Arch Capital Group’s $3.4 billion acquisition of United Guaranty Group has been approved by the North Carolina Department of Insurance.

It was announced in August that the Bermudian-based company would buy the mortgage unit from American International Group in a cash and securities deal.

United Guaranty is the leading private mortgage insurance company in the US. It is based in Greenboro, North Carolina.

In a statement, the North Carolina Department of Insurance said: “After the acquisition, Arch Capital Group, will be the largest mortgage insurance company in the country and will relocate their headquarters to Greensboro.”

The headquarters referred to are those of Arch Mortgage Insurance Company, currently based in Walnut Creek, California.

Constantine “Dinos” Iordanou, CEO of Arch, in August said: “We expect to quickly integrate Arch’s existing California-based mortgage insurance operations and the North Carolina-based operations of United Guaranty while maintaining a strong presence in both locations, thereby further developing our superior customer service with nationwide and worldwide coverage.”

Announcing the approval, Wayne Goodwin, North Carolina’s insurance commissioner, said: “I always strive to recruit companies to North Carolina that will encourage growth and I believe Arch Capital Group’s choice to invest in the Tar Heel state will benefit everybody.

“This acquisition is great for North Carolina business and I am excited for what promises to be an enormous economic impact.”