Oaktown Re IV provides $322m of ILS protection for National Mortgage insurance
Oaktown Re IV, a newly formed Bermuda special-purpose insurer, has issued 10-year mortgage insurance-linked notes to National Mortgage Insurance Corporation (NMIC), a US mortgage company.
The notes provide NMIC with $322 million of fully collateralised excess of loss reinsurance protection for losses on its mortgage portfolio, within certain parameters.
The deal covers an existing portfolio of mortgage insurance policies written from July 2019 through March 2020. The excess of loss reinsurance coverage provides protection for aggregate losses on subject loans beginning at a 2.50 percent cumulative claim rate threshold and continuing up to an eventual 8 percent aggregate detachment level.
The notes were offered for sale to eligible third-party investors in an unregistered private offering.
12 May 2020 The Bermuda Monetary Authority registered four new re/insurance entities in April, taking the total number of new registrations in 2020 to 14.
12 May 2020 The Bermuda Monetary Authority registered four new re/insurance entities in April, taking the total number of new registrations in 2020 to 14.