Essent Guaranty, which wrote its first mortgage insurance policy in the second quarter, said it has lined up $100 million of fresh capital, bringing its total equity commitments to $600 million.
The Radnor, Pa., mortgage insurer declined to identify its new investors, though a spokeswoman for the company said some of the initial investors—a group that included Pine Brook Road Partners, Goldman Sachs & Co., JPMorgan Chase & Co., PartnerRe and RenaissanceRe Ventures Ltd.—made commitments to the second capital infusion.
"At least one new investor is involved," said the spokeswoman.
Essent is licensed in all 50 states and has approvals for coverage from Fannie Mae and Freddie Mac, which control 70% of the origination market. Though Essent is writing policies after two years in start-up, it declined to give any details on how many policies it has written or its policies-in-force.
The mortgage insurance business has suffered during the housing downturn as policies-in-force declined and at least one company, Triad Guaranty in Winston-Salem, N.C., went out of business.
Essent's entry into the business means seven firms are writing policies. Another insurer is being formed.
This story has been reprinted with permission from American Banker.
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