MGIC Announces Changes to Captive Reinsurance Programs
26 9월 2008 - 8:00PM
PR Newswire (US)
MILWAUKEE, Sept. 26 /PRNewswire-FirstCall/ -- MGIC Investment
Corporation's primary subsidiary, Mortgage Guaranty Insurance
Corporation ("MGIC"), announced today that effective January 1,
2009 it will no longer cede new business under excess of loss
reinsurance treaties with lender captive insurance companies. Loans
reinsured through December 31, 2008 will run off pursuant to the
terms of the particular captive treaty. Quota share reinsurance
arrangements are not affected by this announcement. MGIC Investment
and MGIC have taken a series of actions in 2008 to address their
financial strength, which has been adversely impacted by higher
losses resulting from the continuing dislocation in residential
housing and related mortgage lending. In addition to this
announcement, these actions encompassed raising $840 million
through securities sales; changing underwriting guidelines;
increasing premiums; entering into a reinsurance agreement covering
new business written beginning in April 2008; amending the bank
credit facility; and selling MGIC's stake in Sherman Financial.
About MGIC MGIC (http://www.mgic.com/), the principal subsidiary of
MGIC Investment Corporation, is the nation's leading provider of
private mortgage insurance coverage with $226.4 billion primary
insurance in force covering 1.5 million mortgages as of June 30,
2008. MGIC serves 3,300 lenders with locations across the country
and in Puerto Rico, Guam and Australia, helping families achieve
homeownership sooner by making affordable low-down-payment
mortgages a reality. DATASOURCE: MGIC Investment Corporation
CONTACT: Investors, Michael J. Zimmerman, +1-414-347-6596, , or
Media, Katie Monfre, +1-414-347-2650, , both of MGIC Investment
Corporation Web site: http://www.mgic.com/
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