MGIC would continue to write new business until MIC begins its operations
The Office of the Commissioner of Insurance for the State of Wisconsin (OCI) will allow a reactivation plan, under which Mortgage Guaranty Insurance Corporation (MGIC) will contribute up to $1 billion to MGIC Indemnity Corporation (MIC), a wholly-owned MGIC subsidiary. It would enable MIC to write new mortgage guaranty insurance.
The company stated that it will continue to write new business in each jurisdiction in which MGIC currently operates, until MIC begins its operations. MIC, after its approval, intends to begin writing new business.
According to the company, when MIC begins to insure new loans, it will utilise similar policy terms, conditions and pricing as then used by MGIC. It is expected that when MIC begins writing new business, MGIC would stop writing new business, and MIC will be renamed MGIC.
Under this reactivation plan, MGIC will offer human resources, risk management, information systems and technology, finance and accounting and other business infrastructure to MIC.
MGIC is a provider of private mortgage insurance coverage in the US.