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Mortgage insurance spinoff Enact Holdings sets terms for $497 million IPO

May 4, 2021

Enact Holdings, a private mortgage insurance company being spun out of Genworth Financial, announced terms for its IPO on Tuesday. Previously known as Genworth Mortgage Holdings, the company changed its name in the latest filing, and also selected a ticker.

The Raleigh, NC-based company plans to raise $497 million by offering 22.6 million shares (100% secondary) at a price range of $20 to $24. Bayview Asset Management has agreed to purchase an additional 4 million shares from the selling shareholder in a concurrent private placement. At the midpoint of the proposed range, Enact Holdings would command a market value of $3.6 billion.

Enact states that it is a leading private mortgage insurance (PMI) company in the US, operating in all 50 states and the District of Columbia. The company generated nearly $100 billion in new insurance written during the 2020 (+60% y/y). In both 2019 and 2020, Enact provided new insurance coverage to approximately 1,800 customers, including 19 of the top 20 mortgage lenders as measured by total 2019 and 2020 mortgage originations.

Enact Holdings was founded in 1981 and booked $1.1 billion in sales for the 12 months ended December 31, 2020. It plans to list on the Nasdaq under the symbol ACT. J.P. Morgan, Goldman Sachs, BofA Securities and Credit Suisse are the joint bookrunners on the deal. It is expected to price during the week of May 10, 2021.