Europe MI
Arch Insurance (EU) dac provides credit risk transfer solutions to our European banking clients.
Significant Risk Transfer in Europe
Arch’s presence in Europe began in 2004. We have an execution track record of providing significant risk transfer transactions (SRT) in respect of mortgage, SME and corporate loans to a range of European banks.
In 2018 Arch, in tandem with ING DIBA A.G, completed the first unfunded mortgage SRT executed between a European bank and an insurance counterparty.
We also provide flow mortgage insurance to clients in several European countries.
Efficient, Innovative Risk Solutions
Arch has significant experience in banking, insurance, actuarial, bank capital relief, economic analysis, tax and law. We have a deep bench of talent that we can leverage to develop and deliver products tailored to meet our clients’ needs.
Client Benefits
The full mortgage underwriting and analytical expertise of Arch’s Global Mortgage Group supports the European team.
Arch has the financial strength and expertise to provide bespoke risk transfer solutions to our European clients.
Our experienced European team focuses on efficient transaction execution, invests in building long-term relationships and provides outstanding customer service.
Arch offers meaningful capacity to banks and works closely with our partners to create effective and innovative risk transfer solutions. If a specific transaction meets our risk appetite requirements, we have the capacity to deploy in excess of €100 million.
Our Offerings
Significant Risk Transfer Transactions
Arch delivers credit risk protection on portfolios of mortgages and other asset classes structured to meet the client’s objectives. Our structured solutions satisfy regulatory requirements for Significant Risk Transfer (SRT) and allow our clients to obtain capital relief.
We seek to build long-term relationships with our clients where there is a strong alignment of interest. We have completed numerous transactions with Europe’s largest banks.
Regulatory Capital Relief for Banks
Arch invests in synthetic securitisations across a range of asset classes to facilitate regulatory capital relief risk transfer solutions for banks.
- A synthetic securitisation permits a transfer of credit risk in respect of a portfolio of assets by a bank to an investor in a tranched format.
- The portfolio assets stay on the bank’s balance sheet, but the credit risk associated with the protected tranche is transferred to the investor, who receives a quarterly fee in compensation.
Banks are granted regulatory capital relief by their financial regulator if sufficient risk on the protected tranche is transferred to the investor.
- The bank’s financial regulator determines whether SRT has been achieved on the transaction, primarily by reference to the thickness of the junior tranche.
- A Financial Guarantee or Insurance Policy is typically used to facilitate risk transfer.
- We have written transactions in both Financial Guarantee and Insurance Policy formats.
Mortgage Insurance
Arch provides credit protection to European lenders on mortgage loans. If a borrower defaults on a loan and the mortgaged property is sold at a loss, we can provide insurance cover in respect of the loss. Cover can be provided in respect of newly originated loans or existing portfolios of loans. The coverage is tailored to fit the client’s needs, e.g. risk mitigation, provisioning savings, capital management, reducing volatility and regulatory requirements.
Latest News
Arch Insurance (EU) dac Named Credit Insurer of the Year by Structured Credit Investor
Arch Insurance (EU) dac, a subsidiary of Arch Capital Group Ltd. (Arch) was awarded Credit Insurer of the Year in Structured Credit Investor’s (SCI) Capital Relief Trades (CRT) Awards 2023. The firm is Arch’s primary mortgage insurance operation in Europe and was recognised because of the recent, substantial growth of its European Significant Risk Transfer (SRT) business.
Contacts
Ruairi Neville
Head of European Origination
Laurent Garnier
Vice President, Head of Significant Risk Transfer Structuring
Europe Mortgage
Michael Bennett
Chief Underwriting Officer
Europe Mortgage
Regulatory Information
Arch Insurance (EU) dac is registered in the Republic of Ireland (No. 505420). Registered Office: 2nd Floor, Block 3 The Oval, 160 Shelbourne Road, Ballsbridge, Dublin 4. Arch Insurance (EU) dac, trading as Arch Mortgage Insurance, Alwyn Europe, Arch Insurance EU, Arch Insurance, Arch International and Arch MI, is regulated by the Central Bank of Ireland. Arch Underwriters Europe Limited is registered in the Republic of Ireland (No. 538497) and regulated by the Central Bank of Ireland. Registered Office: 2nd Floor, Block 3 The Oval, 160 Shelbourne Road, Ballsbridge, Dublin 4.
