Adequate competitive position reflecting the company's monoline business, leading market presence, improving operating performance, and diversified footprint in the U.S. from combined operations post UGC acquisition Intermediate U.S. mortgage insurance (MI) industry and country risk assessment. The macro environment is supportive of a continued recovery in the mortgage and housing sector Strong capitalization supported by high level of internal and external reinsurance and strong prospective earnings Moderate risk position in view of inherent product volatility Adequate financial leverage due to group providing capital support and access to capital markets partially offset by financial leverage (at the intermediate holding company) that is higher than peers. Adequate enterprise risk management with strong risk controls and satisfactory management and governance assessment are supportive
