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 Group.
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.