Mortgage insurer Enact Holdings, Inc. secured the $255 million of additional excess of loss (XoL) reinsurance protection as part of its credit risk transfer (CRT) programme.
This CRT transaction covers a portion of expected new insurance written for the 2024 book year and is effective January 1st, 2024.
Enact’s flagship legal entity, Enact Mortgage Insurance Corporation, secured the XoL reinsurance from a panel of reinsurers each currently rated “A-” or better by Standard & Poor’s or A.M. Best.
Rohit Gupta, President and Chief Executive Officer (CEO) of Enact, commented: “We’re pleased to have completed this XOL transaction.
“Enact continues to be a market leader with its comprehensive CRT program and this transaction further reflects our ability to distribute and minimize credit risk and enhance our capital efficiency. Enact is well-positioned to continue delivering value for our customers and stakeholders.”
This transaction follows Enact entering into a quota share reinsurance agreement for the 2024 book year, which sees the firm cede roughly 21% of a portion of expected new insurance written from January 1st, 2024.
