NMI Holdings, Inc. has announced that National Mortgage Insurance Corporation, its wholly-owned insurance subsidiary, has entered into a new excess-of-loss (XOL) reinsurance agreement with a wide panel of highly rated reinsurers.
Subject to customary conditions, the XOL agreement has a treaty inception date of July 1, 2022 and provides aggregate loss protection on policies originated between April 1, 2022 and June 30, 2022, from a 2.25% cumulative claim attachment threshold up to a 6.65% maximum aggregate detachment level.
At the same time, National MI expects to receive full PMIERs credit for the transaction, subject to GSE approval.
“We are pleased to have secured additional reinsurance coverage and incremental PMIERs funding at this time. This transaction builds upon the broad success we have achieved in the risk transfer markets to date and closely follows the XOL transaction we announced in May,” said Ravi Mallela, Executive Vice President and Chief Financial Officer of National MI.
“Our ability to compress the cycle time between transactions and secure coverage for our most recent quarterly new business production is an important step and serves to minimize the retained credit risk in our high-quality, high-growth insured portfolio.
“Looking forward, we’re in a terrific position with broad protection from our comprehensive reinsurance program and demonstrated access to funding across the capital markets and reinsurance spectrum.”
