Enact (ACT) 4 May 232023 Q1 Earnings call transcript

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.

Thank you, and good morning. quarter first our to earnings call. Welcome

a our today Officer; financial and me Rohit will provide our then or are operational strategy. today's the We details against current Officer Rohit Executive forward-looking and statements are uncertainties, and on be may company's to available Chief expectations will business, of of as overview and discuss include estimates, President no an being comprehensive and new a Dean Dean of Treasurer. progress our projections www.ir.enactmi.com. Today's information. undertake and statements. obligation Gupta, and such materially Joining performance of are the These at subject remarks, will Mitchell, the Financial Chief set results of materials is call quarter financial risks date will our metrics. update These take we results call for we result assumptions, use our on yesterday of then cause website after section results turning first revise based to recorded closed back to quarter along and different. questions. The earnings Investor first and Relations and the before are Rohit issued statements the actual market for as of closing with which of the to your contain XXXX, the

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

to us quarter results. for morning, Thank XXXX Good everyone. Daniel. discuss you, our you joining Thank first

commitment of remains we continuing The robust maintaining on Enact. as X% to results past persistency continued for risk. strong during marked best prudently per by to the several progress Insurance-in-force $XXX manage a here XXXX the of strategy, XX% written customers. product a market year-over-year. sheet and commitment announcing return and first up to our works spoken further origination executing equity increase offering, enhance volatile, income which $X.XX balance differentiate support a to by a and in In of pricing insurance systems for our about new quarter to that our we $XX was billion dynamic share, or start we net new diluted simplify strong the investing achieved business. I've and We and XX% $XXX and to platform win was record designed quarter, made quarter delivered in and that enhance these driven integrations billion, the and with to experience customer additional loan and connectivity, our our a the our million

continued current rates older favorable mortgage rates lower with as in and mortgages volumes insurance-in-force interest has affected economically have continued act refinancing elevated maintaining higher as persistency As support origination to remains growth counterbalance at to NIW, a rates.

trending response uncertainty, pricing remained going persistency upwards. insurance during the new for pricing price on to basis As expect macroeconomic industry and increased forward. The across we had points portfolio XX% dynamic the rate, to constructive continue at a to tailwind we the quarter in In quarter, raised of of our market end increase mortgages the written. environment with the this prevailing our of the be below XX least

improved score our create loan-to-value quarter in our value the committed our fourth the X.X% attractive rate weighted presentation ratio for on during and FICO are pre-pandemic so and On Slide returns was to from generate a portfolio , XX% remain our in significantly slightly if was and XXXX and our remain to on pursuing risk-adjusted seen dynamics of At XXX, an X.X%, and average to portfolio basis risk as basis, of over underwriting priced with healthy, down the consistent and has was strong are risk-in-force. in quarter prudently shareholders. Overall, investor credit our confident layered quality levels. We do delinquency business and was high-quality average time. ability the X, was

equity. XX% delinquent mark-to-market addition, of an our had In or more of policies XX% estimated

frequency as of of could $XX a As long-term act risk approach the in plans. loss favorable of ever-to-date was a quarter million, past, forbearance price negative stated and X%, defaults. the ratio in reflected release both mitigant by severity our driven the to appreciation, resolution to the home and reserve and mitigation, management I this which loss The

the We current will affect believe which focus may and careful performance. Based to our future reserved our and commitment spoke environment. I views, continue various to current market excellence. and given with consideration to macro you on with we environment are well about the operational with cost for quarter on act prudence to discipline to loss respect factors we credit reserves last

in by the decrease sequentially, inflation basis ongoing the During XXX we expense our the were point on despite to expenses broadly. driving quarter, able more reduce our ratio of XX% economy impact operating a

trends environment, several it the for the Elevated view turning industry. economic of higher generally the inflation, costs secular borrowing and while MI positive Now remains possibility to we risk. continue uncertain, macro as to a supportive recession and factors to continue pose

healthy. some pre-pandemic and the as better sheets that, accumulated savings generally remain areas, despite recent In increased. softening unemployment, balances growth said Having declined And household addition, has wage in pandemic are finances the balance during levels. credit still revolving have excess consumer households by than

has does difficult the While below rate, as rental housing the sharp average in a alternative. dampened demand, to vacancy remain making rates inventories mortgage XX-year increase the well it find

help first-time low an below environment same remained have as homebuyers important continued long-term long-term to unchanged and lower average of the housing tool demand. supportive These remain MI for the of to affordability. an driver the At industry home mortgage, and for XXXX. to a surrounding buyers in housing addition largely the a supply single-family factors, qualify in In especially demographics are since starts addition, prices constructive time,

legislative, regulatory changes and been the Additionally, that lot have made the business have resilient. a implemented over business our decade last more

environment, is of more sheet of very PMIERs to sufficiency transfers. important. long-term So the while billion was less we XXX% by strength commitment industry. remained outlook or of balance quarter the and our In financial the economic the at first credit risk near-term confident risk-in-force even are in strength strong becomes current clear, covered flexibility of $X.X the at and XX% our end sufficiency MI

a an executed million panel transaction reinsurers, up we in to $XXX quarter of XXXX the reinsurance loss reinsurance Additionally, with which of year. coverage on provides excess of book our

were market. and again enhanced strength recognized performance financial by the Our

both Fitch quarter, upgrades IPO. from insurer and the upgrade the upgraded Ratings ratings financial we with received them During Moody's since strength third In received the our S&P marking rating Moody's, A-. Enact April, have from we to

position, the accompanying competitive during product capital our disciplined policyholders more I've notes key of first enhance GSE diversify focused engagement. X. Each on Fannie March we highlighted conditions addition, to the have and opportunity and for focus Enact our the We policyholders, our and restrictions XXXX investing supporting pillars: Mac of developments after our X PMIERs our these Freddie and and been and quarter. during that senior our and allocation create solutions the our discussed Mae In returning from the strong imposed satisfied our on support customer confirmation recent shareholders. I've initiatives through lifted our enhance position period, August issuance the of platform, our were already financial to quarter, on received capital to some flexibility during maintained supporting

turn to On pillar front, to our me returning of to let our capital make So continue meaningful this we third shareholders. strides.

we repurchased an in $XX million quarter, During additional stock. the

additional in to the strength decision our we to quarter's positions us and to XX% believe commitment to have an flows, and shareholders, On to April. the shareholder financial the performance per by share, Enact's creation. million will common in dividend $X.XX $X.XX our over repurchased our reflects our commitment in amount our business that increase we in Additionally, quarterly of belief to May prior Board's capital $X cash a increase and Dean and well approval say shortly. about related dividend confidence an our regular more a X, strength and sustainability return of value the We announced this

moderate on Now annual FHA administration the XXXX. of reduction anticipated, while March premium This to Agency's XX, points mid-single-digit of decrease the the is became rate loans on turning of our January announced endorsed combined loan Housing prior May mortgage level favored to the Finance the February XX pricing modest after XX. recent events. heels with percent borrowers. We insurance adjustment X on came these Federal market. effective effective and announced basis low to changes of MI for low XX, These a impact widely Biden believe actions consistent On expectations in move, changes income a

related We announcements. both monitor dynamics market to to will continue

us turn a all milestone at very minute a to call I'd take Finally, recent to of important Enact. before the to is I Dean, to over highlight that like know I

our our The have well found these wealth. a improve past insight and enabled to of company And you our last as culture. been motivates environmental, Good of our important our the create path the operations month, becoming seeking we and is with took this review as building a since and a part in public expand realize release our homeownership citizenship on page performance. It how website, report. always do. their our I and company, we journey be Investor step into years, we people next of our purpose XX encourage to For an ESG forward report can our it to it. governance everything dreams This XXXX are provides social we corporate approaching priorities and has significant to on and priorities as inaugural of

record sustainable customers, business for to inclusive of with investors and will we objectives to We help Dean. our are over and it look corporate now ESG turn of and a building our our I integrating on proud to employees, more communities. progress initiatives as forward continue build our future responsibility

Rohit. Good Thanks, strong XXXX. quarter morning, the delivered results We of first for everyone.

$X.XX to $X.XX $X.XX quarter in $XXX and diluted to period per the diluted on in diluted share to diluted per XX.X%. operating fourth last the year GAAP as $X.XX as $X.XX Adjusted fourth was share per $XXX or year mentioned, per was the return XXXX. and last of share diluted income Adjusted operating same period net income XX.X%. Rohit on equity Return in compared was equity million or increased million $X.XX per quarter in share same share As per XXXX. of share diluted the compared

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

was the of year-over-year, insurance New continued or XX% written $XX elevated $X originations resulting driven sequentially billion lower rates. mortgage billion or by interest from XX% and down billion down $X

New remains up payment policies at overall credit new of X quarter, Monthly our flat loans risk are remained first quarterly points XX% discussed rates, to counterbalancing model. and insurance quarter written up sequentially total profile insurance With The last high strong XX% insurance our standards. Rohit underwritten year-over-year. the transactions of purchase percentage for written of in up for which from with relatively NIW was our persistency written, the quarter. elevated effect up in quarter. the prudent last new that interest made flat business made XX% in our XX% of XXXX, market persistency of

expectation remain portfolio. insurance a elevated our positive for see -- persistency will in that the in short profitability interest the insurance to which levels, we term, future of rates strength expect is in-force the Given continued

Our basis premium points points down down XX.X base points of year-over-year. rate and X.X X.X basis was basis sequentially

from As are and premium variety impacted to before, a factors we've deviate changes quarter-to-quarter. of base noted by rate can

XXXX For continue will premium the our in believe XXXX, X.X change the to be decrease we seen less than rate of base in points. basis

to reflected net premium rate, lower year-over-year. premium rate the our earned also single changes cancellations addition premium in base In

of million For the were and its dilution. $X cancellations sequentially flat limiting quarter, earned future contributed potential premium, net for meaningful single premium only

the flat Net million, our several has X% $XXX million year-over-year. were rate for partially $XX rates in the the IIF portfolio earned strong program. Revenues increase interest yields quarters, under sequentially million, net were The up higher-priced for new by $X quarter in earned and growth X% was flat rise current for year-over-year. sequentially recent the by our quarter by past to sequentially lapse efficient industry insurance million driven just XX% were compared the premium up up sequentially in or Over been net X% highest the favorable quarter was investment the offset written. Investment premium million, part new in our rate of in or the $XXX The policies $XX up relatively and CRT fourth premiums our year-over-year. driven X%. in money older, and as environment income our are as

As $XXX million. portfolio we losses investment in longer-term by hold that to opportunities these In we value. market realize where maturity identify not general, the million to losses decreased to expect unless trend portfolio, of our securities unrealized quarter the end, can to par within $XX as value create we values do

portfolio do impact not share Let concerns any we commercial in me institutions. business related estate. In U.S. our now to take failed issues, a real exposure not recent some investment thoughts regional short, on to to banks the these our on a have minute from seen we have direct of certain and and

have banks. U.S. no exposure no and to exposure regional we Additionally, CMBS to significant

credit. as were quarter a quarter a benefit loss million a XXXX. $XX quarter of of the compared $XX million benefit and million Losses to in first last in to of of the Turning $XX

Our negative release the XXXX. and prior were ratio a quarter and primarily in quarter in the which X% first quarter to Losses favorable by quarter expectations X% in was performance were negative and loss the cure for loss driven in COVID-related reserve X% quarter. resulted our last above ratio from $XX million delinquencies, compared of the

delinquencies from XXX X,XXX by sequentially approximately to New XX,XXX. decreased

credit the pre-pandemic was trends. of Our X% with of rate reflective new for and positive delinquency continuation the quarter consistent levels

to economic to of delinquencies new We heightened our outpaced approximate of approximately which remain X.X%, XX% delinquency delinquencies XX,XXX in position as end measured an mark-to-market assessment. an result rate, stabilizing to at of levels. to using by our our is price substantial embedded XX% an X,XXX as quarter pre-pandemic delinquent estimated with first of in delinquencies. approach near reflecting approximately prudent claim The the and delinquencies or cures policies reserving house index-based equity more decreased XX% book a continue rate uncertainty. Total having associated new the The the decreased approximately equity quarter,

for play. frequency in help the future noted the mitigate can this past, loss delinquencies the claims potential to ultimately I've and of As that future progress

year-over-year. announced the fourth of and XX% to and Turning the reflecting the Genworth XX% quarter. XXXX, down ongoing reduction were with in expense to shared the sequentially XX% in improved down ratio in The of services XXXX, to million XXXX and $X separation first cost million, of or quarter or our expenses taken benefit expenses. the Operating for in XX% program actions renegotiated including our quarter $XX voluntary million executed agreement previously quarter X% the quarter compared fourth $X in

ongoing year-over-year the We full reflecting for to the $XXX year continue to X% total a costs million, decline despite inflationary expect environment.

and Moving capital to liquidity.

of We flexibility. financial continue from to operate position a strength and

coverage excess to reinsurance As Rohit our providing executed of The transaction XXXX covering this of secured reinsurance program. loss $XXX transaction of highly-rated of written throughout reinsurers a our as and transfer insurance risk a from up new million we coverage. credit quarter, referenced, part panel

market transaction proof point capital market. and sources, serves diversified loss this Since program reinsurance secured which through on the despite through traditional allowed of total XXXX, of credit capital attractive value the executed believe protection volatility in parts terms as us our we both its We the other in to $X.X have a another risk markets. of the coverage transfer inception of billion

end, our in coverage program. all XX% strong credit three Our billion provided remained rating and IPO, quarter credit billion have by by billion driven risk-in-force have of a risk efforts XXX% to $X.X credit at our transfer our XXXX. PMIERs program. covered PMIERs or in compared major and commitment and of the clear At Since our our above upgrades from risk of of fourth in our is balance $X.X transfer or ratings on pleased again capital that had sufficiency $X.X quarter loss I'm agencies. strong we been PMIERs XXX% here numerous sheet, quarter focus we requirements the to billion $X.X

[ us and A- ]. upgraded During EMICO the (sic) to Moody's S&P BBB+ upgraded to quarter, AX

our in rating Fitch debt Fitch's to an upgraded important Additionally, considered flexibility. upgrades, milestone Moody's now A-. With senior is grade, in our improving April, us investment financial and

capital Turning our quarter, balances per million to quarterly allocation. platform to consisting strengthen committed $XX balance of or million. during framework, shareholders. We of to shareholders We and totaling strong maintaining capital remain sheet to $XX the returned supporting prudently which first our $X.XX our a share and dividend now $XX share repurchases total our investing million to prioritization differentiate a and returning policyholders, and

and we have increase million XX% our confidence our As of per strong our proper for current $XX position $XX and reflects The our share authorization. X, repurchase $X.XX repurchased quarterly XX, our a our we commitment on stock XXXX, and believe business, of on April maintaining dividend the between million to shareholders. $XX May approval remaining share value in in million have creating strikes to Board's and balance flexible financial to

noted, well EMICO, in par The depend with it ultimately As form in business business commitment With at to performance flexibility completed to we a our market and flexibility. In returned first and delivered to on closing, shareholders market insurance are strong return Rohit the maintaining approvals. to conditions. XXXX. to Rohit. to to operating amount company I'll a $XXX on least financial across risk had capital to support remain $XXX turn back shareholders prudently driving start conditions, balance be efficiencies quarter be With a million and relative our sheet operational we final regulatory this expect return return our to currently and shareholders will financial million positioned capital adapt primary capital on a of strong In that, and April, mortgage to with we XXXX. We quarter behind XXXX. our we used managing and ability of will bolster our the to cost distribution that strong focused to us,

Thanks, Dean.

continue of are start can and you from operational a great operate a to position to financial see, XXXX As we off to strength. and

sheet we to shareholders. to balance to management value environment the our successfully of member their like Our now commitment in every us and focus Q&A. ready contributions. risk commitment operate create for Operator, current positions our thank prudent market I'd operational ongoing excellence are and and for team on for

Instructions] Our George with from first Bose comes KBW. [Operator question

everyone. Appreciate you on our Hey, is taking Alex to for This time the actually Bose. good answer questions. morning,

the and a bit, overall You touched in slightly on the little investment income ticked the yield looks it like quarter. down

Just wondering also and if investment the you of about could about drove think bit more the how what decline a year. we talk that over income should little remainder

lower for question. look are that sequentially, at did trajectory. the sequential there approximately have quarter. Alex, calls couple the a the things $X that million happened in quarter-over-quarter We Yes, thanks in that income bond When investment affect affect were They the quarter of you variation.

happens that not portfolio interest reinvested. from and We thing the have year. principal gets course. that throughout That's the portfolio, normal necessarily the other roll in uniform do kind a The of off

You can call that lumpy quarter-to-quarter.

So that that the environment. the an reinvested capacity the rate effectively powder in certainly gets has on or effect higher dry

the cash to of a in last modestly April invested invested at closer a X.X% of this a in I other cash we thing that gets versus I the little X%, assets we roughly just new to, advance talked lower did rate, X% referenced money under incremental our rate -- build for that The that the distribution accumulation remarks, environment. prepared in bit

It's forward. rate Like I'd to that going those trajectory I are of investing interest the I think close contributing going take But think environment. that maybe forward, would now, items I say, impact to I drove downward upward what's relative advantage maybe of trajectory the think that to the we're sequential. said, modestly, we're and X% investment I an think, on new have income pressure to expectations. monies those continue million things more $X.X going are elevated some on things the flattish. up So to

premium you makes touched And for a little said bit the than then the it remainder should of a 'XX. 'XX. sorry, yield down little trajectory also, of the Okay. more I be bit know Great. less That -- sense. on than you

that of of slightly should color you if have any that the will -- more jump wondering cadence around of Just year? over sort quarter-to-quarter be if or on the if kind the it guys of remainder

A things Alex. of Yes. couple there,

off I fact. want the that the have in start with premium lose on highest think I'd we of don't the sight industry. focus base but change, rate I quarter-over-quarter certainly -- understand I to

I along fluctuates about of pricing we've think much rate credit quarter-to-quarter. result fluctuate past, persistency, premium those different a NIW of as bunch talked base a mix, can But that's in important. lines. It like the things drivers, levels,

referenced, expectation. news basis is did Coming to and decline in that's year, from that in volatility premium like quarterly against X.X that. much going the you XXXX feel level base than line premium with The point relates to expectation. expect rates We still into that the basis that is do point we as that inside some results in base we they the deliver there's it can that did decline confident X.X be occurring. XXXX to Quarter-to-quarter, less rates expect to good and

-- variance. out guidance of full not we're basis staying it's and is the really with giving there's you year quarter-to-quarter on I think comfortable a -- what So

comes from question Shane next Rick Our JPM. with

in equally of we the spoke about you the of operational about get lifting you But referenced or talk general, ratings conditions the from implications Freddie. You little lifting? the the talk both? specifically upgrades ratings importantly, conditions of I bit Fannie and upgrades. think financial the financial Can a and implications the Fannie-Freddie and can

hand So and just start then I off it to would Dean.

very of had think in what I we year-to-date, my assuming all the about are have commercial relationships means. X X the journey during then ratings said operational IPO. from we I X and that received remarks, prepared upgrades kind post in I'm an have as quarter you're And of talking April our perspective, supportive and the

we each and the Mae of to customers restrictions. the our rating proposition Fannie market, our essentially that competitive Mac value very these support it and comes counter take with and to strength same to our upgrades conditions strong party true for when the and we the and proposition a GSE value is perception Freddie thing and in customers have So competitive of

these in those lifting a PMIERs portfolio multiplier have is can but from we a that much of past, normal our milestone a generally a effect As conditions impact. not bigger we for as but perspective, environment, us in spoken problematic, conditions redundant a levels delinquent on the definitely restrictions saw to strong these are downturn, in capital because actually have a

both we financial hand So off are Dean really to about it talk happy I'll milestones. achieve to to implications. the

Yes.

the implications, sufficiency. bit this capital the So restrictions, in financial to considered largely level the we redundant what would past. Rick, PMIERs talked prudent to a and be GSE They're of little conditions have we a about

What not XXX% really potential and as create the doesn't on our set. in some kind times delinquencies been is conditions to were where of financial they -- stress, as us it it standard. does under of pressure, additional it PMIERs. higher Rohit standard would we're So held change give view the have flexibility, especially a referenced the

it's or especially incremental flexibility, we the financial -- we're So think downside. additional to

say flexibility. have think a an being immediate investment-grade different similar issuer, would form impacts don't a a we grade. revolver, a both as do impacts commitment of reduction fees, result are on just those of our the immediate I reduced but If it I rating do and but -- term, we and any commitment financial against on that side, revolver, borrowings get now thing to pay in about the tipping the fees debt has we investment into future the kind like our for

restrictions issuances and sales certain debt $XXX of on realized payments. suspension restricted And we indenture, at the time, same additional asset things million in like the restrictions, and our

So gives And access it you market with terms. potentially basis, operational to think just ratings an a investment-grade additional prospective about flexibility, impact issuer as financial us on flexibility. a broader pricing gives us it in the some better then as

rating continuum. notch pleased we it's that single in the realize for So time. the this us. in It's We're most notch agency milestone and important big at think happy probably point to a

Bhatia will it of Bank Mihir question, Next America. come of from

the question about want premium wanted picture, go just rates. rate to first give to It understand I guidance. don't I the premium The quarterly maybe about bigger just you question environment. had, back guess But actually thinking I more sounds like to what financials? mean do base the all constructive. it premium rate start pick like way when we that the the I you continues When is quite start do by seeing to be up? through seeing that actually flow And I

Is the the see current you current can size trends, continue stable? you're cetera. portfolio et Is are premium this we business -- like acquiring, with year of just trends us the running got that higher last declines? help if the off year as you're Like last rates this not the that's new versus a

to rates trying of premium where Just understand kind rates -- out? base premium kind of settle

Yes, is Rohit. Mihir. This

I by just off And talking question. your pricing. would about for you thank start So

well across remarks, in very the We prepared price as saw of We also new environment specific as times that in the geographies in the our insurance risk during written the market during we my up and across go the is terms several pricing quarter. tranches. in mentioned pricing constructive. portfolio I believe both entire increased our As industry quarter,

yield, we from continue written, on find I to So and think for attractive delivering portfolio and new shareholders. value in insurance that's still creating that coming returns are believe constructive we

map, I have environment the seen to interest of volatility starts coming around, as we timing where this think when rate existing the staff to well call. in turning for that in as rates, trend and portfolio then mix and I think it's flattening a tough interest in on terms yield of insurance

borrowers while are are So are so we we refinancing, I volatile have I staying, think which closer are and get guidance. watching that would to an impact we point, trend on that better interest say very our carefully rates provide that But prior portfolio. borrowers books can in can which as from

that existing rate to terms better the think as to think seeing I directly points especially is a proof premium answer I of get actual good But and high the closer we holding indicator point. at leading timing. more as we'll that I levels, performance, on doesn't book fact compression question provide written the with still to scale of getting we decline in are think I we your in point. know see and guidance being new up insurance persistency that that

I now, quarters No, wait minute, what that and like X a call like, be It's something happened. hey, out Okay. we'll understand. then from to difficult

So understand. I

wondering, Yes, In you from a your rates some portfolio money how was much persistency guess, basically, about more interest persistency upside and with perspective. be is out I like, little in there you rate high, out, Or of is terms a thinking is I right call think this of the of about it, to persist. called statistics short refinance I quarter-over-quarter. bit persistency, gave we the stable, was And should the right, term?

Yes, Good question. Mihir.

that is obviously we've couple take -- think question the I different of a environment. is I But ways. the the persistency current interest persistency in X given different it rate our elevated. to continues is on times headline gotten would say, remain Elevated down point.

points granular round. XX% If really in to bit under and hood just is closer It's the XX do XX% a rounded more probably reduction and that you quarter-over-quarter. a look to basis the from little assessment, down

used very of is how a only persistency can We've time persistency go. a experience. We've experience as above give out, level of past it to the XX% about really think in -- hard short where as and think our predict. where to and in never it periods historical it I can trying go can we experienced market sense our high to

as we counterbalance growth. interest of our as But growth to go. general allowing as remain long and an stable this rate where elevated originations to ongoing I is environment as persistency view serve and really persistency can think drive market, of indication to would in kind a remains that smaller expect that us portfolio well range as the So premium

Got the it. of in there like talked we? just pre-pandemic it But And claims I last my side, claim still. to back levels. level normalized might be on delinquencies we then are time far question a how terms to think you payments. -- getting looks some Are about payment

bit? can you about little talk a that So just

claim into when that a development. Yes, trying dialogue those of delinquency to have What's happened we servicers assessment couple period continue quarters. or far we development emerge so out continue time to during discussions, get turns push an with of to in

So I the say, quarters I making. couple X was quarters a probably still of ago said quarters it's it that would X now in out.

servicer or and of comfortable. efforts those they still on comfortable there's exhausting maintain delinquencies, borrowers type Well, done that for all, to deem be cure key resolve side of first and all through get homes some can't to effectively foreclosure process the get they modification. So to starting the to work then

Cyganovich Our from next Citi. question with comes Arren

of level for that? like tough the earnings written And outlook know through your new amongst what far production the potential highest what's for be your it Any Thus driving of to a could have insurance basis? cycle, the peers. I on looks quarter-by-quarter ideas you say year? it's

Yes.

billion the it's are just past, in strategy of that strategy happy have reminder, but we our written a Profile lot. we just saying So is by outcome of this like that we not here. as execution perspective, wrote market successful I of we first share with $XX that said in from off of start an pricing for the would us, insurance a a and billion $XX And new quarter. the mix

would aspects price and quality risk right thing, say, of insurance I the in this to And and for right managing it: risk environment new the that's pricing factors. So as a be reminder, kind referring of is aspect second written. on of stacked continues to our focus first two

and said we environment, as those executed during increases economic use housing. and monitor remarks, And on both So in as in if this well board across prepared the we quarter. about of as leading several credit-specific we pricing pricing continue increases the you and environment, think implement both to I geographic the to current indicators that my

comes market quarter-to-quarter. last share the say, just at if X evident when It's it been over the about share, I said as but So XX I quarter, to market case. look industry fluctuates would share you across the has the quarters, to that industry last just think very

variations. quarter-to-quarter the So we focused not on are

share to see is at our look because one participation in very has comparable trailing prior say, stable yet We kind we our is I focused would And company around XX not still the that XX% to final of being on long-term months, as market. the if which periods. although at report, you market are

business period the over we and mix right more executing a that So market are think perspective I strategy, will on of our participation time. stabilize getting then focused a from

your So that question was on the answer to share.

year You full on outlook. about perspective also asked

because to operating I business we our saying by is purchase are just mortgage on in when think tied environment I would that comes it market. start impact the of of participation off the in a consumers' majority dynamic purchase rates to mortgage market and rates

to interest think as consumers coming still year XXXX that year rate year lower be purchase this had year, we originations on about under part actually in first XXXX, loss least in of where a rates So we think was XXXX from XXXX. because the will compared lower market at the still the

So neighborhood that is market size, an to around believe our side Obviously, meet somewhere while at where MI would Mae we trillion. the purchase doesn't originations MI our $X.X forecast being of $XXX Fannie market market prescriptive the in a perspective of closer refi on lot is billion very maybe still scale. us which is, and being not size give

be possibility So mortgage rates, later be a And mortgage part of the year, between comes think would scale you from treasury down upside about market range that's the XXXX, while spread think from that then a of the kind XX-year rate if may perspective. if in we good the market that it. to of then XX-year some have down and down would coming

as risk production going through moving home the then worse be to for prices the or there the severity do relative vintage, we of to severities what view kind lower, were your how is production? past this I think years? new about And And guess, you

Yes.

as prices as base business in said continue case to cannot question my we the testing multiple are I So when we to on writing well case sure in think scenarios. home scenario, the that making we're sustain stress it against comes that only in as answer but it previous also a environment, performance its pricing, unemployment, I to this focus

So from comes once a claim, a we losses severity perspective, the in first thing point. we focus then at on because is that have actually frequency

we very to by our sure point, of and focused stress out case, once we in prices a severity be reducing impact price account get business So severity we in when we into we impact applying we to the of and on on factor taking make that and declining perspective right product. the our what models, right pricing are that the on figure market absolutely, point home do would loss from and your of to factors. And stack both base risk the and mindset taking are then in credit our ratios,

on consideration. of think that give not of any I So factored of that, you you prices thumb on sure part that's impact I'm kind our severity. can can is in. if But I definitely assure home of I easy rule

Our next question Dowling with Geoffrey comes Partners. Dunn & from

specifically. on want follow to actually I up last the question more

color X% discuss it evolved You quarter some more year? last on And home reserving way? last assumption is in could in down formally rate severity XX% can practices? price your X%, how down maybe XX%? considerations bracket in it any Just thinking Or claim your claim about to rate you're your over to assumption it up you X% your your both shifted to but you and how the has

question. Geoff, for Yes, the thanks

on as for but And I future XX%. our absolutely apply we deterioration you're not claim of that we've relates bears measured adjusted kind we right. it of possibility X% to heightened because repeating think wanted our seen any from the made the delinquencies it economic performance, comment but given did uncertainty. So to accident deterioration simply, year XXXX previously, philosophy We that rate to we reserving, in this

performance. time. to don't if continue this We we and continue point, that, we'll the could in those we factors deterioration will and economic And measure through the take we into present see that, assess time. that reserves economics haven't loss measure seen, that continue through to at to Obviously, and/or our deterioration of terms

it's But per delinquencies. of severity a it context, view I on think to He favorable reserve what presale more relates think, in Rohit very into did small and average an small was home home had less home maybe about view given severity It's for kind than an it our reduction view our and new. pricing to impact a the of adjustment we prices, I on use a talking home our input prices future talking on would assumption otherwise expectation assumptions or adjustment, price as of quarter existing in indicative, we also was prior $XXX be what but prices. That as updated the our about. our severity savings. our make this was

answer. add Dean's to just to And

and think this markets have vulnerable while from market. perspective, keeping continue an which other different on more are balance markets on be I see housing in do I macro markets, eye we views might a to than we think

February. inflation side, But seen because So strong. very consumers about and are we market on is concerned the one X.X the labor market, hand, high, mortgage go in is rates have recession. end down demand there other strong, on a which broader are we close still operating And of wages on XX-year tight at are a of below still inventory average and months are top it, the possible to is

a views actual to definitely impact, but difficult things -- that So we evolve. of are terms it's as number close staying continue in to I developing think bracket to and

forecast the rate Fannie why question, asked extremely at sounds is the prices of market right? of the down still kind bit think this rate I And -- actually there's bit I has to a tight. national upside. a like time are reacting year. prices little that's points it Because every a Well, drop, only The

in of is you're right word, So or of uncertainty. don't if companies or gives down idea I baking XX% of ahead -- national us if conservatism are know basis, assuming the caution X% the a it caution level but better a on down

are that's completely and in actual market view. Yes. Geoff, coming we think I have data are amount last this as kind actually seeing you referenced agree with well when they the we forecast that right expected that as Fannie I start seeing price to forecast, the Mae the you perspective, you But reduced from of of forecast what in has what decline out forecast. the home with think

we think time, of I in a then I in doing in level them. different at same are at said the XX% And XX% we in facts. One, So MSA line of mark-to-market balancing my market. I seeing our of X the what with delinquencies think remarks, are of as front kind that's an kind equity

geography-specific facing we On in be areas different. could conditions certain be inventory declines might the where other hand, high or be might

approach of the we several a that's results, times in uncertainty to want the So on we And comes mindful market. reserves. prudent -- where are we just said it I to when our it think just be I taking think that

on environment. performance based We a and at looking just mindset not point, deterioration, this to it's of any Dean's in are more

question comes Eric next BTIG. Hagen with from Our

good of here. lot A stuff covered

to on something outlook with about modifications I loan respect talking one there. and follow-up you were the think there's

you're maybe of your to much the liquidation? around able and offer in potentially interest time that drive your on or how effectiveness does a loan perspective credit effectiveness thinking what services and borrowers the environment? modifications Just lack and loan reserving what's line Like to higher rate to a thereof

start let's level. Dean. start I Yes. would Eric, hand macro we it I'll say, to the and have off I'll then confidence, at

we time come I or more that of recession, including out dislocation, kind as recession with we and industry, an every through as that think resilience learning. industry of a of every out finance we come more mortgage go COVID,

very I I'll been good the with participants. with a with servicers, mortgage we that the and insurance forbearance had have start for think point experience industry effectiveness the COVID starts that GSEs, that of all has in and off companies So forbearance lesson definitely

that that as used think was delinquencies percentage we seen forbearance X% to our about tool QX a COVID, in in during actually I went than than it's our new of just that not less 'XX. the than delinquencies of higher be prior so in have So down and you at fact certain XX% XX% utilized less a terms And heavily now delinquencies, to total modification. saw obviously to of number COVID, points

forbearance more tool an is terms, ago. consumer-friendly So to we that have have modification years which I is have the created programs, new think tools much when X of did more perspective we our fact belt example our comes in than now it GSEs

go the good delinquent, then that and that for would which Dean to what point system, ask add which consumers tools under good just then I And condition. with it think on I from start consumers. that off color. I'll is on, But for generally depends say, are available

Yes.

So point. that I'll maybe just with proof the supplement

So successfully XXX,XXX ever-to-date basis, have and Eric, cured. of those about forbearances an about on we've had XX%

other it the canceled includes sold borrower payment type payments where that any and/or time. and deferred like completion forbearance cure successful either the modifications, of that on to made good property solution some missed includes point in Has or of, your up either -- the modification. the So been there to point,

would So I talking was very think Rohit that that's really any program description about. the very also has the have we evidence other commentary, just I forbearance quantitative basis. Do been on questions? much to the an align qualitative ever-to-date successful with his

We do not.

So for our this closing remarks. would concludes back Rohit to Q&A it over portion. I turn like to now

in in you you, you week. of forward interest all. to you. Thank Enact, and I many Thank York thank seeing We at conference look next your the and New appreciate BTIG Stacy,

in the Thank conclude conference. program. This participation you does for your today's

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