Enact Holdings: Initiation of Coverage – How Are They Carrying Out Effective Capital and Risk Management? 

Enact’s first quarter 2024 financial results showcase a company navigating through complex market dynamics while maintaining a robust financial position. This quarter reflects a solid corporate strategy focused on risk management, capital return, and iterative growth amidst fluctuating economic conditions. Enact reported a net income of $161 million, translating to $1.01 per diluted share, and an achieved return on equity of 14%. The company’s perseverance in managing its insured portfolio resulted in a record $264 billion in insurance in-force, marking a 4% year-over-year increase. Such growth was supported by a persistent rate of 85% and a notable $11 billion in new insurance written during the quarter. Despite challenges posed by high borrowing costs which had a tempering effect on origination volumes, the company benefited from increased pricing power and rigorous underwriting standards, maintaining a delinquency rate at a manageable 2%.