Core Specialty Insurance has formed a partnership with mortgage insurance provider Enact to enter the mortgage reinsurance business.
Excess of loss reinsurance will be offered by Core Specialty on chosen Freddie Mac and Fannie Mae mortgages.
Government-sponsored entities (GSEs) Freddie Mac and Fannie Mae have approved Core Specialty as a reinsurance counterparty member.
Core Specialty also signed an advisory agreement under the new collaboration.
According to the advisory deal, Enact will offer underwriting capabilities, market data and portfolio assessment of the written business to back underwriting of Core Specialty.
Core Specialty founder, president and CEO Jeff Consolino said: “With annual premium income of $1bn, the mortgage reinsurance market affords Core Specialty an attractive opportunity to create further diversification to our speciality insurance business, deploy capital at an attractive rate of return and deepen our relationship with Enact.
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“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.”
Core Specialty offers a varied portfolio of property and casualty insurance offerings for small-sized to mid-sized enterprises.
Focusing on specialised markets, regional distribution and enhanced underwriting knowledge, the company extends standard and novel insurance solutions to meet the customers’ and brokers’ requirements.
In October 2022, Core Specialty acquired the excess and surplus (E&S) lines business of US-based property and casualty insurer Hallmark Financial Services for a $40m cash deal.