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. As of November 2020, the Bellemeade program has completed 13 transactions totaling more than $6.2 billion in issued securities, providing protection on $587 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.