Essent upsizes Radnor Re 2024-1 to obtain $363.4m of mortgage reinsurance

Essent Guaranty, a wholly owned subsidiary of Essent Group, has successfully closed Radnor Re 2024-1 Ltd., the firm’s tenth issuance of mortgage insurance-linked notes, which upsized and eventually completed at $363.4 million.

This is the first mortgage ILS issuance sponsored by Essent Guaranty since August 2023, and takes the company’s total number of deals over the years to 10 comprised of 43 tranches of notes, with a combined value of more than $4 billion.

With this transaction, Essent Guaranty has secured $363.4 million of fully collateralized excess of loss reinsurance coverage on mortgage insurance policies written in July 2023 through July 2024.

Initially, Essent Guaranty targeted $326.9 million of mortgage reinsurance via Radnor Re 2024-1 Ltd., a newly formed Bermuda special purpose insurer, but the deal upsized by 11% and the mortgage insurance-linked notes issued closed as follows:

$106,872,000 Class M-1A Notes with an initial interest rate of SOFR Rate plus 200 basis points;
$85,498,000 Class M-1B Notes with an initial interest rate of SOFR Rate plus 290 basis points;
$64,124,000 Class M-1C Notes with an initial interest rate of SOFR Rate plus 350 basis points;
$85,498,000 Class M-2 Notes with an initial interest rate of SOFR Rate plus 400 basis points;
$21,374,000 Class B-1 Notes with an initial interest rate of SOFR Rate plus 515 basis points.

The reinsurance obligations have been funded by Radnor Re 2024-1 Ltd. via the issuance of these five classes of mortgage insurance-linked notes, all with 10-year legal maturities, to eligible third-party capital markets investors in an unregistered private offering.

After Bermuda-based Arch Capital Group, Essent Guaranty is the second most prolific sponsor of mortgage ILS notes.

You can read all about this Radnor Re 2024-1 Ltd. mortgage insurance ILS transaction from Essent Guaranty in the Artemis Deal Directory.