[July 30, 2014]

Arch MI Introduces New Master Policy with 12-Month Rescission Option for Lenders

Arch Mortgage Insurance Company ("Arch MI"), a leading provider of private mortgage insurance and wholly owned subsidiary of Arch Capital Group Ltd., announced today the introduction of its new First Lien Master Policy, which includes Arch MI's new Plus Program. Arch MI's new Master Policy sets a new standard for flexibility by offering both 12- and 36-month rescission relief options. Arch MI's new Master Policy, which will become effective on October 1, 2014, also includes industry-leading streamlined procedures and claim settlement timelines and other improvements.

"At Arch MI, we recognize that mortgage originators appreciate options," said Chris Hovey, Chief Operations Officer of Arch MI. "We offer originators multiple ways to deliver mortgage insurance and close their loans faster. We created our new Master Policy based on our understanding that our customers have differing mortgage insurance needs, and we are committed to providing our clients with multiple options that best fulfill these."

Arch MI's enhanced Master Policy includes two significant new options for rescission relief: a baseline policy with 36-month rescission relief and the new Plus Program option with 12-month rescission relief. The new Plus Program provides policyholders with rescission relief following 12 timely borrower payments following Arch MI's independent validation of loan quality and property value. This option is ideal for mortgage originators who seek early rescission relief and choose to satisfy the Plus Program's independent validation process. Arch MI's baseline policy option offers the more traditional 36-month rescission relief without additional validation requirements.

"Arch MI's enhanced Master Policy sets the industry standard in clarifying mortgage insurance coverage for our lenders and eliminates ambiguity surrounding rescission relief," said Chris Hovey. "The enhanced Master Policy and the new Plus Program option are the latest offerings in our line of tailored, high-quality products and services to traditional mortgage lenders and investors."

Arch MI offers customers support from our dedicated customer service representatives at (800) 909-4264 and through our innovative Master Policy Information Center at https://mi.archcapgroup.com/mpinfocenter where customers can find the new Arch MI Master Policy and endorsements, a description of the key changes introduced, details of rescission rights, an overview of our industry-leading expedited claims process and other important information about Arch MI's new Master Policy.

ABOUT ARCH MORTGAGE INSURANCE COMPANY (FORMERLY KNOWN AS CMG MORTGAGE INSURANCE COMPANY)

Arch MI is a leading provider of private insurance against mortgage credit risk. Headquartered in Walnut Creek, CA (News - Alert), Arch MI's mission is to protect lenders against credit risk, while extending the possibility of responsible homeownership to qualified borrowers. Arch MI was formed when Arch Capital acquired CMG Mortgage Insurance Company (CMG MI) and the mortgage insurance operating platform of PMI Mortgage Insurance Co. on January 30, 2014, creating a state-of-the-art mortgage insurance operation. Arch MI is licensed to write mortgage insurance in all 50 states, the District of Columbia and Puerto Rico. For more information, please visit www.archmi.com.

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 MI, Arch Capital Group Ltd. or 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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