Bermuda-based Arch Capital Group Ltd will is to enter the US mortgage insurance market after its US-based subsidiaries (Arch US MI) completed the acquisition of CMG Mortgage Insurance Company (CMG MI) and the mortgage insurance operating platform of PMI Mortgage Insurance Co (PMI).

As part of the deal, CMG MI, which will be renamed Arch Mortgage Insurance Company, has obtained approval as an eligible mortgage insurer from Fannie Mae and Freddie Mac, subject to maintaining certain ongoing requirements.

The deal enables Arch US MI to enter the US mortgage insurance marketplace immediately and allows the company to serve all lenders nationwide and provides the company with mortgage insurance licences across the US and a comprehensive mortgage insurance operating platform.

In addition, Arch US MI entered into a distribution agreement with CMFG Life Insurance Company (CUNA Mutual) and a reinsurance agreement with an affiliate of CUNA Mutual. These arrangements with CUNA Mutual will provide CMG MI’s existing customer base with a seamless transition and also will enable Arch US MI to gain immediate access to the credit union marketplace.

Marc Grandisson, chairman and CEO of Arch Worldwide Reinsurance Group, is responsible for ACGL’s global mortgage insurance and reinsurance operations. Arch US MI is led by president and CEO David Gansberg. Mr Gansberg joined the Arch group in 2001 and has 20 years of experience in various actuarial, underwriting and senior management positions in the insurance industry.

Mr Gansberg will report to Andrew Rippert, who joined Arch in 2010 and has 16 years of experience in the mortgage insurance industry. Mr. Rippert will be CEO of Arch Worldwide Mortgage Insurance and Reinsurance Group and currently serves as president and CEO of Arch Mortgage Insurance Ltd based in Ireland. The current experienced senior management team and staff of PMI and CMG MI also joined Arch US MI in connection with the transaction. The CMG MI sales team will remain CUNA Mutual employees dedicated to serving their credit union customers.