Q4 2024 Enact Holdings Inc Earnings Call Transcript
Key Points
- Enact Holdings Inc (ACT) achieved a record high adjusted operating income of $718 million for the full year 2024, marking a 9% increase year over year.
- The company successfully issued $750 million in senior notes, marking its first investment-grade debt issuance as a public company, which saved $2 million in annual interest expense.
- Enact Holdings Inc (ACT) maintained a strong balance sheet with a PMIERs sufficiency of 167%, or $2.1 billion above requirements.
- The company returned $354 million to shareholders in 2024, exceeding its capital return guidance.
- Enact Holdings Inc (ACT) received credit rating upgrades from S&P and Fitch, reflecting the strength of its business model and balance sheet.
- New delinquencies increased by 6% in the fourth quarter, influenced by recent hurricanes.
- Persistency decreased by 4 points year over year, primarily driven by a decline in mortgage rates.
- Total delinquencies rose to 23,600 in the fourth quarter, with a primary delinquency rate of 2.4%.
- The company's expenses in the fourth quarter were $58 million, slightly higher than the third quarter.
- The net earned premium rate decreased by 0.8 basis points sequentially due to higher seeded premiums.
Hello, and welcome to Enact fourth-quarter earnings call. Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your first speaker, Daniel Kohl, Vice President of Investor Relations. You may begin.
Thank you, and good morning. Welcome to our fourth-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 closed 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.
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