AM Best Affirms Credit Ratings of Enact Re Ltd.
- October 02, 2026 08:51 AM (EDT)
//BestWire// - AM Best has affirmed the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a-” (Excellent) of Enact Re Ltd. (ERL) (Bermuda). The outlook of these Credit Ratings (ratings) is stable.
ERL is a Class 3A Bermuda reinsurer and a direct subsidiary of Enact Mortgage Insurance Corporation (EMIC) (North Carolina), the flagship private mortgage insurer within the Enact Holdings, Inc. (EHI) (Delaware) organization. ERL provides quota share reinsurance to EMIC.
The ratings of ERL reflect its balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM). The ratings also reflect rating enhancement that ERL receives due to its close relationship with EMIC.
ERL’s balance sheet strength assessment of very strong is supported by risk-adjusted capitalization that is at the very strong level on a stressed and unstressed basis, as measured by Best’s Capital Adequacy Ratio. While ERL’s BCAR may fluctuate as it expands its credit insurance business, the company is projected to stay at the very strong or strong levels for the near term. ERL continues to build equity through retained earnings.
AM Best assesses ERL’s operating performance as adequate. The company’s net income has grown each year since it began assuming risk in 2023. ERL assumes mortgage insurance risk from EMIC and benefits from the favorable performance of that business. In future years, the company’s other credit lines of business are projected to become more material to operating performance.
AM Best assesses ERL’s business profile as limited because of its concentration in lines of business, such as U.S. single-family mortgage reinsurance risk, whose performance is correlated with the performance of the broader macroeconomy.
AM Best assesses ERL’s ERM as appropriate because it is subject to the same ERM framework as EMIC, which is also assessed as appropriate. The ERM framework is commensurate with the size, nature and complexity of the business being written.
ERL is integrated within the rest of EHI by having similar management and sharing key functions such as finance, claims, underwriting and actuarial. ERL is a meaningful addition to EHI because it provides capital flexibility due to its quota share agreement with EMIC and provides a way for the organization to get exposure to other forms of risk that cannot be underwritten by EMIC.
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings (BCR), Best’s Performance Assessments (PA), Best’s Preliminary Credit Assessments (PCA) and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.