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Genworth Mortgage Insurance Completes First Mortgage Insurance-Linked Note Transaction

11/25/19
Obtains $302.8 million of fully collateralized excess of loss reinsurance coverage from Triangle Re

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.

Cision View original content:http://www.prnewswire.com/news-releases/genworth-mortgage-insurance-completes-first-mortgage-insurance-linked-note-transaction-300964012.html

SOURCE Genworth Mortgage Insurance

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