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Jun 30, 2024
Enact Q2 2024 Earnings Report
Enact's financial performance remained strong, marked by record insurance in-force and prudent risk management.
Key Takeaways
Enact Holdings reported a strong second quarter in 2024, with a net income of $184 million and adjusted operating income of $201 million. The company achieved record primary insurance in-force of $266 billion and maintained a strong PMIERs sufficiency of 169%.
Net income reached $184 million, or $1.16 per diluted share.
Adjusted operating income was $201 million, or $1.27 per diluted share.
New insurance written (NIW) totaled $14 billion.
Primary insurance in-force hit a record $266 billion, a 3% increase year-over-year.
Enact
Enact
Enact Revenue by Segment
Revenue by Segment
Net Premiums Earned Revenue
CapyFin.comNet Investment Income Revenue
CapyFin.com Forward Guidance
Enact anticipates a total 2024 capital return of between $300 and $350 million, with the final amount and form of capital returned to shareholders dependent on business performance, market conditions, and regulatory approvals.
Positive Outlook
- The company delivered a very strong performance in the second quarter.
- The company reflected continued successful execution across all aspects of its strategy.
- The company generated record insurance-in-force.
- The company prudently managed risks.
- The company maintained expense discipline and returning capital to its shareholders.
Challenges Ahead
- The company faces a dynamic market backdrop.
- Approximately 4% of the mortgages in our portfolio had rates at least 50 basis points above the prevailing market rate.
- Combined cash and invested assets decreased $90 million from the prior quarter, primarily due to share buybacks, common dividend and debt redemption and issuance costs.
- The transaction resulted in approximately $11 million of debt extinguishment costs consisting of approximately $8 million in debt redemption costs, as well as approximately $3 million in accelerated deferred issuance costs in the quarter, both of which are excluded from our adjusted operating income.
- The final amount and form of capital returned to shareholders will ultimately depend on business performance, market conditions, and regulatory approvals.
Revenue & Expenses
Visualization of income flow from segment revenue to net income