RALEIGH, N.C., June 27, 2024 (GLOBE NEWSWIRE) -- Enact Holdings, Inc. (NASDAQ:ACT) (Enact), a leading provider of private mortgage insurance through its insurance subsidiaries, today announced that its flagship legal entity, Enact Mortgage Insurance Corporation, has secured approximately $90 million of additional excess of loss (XOL) reinsurance coverage. This credit risk transfer (CRT) transaction covers a portion of existing mortgage insurance policies written from July 1, 2023 through December 31, 2023 a ...

Core Insights - Enact Holdings, Inc. has secured approximately $90 million in additional excess of loss reinsurance coverage, effective June 1, 2024, for existing mortgage insurance policies written from July 1, 2023, to December 31, 2023 [1] - The reinsurance coverage is provided by a panel of reinsurers rated "A-" or better by S&P and A.M. Best, and "A3" or better by Moody's, indicating a strong credit quality [1] - The transaction is part of Enact's credit risk transfer strategy aimed at minimizing credit risk and enhancing capital efficiency [2] Company Overview - Enact Holdings, Inc. operates primarily through its wholly-owned subsidiary, Enact Mortgage Insurance Corporation, and has been a leading provider of private mortgage insurance in the U.S. since 1981 [3] - The company focuses on helping individuals achieve homeownership by partnering with lenders to provide best-in-class service, underwriting expertise, and risk management [3] - Enact is headquartered in Raleigh, North Carolina, and aims to positively impact the communities it serves in a sustainable manner [3]

Wall Street’s popular adages are not matching this year. April is historically known as being favorable to investors. But this year, April ended on a disappointing note. For May, the popular adage is “Sell and Go Away.” However, May 2024 turned out highly successful for U.S. stock markets.The three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — were up 2.3%, 4.8% and 6.9%, respectively. The tech-heavy Nasdaq Composite recorded its best month since November 2023. On May 31, the blue-ch ...

RALEIGH, N.C., June 04, 2024 (GLOBE NEWSWIRE) -- Enact Holdings, Inc. (Nasdaq: ACT) (Enact) today announced that the company’s President and Chief Executive Officer, Rohit Gupta, will participate in a fireside chat at the 2024 TD Financial Services and Fintech Summit on Thursday, June 6, 2024 at 4:15 pm Eastern Time. The fireside chat will be webcast live here, and a replay of the fireside chat can be accessed within 24 hours of the conclusion of the event on the company’s website, https://ir.enactmi.com, u ...

RALEIGH, N.C., June 04, 2024 (GLOBE NEWSWIRE) -- Enact Holdings, Inc. (NASDAQ:ACT) (Enact) today announced that the company's President and Chief Executive Officer, Rohit Gupta, will participate in a fireside chat at the 2024 TD Financial Services and Fintech Summit on Thursday, June 6, 2024 at 4:15 pm Eastern Time. The fireside chat will be webcast live here, and a replay of the fireside chat can be accessed within 24 hours of the conclusion of the event on the company's website, https://ir.enactmi.com, un ...

RALEIGH, N.C., May 22, 2024 (GLOBE NEWSWIRE) -- Enact Holdings, Inc. (Nasdaq: ACT) (Enact), today announced that it has priced a registered public offering of $750 million of its 6.25% Senior Notes due 2029 (the “2029 Notes”). The expected settlement date for the offering is May 28, 2024, subject to the satisfaction of customary closing conditions. The 2029 Notes will pay interest semi-annually on May 28 and November 28, beginning November 28, 2024, at a rate of 6.250% per year, maturing May 28, 2029. Enact ...

RALEIGH, N.C., May 22, 2024 (GLOBE NEWSWIRE) -- Enact Holdings, Inc. (Nasdaq: ACT) (Enact), today announced that it has priced a registered public offering of $750 million of its 6.25% Senior Notes due 2029 (the “2029 Notes”). The expected settlement date for the offering is May 28, 2024, subject to the satisfaction of customary closing conditions. The 2029 Notes will pay interest semi-annually on May 28 and November 28, beginning November 28, 2024, at a rate of 6.250% per year, maturing May 28, 2029. Enact ...

VANCOUVER, BC and LAS VEGAS, May 20, 2024 /PRNewswire/ - Ballard Power Systems (NASDAQ: BLDP) (TSX: BLDP) today unveils its 9th generation, high-performance fuel cell engine, the FCmove®-XD, at the Advanced Clean Transportation (ACT) Expo at the Las Vegas Convention Center. Ballard is exhibiting at Booth 1821 from May 20-23, 2024.Ballard’s high power density FCmove®-XD. (CNW Group/Ballard Power Systems Inc.)"We are laser focused on strengthening the economic value proposition for heavy-duty mobility custome ...

Enact Holdings, Inc. (NASDAQ:ACT) Q1 2024 Earnings Conference Call May 2, 2024 8:00 AM ET Corporate Participants Daniel Kohl - VP, Investor Relations Rohit Gupta - President and Chief Executive Officer Dean Mitchell - Chief Financial Officer Conference Call Participants Doug Harter - UBS Mihir Bhatia - Bank of America Bose George - KBW Rick Shane - JPMorgan Soham Bhonsle - BTIG Operator Good day and thank you for standing by. Welcome to Enact's First Quarter 2024 Earnings Call. At this time all participants ...

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)