Arch Capital Group reports that it has completed its previously announced acquisition of United Guaranty Corp. (UGC) from American International Group Inc.
The acquisition 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, Arch officials say in a press release.
“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,” the release states. “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 Arch Capital, says the merger “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,” Iordanou adds.