RICHMOND, Va., Oct. 22, 2020 /PRNewswire/ -- Genworth Mortgage Insurance ("Genworth MI"), an operating segment of Genworth Financial, Inc. (NYSE: GNW), today announced that its flagship legal entity, Genworth Mortgage Insurance Corporation, has obtained $349.6 million of fully collateralized excess of loss reinsurance coverage from Triangle Re 2020-1 Ltd. ("Triangle Re") on a portfolio of existing mortgage insurance policies written from January 2020 through August 2020. 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 five 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 five classes:
- $ 134,854,000 Class M-1A Notes with a coupon equal to one-month LIBOR plus 300 basis points
- $ 54,940,000 Class M-1B Notes with a coupon equal to one-month LIBOR plus 390 basis points
- $ 59,935,000 Class M-1C Notes with a coupon equal to one-month LIBOR plus 450 basis points
- $ 74,919,000 Class M-2 Notes with a coupon equal to one-month LIBOR plus 560 basis points
- $ 24,973,000 Class B-1 Notes with a coupon equal to one-month LIBOR plus 775 basis points
This transaction marks the second ILN issuance for Genworth MI, representing its third credit risk transfer transaction since the COVID-19 pandemic began, and is a continuation of the company's robust credit risk transfer program, which has generated more than $2.4 billion of excess of loss reinsurance coverage over the past five years.
"I'm proud of the work we continue to do to strengthen our portfolio and balance sheet," said Genworth MI's Chief Executive Officer Rohit Gupta. "In the best of times, these actions help us effectively manage our capital—and in uncertain times, they help us weather the impact of market volatility on our portfolio and protect our balance sheet."
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.
SOURCE Genworth Mortgage Insurance