Arch Capital to enter U.S. mortgage insurance market

Fri Feb 8, 2013 6:44am EST

Feb 8 (Reuters) - 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.