Enact Holdings Reports $688 Million Net Income for 2024, Adjusted Operating Income Rises to $718 Million

Enact Holdings, Inc. (EHI) reported net income of $688 million for the year ended December 31, 2024, a 3% increase compared to $666 million in 2023. Adjusted operating income, a non-GAAP measure, reached $718 million in 2024, up from $676 million in the previous year. New insurance written (NIW) totaled $51.0 billion in 2024, a 4% decrease from the $53.1 billion recorded in 2023. The company attributed the decrease in NIW to slower mortgage origination activity in response to elevated mortgage rates and low housing supply.

Significant changes compared to the prior year include a 16% increase in net investment income, driven by higher investment yields and average invested assets, and a 42% increase in losses incurred, partially offset by a $252 million reserve release due to strong cure performance and loss mitigation efforts. The company's loss ratio was 4% in 2024, up from 3% in 2023, while the expense ratio remained consistent at 23%. The company's largest customer accounted for 20% of total NIW and 11% of total revenues in 2024.

Strategic developments during the year included several reinsurance transactions, including quota share and excess-of-loss agreements, designed to mitigate future loss volatility and enhance capital management. EHI also issued $750 million in senior notes due 2029, using the proceeds to redeem its 2025 notes. The company contributed $250 million to its Bermuda-based subsidiary, Enact Re, to support increased reinsurance activity and new business opportunities. As of December 31, 2024, EHI had 421 full-time employees, all located in the United States.

Key operational developments included a primary insurance in-force (IIF) of $268.8 billion as of December 31, 2024, a 2% increase from the previous year. The weighted average loan-to-value (LTV) ratio of the IIF remained at 93%, while the weighted average FICO score was 745. The company's largest state concentration was California (12% of primary risk in-force), and its largest metropolitan area concentration was Phoenix, Arizona (3% of primary risk in-force). The company's primary persistency rate was 83% in 2024, down from 85% in 2023, reflecting the impact of interest rate volatility.

EHI's outlook anticipates continued challenges related to macroeconomic conditions, including interest rate fluctuations and housing market dynamics. The company expects to maintain capital sufficiency above PMIERs requirements, despite upcoming changes to those requirements. The company also plans to continue its capital return program, including quarterly dividends and share repurchases, subject to board approval and market conditions. The company noted several risk factors, including the potential for changes in GSE charters or practices, increased competition, and the impact of economic downturns on loss experience.