Essent Group subsidiary Essent Guaranty has obtained $557.9 million of fully collateralised excess of loss reinsurance coverage.
The coverage is on mortgage insurance policies written in August 2020 through March 2021 from Radnor Re 2021-1 Ltd., a newly formed Bermuda special purpose insurer.
Radnor Re 2021-1 Ltd. has funded its reinsurance obligations through the issuance of five classes of mortgage insurance-linked notes, with 12.5-year legal maturities, to eligible third party capital markets investors in an unregistered private offering.
The mortgage insurance-linked notes issued by Radnor Re 2021-1 Ltd. consist of the following five classes:
$139,478,000 Class M-1A Notes with an initial interest rate of SOFR Rate plus 165 basis points;
$132,504,000 Class M-1B Notes with an initial interest rate of SOFR Rate plus 170 basis points;
$153,426,000 Class M-1C Notes with an initial interest rate of SOFR Rate plus 270 basis points;
$97,634,000 Class M-2 Notes with an initial interest rate of SOFR Rate plus 315 basis points;
$34,869,000 Class B-1 Notes with an initial interest rate of SOFR Rate plus 400 basis points.
Radnor Re 2021-1 Ltd. is not a subsidiary or an affiliate of Essent Group Ltd.
