Reinsurance News
mortgage insurance
Opportunities remain in U.S mortgage reinsurance market, but discipline is key: S&P
3rd September 2018
Opportunities remain for reinsurers in the U.S mortgage market, although companies must exercise strong discipline as the underwriting cycle is now past its peak, with credit risk and pricing pressure likely to increase as capacity expands, according to a report by S&P Global Ratings. The U.S housing and mortgage market has ... Read the full article
Arch MI platform integrated into Mortgage Cadence’s Lending Center
23rd August 2018
Arch Mortgage Insurance Company (Arch MI) has announced that Mortgage Cadence, an Accenture Company, has integrated Arch MI’s mortgage insurance platform into the Mortgage Cadence Enterprise Lending Center (ELC). Mortgage Cadence said its ELC facilitates lending in all forward and reverse mortgage channels and across all mortgage products, including home equity, ... Read the full article
Arch Capital secures $653mn of mortgage reinsurance from capital markets
22nd August 2018
Arch Mortgage Insurance Company (Arch MI), the U.S mortgage insurance arm of Arch Capital Group, has secured $653.3 million of indemnity reinsurance from the capital markets via an insurance-linked securities (ILS) transaction with Bellemeade Re 2018-2 Ltd., a special purpose insurer. The reinsurance relates to a portfolio of mortgage insurance policies ... Read the full article
$1.2 billion of risk offloaded by Freddie Mac in 2018
29th June 2018
Reinsurers have helped Virginia-headquartered Federal Home Loan Mortgage Corporation (Freddie Mac) offload $1.2 billion of risk this year, via its Agency Credit Insurance Structure (ACIS) program. ACIS 2018-SAP1, the Company’s fourth stand-alone ACIS credit-risk transfer (CRT), provides a maximum limit of up to approximately $300 million of losses on single-family loans. Gina ... Read the full article
Fannie Mae transfers more credit risk to re/insurers
14th June 2018
The Federal National Mortgage Association (Fannie Mae) has successfully secured re/insurance cover for a further $10 billion of single-family loans with the completion of its second and third traditional Credit Insurance Risk Transfer (CIRT) transactions of 2018. The completion of the CIRT 2018-2 and CIRT 2018-3 deals are part of Fannie ... Read the full article
Fidelis invests in new mortgage indemnity MGA, Aware Specialty
17th May 2018
Fidelis Insurance has taken an equity stake in a newly incorporated managing general agent (MGA), Aware Specialty Limited, which focuses on mortgage indemnity insurance. Aware will be managed through Pine Walk Capital Limited, Fidelis’ subsidiary MGA platform, and will provide Fidelis with mortgage indemnity insurance capacity in return for underwriting support. Giles ... Read the full article
Head of U.S. mortgage insurers raises concerns over IMAGIN pilot
27th March 2018
The launch of the mortgage credit risk transfer program Integrated Mortgage Insurance, IMAGIN, has provoked a backlash statement from U.S. Mortgage Insurers (USMI) President and Executive Director, Lindsey Johnson, who voiced concerns over the programme's potential to bypass the mortgage insurance industry to purchase credit enhancement from what she calls less ... Read the full article
Essent secures $424mn of mortgage reinsurance from capital markets
27th March 2018
Mortgage insurer Essent Guaranty has completed a transaction with Radnor Re 2018-1, a newly formed special purpose insurer, which sees Essent obtain US $424.4 million of fully collateralized excess of loss reinsurance coverage on mortgage insurance policies written by Essent in 2017. Essent Guaranty, which is a wholly owned subsidiary of ... Read the full article
Essent secures over $424mn of mortgage reinsurance protection from capital markets
15th March 2018
Mortgage insurance firm Essent Group is likely to secure over $424 million of reinsurance protection from the capital markets, via three tranches of 10-year mortgage insurance-linked notes issued by a newly established Bermuda special purpose insurer, Radnor Re 2018-1 Ltd. Under the transaction, Essent Guaranty, an Essent Group subsidiary, will receive ... Read the full article
Arch sets up subsidiary to channel Freddie Mac mortgage risk to reinsurers
14th March 2018
Arch Capital Group Ltd. has announced that a newly established U.S subsidiary, Arch MRT, will be piloting a new mortgage credit risk transfer program, called Integrated Mortgage Insurance (IMAGIN), in conjunction with the Federal Home Loan Mortgage Corporation (Freddie Mac). The arrangement will see Arch underwriting risks from Freddie Mac and ... Read the full article
A.M. Best responds to influx of mortgage risk with new rating criteria
2nd March 2018
In response to reinsurers expanding appetite for mortgage insurance risks, rating agency A.M. Best has published a new criteria procedure, “Evaluating Mortgage Insurance,” which it says is effective immediately. Following a request for comments process, where the industry was asked for its feedback on the new criteria procedure for mortgage insurance ... Read the full article
Radian enhances reinsurance at renewal after proposed changes to PMIERs
18th January 2018
Radian Group subsidiary, Radian Guaranty, has announced enhancements to its Single-Premium Mortgage Insurance (MI) Reinsurance Program, in response to proposed changes to Private Mortgage Insurer Eligibility Requirements (PMIERs). The enhancements include an increased cession of business for its single-premium MI quota share reinsurance arrangement, which it entered into in 2016, from 35% to ... Read the full article
National Mortgage Insurance gets new quota share reinsurance for 2018
16th November 2017
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 ... Read the full article
Arch secures $368mn of mortgage reinsurance through new ILS transaction
26th October 2017
Arch Capital Group's mortgage insurance (MI) business has secured $368 million of indemnity reinsurance protection via the capital markets from Bellemeade Re 2017-1 Ltd., a special purpose insurance vehicle. The latest issuance under the Bellemeade Re vehicle is the largest yet and a first for Arch's Mortgage Group, and is ... Read the full article
Reinsurers’ demand for U.S. GSEs mortgage risk to increase: A.M. Best
22nd September 2017
The softened reinsurance market landscape and a mandate by the Federal Housing Finance Agency (FHFA) is driving the increased participation of reinsurers in the U.S. mortgage insurance sector, a trend A.M. Best expects to continue. The persistent softening in the property/casualty reinsurance sector, underlined by continued rate declines across most business ... Read the full article
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