Genworth Mortgage Insurance completes mortgage insurance-linked note transaction

North Carolina-based Genworth Mortgage Insurance Corporation has obtained $302.8 million of fully collateralized excess of loss reinsurance coverage from Triangle Re on a portfolio of existing mortgage insurance policies written from January 2019 through September 2019.

Genworth Mortgage Insurance Corporation is an indirect wholly owned subsidiary of Genworth Mortgage Insurance, an operating segment of Genworth Financial. Triangle Re is a special purpose insurer domiciled in Bermuda and is not a subsidiary or affiliate of Genworth Financial.

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, to qualified institutional investors in an unregistered private offering. The ILNs are non-recourse to Genworth Financial or its subsidiaries and affiliates.

“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,” said Genworth MI’s CEO Rohit Gupta. “These types of capital market transactions provide both incremental diversification of capital sources and additional capacity at an attractive cost to Genworth.”

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