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Friday, February 8, 2013

Arch Capital to enter U.S. mortgage insurance market, (NASDAQ: ACGL)

Reinsurer Arch Capital Group Ltd said its U.S. subsidiary Arch U.S. MI will acquire CMG Mortgage Insurance Co and the operating platform of PMI Mortgage Insurance Co for about $300 million to enter the U.S. mortgage insurance market. Additional amounts may be paid based on the actual results of CMG MI's pre-closing portfolio over an agreed upon period, Bermuda-based Arch Capital said in a statement.The transaction is expected to close within 12 months, subject to regulatory approvals, Arch Capital said.Shares of Arch Capital closed at $47.51 on Thursday on the Nasdaq.

Arch Capital Group Ltd. (ACGL) writes insurance and reinsurance on a worldwide basis. Shares of ACGL remained unchanged at $47.51. In the past year, the shares have traded as low as $36.08 and as high as $47.59. On average, 666323 shares of ACGL exchange hands on a given day and today's volume is recorded at 0.