocks are a safe way to create wealth as their stable and constant yields generally hedge against economic uncertainty and

  • General Electric Cuts $2.4 Billion Off S&P-Worst Pension Deficit
    Finance
    Bloomberg

    General Electric Cuts $2.4 Billion Off S&P-Worst Pension Deficit

    General Electric Co. trimmed its pension deficit by $2.4 billion as the manufacturer tackles the worst shortfall in corporate America. The company closed 2017 with $100.3 billion in obligations across its pension plans and $71.6 billion in assets. Pension funding has become a central issue for GE stakeholders concerned about how the beleaguered company will meet its obligations while dealing with severe cash-flow and earnings challenges.

  • In Your 60s? 3 Stocks You Should Consider Buying
    Business
    Motley Fool

    In Your 60s? 3 Stocks You Should Consider Buying

    OK, those of us in our 60s know this already, but I'm going to say it anyway: We are not old. The Pew Research Center conducted a study of aging and found that the definition of old age depends on who you ask. Well, I admit that how we feel about aging might not matter much in investing, but what does matter is longevity.

  • Retiring at 62 vs. 70: Pros and Cons
    Lifestyle
    Motley Fool

    Retiring at 62 vs. 70: Pros and Cons

    When most people think of retirement planning, they think about how much money they need to save. Social Security benefits play a major role in deciding your retirement age, though it's important to remember that claiming benefits and actually retiring don't always go hand in hand. The earliest you can claim Social Security benefits is age 62, but you'll receive a cut in benefits for every month you claim before your full retirement age (FRA), which is between 65 and 67, depending on the year you were born.