ARCH RETURNS TO CAPITAL MARKETS WITH 763M MORTGAGE ILS DEAL

Bermudian re/insurer Arch Capital Group is returning to the capital markets with its second mortgage insurance-linked securities deal of the year, the $363m Bellemeade Re 2020-2 Ltd offering, Artemis.bm has reported. Proceeds of the five-tranche transaction will collateralise excess-of-loss reinsurance agreements between Bellemeade Re and Arch Mortgage Insurance much like a catastrophe bond deal. The offering includes a $92m tranche of Class M-1A notes, a $77.6m tranche of Class M-1B notes, a $103.5m tranche of Class M-1C notes, a $71.9m tranche of Class M-2 notes and an $18m tranche of Class B-1 notes. The deal is designed to cover mortgage insurance risks across a book of 117,562 mortgages. It marks the 10th mortgage ILS deal by Arch Mortgage Insurance or its United Guaranty unit.