GAAP Net Income of $161 million, or $1.01 per diluted shareAdjusted Operating Income of $166 million, or $1.04 per diluted shareReturn on Equity of 13.8% and Adjusted Operating Return on Equity of 14.2%Record Primary insurance in-force of $264 billion, a 4% increase from first quarter 2023PMIERs Sufficiency of 163% or $1,883 millionBook Value Per Share of $29.89 and Book Value Per Share excluding AOCI of $31.40 RALEIGH, N.C., May 01, 2024 (GLOBE NEWSWIRE) -- Enact Holdings, Inc. (NASDAQ:ACT) today announced financial results for the first quarter of 2024. "Our strong performance in the first quarter establishes a solid foundation for the rest of the year," said Rohit Gupta, President and CEO of Enact. "During the quarter, we reported insurance-in-force growth, continued strong credit performance, and delivered on our commitment to expense discipline. Additionally, we continued to execute against our balanced capital allocation strategy, including returning capital to our shareholders through our recently increased quarterly dividend and share repurchases. Looking forward, we are confident in the long-term drivers of demand for mortgage insurance, our position in the current market environment, and our team's ability to execute on our strategic priorities and deliver value for all our stakeholders." Key Financial Highlights (In millions, except per share data or otherwise noted) 1Q24   4Q23   1Q23 Net Income (loss) $ 161     $ 157     $ 176   Diluted Net Income (loss) per share $ 1.01     $ 0.98     $ 1.08   Adjusted Operating Income (loss) $ 166     $ 158     $ 176   Adj. Diluted Operating Income (loss) per share $ 1.04     $ 0.98     $ 1.08   NIW ($B) $ 11     $ 10     $ 13   Primary IIF ($B) $ 264     $ 263     $ 253   Primary Persistency Rate   85 %     86 %     85 % Net Premiums Earned $ 241     $ 240     $ 235   Losses Incurred $ 20     $ 24     $ (11 ) Loss Ratio   8 %     10 %     (5 )% Operating Expenses $ 53     $ 59     $ 54   Expense Ratio   22 %     25 %     23 % Net Investment Income $ 57     $ 56     $ 45   Net Investment gains (losses) $ (7 )   $ (1 )   $ (0 ) Return on Equity   13.8 %     13.8 %     16.8 % Adjusted Operating Return on Equity   14.2 %     13.9 %     16.7 % PMIERs Sufficiency ($) $ 1,883     $ 1,887     $ 2,098   PMIERs Sufficiency (%)   163 %     161 %     164 %                         First Quarter 2024 Financial and Operating Highlights Net income was $161 million, or $1.01 per diluted share, compared with $157 million, or $0.98 per diluted share, for the fourth quarter of 2023 and $176 million, or $1.08 per diluted share, for the first quarter of 2023. Adjusted operating income was $166 million, or $1.04 per diluted share, compared with $158 million, or $0.98 per diluted share, for the fourth quarter of 2023 and $176 million, or $1.08 per diluted share, for the first quarter of 2023. New insurance written (NIW) was $11 billion, up 1% from $10 billion in the fourth quarter of 2023 and down 20% from the first quarter of 2023 primarily driven by lower estimated MI market size and lower estimated market share. NIW for the current quarter was comprised of 95% monthly premium policies and 96% purchase originations. Primary insurance in-force was $264 billion, up from $263 billion in the fourth quarter of 2023 and up 4% from $253 billion in the first quarter of 2023. Persistency was 85%, modestly down from 86% in the fourth  quarter of 2023 and flat as compared to the first quarter of 2023. Driven by continued elevated mortgage rates persistency has remained above 80% for the past eight quarters and approximately 4% of the mortgages in our portfolio had rates at least 50 basis points above the prevailing market rate. Net premiums earned were $241 million, up from $240 million in the fourth quarter of 2023 and up 2% from $235 million in the first quarter of 2023. Net premiums increased sequentially primarily driven by our growth in attractive adjacencies consisting primarily of Enact Re's GSE CRT participation while insurance-in-force growth was offset by higher ceded premiums. The year-over-year increase was primarily driven by insurance in-force growth, partially offset by higher ceded premiums and the lapse of older, higher priced policies. Losses incurred for the first quarter of 2024 were $20 million and the loss ratio was 8%, compared to $24 million and 10%, respectively, in the fourth quarter of 2023 and $(11) million and (5)%, respectively, in the first quarter of 2023. The sequential decrease in losses and loss ratio were primarily driven by seasonally lower new delinquencies. Year-over-year increases in losses and loss ratio were driven by higher current period delinquencies as newer, larger books continue their normal loss development and a lower reserve release in the current quarter. Favorable cure performance from early 2023 and prior delinquencies remained above our expectations, which resulted in a  $54 million reserve release in the quarter as compared to reserve releases of $53 million and $70 million in the fourth quarter of 2023 and first quarter of 2023, respectively. Operating expenses in the current quarter were $53 million and the expense ratio was 22%, compared to $59 million and 25%, respectively, in the fourth quarter of 2023 and $54 million and 23%, respectively in the first quarter of 2023. The sequential decrease was primarily driven by lower incentive-based compensation while the year-over-year decrease was driven in part by lower corporate overhead. Net investment income was $57 million, up from $56 million in the fourth quarter of 2023 and $45 million in the first quarter of 2023, driven by the continuation of elevated interest rates and higher average invested assets. Net investment loss was up  $6 million from the fourth quarter of 2023 and up $7 million versus the same period in the prior year as we identified assets that upon selling allow us to recoup losses through higher net investment income over the next couple of years. Annualized return on equity for the first quarter of 2024 was 13.8% and annualized adjusted operating return on equity was 14.2%. This compares to fourth quarter 2023 results of 13.8% and 13.9%, respectively, and to first quarter 2023 results of 16.8% and 16.7%, respectively. Capital and Liquidity EMICO completed a distribution of approximately $270 million that will primarily be used to support our ability to return capital to shareholders and bolster financial flexibility. Enact Holdings, Inc. held $331 million of cash and cash equivalents plus $285 million of invested assets as of March 31, 2024.  Combined cash and invested assets increased $160 million from the prior quarter, primarily due to EMICO's distribution partially offset by our share buyback program and common dividend in the first quarter. S&P Global Ratings ("S&P") upgraded the Insurer Financial Strength rating for EMICO to A- from BBB+. S&P also upgraded the Issuer Credit Rating for EHI to BBB- from BB+. The outlook for both ratings is stable. We executed an excess of loss reinsurance transaction with a panel of highly rated reinsurers, which provides up to $255 million of reinsurance coverage on a portion of current and expected new insurance written for the 2024 book year, effective January 1, 2024. We secured a quota share reinsurance transaction with a panel of reinsurers that will cede approximately 21% of expected new insurance written for the 2024 book year which provides approximately $2.6 billion of ceded RIF. We increased our previously announced Enact Re affiliate quota share from 7.5% to 12.5% of a portion of our in-force business from EMICO along with 12.5% of 2024's new insurance written. PMIERs sufficiency was 163% and $1,883 million above the PMIERs requirements, compared to 161% and $1,887 million above the PMIERs requirements in the fourth quarter of 2023.   Recent Events We repurchased 1.8 million shares at an average price of $27.51 for a total of $49 million in the quarter.  Additionally, we purchased 0.4 million shares at an average price of $30.07 for a total of $12 million during April and there now remains $24 million on the previously announced $100 million program. Recently, the Company's Board of Directors approved a new share repurchase program with authorization to purchase up to $250 million of common stock. Recently, we announced that our Board of Directors had approved an increase to our quarterly dividend from $0.16 to $0.185 per share, payable on June 13, 2024 to common shareholders of record on May 31, 2024. Conference Call and Financial Supplement InformationThis press release, the first quarter 2024 financial supplement and earnings presentation are now posted on the Company's website, https://ir.enactmi.com. Investors are encouraged to review these materials. Enact will discuss first quarter financial results in a conference call tomorrow, Thursday, May 2, 2024, at 8:00 a.m. (Eastern). Participants interested in joining the call's live question and answer session are required to pre-register by clicking here to obtain your dial-in number and unique PIN.  It is recommended to join at least 15 minutes in advance, although you may register ahead of the call and dial in at any time during the call.  If you wish to join the call but do not plan to ask questions, a live webcast of the event will be available on our website, https://ir.enactmi.com/news-and-events/events. The webcast also will be archived on the Company's website for one year. About EnactEnact (NASDAQ:ACT), operating principally through its wholly-owned subsidiary Enact Mortgage Insurance Corporation since 1981, is a leading U.S. private mortgage insurance provider committed to helping more people achieve the dream of homeownership. Building on a deep understanding of lenders' businesses and a legacy of financial strength, we partner with lenders to bring best-in class service, leading underwriting expertise, and extensive risk and capital management to the mortgage process, helping to put more people in homes and keep them there. By empowering customers and their borrowers, Enact seeks to positively impact the lives of those in the communities in which it serves in a sustainable way. Enact is headquartered in Raleigh, North Carolina. Safe Harbor StatementThis communication contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act. These forward-looking statements may address, among other things, our expected financial and operational results, the related assumptions underlying our expected results, and the quotations of management. These forward-looking statements are distinguished by use of words such as "will," "may," "would," "anticipate," "expect," "believe," "designed," "plan," "predict," "project," "target," "could," "should," or "intend," the negative of these terms, and similar references to future periods. These views involve risks and uncertainties that are difficult to predict and, accordingly, our actual results may differ materially from the results discussed in our forward-looking statements. Our forward-looking statements contained herein speak only as of the date of this press release. Factors or events that we cannot predict, including risks related to an economic downturn or recession in the United States and in other countries around the world; changes in political, business, regulatory, and economic conditions; changes in or to Fannie Mae and Freddie Mac (the "GSEs"), whether through Federal legislation, restructurings or a shift in business practices; failure to continue to meet the mortgage insurer eligibility requirements of the GSEs; competition for customers; lenders or investors seeking alternatives to private mortgage insurance; an increase in the number of loans insured through Federal government mortgage insurance programs, including those offered by the Federal Housing Administration; and other factors described in the risk factors contained in our 2023 Annual Report on Form 10-K and other filings with the Securities and Exchange Commission, may cause our actual results to differ from those expressed in forward-looking statements. Although Enact believes the expectations ...