Secures $248 million of fully collateralized excess of loss insurance coverage from its Triangle Re Insurance Linked Note platform
RALEIGH, N.C., Nov. 15, 2023 (GLOBE NEWSWIRE) — Enact Holdings, Inc. (Nasdaq: ACT) (Enact), a leading provider of private mortgage insurance through its insurance subsidiaries, announced that its flagship legal entity, Enact Mortgage Insurance Corporation, has secured $248 million of fully collateralized excess of loss reinsurance coverage through the issuance of an insurance-linked note (“ILN”) transaction with Triangle Re 2023-1 Ltd. (“Triangle Re 2023-1”). This ILN transaction provides coverage on a portfolio of existing seasoned mortgage insurance policies written from July 1, 2022 through June 30, 2023.
Triangle Re 2023-1 funded its reinsurance obligations by issuing four classes of mortgage ILNs, which have a 10-year legal maturity and a 5-year call option to qualified institutional investors in an unregistered private offering. The ILNs are non-recourse to Enact Holdings, Inc., or its subsidiaries and affiliates.
The mortgage insurance-linked notes issued by Triangle Re 2023-1 consist of the following four classes:
- $106 million Class M-1A Notes with an initial interest rate of one-month SOFR plus 340 basis points
- $69 million Class M-1B Notes with an initial interest rate of one-month SOFR plus 525 basis points
- $55 million Class M-2 Notes with an initial interest rate of one-month SOFR plus 650 basis points
- $18 million Class B-1 Notes with an initial interest rate of one-month SOFR plus 740 basis points
“This Triangle Re transaction marks the sixth ILN issuance for Enact and we’re very pleased with the placement which saw strong interest from investors and reinsurers”, said Rohit Gupta, President and CEO of Enact. “This transaction builds on the success of our CRT program, demonstrates our ability to access the capital markets, and further enhances the flexibility and efficiency of our capital structure for the benefit of our customers and shareholders.”
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About Enact Holdings, Inc.
Enact (Nasdaq: ACT), operating principally through its wholly-owned subsidiary Enact Mortgage Insurance Corporation since 1981, is a leading U.S. private mortgage insurance provider committed to helping more people achieve the dream of homeownership. Building on a deep understanding of lenders’ businesses and a legacy of financial strength, we partner with lenders to bring best-in-class service, leading underwriting expertise, and extensive risk and capital management to the mortgage process, helping to put more people in homes and keep them there. By empowering customers and their borrowers, Enact seeks to positively impact the lives of those in the communities in which it serves in a sustainable way. Enact is headquartered in Raleigh, North Carolina.
CONTACT: Investor Contact Daniel Kohl EnactIR@enactmi.com Media Contact Brittany Harris-Flowers Brittany.Harris-Flowers@enactmi.com