Mortgage Guaranty Insurance Corp. will purchase $318.6 million of excess of loss reinsurance protection from a newly formed Bermuda special-purpose insurer to cover an existing portfolio of mortgage insurance policies.
Simultaneous to Mortgage Guaranty Insurance's purchase of reinsurance, the Bermuda company will issue to third-party capital markets investors the same amount of unregistered securities linked to the reinsurance coverage. The company was not identified in the filing, but was said by insurance-linked securities blog Artemis to be called Home Re 2018-1 Ltd.
The mortgage insurance-linked note offering is expected to close by the end of October, subject to market and other customary conditions.
MGIC Investment Corp. is the parent company of Mortgage Guaranty Insurance.