Radian strikes $488m mortgage insurance-linked notes deal

Mortgage insurer Radian Guaranty, a wholly owned subsidiary of Radian Group, has obtained $488 million of fully collateralized excess of loss reinsurance coverage from Eagle Re 2020-1 (Eagle Re), a newly formed Bermuda special purpose insurer.

The excess of loss reinsurance covers eligible mortgage insurance policies written by Radian Guaranty in January through September 2019, excluding single premium payment policies.

Eagle Re has funded its reinsurance obligations by issuing five classes of mortgage insurance-linked notes (ILNs) with a 10-year maturity and 7-year call option to eligible third-party capital markets investors in an unregistered private offering.