The agreement affects new insurance written annually between April 1, 2008 and Dec. 31, 2010 and includes two one-year extensions that may be exercised by HCC. MGIC said "substantially all" of the insurance it is writing qualifies under the reinsurance agreement and will help cover catastrophic losses. The cost will be about 5% the written premiums.
Chairman and Chief Executive Curt S. Culver said the reinsurance agreement completes another step in the company's capital plan. MGIC earlier this year raised nearly $1 billion.