Arnold & Porter LLP client PMI Mortgage Insurance Co. (in receivership) recently entered into definitive agreements with Arch Capital Group Ltd. for its U.S.-based subsidiaries, Arch U.S. MI, to acquire CMG Mortgage Insurance Company from PMI and CMFG Life Insurance Company. The agreements also involve the acquisition of PMI’s mortgage insurance information technology operating platform and related assets from PMI. The value of the consideration for these transactions are estimated to be approximately $300 million. Arch U.S. MI will also enter into a services agreement with PMI to provide for necessary services to administer the run-off of PMI’s legacy business at the direction of PMI. An affiliate of Arch U.S. MI will reinsure the run-off of in-force insurance on current, non-delinquent loans included in the primary mortgage insurance originated by PMI for book years 2009-2011.
An Arnold & Porter team from four of its domestic U.S. offices represented PMI in all aspects of the sale transactions, including corporate/M&A, tax, IT, real estate, bankruptcy, litigation, employment and employee benefits and professional responsibility/liability issues. The team was led by corporate partner Robert C. Azarow and included partners, Dipanwita Deb Amar, Michael L. Bernstein, Edward E. Bintz, David S. Berg, Bryce R. Giddens, Robert C. Hollander, Jeremy Kamras, Cynthia D. Mann, Kenneth A. Neale, Pamela Phillips and Douglas A. Winthrop, counsel Ira D. Moskatel and associates, Eleni Zanias (lead associate), Mohammad Amer, Christian D. Cheslak, Benjamin E. Danner, Rosa J. Evergreen, Ehab Farah, Wyatt M. Lipman, Matthew Morgenstern, John S. Throckmorton and Jan M. Siok.
PMI currently is in rehabilitation under the receivership of the Arizona Department of Insurance. It is anticipated that the transaction will close within 12 months, subject to necessary approvals and consents.
