Essent Group closes $495.9m reinsurance transaction and related mortgage ILNs

Bermuda-based holding company Essent Group’s mortgage insurance subsidiary Essent Guaranty has obtained $495.9 million of fully collateralised excess of loss reinsurance coverage on mortgage insurance policies written by Essent in January through August 2019 from Radnor Re 2020-1, a newly formed Bermuda special purpose insurer. Radnor Re 2020-1 is not a subsidiary or an affiliate of Essent Group.

Radnor Re 2020-1 has funded its reinsurance obligations through the issuance of six classes of mortgage insurance-linked notes, with 10-year legal maturities, to eligible third-party capital markets investors in an unregistered private offering.

The securities have not been and will not be registered under the US Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

This is the fourth time that Essent has obtained mortgage reinsurance from the capital markets. It secured $424.4 million of coverage in March 2018 via Radnor Re 2018-1, $473.2 million in March 2019 via Radnor Re 2019-1, and $333.8 million in June 2019 via Radnor Re 2019-2.

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