Essent Warranty, an entirely owned subsidiary of Essent Group, has efficiently closed Radnor Re 2024-1 Ltd., the agency’s tenth issuance of mortgage insurance-linked notes, which upsized and ultimately accomplished at $363.4 million.
That is the primary mortgage ILS issuance sponsored by Essent Warranty since August 2023, and takes the corporate’s whole variety of offers over time to 10 comprised of 43 tranches of notes, with a mixed worth of greater than $4 billion.
With this transaction, Essent Warranty has secured $363.4 million of totally collateralized extra of loss reinsurance protection on mortgage insurance coverage insurance policies written in July 2023 by way of July 2024.
Initially, Essent Warranty focused $326.9 million of mortgage reinsurance through Radnor Re 2024-1 Ltd., a newly shaped Bermuda particular function insurer, however the deal upsized by 11% and the mortgage insurance-linked notes issued closed as follows:
- $106,872,000 Class M-1A Notes with an preliminary rate of interest of SOFR Price plus 200 foundation factors;
- $85,498,000 Class M-1B Notes with an preliminary rate of interest of SOFR Price plus 290 foundation factors;
- $64,124,000 Class M-1C Notes with an preliminary rate of interest of SOFR Price plus 350 foundation factors;
- $85,498,000 Class M-2 Notes with an preliminary rate of interest of SOFR Price plus 400 foundation factors;
- $21,374,000 Class B-1 Notes with an preliminary rate of interest of SOFR Price plus 515 foundation factors.
The reinsurance obligations have been funded by Radnor Re 2024-1 Ltd. through the issuance of those 5 courses of mortgage insurance-linked notes, all with 10-year authorized maturities, to eligible third-party capital markets traders in an unregistered personal providing.
After Bermuda-based Arch Capital Group, Essent Warranty is the second most prolific sponsor of mortgage ILS notes.
You may learn all about this Radnor Re 2024-1 Ltd. mortgage insurance coverage ILS transaction from Essent Warranty within the Artemis Deal Directory.
