TORONTO, June 22, 2005 (PRIMEZONE) -- Reliant Home Warranty Corporation (OTCBB:RHWC), a provider of proprietary mortgage solution products announced today the conclusion of a Heads and Terms agreement with Brit Insurance Limited. This agreement will allow for a capacity of CAD 3 billion for Reliant Fractional mortgage solutions programs.
Brit is a leading and profitable U.K.-based international general insurance, reinsurance and investment group and listed in the FTSE 250 with a market capitalization of GBP 847 million as of 13 June 2005. Brit's subsidiary, Brit Insurance Limited, is a member of the Association of British Insurers and is Financial Services Authority authorized and regulated and has insurer financial strength ratings of A+ (Strong) by Fitch Ratings and A (Excellent) by A.M. Best.
To this end, Reliant will seek to incorporate a wholly owned Barbados subsidiary Reliant Insurance Company, which will offer captive insurance, risk management and administrative services to Reliant Mortgage Lending Partners, a domestic network of private mortgage lenders. These programs will enable Reliant Mortgage Lending Partners to offer innovative Interest Only and Fractional Loan to Value products as part of their mortgage suite. All Reliant Mortgage Lending Partners will be required to meet the underwriting guidelines as established by the Reliant Insurance Company (Barbados).
Kevin Hamilton, CEO of Reliant said, "The structure will allow Reliant Mortgage Lending Partners a unique and previously unavailable self insurance program to enhance their mortgage portfolio coupled with an innovative mortgage solutions suite for their consumers."
For more information on the Reliant Mortgage Program, visit the Web site at www.relianthwc.com.
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934. Any statements that express or involve discussion with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical facts may be forward-looking statements. Forward-looking statements are based on expectations, estimates and projections at the time the statements are made to involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. For a summary of such risks and uncertainties, see the Company's periodic reports and other filings with the Securities and Exchange Commission.