Mortgage Guaranty Insurance Corp. will purchase $315.7 million of excess of loss reinsurance protection from a newly formed Bermuda special-purpose insurer to cover an existing portfolio of mortgage insurance policies.

The special purpose insurer, which is not a subsidiary or affiliate of the company, will simultaneously issue $315.7 million of unregistered securities to third-party capital markets investors linked to the reinsurance coverage.

The mortgage insurance-linked note offering is expected to close by the end of May, subject to market and other customary conditions. There can be no assurances that such offering or the related reinsurance transaction will be completed.

Mortgage Guaranty Insurance is a unit of MGIC Investment Corp.