United Guaranty
Offers mortgage insurance products that provide mortgage lenders and investors protection against default on a portion of the unpaid principal balance of a covered mortgage in the United States.
- Finance
- Real Estate
- mortgages & lending
| Date | Investors | Amount | Round |
|---|---|---|---|
$3.4b Valuation: $3.4b | Acquisition | ||
| Total Funding | 000k | ||
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In 1963, in Greensboro, North Carolina, three founders, Sidney Stern Jr., Marvin Legare, and Bill Hemphill, established a business called First Mortgage Insurance Company. Their goal was to operate a residential insurance company to protect lenders against default on home loans. For years, the company, which soon became United Guaranty, was a national leader in the relatively steady business of private mortgage insurance. The company's path took a significant turn in 1981 when it was purchased by American International Group (AIG), a major player in the insurance world. Under AIG, United Guaranty continued its operations, navigating the changing tides of the housing market. However, the 2007 housing crisis presented an immense challenge, leading to significant losses. AIG itself faced enormous pressure, and as part of a strategic simplification to become a leaner, more focused company, it made a pivotal decision regarding its mortgage unit. Instead of pursuing a planned IPO, AIG sold United Guaranty. In a deal announced in 2016 and closed at year-end, Arch Capital Group acquired the firm for approximately $3.4 billion. This acquisition combined United Guaranty's market-leading position with Arch's financial strength, creating the largest private mortgage insurer in the world and marking a new chapter for the company born from a simple idea in Greensboro.