Bermuda-domiciled mortgage insurer Essent Group’s subsidiary Essent Guaranty has secured $399.2 million of fully collateralised excess of loss reinsurance coverage from the capital markets.
The reinsurance covers mortgage insurance policies written in September 2019 through July 2020 and is from Radnor Re 2020-2 Ltd.
Radnor Re 2020-2 Ltd is a newly formed Bermuda special purpose insurer and not a subsidiary or an affiliate of Essent Group Ltd.
The reinsurer has funded its obligations through the issuance of five classes of mortgage insurance-linked notes, with 10-year legal maturities, to eligible third party capital markets investors in an unregistered private offering.
For mortgage insurers like Essent, the capital markets and the catastrophe bond structure is now providing an effective way to source efficiently priced reinsurance protection for their mortgage insurance portfolios.
Further details of the transaction can be found in the Deal Directory of our ILS-focused sister publication, Artemis.
