Enact Holdings, Inc., the private mortgage insurer through its insurance subsidiaries, has entered into a quota share reinsurance agreement with a broad panel of highly rated reinsurers.
This transaction is done by the company through its flagship legal entity, Enact Mortgage Insurance Corporation.
Enact will cede approximately 21% of a portion of expected new insurance written from January 1st, 2024, through December 31st, 2024 under the agreement which is still subject to certain conditions.
Rohit Gupta, President and Chief Executive Officer, Enact, commented, “We are pleased to have entered into our new quota share agreement, which gives us additional reinsurance capacity from a broad panel of highly rated reinsurers on attractive terms.
“This transaction further diversifies our sources of capital, improves the risk profile of our new insurance written, and furthers our ability to pursue high-quality new business.
“We appreciate the confidence and support shown by our reinsurance partners as we continue in our mission to responsibly help more people become homeowners.”
In the last year, Enact Mortgage Insurance Corporation entered two reinsurance agreements, in November 2023, the company had secured a $248 million fully collateralized excess of loss reinsurance coverage through the issuance of an insurance-linked note transaction with Triangle Re 2023-1 Ltd.
Meanwhile, Enact secured a 13.125% quota share reinsurance agreement with a broad panel of highly rated reinsurers in July 2023.
