Radian secures excess of loss reinsurance

US mortgage insurer Radian Guaranty Inc has obtained $484 million fully collateralized excess of loss reinsurance coverage from Eagle Re, a newly-formed Bermuda special purpose insurer.

Eagle Re has funded its reinsurance obligations by issuing five classes of mortgage insurance-linked notes (ILNs) with a 12.5-year maturity and 7-year call option to eligible third-party capital markets investors in an unregistered private offering. The ILNs are non-recourse to Radian Guaranty parent, Radian Group, and its subsidiaries and affiliates.