Mortgage Insurance Linked Notes news

U.S. mortgage insurer Radian Guaranty, part of the Radian Group, is back in the capital markets with its first mortgage insurance-linked securities (ILS) issuance since the COVID-19 pandemic outbreak, as it seeks $390.3 million of collateralised reinsurance through an Eagle Re 2020-2 Ltd. transaction.

Essent Guaranty has returned to the capital markets in recent weeks with a successful new issuance of mortgage insurance-linked notes, as a Radnor Re 2020-2 Ltd. transaction helped it add $399.2 million of excess of loss mortgage reinsurance backed by capital market investors.

Fitch Ratings has reviewed a number of outstanding mortgage insurance-linked securities (ILS) deals sponsored by Bermuda-based insurance and reinsurance group Arch Capital Group, noting the substantial increase in mortgage delinquencies due to the Covid-19 pandemic.

Arch Capital Group Ltd., the Bermuda headquartered insurance and reinsurance firm with a growing mortgage insurance arm, successfully secured its second mortgage insurance-linked securities (ILS) transaction of 2020, upsizing the Bellemeade Re 2020-2 Ltd. transaction to $423 million at close.

Arch Capital Group Ltd., the Bermuda headquartered insurance and reinsurance firm with a growing mortgage insurance arm, is returning to the capital markets to secure its second mortgage insurance-linked securities (ILS) transaction of 2020, with a $363 million Bellemeade Re 2020-2 Ltd. transaction.

Analysts at KBW highlight that because the latest mortgage insurance-linked securities (ILS) deal sponsored by Bermudian insurance and reinsurance firm Arch Capital attaches so high up, the deal will not deliver the Private Mortgage Insurer Eligibility Requirements (PMIERs) capital credit its previous mortgage ILS have.

After a pause during the peak of the Covid-19 pandemic, investors are returning to the mortgage insurance-linked securities (ILS) market, helping specialist mortgage insurer NMI Holdings, Inc. to successfully price its latest and fourth deal, a $322 million Oaktown Re IV Ltd. transaction.

As expected, U.S. focused mortgage insurer Essent Guaranty has reported that all of its mortgage insurance-linked securities (ILS) transactions outstanding are now subject to a trigger event, after the Covid-19 pandemic drove delinquency rates much higher.

Arch Capital Group, the Bermuda headquartered specialist insurance and reinsurance carrier, has successfully secured $528 million of mortgage reinsurance through the completion of the first mortgage ILS deal of the Covid-19 era and by securing additional reinsurance with the assistance of broker Capsicum Re.

Three sponsors of mortgage insurance-linked securities (ILS) transactions have warned investors in the mortgage insurance linked notes that elevated loan delinquency levels in May 2020 have triggered their deals.