Essent obtains excess of loss reinsurance coverage

Essent Guaranty has obtained $333.8 million of fully collateralised excess of loss reinsurance coverage on mortgage insurance policies written in 2015 and 2016 from Radnor Re 2019-2, a newly formed Bermuda special purpose insurer.

Radnor Re 2019-2, which is not affiliated with Essent Group, has funded its reinsurance obligations through the issuance of three classes of mortgage insurance-linked notes to investors in an unregistered private offering. The three issues, all with 10-year maturities, comprise $125.7 million of notes with an initial interest rate of one-month LIBOR plus 120 basis points; $186.4 million of notes with an initial interest rate of one-month LIBOR plus 175 basis points; and $21.7 million of notes with an initial interest rate of one-month LIBOR plus 270 basis points.

Essent Guaranty is a subsidiary of Bermuda-based re/insurance provider Essent Group.