Core Specialty enters mortgage reinsurance business

Core Specialty Insurance Holdings has entered the mortgage reinsurance market in collaboration with Enact Holdings.

Core Specialty will provide excess of loss reinsurance on selected Freddie Mac and Fannie Mae mortgages. As part of this initiative, Core Specialty has entered into an advisory agreement whereby Enact will provide underwriting expertise, market intelligence including trends, and portfolio analysis of the written business in support of Core Specialty’s underwriting.

Core Specialty has applied for and received approval from Government Sponsored Entities Freddie Mac and Fannie Mae as a new reinsurance counterparty participant.

“We are pleased to be entering the mortgage reinsurance market in conjunction with Enact, a recognized market leader. With annual premium income of $1 billion, the mortgage reinsurance market affords Core Specialty an attractive opportunity to create further diversification to our specialty insurance business, deploy capital at an attractive rate of return and deepen our relationship with Enact. Existing rate and capacity conditions in the mortgage reinsurance market are inviting given the desire by the GSEs to diversify reinsurance panels and changing capital markets conditions.” – Jeff Consolino, Founder, President, and CEO of Core Specialty.

“This agreement is an example of how we are further extending and expanding Enact’s platform by leveraging our expertise to pursue new opportunities, and we are pleased to be able to provide consulting support to Core Specialty as they expand into new reinsurance offerings. This relationship allows Core Specialty to leverage our deep understanding of the mortgage market as well as our analytics expertise.” – Rohit Gupta, President and CEO of Enact.