Mortgage insurance specialist NMI Holdings has secured new quota share reinsurance coverage for its subsidiary, National Mortgage Insurance Corporation (National MI).
Under the new agreement, National MI will cede 22.5% of its primary new insurance written for the period from January 1, 2021 through December 31, 2021 to a panel of reinsurers.
The company will receive a ceding commission equal to 20% of ceded premiums, as well as a profit commission of up to 57.5% of ceded premiums, reduced by any losses ceded under the agreement.
“We are pleased with our ability to secure additional reinsurance capacity on constructive terms from a high-quality panel of reinsurance partners,” said Adam Pollitzer, Executive Vice President and Chief Financial Officer of National MI.
“Our new quota share agreement builds upon the success we have achieved in the risk transfer markets to date and extends our comprehensive reinsurance coverage across our production in 2021,” Pollitzer continued.
“The treaty highlights the confidence that reinsurers have in our front-end pricing and credit risk management approach, and furthers our ability to pursue incremental, high-quality new business and support lenders and borrowers in the current market.”
