Enact (ACT)2025-05-02 20:01Financial 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]