Arch Mortgage Insurance Company Announces Ability to Comply with PMIERs 2.0

GREENSBORO, N.C.–(BUSINESS WIRE)–Arch Mortgage Insurance Company and United Guaranty Residential
Insurance Company (together “Arch MI”) today provided guidance on their
compliance under the revised Private Mortgage Insurer Eligibility
Requirements (PMIERs 2.0) published by Fannie Mae and Freddie Mac on
September 27, 2018.

As previously disclosed, as of June 30, 2018, Arch MI satisfied the
original PMIERs financial requirements with an estimated sufficiency
ratio of 134%. Under the revised requirements of PMIERs 2.0, as of June
30, 2018, Arch MI’s sufficiency ratio (calculated as Available Assets
divided by Required Assets as defined within PMIERs) would have been
approximately 126% and its estimated Available Assets would continue to
exceed the GSEs’ eligibility requirements. PMIERs 2.0 is not expected to
have a significant impact on Arch MI’s operations or have a material
impact on its capital position as of the anticipated effective date of
March 31, 2019.

About Arch Mortgage Insurance Company

Arch Capital Group Ltd.’s U.S. mortgage insurance operation, Arch MI, is
a leading provider of private insurance covering mortgage credit risk.
Headquartered in Greensboro, North Carolina, Arch MI’s mission is to
protect lenders against credit risk, while extending the possibility of
responsible home ownership to qualified borrowers. Arch MI’s flagship
mortgage insurer, Arch Mortgage Insurance Company, is licensed to write
mortgage insurance in all 50 states, the District of Columbia and Puerto
Rico. For more information, please visit archmi.com.

Cautionary Note Regarding Forward-Looking Statements

The Private Securities Litigation Reform Act of 1995 provides a “safe
harbor” for forward-looking statements. This release or any other
written or oral statements made by or on behalf of Arch Capital Group
Ltd. and its subsidiaries may include forward-looking statements, which
reflect our current views with respect to future events and financial
performance. All statements, other than statements of historical fact
included in or incorporated by reference in this release, are
forward-looking statements.

Forward-looking statements can generally be identified by the use of
forward-looking terminology such as “may,” “will,” “expect,” “intend,”
“estimate,” “anticipate,” “believe” or “continue” or their negative or
variations or similar terminology. Forward-looking statements involve
our current assessment of risks and uncertainties. Actual events and
results may differ materially from those expressed or implied in these
statements. A non-exclusive list of the important factors that could
cause actual results to differ materially from those in such
forward-looking statements includes the following: adverse general
economic and market conditions; increased competition; pricing and
policy term trends; fluctuations in the actions of rating agencies and
our ability to maintain and improve our ratings; investment performance;
the loss of key personnel; the adequacy of our loss reserves, severity
and/or frequency of losses, greater than expected loss ratios and
adverse development on claim and/or claim expense liabilities; greater
frequency or severity of unpredictable natural and man-made catastrophic
events; the impact of acts of terrorism and acts of war; changes in
regulations and/or tax laws in the United States or elsewhere; our
ability to successfully integrate, establish and maintain operating
procedures and integrate the businesses we have acquired or may acquire
into the existing operations; changes in accounting principles or
policies; material differences between actual and expected assessments
for guaranty funds and mandatory pooling arrangements; availability and
cost to us of reinsurance to manage our gross and net exposures; the
failure of others to meet their obligations to us and other factors
identified in our filings with the U.S. Securities and Exchange
Commission.

The foregoing review of important factors should not be construed as
exhaustive and should be read in conjunction with other cautionary
statements that are included herein or elsewhere. All subsequent written
and oral forward-looking statements attributable to us or persons acting
on our behalf are expressly qualified in their entirety by these
cautionary statements. We undertake no obligation to publicly update or
revise any forward-looking statement, whether as a result of new
information, future events or otherwise.