Enact Holdings, Inc.
Secures approximately $180 million in excess of loss reinsurance coverage from a group of reinsurers
RALEIGH, NC, March 08, 2023 (GLOBE NEWSWIRE) — Enact Holdings, Inc. (Nasdaq: ACT) (Enact), a leading provider of personal mortgage insurance through its insurance subsidiaries, announced today that its lead legal entity, Enact Mortgage Insurance Corporation, has secured approximately $180 million in supplemental excess of loss (XOL) reinsurance coverage. This credit risk transfer (CRT) transaction covers a portion of current and anticipated new insurance written for fiscal year 2023 (policies written from January 1, 2023 to December 31, 2023) and is effective January 1 2023. Reinsurance protection is provided by a panel of reinsurers currently rated “A-” or better by Standard & Poor’s or AM Best Company, Inc., respectively.
“This transaction reflects the continued successful execution of our CRT program, which improves our capital efficiency and our ability to spread and minimize credit risk,” said Rohit Gupta, President and CEO of Enact. “Backed by our strong capital base, we continue to evolve against our growth and risk management strategy, creating value for our shareholders and advancing our goal of helping people achieve their homeownership goals responsibly.”
Since 2015, Enact has executed approximately $4.7 billion in CRT transactions, including approximately $2.9 billion of reinsurance coverage with highly rated reinsurers and approximately $1.8 billion through our Triangle Re mortgage insurance platform .
Safe Harbor Declaration
This release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act. These forward-looking statements may relate, among other things, to our expected financial and operating results, the related assumptions underlying our expected results and quotations from management. These forward-looking statements are qualified by the use of words such as “will”, “may”, “would”, “anticipate”, “expect”, “believe”, “designed”, “plan”, “predict”, “project”, “Goal,” “could,” “should,” or “intend,” the negative of these terms, and similar references to future periods. These views involve risks and uncertainties that are difficult to predict and, accordingly, our actual results could differ materially from those discussed in our forward-looking statements. Our forward-looking statements contained herein speak only as of the date of this press release. Factors or events that we are unable to predict, including the uncertainty surrounding Covid-19 and the impact of government and other measures to contain its spread; risks related to an economic downturn or recession in the United States and elsewhere around the world; changes in political, business, regulatory and economic conditions; Changes in or to Fannie Mae and Freddie Mac (the “GSEs”), whether as a result of federal legislation, restructuring, or a change in business practices; failure to continue to meet the eligibility requirements of the GSEs’ mortgage insurers; competition for customers; Lenders or investors looking for alternatives to personal mortgage insurance; an increase in the number of loans insured by federal mortgage insurance programs, including those offered by the Federal Housing Administration; and other factors described in the risk factors included in our 2022 Annual Report on Form 10-K and other filings with the Securities and Exchange Commission, could cause our actual results to differ from those expressed in any forward-looking statements. Although Enact believes that the expectations expressed in such forward-looking statements are based on reasonable assumptions, Enact cannot guarantee that its expectations will be achieved and it undertakes no obligation to publicly update any forward-looking statements, whether as a result of new future events or otherwise , except as required by applicable law.
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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 private mortgage insurer in the United States committed to helping more people achieve their dream of home ownership. Building on a deep understanding of lender business and a proven track record of financial strength, we partner with lenders to bring world-class service, leading underwriting expertise and comprehensive risk and capital management to the mortgage process, helping to give homes to more people and keep them there. By empowering clients and their borrowers, Enact seeks to make a sustainable positive impact on the lives of people in the communities in which it operates. Enact is headquartered in Raleigh, North Carolina.
CONTACT: Investor contact Daniel Kohl [email protected] Media contact Sarah Wentz [email protected]
