Market Overview

Arch MI Secures Over $653 Million of Indemnity Reinsurance from Insurance-linked Note Transaction


Arch Mortgage Insurance Company ("Arch MI") announced today that it has
obtained $653,278,000 of indemnity reinsurance from Bellemeade Re 2018-2
Ltd., a special purpose insurer. The reinsurance is for a portfolio of
mortgage insurance (MI) policies issued by Arch MI and affiliates
between April 2013 and December 2015. The senior M-1A class notes
received ratings of AAA from Morningstar and A+sf from Fitch Ratings.

This transaction marks the third time Arch MI has accessed the capital
markets for a risk transfer involving a mortgage insurance portfolio.
Altogether, five Bellemeade transactions have been completed and have
garnered nearly $2 billion of reinsurance protection for loans
representing more than $192 billion of unpaid principal balance. This
transaction's $653,278,000 of reinsurance protection is believed to be
the largest insurance-linked security (ILS) issue backed by a portfolio
of MI policies.

As the Bellemeade transactions have increased in dollar value, they have
also received additional interest from investors. This latest issue
features 26 participants compared to 17 investors for the first
Bellemeade transaction in 2015.

Bellemeade Re 2018-2 Ltd. is funding its reinsurance obligations through
the issuance of four classes of amortizing notes with 10-year legal
final maturities. This ILS transaction provides Arch with collateralized
coverage from Bellemeade Re 2018-2 Ltd. for potential losses on a
portion of its MI portfolio.

Andrew Rippert, CEO of Arch's Global Mortgage Group said, "Arch has and
will continue to be a leader and innovator in the insurance-linked
securities space. These Bellemeade transactions provide us with
flexibility in our overall mortgage insurance portfolio and allow us to
effectively manage regulatory capital." Rippert added, "This particular
issue is notable for its size, the vintages of the reference pool and
the high ratings assigned by the agencies."

About Arch Mortgage Insurance Company

Arch Capital Group Ltd.'s U.S. mortgage insurance operation, Arch MI, is
a leading provider of private insurance covering mortgage credit risk.
Headquartered in Greensboro, North Carolina, with significant operations
in Walnut Creek, California, Arch MI's mission is to protect lenders
against credit risk, while extending the possibility of responsible home
ownership to qualified borrowers. Arch MI's flagship mortgage insurer,
Arch Mortgage Insurance Company, is licensed to write mortgage insurance
in all 50 states, the District of Columbia and Puerto Rico. For more
information, please visit

Cautionary Note Regarding Forward-looking Statements

The Private Securities Litigation Reform Act of 1995 provides a "safe
harbor" for forward−looking statements. This release or any other
written or oral statements made by or on behalf of Arch Capital Group
Ltd. and its subsidiaries may include forward−looking statements, which
reflect our current views with respect to future events and financial
performance. All statements other than statements of historical fact
included in or incorporated by reference in this release are
forward−looking statements.

Forward−looking statements can generally be identified by the use of
forward−looking terminology such as "may," "will," "expect," "intend,"
"estimate," "anticipate," "believe" or "continue" or their negative or
variations or similar terminology. Forward−looking statements involve
our current assessment of risks and uncertainties. Actual events and
results may differ materially from those expressed or implied in these
statements. A non-exclusive list of the important factors that could
cause actual results to differ materially from those in such
forward-looking statements includes the following: adverse general
economic and market conditions; increased competition; pricing and
policy term trends; fluctuations in the actions of rating agencies and
our ability to maintain and improve our ratings; investment performance;
the loss of key personnel; the adequacy of our loss reserves, severity
and/or frequency of losses, greater than expected loss ratios and
adverse development on claim and/or claim expense liabilities; greater
frequency or severity of unpredictable natural and man-made catastrophic
events; the impact of acts of terrorism and acts of war; changes in
regulations and/or tax laws in the United States or elsewhere; our
ability to successfully integrate, establish and maintain operating
procedures as well as integrate the businesses we have acquired or may
acquire into the existing operations; changes in accounting principles
or policies; material differences between actual and expected
assessments for guaranty funds and mandatory pooling arrangements;
availability and cost to us of reinsurance to manage our gross and net
exposures; the failure of others to meet their obligations to us; and
other factors identified in our filings with the U.S. Securities and
Exchange Commission.

The foregoing review of important factors should not be construed as
exhaustive and should be read in conjunction with other cautionary
statements that are included herein or elsewhere. All subsequent written
and oral forward−looking statements attributable to us or persons acting
on our behalf are expressly qualified in their entirety by these
cautionary statements. We undertake no obligation to publicly update or
revise any forward−looking statement, whether as a result of new
information, future events or otherwise.

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