Q3 2024 Enact Holdings Inc Earnings Call Transcript
Key Points
- Enact Holdings Inc (ACT) reported an adjusted operating income of $182 million, up 11% year over year.
- The company achieved an adjusted return on equity of 15% and an adjusted book value per share of $33.27, up 3% sequentially and 10% year over year.
- Enact Holdings Inc (ACT) maintained a strong capital position with a PMIER sufficiency of 173% or $2.2 billion above requirements.
- The company successfully returned $100 million to shareholders through share buybacks and dividends in the third quarter.
- Enact Re, a strategic initiative, received an A- rating from S&P, enhancing its capital optimization and commercial opportunities.
- New insurance written was approximately $14 billion, flat sequentially and down 6% year over year, primarily due to lower estimated market share.
- New delinquencies rose in the quarter, driven by seasonality and the aging of newer books.
- The loss ratio increased to 5% from negative 7% in the previous quarter, primarily due to a lower reserve release and higher new delinquencies.
- Operating expenses remained flat at $56 million, with an expense ratio of 22%, indicating challenges in reducing costs.
- The company anticipates a more meaningful impact from Hurricanes Helene and Milton on delinquencies in the fourth quarter.
Good day, and welcome to the Enact third-quarter 2024 earnings conference call. (Operator Instructions) Please note this event is being recorded.
I would now like to hand the call to Daniel Kohl, Vice President of Finance and Investor Relations. Please go ahead.
Thank you, and good morning. Welcome to our third-quarter earnings call.
Joining me today are Rohit Gupta, President and Chief Executive Officer; and Dean Mitchell, Chief Financial Officer and Treasurer. Rohit will provide an overview of our business performance and progress against our strategy. Dean will then discuss the details of our quarterly results before turning the call back to Rohit for closing remarks. We will then take your questions.
The earnings materials we issued after market close yesterday contain our financial results for the quarter, along with a comprehensive set of financial and operational metrics. These are available on the Investor Relations section of our website.
Today's call is being
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