Essent Group subsidiary Essent Guaranty has obtained $439.4 million of fully collateralised excess of loss reinsurance coverage on mortgage insurance policies written in April 2021 through September 2021.
The cover was obtained from newly formed Bermuda special purpose insurer Radnor Re 2021-2.
Radnor Re 2021-2 Ltd. is not a subsidiary or an affiliate of Essent Group Ltd.
Radnor Re 2021-2 Ltd. funded its reinsurance obligations through the issuance of four classes of mortgage insurance-linked notes, with 10-year legal maturities, to eligible third party capital markets investors in an unregistered private offering.
The mortgage insurance-linked notes issued by Radnor Re 2021-2 Ltd. consist of the following four classes:
$139,534,000 Class M-1A Notes with an initial interest rate of SOFR Rate plus 185 basis points;
$147,763,000 Class M-1B Notes with an initial interest rate of SOFR Rate plus 370 basis points;
$130,382,000 Class M-2 Notes with an initial interest rate of SOFR Rate plus 500 basis points;
$21,728,000 Class B-1 Notes with an initial interest rate of SOFR Rate plus 600 basis points;
