Genworth Mortgage Insurance Corporation has announced that it has obtained $349.6mn of reinsurance coverage from Triangle Re Ltd. on a portfolio of existing mortgage insurance policies written from January 2020 through to August 2020.
Triangle Re is a special purpose insurer domiciled in Bermuda and is not a subsidiary or affiliate of Genworth Financial, Inc.
Triangle Re has funded its reinsurance obligations by issuing five classes of mortgage insurance-linked notes (ILNs), which have a 10-year legal final maturity with a 7-year call option, to qualified institutional investors in an unregistered private offering. The ILNs are non-recourse to Genworth Financial, Inc. or its subsidiaries and affiliates.
This transaction marks the second ILN issuance for Genworth MI, representing its third credit risk transfer transaction since the COVID-19 pandemic began, and is a continuation of the company’s credit risk transfer program, which has generated more than $2.4 billion of excess of loss reinsurance coverage over the past five years.
Genworth MI’s Chief Executive Officer Rohit Gupta commented: “I’m proud of the work we continue to do to strengthen our portfolio and balance sheet. In the best of times, these actions help us effectively manage our capital, and in uncertain times, they help us weather the impact of market volatility on our portfolio and protect our balance sheet.”