Essent Group Ltd. Announces Closing of $237.9 Million Reinsurance Transaction and Related Mortgage Insurance-Linked Notes
September 22 2022 - 6:30AM
Business Wire
Essent Group Ltd. (NYSE: ESNT) announced today that its
wholly-owned subsidiary, Essent Guaranty, Inc., has obtained $237.9
million of fully collateralized excess of loss reinsurance coverage
on mortgage insurance policies written in October 2021 through July
2022 from Radnor Re 2022-1 Ltd., a newly formed Bermuda special
purpose insurer. Radnor Re 2022-1 Ltd. is not a subsidiary or an
affiliate of Essent Group Ltd.
Radnor Re 2022-1 Ltd. has funded its reinsurance obligations
through the issuance of four classes of mortgage insurance-linked
notes, with 10-year legal maturities, to eligible third-party
capital markets investors in an unregistered private offering.
The mortgage insurance-linked notes issued by Radnor Re 2022-1
Ltd. consist of the following four classes:
- $84,118,000 Class M-1A Notes with an initial interest rate of
SOFR Rate plus 375 basis points;
- $88,325,000 Class M-1B Notes with an initial interest rate of
SOFR Rate plus 675 basis points;
- $49,069,000 Class M-2 Notes with an initial interest rate of
SOFR Rate plus 850 basis points; and
- $16,356,000 Class B-1 Notes with an initial interest rate of
SOFR Rate plus 1050 basis points.
The securities described herein have not been and will not be
registered under the U.S. Securities Act of 1933 and may not be
offered or sold in the United States absent registration or an
applicable exemption from registration requirements. This press
release shall not constitute an offer to sell or a solicitation of
an offer to buy any of the aforementioned securities and shall not
constitute an offer, solicitation or sale in any state or
jurisdiction in which, or to any person to whom, such an offer,
solicitation or sale would be unlawful.
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," "will,"
“should,” “expect,” "plan," "anticipate," "believe," “estimate,”
“predict,” or "potential" 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: the impact of COVID-19 and
related 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; deteriorating economic
conditions (including inflation, rising interest rates and other
adverse economic trends); an increase in the number of loans
insured through Federal government mortgage insurance programs,
including those offered by the Federal Housing Administration;
decline in new insurance written and franchise value due to loss of
a significant customer; decline in the volume of low down payment
mortgage originations; 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; a decrease in the length of time that insurance
policies are in force; uncertainty of loss reserve estimates; our
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, 2021 filed with the
Securities and Exchange Commission on February 16, 2022, as
subsequently updated through other reports we file with the
Securities and Exchange Commission. 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. Essent is committed to supporting environmental,
social and governance (“ESG”) initiatives that are relevant to the
company and align with the companywide dedication to responsible
corporate citizenship that positively impacts the community and
people served. Additional information regarding Essent may be found
at www.essentgroup.com and www.essent.us.
Source: Essent Group Ltd.
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version on businesswire.com: https://www.businesswire.com/news/home/20220922005113/en/
Media 610.230.0556 media@essentgroup.com
Investor Relations Philip Stefano Vice President,
Investor Relations 855-809-ESNT ir@essentgroup.com
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