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ACGLP - Arch Capital News Story

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Last Trade - 07/05/21

Sector
Financials
Size
Large Cap
Market Cap £11.77bn
Enterprise Value £14.47bn
Revenue £6.00bn
Position in Universe 695th / 6858

Westpac to sell lenders mortgage insurance business to Arch Capital

Thu 18th March, 2021 12:50am
March 18 (Reuters) - Australia's Westpac Banking Corp
 WBC.AX  said on Thursday it will sell its lenders mortgage
insurance (LMI) business to Arch Capital Group  ACGL.O  in a
deal that will also make Arch Westpac's exclusive LMI supplier
for 10 years.
    The sale, which is expected to close by the end of August,
is the latest step in Westpac's efforts to simplify its
operations and cut costs by focusing on its core domestic and
New Zealand businesses.
    "The sale continues the simplification of our business and
builds on our progress in becoming a simpler, stronger bank
focused on consumer, business and institutional banking," said
Jason Yetton, chief executive, specialist businesses and group
strategy.
    Westpac, Australia's third largest lender, said it will
record a loss on the sale, though the deal is expected to add
about seven basis points to its common equity tier 1 capital
ratio.  urn:newsml:reuters.com:*:nNZW30ch7f
    In a separate statement, Arch said it intends to combine
Westpac LMI's operations with its existing Australian LMI
company, Arch LMI Pty Ltd.  urn:newsml:reuters.com:*:nBwTfJvda
    Lenders mortgage insurance covers Westpac for any shortfall
if a customer defaults on a home loan or if the proceeds from
the sale of the property are not enough to pay off the loan.

 (Reporting by Shashwat Awasthi in Bengaluru; editing by Jane
Wardell)
 ((Shashwat.Awasthi@thomsonreuters.com))
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