Arch Mortgage Insurance Company (Arch MI) has obtained more than $249 million of indemnity reinsurance covering a portfolio of roughly $54.2 billion in mortgages through Bellemeade Re 2025-1 Ltd., a special purpose reinsurer.
The coverage was structured through a combination of approximately $199 million in bonds and $50 million in direct reinsurance. The transaction primarily covers mortgage insurance policies issued by Arch MI and its affiliates between July 2024 and September 2025, and it officially closed on Nov. 13.
The deal represents Arch MI’s first Mortgage Insurance-Linked Note (MILN) transaction of 2025, BestWire reported. Since the Bellemeade program launched in 2015, Arch MI has completed 22 transactions under the program, securing nearly $10 billion in indemnity reinsurance.
Bellemeade Re 2025-1 Ltd. is financing its reinsurance obligations through the issuance of five classes of amortizing notes, each with a 10-year legal final maturity. Ratings from Morningstar DBRS for the notes were as follows: Class M-1A BBB (low)(sf), Class M-1B BB (high)(sf), Class M-1C BB (low)(sf), Class M-2 B (high)(sf), and Class B-1 B (sf).
Pricing for the notes ranged from a coupon of one-month SOFR plus 1.55% for Class M-1A to one-month SOFR plus 5.05% for Class B-1. In addition to the bond issuance, $49.8 million was placed with a panel of reinsurers.
“Bellemeade is an important part of Arch’s risk and capital management strategy, and we are excited to introduce an innovative amortization structure in this Bellemeade transaction that matches our capital requirements,” said Jennifer Weiss, vice president of structured capital and reinsurance at Arch MI. “We had strong investor engagement for this offering, and we are pleased with the ultimate execution.”
Arch Capital Group Ltd., the parent of Arch Mortgage Insurance Company (Arch MI), reported third‑quarter results showing net income of $1.34 billion, a 23.8% annualized return on average common equity, with underwriting income rising sharply.
The Bellemeade reinsurance transaction is part of Arch MI’s ongoing strategy to manage risk and optimize capital.
