Company Overview - Enact Holdings, Inc. is a leading U.S. private mortgage insurance provider, operating primarily through its wholly-owned subsidiary Enact Mortgage Insurance Corporation since 1981 [5] - The company is headquartered in Raleigh, North Carolina, and is committed to helping more people achieve homeownership through partnerships with lenders [5] Sustainability Report Highlights - Enact released its 2024 Sustainability Report, which covers the calendar year 2024 and emphasizes the company's commitment to sustainability [1][2] - The report showcases Enact's transparency regarding its sustainability initiatives, including third-party risk management, professional development programs, and Hurricane Helene relief response [2] - The President and CEO of Enact, Rohit Gupta, stated that the company's growth and profitability are linked to its focus on sustainability, highlighting the progress made in various areas [3] Stakeholder Engagement - The sustainability pillars and priorities outlined in the report are identified as critical to Enact's long-term success by both internal and external stakeholders [2] - The report aims to provide insights into how Enact is building stronger communities through homeownership, philanthropy, and volunteerism [3] Availability of Report - The 2024 Sustainability Report is accessible on Enact's Investor Relations website [3]

Group 1 - Enact Holdings, Inc. (ACT) is currently ranked 2 (Buy) in the Zacks Rank system, indicating a positive earnings outlook with a 2.2% increase in the consensus estimate for full-year earnings over the past three months [3] - Year-to-date, Enact Holdings, Inc. has gained approximately 1.6%, outperforming the average loss of 1.3% in the Finance sector [4] - Enact Holdings, Inc. belongs to the Insurance - Multi line industry, which is ranked 55 in the Zacks Industry Rank, with an average gain of 0.6% this year [5] Group 2 - Erie Indemnity (ERIE), another stock in the Finance sector, has a year-to-date return of 1.5% and also holds a Zacks Rank of 2 (Buy) [4][5] - The Insurance - Brokerage industry, which includes Erie Indemnity, has seen a significant increase of 9.2% since the beginning of the year, but it is ranked 141 [6]

Core Points - Enact Holdings, Inc. has appointed H. Elizabeth (Liz) Mitchell as an Independent Director effective March 11, 2025, and she will also serve on the Audit Committee [1] - Anne G. Waleski will not stand for re-election at the 2025 Annual Shareholder Meeting, leading to a temporary increase in the Board size from eleven to twelve directors [1] - Ms. Mitchell has extensive experience in finance and public companies, having served on various boards and as CEO of Renaissance U.S. Inc. until her retirement in 2016 [1][2] - Dom Addesso, Chairperson of the Board, expressed confidence that Ms. Mitchell's expertise will contribute to the company's growth and long-term shareholder value [3] - Ms. Waleski will continue her roles on the Audit Committee and Nominating & Corporate Governance Committee until the 2025 Annual Shareholder Meeting, and her decision not to seek re-election is not due to any disagreements with the company [3][4] Company Overview - Enact operates primarily through its wholly-owned subsidiary, Enact Mortgage Insurance Corporation, and is a leading private mortgage insurance provider in the U.S. [4] - The company aims to help more people achieve homeownership by partnering with lenders to provide top-tier service, underwriting expertise, and risk management [4]

Financial Performance and Capital Management - The company may require additional capital to support growth and meet regulatory requirements, which could adversely affect its financial condition if not raised in a timely manner [218]. - The company’s ability to raise additional capital may be limited by Genworth's ownership of at least 80% of its common stock, affecting future capital-raising efforts [219]. - The company's liquidity and capital position are highly dependent on the performance of its subsidiaries and their ability to pay dividends and distributions [293]. - The payment of dividends by the company's insurance subsidiaries is subject to regulatory approval and may be restricted based on their financial condition and operating performance [292]. - Future dividend payments and share repurchase authorizations are subject to review and approval by the Board of Directors [312]. - The ability to return capital to shareholders is dependent on business results and the macroeconomic environment [312]. - Future capital returns may be materially affected by various risk factors [312]. - Genworth's ownership of at least 80% of common stock may limit the company's ability to raise additional capital [312]. - There is no assurance that the company will maintain current levels of dividends or share repurchases in the future [312]. - The company's ability to repurchase stock may be restricted by limited public float [312]. - Future returns of capital must comply with debt agreements and applicable laws [312]. - Any changes in capital return strategies could materially affect the market price of common stock [312]. Regulatory and Compliance Risks - The company is subject to extensive regulation, and changes in regulation may reduce profitability and limit growth, impacting the ability to conduct business [245][246]. - The statutory capital adequacy ratio for U.S. mortgage insurers, known as the RTC ratio, is critical for maintaining business operations and compliance with regulatory requirements [252]. - Regulatory scrutiny related to risk-based pricing systems and the use of algorithms may increase, potentially affecting premium rates and underwriting practices [249]. - The company is subject to various federal and state consumer protection and insurance laws, which could materially adversely affect its business if changes occur [262]. - The Dodd-Frank Act requires originators to retain a specified percentage of credit risk exposure on securitized mortgages that do not meet the definition of a Qualified Residential Mortgage (QRM) [263]. - In July 2023, proposed changes to the Basel III Endgame rule could eliminate the 50% capital relief for high loan-to-value portfolio loans with mortgage insurance for banks with total assets greater than $100 billion, potentially decreasing demand for mortgage insurance [266]. Market and Economic Conditions - A decline in economic conditions or adverse population trends could negatively affect the housing market and, consequently, the demand for mortgage insurance [240]. - Changes in government housing policy and increased competition from federal agencies like FHA and VA could reduce demand for private mortgage insurance [259]. - The FHFA's Enterprise Capital Framework may lead to increased guarantee pricing by GSEs, negatively impacting the private mortgage insurance market [261]. - A decrease in the volume of Low Down Payment Loan originations could lead to a decline in revenue, as the company primarily provides mortgage insurance for these loans [237]. Investment and Financial Risks - The company faces significant unrealized losses in its investment portfolio due to elevated interest rates, impacting future earnings [217]. - The company’s investment portfolio is predominantly limited to highly rated fixed maturity securities, but rising interest rates have led to significant unrealized losses [227]. - The company’s mortgage insurance premiums may not adequately compensate for risks, potentially leading to adverse financial effects [236]. Operational Risks - The company relies on third-party servicers for loan servicing, and disruptions in their operations could increase losses and impact financial performance [230]. - The company relies on third-party vendors for unique products and services, and any failure by these vendors could adversely affect its operations [298]. - The company is exposed to risks from natural or man-made disasters, which could disrupt operations and lead to increased delinquency rates among borrowers [307]. - The company must continuously invest in technology to remain competitive, and failure to enhance its platform could negatively impact its business [302]. Cybersecurity and Reputational Risks - The company has experienced occasional cybersecurity incidents, which, if significant, could damage reputation and result in regulatory fines or legal costs [243][244]. - The company retains confidential customer information, and any failure to protect this data could result in significant costs and damage to reputation [243]. - The company may face reputational harm if Genworth or its subsidiaries experience litigation or damage to their reputation, which could adversely affect its business [277]. - The company faces risks related to litigation and regulatory proceedings, which could result in financial losses and harm its reputation [295]. Shareholder and Corporate Governance - Genworth beneficially owns at least 80% of the company's common stock, which allows it to control significant corporate decisions, potentially delaying or deterring actions favored by other stockholders [268]. - The company is currently a member of the Genworth Consolidated Group, which requires Genworth to own at least 80% of the total voting power of the company's stock [287]. - If the company ceases to be a member of the Genworth Consolidated Group, it may face increased income tax obligations due to the application of "unified loss rules" [288]. - The company does not expect a material reduction in the tax basis of its assets if it departs from the Genworth Consolidated Group, but there are no guarantees regarding future tax obligations [289]. Dividend and Stock Repurchase Activities - The company initiated a quarterly dividend for common shareholders in 2022 [312]. - The first Stock Repurchase Plan was announced, allowing for repurchases of common stock [312].

Core Insights - The article compares Enact Holdings, Inc. (ACT) and Goosehead Insurance (GSHD) to determine which stock is more attractive to value investors [1] Valuation Metrics - ACT has a Zacks Rank of 2 (Buy), indicating a positive earnings estimate revision trend, while GSHD has a Zacks Rank of 4 (Sell) [3] - ACT's forward P/E ratio is 7.58, significantly lower than GSHD's forward P/E of 61.05 [5] - ACT has a PEG ratio of 2.10, while GSHD's PEG ratio is 2.69, suggesting ACT is more favorably valued considering expected EPS growth [5] - ACT's P/B ratio is 1.04, in stark contrast to GSHD's P/B of 1,907.17, indicating a much lower market value relative to book value for ACT [6] - Based on these valuation metrics, ACT earns a Value grade of B, while GSHD receives a Value grade of F [6] Investment Outlook - ACT is positioned as the superior value option due to its solid earnings outlook and favorable valuation figures compared to GSHD [7]

Financial Data and Key Metrics Changes - For the full year 2024, adjusted operating income reached a record high of $718 million or $4.56 per diluted share, up 9% year over year [11] - Adjusted return on equity was 15% and adjusted book value increased by 12% year over year to $34.16 per share [11] - In Q4 2024, adjusted operating income was $169 million, up 7% year over year, with adjusted earnings per share at $1.09 [14][30] Business Line Data and Key Metrics Changes - New insurance written for the year totaled $51 billion, with record insurance in force at $269 billion, supporting approximately 140,000 families [12] - In Q4, primary insurance in force increased to $269 billion, up $1 billion sequentially and up $66 billion or 2% year over year [32] - New insurance written in Q4 was $13 billion, down 2% sequentially but up 27% year over year [32] Market Data and Key Metrics Changes - The operating environment in the US housing market remains constructive, with long-term demographic drivers of housing demand robust [15] - Labor markets showed resilience with consistent wage growth surpassing inflation [16] - Approximately 70% of insurance in force had mortgage rates below 6%, indicating strong credit quality [17] Company Strategy and Development Direction - The company aims to extend its platform into compelling adjacencies leveraging capabilities across mortgage, housing, and credit [24] - Enact RE continues to participate in attractive GSE single and multi-family deals, viewed as a long-term growth opportunity [24] - The capital allocation priorities include supporting existing policyholders, investing in business growth, and returning excess capital to shareholders [23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term view of the US economy and housing, despite current challenges [16] - The company remains committed to helping people achieve homeownership responsibly, which underpins all business aspects [54] - Management noted that the aging of the portfolio should slow the increase in new delinquency development [71] Other Important Information - The company returned $354 million to shareholders in 2024, exceeding the high end of capital return guidance [13] - Ratings were upgraded by S&P from BBB+ to A- and by Fitch from A- to A, reflecting the strength of the business model [13] - The company maintained a disciplined approach to expense management, reducing expenses by 2% year over year [20] Q&A Session Summary Question: Capital return guidance and potential for increase - Management confirmed the capital return guidance of $350 million for 2025, with the possibility of reassessing based on business performance and macroeconomic conditions [59][60] Question: Reinsurance business and GSE CRT volume - Management indicated potential for GSE CRT volume to increase under different scenarios, which would allow for attractive risk-adjusted returns [64] Question: Impact of portfolio seasoning on delinquencies - Management noted that the average age of the portfolio increased, which should slow the increase in new delinquency development [71]

Company Performance - Enact Holdings, Inc. reported quarterly earnings of $1.09 per share, missing the Zacks Consensus Estimate of $1.11 per share, but showing an increase from $0.98 per share a year ago, resulting in an earnings surprise of -1.80% [1] - The company posted revenues of $308.94 million for the quarter ended December 2024, which was below the Zacks Consensus Estimate by 1.35%, and an increase from $296.19 million year-over-year [2] - Over the last four quarters, Enact Holdings has surpassed consensus EPS estimates three times and topped consensus revenue estimates only once [2] Market Outlook - Enact Holdings shares have increased approximately 3.2% since the beginning of the year, outperforming the S&P 500's gain of 1.9% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the next quarter is $1.13 on revenues of $311.7 million, and for the current fiscal year, it is $4.33 on revenues of $1.24 billion [7] Industry Context - The Zacks Industry Rank indicates that the Insurance - Multi line sector is currently in the top 36% of over 250 Zacks industries, suggesting a favorable environment for stocks in this sector [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors or through tools like the Zacks Rank [5][6]

Financial Performance - GAAP net income for Q4 2024 was $163 million, or $1.05 per diluted share, compared to $181 million, or $1.15 per diluted share in Q3 2024[1] - Adjusted operating income for Q4 2024 was $169 million, or $1.09 per diluted share, down from $182 million, or $1.16 per diluted share in Q3 2024[3] - Net income for Q4 2024 was $162,738,000, down 9.7% from Q3 2024 but up 3.4% from Q4 2023[18] - Adjusted operating income for Q4 2024 was $168,725,000, a decrease of 7.4% from Q3 2024 and an increase of 6.5% from Q4 2023[18] - The company reported a U.S. GAAP ROE of 13.0% in Q4 2024, down from 14.7% in Q3 2024[19] Revenue and Premiums - Total revenues for Q4 2024 were $301,776,000, a decrease of 2.6% from Q3 2024 and an increase of 1.9% from Q4 2023[18] - Net premiums earned were $246 million, down 1% from Q3 2024 but up 2% from Q4 2023[7] - New insurance written (NIW) was approximately $13 billion, a 2% decrease from Q3 2024 but a 27% increase from Q4 2023[7] Losses and Expenses - Losses incurred for Q4 2024 were $24 million, with a loss ratio of 10%, compared to a loss ratio of 5% in Q3 2024[7] - The loss ratio for Q4 2024 was 10%, up from 5% in Q3 2024 and equal to 10% in Q4 2023[18] - Operating expenses were $58 million, with an expense ratio of 24%, compared to 22% in Q3 2024[7] - The expense ratio for Q4 2024 was 24%, an increase from 22% in Q3 2024 and 25% in Q4 2023[18] Assets and Liabilities - Total assets decreased to $6,521,531,000 in Q4 2024 from $6,597,046,000 in Q3 2024[19] - Total liabilities decreased to $1,525,435,000 in Q4 2024 from $1,560,801,000 in Q3 2024[19] Shareholder Returns - The company returned over $350 million to shareholders in 2024, including dividends and share repurchases[7] - A quarterly cash dividend of $0.185 per common share was announced, payable on March 14, 2025[13] Capital and Ratios - PMIERs sufficiency was 167%, representing $2.1 billion above the PMIERs requirements[13] - The debt to capital ratio remained stable at 13% in both Q4 2024 and Q3 2024[19] - Book value per share increased to $32.80 in Q4 2024 from $32.61 in Q3 2024 and $29.07 in Q4 2023[19] Insurance Metrics - Primary insurance in-force reached a record $269 billion, a 2% increase from Q4 2023[7]

Core Insights - Enact Holdings, Inc. reported strong financial performance for the fourth quarter and full year of 2024, highlighting effective strategy execution in a complex economic environment [2][4] Financial Performance - GAAP Net Income for Q4 2024 was $163 million, or $1.05 per diluted share, compared to $181 million, or $1.15 per diluted share in Q3 2024, and $157 million, or $0.98 per diluted share in Q4 2023 [3][4] - Adjusted Operating Income for Q4 2024 was $169 million, or $1.09 per diluted share, down from $182 million, or $1.16 per diluted share in Q3 2024, but up from $158 million, or $0.98 per diluted share in Q4 2023 [3][4] - The company achieved a Return on Equity of 13.0% and an Adjusted Operating Return on Equity of 13.5% for Q4 2024, compared to 14.7% and 14.8% in Q3 2024, respectively [3][4][22] Insurance Metrics - New Insurance Written (NIW) for Q4 2024 was approximately $13 billion, a decrease of 2% from Q3 2024 but an increase of 27% from Q4 2023 [4][8] - Primary Insurance In-Force (IIF) reached a record $269 billion, up 2% from $263 billion in Q4 2023 [3][4] - The Primary Persistency Rate was 82%, down from 83% in Q3 2024 and 86% in Q4 2023 [3][4] Capital Management - The company returned over $350 million to shareholders in 2024, including a quarterly cash dividend of $0.185 per common share [3][4][8] - PMIERs Sufficiency was reported at 167%, equating to $2.1 billion above the PMIERs requirements [3][4][22] Investment Income - Net Investment Income for Q4 2024 was $63 million, an increase from $61 million in Q3 2024 and $56 million in Q4 2023, driven by elevated interest rates [4][8] - Net Investment Losses for the quarter were $(7) million, compared to $(1) million in both the previous quarter and the same period last year [4][8] Shareholder Actions - The company repurchased 7.6 million shares at an average price of $31.95 for a total of $243 million in 2024 [4][8] - As of December 31, 2024, Enact held $243 million in cash and cash equivalents, along with $298 million in invested assets [4][8]

Core Points - Integra Resources Corp. supports Idaho Governor Brad Little's Executive Order 2025-02, known as the SPEED Act, which aims to streamline the permitting process for development projects in Idaho [1][3] - The SPEED Act establishes a SPEED Council to enhance collaboration among state agencies and expedite permit reviews while maintaining environmental safeguards [4][6] - The Act is expected to significantly advance mining projects in Idaho, particularly Integra's DeLamar and Florida Mountain Project, by facilitating the permitting process [2][3] Company Initiatives - Integra plans to submit a revised Mine Plan of Operations (MPO) for the DeLamar Project in 2025, which will be part of an upcoming Feasibility Study [2] - Following the acceptance of the revised MPO, the U.S. Bureau of Land Management will publish a Notice of Intent (NOI) to initiate the Draft Environmental Impact Statement (DEIS) process [2] - The DeLamar Project is highlighted as one of the most advanced gold-silver development projects in the Western U.S., indicating its significant scarcity value [2] Industry Context - The SPEED Act aligns with federal initiatives, such as the Unleashing American Energy executive order, aimed at expediting permitting for domestic mineral production [3][6] - The SPEED Council's goals include fostering responsible development, job creation, and maintaining a high quality of life for Idaho residents through efficient permitting processes [4][5] - Both state and federal directives emphasize the importance of balancing resource development with environmental protection [6]