Enact Holdings Intrinsic Value – Enact Holdings Signs Quota Share Reinsurance Agreement for Mortgage Insurance
January 5, 2024
☀️Trending News
Enact Holdings ($NASDAQ:ACT) has recently signed a quota share reinsurance agreement to help secure mortgage insurance. The agreement will help protect the mortgage insurance company against any financial losses and provide additional capital for future business investments. This agreement is the latest in a string of strategic moves by Enact Holdings to expand its portfolio and create a secure foundation for its business. ENACT HOLDINGS is a publicly traded holding company that is focused on providing customers with innovative and competitive financial products and services. The company’s mission is to provide customers with access to a wide range of financial solutions, from asset management to risk mitigation.
They operate through multiple subsidiaries, including an insurance company, a bank, and a registered investment advisor. ENACT HOLDINGS’ success is attributed to their focus on collaboration with customers and other stakeholders and their commitment to providing the highest quality customer service. Their goal is to create value for their clients by delivering comprehensive solutions to meet their individual needs.
Stock Price
By the closing of the day, the stock price of ENACT HOLDINGS dropped 0.8% from the previous closing price of 28.7, closing at 28.4. The agreement marks a significant step forward from the company as it continues to expand its portfolio and services. It’s expected that this agreement will bring additional stability to the company’s financials, positioning it for greater growth in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Enact Holdings. More…
| Total Revenues | Net Income | Net Margin |
| 1.13k | 652.01 | 57.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Enact Holdings. More…
| Operations | Investing | Financing |
| 600.42 | -107.71 | -350.5 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Enact Holdings. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 6k | 1.54k | 27.91 |
Key Ratios Snapshot
Some of the financial key ratios for Enact Holdings are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 3.8% | – | 78.2% |
| FCF Margin | ROE | ROA |
| 52.9% | 12.5% | 9.2% |
Analysis – Enact Holdings Intrinsic Value
GoodWhale has done an in-depth analysis of ENACT HOLDINGS‘ fundamentals and our proprietary Valuation Line points to a fair value of around $33.5 for the company’s stock. Currently, ENACT HOLDINGS stock is trading at $28.4, which is 15.3% below its fair value. This presents an attractive entry point for investors looking to capitalize on the current market opportunity. More…
Peers
The mortgage insurance industry is highly competitive, with Enact Holdings Inc competing against Tiptree Inc, NMI Holdings Inc, and MGIC Investment Corp. All four companies offer similar products and services, but Enact Holdings Inc has distinguished itself through its innovative approach to the industry.
– Tiptree Inc ($NASDAQ:TIPT)
Tiptree Inc. is a holding company that invests in businesses in a variety of industries, including insurance, real estate, and hospitality. The company’s insurance subsidiaries include Tiptree Insurance Group, Inc. and Tiptree Financial Group, Inc. Its real estate subsidiaries include Tiptree Realty Partners, LLC. and Tiptree Property Management, LLC. Its hospitality subsidiaries include Tiptree Hospitality Group, LLC. and Tiptree Hotels, LLC.
– NMI Holdings Inc ($NASDAQ:NMIH)
NMI Holdings Inc is a provider of private mortgage insurance in the United States. The company has a market cap of 1.76B as of 2022 and a return on equity of 18.87%. NMI Holdings Inc operates in two segments, Mortgage Insurance and Real Estate. The Mortgage Insurance segment provides primary mortgage insurance on first-lien mortgage loans secured by residential property in the United States. The Real Estate segment acquires, finances, and manages a portfolio of real estate-owned properties.
– MGIC Investment Corp ($NYSE:MTG)
MGIC Investment Corp is a US-based private mortgage insurance company. The company offers mortgage insurance, reinsurance, and financial services to lenders and borrowers in the United States. As of 2022, MGIC had a market capitalization of $3.76 billion and a return on equity of 13.85%. The company offers a variety of mortgage insurance products, including primary, secondary, and portfolio insurance. It also provides reinsurance to other mortgage insurers. In addition, MGIC offers a range of financial services, including loan servicing, loan origination, and loan modification.
Summary
Enact Holdings is a financial services firm that specializes in mortgage insurance and reinsurance products. Their products are designed to help institutions mitigate the risks associated with issuing mortgages. Recently, the company announced that they had signed a quota share reinsurance agreement with an undisclosed partner. This move will help Enact Holdings expand its product offerings and reduce the risk of its existing mortgage portfolios.
Investing in Enact Holdings could be a good option for those looking for a long-term investment in the financial services sector. The company is well-positioned to benefit from the growing demand for mortgage insurance products and has a wide array of products that could help investors diversify their portfolios.
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