Essent Group, a Bermuda-based holding company, has announced that its wholly-owned subsidiary, Essent Guaranty, Inc., has obtained $281.5 million of fully collateralized excess of loss reinsurance coverage on mortgage insurance policies.
The reinsurance applies to policies that were written in August 2022 through to June 2023 from Radnor Re 2023-1 Ltd., a newly formed Bermuda special purpose insurer.
It was specified that Radnor Re 2023-1 Ltd. is not a subsidiary or an affiliate of Essent Group Ltd.
According to the announcement, Radnor Re 2023-1 Ltd. has funded its reinsurance obligations through the issuance of four classes of mortgage insurance-linked notes.
The notes have 10-year legal maturities, and were issued to eligible third party capital markets investors in an unregistered private offering.
The notes issued by Radnor Re 2023-1 Ltd. consist of the following four classes: $99,594,000 Class M-1A Notes with an initial interest rate of SOFR Rate plus 270 basis points, $82,274,000 Class M-1B Notes with an initial interest rate of SOFR Rate plus 435 basis points, $77,943,000 Class M-2 Notes with an initial interest rate of SOFR Rate plus 585 basis points, and $21,651,000 Class B-1 Notes with an initial interest rate of SOFR Rate plus 725 basis points.
Further details on the Radnor Re issuance and every other capital markets reinsurance transaction since the market’s inception can be found in the Artemis Catastrophe Bond and Insurance-linked Securities Deal Directory.
