The insurer financial strength rating on CMG Mortgage Insurance Co. (CMG MI) is based on its leadership position within its niche credit union market, the strong credit quality of credit union customers coupled with conservative underwriting philosophy, and its effective use of operational support from its parents. Offsetting these strengths is the difficult macroeconomic environment, which caused CMG MI to report weak operating results in 2009 and will continue to impair its results in 2010. As well, CMG MI faces heightened competition within its niche and is dependent on its parents for operational support. CMG MI enjoys a strong competitive position in the credit union segment of the mortgage insurance market. Further, its effective use of its parents' expertise gives
