MGIC Investment Corp. (MTG) announced that its subsidiary, Mortgage Guaranty Insurance Corporation, has signed a reinsurance deal with an affiliate of HCC Insurance Holdings, Inc.
The company noted that the reinsurance deal is effective for up to $50 billion of qualifying new insurance written annually beginning April 1, 2008 and ending on December 31, 2010, subject to two one-year extensions that may be exercised by HCC.
The company stated that the reinsurance deal finalizes another step in its capital plan and is expected to offer claims-paying resources in catastrophic loss environments for insurance written beginning April 1, 2008.
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