Essent Closes $439.4M Reinsurance Transaction
Essent Group announced that its wholly-owned subsidiary, Essent Guaranty, Inc., has obtained $439.4 million of fully collateralized excess of loss reinsurance coverage on mortgage insurance policies written in April 2021 through September 2021 from Radnor Re 2021-2 Ltd., a newly formed Bermuda special purpose insurer.
“Radnor Re 2021-2 Ltd. is not a subsidiary or an affiliate of Essent Group Ltd,” the company noted. “Radnor Re 2021-2 Ltd. has funded its reinsurance obligations through the issuance of four 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 2021-2 Ltd. consist of the following four classes:
- $139,534,000 Class M-1A Notes with an initial interest rate of SOFR Rate plus 185 basis points;
- $147,763,000 Class M-1B Notes with an initial interest rate of SOFR Rate plus 370 basis points;
- $130,382,000 Class M-2 Notes with an initial interest rate of SOFR Rate plus 500 basis points;
- $21,728,000 Class B-1 Notes with an initial interest rate of SOFR Rate plus 600 basis points.”
