Enact secures additional XOL reinsurance coverage for 25/26 book years

Enact has revealed that its flagship legal entity, Enact Mortgage Insurance Corporation, has secured approximately $225 million and $260 million of additional excess of loss (XOL) reinsurance coverage.

These credit risk transfer (CRT) transactions cover a portion of the expected new insurance written for the 2025 book year (policies written from January 1, 2025, through December 31, 2025) and the 2026 book year (policies written from January 1, 2026, through December 31, 2026), respectively.

According to Enact, the reinsurance coverage for both transactions is provided by a panel of reinsurers each currently rated “A-” or better by S&P or AM Best, or rated “A3” or better by Moody’s.

Rohit Gupta, President and CEO of Enact, commented, “Today’s announcement reflects our ongoing commitment to proactively manage credit risk and strengthen our financial position.

“Looking ahead, we remain committed to continuing to successfully execute on our CRT strategy while helping people responsibly achieve the dream of homeownership.”

In related news, Enact Mortgage Insurance Corporation announced in December of last year that it had entered into two quota share reinsurance agreements.

Under these agreements, Enact will cede approximately 27% of a portion of its expected new insurance written for the periods of January 1, 2025, to December 31, 2025, and January 1, 2026, to December 31, 2026.

Enact, headquartered in Raleigh, North Carolina, has been a leading U.S. private mortgage insurance provider since 1981. As mentioned, it operates primarily through its wholly-owned subsidiary, Enact Mortgage Insurance Corporation.

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