MGIC stake up for grabs

Mortgage insurer MGIC Australia is ready to sell a $100 million stake in its business.

According to The Australian Financial Review the insurer is in talks with several major banks, insurers and superannuation funds to bring on more capital to bolster its place in the Australian market.

Chief executive Patrick Chipman “played down” the role of the credit crisis in the sale.

According to the daily, Mr Chipman said that while the search for capital had intensified, another equity shareholder would still have been sought in normal market conditions.

“This could potentially be change of control [but] we always anticipated bringing more capital into the business so we are well placed to take advantage of opportunities in Australia,” he said.

The move follows the sale of fellow mortgage insurer PMI Australia to QBE in August.