Capital Re Corp., a top player in the municipal bond reinsurance business, yesterday said it plans to diversify with a major push into the residential mortgage market.

At a meeting for investors and analyst, firm officials said that they will start a new unit early next year, to be called Capital Mortgage Reinsurance Co. The subsidiary will offer reinsurance to private insurance companies that guarantee residential mortgages.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.