Genworth Mortgage Insurance (Genworth MI), a subsidiary of Genworth Mortgage Insurance, has obtained $302.8 million of fully collateralised excess of loss reinsurance coverage from Triangle Re 2019-1 (Triangle Re).
The coverage was taken on a portfolio of existing mortgage insurance policies written from January 2019 through September 2019.
Triangle Re funded its reinsurance obligations by issuing three classes of mortgage insurance-linked notes (ILNs), which have a 10-year legal final maturity with a 7-year call option. They paid coupons of LIBOR plus 190bps, 290bps and 415bps, respectively.
The ILNs were distributed to qualified institutional investors in an unregistered private offering and are non-recourse to Genworth Financial or its subsidiaries and affiliates.
Triangle Re is a special purpose insurer, domiciled in Bermuda, and is not affiliated with Genworth.
Rohit Gupta, CEO at Genworth MI, said: “We are very pleased with the strong market response to our first ILN transaction. It’s an effective complement to our existing credit risk transfer program, which has now generated more than $1.6 billion of excess of loss reinsurance coverage over the course of the program’s first five years.”
Genworth Mortgage Insurance, Triangle Re, Rohit Gupta