Essent Financial Strength Rating Upgraded
Essent Group Ltd — a Bermuda-based holding company — announced that the financial strength rating of its wholly-owned subsidiary, Essent Guaranty, Inc., has been upgraded by Moody’s Investors Service [Moody’s] to A3 from Baa1, with a stable outlook.
Moody’s rationale in support of the rating includes Essent’s strong overall credit profile and profitability in conjunction with having reinsurance coverage on the substantial majority of its high-quality insured portfolio.
“We are very pleased that our financial strength rating has been upgraded by Moody’s to A3,” said Mark Casale, Chairman and Chief Executive Officer. “This is a significant achievement for our franchise as it reflects our strong balance sheet and profitability, as well as increased utilization of reinsurance in managing long-tail mortgage credit risk.
“We believe that distributing risk through the capital and reinsurance markets has been a significant enhancement for our company as it reduces earnings volatility and protects our capital in times of stress making Essent a stronger and more sustainable franchise.”
