Part I. Financial Information [Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) The company's total assets increased to **$6.30 billion** as of March 31, 2024, from **$6.19 billion** at year-end 2023, driven by growth in investments, while Q1 2024 net income decreased to **$161.0 million** from **$176.0 million** due to higher losses, with operating cash flow significantly increasing to **$187.3 million** Condensed Consolidated Balance Sheet Highlights | Account | March 31, 2024 ($ thousands) | December 31, 2023 ($ thousands) | | :--- | :--- | :--- | | Total Investments | 5,361,101 | 5,286,360 | | Cash and cash equivalents | 614,330 | 615,683 | | **Total Assets** | **6,303,683** | **6,190,473** | | Loss reserves | 531,443 | 518,191 | | Long-term borrowings | 746,090 | 745,416 | | **Total Liabilities** | **1,589,919** | **1,558,126** | | **Total Equity** | **4,713,764** | **4,632,347** | Condensed Consolidated Statements of Income Highlights | Account | Three months ended March 31, 2024 ($ thousands) | Three months ended March 31, 2023 ($ thousands) | | :--- | :--- | :--- | | Premiums | 240,747 | 235,108 | | Total Revenues | 291,576 | 280,939 | | Losses incurred | 19,501 | (10,984) | | Total losses and expenses | 85,655 | 56,426 | | Income before income taxes | 205,921 | 224,513 | | **Net Income** | **160,988** | **175,988** | | **Diluted EPS** | **$1.01** | **$1.08** | Condensed Consolidated Statements of Cash Flows Highlights | Activity | Three months ended March 31, 2024 ($ thousands) | Three months ended March 31, 2023 ($ thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | 187,296 | 119,339 | | Net cash provided by (used in) investing activities | (113,468) | 33,463 | | Net cash used in financing activities | (75,181) | (44,956) | | **Net (decrease) increase in cash** | **(1,353)** | **107,846** | [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail the company's residential mortgage guaranty insurance business through EMICO, highlighting a **$54 million** favorable reserve development, active reinsurance programs, and capital returns including **$0.16/share** dividends and **$36.9 million** remaining for share repurchases - The company's primary business is writing and assuming residential mortgage guaranty insurance, which protects lenders from losses on low-down-payment loans, conducted through its main subsidiary, Enact Mortgage Insurance Corporation (EMICO)[23](index=23&type=chunk)[24](index=24&type=chunk) - For Q1 2024, the company recorded a favorable reserve development of **$54 million** on prior accident years, driven by better-than-expected cure performance on delinquencies from early 2023 and prior[88](index=88&type=chunk) - The company utilizes both excess-of-loss (XOL) and quota share reinsurance agreements to reduce ultimate losses and manage exposures, with ceded premiums of **$26.4 million** in Q1 2024[89](index=89&type=chunk)[90](index=90&type=chunk)[100](index=100&type=chunk) - The company has **$750 million** in 6.5% senior notes due in 2025 and maintains an undrawn **$200 million** revolving credit facility for general corporate purposes[101](index=101&type=chunk)[104](index=104&type=chunk)[105](index=105&type=chunk) - In Q1 2024, the company paid a quarterly cash dividend of **$0.16 per share** and repurchased **1.8 million shares** for approximately **$49.7 million**, with **$36.9 million** remaining available under the share repurchase program as of March 31, 2024[117](index=117&type=chunk)[118](index=118&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=32&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Enact faced a challenging Q1 2024 with **20% decrease in NIW to $10.5 billion** due to elevated mortgage rates, yet maintained **85% persistency** and **$263.6 billion insurance in-force**, while net income fell to **$161.0 million** due to smaller reserve releases, maintaining strong capital with **163% PMIERs sufficiency** and **11.2:1 risk-to-capital ratio** [Trends and Conditions](index=32&type=section&id=Trends%20and%20Conditions) Q1 2024 saw persistent inflation and elevated mortgage rates slowing origination, yet Enact's portfolio grew with **85% persistency**, an **8% loss ratio** reflecting a **$54 million** reserve release, and strong capital with **163% PMIERs sufficiency** and **11.2:1 risk-to-capital ratio**, supported by capital returns and new reinsurance - The macroeconomic environment featured continued inflationary pressure and elevated mortgage rates, leading to slow mortgage origination activity in Q1 2024[123](index=123&type=chunk)[124](index=124&type=chunk) - New Insurance Written (NIW) decreased **20% YoY to $10.5 billion** in Q1 2024, attributed to a smaller mortgage insurance market and lower market share, though a high primary persistency rate of **85%** led to an increase in primary insurance in-force (IIF)[130](index=130&type=chunk) - The loss ratio for Q1 2024 was **8%**, reflecting a **$54 million** favorable reserve release, compared to a **(5)% loss ratio** in Q1 2023 which included a larger **$70 million** reserve release[131](index=131&type=chunk) Capital Adequacy Ratios | Metric | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | PMIERs Sufficiency Ratio | 163% | 161% | | PMIERs Sufficiency ($) | $1,883 million | $1,887 million | | Risk-to-Capital Ratio | 11.2:1 | 11.6:1 | - The company executed a new quota share reinsurance agreement ceding approximately **21%** of new insurance written for 2024 and an excess-of-loss transaction providing up to **$255 million** of coverage for the 2024 book year[139](index=139&type=chunk)[140](index=140&type=chunk) [Results of Operations and Key Metrics](index=36&type=section&id=Results%20of%20Operations%20and%20Key%20Metrics) Q1 2024 net income was **$161.0 million**, down **9% YoY**, with an **8% loss ratio** reflecting smaller reserve releases, while premiums rose **2% to $240.7 million** and adjusted operating income reached **$166.2 million**, despite a **20% decrease in NIW to $10.5 billion**, with primary insurance in-force growing to **$263.6 billion** and a **2.01% delinquency rate** Q1 2024 vs Q1 2023 Performance | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net Income | $161.0M | $176.0M | | Premiums | $240.7M | $235.1M | | Losses Incurred | $19.5M | ($11.0M) | | Loss Ratio | 8% | (5)% | | Expense Ratio | 22% | 23% | Reconciliation to Adjusted Operating Income | (Amounts in thousands) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net income | $160,988 | $175,988 | | Adjustments (Net investment gains/losses, etc.) | $5,247 | ($464) | | **Adjusted operating income** | **$166,235** | **$175,624** | Key Operating Metrics | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | New insurance written | $10,526M | $13,154M | | Primary insurance in-force | $263,645M | $252,516M | | Persistency rate | 85% | 85% | | Delinquency rate | 2.01% | 1.93% | - The number of delinquent loans at the end of Q1 2024 was **19,492**, up from **18,633** at the end of Q1 2023, with new defaults for the quarter totaling **11,395**[169](index=169&type=chunk) [Investment Portfolio](index=51&type=section&id=Investment%20Portfolio) The **$5.35 billion** investment portfolio as of March 31, 2024, primarily consists of highly rated fixed maturity securities, with **98% investment grade** and **51% in U.S. corporate bonds**, maintaining an effective duration of **3.7 years** and a pre-tax yield of **3.7%**, focused on capital preservation and income generation - The investment strategy is designed to meet policyholder obligations, preserve capital, and generate income, with a focus on a diversified mix of highly rated fixed income securities[183](index=183&type=chunk)[184](index=184&type=chunk) Investment Portfolio Composition (Fair Value) | Asset Class | March 31, 2024 (%) | December 31, 2023 (%) | | :--- | :--- | :--- | | U.S. corporate | 51% | 52% | | Other asset-backed | 23% | 23% | | Non-U.S. corporate | 13% | 13% | | State and political subdivisions | 8% | 8% | | U.S. government, agencies and GSEs | 5% | 4% | | **Total** | **100%** | **100%** | - As of March 31, 2024, **98%** of the investment portfolio was rated investment grade, with an effective duration of **3.7 years** and a pre-tax yield of **3.7%**[187](index=187&type=chunk) [Liquidity and Capital Resources](index=53&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2024, the company maintained strong liquidity with **$614 million** in cash and **$187.3 million** from operating activities, supported by an undrawn **$200 million** credit facility and **$750 million** senior notes, while insurance subsidiaries have **$65 million** dividend capacity and a healthy **11.2:1 combined risk-to-capital ratio** - Net cash from operating activities increased to **$187.3 million** in Q1 2024 from **$119.3 million** in Q1 2023, driven by higher investment income and lower expenses[190](index=190&type=chunk) - Financing activities in Q1 2024 included **$25.5 million** in dividends paid and **$49.7 million** in share repurchases[191](index=191&type=chunk) - The company has an undrawn **$200 million** revolving credit facility maturing in June 2027 and **$750 million** of senior notes maturing in August 2025[192](index=192&type=chunk)[193](index=193&type=chunk) - The ability of insurance subsidiaries to pay dividends is restricted by North Carolina insurance laws, with **$65 million** available from unassigned surplus as of March 31, 2024, subject to regulatory notice[196](index=196&type=chunk) Combined Risk-to-Capital (RTC) Ratio | Metric | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Combined statutory capital | $4,913M | $5,045M | | Adjusted RIF | $55,254M | $58,277M | | **Combined RTC Ratio** | **11.2:1** | **11.6:1** | [Quantitative and Qualitative Disclosures About Market Risk](index=58&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's investment portfolio faces market risks from interest rate changes, credit quality, and volatility, managed through diversification and a buy-and-hold strategy, with an effective duration of **3.7 years** as of March 31, 2024, implying a **3.7%** fair value change for a **100-basis-point** yield curve shift - The company's investment portfolio is exposed to market risks, primarily changes in interest rates, credit quality deterioration, concentration risk, and prepayment risk[216](index=216&type=chunk)[217](index=217&type=chunk) - As of March 31, 2024, the effective duration of the available-for-sale investments was **3.7 years**, implying a **100 basis point** parallel shift in interest rates would result in a **3.7%** change in the portfolio's fair value[218](index=218&type=chunk) [Controls and Procedures](index=59&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and procedures were effective as of March 31, 2024, with no material changes to internal control over financial reporting during Q1 2024 - Based on an evaluation as of March 31, 2024, the CEO and CFO concluded that the company's disclosure controls and procedures were effective[220](index=220&type=chunk) - No changes in internal control over financial reporting occurred during the quarter ended March 31, 2024, that have materially affected, or are reasonably likely to materially affect, internal controls[221](index=221&type=chunk) Part II. Other Information [Legal Proceedings](index=60&type=section&id=Item%201.%20Legal%20Proceedings) The company is not subject to any pending material legal proceedings - The company is not subject to any pending material legal proceedings[224](index=224&type=chunk) [Risk Factors](index=60&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred to the risk factors previously disclosed in the company's Annual Report on Form 10-K - There have been no material changes from the risk factors previously disclosed in the Annual Report[225](index=225&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=60&type=section&id=Item%202.%20Recent%20Sales%20of%20Unregistered%20Securities) In Q1 2024, the company repurchased **1,779,838 shares** at an average of **$27.51 per share**, with **$36.9 million** remaining under the existing program, and an additional **$250 million** share repurchase program authorized post-quarter Issuer Purchases of Equity Securities (Q1 2024) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | January 2024 | 133,307 | $27.75 | | February 2024 | 1,309,160 | $27.13 | | March 2024 | 337,371 | $28.90 | | **Total** | **1,779,838** | **$27.51** | - As of March 31, 2024, **$36.9 million** remained available under the share repurchase program announced in August 2023[226](index=226&type=chunk) - Subsequent to the quarter end, on May 1, 2024, the company announced a new share repurchase authorization for an additional **$250 million**[226](index=226&type=chunk) [Other Information](index=60&type=section&id=Item%205.%20Other%20Information) On May 1, 2024, the company authorized a new **$250 million** share repurchase program with no expiration date, including a pro rata agreement with Genworth Holdings, Inc - On May 1, 2024, the company authorized a new share repurchase program for up to an additional **$250 million** of its common stock[227](index=227&type=chunk) - During Q1 2024, no director or Section 16 officer adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements[229](index=229&type=chunk) [Exhibits](index=62&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including a new Share Repurchase Agreement dated May 1, 2024, and standard officer certifications - A new Share Repurchase Agreement, dated May 1, 2024, between Enact Holdings, Inc. and Genworth Holdings, Inc. was filed as an exhibit[231](index=231&type=chunk) - Certifications from the Principal Executive Officer and Principal Financial Officer are included as exhibits[231](index=231&type=chunk)

Enact Holdings, Inc. (ACT) came out with quarterly earnings of $1.04 per share, beating the Zacks Consensus Estimate of $0.99 per share. This compares to earnings of $1.08 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 5.05%. A quarter ago, it was expected that this company would post earnings of $0.90 per share when it actually produced earnings of $0.98, delivering a surprise of 8.89%.Over the last four quarters, the compan ...

Exhibit 99.1 ENACT REPORTS FIRST QUARTER 2024 RESULTS _______________________________________ GAAP Net Income of $161 million, or $1.01 per diluted share Adjusted Operating Income of $166 million, or $1.04 per diluted share Return on Equity of 13.8% and Adjusted Operating Return on Equity of 14.2% Record Primary insurance in-force of $264 billion, a 4% increase from first quarter 2023 PMIERs Sufficiency of 163% or $1,883 million Book Value Per Share of $29.89 and Book Value Per Share excluding AOCI of $31.4 ...

RALEIGH, N.C., May 01, 2024 (GLOBE NEWSWIRE) -- Enact Holdings, Inc. (NASDAQ:ACT) (Enact) a leading provider of private mortgage insurance through its insurance subsidiaries, today announced that its Board of Directors declared a quarterly dividend of $0.185 per common share, an increase of 16% from the prior quarter's dividend. This dividend will be payable on June 13, 2024, to shareholders of record on May 29, 2024. Future dividends will be subject to Board approval. Additionally, Enact announced that its ...

Investors are always looking for stocks that are poised to beat at earnings season and Enact Holdings, Inc. (ACT) may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.That is because Enact Holdings is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty ...

Root, Inc. (ROOT) is slated to report first-quarter 2024 earnings on Apr 30, after market close. The company delivered an earnings surprise of 34.1% in the last reported quarter.Factors at PlayThe first-quarter performance of Root, an auto insurer with a focus on the personal line, is likely to have benefited from better pricing and underwriting technology as well as prudent cost management. Its reinsurance strategy, driving higher retention and reduction in reinsurance costs, is likely to have added to the ...

Core Viewpoint - American International Group, Inc. (AIG) is expected to report its first-quarter 2024 results on May 1, with earnings per share estimated at $1.66, reflecting a 1.8% increase from the previous year, while revenues are projected to decline by 2.7% to around $12 billion [1][2]. Earnings Estimates - The Zacks Consensus Estimate for AIG's first-quarter earnings per share is $1.66, down by 2 cents from the previous week, indicating a 1.8% increase from $1.63 reported in the same quarter last year [2]. - Revenue estimates for the first quarter are around $12 billion, suggesting a decline of 2.7% from the prior year's figure [2]. Previous Quarter Performance - In the last reported quarter, AIG's adjusted operating earnings were $1.79 per share, exceeding estimates by 12.6%, driven by strong underwriting results and higher net investment income, although offset by increased expenses and reduced sales in certain segments [3]. Factors Influencing Q1 Performance - The General Insurance business is expected to benefit from improved retention, new business, and growth in premium rates, with adjusted pre-tax income estimated at $1.3 billion, a rise of over 4% from the previous year [4]. - The combined ratio for total General Insurance is projected at 90.7%, down from 91.9% in the prior year [4]. Life and Retirement Business - AIG remains the majority shareholder in Corebridge, with adjusted pre-tax income for the Life and Retirement business estimated at $996.2 million, indicating a nearly 12% increase year-over-year [5]. - Net investment income is expected to rise by 7.1% from the previous year, supported by improved reinvestment rates [5]. Expense Considerations - General operating and other expenses are projected to increase by over 17% year-over-year, with interest expenses expected to exceed $310 million, which may impact profit growth [6]. Earnings Prediction Insights - AIG's Earnings ESP is -0.49%, indicating a lower Most Accurate Estimate of $1.65 per share compared to the Zacks Consensus Estimate of $1.66, suggesting uncertainty regarding an earnings beat [7].

Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Enact Holdings, Inc. (ACT) , which belongs to the Zacks Insurance - Multi line industry, could be a great candidate to consider.This company has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 13.75%.For the most recent quarter, ...

With a number of insurance stocks currently holding spots on the Zacks Rank #1 (Strong Buy) list, the Zacks Insurance-Multi Line Industry stands out in particular and is in the top 16% of over 250 Zacks industries.Offering a variety of insurance products and services to their clients, earnings estimate revisions are nicely up across this industry and here are a few of the top stocks to consider.Assured Guaranty (AGO) Protecting holders of debt instruments and other monetary obligations from defaults in sche ...

RALEIGH, N.C., April 04, 2024 (GLOBE NEWSWIRE) -- Enact Holdings, Inc. (Nasdaq: ACT) (Enact) announced it will issue its first quarter earnings release after the market closes on May 1, 2024. Enact will host a conference call to review first quarter 2024 financial results on May 2, 2024 at 8:00 a.m. (ET). Enact’s earnings release, summary presentation and financial supplement will be available through the company's website, https://ir.enactmi.com/, at the time of their release to the public. Participants in ...