Global mortgage insurer Arch Capital has reported a A$23.5 million net profit from the LMI assets acquired from Westpac last year. The Westpac LMI business was sold to Arch’s Australian holding company at the end of August and operated within the new owner’s business in the final four months of 2021.  However, the positive earnings contribution from the former Westpac assets was not enough to tip Arch’s bottom line into the black, after the group reported a net loss of $1.3 million in the 12 months to the end of December. Arch Financial Holdings Australia Pty Ltd reported a group loss of $12.5 million in 2020. In notes to the latest accounts, AFHA disclosed for the first time that it paid Westpac  A$300.6 million for the assets and liabilities of the bank’s LMI business. AFHA also revealed that Westpac was in line to receive additional consideration of $25.3 million at an undisclosed time. The total sale price of A$325.9 million was $24 million or 7 per cent lower than the consideration Westpac said in August last year it expected to receive. The net financial effect of the transaction from Westpac’s perspective will be lower than $325.9 million because a cash asset of $35.7 million was also transferred to AFHA under the deal. Westpac revealed in March last year that it also planned to book an $84 million write-down in goodwill before the LMI business was transferred to AFHA. A key condition of the sale stipulates that Arch will act as an exclusive supplier of lender’s mortgage insurance to the bank for at least ten years. AFHA is a wholly owned subsidiary of Bermuda-based insurance provider, the Arch Capital Group. The parent, which has operations in the US, Canada, Hong Kong, Europe and Australia, had a net asset base of US$13.5 billion at the end of December 2021.