Arch Capital Group Ltd. Announces Closing of Acquisition of United Guaranty Corporation
January 03 2017 - 7:00AM
Business Wire
Arch Capital Group Ltd. [Nasdaq:ACGL] today announced that it
completed its previously announced acquisition of United Guaranty
Corporation (UGC) from American International Group, Inc. (AIG) at
year-end 2016.
The acquisition of UGC expands the scale of Arch’s existing
mortgage insurance businesses by combining UGC’s position as the
market leader in the U.S. private mortgage insurance industry with
Arch’s financial strength and history of innovation, further
diversifying our business profile and customer base. The expansion
of our mortgage insurance business complements our strengths in the
specialty insurance and reinsurance businesses, which continue to
be central to our global operations. Diversity across segments and
product lines remains fundamental to our corporate strategy and
allows us to deploy our capital to those areas offering the best
opportunities at any given time.
Constantine (Dinos) Iordanou, Chairman and CEO of ACGL,
commented, “We are extremely pleased to complete this transaction,
which will enable our company to continue to provide a strong and
diversified source of private capital to the U.S. mortgage
insurance and housing finance markets. We believe the impressive
operational, managerial and risk management expertise of Arch,
together with the talented professionals joining us from UGC, will
enable us to provide our clients with the best products and
services available anywhere in the industry.”
Marc Grandisson, President and COO of ACGL, added, “We are
gratified that Arch U.S. MI will be led by experienced
professionals in Andrew Rippert and David Gansberg and welcome our
new colleagues from UGC. Over the past several months, teams at
Arch and UGC have been working together to ensure a successful
integration of our combined operations and a seamless transition
for our clients. Our combined mortgage group looks forward to
further strengthening its leadership position in the development of
innovative products and services to meet the ever evolving needs of
our clients and the housing finance system.”
Mr. Rippert, Chief Executive Officer, Global Mortgage Group, is
responsible for ACGL’s global mortgage insurance and reinsurance
operations. Mr. Gansberg, President and CEO of Arch U.S. MI
Holdings, reports to Mr. Rippert and is responsible for ACGL’s U.S.
primary mortgage insurance operations, which will be headquartered
in Greensboro, North Carolina, with significant operations in
California.
About Arch Capital Group Ltd.
Arch Capital Group Ltd., a Bermuda-based company with
approximately $8.24 billion in capital at September 30, 2016,
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.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170103005570/en/
Arch Capital Group Ltd.Mark D. Lyons, 441-278-9250
Arch Capital (NASDAQ:ACGL)
Historical Stock Chart
From Aug 2024 to Sep 2024
Arch Capital (NASDAQ:ACGL)
Historical Stock Chart
From Sep 2023 to Sep 2024