RICHMOND, Va., Nov. 25, 2019 /PRNewswire/ -- Genworth
Mortgage Insurance ("Genworth MI"), an operating segment of
Genworth Financial, Inc. (NYSE: GNW), today announced that its
indirect wholly owned subsidiary, Genworth Mortgage Insurance
Corporation, has obtained $302.8
million of fully collateralized excess of loss reinsurance
coverage from Triangle Re 2019-1 Ltd. ("Triangle Re") on a
portfolio of existing mortgage insurance policies written from
January 2019 through September 2019. Triangle Re is a special purpose
insurer domiciled in Bermuda and
is not a subsidiary or affiliate of Genworth Financial, Inc.
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, Inc. or
its subsidiaries and affiliates.
The ILNs consist of the following three classes:
- $134,574,000 Class M-1 Notes with
a coupon equal to one-month LIBOR plus 190 basis points
- $151,396,000 Class M-2 Notes with
a coupon equal to one-month LIBOR plus 290 basis points
- $16,821,000 Class B-1 Notes with
a coupon equal to one-month LIBOR plus 415 basis points
"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 Chief Executive Officer Rohit Gupta. "These types of capital market
transactions provide both incremental diversification of capital
sources and additional capacity at an attractive cost to
Genworth."
The securities described herein have not been and will not be
registered under the U.S. Securities Act of 1933 and may not be
offered or sold in the United
States absent registration or an applicable exemption from
registration requirements. This press release shall not constitute
an offer to sell or a solicitation of an offer to buy any of the
aforementioned securities and shall not constitute an offer,
solicitation or sale in any state or jurisdiction in which, or to
any person to whom, such an offer, solicitation or sale would be
unlawful.
About Genworth Mortgage Insurance
Genworth Mortgage
Insurance, an operating segment of Genworth Financial, Inc. (NYSE:
GNW), is headquartered in Raleigh, North
Carolina, and operates in all 50 states and the District of Columbia. Genworth Mortgage
Insurance works with lenders and other partners to help people
responsibly achieve and maintain the dream of homeownership by
ensuring the broad availability of affordable low down payment
mortgage loans. Genworth has been providing mortgage insurance
products and services in the U.S. since 1981.
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SOURCE Genworth Mortgage Insurance