United Guaranty Unveils New Structure

United Guaranty Corp., Greensboro, N.C., has introduced a reinsurance structure that allows multiple lenders to benefit from the risk- and revenue-sharing opportunities of a captive.The company said its group captive structure -- with United Guaranty Partners Insurance Co. as the "co-captive" -- is designed to enable mortgage lenders to participate immediately in a reinsurance arrangement without incurring the costs of setting up their own captive or funding the minimum statutory capital. It also allows each lender to segregate the performance of its loans from that of the other co-captive participants, United Guaranty said. United Guaranty Corp. is the holding company for United Guaranty Residential Insurance Co....Meanwhile, Amerin Corp., Chicago, has announced a similar risk- and revenue-sharing structure, the Partnership Profit Plan, under which a wider variety of lenders can participate in revenues from their insured mortgage originations without setting up their own captive reinsurance companies.