Genworth USMI Entered Into New Captive Arrangement in 2010
How dumb can you be? Because these are regulated insurance entities, they have to disclose any reinsurance arrangements, and from reading the statutory filings, it can be seen that GEMICO entered into a new captive reinsurance agreement with one Prospect Mortgage Insurance LLC in 2010. By last year they had ceded that company over half a million in premiums. Are they that stupid to enter into a new agreement at that late date? Radian disclosed they hadn't entered into a new agreement since 2007, before the crisis hit. I guess when you are in last place amongst the surviving MIs you are desperate.
From 10K, it was apparently a quota-share captive, and not an excess-of-loss.
As of January 1, 2009, we no longer participate in excess of loss captive reinsurance transactions and we will only participate in quota share reinsurance arrangements. The majority of our excess of loss captive reinsurance arrangements are in runoff with no new books of business being added going forward; however, while this level of benefit is declining, we do continue to benefit from captive reinsurance on our 2005, 2006, 2007 and 2008 books of business. New insurance written through the bulk channel generally is not subject to these arrangements.