Essent Group closes $333.8m mortgage ILS deal

Bermuda-based mortgage insurance provider Essent Group, a subsidiary of Essent Guaranty, has closed a $333.8 million reinsurance transaction and related mortgage insurance-linked notes offering.

The mortgage ILS deal will provide the group with a fully collateralised excess of loss reinsurance coverage on mortgage insurance policies written by Essent in 2015 and 2016.

Radnor Re 2019-2, a newly formed Bermuda special purpose insurer, has funded its reinsurance obligations through the issuance of three classes of mortgage insurance-linked notes with 10-year legal maturities to investors in an unregistered private offering.

The mortgage insurance linked-notes issued include $125.7 million of notes with an initial interest rate of one-month LIBOR plus 120 basis points; $186.4 million of notes with an initial interest rate of one-month LIBOR plus 175 basis points; and $21.7 million of notes with an initial interest rate of one-month LIBOR plus 270 basis points.

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