Financial Performance - Total revenues for Q1 2025 were $306,776,000, an increase of 5.3% compared to $291,576,000 in Q1 2024[18] - Net income for Q1 2025 was $165,778,000, up from $160,988,000 in Q1 2024, representing a growth of 3.5%[18] - Basic net income per share increased to $1.09 in Q1 2025 from $1.01 in Q1 2024, reflecting an increase of 7.9%[18] - Comprehensive income for Q1 2025 was $220,751,000, compared to $153,911,000 in Q1 2024, indicating a significant increase of 43.4%[20] - For the three months ended March 31, 2025, net investment income was $63,037 thousand, an increase of 10.5% from $57,111 thousand in the same period of 2024[38] - Adjusted operating income for Q1 2025 was $168,837, an increase from $166,235 in Q1 2024, primarily due to higher net investment income and earned premiums[191] - Net premiums written for the three months ended March 31, 2025, were $237.6 million, compared to $230.3 million for the same period in 2024, indicating a growth of approximately 3.0%[108] Assets and Equity - Total assets as of March 31, 2025, were $6,721,520,000, up from $6,521,531,000 as of December 31, 2024, indicating a growth of 3.1%[16] - Total equity increased to $5,119,407,000 as of March 31, 2025, compared to $4,996,096,000 at the end of 2024, marking a rise of 2.5%[16] - Cash and cash equivalents at the end of Q1 2025 were $635,269,000, an increase from $599,432,000 at the end of Q4 2024, representing a growth of 6.0%[24] Investment Performance - The company reported net investment income of $63,037,000 in Q1 2025, up from $57,111,000 in Q1 2024, which is an increase of 10.4%[18] - As of March 31, 2025, net unrealized investment losses were $(148,730) thousand, a decrease from $(207,624) thousand as of December 31, 2024, reflecting a recovery in the value of investment securities[41] - The total fair value of fixed maturity securities available-for-sale as of March 31, 2025, was $5,815,337 thousand, compared to $5,624,773 thousand as of December 31, 2024, showing an increase in asset value[45] - The company reported gross unrealized losses of $(214,178) thousand on fixed maturity securities available-for-sale as of March 31, 2025, down from $(272,440) thousand at the end of 2024, indicating a reduction in unrealized losses[47] Reinsurance and Reserves - The gross loss reserves for domestic mortgage insurance as of March 31, 2025, were $537.5 million, compared to $530.8 million as of December 31, 2024[100] - The company recorded favorable reserve adjustments of $47 million for prior accident year reserves during the three months ended March 31, 2025[102] - For the three months ended March 31, 2025, losses and LAE incurred related to the current accident year amounted to $78 million, up from $74 million for the same period in 2024, representing a 5.4% increase[102] Shareholder Actions - The company repurchased common stock totaling $65,283,000 during Q1 2025, compared to $49,724,000 in Q1 2024, reflecting a 31.2% increase in stock repurchases[24] - The company authorized a new share repurchase program allowing for the repurchase of up to $350 million of common stock[175] - Cash dividends paid to Genworth were $22.8 million for the three months ended March 31, 2025, compared to $20.8 million for the same period in 2024, indicating an increase of 9.6%[134] Market Conditions - The unemployment rate as of March 31, 2025, was 4.2%, consistent with December 31, 2024, with approximately 7.1 million unemployed Americans[158] - The Consumer Price Index (CPI) inflation was reported at 2.4% year-over-year in March 2025, down from 2.9% in December 2024[156] - Mortgage origination remained slow in the first quarter of 2025 due to elevated mortgage rates and low housing supply, impacting housing affordability[157] Insurance Metrics - New insurance written (NIW) for Q1 2025 was $9.8 billion, a decrease of 7% compared to Q1 2024, primarily due to lower estimated market share[163] - The loss ratio for Q1 2025 was 12%, up from 8% in Q1 2024, influenced by favorable reserve development[165] - Current period primary delinquencies in Q1 2025 were 12,237, contributing $75 million of loss expense, compared to $74 million from 11,395 delinquencies in Q1 2024[166] - The primary delinquency rate for Florida increased to 3.28% as of March 31, 2025, up from 3.67% as of December 31, 2024[210]

Economic Overview - The U.S. economy contracted by 0.3% in the first quarter of 2025, marking the first quarter of negative growth since Q1 2022 and missing analysts' expectations of 0.4% growth [3] - Consumer confidence fell by 7.9 points to 86 in April, reaching a five-year low, indicating a lack of investor confidence in the economy [6] Trade and Tariffs - Concerns are rising that President Trump's tariffs could negatively impact economic health, despite a temporary 90-day pause on tariffs that led to a 41.3% increase in imports for the quarter, while exports only grew by 1.8% [4][6] Consumer Behavior - Consumer spending has slowed as individuals are saving more in anticipation of tougher economic conditions, alongside a significant decline in federal expenditures contributing to sluggish GDP figures [5] Dividend-Paying Stocks - In light of economic uncertainty, investing in dividend-paying stocks is recommended as they tend to provide steady income and stability [2][7] - Atkore Inc. (ATKR) announced a dividend of $0.33 per share with a dividend yield of 2%, having increased its dividend once in the past five years with a payout ratio of 12% [9][8] - Enact Holdings, Inc. (ACT) declared a dividend of $0.21 per share and has a dividend yield of 2.07%, having increased its dividend six times in the past five years with a payout ratio of 16% [11][10] - Pool Corporation (POOL) announced a dividend of $1.25 per share with a dividend yield of 1.64%, having increased its dividend six times in the past five years and a payout ratio of 46% [13][12] - American Water Works Company, Inc. (AWK) declared a dividend of $0.83 per share with a dividend yield of 2.08%, having increased its dividend six times in the past five years and a payout ratio of 57% [15][14]

Financial Data and Key Metrics Changes - The company reported adjusted operating income of $169 million, up 2% year over year [6] - Adjusted earnings per share was $10, up 6% year over year [6] - GAAP net income was $166 million or $1.08 per diluted share, compared to $1.01 per diluted share in the same period last year [17] - Adjusted operating return on equity was 13.4% [18] - Insurance in force was $258 billion, up 2% year over year [6] Business Line Data and Key Metrics Changes - New insurance written was $10 billion, down 26% sequentially and down 7% year over year [18] - Primary insurance in force was $268 billion, relatively flat from $269 billion in the fourth quarter of 2024 and up 2% year over year [19] - Total net premiums earned were $245 million, down $1 million sequentially and up $4 million or 2% year over year [19] Market Data and Key Metrics Changes - Persistency was 84% in the first quarter, up two points sequentially and down one point year over year [19] - The risk-weighted average FICO score of the portfolio was 745, and the risk-weighted average loan-to-value ratio was 93% [8] Company Strategy and Development Direction - The company is focused on maintaining a strong balance sheet, investing in business growth, and returning excess capital to shareholders [10][12] - The introduction of the Rate three sixty pricing engine aims to deliver competitive pricing on a risk-adjusted basis [11][12] - The company continues to participate in GSE CRT transactions to diversify its platform [11] Management's Comments on Operating Environment and Future Outlook - The management noted a stable consumer and labor market, with potential improvement if mortgage rates decline [7] - The company is prepared to navigate a range of scenarios amid elevated geopolitical uncertainty [14] - Management expressed confidence in the long-term drivers of the housing market, citing pent-up demand among first-time homebuyers [7] Other Important Information - The company returned over $94 million to shareholders through share buybacks and dividends [13] - A new $350 million share repurchase program was authorized, along with a 14% increase in the dividend from 18.5 cents to 21 cents per share [13][28] - The PMIERs sufficiency ratio stood at 165, indicating a strong capital foundation [8] Q&A Session Summary Question: How is the company reacting to market uncertainty in underwriting and pricing? - The company is maintaining prudent guidelines and leveraging its strong capital base to help well-qualified borrowers [34] Question: Has there been any impact from government policy changes on loss mitigation? - The company has seen continued strength in GSE loss mitigation programs and is optimistic about new options for consumers [37] Question: What are the pricing dynamics affecting market share changes? - Market share is influenced by risk alignment and the quality of business rather than solely pricing [42] Question: How does the seasoning of the portfolio affect delinquency development? - The average age of the book is now 3.9 years, which is expected to slow the increase in new delinquency development [52] Question: Are cancellation rates increasing? - The company has not observed any significant change in borrower-initiated cancellations, which remain stable [68]

Financial Data and Key Metrics Changes - The company reported adjusted operating income of $169 million, up 2% year over year [6] - Adjusted earnings per share was $10, up 6% year over year [6] - GAAP net income was $166 million or $1.08 per diluted share, compared to $1.00 per diluted share in the same period last year [18] - Adjusted operating return on equity was 13.4% [19] - Insurance in force was $258 billion, up 2% year over year [6] Business Line Data and Key Metrics Changes - New insurance written was $10 billion, down 26% sequentially and down 7% year over year [19] - Primary insurance in force was $268 billion, relatively flat from $269 billion in the fourth quarter of 2024 and up 2% year over year [20] - Total net premiums earned were $245 million, down $1 million sequentially and up $4 million or 2% year over year [20] - The base premium rate was 40.1 basis points, relatively flat sequentially [21] Market Data and Key Metrics Changes - The housing market conditions remained tight with elevated home prices despite high borrowing costs [6] - Approximately 8% of the insurance in force had mortgage rates at least 50 basis points above March's average mortgage rate of 6.7% [9] - Persistency was 84%, up two points sequentially and down one point year over year [20] Company Strategy and Development Direction - The company is focused on maintaining a strong balance sheet, investing in business growth, and returning capital to shareholders [11][14] - The introduction of the Rate three sixty pricing engine aims to enhance competitive pricing and risk selection [12][13] - The company continues to participate in GSE CRT transactions to diversify its platform [12] Management's Comments on Operating Environment and Future Outlook - The management highlighted a stable consumer and labor market, with potential improvement if mortgage rates decline [7] - The company is prepared to navigate a range of scenarios amid elevated geopolitical uncertainty [8] - Management expressed confidence in the long-term drivers of the housing market, particularly pent-up demand from first-time homebuyers [8] Other Important Information - The company returned over $94 million to shareholders through share buybacks and dividends [14] - A new $350 million share repurchase program was authorized, along with a 14% increase in the dividend from 18.5 cents to 21 cents per share [14][29] - The PMIERs sufficiency ratio stood at 165, indicating a strong capital foundation [9] Q&A Session Summary Question: How is the company reacting to market uncertainty in underwriting and pricing? - The company is maintaining prudent guidelines and leveraging its strong capital base to help well-qualified borrowers [35] Question: Has there been any impact from recent government policy changes on loss mitigation? - The company has seen continued strength in GSE loss mitigation programs and is optimistic about new loss mitigation options [39] Question: What are the pricing dynamics and market share changes? - Market participation has been stable, and pricing adjustments are made based on risk and return alignment [45] Question: How does the seasoning of the portfolio affect delinquency development? - The average age of the portfolio is now 3.9 years, which is expected to slow the increase in new delinquency development [54] Question: Are cancellation rates increasing? - The company has not seen significant changes in borrower-initiated cancellations, which primarily occur due to refinancing [71]

Group 1 - Enact Holdings, Inc. reported quarterly earnings of $1.10 per share, missing the Zacks Consensus Estimate of $1.12 per share, but showing an increase from $1.04 per share a year ago, resulting in an earnings surprise of -1.79% [1] - The company posted revenues of $310.02 million for the quarter ended March 2025, which was below the Zacks Consensus Estimate by 0.49%, and an increase from $298.26 million year-over-year [2] - Over the last four quarters, Enact Holdings has surpassed consensus EPS estimates two times and topped revenue estimates just once [2] Group 2 - Enact Holdings shares have increased approximately 9.6% since the beginning of the year, contrasting with the S&P 500's decline of -5.5% [3] - The company's earnings outlook, including current consensus earnings expectations for upcoming quarters, will be crucial for investors [4] - The current consensus EPS estimate for the upcoming quarter is $1.06 on revenues of $312.59 million, and for the current fiscal year, it is $4.41 on revenues of $1.26 billion [7] Group 3 - The Zacks Industry Rank indicates that the Insurance - Multi line sector is currently in the top 17% of over 250 Zacks industries, suggesting a favorable outlook for stocks in this sector [8] - Another company in the same industry, MBIA, is expected to report a quarterly loss of $0.07 per share, reflecting a year-over-year change of +86.5%, with revenues projected to be $21 million, down 34.4% from the previous year [9]

First Quarter 2025 Financial Results April 30, 2025 Cautionary Note Regarding Forward-Looking Statements This communication contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act. These forward-looking statements may address, among other things, our expected financial and operational results, the related assumptions underlying our expected results and the quotations of management. These forward-looking statements are distinguished by use of words such as "wi ...

Financial Performance - GAAP net income for Q1 2025 was $166 million, or $1.08 per diluted share, compared to $163 million, or $1.05 per diluted share in Q4 2024, and $161 million, or $1.01 per diluted share in Q1 2024[1][6] - Adjusted operating income was $169 million, or $1.10 per diluted share, consistent with Q4 2024 and up from $166 million, or $1.04 per diluted share in Q1 2024[1][6] - Net income for Q1 2025 was $165,778,000, representing a 2.5% increase from $162,738,000 in Q4 2024 and a 3.4% increase from $160,988,000 in Q1 2024[19] - Adjusted Operating Income for Q1 2025 was $168,837,000, slightly up from $168,725,000 in Q4 2024 and $166,235,000 in Q1 2024[19] Revenue and Premiums - Total revenues for Q1 2025 increased to $306,776,000, up 1.0% from $301,776,000 in Q4 2024 and 5.2% from $291,576,000 in Q1 2024[19] - Net premiums earned were $245 million, up 2% from $241 million in Q1 2024, and relatively flat from $246 million in Q4 2024[1][6] - New insurance written (NIW) was approximately $10 billion, down 26% from Q4 2024 and down 7% from Q1 2024[1][6] Losses and Ratios - Losses incurred were $31 million with a loss ratio of 12%, compared to $24 million and 10% in Q4 2024, and $20 million and 8% in Q1 2024[1][6] - The loss ratio for Q1 2025 was 12%, up from 10% in Q4 2024 and 8% in Q1 2024[19] - The expense ratio improved to 21% in Q1 2025, down from 24% in Q4 2024 and up from 22% in Q1 2024[19] Expenses and Shareholder Returns - Operating expenses were $53 million with an expense ratio of 21%, down from $58 million and 24% in Q4 2024[1][6] - The Board of Directors declared a 14% increase in the quarterly dividend from $0.185 to $0.21 per common share, payable on June 11, 2025[1][14] - The company repurchased approximately 2.0 million shares at an average price of $33.38 for a total of approximately $66 million in the quarter[1][14] Assets and Liabilities - Total assets rose to $6,721,520,000 in Q1 2025, up from $6,521,531,000 in Q4 2024 and $6,303,683,000 in Q1 2024[20] - Total liabilities increased to $1,602,113,000 in Q1 2025, compared to $1,525,435,000 in Q4 2024 and $1,589,919,000 in Q1 2024[20] Investment Income and Capital Structure - The company’s net investment income for Q1 2025 was $63,037,000, an increase from $62,624,000 in Q4 2024 and $57,111,000 in Q1 2024[19] - The company reported a Debt to Capital Ratio of 13% for Q1 2025, consistent with Q4 2024 and down from 14% in Q1 2024[20] Book Value - Book value per share increased to $33.96 in Q1 2025, compared to $32.80 in Q4 2024 and $29.89 in Q1 2024[20] Insurance In-Force - Primary insurance in-force (IIF) was $268 billion, a 2% increase from $264 billion in Q1 2024, and relatively flat from $269 billion in Q4 2024[1][6] PMIERs Sufficiency - PMIERs sufficiency was 165%, approximately $2.0 billion above the PMIERs requirements, compared to 167% in Q4 2024[1][7]

Core Insights - Enact Holdings, Inc. reported a strong financial performance for the first quarter of 2025, with net income of $166 million, or $1.08 per diluted share, reflecting a year-over-year increase [1][4] - The company emphasized its commitment to prudent underwriting, expense discipline, and returning capital to shareholders, positioning itself well amid economic uncertainties [2] Financial Performance - Net income for Q1 2025 was $166 million, up from $163 million in Q4 2024 and $161 million in Q1 2024 [3][4] - Adjusted operating income remained stable at $169 million, with adjusted diluted earnings per share at $1.10, compared to $1.09 in Q4 2024 and $1.04 in Q1 2024 [3][4] - New insurance written (NIW) was approximately $10 billion, a decrease of 26% from Q4 2024 and 7% from Q1 2024, attributed to seasonality and lower market share [4][9] Key Ratios and Metrics - Return on Equity (ROE) was reported at 13.1%, with an adjusted operating ROE of 13.4%, showing slight declines from the previous quarters [3][9] - The loss ratio increased to 12% from 10% in Q4 2024 and 8% in Q1 2024, driven by lower reserve releases [9][22] - The expense ratio improved to 21% from 24% in Q4 2024, indicating better expense management [9][22] Capital and Liquidity - PMIERs sufficiency was reported at 165%, approximately $2.0 billion above requirements, down from 167% in Q4 2024 [9][22] - The company held $356 million in cash and cash equivalents, with total assets amounting to $6.72 billion as of March 31, 2025 [9][21] - Enact repurchased approximately 2.0 million shares for about $66 million during the quarter and announced a new share repurchase program of up to $350 million [9][22] Dividends and Shareholder Returns - A quarterly dividend of $0.185 per share was paid, with a subsequent increase to $0.21 per share announced for the next quarter [9][22] - The company completed a $200 million dividend from its subsidiary EMICO to enhance capital return capabilities [9][22]

Core Points - Enact Holdings, Inc. declared a quarterly dividend of $0.21 per common share, marking a 14% increase from the previous quarter [1] - The company authorized a new share repurchase program allowing for the purchase of up to $350 million of its common stock, in addition to the remaining $6 million from the existing $250 million program [2][3] - The CEO emphasized the commitment to shareholder value through the increased dividend and share repurchase program, highlighting a consistent annual dividend increase since inception [3] Dividend and Share Repurchase - The new quarterly dividend will be payable on June 11, 2025, to shareholders of record on May 19, 2025 [1] - The share repurchase program will utilize various methods, including open market purchases and privately negotiated transactions, and may be executed under specific trading plans [3] - The timing and amount of share repurchases will be opportunistic, influenced by factors such as share price and market conditions [4] Company Overview - Enact Holdings, Inc. operates primarily through its subsidiary, Enact Mortgage Insurance Corporation, and is a leading private mortgage insurance provider in the U.S. [5] - The company aims to support homeownership by partnering with lenders to provide exceptional service and risk management [5]

Wall Street expects a year-over-year increase in earnings on higher revenues when Enact Holdings, Inc. (ACT) reports results for the quarter ended March 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on April 30, 2025, might help the stock move higher if these key numbers are better th ...