Radian Group Inc. accused Arch Capital Group Ltd. of inducing a former account manager to quit and take confidential information with her to gain a competitive edge when it enters the U.S. mortgage-guaranty business.
Regional account manager Rhiannon Bolen resigned from Radian on Aug. 27 and later sent confidential data related to two key Radian customers to her personal email, according to a complaint filed today in federal court in Philadelphia. The customers accounted for almost $1.5 billion of the mortgage insurer’s new business this year, Radian claimed.
“Radian’s need for effective injunctive relief is particularly necessary in light of the job duties Bolen performed for Radian,” the company said in the filing. “Bolen was the primary point of contact for seventeen of Radian’s most valued customers in the Southern Region.”
Arch Capital, a Bermuda-based insurer, announced plans in February to enter the U.S. market for mortgage insurance by adding assets from bankrupt insurer PMI Group Inc. in a $300 million deal. Bolen, who worked for Radian for about 18 months, previously worked as an account manager with PMI.
Arch is poised to enter the U.S. marketplace next month by offering mortgage guaranty insurance for loans originated by credit unions as well as traditional lenders, Radian said in its complaint.
Radian accused Bolen, who’s also a defendant in the suit, of violating a noncompete agreement that barred her from working for competitors for at least a year after leaving the company. Radian said it learned Bolen had signed on with Arch on Sept. 25, about a month after she quit.
The agreement also barred the disclosure of trade secrets and confidential information, according to the complaint.
Arch, which is actively recruiting for mortgage insurance sales positions, “made the decision to hire Bolen with the express intention of benefiting from her knowledge of Radian trade secrets,” Philadelphia-based Radian said in the complaint.
Officials at Arch didn’t immediately respond to a phone message left after regular business hours seeking comment on the suit. Bolen, a resident of Highland Village, Texas, didn’t immediately respond to a phone message.