Freddie Mac Agency Credit Insurance Structure (ACIS)
Freddie Mac may periodically enter into insurance/reinsurance transactions to further transfer risk associated with a portion of its credit exposure in the residential mortgage market. This insurance-based risk sharing vehicle, Agency Credit Insurance Structure, represents a new source of private capital that will shoulder part of the credit risk associated with certain Freddie Mac loans. These transactions provide an innovative opportunity for global insurance and reinsurance companies to invest in the credit performance of select volumes of Freddie Mac’s high quality Single-Family loan portfolio.
Agency Credit Insurance Structure 1
Freddie Mac purchased an insurance policy on November 12, 2013, that was underwritten by Arch Reinsurance Ltd. and covered up to a maximum of $77.4 million of credit losses.