MGIC Investment Corp. (MTG)

[tommiegun54]

RADIAN ANNOUNCES THE COMPLETION OF $455 MIL MORT-LINKED NOTES TRANSACTION

Previously, a week ago MGIC INVESTMENT MANAGEMENT completed their $355 MILLION MORTGAGE linked notes deal.

Last week I issued the risk to capital ratios for the four leading PMI COMPANIES. MGICINVESTMENT was the lowest. See this board for details.

"Radian Executes Mortgage Insurance Industry’s First Simultaneous ILN and XOL Reinsurance Placement
By Business Wire, November 15, 2018, 04:30:00 PM EDT



Combined placement totals $455 million, comprised of $434 million of mortgage insurance-linked notes and $21 million of excess-of-loss reinsurance coverage

PHILADELPHIA--(BUSINESS WIRE)-- Radian Group Inc. (NYSE:RDN) today announced that its wholly owned subsidiary, Radian Guaranty Inc., has obtained $434 million of credit risk protection from Eagle Re 2018-1 Ltd. (Eagle Re) through the issuance by Eagle Re of mortgage insurance-linked notes (ILNs) to eligible third-party capital markets investors in an unregistered private offering. Eagle Re is a special purpose insurer domiciled in Bermuda and is not a subsidiary or affiliate of Radian Guaranty. In addition, Radian Guaranty has agreed to terms with a third-party global reinsurer on a separate excess of loss (XOL) reinsurance agreement for $21 million of protection. The ILNs and XOL transfer risk on the same portfolio of eligible mortgage insurance policies issued by Radian Guaranty between January 2017 and December 2017, with the XOL covering a pro rata portion of the risk alongside certain classes of the ILNs.

"At Radian, we have a successful track record of sourcing, underwriting, managing and distributing mortgage credit risk, and we are pleased to execute this combined transaction that is the first of its kind in our industry," said Radian's Chief Executive Officer Rick Thornberry. "We believe there are a number of strategic benefits from leveraging and regularly accessing both the capital and reinsurance markets to distribute risk, including a reduction in our overall cost of capital, increased capital efficiency, and most importantly, the opportunity to reduce portfolio and financial volatility through economic cycles."