Date: July 16, 2009
For more information contact: Jim Guidry, (608) 264-6239 or jim.guidry@wisconsin.gov
Media Advisory
Insurance Commissioner Announces MGIC Changes
Madison, WI—Wisconsin Insurance Commissioner Sean Dilweg today announced that, in response to a request by Mortgage Guaranty Insurance Corporation (MGIC), he has permitted the company to reactivate its subsidiary, MGIC Indemnity Corporation, to begin offering mortgage guaranty insurance.
"We have been working closely with our fellow insurance regulators, MGIC, the Federal Housing Finance Agency, and others to assist the home mortgage market by making sure mortgage insurance is available," said Dilweg. "MGIC's strategy to reactivate its subsidiary and capitalize it with up to $1 billion—beginning with an initial contribution of $500 million—will go a long way toward continuing the availability of mortgage insurance for homeowners with low downpayment mortgages."
The Wisconsin Office of the Commissioner of Insurance has worked closely with MGIC, reviewing changes to their business plan that make this transaction possible. The MGIC Indemnity reactivation transaction was authorized today pursuant to Wisconsin's insurance laws.
Created by the Legislature in 1871, Wisconsin's Office of the Commissioner of Insurance (OCI) was vested with broad powers to ensure that the insurance industry responsibly and adequately met the insurance needs of Wisconsin citizens. Today, OCI's mission is to lead the way in informing and protecting the public and responding to its insurance needs.