Enact Initiates Dividend Program and Announces Inaugural Quarterly Dividend
April 28 2022 - 7:00AM
Enact Holdings, Inc. (Nasdaq: ACT) (Enact), a
leading provider of private mortgage insurance through its
insurance subsidiaries, today announced that its Board of Directors
has approved the initiation of a dividend program under which the
Company intends to pay a quarterly cash dividend. The inaugural
quarterly dividend for the second quarter of 2022 will be $0.14 per
share, payable on May 26, 2022 to common shareholders of record on
May 9, 2022. Future dividend payments are subject to quarterly
review and approval by our Board of Directors and will be targeted
to be paid in the third month of each subsequent quarter.
Rohit Gupta, Enact’s President and CEO stated, “The Board’s
decision to initiate a dividend program reflects our confidence in
Enact’s operating performance, as well as our commitment to drive
shareholder value by returning capital to shareholders while
maintaining a strong balance sheet to support the growth of our
business. Going forward, we believe we are well positioned to
return capital to shareholders while investing in our growth.”
Earlier this month, our primary mortgage insurance operating
company, Enact Mortgage Insurance Corporation (“EMICO”), completed
a distribution to Enact Holdings Inc. (“EHI”) that will support our
ability to pay a quarterly dividend. We intend to use these
proceeds and future EMICO distributions to fund the quarterly
dividend as well as to bolster our financial flexibility at EHI and
return additional capital to shareholders.
Returning capital to shareholders, balanced with our growth and
risk management priorities, remains a key commitment for Enact as
we look to drive shareholder value through time. We believe the
initiation of a quarterly dividend reflects meaningful progress
towards that goal and we continue to evaluate the most appropriate
amount of total capital to return to shareholders for the remainder
of 2022. Our ultimate view will be shaped by our capital
prioritization framework: supporting our existing policyholders,
growing our mortgage insurance business, funding attractive new
business opportunities and returning capital to shareholders. Our
total return of capital will also be based on our view of the
prevailing and prospective macro-economic conditions, regulatory
landscape and business performance.
Forward Looking Statements:This communication contains
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act. These forward-looking
statements may address, among other things, our expected financial
and operational results, the related assumptions underlying our
expected results, 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
uncertainty around Covid-19 and the effects of government and other
measures seeking to contain its spread; supply chain constraints;
inflation; risks related to an economic downturn or 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 Annual Report on
Form 10-K and other filings with the Securities and Exchange
Commission, may cause our actual results to differ from those
expressed in forward-looking statements. In addition, the
potential for future dividend payments will be determined in
consultation with the Board of Directors, and after considering
economic and regulatory factors, current risks to the Company, and
subsidiary performance. Although Enact believes the expectations
reflected in such forward-looking statements are based on
reasonable assumptions, the Company 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.
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.
From time to time, Enact releases important information via
postings on its website. Accordingly, investors and other
interested parties are encouraged to enroll to receive automatic
email alerts and Really Simple Syndication (RSS) feeds regarding
new postings. Enrollment information is found at
https://ir.enactmi.com/.
Investor Contact
Daniel Kohl
EnactIR@enactmi.com
Media Contact
Brittany Harris-Flowers
brittany.harris-flowers@enactmi.com
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