Enact secures additional $90mn XoL reinsurance cover
Mortgage insurer Enact Holdings, Inc. secured the $90 million of additional excess of loss (XoL) reinsurance protection as part of its credit risk transfer (CRT) programme.
This CRT transaction covers a portion of existing mortgage insurance policies written from July 1st, 2023 through December 31st, 2023 and is effective June 1st, 2024.
Enact’s flagship legal entity, Enact Mortgage Insurance Corporation, secured the XoL reinsurance from a panel of reinsurers each currently rated “A-” or better by Standard & Poor’s (S&P) and A.M. Best Company, Inc., and rated “A3” or better by Moody’s.
Rohit Gupta, President and Chief Executive Officer, Enact, commented, “This transaction marks another step in the successful execution of our CRT strategy.
“We remain committed to our efforts to minimize credit risk and enhance our capital efficiency while continuing to deliver value for all our stakeholders.”
In January, Enact entered into a quota share reinsurance agreement for the 2024 book year, which sees the firm cede roughly 21% of a portion of expected new insurance written from January 1st, 2024.
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