Essent Closes $495.9M Reinsurance Transactions
Essent Group Ltd. announced today that its wholly owned subsidiary, Essent Guaranty, Inc., has obtained $495.9 million of fully collateralized excess of loss reinsurance coverage on mortgage insurance policies written by Essent in January through August 2019 from Radnor Re 2020-1 Ltd., a newly formed Bermuda special purpose insurer. Radnor Re 2020-1 Ltd. is not a subsidiary or an affiliate of Essent Group Ltd.
The company said, “Radnor Re 2020-1 Ltd. 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 mortgage insurance-linked notes issued by Radnor Re 2020-1 Ltd. consist of the following six classes:
- “$94,866,000 Class M-1A Notes with an initial interest rate of one-month LIBOR plus 95 basis points;
- “$133,675,000 Class M-1B Notes with an initial interest rate of one-month LIBOR plus 145 basis points;
- “$77,617,000 Class M-1C Notes with an initial interest rate of one-month LIBOR plus 175 basis points;
- “$125,051,000 Class M-2A Notes with an initial interest rate of one-month LIBOR plus 200 basis points;
- “$43,120,000 Class M-2B Notes with an initial interest rate of one-month LIBOR plus 225 basis points; and
- “$21,560,000 Class B-1 Notes with an initial interest rate of one-month LIBOR plus 300 basis points.
