Essent Group unveils $424.4m ILS deal
Bermuda-based mortgage insurance provider Essent Group has closed a $424.4 million reinsurance transaction and related mortgage insurance-linked notes offering.
The mortgage ILS deal will provide the group's subsidiary Essent Guaranty with a fully collateralized excess of loss reinsurance coverage on mortgage insurance policies written by Essent in 2017.
Radnor Re 2018-1, 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 eligible third-party capital markets investors in an unregistered private offering.
Essent CEO Mark Casale, said: “This transaction is a significant milestone for our company, as it expands our capital sources while also providing a layer of protection against adverse credit losses.
"Additionally, we believe that a transaction like this strengthens our mortgage insurance franchise and enhances the role that Essent plays in supporting a strong and robust US housing finance system.”
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