Enact Holdings, Inc.

Hello and welcome to Enact's third quarter 2025 earnings call. Please be advised that today's conference is being recorded. Should you need assistance, please signal a conference specialist by pressing star then zero on your telephone keypad. I would now like to hand the conference over to your first speaker, Daniel Cole, Vice President of Investor Relations. You may begin.

Thank you and good morning. Welcome to our third 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, performance, and progress against our strategy. Dean will then discuss the details of our quarterly results before turning the call back to Rohit for closing remarks. We will then take your questions. The earnings materials we issued after market closed yesterday contain our financial results for the quarter, along with a comprehensive set of financial and operational metrics. These are available on the Investor Relations section of our website. 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. Additionally, they are subject to risks and uncertainties, which may cause actual results to be materially different, and we undertake no obligation to update or revise such statements as a result of 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'll turn the call over to Rohit.

Thank you, Daniel. Good morning, everyone. I am pleased to report that ANAC delivered another strong quarter of performance, reflecting the continued disciplined execution of our strategy and the strength of our operating model. Our results demonstrate the strength of our business and our ongoing commitment to creating long-term value for our shareholders. To that end, we are pleased to announce our updated 2025 capital return expectation of approximately $500 million. up from prior guidance of $400 million. Additionally, we entered a new $435 million revolving credit facility with favorable terms, providing additional financial flexibility with which to manage our business and execute our strategy. Dean will discuss both in more detail. For the third quarter, we reported adjusted operating income of $166 million or $1.12 per diluted share. Additionally, adjusted return on equity was 13%, while insurance and force increased 2% year-over-year to $272 billion, and we generated robust new insurance written of over $14 billion. We continue to navigate a dynamic macroeconomic environment with discipline and focus. The U.S. economy continues to be supported by steady consumer spending, moderating inflation, and a resilient labor market. even as hiring momentum cools. On a national level, steady wage growth, lower mortgage rates, and generally stable home prices have driven modest improvements to affordability. However, given broader macro uncertainties, consumers are more cautious and many buyers are still waiting for the right conditions, leading to an increase in housing supply in certain geographies. Overall, our business remains underpinned by strong demographic tailwinds particularly from prospective first-time home buyers entering the market. We remain optimistic about the long-term health of the U.S. housing market and confident in our ability to deliver through economic cycles. Against this backdrop, our capital position and credit performance remain key strengths. During the quarter, we executed against our CRT program with a new quota share agreement that will cover new insurance written in 2027. In addition, After quarter end, we closed on a new forward excess of loss agreement that will provide approximately $170 million of coverage on a portion of our 2027 book. Our PMIR sufficiency ratio was 162%, providing significant financial flexibility, and our credit and investment portfolios are in excellent shape. Our insurance-in-force portfolio remains resilient with the risk-weighted average FICO score of the portfolio at 746. The risk-weighted average loan-to-value ratio was 93%, and layered risk was 1.2% of risk-in-force. Pricing was constructive again in the quarter, and we maintained our commitment to prudent underwriting standards. Our pricing engine, rate 360, dynamically delivers competitive risk-adjusted pricing by factoring in actual and projected housing market trends at a detailed geographic level. Total delinquencies were up 6% sequentially, with new delinquencies up 12% and cures down 1%, both consistent with seasonal trends. We had a reserve release of 45 million, and our resulting loss ratio for the quarter was 15%. Credit performance continues to be strong, and we remain well-reserved for a range of scenarios. We delivered another quarter of strong expense management with expenses that were down year over year despite the ongoing inflationary environment. We are pleased with our disciplined cost management year to date, and Dean will discuss the improved expectations for the remainder of 2025. We continue to advance against our capital allocation priorities, support existing policyholders by maintaining a strong balance sheet, invest in our business to drive organic growth and efficiencies, fund attractive new business opportunities, and return excess capital to shareholders. Regarding our first priority, I've already discussed our strong capital position, underscored by a robust PMIRES buffer, as well as the ongoing execution of our CRT program and new credit facility. I'm also pleased to note that during the quarter, we received our fourth ratings upgrade from Moody's since going public in 2021. Upgrading MX rating to A2 from A3 and enact holdings ratings to BAA2 from BAA3 while AMBEST moved our outlook to positive. In relation to our second priority, We continue to invest in initiatives to drive growth in our core MI business, including pursuing opportunities to deepen our existing relationships with lenders through technology enhancements, increasing customer engagement, and improving the efficiency of our operations. In addition, Anacri continues to perform well and participate in attractive GSC single and multifamily deals while maintaining strong underwriting standards and generating attractive risk-adjusted returns. An ACRI remains a long-term growth opportunity that is both capital and expense efficient. Finally, as it relates to capital returns, during the third quarter, we returned $136 million to shareholders through share repurchases and dividends. And as I mentioned earlier, we are increasing our expected capital returns to approximately $500 million for the year. This represents our highest capital return since the IPO while also maintaining a very strong balance sheet and investing in our future. This upward revision reflects the strength of our business model and the current levels of mortgage originations. Overall, we are pleased with our performance in the third quarter and through the first nine months of 2025. We continue to navigate a complex and evolving environment from a position of strength supported by robust new insurance written with excellent credit quality, a strong balance sheet, and prudent expense management. As always, we are actively engaged with our lending partners, the GSCs, and the administration to ensure we remain well positioned to adapt to an evolving environment. With that, I will now hand it over to Dean to walk through our financial results in more detail.