Deal entails that the firm will cede a percentage of its new insurance written until the end of the year
Enact Holdings has announced a significant development for its principal legal entity, Enact Mortgage Insurance Corporation, which finalized a quota share reinsurance agreement with a diverse group of highly rated reinsurers.
The terms of the agreement, subject to certain conditions, entail that Enact will cede roughly 21% of its expected new insurance written from January 1, 2024, through December 31, 2024. This move is indicative of Enact’s strategic approach to reinsurance and risk management.
In a news release, Rohit Gupta, president and CEO of Enact, remarked on the agreement, highlighting the benefits it brings to the company.
“This transaction further diversifies our sources of capital, improves the risk profile of our new insurance written, and furthers our ability to pursue high-quality new business,” Gupta said.
Gupta also emphasized the agreement’s contribution to Enact’s ongoing pursuit of high-quality new business. He expressed gratitude for the confidence and support from the company’s reinsurance partners, underscoring their role in Enact’s mission to responsibly assist more individuals in becoming homeowners.
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