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Mortgage Credit

Our team helps you explore the opportunities within the credit risk transfer (CRT) market. As reinsurers seek to profitably grow, CRT represents one of the most compelling value propositions in today’s market. Partner with Guy Carpenter, an innovator in this space, to get out in front of the evolving opportunities.

Helping You Capitalize on the Opportunities

Introduced in 2013, the Government Sponsored Entity (GSE) Credit Risk Transfer (CRT) program has been a tremendous success. CRT has represented an entry point for many globally diversified reinsurers to participate in a new class of credit business with limited correlation to traditional property and casualty lines.

The program has grown rapidly since its inception with Freddie Mac and Fannie Mae, the “GSEs,” transferring billions of dollars of risk to the capital and reinsurance markets every year, despite recent changes made to the Enterprise Capital Rule Framework under the prior Administration. Under the current Administration, CRT will likely evolve further.

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  • One thing remains certain: CRT is here to stay and has applications in mortgage insurance, banking and broader credit arenas.
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Credit Risk Transfer Guidance

We will remain at the center of the CRT evolution and continue to bring innovation and thought leadership to the sector. Investigating a new class of business and developing a business case can be daunting, but your Guy Carpenter team will be with you each step of the way. From signing non-disclosure agreements to reviewing past submissions and data sets, our dedicated team can:

  • walk you through the latest analytics being used to evaluate credit risk.
  • compare reinsurance market pricing to equivalent capital market pricing.
  • quantify diversification benefits.
  • estimate the capital benefits and ratings agency implications.
  • select opportunities that match your risk and return profile and appetite.
  • make introductions to the MGUs and actuarial consulting firms that counsel (re)insurers.
  • introduce you to the growing credit risk transfer opportunities, as you explore ways to grow profitably.

Powering Your Business With Insights

  • Segments

    Offering you specialized expertise that focuses market knowledge, product innovation and analytics on your unique challenges—to provide you with an enduring competitive advantage.

  • Risks

    Bringing together an unparalleled depth and breadth of capabilities and experience to turn your risks into profit and sustained growth.

  • Reinsurance Broking

    Tailoring your solutions to effectively and efficiently match the right capital with your evolving risk profile.
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