Enact (ACT) 1 Aug 242024 Q2 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Enact Q2 2024 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to turn the conference over to Mr. Daniel Kohl, Vice President of Investor Relations. ahead. go Please

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

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

issued your along the questions. metrics. closed The set We after will website. we results quarter, market available Investor contain materials the of then our of with financial our on take section These are operational yesterday, earnings comprehensive Relations financial for and a

statements. and are estimates, These current assumptions, Today's as projections on statements include is call recorded forward-looking and based expectations being today's will date. of of the use

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

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

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

everyone. Daniel. Good you, morning, Thank

priorities and value We an of concluded for our growth, maximizing results efficiency half quarter creating XXXX. second profitable remain our focused on driving first of shareholders. Our excellent

performance. these translated across execution each financial disciplined Our strong into of

a X% and sequentially the XX% was year-over-year. Adjusted quarter, up billion, return up In-Force record year-over-year. was and XX% $XXX operating up sequentially on we $X.XX, equity XX% was of a solid and $XXX adjusted During EPS income million, Insurance adjusted reported X%

mentioned is we that last overall. to quarter, household strong navigate U.S. complex remain continue up economy through with holding and we a a The sheets market As well balance healthy operating environment. labor

While interest of rates there and rates remain of higher are a risks, positive conflicts housing mortgage potential are as supportive levels. borrowers for pre-pandemic number credit. macro factors and trends consistent prime such inflation, geopolitical Delinquency with

Our manufacturing retain and to portfolio high quality to continues be strong, embedded equity. continues our

first term, reached payment with demand remain people down longer the intact a XX% age less the Over as the drivers resources of growing number home. than purchasing their typical also for of

insurance be again on the continues environment both of of The continue will weighted growth. Overall, drive persistent the to Insurance quality portfolio risk continue be lenders insured the origination help to benefit X.X%. fee, The average In-Force FICO alike. At and was average our ratio volumes resource a quarter end, offset confident was we and was layered score that mortgage to XXX. a risk XX% higher risk effect loan-to-value of rates crucial are buyers weighted credit strong. which and to Higher rate portfolio

quarter, the we commitment in standards. maintained constructive Pricing and our prudent remained underwriting to

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

to for loss we our reserves. to new this on will on from existing our rate scenarios. million current Based have reduced remain XX% prudent the market on mitigation $XX driven of effective performance efforts. continued favorable and reserves claim released we quarter, and of expectations, X% to our strong with and reserved range our believe more This well quarter. shortly. measured and change Dean during say is a aligned We cure performance loss by delinquencies we credit the During approach

continue billion risk end, $X.X to approximately quarter XXX% sufficiency our We a sufficiency XX% or and PMIERs operate transfers. financial from was At subject In-Force of of credit was flexibility. position and of strength to our Risk

to quarter credit We with during capital execute strategy excess of reducing further enhancing loss our and transaction additional the risk against efficiency. an CRT our our continue

the the strengthening expense. $XXX refinance over million a investment-grade in we This debt million decade. debt in the first maturities allowing our and industry was largest During saving us annual near-term quarter, issuance financial a senior issuance company issued as by interest $X public position further notes, our to in and investment-grade in

allocation existing The strength in capital continue opportunities of flows growing executing new capital supporting priorities, attractive capital current our position against are excess shareholders. to investing business our and and policyholders, has our to us which returning allowed cash business,

priority, allocation to continue our capital shareholders. capital return last our On we to

During we $XX shares. quarter, repurchased million the of

As announced $XXX million XX, million June we completed our remaining have our repurchase recently $XXX of share and in have $XXX million program authorization.

total We $XX be capital return performance XXXX, million also to now our our to $XXX quarterly and million between balance via reflecting continued distributed strong We million $XXX and expect in dividend. shareholders sheet. our

extend Finally, platform adjacencies core into profile, leverage we credit pursue and to our opportunities that platform our strategic into platform the GSE competencies. risk year Re, A transfer enhance our launched have we return our continued successfully expanding to ago, compelling market. Enact our differentiate

to GSE market. in continued we transactions the that to quarter, the came During CRT participate

strong is underwriting Since Re Enact a long-term Enact a remains maintaining to return funded and growth growth well, expense sufficiently profile. capital attractive and efficient inception, foreseeable has the for its and opportunity. future support Re performed its

to acknowledgment Enact recognized the best by maintaining team. of We are of to where environment testament pleased was best. collaboration take culture. on committed Finally, that are moment as I'm At our to touch one like Enact, to teams at the the strength and appreciate create that work their the to work our announce our I Triangle workplace to Journal. places we engaging strive of encourages the would culture an in Business leadership during quarter, a our and to a this a

performance are first of our we pleased XXXX. excellent Overall, with half in the

strategic focused are our shareholders. committed against we priorities all maximizing our ahead, to and are executing on for value of Looking

I call over will that, Dean. With turn now to the

strong set quarter quarter period share in in income compared diluted $XXX everyone. in the of per XXXX. share diluted Thanks, year same the and delivered quarter to was second Rohit. second $X.XX net results Good first morning, per per XXXX. $X.XX share million the for of last or GAAP another the diluted We $X.XX of

in XXXX. operating diluted was return year period compared $X.XX equity $XXX share on share and same on diluted Return of first last $X.XX equity was the or in was per XX%. Adjusted operating $X.XX million Adjusted income to share quarter per diluted per the XX%.

net I'll income. differences of adjusted between drivers operating I performance, income As and highlight explained the the quarter's this

up billion drivers. a increased revenue or new to Insurance year-over-year. of up billion second X% $X Turning $XXX the Primary in In-Force quarter $X record sequentially and to billion,

points insurance quarter, in $X up percentage written we down historical $XX spring persistency X X and the year-over-year. aligned was the transition and year-over-year. billion in percentage down sequentially was to selling is XX% New or as decline The point seasonality second $X down billion, billion Persistency sequentially with XX% sequential season.

level elevated, row in Given of a rates, quarter XX%. at this the above persistency marks ninth and current the of persistency or remains mortgage

were up persistency the portfolio $XXX Only points Net least help rates prevailing rate environment. elevated offset will had basis production million at anticipate continue X% in $X that the premiums the million of growth earned market million, sequential increases to current lower above were in or our Enact rate. year-over-year. premiums We mortgages higher XX or CRT year-over-year driven These In-Force up our GSE participation. primarily growth, by ceded and X% sequentially X% The the increases $X attractive adjacencies, and by higher were Re's partially premiums. consisting net Insurance in and in of offset

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

to our fluctuate from and is rate premium by As a several reminder, quarter-to-quarter. factors base impacted modestly tends

was premium higher sequentially in partially points rate earned XX.X rate. offset as X.X the points, net up base basis ceded premiums increase Our basis

up was $X portfolio million in up over, have income improvement. sequentially Higher or our increased anticipate portfolio XX% million as investment and the or yields. we second further $X And Investment rates rolls X% yield quarter interest million, year-over-year. our $XX

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

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

will As we opportunities. we hold selectively maturity, income stated, while investments we to pursue previously enhancement typically

of we excluded higher from future resulting is income, million income. operating During in adjusted executed which losses our exchange a investment strategy for the in $X quarter, pretax

continue will investment our and that evaluate pursue unrealized position view portfolio's as our change we not similar materially to While does noneconomic. opportunities is appropriate, loss this

and but expectations X%. We favorable our rate of cure cure a $XX a quarter expectations. $XX negative respectively new ratio $XX claim in respectively in not decrease only of Turning were negative of X% current the the sustained to performance first the a $X quarter $XX credit. existing compared reserve respectively. second result lowering X% quarter in of to of losses $XX primarily our and reserve rate XXXX release by release driven million XXXX. quarter sequential and million of reflecting the loss and release XXXX XXXX delinquencies Losses our to $XX year-over-year million of delinquencies favorable XX% negative also loss compares in reserve lowered as performance the the million, claim X% and second million, in to from The second The market and first million quarter was and or million of and negative on and XXXX ratio of were the

in line decreased delinquencies expectations. from New XX,XXX XX,XXX sequentially to with seasonal

compared to XX,XXX. pre-pandemic with rate second with XX,XXX X.X% levels quarter decreased delinquency and pre-pandemic the X% and to delinquency sequentially X.X% for sequentially second points basis in the quarter new sequentially delinquencies decreased The to Our primary XXXX. line levels. rate was consistent X X% of quarter remained in the Total in from

quarter expenses $XX Turning Operating the quarter of respectively first million to to in ratio the quarter second the XXXX XX% expense in $XX XX% XXXX and second of respectively XX% and expenses. million and was compared and were in million XXXX. of $XX the

quarter and range a charge excluding X We be on million these that for our from in in for percentage our $XXX approximately ratio voluntary income operating still quarter. point million the represents expenses is and of million that the also $XXX separation initiated to the efficiency second restructuring $X charges resulted remain adjusted We to expect of the excluded during a impact program focused XXXX. expense operating restructuring in

Moving to capital.

by to successful We diversified continue liquidity and of our robust position, PMIER from continued strong and reinforced CRT program. sufficiency operate execution a our capital

to coverage of $X.X XX, June our of XXXX, reinsurance capital $XX third-party reduce During capital excess efficiency we as program credit billion million credit. additional the of of CRT and enhance secured our PMIERs and risk loss provides quarter,

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

high cleanup During of our the on X also CRT XXXX elected covering have these the transactions book. exercised and to loans books coverage approximately the because XXXX calls in loss. embedded We PMIERs which XXXX and X loss part reduced In-Force. quarter, XX% equity, credit through of nominal Risk These cleanup calls the the and exercise for we probability provided transactions they associated account

million in XXXX $X annual of result the adjusted We in sheet quarter, a our end of million in second prior from million XX% consisting our in notes, excluded was risk these of credit to debt extinguishment As which approximately XX% used extends the refinance transaction $XX to income. the resulted through the The redemption expense million commutations, of our balance costs $X our our subject million In-Force both $X which Risk from debt debt transfer, of further of costs $XXX maturities the proceeds approximately operating at are in which interest savings. at the the quarter offering. is our debt down strengthened issuance during of and costs result end will quarter. quarter, accelerated and in We

capital to allocation. Turning

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

or of we dividend the third payable During reflecting share quarterly $X.XXX common the announced. $X.XXX paid our as $XX previously XX% we a Today, share per increase common through September quarter, X. announced million dividend, per quarter

X.X X.X of $XX for we in for total and a price July, of share million additional we've repurchased. to shares continue million average $XX.XX a our $XX an In share $XX.XX at participation of average share Additionally, quarter. repurchased the on weighted shares weighted million buyback focus accelerating of at total price repurchased million a a

July XX, quarter, the of we was authorization. as there completed $XXX During million remaining approximately $XXX million repurchase repurchase million our share our XXXX, $XXX on authorization. And

$XXX us shareholders. allows to I investing million to capital our now balance in approximately business of dividend strength capital XXXX. with just the our The we common returning And in detailed, expect as position through return to

our $XXX consistent share XXXX million we $XXX $XXX reflecting Collectively, and result through sheet. $XXX between to Additionally, return expect million, performance million between and million in buyback our return program. balance capital an and these expected strong

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

performance the are of driving remain back in with maintaining incredibly our We on our first and sheet half risk, we the pleased I'll of we Rohit. shareholders. With believe second and and for well we'll Overall, half prudently year solid managing the to beyond, positioned balance for a turn returns focused that, are call XXXX. strong the

Dean. Thanks,

on beyond, be XXXX half encouraged and performance our the market. continue of our second of I reflect As long-term to look and by I the dynamics to

Our people environment. product continues responsibly dream in to complex of help the achieve a homeownership

to of ready stakeholders. dedication drives underpins principle Q&A. value for deliver aspects we exceptional our now for efforts business of are all all our Our and to this our Operator,

[Operator Instructions]

Your first Soham comes of BTIG. from from the question line Bhonsle

reported was versus this that it like looked of It peers NIW. on one first your lower quarter. some the Just

or just note was there? stepped anything discernible from you that away if I factors errors any maybe So to there's or wondering

Thank question. the you for

there from X in being happens pricing so we market tight of is of see share. peers we we one don't And terms nothing X to this in a obviously, are are the the constructive range. a tell was peer tough we in the some have pricing the of that no, have where But saw who a actually reported that market. still volatility reported We So the handle in There quarter. different market the way $XX who X perspective, peers market NIW. on quarter-to-quarter. billion has level have think out

kind close. pretty were people most of like seems it So

more not I then participation share market to the months the at participation, past, market think in we talked but tight have volatility it's about pretty is look participation, XX you goal, way about almost if that think And have some see a we range. think the generally a our an trailing quarters, But and I outcome market last of is at for you market share X of us. you in in look

guidelines, participation our market. We with the the that. with like the wrote comfortable are pricing we're we approximately that that, the of are happy in we So billion $XX in on we and the NIW getting really quarter

sort in does did rate, then Texas, and Florida, seems still the lower good. Okay. is in these take Consumer very obviously of we're look a Great. on slowing it the place. like edges if And the consumer credit seem good on claim is some of I large the you But that's of that at but are inventory building it just some potentially seeing, right, markets, down. the the risks guess you

going you're So risks do wondering looking sustainable forward? claim how you how lower assessing at the can be? And or think rate of this those sort

for question Yes, as Thanks Soham. well. that

we I rate. discussed, for the of couple reassessment were catalysts there a think of claim potential previously

claim over elevated for second, rate. economic uncertainty gave seen the sustained economic to of relates we've if would consideration time. to Those we more reassessment And and potential reduction then performance a the delinquency and First catalyst in the the performance uncertainty. both that cure

really and the those from we change X%. relied quarter, This making on XX% to of both

can secondarily, of or some we ongoing range their then of that narrowed much doesn't very the those And We on the uncertainty, this change of reduced. with gave view recent that and piece weight our claim I take performance away. And about you has it's to That that one believe line the environment. we gone parts, this quarter. think and that but kind in completely mean consensus the for think more macroeconomic uncertainty reflects catalysts quarter. our is economic the still consideration in delinquency weight rate X% presence If certainly is certainly

rate, lowered cohorts. the So both recent the on most result we delinquency the claim is

first of also that and rate through claim XXXX about 'XX quarter we delinquencies. forward, think second half new on the reevaluate the go from that. to about us If think what cause So the would

economic think gave uncertainty performance. I and/or more weight if it's to a catalyst similar ongoing we changed

again, continue believe through one claim approach reserving cause to and come measured time. think rate of a that to back going apply we either time. is I to could And evaluate prudent what those to loss and us through we're

as I Soham, we buildup Second softening, inventory it. eye definitely of are well keeping think an in as consumer on question, terms

I volatility. seen think have we some

about second eventually, early more but which we we the saw half you of in the driven fundamental are macro If trends, XXXX, market, factors. XXXX, to trends came think volatility by back some believe several

the is inventory around side, in are homes short housing the buy. X is On at in We to market there less want the think than compared the to in number interested there market who somewhere people are million who actually buying people homes. that least

of A has X seeing closer are month what risen below we markets. the to X average. markets the the in in months, kind in still market to closer smaller inventory it's the While of like is June is And rising it's months. and recently is balanced inventory Florida, long-term

the markets, XX% markets than you XX% low stable a some have sales -- if look there's and then been So smaller the very happen, of at and inventory actually in than more kind of rise. where of sales sales where still happen more

keeping keeping So and an to we think Dean's we are unemployment, eye on on how point, credit going housing the about But we think eye kind big balance. in of I eye factor also an market back an which on then keeping is are it. a

I if in. Rohit, could I one squeeze just Okay. guess, Great.

free a great. how you Anything a ending they're be would and but more going of just I a there sort sort in new or be current guess of approach? of think as about right? I year, that's whether get half of I viewing minute could talk the ramifications, market potentially, potential know And investors the conservatorship spend administration sort we into the about we viewed of could how MI administration, sort thinking of are think it back in if context to the just of

Yes.

say on is positioned question, would MI of aisle. the So Soham. I kind well both very good sides of

of I in We the XX, been over consumers the perspective, of last path think product from one get the consumers buildup that achieve accumulation wealth. path helps actually actually has a through consumer get which, dream the years, -- driving homeownership, a the help on biggest are XX we of homeownership. wealth of of factors

So about you administration, our priorities mission, a very purpose aligned. from Democratic perspective, are think our if I our think

of are a you environment. of affordability we number homes first-time low in homebuyers, If putting think in

homebuyers. were I of think in quarter, our most recent percent XX-plus the first-time consumers

purpose tied of and GSEs priorities. very and are and their in aligned FHFA mission the we the So to with terms very

about also I from capital think taxpayer perspective, private Republican administration, think you product a of a If ahead we are putting risk.

So getting with whether it are position which comes putting taxpayer of there. of you the in serving think capital of us accomplishes the private has And FHA in I about GSEs, us program front competing we well of terms purpose capital a to GSEs past. front ahead in good as of then in obviously, private think putting loss capital, first that purpose served in FHA,

whatever, conservatorship. As that's far since is topic obviously, been GSEs years GSE of concerned, went reform as a XX into discussion for

of because call have in to things to the line reform play. difficult this lot for a odds of of just the that at up point number are given the So considerations time to of happen

from from line is JPMorgan. the Shane question Next Rick of

understanding that volume, over lower lower a high been X is persistency most X one favorable than Look, a years last appreciation the persistency interesting environment. environment the actually of or high the evolutions volume, or more potentially the has

underlying mortgages barbelled and pickup thinking in low are in mortgages curious are way in and higher cohorts this? seen of a rates industry at cohort shift are rate that refinanceable? before huge volumes, at this potentially growing about very see guys probably because mortgage with Especially a rate that so point, how never we portfolios we've you a could in the As I'm

And portfolio question. are you would thank from we your a the some positioned incented perspective of of to environment a our are then well for and disclosed more X this portfolio, from start composition our consumers given Rick, say, refinance book rates very mortgage the importantly, our earnings details of of Slide define think the actually who mortgage below -- perspective. refinance we X% presentation, rate X%. even that if actually rate a from Yes, I in on or was can I have see policies is falling, XX% only our in you how of money

points. From portion that to their there will actually doesn't incentive, an actually assessment, rates gets homes their simply rates is fall perspective incentive perspective actually, to existing events MI for mortgage for an were for and terms of of getting sidelines from our incentive market are affordability life have homes. of who to So are come book in into as economic start a in by, upgrade we'll to the closer lot say, higher our rates downsize coming origination scenario we if XXX XXX let's or refinance I actually people population and Obviously, go are market first-time where a think basis down mortgage potential industry mortgage because But have ideal business, our good homebuyers. even to refinanced consumers start to in much better, X.X% refinance. a

homebuyers, the said at is somewhere to very That a homes. product XX% homebuyers ratio as first-time product high sits to within closer of our And into use first-time all get earlier, usage of level. I our

a more they rate their So low you at time, are mortgage growing because that from same not have refinancing enough force our has have in actually consumers rate market, perspective. the stickiness out insurance of but a a

and you off portions move borrowers of faster a it. see mortgages? the scenario -- little Got riskier actually And where your those affordable a that into more of less bit portfolio affordable more some could even boils of sort

Absolutely. That is always possible, Rick.

or amortization, think see incentive. that having the refinance there's look a higher actually risk through have about I we have refinance, would the are mortgage have to benefits Whether where and business of incentive an higher on they obviously, baked rates, into as we a of expectations rate is a appreciation in run one you say consumers who of or in and at that's which home them build based higher equity can XX-plus it's for LTVs, their consumer our data propensity been you have price higher lot cohorts homes. years we if attributes, actually when having all scenarios we business. can including actually those model So

Your is Bose line KBW. from next question the from George of

is the to guidance was the discuss return Bose. being Maybe just you Alex, just better driven guide. if of actually expectations updated drivers maybe versus This relating higher on specifically and slower if to maybe the I return this capital growth for maybe wondering start could is expectations? by

me for Alex. really drivers. the Yes, Thanks to but let latter, I it's go question. the think the don't

it's where It as from -- think the I $XXX a million. discrete it also the the million are starts for lot we of performance. of number relates the with said range considerations business considerations $XXX we why in to a perform to we'll increased range to

I been setting is of performance think as We throughout business have at consideration year. payout that strong. the return capital modifying the the business a performance the ratio, then target think and we key but a prescribed don't year both has about very certainly beginning

environment led consideration. key then our return another improvement talked about is capital the to for lastly, the year. our perspective quarter. the what rate into the reduction that environment claim decisions to modest some this the That remainder of of economic over carries from economic the to I on think I regulatory. do And about in

type opportunistic And to of things do being have a increasing our establish conducive. them. The objectives and mentioned so approach. talked the we that number conditions we I form for share plug a the range. The we put the then is way capital certainty we into a if environment a about to on then versus to waterfall we lot share I by of a forms. dividend And We going conditions, are think -- several the preference X is of we last return kind regulatory market all other on based and fact factors. from tool form conducive that buybacks, buybacks special we market lot -- have can't quarter, based -- to dictated in sort the that think of our dividends quarterly is a of be discrete

Yes. to performance one aspect agree Alex, add just of Dean, just growth. with completely versus to market business

we market need market a we more have the MI actually the believe size Given guidance trending at this market very year assess the year. information of where for with the had in bit we the NIW obviously at numbers, MI and But much delivered point size. to provided is size line is in little beginning

I it's in the think I market trending with expectations. line much actually is don't So very because slowdown think a market

We that last year. have Re mentioned launched Enact before we

We continue to as and in direction. in grow in not very to right the business, have that but we that months, continues quarters, business growing growth described term, that short years, that go a

performance is this that agree completely growth. slower driven So business by versus

that about return through is potentially trade you on where where more a could but Okay. Great. moment. That versus another sense. bit, went return. just follow-up a share capital do cheap it repurchases But little on thinking just maybe there just the dividend as just think all makes special opposed I And level recent maybe about we the then screen given where price-to-book And one the think see a at little maybe capital shares currently over the -- we shares trade peers, they to performance?

Alex, another. of we look to book Yes, buyback share program, at is one, factors. forward different -- on to price a lot our price on book Obviously, is

We our have view own of value. intrinsic

So and setting means a targets we about for to capital. the return buyback triangulate as we as of share kind think others use of those appropriate views

I I just to So complexity current certain that. said maybe our it a a considerations, means we assuming we conditions little buybacks, it capital retain of have bit a I There's than via last that perspective prescription returning will market wouldn't accommodate. that doesn't period price dividend reemphasize go special -- more the a more book. to as into share quarter, And think preference still we hold. we have a for still if

America. next Your Bank question from of line Mihir the Instructions] Bhatia [Operator is of from

just start on to I wanted first premium. the

Or I is in as question new bit constructive. there is slowly of guess the troughed a premium to premium declines just in? rate? premium base mentioned really loans have premium kind Do You grind rates the now? the the maybe is, for environment come potential still for rate little expect higher a the you

for thanks question. Mihir, Yes. the

times about number I premium by impacted in base we've but talked think a the this is different variables. several of past, this rate

As rate, even written NIW persistency, premium all new rate. insurance impact mix, know, premium levels, you the refund base estimates,

So quarterly cause can that complexity variation.

our are expectation. expect throughout stabilize, to premium in X/XX a with is basis that quarter From and we'd in point base rates I flattish the really year. the view is my line increase going rates to that basis think continue flattish sequential perspective, base

bottoming out. I equate a So that wouldn't to

And give Okay. but market the guys then size. a you NIW terms if I this, in of market -- did missed size, sorry,

I said the Is think that view? to had year. last quarter, you last similar still

Yes.

expectation So of in we and that was guidance, market XXXX. $XXX I gave year and We was full February that in billion. believe, year I generally line believe expectation XXXX with gave full a

we recently, somewhere think to down end that. the I now, navigate could I as and of rates think close. year you the that or But see upside $XXX right towards coming billion some

that pretty sounds So good.

what little we it back come Okay. Is is that you separation last it -- improvements? just should Or understand, the maybe that And the program. anticipated? from market then is just I wanted I the driver -- guess is question I has slower efficiency take to been the a on than just guess had is that? voluntary to of

Mihir. Yes,

is first this the a an done So perspective. expense voluntary we or separation just reminder, from as first the not have program reduction

outcomes. the and very towards voluntary right that done December processes our are always right was We the investments. efficient similar had we in business and We market XXXX, of announced separation through the are by investments and a working very driven also that our making to and program, conscious expense

about and And So as achieved our think and journey, years. our last more we When has business examples underwriting business over our in an last it efficient. that like XX consistently the productivity, years. the have our XX milestones to underwriting ability increased technology you our productivity for invested make gives new us processes we in

of those this in benefit business journey investments, we and get of use think the So we data that more technology as processes those opportunities efficient. to make investments as the along we make

And to we'll of recent about come of notice. I think of Dean separations million of give back it kind that was end have rate. the stated run we year costs. as some to driver Obviously, a the approach basically the So $X new reduction. And separation these the as that equated working

the to limited take expense complete But and think we expenses, look we about will at have XXXX impact going expenses. and comprehensive it's business as on a a guidance start as XXXX. provide we So XXXX

I'd thing $XXX Mihir, million to only The Rohit XXXX. full Yes. million of pick add $XXX year that up to $X obviously off left restructuring in our that, is isn't to million charge right this guidance for where

about had more I we In-Force, has our thing the never just have Insurance to been out perspective, $XXX think answer, our count efficient. the should are said from billion. one highest Insurance we've you if In-Force, ever an at business round now Mihir, And employee

So dots in of and processes of hopefully, invest harvest connects we of that? strategy, technology do the kind and kind then that our between how benefits the

next from from is Dowling. of Your question the Dunn line Geoffrey

disclose you can that amount current in Dean, was quarter? development provision this of the the period

million the $XX That's quarter. in losses news on Yes. -- were

was that to of X%? related development much to XX% Yes. How going

Geoff, sorry. question, Great Yes.

and So million parts, the claim its $XX from at million focused the the answer, rate XX% on if really related We activity that quarter X%. X%. $XX to through I that's of accident about as mentioned first is prior a XXXX out booked quarters. new $XX to of second in the about you million to XXXX half And elevated related cure is the into reduction break piece delinquencies

So million there favorable to that is $XX development no losses on relative news.

Okay.

ran quarter So from year. first prior

Yes. Prior periods.

some more right. the a you're of watching Got MSAs right are then softer it. What All of question. now? And macro

would is of strategy. our tough Yes, part It's to just give specific Jeff, I that, that's this commercial say geographies. on Rohit. guidance

our an level. don't at I call. an MSA risk strategy do and appetite discuss earnings pricing on deploy to So it We want

data from in rest as experience appetite and perspective, that our as are looking sourcing perspective So well MSAs market both different an assured forward view and pricing. putting that basically at we risk

time COVID in would from. a to and population If where went there. run-up. to there's market basically been terms the of use inflow a a just use the back came have basically I then seen they less period that activity was ended, And like I result, smaller COVID where say, like once during you Boise, market, population And of might as

at as where activity way level So from we project economic that be to an well as use going. might data MSA all markets data the

still XOL just little matching between on like talk bit we're up? looks a I'm things. then how XOL are markets? can question, ILN about you It execution ILNs And of versus seems side last kind the how traditional of the curious

Yes.

imbalance that I NIW think included bit well. performing very demand. are what most I have what there's we markets haven't the quarters between of now. over been couple And recent Obviously, supply little a in the mean ILN and of market periods. for is insurers Enact mortgage a I by both But very, lower think

less capacity coverage to less so And or for acquire. less coverage, need

investors capacity, whether space, And time, you driving coming terms, the market, reinsurers ILN at and markets providing have the new new some whether that's additional into that's in traditional that's in or and same favorability the the in capital reinsurance price [indiscernible]. market

XXXX reconsider look do our second probably the to very half think forward now, I plans market advantage XOL plan I'd both attractive. to those limited. the market So markets take of something our are we that attractive, hopefully quota opportunistically. and unless forward Right attractive CRT share and and year base of We'll into say bring conditions. with is for pretty more But capacity go

to conference turn further no remarks. would now at for the speakers I to are this There our time. closing back questions any like

Thank We Enact. in appreciate Mecky. you, interest everybody's

at seeing and hosting We be you Future fireside Forum mid-August. Thank to you. of will events. these We be JPMorgan chat attending with Financials forward look a JPMorgan tomorrow, we of will in one

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

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