Private mortgage insurer Enact Holdings has announced that its subsidiary, Genworth Mortgage Insurance Corporation, has secured $372 million of fully collateralized XOL reinsurance coverage through the issuance of an insurance linked note transaction with Triangle Re 2021-3 Ltd.
Triangle Re 2021-3 provides coverage on a portfolio of existing seasoned mortgage insurance policies written from January 1, 2021 through June 30, 2021.
The reinsurance obligation were funded by issuing four classes of mortgage insurance-linked notes (ILNs), which have a 12.5-year legal final maturity with a 7-year call option.
This transaction marks the sixteenth reinsurance transaction and the fifth ILN issuance for Enact, as well as the sixth credit risk transfer transaction since the COVID-19 pandemic began.
This most recent example also signifies a continuation of the company’s credit risk transfer program, which has generated $3.8 billion of excess of loss reinsurance coverage since the program began in 2015.