In This Article:
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Adjusted Operating Income: $182 million, up 11% year over year.
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Adjusted EPS: $1.16.
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Adjusted Return on Equity: 15%.
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Adjusted Book Value Per Share: $33.27, up 3% sequentially and 10% year over year.
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Insurance in Force: $268 billion, up $2 billion sequentially and $6 billion year over year.
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Net Premiums Earned: $249 million, up 2% sequentially and year over year.
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Investment Income: $61 million, up 2% sequentially and 11% year over year.
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Reserve Release: $65 million due to favorable credit performance.
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Operating Expenses: $56 million with an expense ratio of 22%.
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Share Buybacks and Dividends: $100 million returned to shareholders in the third quarter.
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PMIER Sufficiency: 173% or $2.2 billion above requirements.
Release Date: November 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Enact Holdings Inc (NASDAQ:ACT) reported an adjusted operating income of $182 million, up 11% year over year.
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The company achieved an adjusted return on equity of 15% and an adjusted book value per share of $33.27, up 3% sequentially and 10% year over year.
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Enact Holdings Inc (NASDAQ:ACT) maintained a strong capital position with a PMIER sufficiency of 173% or $2.2 billion above requirements.
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The company successfully returned $100 million to shareholders through share buybacks and dividends in the third quarter.
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Enact Re, a strategic initiative, received an A- rating from S&P, enhancing its capital optimization and commercial opportunities.
Negative Points
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New insurance written was approximately $14 billion, flat sequentially and down 6% year over year, primarily due to lower estimated market share.
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New delinquencies rose in the quarter, driven by seasonality and the aging of newer books.
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The loss ratio increased to 5% from negative 7% in the previous quarter, primarily due to a lower reserve release and higher new delinquencies.
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Operating expenses remained flat at $56 million, with an expense ratio of 22%, indicating challenges in reducing costs.
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The company anticipates a more meaningful impact from Hurricanes Helene and Milton on delinquencies in the fourth quarter.
Q & A Highlights
Q: Can you discuss the competitive dynamics in the industry and the impact on pricing and market share? A: Rohit Gupta, President and CEO, stated that MI pricing remains competitive yet constructive, with attractive risk-adjusted returns. Enact is confident in writing new business that delivers value for shareholders, with $13.5 billion in new insurance written, reflecting strong pricing and underwriting quality.