Euclid Program Managers launches Euclid Mortgage

Euclid Program Managers announced the launch of Euclid Mortgage, a managing general underwriter underwriting mortgage credit risk on behalf of insurers and reinsurers.

The company is being formed by Joe Monaghan and Joe Hissong. Monaghan will be the company’s Managing Principal and Chief Executive Officer, after leading the development of the post-GFC mortgage reinsurance market at Aon, which maintains a leading market position in the space. Hissong joins as the Chief Operating Officer of the company. Hissong was a founding investor and board member on behalf of PartnerRe in Essent Group, and later served as President of Essent’s Bermuda reinsurer, where he led the establishment of its MGA.

“Euclid Mortgage fills a void in the market and provides immediate and scalable access to the highly profitable and diversifying mortgage reinsurance market. We aim to be a market leader in capacity, technology, and innovation. It is an ideal time to launch Euclid Mortgage. This segment has generated more than $11 billion of profit for reinsurers since the Great Financial Crisis and has shown that it can weather substantial spikes in defaults like we observed during the COVID pandemic. Mortgage originations are poised to grow significantly as and when mortgage rates decline, and that will generate additional reinsurance demand as well as opportunities for structural innovation.” – Joe Monaghan.

“We believe the combination of our experience, digital platform, scope of services, and the fact that we operate across the entire US mortgage reinsurance market offers unique and compelling value to our carrier partners. We will utilize best in class analytics combining third party and proprietary models which will drive highly accretive and stable returns for our carrier partners and deliver structural innovation, tailored solutions, and reliable costs for cedents.” – Joe Hissong.

“We believe we have assembled the ‘Dream Team’ of mortgage (re)insurance experts at Euclid Mortgage. No one can match their expertise, contacts, or portfolio optimization analytics, and we are delighted to partner with them.” – John Colis, President and CEO of Euclid Insurance Services.