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NMI Holdings, Inc. Enters Into New Quota Share Reinsurance Arrangement
EMERYVILLE, Calif., June 01, 2020 (GLOBE NEWSWIRE) -- NMI Holdings, Inc. (Nasdaq: NMIH) today announced that National Mortgage Insurance Corporation (National
About this update from Nmi Holdings Inc
[{"type":"text","content":"EMERYVILLE, Calif., June 01, 2020 (GLOBE NEWSWIRE) -- NMI Holdings, Inc. (Nasdaq: NMIH) today announced that National Mortgage Insurance Corporation (National MI), its wholly-owned insurance subsidiary, has entered into a new quota share reinsurance arrangement, subject to customary approvals, with a broad panel of highly rated reinsurers. \n Under the new agreement, National MI will cede, subject to certain limitations, exclusions, and conditions, 10.5% of its primary new insurance written for the period from April 1, 2020 through December 31, 2020. The ceded percentage may be increased with additions to the reinsurance panel. The company will receive a ceding commission equal to 20% of ceded premiums, as well as a profit commission of up to 50% of ceded premiums, reduced by any losses ceded under the agreement. Adam Pollitzer, Chief Financial Officer of National MI, said, “We are pleased with our ability to secure additional reinsurance capacity at this time. This transaction builds upon the success we have achieved in the risk transfer markets to date and is particularly valuable in light of the COVID-19 outbreak. Our ability to secure coverage in the current environment broadly demonstrates the durability of reinsurance markets as a source of support for mortgage insurance risk and highlights the confidence that our reinsurance partners have in our front-end pricing and credit risk management approach. This treaty provides us with an expanded ability to pursue incremental, high-quality new business production and support our lender customers and their borrowers in the current market.” About National MINational Mortgage Insurance Corporation (National MI), a subsidiary of NMI Holdings, Inc. (NASDAQ: NMIH), is a U.S.-based, private mortgage insurance company enabling low down payment borrowers to realize home ownership while protecting lenders and investors against losses related to a borrower's default. To learn more, please visit www.nationalmi.com. Cautionary Note Regarding Forward-Looking StatementsCertain statements contained in this press release or any other written or oral statements made by or on behalf of the Company in connection therewith may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the \"Securities Act\"), Section 21E of the Securities Excha...