The following is a summary of the Enact Holdings, Inc. (ACT) Q1 2024 Earnings Call Transcript:
Financial Performance:
Enact Holdings reported Q1 net income of $161 million, or $1.01 per diluted share, with a return on equity at 14%.
There was a 4% increase in insurance in-force year-over-year, reaching a record of $264 billion due to persistency of 85% and $11 billion of new insurance written.
Delinquency rates dropped 9 basis points sequentially to 2%, and $54 million of reserves were released due to effective loss mitigation efforts and favorable credit performance.
Business Progress:
Enact operates from a strong financial position, with PMIERs sufficiency at 163%, or $1.9 billion of sufficiency, and credit risk transfers covering approximately 90% of the company's risk in-force.
The company returned $75 million of capital to shareholders in Q1 through dividends and share repurchases, and also approved a new share repurchase authorization of $250 million. The quarterly dividend was increased by 16% to $0.185 per share.
Moody's and Fitch both upgraded their outlook on Enact, reflecting the company's strong financial health.
The company has disclosed plans to continue maintaining a strong balance sheet, manage risk prudently, and drive solid returns for shareholders.
Enact has a capital return strategy to return $300 million to shareholders through a blend of ordinary dividends, share repurchases, and special dividends, focusing more on share repurchases considering current market opportunities.
More details: Enact Holdings IR
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