Enact (US:ACT)2021-11-05 19:58Financial Performance - Enact's Primary New Insurance Written (NIW) decreased by 10% compared to both the prior quarter and the prior year, reflecting a smaller private mortgage insurance market[48] - Premiums remained flat compared to the previous quarter but decreased year-over-year due to lower single premium policy cancellations, the lapse of older, higher-priced policies, and increased ceded premiums[48] - The primary delinquency rate decreased for the fifth consecutive quarter to 3.1%[61] - The investment portfolio had unrealized gains of $170 million in 3Q21, down from $203 million in 2Q21[70] Market Dynamics - 92% of 3Q21 Year-to-Date (YTD) NIW came from customers who have submitted loans to Enact every year since 2016[6] - Purchase mortgage applications are growing, driving the MI market size[17] - First-time home buyer (FTHB) activity has outpaced overall residential home sales since 2016, with favorable demographics expected to continue[20] Capital and Risk Management - Enact's Risk-To-Capital (RTC) ratio remained strong at 11.8 in 3Q21, consistent with 2Q21 and above regulatory requirements[64] - The company anticipates recommending a $200 million dividend in 2021, contingent on positive economic and business conditions and the resolution of forbearance-related delinquencies[67] - 97% of the investment portfolio is investment grade[70] Portfolio Characteristics - Persistency improved sequentially to 65% as market conditions normalized[45] - Single product concentration declined to 13% of Enact's portfolio[49] - Approximately 56% of current period cures were from forbearance exits[61]