Enact Holdings, a leading provider of private mortgage insurance through its insurance subsidiaries, today announced that its flagship legal entity, Enact Mortgage Insurance Corporation, has secured approximately $325 million of additional excess of loss (“XOL”) reinsurance coverage. The credit risk transfer (CRT), which covers existing mortgage insurance policies that were written between July 1, 2021 and December 31, 2021 is effective March 1, 2020. Reinsurance coverage is provided by a panel of reinsurers each currently rated “A-” or better by Standard & Poor’s or A.M. Best Company, Inc.
“Today’s announcement reflects the continued execution of our growth and risk management strategy and demonstrates our ability to source cost-effective PMIERs capital and loss protection in a period of capital markets volatility and widening spreads,” said Enact’s President & CEO Rohit Gupta. “Enact’s CRT program allows us to participate effectively across reinsurance markets with highly rated counterparties and in the capital markets via mortgage insurance-linked notes. We select the type and structure of our CRT transactions based on several factors, including market conditions, capacity, and cost, with a focus on further strengthening our capital position and improving capital efficiency while driving shareholder value.”
The latest CRT transaction is a continuation of the forward XOL reinsurance deal executed in January 2022. It covers a portion mortgage insurance policies written between January 1, 2022 and December 31, 2022. This transaction will provide approximately $300,000,000 of reinsurance coverage through a panel of reinsurers.
Enact has completed approximately $4.4 billion in CRT transactions since 2015, including $2.6 billion of coverage with highly rated reinsurers, and $1.8 billion through Triangle Re mortgage-linked note platform.