Enact Holdings’ subsidiary Enact Mortgage Insurance Corporation secured $170 million of excess‑of‑loss reinsurance coverage effective January 1, 2027, covering policies written during the 2027 book year.
The transaction is part of Enact’s ongoing credit‑risk‑transfer strategy, which has included $225 million of XOL coverage for 2025 and $260 million for 2026. The coverage is provided by highly rated reinsurers, reducing capital requirements and improving PMIERs sufficiency.
In Q2 2025, Enact reported revenue growth but a decline in net income and higher incurred losses, while operating costs rose and premium growth slowed. The new XOL coverage is intended to offset potential losses on new policies, allowing the company to expand underwriting while maintaining regulatory capital buffers.
Management noted that the reinsurance arrangement supports Enact’s goal of capital efficiency and positions the company to pursue additional growth opportunities in the mortgage‑insurance market amid competitive pressures.
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