AIA signs up with HKMC

PUBLISHED : Friday, 25 June, 1999, 12:00am
UPDATED : Friday, 25 June, 1999, 12:00am

American International Assurance (AIA) has become the fourth company to provide mortgage reinsurance to the Hong Kong Mortgage Corp (HKMC).

The other three reinsurers are PMI Mortgage Insurance, Hang Seng Insurance and Asia Insurance.

The HKMC provides mortgage insurance to banks on up to 15 per cent of the value of residential properties on which they have extended loans.

The HKMC then hedges its exposure with reinsurance agreements.

As of Wednesday, the HKMC had received 740 applications from 22 banks, involving a total mortgage amount of $1.56 billion, or an insured amount of $293 million.