Mortgage insurance specialist NMI Holdings has announced its second insurance-linked securities (ILS) transaction in as many years, securing $264.5 million of collateralised mortgage reinsurance from newly-formed Bermuda special-purpose insurer Oaktown Re II.
The transaction is expected to close on July 25 and consists of notes being offered for sale to eligible third party capital markets investors in an unregistered private offering.
In connection with the transaction, NMIH’s wholly owned subsidiary National Mortgage Insurance Corporation will receive $264.5 million of fully collateralised excess of loss reinsurance protection, covering an existing portfolio of mortgage insurance policies written from January 2017 through May 2018.
The deal is split into three tranches of notes, Classes M-1, M-2, and B-1, at $133.6 million, $116.9 million and $13.9 million respectively.
Read more about this transaction and every other ILS or cat bond in our sister-site Artemis’ comprehensive catastrophe bond and insurance-linked security Deal Directory.
