The “deep cede” captive reinsurance program offered by PMI Mortgage Insurance passes muster as a legitimate transfer of risk at a reasonable economic cost, according to a consultant study released by the private MI. MI industry observers have questioned the role of captive reinsurance programs through which private MIs share up to 40 percent of the premiums received with reinsurance entities owned by mortgage lenders. Several private MIs last year tried to scale back their…