Enact Mortgage Insurance Enters into Two Forward XOL Reinsurance Transactions as Part of its Diversified Credit Risk Transfer Program
Rhea-AI Summary
Enact Holdings (Nasdaq: ACT) has secured two significant excess of loss (XOL) reinsurance transactions through its subsidiary Enact Mortgage Insurance The company obtained approximately $225 million and $260 million in reinsurance coverage from highly-rated reinsurance providers.
The coverage applies to expected new insurance written for the 2025 book year (January 1 - December 31, 2025) and 2026 book year (January 1 - December 31, 2026), effective from their respective start dates. All participating reinsurers maintain strong credit ratings of 'A-' or better from S&P or A.M. Best, or 'A3' or better from Moody's.
These credit risk transfer (CRT) transactions demonstrate Enact's commitment to proactive credit risk management and financial strength enhancement.
Positive
- Secured $485 million total in new reinsurance coverage
- Coverage spans two years of new insurance written (2025-2026)
- All reinsurance providers maintain strong credit ratings
- Strengthens company's financial position through risk transfer
Negative
- None.
News Market Reaction
On the day this news was published, ACT declined NaN%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Secures approximately
RALEIGH, N.C., Jan. 27, 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
“Today’s announcement reflects our on-going commitment to proactively manage credit risk and strengthen our financial position,” said Rohit Gupta, President and CEO of Enact. “Looking ahead, we remain committed to continuing to successfully execute on our CRT strategy while helping people responsibly achieve the dream of homeownership.”
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.
FAQ
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