Enact Mortgage Insurance Enters Into a Forward XOL Reinsurance Transaction as Part of its Diversified Credit Risk Transfer Program

Rhea-AI Summary

Enact Holdings (Nasdaq: ACT) announced that Enact Mortgage Insurance Corporation secured approximately $170 million of excess of loss (XOL) reinsurance from a panel of third‑party reinsurers. The coverage is effective January 1, 2027 and covers a portion of expected new insurance written for the 2027 book year (policies written Jan. 1, 2027–Dec. 31, 2027).

Reinsurers participating in the transaction carry ratings of A- or better from S&P or A.M. Best, or A3 or better from Moody’s. Management described the deal as part of its ongoing credit risk transfer strategy and emphasized continued risk management discipline.

Positive

• Secured approximately $170 million of XOL reinsurance
• Coverage effective January 1, 2027 for the 2027 book year
• Reinsurer panel rated A- / A3 or better

Negative

• Coverage applies to only a portion of expected new insurance for 2027

Insights

Risk Capital Analyst

Enact secured ~$170 million of XOL reinsurance for the 2027 book year, strengthening its CRT layer and shifting credit risk to rated reinsurers.

Enact transfers a defined slice of first‑loss exposure for policies written Jan 1, 2027–Dec 31, 2027 to a panel of reinsurers rated at least A- (S&P/A.M. Best) or A3 (Moody’s). This reduces the primary insurer’s retained credit risk on the covered portfolio and preserves capital and capacity to write new business while keeping loss volatility more predictable.

Key dependencies and risks include the size of the ceded layer relative to actual 2027 issuance and the credit quality of the reinsurers; both are explicit facts here. The arrangement’s protective value depends on actual claims experience within the ceded layer and the reinsurers’ ability to pay; ratings cited reduce but do not eliminate counterparty risk.

Watch the company’s disclosed 2027 new insurance written volume and any follow‑on CRT transactions and public filings that specify the XOL attachment/detachment points and retained loss limits; expect these disclosures around annual planning and periodic SEC filings within the next 6–12 months.

Secures approximately $170 million of excess of loss reinsurance coverage from a panel of third-party reinsurance providers

RALEIGH, N.C., Oct. 30, 2025 (GLOBE NEWSWIRE) -- Enact Holdings, Inc. (Nasdaq: ACT) (Enact), a leading provider of private mortgage insurance through its insurance subsidiaries, today announced that its flagship legal entity, Enact Mortgage Insurance Corporation, has secured approximately $170 million of additional excess of loss (XOL) reinsurance coverage. This credit risk transfer (CRT) transaction covers a portion of expected new insurance written for the 2027 book year (policies written from January 1, 2027 through December 31, 2027), and is effective January 1, 2027. Reinsurance coverage is provided by a panel of reinsurers each currently rated “A-” or better by Standard & Poor’s (“S&P”) or A.M. Best Company, Inc., or rated “A3” or better by Moody’s.

“Today’s transaction reflects the continued successful execution of our CRT strategy,” said Rohit Gupta, President and CEO of Enact. “We remain committed to our disciplined approach to risk management and to continuing to deliver value for all our stakeholders.”

Safe Harbor Statement
This communication contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may address, among other things, our expected financial and operational results, the related assumptions underlying our expected results, guidance concerning the future return of capital and the quotations of management. These forward-looking statements are distinguished by use of words such as “will,” “may,” “would,” “anticipate,” “expect,” “believe,” “designed,” “plan,” “predict,” “project,” “target,” “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 may differ materially from the results 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 cannot predict, including risks related to an economic downturn or a recession in the United States and in other countries around the world; changes in political, business, regulatory, and economic conditions; changes in or to Fannie Mae and Freddie Mac (the “GSEs”), whether through Federal legislation, restructurings or a shift in business practices; failure to continue to meet the mortgage insurer eligibility requirements of the GSEs; competition for customers; lenders or investors seeking alternatives to private mortgage insurance; an increase in the number of loans insured through Federal government mortgage insurance programs, including those offered by the Federal Housing Administration; and other factors described in the risk factors contained in our most recent Annual Report on Form 10-K and other filings with the SEC, may cause our actual results to differ from those expressed in forward-looking statements. Although Enact believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, Enact can give no assurance that its expectations will be achieved and it undertakes no obligation to update publicly any forward-looking statements as a result of new information, future events, or otherwise, except as required by applicable law.

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.

This press release was published by a CLEAR® Verified individual.

Investor Contact
Daniel Kohl
EnactIR@enactmi.com

Media Contact
Sarah Wentz
Sarah.Wentz@enactmi.com

FAQ

What did Enact (ACT) announce on October 30, 2025 about reinsurance?

Enact said its mortgage insurance unit secured approximately $170 million of XOL reinsurance covering part of expected new insurance for the 2027 book year.

When does the Enact (ACT) XOL reinsurance coverage become effective?

The reinsurance coverage is effective January 1, 2027 and applies to policies written Jan. 1–Dec. 31, 2027.

How strong are the reinsurers backing Enact (ACT)’s XOL transaction?

The transaction is provided by a panel of reinsurers rated A- or better by S&P or A.M. Best, or A3 or better by Moody’s.

Does the Enact (ACT) transaction cover all new 2027 insurance?

No; the XOL reinsurance covers a portion of expected new insurance written for the 2027 book year.

What is the stated purpose of Enact (ACT)’s XOL reinsurance transaction?

Enact described the transaction as part of its ongoing credit risk transfer (CRT) strategy to manage mortgage credit exposure.