Essent Group Ltd. (NYSE: ESNT) announced that its subsidiary, Essent Guaranty, Inc., has secured $363.4 million in fully collateralized excess of loss reinsurance coverage on mortgage insurance policies written between July 2023 and July 2024. The coverage was obtained from Radnor Re 2024-1 Ltd., a newly established Bermuda special purpose insurer. Notably, Radnor Re 2024-1 Ltd. is not affiliated with Essent Group Ltd.
Radnor Re 2024-1 Ltd. has fulfilled its reinsurance obligations by issuing five classes of mortgage insurance-linked notes with 10-year legal maturities to qualified investors in the capital markets through an unregistered private offering.
The issued mortgage insurance-linked notes are as follows:
- $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
These securities have not been registered under the U.S. Securities Act of 1933 and cannot be offered or sold in the United States without proper registration or an applicable exemption. This press release does not serve as an offer or solicitation to buy or sell these securities in any jurisdiction where such actions would be unlawful.
Forward-Looking Statements
This press release may contain “forward-looking statements,” which are subject to risks and uncertainties, some beyond our control. These statements often include terms such as “may,” “will,” “expect,” “believe,” or similar language. Actual outcomes could vary significantly from expectations due to various risks, including changes in or to Fannie Mae and Freddie Mac, failure to meet mortgage insurer eligibility requirements, competition, or deteriorating economic conditions, among others. For a detailed discussion of these risks, refer to Part I, Item 1A “Risk Factors” of our Annual Report on Form 10-K for the year ending December 31, 2023, and subsequent filings with the Securities and Exchange Commission. We are not obligated to update or revise these forward-looking statements to reflect future changes.
