Enact Holdings has announced that its primary legal entity, Enact Mortgage Insurance Corporation, has finalized a quota share reinsurance agreement with a group of reinsurers.
Enact said that each participating reinsurer currently holds a rating of “A-” or higher from Standard & Poor’s or AM Best, or “A3” or higher from Moody’s.
The agreement, which is subject to certain conditions, will see Enact cede about 34% of a portion of its expected new insurance written between Jan. 1, 2027, and Dec. 31, 2027. The arrangement is designed to transfer a share of risk to the reinsurers while supporting Enact’s ongoing business strategy.
Rohit Gupta (pictured above), president and CEO of Enact, said, “This new quota share agreement underscores our commitment to disciplined risk management and efficient capital deployment.”
Gupta explained that the transaction is intended to support the company’s pursuit of high-quality new business and enhance the resilience of its portfolio. “We are grateful for the partnership of our reinsurers and remain focused on advancing our mission and driving long-term value creation,” he said.
This latest reinsurance deal follows similar transactions for the 2025 and 2026 books of business, where Enact secured both quota share and excess-of-loss reinsurance coverage with a broad panel of highly rated reinsurers.
Earlier this year, Enact said that the credit risk transfer (CRT) transactions, covering US$225 million and US$260 million in excess of loss (XOL) reinsurance coverage, cover a portion of policies written from Jan. 1 to Dec. 31 in 2025 and 2026, respectively.
Under the terms of the agreements, Enact will cede approximately 27% of the expected new insurance written for the periods.
Meanwhile, the quota share agreements covered approximately 25% of new insurance written, providing risk transfer and capital relief for the company.
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