Fri, Aug 2, 10:37 AM (88 days ago)
Enact Holdings, Inc. reported a net income of $183.7 million for Q2 2024, up 9% from Q2 2023. Total revenues increased by 8% to $298.8 million, driven by higher premiums and net investment income. Premiums rose 3% due to insurance in-force growth, while net investment income increased 17% due to higher yields and average invested assets. The loss ratio improved to -7%, reflecting a $77 million reserve release from favorable delinquency cure performance. The expense ratio remained stable at 23%. Net earned premiums for the six months ended June 30, 2024, were $485.3 million, up 2% from the prior year. The company issued $13.6 billion in new insurance written (NIW) in Q2 2024, a 10% decrease from Q2 2023, attributed to lower mortgage origination activity. Persistency rates remained high at 83%, contributing to a $3.1 billion increase in primary insurance in-force since December 31, 2023. The company completed a $750 million Senior Notes issuance, using the proceeds to redeem $750 million of 2025 Notes. As of June 30, 2024, Enact's risk-to-capital ratio was 10.8:1, below the regulatory maximum of 25:1. The PMIERs sufficiency ratio was 169%, benefiting from reinsurance credits. Enact increased its quarterly dividend to $0.185 per share and announced a new $250 million share repurchase program.