ACT Overview

Barington Capital's Proxy Fight: Activist investor Barington Capital Group has nominated three directors for the board of Matthews International, initiating a second proxy fight after losing the first one earlier this year.

Criticism of Matthews' Management: Barington has expressed concerns over Matthews' business portfolio, capital allocation, and the performance of its long-serving CEO, while Matthews claims to have made improvements and engaged constructively with the hedge fund.

Changes in Board Nominations: The hedge fund's new nominees include its founder James Mitarotonda and two other experienced executives, with one previous nominee being replaced, as Barington continues to push for board changes.

Previous Support and Future Plans: In the last proxy fight, Barington received backing from three proxy advisory firms but was ultimately rejected by shareholders; the company plans to address governance changes at its 2026 meeting.

Ex-Dividend Date and Dividend Payment: Enact Holdings, Inc. will trade ex-dividend soon, with a record date before November 21st, and a dividend payment of US$0.21 per share scheduled for December 11th.

Payout Ratio and Dividend Sustainability: The company has a conservative payout ratio of 18%, indicating a lower risk of dividend cuts, although its earnings have stagnated over the past five years.

Dividend Growth History: Enact Holdings has achieved an average dividend growth rate of 11% per year over the last four years, which is a positive sign for potential investors.

Investment Considerations: While the company shows promise for dividend investors, there are identified warning signs that should be considered as part of the investment process.

Court Appeal Decision: The UK Court of Appeal has granted Santander permission to appeal a High Court ruling that found it liable for approximately £680 million in damages related to the mis-selling of Payment Protection Insurance (PPI) policies, which were underwritten by companies acquired from Genworth Financial.

Genworth's Financial Position: Genworth Financial is entitled to a share of any funds recovered by the claimants from third parties regarding PPI-related losses, although these potential recoveries have not been included in Genworth's capital allocation plans.

Future Financial Strategy: Any proceeds from the litigation will be used according to Genworth's capital allocation priorities, which include investing in growth, returning capital to shareholders, and reducing debt.

Forward-Looking Statements: The press release contains forward-looking statements regarding potential litigation outcomes and their impact on Genworth's financial condition, emphasizing the uncertainties and risks involved in the appeal process.

Earnings Release Announcement: Enact Holdings, Inc. will release its third quarter earnings on November 5, 2025, and host a conference call on November 6, 2025, at 8:00 a.m. (ET) to discuss the results.

Access to Information: The earnings release and related materials will be available on Enact's website, and participants can pre-register for the conference call or join a live webcast, which will also be archived for one year.