MI Execs Downplay Captive Re Concerns

Executive at two of the nation's largest mortgage insurers say their captive reinsurance arrangements are different from those made by title companies, and thus they are less worried about any possible investigation.Bob Quint, executive vice president and chief financial officer of Philadelphia-based Radian Group Inc., told a questioner at the Piper Jaffray Financial Services Conference that "we believe our reinsurance arrangements are true risk transfers." Furthermore, he added, the company has outside opinions saying that is the case. MGIC Investment Corp. president and chief executive Curt Culver told MortgageWire after his presentation that part of the issue Colorado had raised with the title companies is that the reinsurance arrangements did not have an actuarial opinion behind them. Milwaukee-based MGIC and its competitors get actuarial opinions for their captives and there is an actual risk transfer involved, Mr. Culver said. "Obviously we are watching what happens, but there are differences," he said.