Insurance-Linked Notes (Bellemeade Re)

The Mortgage Insurance Linked Note Pioneer

Arch obtains fully funded reinsurance protection through the issuance of mortgage insurance-linked notes (ILNs) through its Bellemeade program. Under this program, Arch’s mortgage insurance subsidiaries enter into a reinsurance contract with a special purpose insurer that issues ILNs to fund its obligation to Arch. To date, the Bellemeade program has completed over 20 transactions totaling $9 billion in issued securities, providing protection on more than $750 billion of insured mortgages.

The Bellemeade program is a critical tool used to manage capital needs and mitigate losses under financial stress scenarios while providing key insights from a broad spectrum of institutional investors regarding the housing finance environment in which we operate.