Essent Group Ltd. Announces Closing of $424.4 Million Reinsurance Transaction & Related Mortgage Insurance-Linked Notes Offer...
March 23 2018 - 8:00AM
Business Wire
Essent Group Ltd. (NYSE: ESNT) today announced that its wholly
owned subsidiary, Essent Guaranty, Inc., has obtained $424.4
million of fully collateralized excess of loss reinsurance coverage
on mortgage insurance policies written by Essent in 2017 from
Radnor Re 2018-1 Ltd., a newly formed Bermuda special purpose
insurer. Radnor Re is not a subsidiary or an affiliate of Essent
Group Ltd.
Radnor Re 2018-1 Ltd. has funded its reinsurance obligations
through the issuance of three classes of mortgage insurance-linked
notes with 10-year legal maturities, to eligible third party
capital markets investors in an unregistered private offering. The
senior M-1 class notes have received a rating of BBB from
Morningstar Credit Ratings, LLC.
“We are very excited to announce the closing of our inaugural
credit risk transfer transaction,” said Mark Casale, Chairman and
Chief Executive Officer. “This transaction is a significant
milestone for our company, as it expands our capital sources while
also providing a layer of protection against adverse credit losses.
Additionally, we believe that a transaction like this strengthens
our mortgage insurance franchise and enhances the role that Essent
plays in supporting a strong and robust U.S. housing finance
system.”
Forward-Looking Statements
This press release may include “forward-looking statements”
which are subject to known and unknown risks and uncertainties,
many of which may be beyond our control. Forward-looking statements
generally can be identified by the use of forward-looking
terminology such as "may," "plan," "seek," "comfortable with,"
"will," "expect," "intend," "estimate," "anticipate," "believe" or
"continue" or the negative thereof or variations thereon or similar
terminology. Actual events, results and outcomes may differ
materially from our expectations due to a variety of known and
unknown risks, uncertainties and other factors. Although it is not
possible to identify all of these risks and factors, they include,
among others, the following: 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 or the loss of a significant
customer; 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; decline in the
volume of low down payment mortgage originations; uncertainty of
loss reserve estimates; decrease in the length of time our
insurance policies are in force; deteriorating economic conditions;
the definition of "Qualified Mortgage" reducing the size of the
mortgage origination market or creating incentives to use
government mortgage insurance programs; the definition of
"Qualified Residential Mortgage" reducing the number of low down
payment loans or lenders and investors seeking alternatives to
private mortgage insurance; the implementation of the Basel III
Capital Accord discouraging the use of private mortgage insurance;
non-U.S. operations becoming subject to U.S. Federal income
taxation; becoming considered a passive foreign investment company
for U.S. Federal income tax purposes; and other risks and factors
described in Part I, Item 1A “Risk Factors” of our Annual Report on
Form 10-K for the year ended December 31, 2017 filed with the
Securities and Exchange Commission on February 20, 2018. Any
forward-looking information presented herein is made only as of the
date of this press release, and we do not undertake any obligation
to update or revise any forward-looking information to reflect
changes in assumptions, the occurrence of unanticipated events, or
otherwise.
About the Company
Essent Group Ltd. (NYSE: ESNT) is a Bermuda-based holding
company (collectively with its subsidiaries, “Essent”) which,
through its wholly-owned subsidiary Essent Guaranty, Inc., offers
private mortgage insurance for single-family mortgage loans in the
United States. Essent provides private capital to mitigate mortgage
credit risk, allowing lenders to make additional mortgage financing
available to prospective homeowners. Headquartered in Radnor,
Pennsylvania, Essent Guaranty, Inc. is licensed to write mortgage
insurance in all 50 states and the District of Columbia, and is
approved by Fannie Mae and Freddie Mac. Essent also offers
mortgage-related insurance, reinsurance and advisory services
through its Bermuda-based subsidiary, Essent Reinsurance Ltd.
Additional information regarding Essent may be found at
www.essentgroup.com and www.essent.us.
Source: Essent Group Ltd.
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Essent Group Ltd.Media
Contact610-230-0556media@essentgroup.comorInvestor Relations
ContactChristopher G. CurranSenior Vice President – Investor
Relations855-809-ESNTir@essentgroup.com
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