Enact Receives Ratings Upgrades from Fitch Ratings

Rhea-AI Summary

Enact Holdings (Nasdaq: ACT) has received significant ratings upgrades from Fitch Ratings, demonstrating the company's strong financial performance and capital position. Fitch has upgraded the insurance financial strength rating of Enact Mortgage Insurance to A from A-, and elevated Enact's senior debt rating to BBB from BBB-. Both ratings maintain a stable outlook.

CEO Rohit Gupta emphasized that these upgrades reflect the company's success in strengthening its financial foundation and executing strategic priorities while maintaining effective risk management. The company remains committed to its strategy of supporting partners and creating stakeholder value.

Positive

• Upgrade of insurance financial strength rating to A from A-
• Upgrade of senior debt rating to BBB from BBB-
• Stable outlook maintained for both ratings

Negative

• None.

Underscores Enact’s Strong Performance and Robust Capital Position

RALEIGH, N.C., Jan. 21, 2025 (GLOBE NEWSWIRE) -- Enact Holdings, Inc. (Nasdaq: ACT) (Enact), a leading provider of private mortgage insurance through its insurance subsidiaries, today announced that Fitch Ratings (“Fitch”) upgraded the insurance financial strength rating for our flagship insurance subsidiary, Enact Mortgage Insurance Corporation, to A from A-. Fitch also upgraded Enact’s senior debt rating to BBB from BBB-. The outlook for both ratings is stable.

“The upgrades from Fitch reflect the progress we’ve made in strengthening our financial foundation and delivering on our strategic priorities, while continuing to effectively manage our risk and operate from a position of financial strength,” said Rohit Gupta, Enact’s Chief Executive Officer. “Looking ahead, we remain focused on executing against our strategy, supporting our partners and creating value for our stakeholders.”

Additional information regarding the rating changes can be found in the full reports issued by Fitch.

About Enact Holdings, Inc.
Enact (Nasdaq: ACT), operating principally through its wholly-owned subsidiary Enact Mortgage Insurance Corporation since 1981, is a leading U.S. private mortgage insurance provider committed to helping more people achieve the dream of homeownership. Building on a deep understanding of lenders' businesses and a legacy of financial strength, we partner with lenders to bring best-in class service, leading underwriting expertise, and extensive risk and capital management to the mortgage process, helping to put more people in homes and keep them there. By empowering customers and their borrowers, Enact seeks to positively impact the lives of those in the communities in which it serves in a sustainable way. Enact is headquartered in Raleigh, North Carolina.

Safe Harbor Statement
This communication contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may address, among other things, our expected financial and operational results, the related assumptions underlying our expected results, guidance concerning the future return of capital and the quotations of management. These forward-looking statements are distinguished by use of words such as “will,” “may,” “would,” “anticipate,” “expect,” “believe,” “designed,” “plan,” “predict,” “project,” “target,” “could,” “should,” or “intend,” the negative of these terms, and similar references to future periods. These views involve risks and uncertainties that are difficult to predict and, accordingly, our actual results may differ materially from the results discussed in our forward-looking statements. Our forward-looking statements contained herein speak only as of the date of this press release. Factors or events that we cannot predict, including risks related to an economic downturn or a recession in the United States and in other countries around the world; changes in political, business, regulatory, and economic conditions; changes in or to Fannie Mae and Freddie Mac (the “GSEs”), whether through Federal legislation, restructurings or a shift in business practices; failure to continue to meet the mortgage insurer eligibility requirements of the GSEs; competition for customers; lenders or investors seeking alternatives to private mortgage insurance; an increase in the number of loans insured through Federal government mortgage insurance programs, including those offered by the Federal Housing Administration; and other factors described in the risk factors contained in our 2023 Annual Report on Form 10-K and other filings with the SEC, may cause our actual results to differ from those expressed in forward-looking statements. Although Enact believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, Enact can give no assurance that its expectations will be achieved and it undertakes no obligation to update publicly any forward-looking statements as a result of new information, future events, or otherwise, except as required by applicable law.

This press release was published by a CLEAR® Verified individual.

FAQ

What ratings upgrades did Enact Holdings (ACT) receive from Fitch in January 2024?

Fitch upgraded Enact Mortgage Insurance 's insurance financial strength rating to A from A-, and Enact Holdings' senior debt rating to BBB from BBB-, both with stable outlooks.

How will Fitch's ratings upgrade impact Enact Holdings (ACT) business?

The ratings upgrades reflect Enact's strong financial performance and robust capital position, which can enhance credibility with partners and stakeholders, potentially leading to improved business opportunities.

What is the current Fitch rating outlook for Enact Holdings (ACT)?

Fitch has assigned a stable outlook for both Enact's insurance financial strength rating and senior debt rating.

What factors led to Enact Holdings' (ACT) ratings upgrade by Fitch?

The upgrades were based on Enact's strengthened financial foundation, successful execution of strategic priorities, and effective risk management practices.