Capsicum Re has confirmed its role as reinsurance broker working with Arch Capital Group’s new Washington D.C. based subsidiary, Arch MRT on the new mortgage credit risk transfer program Integrated Mortgage Insurance, IMAGIN.
Led by Steven Rance, Capsicum Re’s mortgage indemnity division and Arch have assembled the panel of re/insurers that will assume 100% of the risk from Arch MRT.
Rance, said: “This pilot represents a landmark placement in the mortgage credit insurance space. IMAGIN is an efficient, innovative and scalable platform that will allow for a highly secure return of quality capacity to the U.S. housing market.”
Arch Capital had previously announced an innovative arrangement with U.S. mortgage insurer Freddie Mac, in which the re/insurer positions itself as an intermediary to channel mortgage credit and insurance related risks back to a panel of reinsurers.
Arch explained at the time of launch that Arch MRT will “insure Freddie Mac and transfer 100% of the risk assumed to a panel of diversified, well-capitalized, and highly rated re/insurers that provide high quality collateral assets in trust.”
Now, Bermudian re/insurer Arch has selected Capsicum Re as the broker for the facility, and the panel of re/insurers behind the facility had to bid through a transparent process to access the mortgage risks.