Private mortgage insurance provider Enact Holdings, Inc announced that its primary legal entity, Enact Mortgage Insurance Corporation, has obtained US$225 million and US$260 million in excess of loss (XOL) reinsurance coverage for its 2025 and 2026 books of business, respectively.
The credit risk transfer (CRT) transactions cover a portion of policies written from Jan. 1 to Dec. 31 in each respective year. Both transactions will take effect on Jan. 1 of their respective years.
Enact noted that the reinsurance coverage is provided by a panel of reinsurers, all currently rated "A-" or higher by Standard & Poor’s or A.M. Best, or "A3" or better by Moody’s.
Under the terms of the agreements, Enact will cede approximately 27% of a portion of expected new insurance written for the periods between Jan. 1, 2025, and Dec. 31, 2025, and Jan. 1, 2026, and Dec. 31, 2026. The arrangements are subject to specific conditions outlined in the agreements.
Rohit Gupta (pictured above), president and CEO of Enact, said that the reinsurance agreements align with the company’s ongoing efforts to manage credit risk and enhance its financial standing.
“Looking ahead, we remain committed to continuing to successfully execute on our CRT strategy while helping people responsibly achieve the dream of homeownership,” Gupta said.
The agreements are expected to enhance Enact’s financial stability while leveraging the backing of a broad panel of reinsurers with strong credit ratings.
These partnerships are part of the company's ongoing efforts to manage its risk exposure effectively and sustain its operations in a competitive mortgage insurance market.
Enact Re also received ‘A-' long-term financial strength and issuer credit rating from S&P a few months ago. The ratings for Enact Re are aligned with those of its parent company, EMICO, as Enact Re is considered a core subsidiary of EMICO.
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