NMI Holdings, Inc., the parent of National Mortgage Insurance Corporation, said today that its mortgage insurer subsidiary has already arranged a new quota share reinsurance arrangement for 2018, subject to approvals.
National Mortgage Insurance Corporation has entered into an agreement on a new quota share reinsurance treaty with a panel of highly rated reinsurers, the company said.
The new quota share mortgage reinsurance treaty will take effect on January 1st 2018 and under the terms of the arrangement National Mortgage Insurance will cede 25% of its 2018 primary new mortgage insurance written and 20% to 30% of its 2019 primary new insurance written, all subject to confirmation.
The quota share arrangement will see NMI receive a ceding commission of 20% of ceded premiums, as well as a profit commission of 61% of ceded premiums, minus any losses suffered under the reinsurance treaty.
The reinsurance arrangement is subject to approval and National Mortgage Insurance has submitted the agreement to Fannie Mae and Freddie Mac for approval, as required under the Private Mortgage Insurers Eligibility Requirements (PMIERs).
