A subsidiary of Bermudian-based Arch Capital Group Ltd has obtained over $203 million of indemnity reinsurance on a pool representing approximately $30.5 billion of mortgages from Bellemeade Re 2024-1 Ltd, a special purpose reinsurer.

Arch Mortgage Insurance Company said the coverage was obtained by issuing approximately $163 million in bonds and $41 million in direct reinsurance.

This transaction largely covers a portfolio of mortgage insurance policies issued by Arch MI and affiliates primarily from September 2023 through July 2024 and closed on August 15.

The company said this mortgage insurance-linked note transaction is Arch’s first of 2024.

Since the Bellemeade programme began in 2015, Arch has completed 21 transactions that have secured over $9.7 billion in indemnity reinsurance.

Bellemeade Re 2024-1 Ltd is funding its reinsurance obligations through the issuance of five classes of amortising notes with ten-year legal final maturities.

“Bellemeade continues to be a key element of Arch’s risk and capital management strategy. Despite current market volatility, we are pleased with this execution,” said Jennifer Weiss, vice-president of Structured Capital and Reinsurance for Arch MI.