Essent Closes $363.4M Reinsurance Transaction
Essent Group Ltd. announced that its wholly-owned subsidiary, Essent Guaranty, Inc., has obtained $363.4 million of fully collateralized excess of loss reinsurance coverage on mortgage insurance policies written in July 2023 through July 2024 from Radnor Re 2024-1 Ltd., a newly formed Bermuda special purpose insurer.
A spokesperson said, “Radnor Re 2024-1 Ltd. is not a subsidiary or an affiliate of Essent Group Ltd.
“Radnor Re 2024-1 Ltd. has funded its reinsurance obligations through the issuance of five 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 2024-1 Ltd. consist of the following five classes:
- $106,872,000 Class M-1A Notes with an initial interest rate of SOFR Rate plus 200 basis points;
- $85,498,000 Class M-1B Notes with an initial interest rate of SOFR Rate plus 290 basis points;
- $64,124,000 Class M-1C Notes with an initial interest rate of SOFR Rate plus 350 basis points;
- $85,498,000 Class M-2 Notes with an initial interest rate of SOFR Rate plus 400 basis points;
- $21,374,000 Class B-1 Notes with an initial interest rate of SOFR Rate plus 515 basis points.
“The securities described herein have not been and will not be registered under the U.S. 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 press release shall not constitute an offer to sell or a solicitation of an offer to buy any of the aforementioned securities and shall not constitute an offer, solicitation or sale in any state or jurisdiction in which, or to any person to whom, such an offer, solicitation or sale would be unlawful.”
