DEF: Enact Holdings Reports Strong 2024 Performance, Focuses on Shareholder Returns and Strategic Growth

Enact Holdings invites stockholders to its 2025 Annual Meeting, highlighting record net income and strategic priorities.

Summary

• Enact Holdings invites stockholders to its 2025 Annual Meeting on May 14, 2025.
• In 2024, Enact achieved a record net income of $688 million and expanded its insurance in-force to $269 billion.
• Adjusted operating expenses decreased by 2% despite inflation.
• S&P and Fitch upgraded Enact's ratings in 2024 and January 2025, respectively.
• PMIERs sufficiency was $2.1 billion, 167% above requirements, at year-end.
• Enact returned over $1 billion to shareholders since its IPO through share repurchases and dividends.
• In 2024, Enact helped nearly 140,000 households achieve homeownership.
• Enact Re, launched in 2023, continued to yield results throughout 2024 with strong underwriting standards and risk-adjusted returns.
• The company aims to drive profitable growth, maximize efficiency, maintain strong capital levels, and provide an exceptional employee experience in 2025.
• The company is providing the Proxy Statement and Annual Report on Form 10-K for the year ended December 31, 2024, to stockholders over the Internet.

Sentiment

Score: 8

Explanation: The document presents a positive outlook with strong financial results, strategic growth initiatives, and a commitment to shareholder returns. The company's achievements in 2024 and future plans contribute to a favorable sentiment.

Positives

• Enact generated strong financial performance, reaching record net income of $688 million.
• The company expanded its insurance in-force to $269 billion.
• Enact reduced adjusted operating expenses by 2% in an inflationary environment.
• The company received rating upgrades from S&P and Fitch.
• Enact operates from a strong capital and liquidity position, with PMIERs sufficiency at 167% above requirements.
• The company has returned over $1 billion to shareholders since its IPO.
• Enact helped nearly 140,000 households achieve the dream of home ownership in 2024.
• Enact Re is generating strong risk-adjusted returns.
• The company scored in the 94th percentile in the Gallup Overall Employee Engagement Index.

Risks

• The document mentions that forward-looking statements are subject to risks and uncertainties, including those set forth in the 2024 Annual Report.
• Higher interest rates, low housing supply, and affordability continued to impact the business and financial results.

Future Outlook

The company expects the U.S. economy to experience modest GDP growth and anticipates continued growth in the private mortgage insurance market.

Management Comments

• As we move forward, we will continue to be prepared for a variety of economic scenarios and to execute diligently against our plans to further build a resilient portfolio, strengthen our financial position, and maximize long-term shareholder value.
• Enhancing Enacts industry-leading capabilities remains at the forefront in 2025, as we continue to pursue growth, maximize efficiency, and provide best-in-class customer service, all of which contribute to increasing shareholder value.

Industry Context

The document highlights the importance of mortgage insurance for first-time homebuyers in the current environment, suggesting a positive outlook for the industry.

Comparison to Industry Standards

• The document mentions that Enact served over 1,600 active customers including all of the top 50 mortgage originators that use private mortgage insurance.
• The document mentions that Enact's 2024 market share was approximately 17%.
• The document mentions that Enact Re participated in all of the GSE Credit Risk Transfer transactions that came to market.

Related Party Transactions

• The document mentions a Shared Services Agreement with Genworth, where Genworth provides administrative and support services to Enact.
• The document mentions an Intellectual Property Cross License Agreement with Genworth.
• The document mentions a Transitional Trademark License Agreement with Genworth.
• The document mentions Investment Management Agreements with Genworth for the management of their investment portfolios.
• The document mentions a Tax Allocation Agreement with Genworth.

Stakeholder Impact

• Shareholders: The company is committed to maximizing long-term shareholder value through strategic execution and capital returns.
• Employees: Enact aims to provide an exceptional employee experience and is recognized as a Best Place to Work.
• Homebuyers: Enact helps nearly 140,000 households achieve homeownership, contributing to community stability and wealth creation.

Next Steps

• Stockholders are encouraged to vote on the proposals outlined in the Proxy Statement.
• Enact will continue to execute on its strategic priorities to drive profitable growth, maximize efficiency, maintain strong capital levels, and provide an exceptional employee experience.

Key Dates

Keywords

mortgage insurance, Enact Holdings, annual meeting, shareholder value, financial performance, homeownership, PMIERs, Enact Re, sustainability, corporate governance