Cincinnati-headquartered Core Specialty Insurance Holdings Inc. is entering the mortgage reinsurance market.
Core Specialty will provide excess of loss reinsurance on selected Freddie Mac and Fannie Mae mortgages. The company has also entered into an advisory agreement with Enact Holdings Inc. (NASDAQ:ACT), which will provide underwriting expertise, market intelligence including trends, and portfolio analysis of the written business in support of Core Specialty’s underwriting.
“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,” said Jeff Consolino, founder, president and CEO of Core Specialty. “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.”
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