US mortgage insurer Radian Guaranty, a subsidiary of Radian Group, has obtained a further $488 million of fully collateralised mortgage reinsurance from the capital markets.
This transaction marks the third time Radian Guaranty has utilised the insurance-linked securities (ILS) market for mortgage reinsurance, following a $455 million deal in November 2018 and a $562 million deal in April 2019.
The excess of loss reinsurance covers eligible mortgage insurance policies written by Radian Guaranty in January through September 2019, excluding single premium payment policies.
Coverage was secured via Eagle Re 2020-1 Ltd., a newly formed Bermuda special purpose insurer.
Eagle Re has funded its reinsurance obligations by issuing five classes of mortgage insurance-linked notes (ILNs) with a 10-year maturity and 7-year call option to eligible third-party capital markets investors in an unregistered private offering.
Further details of the transaction are listed in the Deal Directory of out ILS-focused sister publication, Artemis.
