Enact Mortgage Insurance Completes XOL Reinsurance Transaction as Part of its Diversified Credit Risk Transfer Program
September 19 2022 - 4:15PM
Enact Holdings, Inc. (“Enact”), a leading provider
of private mortgage insurance through its insurance subsidiaries,
today announced that its flagship legal entity, Enact Mortgage
Insurance Corporation, has secured approximately $201 million of
additional excess of loss (“XOL”) reinsurance coverage. This credit
risk transfer (CRT) transaction covers a portfolio of existing
mortgage insurance policies written from January 1, 2022 through
June 30, 2022, and is effective September 1, 2022. Reinsurance
coverage is provided by a panel of reinsurers each currently rated
“A-” or better by Standard & Poor’s or A.M. Best Company, Inc.
“We are pleased to have completed our third XOL reinsurance
transaction this year, which further demonstrates our success in
accessing the capital and reinsurance markets,” said Rohit Gupta,
President and CEO of Enact. “Securing additional reinsurance
coverage is an important part of our CRT program and serves to
enhance our capital efficiency and ability to distribute and
minimize credit risk. Our growth and risk management strategy
continues to be supported by Enact’s strong capital position as we
generate value for our shareholders while advancing our purpose of
helping people responsibly achieve their homeownership goals.”
This latest CRT transaction follows two XOL reinsurance
transactions executed in January and March of 2022.
Since 2015, Enact has executed approximately $4.6 billion of CRT
transactions, including approximately $2.8 billion of reinsurance
coverage with highly rated reinsurers and approximately $1.8
billion through our Triangle Re mortgage insurance linked note
platform.
Forward Looking Statements:This communication contains
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act. These forward-looking statements
may address, among other things, our expected financial and
operational results, the related assumptions underlying our
expected results, and the quotations of management. These
forward-looking statements are distinguished by use of words such
as “will,” “may,” “would,” “anticipate,” “expect,” “believe,”
“designed,” “plan,” “predict,” “project,” “target,” “could,”
“should,” or “intend,” the negative of these terms, and similar
references to future periods. These views involve risks and
uncertainties that are difficult to predict and, accordingly, our
actual results may differ materially from the results discussed in
our forward-looking statements. Our forward-looking statements
contained herein speak only as of the date of this press release.
Factors or events that we cannot predict, including uncertainty
around Covid-19 and the effects of government and other measures
seeking to contain its spread; risks related to an economic
downturn or recession in the United States and in other countries
around the world; changes in political, business, regulatory, and
economic conditions; changes in or to Fannie Mae and Freddie Mac
(the “GSEs”), whether through Federal legislation, restructurings
or a shift in business practices; failure to continue to meet the
mortgage insurer eligibility requirements of the GSEs; competition
for customers; lenders or investors seeking alternatives to private
mortgage insurance; an increase in the number of loans insured
through Federal government mortgage insurance programs, including
those offered by the Federal Housing Administration; and other
factors described in the risk factors contained in our 2021 Annual
Report on Form 10-K and other filings with the Securities and
Exchange Commission, may cause our actual results to differ from
those expressed in forward-looking statements. Although Enact
believes the expectations reflected in such forward-looking
statements are based on reasonable assumptions, Enact can give no
assurance that its expectations will be achieved and it undertakes
no obligation to update publicly any forward-looking statements as
a result of new information, future events, or otherwise, except as
required by applicable law.
About Enact Holdings, Inc.Enact (Nasdaq: ACT),
operating principally through its wholly-owned subsidiary Enact
Mortgage Insurance Corporation since 1981, is a leading U.S.
private mortgage insurance provider committed to helping more
people achieve the dream of homeownership. Building on a deep
understanding of lenders' businesses and a legacy of financial
strength, we partner with lenders to bring best-in-class service,
leading underwriting expertise, and extensive risk and capital
management to the mortgage process, helping to put more people in
homes and keep them there. By empowering customers and their
borrowers, Enact seeks to positively impact the lives of those in
the communities in which it serves in a sustainable way. Enact is
headquartered in Raleigh, North Carolina.
Investor Contact
Daniel Kohl
EnactIR@enactmi.com
Media Contact
Brittany Harris-Flowers
brittany.harris-flowers@enactmi.com
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