Essent: $557.9M Reinsurance Transaction
Essent Group Ltd. announced that its wholly-owned subsidiary, Essent Guaranty, Inc. has obtained $557.9 million of fully collateralized excess of loss reinsurance coverage on mortgage insurance policies written in August 2020 through March 2021 from Radnor Re 2021-1 Ltd, a newly formed Bermuda special purpose insurer.
A spokesperson said, “Radnor Re 2021-1 Ltd. is not a subsidiary or an affiliate of Essent Group Ltd. Radnor Re 2021-1 Ltd. has funded its reinsurance obligations through the issuance of five classes of mortgage insurance-linked notes, with 12.5-year legal maturities, to eligible third party capital markets investors in an unregistered private offering.
“The mortgage insurance-linked notes issued by Radnor Re 2021-1 Ltd. consist of the following five classes:
- $139,478,000 Class M-1A Notes with an initial interest rate of SOFR Rate plus 165 basis points;
- $132,504,000 Class M-1B Notes with an initial interest rate of SOFR Rate plus 170 basis points;
- $153,426,000 Class M-1C Notes with an initial interest rate of SOFR Rate plus 270 basis points;
- $97,634,000 Class M-2 Notes with an initial interest rate of SOFR Rate plus 315 basis points;
- $34,869,000 Class B-1 Notes with an initial interest rate of SOFR Rate plus 400 basis points;
