PMI Mortgage Insurance Company, the PMI Group's international mortgage insurance subsidiary, has acquired the UK Lenders' Mortgage Insurance (LMI) business of Royal & SunAlliance (R&SA).
PMI has acquired the portfolio of UK mortgage loans which originated from 1993 onwards. Under the deal, R&SA will continue to manage the existing portfolio of pre-1993 contracts and the excess of loss contracts.
R&SA has agreed to discontinue writing or renewing LMI business.
The acquisition is subject to regulation and British court approval, expected to take six months. PMI said a co-operation agreement was in place to provide R&SA's clients with access to PMI products during the interim period.
