National Mortgage Insurance secures $322m of ILS protection

National Mortgage Insurance Corporation, a US mortgage company, has secured $322 million of fully collateralized excess of loss reinsurance protection for losses on its mortgage portfolio within certain parameters.

The 10-year mortgage insurance-linked notes were issued by Oaktown Re IV, a newly formed Bermuda special-purpose insurer. The notes were offered for sale to eligible third-party investors in an unregistered private offering.

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.