Reinsurance News
mortgage reinsurance
Genworth secures $300mn mortgage reinsurance from capital markets
9th July 2020
Genworth Mortgage Insurance, part of Genworth Financial, has completed an excess of loss reinsurance transaction covering a portion of the loss tier on subject loans written between 2009 and 2019 book years, effective April 1, 2020. The transaction provides reinsurance coverage in excess of the Private Mortgage Insurer Eligibility Requirements (PMIERs) capital ... Read the full article
Capsicum Re helps Arch secure additional mortgage reinsurance
2nd July 2020
Arch Mortgage Insurance Company (Arch MI), a wholly owned subsidiary of Arch Capital Group Ltd., has secured $528 million of indemnity reinsurance via a mortgage insurance-linked note (ILN) transaction and direct reinsurance. The $528 million of mortgage reinsurance covers a pool representing around $44 billion of mortgages for Arch MI, and ... Read the full article
Pandemic to drive significant mortgage reinsurance losses: AM Best
4th June 2020
Analysts at AM Best believe that the COVID-19 pandemic will drive “significant” losses for US mortgage reinsurance business, even as the eventual impact still remains unclear. The rating agency predicts that delinquencies will increase dramatically in the second quarter of 2020 due to forbearance and job losses. While forbearance, loan modifications, and ... Read the full article
Fannie Mae transfers up to $1.3bn of mortgage risk to the re/insurance market
28th May 2020
The Federal National Mortgage Association (Fannie Mae) has transferred up to $1.3 billion of mortgage credit risk to the private market through the combination of two recently executed front-end Credit Insurance Risk Transfer (CIRT) transactions. CIRT FE 2020-1 and CIRT FE 2020-2 together cover up to $39.6 billion in unpaid principal ... Read the full article
A.M. Best turns negative on US private mortgage insurance market
9th April 2020
Ratings agency A.M. Best has revised its outlook on the U.S. private mortgage insurance market to negative from stable, as a result of the widespread uncertainty being caused by the ongoing COVID-19 coronavirus pandemic. According to A.M. Best, the viability of the primary and secondary markets for mortgages in the U.S. ... Read the full article
Fannie Mae transfers $8.7bn of mortgage risk to re/insurers
10th March 2020
The Federal National Mortgage Association (Fannie Mae) has completed its first multi-tranche Multifamily Credit Insurance Risk Transfer (MCIRT) transaction of 2020, covering a pool of $8.7 billion of multifamily loans. The deal marks the eight Multifamily CIRT transaction undertaken by Fannie Mae as part of its efforts to increase the role ... Read the full article
Radian taps capital markets for another $488mn of mortgage reinsurance
4th February 2020
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 ... Read the full article
Essent secures $496mn of mortgage reinsurance from capital markets
31st January 2020
Bermuda domiciled mortgage insurer Essent Group Ltd. has announced that its subsidiary, Essent Guaranty, Inc., has secured a further $495.9 million of fully collateralised excess of loss reinsurance coverage from the capital markets. The coverage was obtained through Radnor Re 2020-1 Ltd, a newly formed Bermuda special purpose insurer, and relates ... Read the full article
Consecutive disaster years cause mortgage delinquency spike: CoreLogic
31st January 2020
Analysts at property information and analytics provider CoreLogic believe that 2019 could bring an increase in mortgage delinquency rates in areas hit by consecutive years of destructive natural disasters. The firm noted that after 2017 Hurricanes Harvey, Irma and Maria, serious delinquency rates on home mortgages tripled in the Houston, Texas, ... Read the full article
Fannie Mae secures reinsurance for another $18.5bn of mortgage risk
17th December 2019
The Federal National Mortgage Association (Fannie Mae) has completed its eighth and final Credit Insurance Risk Transfer (CIRT) deal of 2019, securing re/insurance on $18.5 billion of single-family loans. The transaction, which relates to 15-year and 20-year original term fixed rate loans, forms part of Fannie Mae’s ongoing effort to reduce ... Read the full article
Moody’s increasingly positive on mortgage insurers as reinsurance use grows
2nd December 2019
With mortgage insurers in the U.S. increasingly leveraging the capital markets to secure reinsurance protection, alongside traditional forms of coverage, Moody's Investors Service (Moody's) has taken some positive rating actions and a somewhat more positive outlook on market players. Overall, notes Moody's, the U.S. mortgage insurance sector has reported broad-based improvements ... Read the full article
Genworth secures $300mn mortgage reinsurance from capital markets
25th November 2019
Genworth Mortgage Insurance (MI), part of Genworth Financial, Inc., has obtained £302.8 million of fully collateralised excess of loss reinsurance coverage from the capital markets. Genworth Mortgage Insurance Corporation, a wholly owned subsidiary of Genworth MI, secured the coverage from Triangle Re 2019-1 Ltd. Triangle Re is a special purpose insurer domiciled ... Read the full article
Freddie Mac closes $1.8bn MCIP Reinsurance Transaction
22nd November 2019
The Federal Home Loan Mortgage Corporation (Freddie Mac) has closed its second Multifamily Credit Insurance Pool (MCIP) offering, MCIP 2019-R2. The transaction reinsurers risk on a $1.87 billion reference pool made up of 88 multifamily loans. Partnering with reinsurance broker Aon, The U.S government-sponsored mortgage giant retains the first .75% of losses, ... Read the full article
Moody’s revises US mortgage insurance sector outlook to stable
15th November 2019
Financial services ratings agency Moody's has revised its outlook for the U.S. mortgage insurance sector to stable from positive, in light of moderated macroeconomic conditions through an extended economic cycle. Moderating macroeconomic conditions are expected as a result of slowing economic growth and forecasts for higher unemployment in the U.S., says ... Read the full article
Fannie Mae completes further $10bn mortgage reinsurance deal
3rd October 2019
The Federal National Mortgage Association (Fannie Mae) has completed a multi-tranche Multifamily Credit Insurance Risk Transfer (MCIRT) transaction covering a pool of $10.7 billion of multifamily loans. MCIRT 2019-02 is the sixth multifamily CIRT transaction as part of Fannie Mae’s ongoing effort to increase the role of private capital in the ... Read the full article
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