Radian has bagged $353m in fully collateralised excess of loss reinsurance coverage through a transaction with Eagle Re 2023-1 Ltd.
This coverage encompasses eligible mortgage insurance policies underwritten by Radian Guaranty between April 1 and December 31, 2022.
Eagle Re is a newly formed Bermuda special purpose insurer and is not a subsidiary or affiliate of Radian Guaranty.
The Bermuda-based firm has funded its reinsurance obligations by issuing four classes of mortgage insurance-linked notes (ILNs) with a 10-year maturity and 5-year call option to eligible third-party capital markets investors in an unregistered private offering.
The ILNs are non-recourse to Radian Group and its subsidiaries and affiliates.
After closing, investors have the option to exchange their M-1B Notes for proportionate interests in Class M-1B-1 Notes, Class M-1B-2 Notes and Class M-1B-3 Notes (Exchangeable Notes), and the Exchangeable Notes may be exchanged for Class M-1B Notes with the same proportionate interest.
Keep up with all the latest FinTech news here
Copyright © 2023 FinTech Global