Agreement Supports CMG Mortgage Insurance Company's Growth And Continued
Arch Capital Group Ltd. to Acquire Entire Equity Interests in CMG MI; CUNA
Mutual Group Will Continue Serving Credit Unions Through Distribution and
SAN FRANCISCO, Feb. 8, 2013
SAN FRANCISCO, Feb. 8, 2013 /PRNewswire/ -- CUNA Mutual Group and the Arizona
Department of Insurance (DOI), Receiver for PMI Mortgage Insurance Co. (PMI),
announce an agreement today that will support the future growth of CMG
Mortgage Insurance Company (CMG MI). Under the business arrangement, Arch
Capital Group Ltd., through its U.S.-based subsidiaries (Arch U.S. MI), will
acquire all outstanding equity interests in CMG MI from PMI and CUNA Mutual
CMG MI is jointly owned by PMI and CUNA Mutual Group.
CUNA Mutual Group will enter into distribution and reinsurance agreements with
CMG MI, continuing CMG MI's private mortgage insurance offerings to credit
unions. The transactions with Arch U.S. MI are expected to close within 12
months, subject to approval of the Arizona receivership court, regulatory
approvals and satisfying other customary closing conditions.
"Our goals have been consistent from the start of this process: Protect
policyholders, deliver strong service to customers, and aim for a long-term,
viable solution for credit unions to have a private mortgage insurer that is
sensitive to, and understands their unique mission," said Jeff Post, President
& CEO, CUNA Mutual Group. "Through its significant financial resources and
risk management expertise, the agreement with Arch supports the stability and
future growth of CMG MI."
"We are confident that, following the purchase of CMG MI by Arch, CMG MI will
continue to provide the customer-focused products and services that have made
CMG MI the long-standing market leader in meeting the mortgage insurance needs
of credit unions."
Arch U.S. MI will purchase PMI's information technology platform and systems
and, as a result, CMG MI is expected to enjoy uninterrupted delivery of
technology support for its operations. With the proposed distribution
arrangement, CUNA Mutual Group mortgage insurance sales staff will continue to
serve credit union customers on behalf of CMG MI.
"In order to ensure uninterrupted access to a best-in-class origination and
servicing platform, talented underwriting and back-office support, we wanted
to find a buyer who had the capability and expertise to continue investing in
this unique business," said Sean Dilweg, CUNA Mutual Group vice president and
product executive for CMG MI. "We are confident Arch U.S. MI more than
fulfills all of these requirements."
"Similar to our successful partnerships with Liberty Mutual and State National
Companies, CUNA Mutual Group will use its marketplace knowledge and
distribution strengths, combined with Arch's financial strength and commitment
to mortgage insurance, to bring a stronger product solution to its credit
union customers. We look forward to a strong partnership with Arch."
Arch Capital Group Ltd. (ACGL) is a financially strong international insurer
and reinsurer. ACGL's principal operating insurance and reinsurance
subsidiaries have been issued the following financial strength ratings: "A+"
(Superior) by A.M. Best, "A+" (Strong) by Standard & Poor's, "A1" (Good) by
Moody's, and "A+" by Fitch Ratings.
For Arch Capital Group Ltd., the agreement allows the company to enter the
rapidly improving U.S. mortgage insurance marketplace and broaden its existing
mortgage insurance and reinsurance capabilities.
"We are very gratified that this exceptionally strong management team and
staff will be joining Arch. Together with our senior executives, they will
form an industry leading team with broad capabilities to meet our clients'
needs over the long term," said Marc Grandisson, Chairman and CEO of Arch
Worldwide Reinsurance Group. "We are also extremely pleased to partner with
CUNA Mutual Group on an ongoing basis. Their access to the credit union
marketplace and brand reputation should allow us to secure a strong flow of
credit union business."
ABOUT CMG MI
CMG Mortgage Insurance Company (CMG MI) is the nation's leading provider of
mortgage insurance products and services to America's Credit Unions. Licensed
in all 50 states, CMG MI operates as a Corporate joint venture between CMFG
Life Insurance Company and PMI Mortgage Insurance Co. The company provides
private mortgage guaranty insurance to protect credit unions against potential
losses in the event of borrower default.Based in San Francisco, CA, CMG MI
serves more than 800 credit unions nationwide and is the only mortgage insurer
that designs its services, including products, training, claims and loss
mitigation activities, expressly to meet credit unions' unique needs. For
more information, visit www.cmgmi.com.
About CUNA Mutual Group
CUNA Mutual Group insurance, retirement and investment products provide
financial security and protection to credit unions and their members
worldwide. With more than 75 years of true market commitment, CUNA Mutual
Group's vision is unwavering: To be a trusted business partner who delivers
service excellence through customer-focused products and market-driven
insight. More information is available on the company's website at
To learn more, follow @CUNAMutualGroup on Twitter, circle +CUNA Mutual Group
on Google+, or visit http://www.cunamutual.com
CUNA Mutual Group is the marketing name for CUNA Mutual Holding Company, a
mutual insurance holding company, its subsidiaries and affiliates. Life,
accident, health and annuity insurance products are issued by CMFG Life
Insurance Company. Property and casualty insurance products are issued by
CUMIS Insurance Society, Inc. Each insurer is solely responsible for the
financial obligations under the policies and contracts it issues. Corporate
headquarters are located in Madison, Wisconsin.
© 2012 CUNA Mutual Group, All Rights Reserved
About Arch Capital Group Ltd.
Arch Capital Group Ltd., a Bermuda-based company with approximately $5.75
billion in capital at September 30, 2012, provides insurance and reinsurance
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.
SOURCE CMG Mortgage
Contact: Joel Luebkeman, +1-415-284-2508, firstname.lastname@example.org; Jim
Buchheim, +1-608-665-6327, email@example.com
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