ACT - Earnings call transcript Q1 2024

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, and thank you for standing by. Welcome to Enact's First Quarter 2024 Earnings Call. [Operator Instructions] 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. Please begin.

Daniel Kohl

Thank you, and good morning. Quarter First our to Earnings Call. Welcome

and today Officer; to for and me will discuss an business the are will our closing strategy. Officer turning Rohit Executive Chief provide the performance our of results and details President overview against Dean then Rohit Treasurer. Rohit our Dean Gupta, and Joining progress quarterly Mitchell, before of Financial Chief back call remarks.

the projections results yesterday for Investor statements section questions. The our earnings quarter, materials of issued contain then our as These assumptions, comprehensive will are closed the include financial being website. Today's are call available current Relations a and take today's and date. your will recorded statements. with on of We of financial based operational and the These after along forward-looking expectations, we use on of market set is estimates, metrics.

to materially statements information. results Additionally, we undertake they cause may are actual obligation or subject which to differ of new and uncertainties, a result and update revise to risks no as such

filing found turn SEC prepared remarks upcoming Rohit. press Reconciliations be non-GAAP the in earnings relevant can and call a uncertainties, the forward-looking SEC, and management's certain of regarding will the language measures. press filings our the these today on please in available website. Please keep our the of website. With most our mind earnings to discussion release, include our metrics be materials today's measures in to cautionary that, as statements these release which over review with GAAP the presentation on in well For our as I'll risks and

Rohit Gupta

Thank you, Good Daniel. everyone. morning,

XXXX. marked a Our first results start strong to quarter

focus the and performance more in prior result first our operated to commitment credit discipline, of a we through position creation share our a to our quarter. repurchases driving insured We shareholders any for grow. long-term our remained continue on with value strong market strong This is in and and dividends shareholders. Our performance to distributed than expense capital portfolio strategy, robust,

strong financial execution Return was or the increased Our billion, $X.XX new insurance record driven and persistency was quarter of on can $XXX a by share. diluted be for to XX% solid year-over-year income of Net in-force seen insurance a performance. our written X% $XXX $XX in XX% million and equity clearly per billion.

perform borrowers The sheet, continues been delinquency balance higher geopolitical U.S. conflicts, environment. prime we resilient business for rates continue market mortgage with remains pre-pandemic Our a interest labor a operating levels our to factors strong well solid. and complex rates risk. Having macro economy to such through are has inflation as healthy said with as and and navigate consistent quality that, pose household while potential manufacturing

origination, prices as as higher continue demand. home costs housing While borrowing strong have supported lower well to inventory structurally by slowed be

quarter X.X%. Pricing loan-to-value continues origination was portfolio score and insured of and on of offset average homebuyer be to the help age, to believe continue homebuyer weighted were insurance was continue to effect note risk rates also We first-time our XXX risk rates higher standards to constructed credit in rigorous. pent-up milestone. I'll the volumes. attain that tool risk remained as FICO the through At helps optimistic demand we and of and more the underwriting quality persistency that the weighted the strong. end, was population portfolio will Americans reach about quarter an benefit important important The average first-time XX% which remain this layered be buyers ratio mortgage average the

the The managing and points X%, rate our with sequentially to us attractive delinquency a allows Our basis pricing prudently in deliver quarter we and basis, competitive pricing and risk-adjusted select risk expectations. engine to continue down underwrite consistent returns. was on to X while

performance and scenarios. loss credit released $XX we well mitigation for quarter, range We remain efforts. the During our of reserved of by effective favorable million driven a reserves

announcement pleased transactions returned the of We $XX in the market CRT perform our quarter repurchase quarter reinvest risk aligned came we that and and million our to in operate to underwriting while of strong to and XX% At on to share return in-force on to to million. to was GSE dividend position credit our and the million risk shareholders reflected us decision was strength in with the PMIERs during maintaining our platform subject strength we capital authorization $X.X participate repurchases sufficiency position focus our our share attractive a continue new share to well transfers. The liquidity financial opportunities a flows to flexibility. priority. sharp of to a quarter, also We capital Enact given well $XX both of from extend stock, is XXX% We've compelling strategic in as core our business. Enact capital capital in increased to $X.XXX and continue continues business Re. MI sufficiency increasing remain first that the of approximately profile quarter. allocation of adjacencies are of as remain cash our or and Re capital to Board's to committed $XXX returning end, XX% per we the shareholders billion approve today's We our the first with executed quarterly in allowed to increased return shareholders. This and into

continue fourth to note also to upgraded IPO This demonstrates business and our that and S&P returns of XXXX, strength team. issuer our rating deliver credit since the EHI's quarter, and dedicated credit execution to by our to XXXX long-term upgrade pleased and financial to similar We expect EMICO's stable. stable, to long-term strength rating the BBB- in is levels. I'm the S&P during from capital A- issuer

upgraded our I the positive again thank Moody's our reflecting a quarter in, work and Additionally, results. All for hard strong of execution their team, and our continued dedication both is and to them testament outlook Fitch positive financial a strong us to and effort.

maximizing customers while shareholders. With I our borrowers, committed over now our that, Looking to to value the we ahead, will Dean. turn for call remain and their serving

Hardin Mitchell

first $X.XX quarter strong income same morning, per XXXX. share in Thanks, fourth the $XXX last of $X.XX per XX%. Adjusted Good share per $X.XX We and equity year diluted $X.XX GAAP XX%. diluted on diluted the last diluted period share for diluted was or was of to XXXX. share $X.XX fourth year, equity in operating in quarter was per Rohit. $X.XX share $XXX quarter return Adjusted income Return XXXX. million in or the operating on to and of was the per everyone. period again compared same net the quarter in compared diluted million per share first results the delivered

$XX drivers. new revenue or first record Primary to $XXX quarter $X sequentially in in-force billion, Turning the increased and year-over-year. insurance up to billion of X% billion a up

size written lower driven market $X billion year-over-year. market prevailing was quarter, estimated billion XX% at our MI flat down of XX in or basis had X% our below by well insurance year-over-year Only almost and below share. the market rates. mortgages the portfolio was $XX the In sequentially the first portfolio lower $X in mortgages points contrast, was and primarily had XX% estimated in a rates New rate. prevailing Persistency down billion of X up or percentage decline and year-over-year. The rates sequentially point the above X%, at XX% least

higher earned attractive production elevated rates. in The by help was adjacencies, and million ceded ceded driven consist offset net GSE up successful growth $X $XXX which premiums older, participation. More primarily and to the year-over-year. sequentially in-force of resulting driven from lapse policies. up Enact higher $X execution premiums resulting offset X% premiums will we continue, elevated, anticipate While persistency from the growth increase insurance or increase primarily was of mortgage offset in CRT of higher Net rates lower by The million, and broadly, were our was million higher-priced remain sequential partially earned in-force Re's which premiums insurance by program. CRT by growth the year-over-year

Our rate by premium from basis rate modestly that impacted XX.X premium points sequentially year-over-year. quarter-to-quarter. Remember and tends our points down is factors base fluctuate basis several base and X.X was flat of to

in levels yields We around expect XXXX. stabilize to current

or was quarter premium $XX sequentially, up reflecting Investment as $XX earned or our improvement. rolls year-over-year. million investment sequentially points, quarter. portfolio and XX.X basis up basis further $X net have Higher our X.X increased ceded portfolio higher rates yields, XX% interest down million was the and over, rate yield current million, income X% first Our the premiums we in primarily points in anticipate

money yield During our of exceeded the investment portfolio yield book X%, X.X%. overall quarter, an new to contributing

a A-rated resilient high-quality focus portfolio. remains Our and assets maintaining on

until we maturity, hold income investments typically we opportunities. enhancement pursue While selectively

loss position resulting change but that pretax million quarter, $X materially future exchange this continue view noneconomic. to the in in executed not income. We'll we portfolio's for a losses investment our unrealized During our higher evaluate similar opportunities strategy investment does is of

last quarter quarter XXXX. credit. to to $XX million million the of compared million and Turning $XX negative the in were Losses in first $XX quarter

driven new quarter the to release. for trends. Year-over-year, development in in losses compared ratio of ratio a normal and the the driven that loss our delinquencies quarter quarter X% reflect was current losses and ratio by quarter quarter reserve loss and our seasonal XXXX. the by of Our current loss Sequentially, the and first were negative XX% X% were last lower large loss books

million compared reserve and from our quarter prior quarter, see release resulted to in performance first quarter expectations, respectively. we above to of and continued which the $XX million XXXX releases the million in of fourth delinquencies XXXX, XXXX $XX reserve of pure quarter During as and $XX favorable early a the in

from decreased $XX,XXX. delinquencies sequentially to New $XX,XXX

the first XXXX new was to Our X% in quarter of quarter delinquency rate X.X% compared the and sequentially. flat for

claim in approach The rate sequentially and reserving from sequentially at X% $XX,XXX an to consistent continue first current We X with to quarter expectations decreased approximate our in the rate, delinquencies levels. in with XX% pre-pandemic delinquencies prudent environment. Total macroeconomic book delinquency line new primary reflecting decreased to $XX,XXX. our points the basis to

X% first XXXX was sequentially Operating the down expenses. quarter expenses XX% down and year-over-year, to to or expense sequentially were quarter The points ratio down $X point commitment $X or percentage million down XX%, our for for $XX year-over-year. discipline. X the million Turning ongoing X and million expense reflecting of percentage

million reminder, towards the the will expenses our course thus, of of of over we and million expenses XXXX. $XXX a expect second the still weighted $XXX to half be are the As to range in year

capital. to Moving

PMIERs execution sufficiency by robust in continued and continue to capital our and success position operate program. the We a of diversified reinforced with CRT base strong our liquidity

at the sufficiency first billion XXX% above of Our PMIERs end or PMIERs $X.X was requirements quarter. the

$X.X our Additionally, credit of the of of provides XX% in-force the first to subject end and program our was PMIERs billion at transfers, quarter, CRT third-party risk credit. capital risk

during loss announced, quota new the previously quarter. closed reinsurance transactions of and share As new excess we

leverage will of from XXXX's existing XX.X% transactions we new business, portion Additionally, support primarily in of transfer. XX.X% business written. capital Re's with X.X% opportunities, quota our of Enact of a increased new and risk our GSE in-force to These insurance affiliate share consisting along affiliated credit

allocation. capital to Turning

We returning execute maintaining in sheet, investing continue balance business balances to shareholders. against a our capital framework, to prioritization capital our strong and which

During a of $XX.XX a million quarter, dividend, million paid million and weighted repurchases program. share shares average the price of our X.X repurchased we share through our through $XX quarterly out we of at for total $XX repurchase

In share a April, for $XX.XX a $XX repurchase million additional on at And remaining of repurchased. average an shares X.X million approximately our repurchased weighted XXXX, $XX of current there million total April we was XX, of authorization. as share price

million. our business. a $XXX the Both approved Board confidence continued $X.XXX share, strength increase a our reflect to our position quarterly new the we and $X.XX announced financial per XX% dividend actions share authorization in and repurchase from to of of Today,

prior our Genworth with proportionately. participate will share programs, As buyback

we million the $XXX delivered similar levels As be in we expect total to return capital reminder, still a to XXXX XXXX.

amount regulatory the final depend to return capital of conditions in As approvals. business the in past, ultimately on and shareholders form market will the performance,

a pleased and Overall, sheet focused strong on solid our shareholders. for driving XXXX maintaining managing strong risk, returns and to we're start our remain prudently balance with

With call back I'll the that, Rohit. turn to

Rohit Gupta

Thanks, Dean.

by deliver to Looking dynamics against us to ahead, realize encouraged the in our market, ability our of long-term opportunities and ability our value. continue ahead confident execute team's of be our I the to and I'm strategy and

more has become everything never stronger. been people Our responsibly commitment homeowners, to and we do help motivates

we Q&A. Operator, for are ready now

Operator

[Operator come from Instructions] And question going of our Doug the line Harter first with is to UBS.

Douglas Harter

on kind of could of of update quality First, of market NIW of either to progressing Re the the as total you or the for rates kind what the see that kind as year just amount you of increase I seeing an unfolds, kind hoping applications? in from of us give the applications impact kind how you're was underlying

Rohit Gupta

Doug, thank you question. for the

originations the be rates So I view the that to where market point with would generally in we have with provided line to is our MI last we expect forecast basically in said difficult this given market we seen to narrow XXXX quarter, a say, year, I volatility in size. it up range.

to overall Just to are spring used are selling we and coming to demand to now color homebuyer would some market consumer be mortgage to the basically in market in rates. And are some X% we into of continuing have I the seen to point inventory is the challenge the including lack add we And demand say, strong. rate. season, last or going month the that, first-time market consumers are seeing at this X% the in in volatility facing that the so of who

to very for get continues MI homes. is So helpful first-time homebuyers to into be that a especially view our product consumers,

all to get of said, But that in be good So our time, line as origination is volume size this point the in that MI to market. through expectation market generally XXXX. come being continue we will at with the very penetration products see MI

point, higher is a market -- and you give on for portfolio. And question billion, persistency are billion level a to Just of sorry, of I also, to historical tailwind market our missed your within rates comparable the in our continues your to that like our $X a XXXX business, provide question size data hedge manufacturing existing natural that. And of size retention $X on quality. credit Doug, as

we to volumes. remarks, manufacturing volume to and remains see, delegated So to we credit nondelegated And quality I strong. in both continue have we as and my said prepared from perspective, quality a continue see continue

or in direct either said audit, about underwriting to through continue that. So And while feel to that. as our monitor prepared our we remarks, I we continue through good

Douglas Harter

kind perspective? new I coping that, purchases, are on with guess are consumers what affordability how just an seeing on affordability you higher rates of the around from

Rohit Gupta

very Yes good question. Doug,

market at prepared who remarks, this that consumers said for are think are to rate. fixed of time, So as to X%, before XX-year I X% I in my point coming mortgage

consumers price stress those and qualified. in both that aligned those fact seeing risk-based are returns, through given base go And our of and process and the application case. granular can we view risk case very the have So then we actually get we loans pricing, with

certain we we seen metrics consumer what from perspective, So qualification market. up while previous in a have move saw similar purchase to

So if loan values about are to loan think level. to back to value, you XXXX the

a purchase FICO, and are very If you think they indicative about debt-to-income of market.

qualification can But continue we continue the seeing putting we about traditionally. markets we to are feel have and those good from those we So the where are consumers returns good seen on from consumer books those policies. we about a generate perspective, our to feel attractive

Operator

come Our of Mihir next America. going Bank question of is Bhatia with line to from the

Unknown Analyst

Mihir. how mortgages? market? that This any discuss And any very Caroline Is you rate ] can one, is [ that for underwriting the product on Can comments buydowns. you interest prevalent you're in other than provide on different if

Rohit Gupta

Caroline, thank you for the quesiton.

now. for continue So to buydowns buydowns, consumers a we we earnings product rate as right this strong on our ago. quarters interest about call see few market talked the We a in rate as think interest about

much how of use as teaser and limitations the that to that because X prudent would lender, brought has full trend publish not in monitor interest by the we a years on down that. We our on metric very mortgage We see money is interest the consumer similar. there are are of an is internally. to rate, at as the say been rate two some interest the there do flavor temporary to And is continue can lender One rate the So rate mortgage. but where product the for at rate buydowns. buydowns qualified explicit X financials, the the still flavors I don't

mortgage. flavor the the where consumer the then rate on for commitments, specifically well kind does a originators as buydown second And and the mortgage. And builder is of rate consumer. of well-qualified in have consumer for basis. consistent qualified through in the result, a the their change mortgage, coming is case, life also that builder any And a it's we note not that interest the So see

continue would the the channels, see being what products from but seen different of we to have we consistent past. different I usage are say originators, So our those in usage coming to

Unknown Analyst

helpful. Awesome. any you that? and about delinquent embedded then And also, the stats That's can inventory talk on you can super in share equity

Rohit Gupta

quarter, Caroline, earnings actually on presentation. the XX our Page of this Yes, we had so in did back in presentation, that

So that's is prices home had same than you for based around can XXXX on year end XX% which of quarter. see on our are delinquent end our And the and quarter. And of first the equity end at policies, using actually delinquent using methodology, than home of XX%. of 'XX at more X% those portfolio, equity our the policies mark-to-market of greater end mark-to-market which portfolio XX% the for first of policies policies at on actually prices of XX% of then of had

Operator

question our George the KBW. with is next line And from going come to of Bose

Bose George

I rate kind know Actually, peers you default probably that to out to to points are see wanted that down to reported. some to at nets XX% but ask have remains of the all recoveries, others a of what the need the above through to take X% it closer claim I would X% using? the of couple your

Hardin Mitchell

that we as strong. heightened we XX% delinquencies, question. just that a pivot we delinquencies, that reserves our set uncertainty. maybe that was, from rates claims. even the that seen the we took performance fact consider to the And believe on account and best was for if we to our economic really had we best determine the some the Yes, new establishment macroeconomic to accident referenced pressures estimate delinquencies. anything that with of XX% resiliency. in a a economic remains of economic year roll line now we've reserved, as elevated perspective, contemplate very on set did table into Bose, roll thanks emerge. If there they're various seen appropriately ensure as just in cures you prudent we really not What estimate, that we've time, to outcomes But this, ultimate really rate. Over always the And to prior on rate we're your point, claim reminder, new it was our for And performance seen result,

change think probability if So we we a point hasn't materially lift performance kind If that measured, or uncertainty the reliance and more recent economic materialized. and/or judgment gave on of approach? the little approach at that on go-forward time. What of I possibility a up, prudent of on heightened pressures appropriate less based this is we saw still basis and it's would that believe uncertainty. decrease just view if we that's the the macroeconomic on more reliance in bit

I think claim current hard rate. we the the to at appropriateness one of happened, have those of either look if XX% take a

Bose George

Okay. be Is That's you there's over then to helpful. buybacks noted to Great. Just the buybacks? start mix will and also dividends change the $XXX similar And any return. just on same, strong there? curious between the capital last given to going just million Dean, switching if year. the be

Hardin Mitchell

in of even top question. competitive dividends. discussed approach. both a repurchases, as past, dividends. the kind we the return that's great We think of Bose, three and capital in ordinary under the share those a be about stress. to it's quarterly Again, durable, waterfall special those dividends, waterfall, We At Yes, sized to really we've really ways shareholders, to have and

in the opportunistic. on, to it contrast ability are us increase I excess conditions waterfall share our that, time market little certainty capital at our when float. And the related given a maintain planned that of think, return special this our dividend quarterly through the of capital share the really and XX% obviously, because per and in our reflects repurchases liquidity, kind repurchases. the price end to economic dividends that top to to increases especially bit of prevailing quarter, dividend it's It's that at return year. allows the and more typically based our of share in are that shareholders the So through more shareholders. Share do then They're $X.XXX blunt confidence the in lastly, and limited the say of quarterly cycles. We dividends I instrument to

improved last the I in of in related the increased and our to seeing potential the last we at of this opportunities think the quarter, were addition on liquidity as our emphasize share at end year price, we repurchases, reliance stock. beginning to given share year the

first at across purposes, expectation, million think I that you quarter execution repurchased million of they our If results, $XX comparison almost XXXX. about where $XX show quarter. the against we in for all look repurchased And we

heavily you So see share I more think repurchases. relying do on us

share is going think continue by repurchase way rely the I and share If to opportunities, heavily more the the pace. capital you'll market our program be us we of forward, market see go see largely distribute see I full year-end dictated dividends special think accretive at we'll to opportunities. repurchases on pace continue If doesn't a execute planned year. as at elevated to that that for occur, to

Operator

to next from JPMorgan. the question going Rick of our line Shane come And is with

Richard Shane

run Is XX%. upon it strong? is think is I unfolds obviously, And that on of the as the touched strength I buyback too, the comparable that year would could dynamics. rate outlook, second something for regular return, the remains the favorable I to And pretty focus what get special strength about clear given plus capital the am envision flex Bose it's dividend levels. you total the to the the year, away as given X% and is if the you going the upon the XXXX of return take I whether actually you end that depending first is curious everybody trajectory that opportunities potentially And to is the to capital what dividend the in above or you, raise earnings takeaway as a think dividend. I in the of of take you the think, there buyback starting you what and sort of which capital cadence really talked to suggests returns quarter, the increasing on of are approach roughly want

Hardin Mitchell

relates questions. million. to XXXX. Yes, it way capital at to what start do we opportunities Really, guidance million I that that gets got we've remains question for the with see want share to so the appreciate market and how return as flex $XXX Bose's potentially returning off think in way, shareholders. And in the million is in the to we're increase That full which and think $XXX Rick, year timing returned $XXX much to opportunistic that even QX. timing could done repurchase our if of an again accelerated bigger like I I program

in much Obviously, quantum macroeconomic business If So more back above is more said, what key full see performance XXXX. That we is revisit to million? or year accommodative. a of cause regulatory do see our performance see to improvement If the total we with a timing amount would and/or expectations. than and us we means continued environment and return environment, for driver. business capital the come that $XXX

heading I year into think of capital as establishment year those return are the all the progress. throughout things amount as that we any appropriate we and about consider of we the think

Richard Shane

here the of there or accelerated look, other NIW or for some How as are headwinds decision as growth decelerating growth is well? does And portfolio impact much that it. growth Got well. the that down, factor certainly quarter the

Rohit Gupta

Dean is business definitely input. be And that said, performance. That that, would an captured as Yes. in

book. for previous similar MI in As XXXX. Overall, XXXX me guidance good now sized heard you market for right of to is question, that be size answer XXXX, to we wrote a our a

results for of expression business year. in the good very printed entire income terms also We

well gotten the income. And of as view how has in our we much that, in capital of looking we writing I regulatory XXXX, during business core prior stronger the done And very we the had and in guidance. terms in our are past, we that year, do years. In core metrics. addition in as Re change environment is go all economy, How I our when book ratios to in MI the business view look are similar performing how much definitely think at our into with new then that, think loss business. things the our we combined writing forward Enact business, our these view then in

updated. to continue market we'll So keep the

Operator

next our the with line Soham BTIG. of from Bhonsle And question comes

Soham Bhonsle

capital sort maybe used to would XX% the question the provide as So on I'm in million on just $XXX the buyback the the of framework and Rohit, of color along particularly some to Board sort that was you great. macro the setting dividend, in lines the I or of range? that $XXX maybe increase buyback guess the that just get assumptions But interested could which to of that first sort insight you decision the is great. return. I consider portfolio increase raise Any and were be curious to you million. maybe you

Rohit Gupta

Soham, thank you for the question.

So on dividend. increased as share buyback as increased well both

of is first I business, the of thing performance portfolio, balance our performance with our the think combined I would sheet. the start just our with view of strength our of

stronger a said remarks, continue create balance sheet. we prepared I to as in think, I my So

upgrades external two XXXX. that the being market acknowledged terms that by in rating And even recently, positive. changes being early saw outlook in addition saw of in to You XXXX, agency we

Board balance that results. is a of strength the all about of and feel the So and that proof comfortable sheet business point I

just say that picture the would goes capital return. on So confidence I into

Dean think we Now having dividend capital. which vehicles returning different From return, resiliency the previously, of to that competitive as about of within dividend outlined confidence. the us look capital considerations about that perspective, environment, is a would think that the expect you earnings, we at, normal and

no normal in our share from buyback, mind the addition drove to when the buyback basically outlined, increase. And share then liquidity addition about to program, that, to our about considerations it per market, think we dividend perspective. for market Dean considerations in addition purpose that increase a also of in talked liquidity think the our the to in we just in in the So harm share because I and is $X.XXX first XX% do about our

from you on give of a to January our Just perspective, of XXXX. XXXX liquidity, April to Soham,

on Our increased has liquidity average based daily trading volume by XXX%.

long So to would that as we is level vehicle view of the are given value, liquidity trading at share as intrinsic the right if our want use we prices always the good. we and think think that

saw So said, constructive authorization which side. advisers our to together, basis. That always that ongoing with next view we'll keep that start a the our higher us put at being on and an gave worked board share buyback confidence to as looking at metric the

we impacting the third we in where a vehicle, us. we to capital can change always dividend that's negatively So is of vehicle see that return, is liquidity the way, special if any and available which are

do think last and flexibility that to prudently, in the I very years So that intend exercised we we've moving X forward.

Soham Bhonsle

I disclosure that Got it. equity at your And has And XX% the or embedded portfolio helpful. are super of quarter, mean the still more sitting XX% on this it's even more. XX%. then or on DQs XX% remarkable

I mean, down. And is back what and defaults of sort still scenario the is the they just prices that on have assuming or you the home don't reinsurance in a today. could you think So What the end borrower be actually where you stable, do for up for? Because hope here. go that right, realistic on sitting remain scenario

forward? be just in think of could the investors I embedded default potential a range remains stable scenario, helpful that outcomes so going if sort will for you And it equity characterize just of assuming

Rohit Gupta

good very Soham question. Yes,

tailwind equity I that say an perspective, a portfolio. So would from is for embedded our

are expression what a in mentioned, XXXX of I just increases pretty some the driven Page see numbers XX, you XXXX. you on by good think and significant

in want our that acknowledge that I to because is market. not do So normal

just including out came number more price right a of range historically. few have are home much in we what days seeing the ago, that you're seen the the think appreciation numbers I now,

before actually equity a both some So home severity thing, have if time. of able using go said, delinquent foreclosed because frequency Frequency period happens. And to enough severity. you they sell go then when and is on, home home comes they're reduces instead they will that on losses. consumers for frequency, because appreciation never that their cases, up built over a getting that us, in of if to tailwind price and into That delinquency, they and presale sell frequency it see second normalize they even being their a can

finally completely the get that because mitigants to and difficult not market. stay was our who embedded claim those the put So consumers to where quantitative typically price and terms are appreciation claim. are think the that in consumers to sufficient in offset home delinquent equity I It's

the And you claims of the but closer journey, the do rates through the coming by you improved see the performance over rate that of severity, driven so, look we our or if claim, XXX% those consumers by at you factors. time factors cure quarters come X So get those cure along outlined. performance last to because to book see

Soham Bhonsle

does one this NIW your Got coming could squeeze are a NIW still in than I quarter. more But whole it I like And sector. for bit if it. the just little peers look declined results more. mean

on So just I'm cohorts? seeing would that's right? the there, out else wondering, taking you in Anything what helpful. view were a certain different you Are market be notable

Rohit Gupta

to you decline question. for Soham, year-over-year the thank you referring or Are quarter-over-quarter?

Soham Bhonsle

Year-over-year..

Rohit Gupta

about think our we you numbers. when Soham share have thing, market as market said, first you participation, final don't

it's Friday. So we tell to know landed on market, tough in overall where still the we'll

like billion we in saw perspective. NIW, think in we risk prepared when that We is we Second our wrote. we we to and like sure several would actions just the from driving the were from perspective, thing return about $XX.X pricing in perspective my and book. selection took of market profile being remarks a point right constructive, actually the that make we the a the market the pricing made I profile and mix pricing the I emphasize

be certain appetite. players being could first driven their all XXXX based by said, from actually slightly perspective, say, would our quarter that other from risk a the market share pulling on So that elevated, market year-over-year back in was I and

Our share to that's generally our think of with that we and XX% now, range. is market landing. we we line much that's believe right our expectations. our in has believe risk We very stable. And participation XX% very appetite that, But where been are

strategy share And issue our doing as the lost We our of We kind a our you believe first risk reminder, on quarter strategy. and and might with a that's at we And generally participation have right being we been that see have metric. little don't price flat. stable. front. of for risk right we the if driving focus right and right job the on concentration, layered focus as on an are managing in don't fourth look we quarter you'll those We but a think 'XX, bit, numbers 'XX that, our might

Operator

I would remarks. back now like the any to further Gupta conference for turn to Rohit

Rohit Gupta

appreciate Thank seeing Thank at Enact, the Conference next everybody's interest you, York Housing in look ]. and I New Ecosystem week. to We you Michelle [ forward in BTIG you.

Operator

This concludes today's conference call. for participating. Thank you

may disconnect. now You

Enact (ACT) 2 May 242024 Q1 Earnings call transcript