Enact Holdings, Inc. (NASDAQ:ACT) Q1 2023 Earnings Conference Call May 4, 2023 8:00 AM ET

Company Participants

Daniel Kohl - Vice President, Investor Relations

Rohit Gupta - President & Chief Executive Officer

Dean Mitchell - Chief Financial Officer & Treasurer

Conference Call Participants

Rick Shane - JPM

Mihir Bhatia - Bank of America

Arren Cyganovich - Citigroup

Geoffrey Dunn - Dowling & Partners

Eric Hagen - BTIG

Operator

Hello, and welcome to Enact's First 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.

Daniel Kohl

Thank you and good morning. Welcome to our First 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, our performance and progress against our strategy. Dean will then discuss the details of our first quarter results, before turning the call back to Rohit for closing remarks. And then we will take your questions.

The earnings materials we issued after market closed yesterday contain our financial results for the first quarter of 2023 along with a comprehensive set of financial and operational metrics. These are available on the Investor Relations section of the company's website at www.ir.enactmi.com. Today's call is being recorded and will include the use of forward-looking statements. These statements are based on current assumptions, estimates, expectations and projections as of today's date and are subject to risks and uncertainties which may cause actual results to be materially different. We undertake no obligation to update or revise such statements as a result of the new information. For a discussion of these risks and uncertainties, please review the cautionary language regarding forward-looking statements in today's press release, as well as in our filings with the SEC, which will be available on our website.

Please keep in mind, the earnings materials and management's prepared remarks today include certain non-GAAP measures. Reconciliations of these measures to the most relevant GAAP metrics can be found in the press release, our earnings presentation, and our upcoming SEC filing on our website.

With that, I will turn the call over to Rohit.

Rohit Gupta

Thank you, Daniel. Good morning, everyone. Thank you for joining us to discuss our first quarter 2023 results. The first quarter marked a strong start to 2023 for Enact. We delivered a 17% return on equity and net income of $176 million or $1.08 per diluted share, which was up 7% year-over-year. In a market that remained dynamic and volatile, we achieved these robust results by executing our strategy, maintaining our commitment to a strong balance sheet and continuing to prudently manage our risk. Insurance in-force in the quarter was a record $253 billion, driven by persistency of 85% and new insurance written of $13 billion as we continued to win new business.