"This level of dividends more than covers Genworth's $60 million of annual interest expense and is allowing the company to opportunistically buy back stock and further reduce debt," George said. Enact paid $206 million in dividends last year to Genworth and George expects a similar amount for 2023 and next year. Meanwhile, Genworth right now is unlikely to conduct a secondary public offering of Enact stock, said George. "We don't think it would necessarily change the approach to capital/risk management, although we see it being generally supportive of valuation, particularly if macro conditions were to weaken," wrote Eric Hagen, an analyst with BTIG. If the government-sponsored enterprises confirm this, Enact would no longer be subject to tougher capital requirements than its competitors. Both companies believe that financial strength conditions established by Fannie Mae and Freddie Mac at the time Enact went public had been met by year-end. In 2021, it ranked third with $97 billion written.įormer parent Genworth Financial still owns 81.4% of Enact's stock. 4 spot among the six companies at $66.5 billion. Without that transaction, NIW would have declined 4% from the third quarter and 32% from the fourth quarter of 2021, Enact said.įor the full year, though, Enact slipped to the No. In the fourth quarter, its NIW of $15 billion was 1% higher than the prior quarter but down by 29% from the $21 billion produced for the same period in 2022.īut the most recent period included a one-time deal where it provided insurance on seasoned loans. Best placed a number of its own Arch ratings on review with developing implications.Enact reported fourth quarter net income of $144 million, compared with $194 million in the third quarter and $154 million one year prior.įor the full year, it made $704 million, an increase over the $547 million profits reported for 2021. Moody’s placed several Arch ratings on review for downgrade, and A.M. The ratings agency raised its ratings for Arch in light of the completed deal.įitch placed several ratings for Arch Capital Group on rating watch negative. But S&P affirmed its “A-” long-term counterparty credit rating for Arch Capital, as well as the counterparty credit and financial strength ratings for Arch’s operating subsidiaries. S&P revised its outlook to negative from stable on all Arch Capital ratings and its subsidiaries (except for Arch Mortgage) due to financial risks involved. Best gave a mixed response regarding Arch’s side of the deal. Soon after the deal was announced, Standard & Poor’s, Fitch Ratings, Moody’s and A.M. He reports to Andrew Rippert, CEO of Arch’s global mortgage group. primary mortgage insurance operations, which will be headquartered in Greensboro, North Carolina, with significant operations in California. ![]() AIG said it is retaining a portion of mortgage-insurance business originated from 2014 through 2016 through a intra-company risk transfer deal.ĭavid Gansberg, president and CEO of Arch U.S., is responsible for U.S. The deal is valued at $3.4 billion including $2.2 billion in cash and the rest in Arch securities, AIG said in August. 30, with 1,000 employees and active relationships with nearly 1,700 customers, according to AIG. UGC had $186.4 billion of first-lien primary mortgage insurance in force as of Sept. International business will be combined in Europe, Hong Kong and Australia. Arch has said it will maintain a significant presence in that state while retaining mortgage-insurance operations in California. United Guaranty, based in Greensboro, North Carolina, has about 1,000 employees. “We believe that the companies’ complementary risk-management cultures will further accelerate innovation and sound risk management and help us to maximize our best-in-class processes in the specialty insurance space,” Iordanou said when the deal was announced. “With this transaction, AIG has taken another step in simplifying our organization to become a leaner, more focused insurance company,” AIG President and CEO Peter Hancock said in prepared remarks.ĪIG has been reorganizing and streamlining in part to fend off pressure from activist investor Carl Icahn to break up the insurer.ĪIG has said it will continue to be a participant in the residential real estate market through direct ownership of mortgage loans, a portfolio of structured securities, the holding of Arch stock and continued ties to United Guaranty.Īrch CEO Dinos Iordanou said the transaction unites two market leaders.
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