Enact enters into 34% quota share reinsurance agreement

Enact Mortgage Insurance Corporation, the flagship legal entity of mortgage insurer Enact Holdings, Inc., has entered into a quota share reinsurance agreement with a broad panel of highly rated reinsurers, subject to certain conditions.

Under the agreement, Enact will cede approximately 34% of a portion of expected new insurance written for the period from January 1st, 2027, through December 31st, 2027.

Rohit Gupta, President and Chief Executive Officer, Enact, commented, “This new quota share agreement underscores our commitment to disciplined risk management and efficient capital deployment.

“The transaction supports our pursuit of high-quality new business and improves the resilience of our portfolio. We are grateful for the partnership of our reinsurers and remain focused on advancing our mission and driving long-term value creation.”

In December 2024, the firm had entered into two quota share reinsurance agreements, where Enact was ceding approximately 27% of a portion of expected new insurance written from January 1st, 2025, through December 31st, 2025.

Additionally, the firm was also ceding approximately 27% of the expected new insurance written again from January 1st, 2026, through December 31st, 2026.

In January 2025, Enact Mortgage Insurance 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.