Ratings pressure lurks beneath mortgage reinsurance

Carriers targeting growth opportunities in mortgage reinsurance
must devise strategies to effectively manage the risk if they are
to avoid downwards ratings pressure, according to Standard &
Poor's (S&P).
In a report, the ratings agency said mortgage reinsurance can be
a diversifying business for underwriters and is currently highly
profitable for reinsurers, offering "shelter from the
gloom" of soft pricing in other lines of business.
But it cautioned that, with significant exposure to