other material
confidence high
sentiment negative
materiality 0.75
Arch Capital subsidiaries terminate $1.7B Bellemeade mortgage reinsurance agreements due to S&P criteria change
ARCH CAPITAL GROUP LTD.
- Arch Mortgage and United Guaranty terminated eight Bellemeade excess-of-loss reinsurance agreements, effective Dec 27, 2023.
- Terminated agreements represent $1.7B limit of total $3.2B coverage from all mortgage insurance-linked note vehicles.
- Termination driven by S&P Insurer Risk-Based Capital Adequacy criteria change effective Nov 15, 2023 reducing capital relief.
- Remaining Bellemeade reinsurance agreements unaffected and continue under their terms.