Reinsurer Arch Capital Group Ltd said it would acquire CMG Mortgage Insurance Co and the operating platform of PMI Mortgage Insurance Co for about $300 million to enter a resurgent U.S. mortgage insurance market.The mortgage insurance industry, which has booked huge losses after the housing bubble burst and foreclosures soared, is set to rebound, following a recovery in the U.S. housing market and a shakeout in the industry.Reinsurers are sitting on a pile of cash and the business of insuring mortgages is emerging as an attractive option to a number of them, given its high profits."The new operation will complement our existing European Union-based mortgage insurance and global reinsurance operations, providing us with a platform to participate in mortgage insurance and reinsurance business on a worldwide basis," Arch Capital Chief Executive Constantine Iordanou said in a statement.
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.
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