Euclid Program Managers, a family of insurance program managers, has launched Euclid Mortgage, LLC, a managing general underwriter (MGU) led by industry veterans Joe Monaghan and Joe Hissong, which underwrites mortgage credit risk on behalf of insurers and reinsurers.
Monaghan will serve as the organisation’s Managing Principal and Chief Executive Officer, following his significant contributions to the post-GFC mortgage reinsurance market at Aon.
At the same time, Hissong will join as the Chief Operating Officer. Hissong was a founding investor and board member on behalf of PartnerRe in Essent Group, and later went on to serve as President of Essent’s Bermuda reinsurer, where he led the establishment of its MGA.
“Euclid Mortgage fills a void in the market and provides immediate and scalable access to the highly profitable and diversifying mortgage reinsurance market. We aim to be a market leader in capacity, technology, and innovation,” commented Monaghan.
Adding: “It is an ideal time to launch Euclid Mortgage. This segment has generated more than $11 billion of profit for reinsurers since the Great Financial Crisis and has shown that it can weather substantial spikes in defaults like we observed during the COVID pandemic. Mortgage originations are poised to grow significantly as and when mortgage rates decline, and that will generate additional reinsurance demand as well as opportunities for structural innovation.”
“We believe the combination of our experience, digital platform, scope of services, and the fact that we operate across the entire US mortgage reinsurance market offers unique and compelling value to our carrier partners,” Hissong said.
He continued: “We will utilize best in class analytics combining third party and proprietary models which will drive highly accretive and stable returns for our carrier partners and deliver structural innovation, tailored solutions, and reliable costs for cedents.”
John Colis, President and CEO of Euclid Insurance Services, said: “We believe we have assembled the ‘Dream Team’ of mortgage (re)insurance experts at Euclid Mortgage. No one can match their expertise, contacts, or portfolio optimization analytics, and we are delighted to partner with them.”
