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RALEIGH, N.C. - Enact Holdings, Inc. (NASDAQ:ACT), a $5.7 billion market cap mortgage insurer trading near its 52-week high of $39.47, announced Thursday that its flagship entity, Enact Mortgage Insurance Corporation, has entered into a quota share reinsurance agreement with multiple reinsurers for 2027 coverage.
Under the agreement, Enact will cede approximately 34% of a portion of expected new insurance written for the period from January 1 through December 31, 2027. The company has secured this coverage from a panel of reinsurers, each currently rated A- or better by Standard & Poor’s or A.M. Best, or A3 or better by Moody’s.
"This new quota share agreement underscores our commitment to disciplined risk management and efficient capital deployment," said Rohit Gupta, President and CEO of Enact, in a press release statement. According to InvestingPro data, the company maintains a "GREAT" financial health score, supported by a robust 74.75% gross profit margin and a healthy 2.17% dividend yield.
Enact Holdings, which operates primarily through its wholly-owned subsidiary Enact Mortgage Insurance Corporation, has been a private mortgage insurance provider in the U.S. since 1981.
The reinsurance arrangement is subject to certain conditions, according to the company’s announcement. The transaction represents part of Enact’s ongoing risk management strategy as it continues its operations in the mortgage insurance market. InvestingPro analysis suggests the stock is currently undervalued, with multiple additional insights available through their comprehensive Pro Research Report, one of 1,400+ detailed company analyses.
Enact Holdings is headquartered in Raleigh, North Carolina, and is listed on the Nasdaq exchange, where it trades at a P/E ratio of 8.75 with annual revenues exceeding $1.2 billion.
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