Arch Capital Group named Michael Schmeiser president and CEO of its U.S. mortgage insurance business as the former head moved up the corporate ladder.
Andrew Rippert, who previously was CEO of the global mortgage group for the Bermuda-based insurer, was named chief innovation and strategic investment officer for the parent company.
He is being replaced by David Gansberg, the president and CEO of Arch Mortgage Insurance Co., which is based in Greensboro, N.C. Among Gansberg’s accomplishments was the integration of United Guaranty Corp., the largest of the private MIs.
Gansberg in his new role will oversee all of Arch’s worldwide mortgage insurance operations, including Arch MI.
Schmeiser had been chief strategy officer of the global mortgage group. He joined Arch following the purchase of United Guaranty from AIG in 2017.
“This move is only possible because of the deep talent pool that exists in the mortgage segment,” Arch Capital President and CEO Marc Grandisson said in a press release. “David has been a key member of Arch’s leadership team since our founding in 2001 and has excelled in building and guiding Arch MI to its market leading position in the U.S. His promotion ensures the continuity of our strategy and approach to the business and provides him with new challenges and opportunities globally.”
The U.S. mortgage insurance business, after briefly conceding its industry-leading position in the first quarter last year, is now the only company with a market share above 20%.
Arch’s mortgage segment, which includes its credit risk sharing, mortgage reinsurance and international businesses, had underwriting income of $245.8 million for the fourth quarter, up 43% from $172.3 million one year earlier.
Arch recently did an offering that transferred $352 million of risk on seasoned (more than three-quarters originated before 2010) government-sponsored enterprise mortgages.
For the full year, Arch’s mortgage insurance business had $857 billion in underwriting income, compared with $691.3 million in 2017.
“Growing the mortgage group from an idea to a unit that generated nearly $1 billion in profit for Arch in 2018 is an incredible source of pride for me,” Rippert said. “This new role will challenge my entrepreneurial spirit and help ensure the business I’ve helped grow will exist for the next 30 years. I know the mortgage group is in great hands, and I look forward to working closely with both David and Michael, as well as other leaders across Arch Capital, to pursue growth opportunities.”