Secures approximately $170 million of excess of loss reinsurance coverage from a panel of third-party reinsurance providersRALEIGH, N.C., Oct. 30, 2025 (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 $170 million of additional excess of loss (XOL) reinsurance coverage. This credit risk transfer (CR ...

Financial Performance - Essent Group Ltd reported net income of $195.3 million for 2Q25, compared to $175.4 million in 1Q25[5] - The annualized Return on Equity (ROE) increased to 13.8% in 2Q25 from 12.5% in 1Q25[5] - The combined ratio for the U S Mortgage Insurance portfolio improved to 22.1% in 2Q25 from 31.8% in 1Q25[5] - The book value per share has grown at an annualized rate of 18.2% since December 31, 2013, reaching $56.98 as of June 2025[9] Portfolio and Risk Management - The U S Mortgage Insurance In Force (IIF) reached $246.8 billion in 2Q25, up from $244.7 billion in 1Q25[5] - New Insurance Written (NIW) increased to $12.5 billion in 2Q25 from $9.9 billion in 1Q25[5] - The portfolio default rate decreased slightly to 2.12% in 2Q25 from 2.19% in 1Q25[5] - 97% of the Insurance In Force (IIF) is subject to reinsurance protection as of June 30, 2025[5,30,33] Capital and Liquidity - Shareholders' equity remained stable at $5.7 billion in both 1Q25 and 2Q25[5] - The company has ample liquidity, with $1.0 billion in cash and investments available for sale at the holding companies[32] - The PMIERs sufficiency ratio was 176% in 2Q25, compared to 172% in 1Q25[5]

Financial Data and Key Metrics Changes - For Q2 2025, the company reported a net loss to common shareholders of $3 million, translating to a loss per share of $0.04, primarily due to fair value declines and a non-recurring tax adjustment of $14 million [2][11] - The book value per share as of June 30 was $15, a slight decrease from March 31 [2] - The company declared a common dividend of $0.40 per share for the second quarter [2] Business Line Data and Key Metrics Changes - The Credit Sensitive Strategies contributed $22 million to pretax income, while interest rate sensitive strategies reported a pretax loss of $5 million [11] - Gains from organically created Credit Risk Transfer (CRT) investments were $17 million, with $9 million from realized gains and $8 million from market-driven value changes [11] - The company completed three securitizations totaling $1.1 billion in UPB, retaining $71 million in new investments [4] Market Data and Key Metrics Changes - Total correspondent loan acquisition volume was $30 billion in Q2, up 30% from the previous quarter [12] - PMT retained 17% of total conventional correspondent production in Q2, down from 21% in Q1 [13] - The weighted average coupon of mortgages underlying MSRs was 3.9%, indicating borrowers have little incentive to refinance [6] Company Strategy and Development Direction - The company aims to execute one securitization of agency eligible non-owner occupied loans per month and one jumbo loan securitization per quarter, focusing on leveraging organic investment creation abilities [5] - PMT's structure allows efficient capital deployment into long-term mortgage assets without the operational burdens of origination and servicing [3] - The company is positioned to continue growing its private label securitization market presence, having been a top three issuer of prime non-agency MBS [4] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating a volatile market by leveraging competitive advantages, including a diversified investment portfolio and strong risk management practices [10] - The company expects to maintain a stable dividend level of $0.40, supported by projected taxable income and investment strategies [40] - Management noted that realized losses are expected to remain limited due to the overall credit strength of consumers and substantial home equity accumulation [8] Other Important Information - The fair value of PMT's MSR asset at the end of the quarter was $3.8 billion, slightly down from March 31 [12] - Delinquency rates for the MSR portfolio remain low, attributed to strong consumer credit and home price appreciation [8] - The company issued $105 million in unsecured senior notes due in February 2030 [15] Q&A Session Summary Question: Discussion on non-agency securitization opportunity and returns - Management noted that non-agency subordinate MBS experienced credit spread tightening despite rate volatility, with expected returns in the mid to low teens [18][19] Question: Retained interest on jumbo loans - The company retained a senior mezzanine tranche on the jumbo securitization, indicating a likely trend of retaining a greater portion of interest in future securitizations based on capital deployment [21][22] Question: Sustainability of the $0.40 dividend level - Management remains comfortable with the $0.40 dividend level, citing stability in taxable income and expected returns from investments [40]