that's gonna be a problem for usmi, as of 3/31 they had $400M of MIC stock, the problem is, they only had $800M of capital left, MIC stock was at 22 on 3/31, now it is at 19, if it closes at 19 or below on 6/30, that is at least $50M in capital loss for usmi, they are already above statutory limits, and will likely lose money in Q2, so the question becomes, how much worse will North Carolina let them get before they shut them down?, we know RMIC was shut down at 45:1, is NC really going to let GNW get much above that?, I wouldn't bet on it, maybe the regulators will finally do what Frazier never had the brains/guts to do, and get GNW out of the usmi business.
paid, that is a very good point about the MIC shares supporting USMI. However, USMI book is about $1b. in contrast, RFIG (from ORI) has a NEGATIVE book value of $17m and is expecting more losses for at least a couple of years. and it is still being spunoff. so MIC dropping some does not really change things too much.