First-Loss Credit Protection and More
Arch MI’s strength and innovation extend to the Hong Kong geographic and mortgage markets with the acquisition of Arch MI Asia Limited (formerly AIG United Guaranty Insurance (Asia) Limited), which began operations in 1999 as one of the first mortgage insurance providers in the territory.
Arch MI Asia has been operating a residential mortgage insurance and reinsurance business to help lenders in Hong Kong make loans to more people while lowering credit-related risk for those lenders. The business complements local government and monetary regulators’ long-term financial policies.
Arch MI Asia Products and Services
Arch MI Asia provides first-loss credit protection coverage up to a specified maximum loan-to value-ratio (LTV). This insurance protects the lender in the event of credit default by the borrower. The base product is designed for home purchases financed in the local currency. Arch MI Asia can also reinsure mortgage loans originated by other MI insurers, insure bulk/pool structures, and design customized programs for other first-lien mortgage originators. Our primary customers are authorized financial institutions in Hong Kong.