Yahoo Finance

• Adjusted Operating Income: $201 million, up 21% sequentially and 13% year-over-year.

• Adjusted EPS: $1.27 per diluted share.

• Adjusted Return on Equity: 17%.

• Insurance In-Force: $266 billion, up 1% sequentially and 3% year-over-year.

• GAAP Net Income: $184 million or $1.16 per diluted share.

• Return on Equity: 15%.

• New Insurance Written: $14 billion, up $3 billion sequentially, down 10% year-over-year.

• Persistency: 83%, down 2 percentage points sequentially.

• Net Premiums Earned: $245 million, up 2% sequentially and 3% year-over-year.

• Investment Income: $50 million, up 5% sequentially and 17% year-over-year.

• Loss Ratio: Negative 7%.

• Reserve Release: $77 million.

• Operating Expenses: $56 million with an expense ratio of 23%.

• PMIERs Sufficiency: 169% or $2.1 billion above requirements.

• Share Repurchase: $49 million during the quarter.

• Quarterly Dividend: $29 million distributed.

• Capital Return Expectation for 2024: Between $300 million and $350 million.

• Warning! GuruFocus has detected 8 Warning Signs with BV.

Release Date: August 01, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Enact Holdings Inc (NASDAQ:ACT) reported a strong financial performance with an adjusted operating income of $201 million, up 21% sequentially and 13% year-over-year.

• The company achieved a record Insurance In-Force of $266 billion, reflecting a 1% sequential and 3% year-over-year increase.

• Enact Holdings Inc (NASDAQ:ACT) successfully issued $750 million in senior notes, marking its first investment-grade debt issuance as a public company, which will save $2 million in annual interest expense.

• The company completed a $100 million share repurchase program and announced a new $250 million authorization, with $238 million remaining.

• Enact Re, the company's platform in the GSE credit risk transfer market, continues to perform well, maintaining a strong underwriting and attractive return profile.

Negative Points

• New insurance written was down 10% year-over-year, indicating a potential slowdown in new business growth.

• Persistency decreased by 2 percentage points sequentially and 1 percentage point year-over-year, which could impact future revenue streams.

• The company faced a restructuring charge of $3 million due to a voluntary separation program, indicating potential challenges in operational efficiency.

• Enact Holdings Inc (NASDAQ:ACT) reduced its claim rate on new and existing delinquencies from 10% to 9%, reflecting ongoing economic uncertainties.

• Approximately 15% of the company's Risk In-Force was removed from credit risk transfer coverage, potentially increasing exposure to credit risk.