Enact (ACT) - 2024 Q2 - Quarterly Report

Financial Performance - Total revenues for Q2 2024 were $298,834, an increase of 7.5$277,522 in Q2 2023[14] - Net income for Q2 2024 was $183,673, representing a 9.1$168,020 in Q2 2023[16] - Premiums earned in Q2 2024 were $244,567, up from$238,520 in Q2 2023, reflecting a growth of 2.2%[14] - Net investment income increased to $59,773 in Q2 2024, compared to$50,915 in Q2 2023, marking a rise of 17.4%[14] - The company reported a total comprehensive income of $184,845 for Q2 2024, compared to$143,019 in Q2 2023, an increase of 29.3%[16] - Net income for the six months ended June 30, 2024, was $344,661, compared to$344,008 for the same period in 2023, reflecting a slight increase[26] - Net cash provided by operating activities increased to $331,996 for the six months ended June 30, 2024, from$287,185 in 2023, representing a growth of approximately 15.6%[26] - Net investment income for the six months ended June 30, 2024, was $116,884, up from$96,256 in 2023, indicating a year-over-year increase of about 21.5%[34] - For the six months ended June 30, 2024, net income available to common stockholders was $344.661 million, compared to$344.008 million for the same period in 2023[127] - Basic earnings per share for the six months ended June 30, 2024, was $2.18, an increase from$2.13 for the same period in 2023[127] Assets and Equity - Total assets as of June 30, 2024, were $6,349,372, up from$6,190,473 at the end of 2023, indicating a growth of 2.6%[12] - Total equity increased to $4,825,829 as of June 30, 2024, compared to$4,632,347 at the end of 2023, reflecting a growth of 4.2%[12] - Cash and cash equivalents at the end of the period increased to $699,035 as of June 30, 2024, from$691,416 at the end of June 2023[26] Stock Repurchase and Dividends - The company repurchased common stock worth $48,610 during Q2 2024[20] - The company repurchased common stock worth$98,334 during the six months ended June 30, 2024, compared to $63,435 in the same period of 2023, reflecting a significant increase of about 55$0.185 per share was paid in Q2 2024, up from $0.16 per share in Q2 2023[135] - As of June 30, 2024,$238.2 million remained available under the share repurchase program[134] Investment Performance - Unrealized investment losses on available-for-sale securities were $236,463 as of June 30, 2024, compared to$230,556 at the end of 2023, indicating a slight deterioration in investment performance[42] - The total fair value of fixed maturity securities available-for-sale was $5,331,345, with gross unrealized losses of$318,662[47] - The amortized cost of total investments as of June 30, 2024, was $5,644,893, reflecting a decrease in fair value compared to the previous period[47] - The total fair value of fixed maturity securities in an unrealized loss position was$4,195,578, with gross unrealized losses of $318,662 as of June 30, 2024[49] - The fair value of U.S. corporate fixed maturity securities was$2,723.7 million, with $2,476.5 million classified as Level 2 and$247.2 million as Level 3[81] - Approximately 89% of the fixed maturity securities portfolio was priced using third-party pricing services as of June 30, 2024[64] Liabilities and Borrowings - The carrying amount of long-term borrowings was $742.368 million, with a fair value of$749.880 million[98] - As of June 30, 2024, long-term borrowings totaled $742.368 million, a slight decrease from$745.416 million as of December 31, 2023[114] - The company issued $750 million in Senior Notes due 2029, with an interest rate of 6.25$750 million of its 6.5% senior notes due 2025 at a price of 101% of the principal amount, resulting in a loss on debt extinguishment of $10.9 million[115] - The company has a five-year unsecured revolving credit facility of$200 million, with the option to increase by an additional $100 million, maturing in June 2027[116] - The company is in compliance with all covenants of the revolving credit facility, which has remained undrawn through June 30, 2024[117] Loss Reserves and Insurance Operations - Loss reserves decreased to$508,138 as of June 30, 2024, from $518,191 at the end of 2023, a reduction of 1.9$505.362 million, down from $516.221 million at the beginning of the period[102] - The gross loss reserves for domestic mortgage insurance decreased from$517.515 million at the beginning of the period to $506.710 million at the end of the period[102] - Losses and loss adjustment expenses (LAE) incurred related to the current accident year were$135.053 million, compared to $120.175 million for the same period in 2023[104] - The company recorded favorable reserve adjustments of$131 million primarily on prior accident year reserves due to improved cure performance of delinquencies[104] - The total incurred losses and LAE for the six months ended June 30, 2024, were $1.821 million, reflecting a decrease from the previous year[104] - The company operates through a single segment, focusing on residential mortgage guaranty insurance, with operations in all 50 states and the District of Columbia[31]