Enact Holdings has announced that its flagship entity, Enact Mortgage Insurance Corporation has secured $201 million of additional excess of loss (XOL) reinsurance coverage.
This credit risk transfer (CRT) transaction covers a portfolio of existing mortgage insurance policies written from January 1, 2022 through June 30, 2022, and is effective from September 1, 2022.
At the same time, reinsurance coverage is provided by a panel of reinsurers each currently rated “A-” or better by Standard & Poor’s or AM Best Company.
The CRT transaction follows two XOL reinsurance transactions that were executed in January and March, earlier this year.
Since 2015, Enact has executed approximately $4.6 billion of CRT transactions, including approximately $2.8 billion of reinsurance coverage with highly rated reinsurers and approximately $1.8 billion through the company’s Triangle Re mortgage insurance linked note platform.
Rohit Gupta, President and CEO of Enact, commented: “We are pleased to have completed our third XOL reinsurance transaction this year, which further demonstrates our success in accessing the capital and reinsurance markets.”
“Securing additional reinsurance coverage is an important part of our CRT program and serves to enhance our capital efficiency and ability to distribute and minimize credit risk.
“Our growth and risk management strategy continues to be supported by Enact’s strong capital position as we generate value for our shareholders while advancing our purpose of helping people responsibly achieve their homeownership goals.”
