UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported): November 2, 2021
(Exact name of registrant as specified in its charter)
| (State or other Jurisdiction of | (Commission | (IRS Employer | ||||||||||||
| Incorporation) | File Number) | Identification No.) | ||||||||||||
(919 ) 846-4100
(Address, including zip code, and telephone number, including area code, of registrant’s principal executive offices)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 2.02 | Results of Operations and Financial Condition. | ||||
On October 2, 2021, Enact Holdings, Inc. (the “Company”) issued (1) a press release announcing its financial results for the quarter ended September 30, 2021, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference, and (2) a financial supplement for the quarter ended September 30, 2021, a copy of which is attached hereto as Exhibit 99.2 and is incorporated herein by reference.
The information contained in this Current Report on Form 8-K (including the exhibits) is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of the company under the Securities Act of 1933, as amended or the Exchange Act, except as shall be expressly set forth by specific reference in such filing. The information contained in this Current Report on Form 8-K shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in any such filing.
| Item 9.01 | Financial Statements and Exhibits. | ||||
The following materials are furnished as exhibits to this Current Report on Form 8-K:
| Exhibit Number | ||||||||
Press Release dated November 2, 2021 | ||||||||
Financial Supplement for the quarter ended September 30, 2021 | ||||||||
| 104 | Cover Page Interactive Data File (the Cover Page Interactive Data File is embedded within the Inline XBRL document) | |||||||
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Enact Holdings, Inc. | |||||||||||
| By: | /s/ Dean Mitchell | ||||||||||
| Name: | Dean Mitchell | ||||||||||
| Title: | Executive Vice President, Chief Financial Officer and Treasurer | ||||||||||
| Dated: ________________, 2021 | |||||||||||
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ENACT REPORTS THIRD QUARTER 2021 RESULTS
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GAAP Net Income of $137 million, or $0.84 per diluted share
Adjusted Net Operating Income of $137 million, or $0.84 per diluted share
13.2% return on equity and 13.2% adjusted return on equity
$25.80 book value per share
PMIERs Sufficiency of 181% or $2,287 million, highest level ever
Raleigh, NC, November 2, 2021 – Enact Holdings, Inc. (Nasdaq: ACT) today announced financial results for the third quarter of 2021, ending September 30, 2021.
“We are very proud to begin our journey as a public company with one of our strongest quarters of financial and operational performance since the beginning of the pandemic,” said Rohit Gupta, President and CEO of Enact. “Our results reflect the high credit quality of our insurance portfolio and continued execution of our growth strategy against the backdrop of a resilient housing market. Our recently completed IPO and ratings upgrades significantly enhance our ability to realize the full potential of the opportunities ahead of us. We are well positioned for the future, and our deep customer relationships, differentiated solutions, and strong risk and capital management discipline position Enact to drive long-term success and value creation.”
Key Financial Highlights
| (In millions, except per share data or otherwise noted) | 3Q21 | 2Q21 | 3Q20 | |||||||||||||||||
| Net Income (loss) | $137 | $131 | $138 | |||||||||||||||||
| Diluted Net Income (loss) per share | $0.84 | $0.80 | $0.85 | |||||||||||||||||
| Adjusted Operating Income (loss) | $137 | $134 | $139 | |||||||||||||||||
| Adj. Diluted Operating Income (loss) per share | $0.84 | $0.82 | $0.86 | |||||||||||||||||
| NIW ($B) | $24.0 | $26.7 | $26.6 | |||||||||||||||||
| Primary IIF ($B) | $222 | $217 | $203 | |||||||||||||||||
| Net Premiums Earned | $243 | $242 | $251 | |||||||||||||||||
| Losses Incurred | $34 | $30 | $44 | |||||||||||||||||
| Loss Ratio | 14% | 12% | 18% | |||||||||||||||||
| Operating Expenses | $59 | $67 | $59 | |||||||||||||||||
| Expense Ratio | 24% | 27% | 23% | |||||||||||||||||
| Net Investment Income | $36 | $35 | $33 | |||||||||||||||||
| Return on Equity | 13.2% | 13.0% | 14.2% | |||||||||||||||||
| Adjusted Operating Return on Equity | 13.2% | 13.4% | 14.3% | |||||||||||||||||
| PMIERs Sufficiency ($) | $2,287 | $1,941 | $1,074 | |||||||||||||||||
| PMIERs Sufficiency (%) | 181% | 165% | 132% | |||||||||||||||||
Third Quarter 2021 Financial and Operating Highlights
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•Net income for the third quarter of 2021 was $137 million, or $0.84 per diluted share, compared with $131 million for the second quarter of 2021 and $138 million for the third quarter of 2020. The decrease in net income from the third quarter of 2020 was primarily driven by lower earned premiums and a full quarter of interest expense from our 2020 debt offering. These factors were partially offset by lower incurred losses. The increase in net income sequentially was driven by lower expenses and higher investment income as well as investment gains partially offset by higher losses in the current quarter.
•Adjusted net operating income for the third quarter of 2021 was $137 million, or $0.84 per diluted share, compared with $134 million, or $0.82 per diluted share for the second quarter of 2021 and $139 million, or $0.86 per diluted share, for the third quarter of 2020.
•New insurance written was $24.0 billion, down 10% compared to $26.7 billion in the second quarter of 2021. Our new insurance written for the third quarter was comprised of 90% monthly premium policies and 88% purchase originations.
•Primary Insurance-in-force was $222 billion, up 2% compared to $217 billion in the second quarter of 2021 and up 10% compared to $203 billion in the third quarter of 2020.
•Persistency for the third quarter was 65%, up from 63% in the second quarter of 2021 and 59% in the third quarter of 2020. Persistency remains below the historical norm of approximately 80%.
•Net premiums earned were $243 million, flat versus the second quarter of 2021 and down 3% compared to $251 million in the third quarter of 2020. Net earned premium yield was down from the third quarter of 2020 driven by a combination of lower single premium cancellations, higher ceded premiums and the lapse of older, higher-priced policies as compared to our new insurance written.
•Losses incurred were $34 million and the loss ratio was 14%, compared to $30 million and 12%, respectively, in the second quarter of 2021, driven by seasonally higher new delinquencies, and $44 million and 18%, respectively, in the third quarter of 2020, driven by lower new delinquencies partially offset by favorable incurred but not reported reserve development in the third quarter of 2020.
•Percentage of loans in default at quarter end was 3.1%, compared to 3.6% as of June 30, 2021, and 5.4% as of September 30, 2020, as cures continued to outpace new delinquencies for the fifth consecutive quarter.
•Operating expenses were $59 million, and the expense ratio was 24%, compared to $67 million and 27%, respectively, in the second quarter of 2021, driven by lower corporate overhead associated with the execution of the shared services agreement with Genworth Financial, Inc., and $59 million and 23%, respectively, in the third quarter of 2020. The current quarter operating expenses include $3 million of strategic transaction preparation costs and restructuring costs, which increased the expense ratio by 1 point. The second quarter 2021 operating expenses include $6 million of strategic transaction preparation costs and restructuring costs, which increased the expense ratio by 2 points.
•Net investment income for the quarter was $36 million, up 4% compared to $35 million in the second quarter of 2021 and up 8% compared to $33 million in the third quarter of 2020.
•Annualized return on equity for the third quarter of 2021 was 13.2%, and annualized adjusted operating return on equity was 13.2%.
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Capital and Liquidity
•PMIERs sufficiency increased to 181% and $2,287 million above the published PMIERs requirements compared to 165% and $1,941 million above the published PMIERs requirements in the second quarter of 2021. PMIERs sufficiency improved sequentially driven, in part, by the completion of an insurance linked notes transaction, which added $372 million of PMIERs capital credit as of September 30, 2021, as well as elevated lapse from prevailing low interest rates, business cash flows, and lower delinquencies, partially offset by NIW and amortization of existing reinsurance transactions.
•PMIERs sufficiency benefited from a 0.30 multiplier applied to the risk-based required asset factor for certain non-performing loans, which resulted in a reduction of the published PMIERs required assets by an estimated $570 million at the end of the current quarter, compared to $760 million at the end of the second quarter 2021 and $1,217 million at the end of the third quarter 2020. These amounts are gross of incremental reinsurance benefits from the elimination of the 0.30 multiplier.
•Enact Holdings, Inc. held $293 million of cash as of September 30, 2021, an increase of $9 million from the prior quarter.
•We continue to assess economic and business conditions, including the resolution of forbearance related delinquencies, in support of a fourth quarter dividend to shareholders. To date, aggregate performance indications have been supportive. If these indications remain supportive, we intend to recommend the issuance of a $200 million dividend in 2021 to the Independent Capital Committee and our Board of Directors for their approval.
Recent Events
•On September 2, 2021, Enact’s flagship mortgage insurance company, Genworth Mortgage Insurance Corporation (GMICO), secured $372 million of fully collateralized excess-of-loss reinsurance coverage on a portfolio of existing seasoned mortgage insurance policies written from January 1, 2021, through June 30, 2021, through the issuance of an insurance linked notes transaction.
•On September 16, 2021, Enact successfully completed its initial public offering. Subsequently, S&P, Moody’s and Fitch each upgraded GMICO’s insurance financial strength ratings by one or two notches. GMICO’s upgraded ratings follow:
•S&P: BBB with Positive outlook
•Moody’s: Baa2 with Stable outlook
•Fitch: BBB+ with Stable outlook
Conference Call and Financial Supplement Information
This press release and the third quarter 2021 financial supplement are now posted on the Company’s website, https://ir.enactmi.com. Additional information regarding business results will be posted on the Company's website, by 8:00 a.m. on November 3, 2021. Investors are encouraged to review these materials.
Enact will discuss third quarter 2021 financial results in a conference call tomorrow, Wednesday, November 3, 2021, at 8:00 a.m. Eastern daylight time. Enact’s conference call can be accessed via telephone and Internet. The dial-in number for Enact’s November 3 conference call is 833-730-3978 or 720-405-2123 (outside the U.S.); conference ID #8756793. To participate in the call by webcast, register at https://ir.enactmi.com/news-and-events/events at least 15 minutes prior to the webcast to download and install any necessary software.
A digital replay of the webcast will be available on the Enact website following the live broadcast for a period of one year at https://ir.enactmi.com/news-and-events/events.
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In addition to the information provided in the company's earnings news release, other statistical and financial information, which is expected to be referred to during the conference call, is available on Enact’s website at https://ir.enactmi.com.
About Enact
Enact Holdings, Inc. (Nasdaq: ACT), operating principally through its wholly owned subsidiary Genworth Mortgage Insurance Corp. since 1981, is a leading U.S. private mortgage insurance provider committed to helping more people achieve the dream of homeownership. Building on a deep understanding of lenders' businesses and a legacy of financial strength, we partner with lenders to bring best-in class service, leading underwriting expertise, and extensive risk and capital management to the mortgage process, helping to put more people in homes and keep them there. By empowering customers and their borrowers, Enact seeks to positively impact the lives of those in the communities in which it serves in a sustainable way. Enact is headquartered in Raleigh, North Carolina.
Safe Harbor Statement
This communication contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act. These forward-looking statements may address, among other things, our expected financial and operational results, the related assumptions underlying our expected results, and the quotations of management. These forward-looking statements are distinguished by use of words such as “will,” “would,” “anticipate,” “expect,” “believe,” “designed,” “plan,” or “intend,” the negative of these terms, and similar references to future periods. These views involve risks and uncertainties that are difficult to predict and, accordingly, our actual results may differ materially from the results discussed in our forward-looking statements. Our forward-looking statements contained herein speak only as of the date of this press release. Factors or events that we cannot predict, including uncertainty around Covid-19 and the effects of government and other measures seeking to contain its spread, risks related to an economic downturn or recession in the United States and in other countries around the world, changes in political, business, regulatory, and economic conditions and other factors described in the risk factors contained in our filings with the Securities and Exchange Commission, may cause our actual results to differ from those expressed in forward-looking statements. Although Enact believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, the Company can give no assurance that its expectations will be achieved and it undertakes no obligation to update publicly any forward-looking statements as a result of new information, future events, or otherwise, except as required by applicable law.
GAAP/Non-GAAP Disclosure Discussion
This communication includes the non-GAAP financial measures entitled “adjusted operating income (loss)”, “adjusted operating income (loss) per share", and “adjusted operating return on equity." Adjusted operating income (loss) per share is derived from adjusted operating income (loss). The chief operating decision maker evaluates performance and allocates resources on the basis of adjusted operating income (loss). The Company defines adjusted operating income (loss) as net income (loss) excluding the after-tax effects of net investment gains (losses), restructuring costs and infrequent or unusual non-operating items. The Company excludes net investment gains (losses) and infrequent or unusual non-operating items because the company does not consider them to be related to the operating performance of the company and other activities. The recognition of realized investment gains or losses can vary significantly across periods as the activity is highly discretionary based on the timing of individual securities sales due to such factors as market opportunities or exposure management. Trends in the profitability of our fundamental operating activities can be more clearly identified without the fluctuations of these realized gains and losses. We do not view them to be indicative of our fundamental operating activities. Therefore, these items are excluded from our calculation of adjusted operating income. In addition, adjusted operating income (loss) per share is derived from adjusted operating
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income (loss) divided by shares outstanding. Adjusted operating return on equity is calculated as annualized adjusted operating income for the period indicated divided by the average of current period and prior periods’ ending total stockholders’ equity.
While some of these items may be significant components of net income (loss) in accordance with U.S. GAAP, the company believes that adjusted operating income (loss) and measures that are derived from or incorporate adjusted operating income (loss), including adjusted operating income (loss) per share on a basic and diluted basis and adjusted operating return on equity, are appropriate measures that are useful to investors because they identify the income (loss) attributable to the ongoing operations of the business. Management also uses adjusted operating income (loss) as a basis for determining awards and compensation for senior management and to evaluate performance on a basis comparable to that used by analysts. Adjusted operating income (loss) and adjusted operating income (loss) per share on a basic and diluted basis are not substitutes for net income (loss) available to Enact Holdings, Inc.’s common stockholders or net income (loss) available to Enact Holdings, Inc.’s common stockholders per share on a basic and diluted basis determined in accordance with U.S. GAAP. In addition, the company’s definition of adjusted operating income (loss) may differ from the definitions used by other companies.
Adjustments to reconcile net income (loss) available to Enact Holdings, Inc.’s common stockholders to adjusted operating income (loss) assume a 21% tax rate.
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Exhibit A: Consolidated Statements of Income
Exhibit B: Consolidated Balance Sheets
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Exhibit A
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Exhibit B
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Enact Holdings, Inc. Financial Supplement Third Quarter 2021 Use of Non-GAAP Measures This document includes the non-GAAP financial measures entitled “adjusted operating income (loss)”, “adjusted operating income (loss) per share", and “adjusted operating return on equity." Adjusted operating income (loss) per share is derived from adjusted operating income (loss). The chief operating decision maker evaluates performance and allocates resources on the basis of adjusted operating income (loss). The company defines adjusted operating income (loss) as net income (loss) excluding the after-tax effects of net investment gains (losses), restructuring costs and infrequent or unusual non-operating items. The company excludes net investment gains (losses) and infrequent or unusual non-operating items because the company does not consider them to be related to the operating performance of the company and other activities. The recognition of realized investment gains or losses can vary significantly across periods as the activity is highly discretionary based on the timing of individual securities sales due to such factors as market opportunities or exposure management. Trends in the profitability of our fundamental operating activities can be more clearly identified without the fluctuations of these realized gains and losses. We do not view them to be indicative of our fundamental operating activities. Therefore, these items are excluded from our calculation of adjusted operating income. In addition, adjusted operating income (loss) per share is derived from adjusted operating income (loss) divided by shares outstanding. Adjusted operating return on equity is calculated as annualized adjusted operating income for the period indicated divided by the average of current period and prior periods’ ending total stockholders’ equity. While some of these items may be significant components of net income (loss) in accordance with U.S. GAAP, the company believes that adjusted operating income (loss) and measures that are derived from or incorporate adjusted operating income (loss), including adjusted operating income (loss) per share on a basic and diluted basis and adjusted operating return on equity, are appropriate measures that are useful to investors because they identify the income (loss) attributable to the ongoing operations of the business. Management also uses adjusted operating income (loss) as a basis for determining awards and compensation for senior management and to evaluate performance on a basis comparable to that used by analysts. Adjusted operating income (loss) and adjusted operating income (loss) per share on a basic and diluted basis are not substitutes for net income (loss) available to Enact Holdings, Inc.’s common stockholders or net income (loss) available to Enact Holdings, Inc.’s common stockholders per share on a basic and diluted basis determined in accordance with U.S. GAAP. In addition, the company’s definition of adjusted operating income (loss) may differ from the definitions used by other companies. Adjustments to reconcile net income (loss) available to Enact Holdings, Inc.’s common stockholders to adjusted operating income (loss) assume a 21% tax rate. Page 2
Enact Holdings, Inc. Financial Supplement Third Quarter 2021 3Q 2Q 1Q Total 4Q 3Q 2Q 1Q Total REVENUES: Premiums 243,063$ 242,480$ 252,542$ 738,085$ 250,891$ 251,423$ 242,853$ 226,198$ 971,365$ Net investment income 35,995 34,689 35,259 105,943 34,953 33,197 31,962 32,731 132,843 Net investment gains (losses) 580 (1,753) (956) (2,129) (1,371) (1,609) (439) 95 (3,324) Other Income 671 705 1,738 3,114 1,041 1,325 1,656 1,553 5,575 Total revenues 280,309 276,121 288,583 845,013 285,514 284,336 276,032 260,577 1,106,459 LOSSES AND EXPENSES: Losses incurred 34,124 30,003 55,374 119,501 89,049 44,475 228,826 17,484 379,834 Acquisition and operating expenses, net of deferrals 55,151 63,050 57,622 175,823 59,551 54,994 48,847 51,632 215,024 Amortization of deferred acquisition costs and intangibles 3,669 3,597 3,838 11,104 9,486 3,873 3,684 3,896 20,939 Interest expense 12,756 12,745 12,737 38,238 12,732 5,512 - - 18,244 Total losses and expenses 105,700 109,395 129,571 344,666 170,818 108,854 281,357 73,012 634,041 INCOME (LOSS) BEFORE INCOME TAXES 174,609 166,726 159,012 500,347 114,696 175,482 (5,325) 187,565 472,418 Provision (benefit) for income taxes 37,401 35,914 33,881 107,196 23,515 37,467 (1,285) 42,300 101,997 NET INCOME (LOSS) 137,208 130,812 125,131 393,151 91,181 138,015 (4,040) 145,265 370,421 Net investment (gains) losses (580) 1,753 956 2,129 1,371 1,609 439 (95) 3,324 Costs associated with reorganization 339 2,316 - 2,655 - - - - - Taxes on adjustments 50 (854) (201) (1,005) (288) (338) (92) 20 (698) Adjusted Operating Income (Loss) 137,017$ 134,027$ 125,886$ 396,930$ 92,264$ 139,286$ (3,693)$ 145,190$ 373,047$ Loss Ratio (1) 14% 12% 22% 16% 35% 18% 94% 8% 39% Expense Ratio (2) 24% 27% 24% 25% 28% 23% 22% 25% 24% Earnings (Loss) Per Share Data: Net Income (loss) per share Basic 0.84$ 0.80$ 0.77$ 2.41$ 0.56$ 0.85$ (0.02)$ 0.89$ 2.27$ Diluted 0.84$ 0.80$ 0.77$ 2.41$ 0.56$ 0.85$ (0.02)$ 0.89$ 2.27$ Adj operating income (loss) per share Basic 0.84$ 0.82$ 0.77$ 2.44$ 0.57$ 0.86$ (0.02)$ 0.89$ 2.29$ Diluted 0.84$ 0.82$ 0.77$ 2.44$ 0.57$ 0.86$ (0.02)$ 0.89$ 2.29$ Weighted-average common shares outstanding Basic 162,840 162,840 162,840 162,840 162,840 162,840 162,840 162,840 162,840 Diluted 162,852 162,840 162,840 162,840 162,840 162,840 162,840 162,840 162,840 (1)The ratio of losses incurred to net earned premiums. 2021 2020 Consolidated Statements of Income (amounts in thousands, except per share amounts) (2)The ratio of acquisition and operating expenses, net of deferrals, and amortization of deferred acquisition costs and intangibles to net earned premiums. Expenses associated with strategic transaction preparations and restructuring costs increased the expense ratio by one percentage point for the three months ended September 30, 2021, two percentage points for the three months ended June 30, 2021 and one percentage point for the three months ended March 31, 2021. Page 3
Enact Holdings, Inc. Financial Supplement Third Quarter 2021 Assets September 30, 2021 June 30, 2021 March 31, 2021 December 31, 2020 September 30, 2020 June 30, 2020 March 31, 2020 Investments: Fixed maturity securities available-for-sale, at fair value 5,376,067$ 5,256,467$ 5,106,128$ 5,046,596$ 4,808,379$ 4,384,126$ 4,055,962$ Short term investments 12,500 12,499 12,500 - - - - Total investments 5,388,567 5,268,966 5,118,628 5,046,596 4,808,379 4,384,126 4,055,962 Cash and cash equivalents 451,582 435,323 431,335 452,794 556,734 418,581 302,209 Accrued investment income 31,372 30,843 28,821 29,210 28,965 28,947 26,566 Deferred acquisition costs 27,788 28,322 28,544 28,872 33,228 32,101 30,662 Premiums receivable 43,425 43,287 42,454 46,464 37,917 34,964 39,832 Deferred tax asset - - - - - - 26,822 Other assets 48,572 55,348 49,921 48,774 44,993 55,409 60,788 Total assets 5,991,306$ 5,862,089$ 5,699,703$ 5,652,710$ 5,510,216$ 4,954,128$ 4,542,841$ Liabilities and Shareholder's Interest September 30, 2021 June 30, 2021 March 31, 2021 December 31, 2020 September 30, 2020 June 30, 2020 March 31, 2020 Liabilities: Loss Reserves 648,365$ 624,256$ 603,528$ 555,679$ 474,744$ 439,542$ 230,729$ Unearned premiums 254,806 263,573 280,742 306,945 328,369 339,968 365,841 Other liabilities 129,464 119,289 121,609 133,302 171,751 124,514 81,315 Long-term borrowings 739,838 739,269 738,711 738,162 737,622 - - Deferred tax liability 17,452 25,851 19,787 36,811 31,100 18,166 - Total liabilities 1,789,925 1,772,238 1,764,377 1,770,899 1,743,586 922,190 677,885 Equity: Common stock 1,628 1,628 1,628 1,628 1,628 1,628 1,628 Additional paid-in capital 2,369,822 2,369,601 2,368,782 2,368,699 2,367,631 2,366,099 2,363,710 Accumulated other comprehensive income 133,955 159,854 136,960 208,378 183,747 152,948 (15,685) Retained earnings 1,695,976 1,558,768 1,427,956 1,303,106 1,213,624 1,511,263 1,515,303 Total equity 4,201,381 4,089,851 3,935,326 3,881,811 3,766,630 4,031,938 3,864,956 Total liabilities and equity 5,991,306$ 5,862,089$ 5,699,703$ 5,652,710$ 5,510,216$ 4,954,128$ 4,542,841$ Book value per share 25.80$ 25.12$ 24.17$ 23.84$ 23.13$ 24.76$ 23.73$ U.S. GAAP ROE (1) 13.2% 13.0% 12.8% 9.5% 14.2% (0.4)% 15.1% Net investment (gains) losses (0.1)% 0.2% 0.1% 0.1% 0.2% 0.0% (0.0)% Costs associated with reorganization 0.0% 0.2% 0.0% 0.0% 0.0% 0.0% 0.0% Taxes on adjustments 0.0% (0.1)% (0.0)% (0.0)% (0.0)% (0.0)% 0.0% Adjusted Operating ROE(2) 13.2% 13.4% 12.9% 9.7% 14.3% (0.4)% 15.1% Debt to Capital Ratio 15% 15% 16% 16% 16% 0% 0% (1) Calculated as annualized net income for the period indicated divided by the average of current period and prior periods’ ending total stockholders’ equity (2) Calculated as annualized adjusted operating income for the period indicated divided by the average of current period and prior periods’ ending total stockholders’ equity Consolidated Balance Sheets (amounts in thousands, except per share amounts) Page 4
Enact Holdings, Inc. Financial Supplement Third Quarter 2021 Primary NIW % of Primary NIW Primary NIW % of Primary NIW Primary NIW % of Primary NIW Primary NIW % of Primary NIW Primary NIW % of Primary NIW Primary NIW % of Primary NIW Primary NIW % of Primary NIW Primary NIW % of Primary NIW Primary NIW % of Primary NIW Product Primary 23,972$ 100% 26,657$ 100% 24,934$ 100% 75,563$ 100% 27,017$ 100% 26,550$ 100% 28,396$ 100% 17,908$ 100% 99,871$ 100% Pool - 0% - 0% - 0% - 0% - 0% - 0% - 0% - 0% - 0% Total 23,972$ 100% 26,657$ 100% 24,934$ 100% 75,563$ 100% 27,017$ 100% 26,550$ 100% 28,396$ 100% 17,908$ 100% 99,871$ 100% Origination Purchase 20,988$ 88% 21,143$ 79% 15,500$ 62% 57,631$ 76% 17,840$ 66% 19,914$ 75% 17,409$ 61% 12,020$ 67% 67,183$ 67% Refinance 2,984 12% 5,514 21% 9,434 38% 17,932 24% 9,177 34% 6,636 25% 10,987 39% 5,888 33% 32,688 33% Total Primary 23,972$ 100% 26,657$ 100% 24,934$ 100% 75,563$ 100% 27,017$ 100% 26,550$ 100% 28,396$ 100% 17,908$ 100% 99,871$ 100% Product Monthly 21,475$ 90% 24,887$ 93% 23,358$ 94% 69,720$ 92% 24,725$ 92% 23,399$ 88% 25,774$ 91% 16,249$ 91% 90,147$ 90% Single 2,431 10% 1,686 7% 1,446 6% 5,563 8% 2,185 8% 3,028 12% 2,506 9% 1,532 8% 9,251 9% Other(1) 66 0% 84 0% 130 0% 280 0% 107 0% 123 0% 116 0% 127 1% 473 1% Total Primary 23,972$ 100% 26,657$ 100% 24,934$ 100% 75,563$ 100% 27,017$ 100% 26,550$ 100% 28,396$ 100% 17,908$ 100% 99,871$ 100% FICO Scores Over 760 10,708$ 45% 11,762$ 44% 10,520$ 42% 32,990$ 44% 10,480$ 39% 11,291$ 43% 12,286$ 43% 7,527$ 42% 41,584$ 42% 740 - 759 3,830 16% 3,995 15% 3,836 15% 11,661 15% 4,293 16% 4,094 15% 4,780 17% 3,211 18% 16,378 16% 720 - 739 3,177 13% 3,467 13% 3,423 14% 10,067 13% 3,967 15% 3,533 13% 4,154 14% 2,651 14% 14,305 14% 700 - 719 2,702 11% 3,131 12% 2,979 12% 8,812 12% 3,561 13% 3,115 12% 3,313 12% 2,204 12% 12,193 12% 680 - 699 1,875 8% 2,513 9% 2,480 10% 6,868 9% 2,723 10% 2,377 9% 2,245 8% 1,468 8% 8,813 9% 660 - 679(2) 1,010 4% 1,068 4% 983 4% 3,061 4% 1,165 4% 1,279 5% 931 3% 471 3% 3,846 4% 640 - 659 504 2% 547 2% 511 2% 1,562 2% 586 2% 613 2% 490 2% 266 2% 1,955 2% 620 - 639 166 1% 174 1% 202 1% 542 1% 241 1% 248 1% 197 1% 110 1% 796 1% <620 - 0% - 0% - 0% - 0% 1 0% - 0% - 0% - 0% 1 0% Total Primary 23,972$ 100% 26,657$ 100% 24,934$ 100% 75,563$ 100% 27,017$ 100% 26,550$ 100% 28,396$ 100% 17,908$ 100% 99,871$ 100% Weighted Avg FICO 747 746 745 746 742 745 747 746 745 Loan-To-Value Ratio 95.01% and above 3,396$ 14% 2,767$ 11% 2,241$ 9% 8,404$ 11% 2,905$ 11% 3,700$ 14% 3,212$ 11% 1,808$ 10% 11,625$ 11% 90.01% to 95.00% 8,838 37% 10,758 40% 9,453 38% 29,049 39% 11,088 41% 11,708 44% 12,244 43% 7,713 43% 42,753 43% 85.01% to 90.00% 7,454 31% 8,618 32% 8,392 34% 24,464 32% 8,069 30% 7,053 27% 8,089 29% 5,539 31% 28,750 29% 85.00% and below 4,284 18% 4,514 17% 4,848 19% 13,646 18% 4,955 18% 4,089 15% 4,851 17% 2,848 16% 16,743 17% Total Primary 23,972$ 100% 26,657$ 100% 24,934$ 100% 75,563$ 100% 27,017$ 100% 26,550$ 100% 28,396$ 100% 17,908$ 100% 99,871$ 100% Weighted Avg LTV 92 92 92 92 92 92 92 92 92 Debt-To-Income Ratio 45.01% and above 4,167$ 17% 3,269$ 12% 2,566$ 10% 10,002$ 13% 3,102$ 11% 3,071$ 12% 4,005$ 14% 3,494$ 20% 13,672$ 14% 38.01% to 45.00% 7,949 33% 9,204 35% 8,746 35% 25,899 34% 10,208 38% 9,921 37% 9,592 34% 6,008 33% 35,729 36% 38.00% and below 11,856 50% 14,184 53% 13,622 55% 39,662 53% 13,707 51% 13,558 51% 14,799 52% 8,406 47% 50,470 50% Total Primary 23,972$ 100% 26,657$ 100% 24,934$ 100% 75,563$ 100% 27,017$ 100% 26,550$ 100% 28,396$ 100% 17,908$ 100% 99,871$ 100% Weighted Avg DTI 37 36 36 36 36 36 36 37 37 (1)Includes loans with annual and split payment types. (2)Loans with unknown FICO scores are included in the 660-679 category. Primary New Insurance Written Metrics (amounts in millions) 3Q 2Q 1Q Total 2021 Total 2020 4Q 3Q 2Q 1Q Page 5
Enact Holdings, Inc. Financial Supplement Third Quarter 2021 Primary IIF % of Primary IIF Primary IIF % of Primary IIF Primary IIF % of Primary IIF Primary IIF % of Primary IIF Primary IIF % of Primary IIF Primary IIF % of Primary IIF Primary IIF % of Primary IIF Product Primary 222,464$ 100% 217,477$ 100% 210,187$ 100% 207,947$ 100% 203,062$ 100% 197,047$ 100% 187,981$ 99% Pool 771 0% 798 0% 841 0% 883 0% 928 0% 983 0% 1,034 1% Total 223,235$ 100% 218,275$ 100% 211,028$ 100% 208,830$ 100% 203,990$ 100% 198,030$ 100% 189,015$ 100% Origination Purchase 169,944$ 76% 162,832$ 75% 156,298$ 74% 157,805$ 76% 157,108$ 77% 153,434$ 78% 151,919$ 81% Refinance 52,520 24% 54,645 25% 53,889 26% 50,142 24% 45,954 23% 43,613 22% 36,062 19% Total Primary 222,464$ 100% 217,477$ 100% 210,187$ 100% 207,947$ 100% 203,062$ 100% 197,047$ 100% 187,981$ 100% Product Monthly 190,702$ 86% 185,694$ 85% 177,126$ 84% 172,558$ 83% 165,676$ 82% 158,621$ 80% 147,763$ 79% Single 29,013 13% 28,743 13% 29,653 14% 31,628 15% 33,192 16% 33,799 18% 35,165 19% Other(2) 2,749 1% 3,040 2% 3,408 2% 3,761 2% 4,194 2% 4,627 2% 5,053 2% Total Primary 222,464$ 100% 217,477$ 100% 210,187$ 100% 207,947$ 100% 203,062$ 100% 197,047$ 100% 187,981$ 100% Book Year 2004 and prior 583$ 0% 621$ 0% 663$ 0% 708$ 0% 743$ 0% 784$ 0% 820$ 0% 2005-2008 8,380 4% 9,061 4% 9,837 5% 10,614 5% 11,457 6% 12,287 6% 13,082 7% 2009-2013 1,656 1% 1,961 1% 2,394 1% 3,030 2% 3,683 2% 4,345 2% 5,023 3% 2014 2,293 1% 2,709 2% 3,176 1% 3,699 2% 4,348 2% 5,059 3% 5,779 3% 2015 5,087 2% 5,810 3% 6,729 3% 7,887 4% 9,243 5% 10,667 5% 12,133 6% 2016 10,082 4% 11,499 5% 13,213 6% 15,385 7% 18,015 9% 20,738 11% 23,177 12% 2017 10,185 5% 11,763 5% 13,817 7% 16,289 8% 19,268 9% 22,480 12% 25,893 14% 2018 10,568 5% 12,289 6% 14,618 7% 17,235 8% 20,424 10% 23,873 12% 28,084 15% 2019 24,884 11% 28,842 13% 33,430 16% 39,463 19% 45,630 22% 51,180 26% 56,193 30% 2020 75,785 34% 82,308 38% 87,599 42% 93,637 45% 70,251 35% 45,634 23% 17,797 10% 2021 72,961 33% 50,614 23% 24,711 12% - - - - - - - - Total Primary 222,464$ 100% 217,477$ 100% 210,187$ 100% 207,947$ 100% 203,062$ 100% 197,047$ 100% 187,981$ 100% (2)Includes loans with annual and split payment types. (1)Primary insurance in-force represents aggregate unpaid balance for loans the company insures. Original loan balances are primarily used to determine premiums. 1Q 2020 Primary Insurance In-Force (IIF) (1) Metrics Excludes Run-off business, which is immaterial to our results 2Q 2021 3Q 2Q 1Q 4Q 3Q (amounts in millions) Page 6
Enact Holdings, Inc. Financial Supplement Third Quarter 2021 Primary IIF % of Primary IIF Primary IIF % of Primary IIF Primary IIF % of Primary IIF Primary IIF % of Primary IIF Primary IIF % of Primary IIF Primary IIF % of Primary IIF Primary IIF % of Primary IIF FICO Scores Over 760 87,073$ 39% 83,602$ 38% 79,285$ 38% 78,488$ 38% 77,557$ 38% 75,428$ 38% 71,703$ 38% 740 - 759 35,177 16% 34,402 16% 33,607 16% 33,635 16% 33,208 17% 32,649 17% 31,215 17% 720 - 739 31,374 14% 30,964 14% 30,295 14% 30,058 14% 29,277 14% 28,637 15% 27,210 14% 700 - 719 27,371 12% 27,032 12% 26,309 13% 25,870 12% 24,723 12% 23,746 12% 22,484 12% 680 - 699 21,458 10% 21,469 10% 20,777 10% 20,140 10% 19,129 9% 18,271 9% 17,460 9% 660 - 679(3) 10,309 5% 10,191 6% 10,001 5% 9,819 5% 9,387 5% 8,781 4% 8,494 5% 640 - 659 6,009 3% 6,008 3% 5,981 3% 5,935 3% 5,756 3% 5,521 3% 5,377 3% 620 - 639 2,787 1% 2,838 1% 2,893 1% 2,902 1% 2,861 1% 2,786 1% 2,759 1% <620 906 0% 971 0% 1,039 0% 1,100 1% 1,164 1% 1,228 1% 1,279 1% Total Primary 222,464$ 100% 217,477$ 100% 210,187$ 100% 207,947$ 100% 203,062$ 100% 197,047$ 100% 187,981$ 100% Weighted Avg FICO 741 740 740 740 740 740 740 Loan-To-Value Ratio 95.01% and above 34,259$ 15% 33,657$ 15% 33,757$ 16% 34,520$ 17% 34,563$ 17% 33,483$ 17% 32,760$ 17% 90.01% to 95.00% 94,888 43% 94,307 44% 92,124 44% 92,689 45% 91,478 45% 89,035 45% 85,736 46% 85.01% to 90.00% 63,349 28% 61,234 28% 58,098 28% 56,341 27% 54,787 27% 53,794 27% 51,379 27% 85.00% and below 29,968 14% 28,279 13% 26,208 12% 24,397 11% 22,234 11% 20,735 11% 18,106 10% Total Primary 222,464$ 100% 217,477$ 100% 210,187$ 100% 207,947$ 100% 203,062$ 100% 197,047$ 100% 187,981$ 100% Weighted Avg LTV 93 93 93 93 93 93 93 Debt-To-Income Ratio 45.01% and above 31,772$ 14% 30,794$ 14% 30,225$ 14% 31,047$ 15% 31,202$ 15% 30,944$ 16% 29,644$ 16% 38.01% to 45.00% 78,302 35% 76,977 35% 74,674 36% 73,555 35% 70,751 35% 67,636 34% 64,447 34% 38.00% and below 112,390 51% 109,706 51% 105,288 50% 103,345 50% 101,109 50% 98,467 50% 93,890 50% Total Primary 222,464$ 100% 217,477$ 100% 210,187$ 100% 207,947$ 100% 203,062$ 100% 197,047$ 100% 187,981$ 100% Weighted Avg DTI 37 37 37 37 37 37 37 (3)Loans with unknown FICO scores are included in the 660-679 category. Primary Insurance In-Force (IIF) (1) Metrics 2021 2020 3Q 2Q 1Q 4Q 3Q 2Q 1Q Excludes Run-off business, which is immaterial to our results (amounts in millions) Page 7
Enact Holdings, Inc. Financial Supplement Third Quarter 2021 Primary RIF % of Primary RIF Primary RIF % of Primary RIF Primary RIF % of Primary RIF Primary RIF % of Primary RIF Primary RIF % of Primary RIF Primary RIF % of Primary RIF Primary RIF % of Primary RIF Product Primary 55,866$ 100% 54,643$ 100% 52,866$ 100% 52,475$ 100% 51,393$ 100% 49,868$ 100% 47,740$ 100% Pool 117 0% 123 0% 134 0% 146 0% 156 0% 169 0% 179 0% Total 55,983$ 100% 54,766$ 100% 53,000$ 100% 52,621$ 100% 51,549$ 100% 50,037$ 100% 47,919$ 100% Origination Purchase 44,871$ 80% 43,121$ 79% 41,396$ 78% 41,710$ 79% 41,415$ 81% 40,265$ 81% 39,655$ 83% Refinance 10,995 20% 11,522 21% 11,470 22% 10,765 21% 9,978 19% 9,603 19% 8,085 17% Total Primary 55,866$ 100% 54,643$ 100% 52,866$ 100% 52,475$ 100% 51,393$ 100% 49,868$ 100% 47,740$ 100% Product Monthly 48,495$ 87% 47,153$ 86% 45,009$ 85% 44,005$ 84% 42,361$ 82% 40,494$ 81% 37,851$ 79% Single 6,709 12% 6,766 13% 7,049 13% 7,576 14% 8,034 16% 8,267 17% 8,681 18% Other(2) 662 1% 724 1% 808 2% 894 2% 998 2% 1,107 2% 1,208 3% Total Primary 55,866$ 100% 54,643$ 100% 52,866$ 100% 52,475$ 100% 51,393$ 100% 49,868$ 100% 47,740$ 100% Book Year 2004 and prior 167$ 0% 177$ 0% 189$ 0% 202$ 0% 212$ 0% 224$ 0% 234$ 0% 2005-2008 2,142 4% 2,317 4% 2,516 5% 2,716 5% 2,932 6% 3,146 6% 3,351 7% 2009-2013 441 1% 528 1% 651 1% 832 2% 1,017 2% 1,204 2% 1,396 3% 2014 621 1% 732 1% 859 2% 999 2% 1,174 2% 1,367 3% 1,561 3% 2015 1,355 2% 1,549 3% 1,795 3% 2,104 4% 2,465 5% 2,843 6% 3,227 7% 2016 2,676 5% 3,052 6% 3,503 7% 4,063 8% 4,727 9% 5,415 11% 6,031 13% 2017 2,631 5% 3,032 6% 3,556 7% 4,180 8% 4,938 10% 5,752 12% 6,616 14% 2018 2,656 5% 3,086 6% 3,671 7% 4,322 8% 5,119 10% 5,975 12% 7,034 15% 2019 6,239 11% 7,225 13% 8,361 16% 9,840 19% 11,346 22% 12,690 25% 13,912 29% 2020 18,965 34% 20,536 37% 21,787 41% 23,217 44% 17,463 34% 11,252 23% 4,378 9% 2021 17,973 32% 12,409 23% 5,978 11% - 0% - 0% - 0% - 0% Total Primary 55,866$ 100% 54,643$ 100% 52,866$ 100% 52,475$ 100% 51,393$ 100% 49,868$ 100% 47,740$ 100% (2)Includes loans with annual and split payment types. (1)Primary risk in-force represents risk on current loan balances as provided by servicers, lenders and investors. 1Q 2020 Primary Risk In-Force (RIF) (1) Metrics Excludes Run-off business, which is immaterial to our results 2Q 2021 3Q 2Q 1Q 4Q 3Q (amounts in millions) Page 8
Enact Holdings, Inc. Financial Supplement Third Quarter 2021 Primary RIF % of Primary RIF Primary RIF % of Primary RIF Primary RIF % of Primary RIF Primary RIF % of Primary RIF Primary RIF % of Primary RIF Primary RIF % of Primary RIF Primary RIF % of Primary RIF FICO Scores Over 760 21,767$ 39% 20,908$ 38% 19,829$ 37% 19,691$ 37% 19,549$ 38% 19,046$ 38% 18,216$ 38% 740 - 759 8,824 16% 8,628 16% 8,442 16% 8,497 16% 8,424 16% 8,303 17% 7,986 17% 720 - 739 7,966 14% 7,879 14% 7,715 15% 7,673 15% 7,489 15% 7,312 15% 6,970 15% 700 - 719 6,923 12% 6,848 13% 6,678 13% 6,579 12% 6,288 12% 6,016 12% 5,688 12% 680 - 699 5,383 10% 5,385 10% 5,231 10% 5,100 10% 4,864 9% 4,629 9% 4,417 9% 660 - 679(3) 2,568 5% 2,531 5% 2,484 5% 2,442 5% 2,331 5% 2,179 4% 2,110 4% 640 - 659 1,497 3% 1,494 3% 1,485 3% 1,472 3% 1,423 3% 1,358 3% 1,322 3% 620 - 639 705 1% 720 1% 734 1% 737 1% 725 1% 707 1% 701 1% <620 233 0% 250 0% 268 0% 284 1% 300 1% 318 1% 330 1% Total Primary 55,866$ 100% 54,643$ 100% 52,866$ 100% 52,475$ 100% 51,393$ 100% 49,868$ 100% 47,740$ 100% Loan-To-Value Ratio 95.01% and above 9,490$ 17% 9,228$ 17% 9,151$ 17% 9,279$ 18% 9,196$ 18% 8,789$ 18% 8,482$ 18% 90.01% to 95.00% 27,509 49% 27,308 50% 26,637 51% 26,774 51% 26,403 51% 25,686 51% 24,703 52% 85.01% to 90.00% 15,322 28% 14,776 27% 13,997 26% 13,562 26% 13,188 26% 12,957 26% 12,414 26% 85.00% and below 3,545 6% 3,331 6% 3,081 6% 2,860 5% 2,606 5% 2,436 5% 2,141 4% Total Primary 55,866$ 100% 54,643$ 100% 52,866$ 100% 52,475$ 100% 51,393$ 100% 49,868$ 100% 47,740$ 100% Debt-To-Income Ratio 45.01% and above 8,048$ 14% 7,798$ 14% 7,643$ 14% 7,855$ 15% 7,897$ 15% 7,823$ 16% 7,503$ 16% 38.01% to 45.00% 19,773 36% 19,445 36% 18,888 36% 18,647 36% 17,966 35% 17,126 34% 16,313 34% 38.00% and below 28,045 50% 27,400 50% 26,335 50% 25,973 49% 25,530 50% 24,919 50% 23,924 50% Total Primary 55,866$ 100% 54,643$ 100% 52,866$ 100% 52,475$ 100% 51,393$ 100% 49,868$ 100% 47,740$ 100% (3)Loans with unknown FICO scores are included in the 660-679 category. Primary Risk In-Force (RIF) (1) Metrics 2021 2020 3Q 2Q 1Q 4Q 3Q 2Q 1Q Excludes Run-off business, which is immaterial to our results (amounts in millions) Page 9
Enact Holdings, Inc. Financial Supplement Third Quarter 2021 3Q 2Q 1Q 4Q 3Q 2Q 1Q Average Primary Paid Claim (1) 26.7$ 63.1$ 54.7$ 47.2$ 55.6$ 47.1$ 45.0$ Reserves: Primary direct case(2) 612,754$ 588,683$ 564,208$ 516,863$ 436,059$ 378,924$ 202,069$ All other(2) 34,909 34,838 38,704 38,162 38,229 60,194 28,269 Total Reserves 647,663$ 623,521$ 602,912$ 555,025$ 474,288$ 439,118$ 230,338$ Beginning Number of Primary Delinquencies 33,568 41,332 44,904 49,692 53,587 15,417 16,392 New delinquencies 7,427 6,862 10,053 11,923 16,664 48,373 8,114 Delinquency cures (11,746) (14,473) (13,478) (16,548) (20,404) (9,795) (8,649) Paid claims (343) (143) (134) (152) (152) (404) (440) Rescissions and claim denials (2) (10) (13) (11) (3) (4) - Ending Number of Primary Delinquencies 28,904 33,568 41,332 44,904 49,692 53,587 15,417 Primary delinquency rate 3.08% 3.60% 4.48% 4.86% 5.44% 5.98% 1.78% Average Reserve Per Primary Delinquency (3) 21.2$ 17.5$ 13.7$ 11.5$ 8.8$ 7.1$ 13.1$ Beginning Direct Primary Case Reserves 588,683$ 564,208$ 516,863$ 436,059$ 378,924$ 202,069$ 204,749$ Paid claims (8,293) (7,377) (5,933) (6,466) (7,597) (18,483) (19,843) Increase in reserves 32,364 31,851 53,278 87,270 64,732 195,338 17,163 Ending Reserves 612,754$ 588,683$ 564,208$ 516,863$ 436,059$ 378,924$ 202,069$ 20202021 Delinquency Metrics (dollar amounts in thousands) (1) Average paid claim in the third quarter of 2021 includes payment in relation to an agreement on non-performing loans. (2) Primary direct case excludes loss adjustment expenses (LAE), pool, incurred but not reported (IBNR) and reinsurance reserves. Other includes LAE, IBNR, pool, and reinsurance reserves. (3) Primary direct case reserves divided by primary delinquency count. Excludes Run-off business, which is immaterial to our results Page 10
Enact Holdings, Inc. Financial Supplement Third Quarter 2021 Percentage Reserved by Payment Status Delinquencies Direct Case Reserves Risk In-Force Reserves as % of RIF 3 payments or less in default 6,192 32,548$ 319,466$ 10% 4 - 11 payments in default 9,021 127,583 528,465 24% 12 payments or more in default 13,691 452,623 813,386 56% Total 28,904 612,754$ 1,661,317$ 37% Percentage Reserved by Payment Status Delinquencies Direct Case Reserves Risk In-Force Reserves as % of RIF 3 payments or less in default 10,484 43,361$ 548,704$ 8% 4 - 11 payments in default 30,324 330,848 1,853,423 18% 12 payments or more in default 4,096 142,654 204,228 70% Total 44,904 516,863$ 2,606,355$ 20% Percentage Reserved by Payment Status Delinquencies Direct Case Reserves Risk In-Force Reserves as % of RIF 3 payments or less in default 13,904 48,730$ 763,139$ 6% 4 - 11 payments in default 32,366 264,201 2,013,517 13% 12 payments or more in default 3,422 123,128 168,492 73% Total 49,692 436,059$ 2,945,148$ 15% September 30, 2020 December 31, 2020 September 30, 2021 Missed Payment Status Tables (dollar amounts in thousands) Excludes Run-off business, which is immaterial to our results Page 11
Enact Holdings, Inc. Financial Supplement Third Quarter 2021 Top 10 States % RIF % Case Reserves (1) Delq Rate Top 10 MSAs / Metro Divisions % RIF % Case Reserves (1) Delq Rate Book Year RIF & Losses % RIF % Case Reserves (1) Delq Rate Cum Delq Rate (2) California 11% 11.0% 3.91% Chicago-Naperville, IL Metro Division 3% 4% 4.38% 2004 and prior 0% 3% 14.96% 3.61% Texas 8% 8.0% 3.47% Phoenix, AZ MSA 3% 2% 2.64% 2005-2008 4% 24% 11.14% 18.44% Florida (3) 7% 9.0% 3.73% New York, NY Metro Division 3% 8% 6.48% 2009-2013 1% 3% 6.03% 0.78% New York (3) 5% 12.0% 4.41% Atlanta, GA MSA 2% 3% 4.00% 2014 1% 3% 5.81% 1.12% Illinois (3) 5% 6.0% 3.53% Washington-Arlington, DC Metro Division 2% 2% 3.88% 2015 2% 5% 4.67% 1.22% Michigan 4% 2.0% 2.01% Houston, TX MSA 2% 3% 4.51% 2016 5% 8% 4.31% 1.45% Arizona 4% 2.0% 2.64% Riverside-San Bernardino CA MSA 2% 2% 4.42% 2017 5% 10% 5.31% 1.89% North Carolina 4% 2.0% 2.54% Los Angeles-Long Beach, CA Metro Division 2% 3% 4.98% 2018 5% 13% 6.51% 2.29% Pennsylvania (3) 3% 3.0% 2.75% Dallas 2% 2% 3.02% 2019 11% 18% 4.43% 2.14% Washington 3% 3.0% 3.65% Nassau County, NY 2% 4% 6.93% 2020 34% 12% 1.43% 1.16% All Other States (4) 46% 42.0% 2.80% All Other MSAs 77% 67% 2.79% 2021 32% 1% 0.24% 0.23% Total 100% 100% 3.08% Total 100% 100% 3.08% Total 100% 100% 3.08% 4.50% Top 10 States % RIF % Case Reserves (1) Delq Rate Top 10 MSAs / Metro Divisions % RIF % Case Reserves (1) Delq Rate Book Year RIF & Losses % RIF % Case Reserves (1) Delq Rate Cum Delq Rate (2) California 11% 11% 6.20% Chicago-Naperville, IL Metro Division 3% 4% 6.36% 2004 and prior 0% 3% 16.82% 3.62% Texas 8% 8% 5.82% Phoenix, AZ MSA 3% 2% 4.63% 2005-2008 5% 25% 13.35% 18.79% Florida (3) 7% 10% 6.92% New York, NY Metro Division 3% 8% 10.25% 2009-2013 2% 2% 5.44% 0.91% Illinois (3) 5% 6% 5.21% Atlanta, GA MSA 2% 3% 6.68% 2014 2% 3% 6.06% 1.57% New York (3) 5% 11% 6.92% Washington-Arlington, DC Metro Division 2% 2% 6.09% 2015 4% 5% 5.66% 1.97% Michigan 4% 2% 2.93% Houston, TX MSA 2% 3% 7.59% 2016 7% 9% 5.46% 2.49% Washington 4% 3% 5.37% Riverside-San Bernardino CA MSA 2% 2% 7.08% 2017 8% 12% 6.51% 3.34% Pennsylvania (3) 4% 3% 4.11% Los Angeles-Long Beach, CA Metro Division 2% 2% 7.57% 2018 8% 14% 7.70% 4.01% North Carolina 4% 2% 3.84% Dallas 2% 2% 5.10% 2019 19% 19% 5.60% 3.93% Arizona 3% 2% 4.54% Seattle-Bellevue, WA Metro Division 2% 2% 6.33% 2020 45% 8% 1.09% 1.04% All Other States (4) 45% 42% 4.32% All Other MSAs 77% 70% 4.43% 2021 Total 100% 100% 4.86% Total 100% 100% 4.86% Total 100% 100% 4.86% 4.86% Top 10 States % RIF % Case Reserves (1) Delq Rate Top 10 MSAs / Metro Divisions % RIF % Case Reserves (1) Delq Rate Book Year RIF & Losses % RIF % Case Reserves (1) Delq Rate Cum Delq Rate (2) California 11% 11% 7.13% Chicago-Naperville, IL Metro Division 3% 4% 7.30% 2004 and prior 0% 3% 16.85% 3.62% Texas 7% 7% 6.57% Phoenix, AZ MSA 3% 2% 5.09% 2005-2008 6% 28% 13.22% 18.86% Florida (3) 7% 10% 8.04% New York, NY Metro Division 3% 8% 11.37% 2009-2013 2% 2% 5.14% 0.95% Illinois (3) 5% 6% 5.90% Atlanta, GA MSA 2% 3% 7.57% 2014 2% 3% 5.80% 1.68% New York (3) 5% 12% 7.78% Washington-Arlington, DC Metro Division 2% 2% 7.06% 2015 5% 5% 5.56% 2.19% Michigan 4% 2% 3.53% Houston, TX MSA 2% 3% 8.25% 2016 9% 9% 5.53% 2.85% Washington 4% 3% 5.60% Riverside-San Bernardino CA MSA 2% 2% 8.08% 2017 10% 12% 6.59% 3.86% Pennsylvania (3) 4% 3% 4.52% Los Angeles-Long Beach, CA Metro Division 2% 2% 8.88% 2018 10% 14% 7.73% 4.63% North Carolina 3% 3% 4.47% Seattle-Bellevue, WA Metro Division 2% 1% 6.31% 2019 22% 18% 5.79% 4.56% Arizona 3% 2% 5.01% Dallas 2% 2% 6.14% 2020 34% 6% 1.24% 1.21% All Other States (4) 47% 41% 4.75% All Other MSAs 77% 71% 4.95% 2021 Total 100% 100% 5.44% Total 100% 100% 5.44% Total 100% 100% 5.44% 4.99% (1) Direct primary case reserves exclude loss adjustment expenses, incurred but not reported and reinsurance reserves. (2) Calculated as the sum of the number of policies where claims were ever paid to date and number of policies for loans currently in default divided by policies ever in-force. (3) Jurisdiction predominantly uses a judicial foreclosure process, which generally increases the amount of time it takes for a foreclosure to be completed. (4) Includes the District of Columbia. Delinquency Performance December 31, 2020 September 30, 2021 September 30, 2020 Excludes Run-off business, which is immaterial to our results Page 12
Enact Holdings, Inc. Financial Supplement Third Quarter 2021 Carrying Amount % of Total Carrying Amount % of Total Carrying Amount % of Total Carrying Amount % of Total Carrying Amount % of Total Carrying Amount % of Total Carrying Amount % of Total Fixed Maturity Securities: U.S. Treasuries 65,117$ 1% 65,625$ 1% 70,832$ 1% 138,224$ 3% 73,199$ 1% 90,009$ 2% 93,464$ 2% Municipals 459,783 9% 408,317 8% 300,104 6% 187,377 4% 174,908 4% 130,267 3% 19,671 1% Non-U.S. Government 22,758 0% 22,950 1% 30,415 1% 31,031 0% 30,843 1% 30,765 1% 34,405 1% U.S. Corporate 2,948,106 55% 2,891,598 55% 2,844,775 56% 2,888,625 57% 2,864,792 60% 2,803,254 64% 2,504,890 62% Non-U.S. Corporate 712,603 13% 692,068 13% 679,302 13% 607,669 12% 599,526 12% 542,871 12% 451,194 11% Other asset-backed 1,167,700 22% 1,175,909 22% 1,180,700 23% 1,193,670 24% 1,065,111 22% 786,960 18% 952,338 23% Total available-for-sale fixed maturity securities 5,376,067$ 100% 5,256,467$ 100% 5,106,128$ 100% 5,046,596$ 100% 4,808,379$ 100% 4,384,126$ 100% 4,055,962$ 100% Fixed Maturity Securities - Credit Quality NRSRO(1) Designation AAA 485,739$ 9% 483,513$ 9% 475,369$ 9% 572,338$ 11% 442,645$ 9% 301,769$ 7% 419,919$ 10% AA 898,158 17% 841,282 16% 777,345 15% 635,984 13% 591,292 12% 537,294 12% 502,076 12% A 1,829,844 34% 1,763,010 34% 1,786,601 35% 1,791,795 36% 1,774,870 37% 1,618,837 37% 1,486,987 37% BBB 2,004,994 37% 2,013,940 38% 1,921,999 38% 1,927,775 38% 1,880,618 39% 1,814,443 41% 1,569,017 39% BB & Lower 157,332 3% 154,722 3% 144,814 3% 118,704 2% 118,954 3% 111,783 3% 77,964 2% Total fixed maturity securities 5,376,067$ 100% 5,256,467$ 100% 5,106,128$ 100% 5,046,596$ 100% 4,808,379$ 100% 4,384,126$ 100% 4,055,963$ 100% Average Duration 3.7 3.6 3.6 3.4 3.5 3.5 3.3 Average Yield 2.7% 2.8% 2.8% 2.8% 3.0% 3.1% 3.2% (1)Nationally Recognized Statistical Rating Organizations. June 30, 2020 March 31, 2020 Composition of Investments at Fair Value (amounts in thousands) December 31, 2020March 31, 2021June 30, 2021September 30, 2021 September 30, 2020 Page 13
Enact Holdings, Inc. Financial Supplement Third Quarter 2021 2019 XOL -1 2019 XOL -2 2019 ILN 2020 XOL 2020 ILN 2021-1 ILN 2021-2 ILN 2021-3 ILN 2021 XOL Full Year Full Year 1/19-9/19 Full Year 1/20-8/20 1/14-12/18, 4Q'19 9/20-12/20 1/21-6/21 Full Year At Closing ($MM) Initial CRT Risk In Force $14,456 $14,456 $10,563 $23,047 $14,909 $14,142 $8,384 $12,141 $17,803 Initial Reinsurance Amount $172 $5 $303 $168 $350 $495 $303 $372 $187 Initial First Loss Retention Layer $434 $361 $238 $691 $522 $212 $189 $304 $534 Initial Attachment % (1) 3.00% 2.50% 2.25% 3.00% 3.50% 1.50% 2.25% 2.50% 3.00% Initial Detachment % (1) 6.80% 3.00% 6.75% 7.00% 7.00% 5.00% 7.00% 6.75% 7.00% % Of Covered Loss Tier Reinsured 31.2% 7.2% 63.7% 18.3% 67.0% 100.0% 76.0% 72.0% 26.7% Commencement Date 07/01/19 07/01/19 11/22/19 01/01/20 10/22/20 03/02/21 04/16/21 09/02/21 01/01/21 Termination Date 12/31/29 12/31/29 11/26/29 12/31/30 10/25/30 08/25/33 10/25/33 06/30/31 12/31/31 Optional Call Date 12/31/26 12/31/26 11/25/26 06/30/28 10/25/27 02/25/26 04/16/28 06/30/28 07/01/28 Clean-Up Call 10% 10% 10% 10% 10% 10% 10% 10% 10% As of June 30, 2021 ($MM) Current CRT Risk In Force $6,175 $6,175 $3,994 $18,824 $10,654 $8,704 $7,707 $11,830 $17,803 Current Reinsured Amount $32 $5 $128 $132 $233 $366 $303 $372 $187 PMIERs Required Asset Credit (2) $32 $5 $75 $127 $177 $335 $290 $372 $185 Current Attachment % (1) 7.00% 5.83% 5.93% 3.67% 4.90% 2.43% 2.45% 2.57% 3.00% Current Detachment % (1) 8.69% 6.95% 10.96% 7.52% 8.16% 6.64% 7.61% 6.93% 6.93% Claims Paid $1 $1 $1 $ - $ - $ - $ - $ - $ - Incurred Losses Ever To Date (3) $110 $110 $78 $71 $29 $15 $8 $3 $6 Remaining First Loss Retention Layer $432 $360 $237 $691 $522 $212 $189 $304 $534 Reinsurer Claims Paid $ - $ - $ - $ - $ - $ - $ - $ - $ - (1) Attachment % And Detachment % Are The Aggregate Loss Amounts As A Percentage Of Risk In Force At Which The Reinsurer Begins And Stops Paying Claims Under The Policy. (2) Current PMIERs Required Asset Credit Considers The Counterparty Credit Haircut. (3) Incurred Losses Ever To Date Shown Does Not Include IBNR Or Loss Adjustment Expenses; Definitions: CRT = Credit Risk Transfer; RIF = Risk In Force; XOL = Excess Of Loss; ILN = Insurance Linked Note Credit Risk Transfer Transaction Summary (amounts in millions) Page 14
Enact Holdings, Inc. Financial Supplement Third Quarter 2021 3Q 2Q 1Q 4Q 3Q 2Q 1Q COMBINED STAT: Statutory policyholders' surplus 1,558$ 1,567$ 1,557$ 1,555$ 1,556$ 1,539$ 1,662$ Contingency reserves 2,914 2,783 2,652 2,518 2,408 2,277 2,149 Combined statutory capital 4,472$ 4,350$ 4,209$ 4,073$ 3,964$ 3,816$ 3,811$ Adjusted RIF(1) 52,752$ 51,436$ 49,347$ 49,104$ 47,847$ 45,783$ 46,362$ Combined risk-to-capital ratio 11.8 11.8 11.7 12.1 12.1 12.0 12.2 GMICO(2) STAT: Statutory policyholders' surplus 1,508$ 1,487$ 1,477$ 1,475$ 1,477$ 1,461$ 1,585$ Contingency reserves 2,913 2,782 2,652 2,518 2,408 2,276 2,149 GMICO statutory capital 4,421$ 4,269$ 4,129$ 3,993$ 3,885$ 3,737$ 3,734$ Adjusted RIF(1) 52,608$ 51,312$ 49,249$ 49,021$ 47,782$ 45,737$ 46,333$ GMICO risk-to-capital ratio 11.9 12.0 11.9 12.3 12.3 12.2 12.4 PMIERs Available Assets(3) 5,126$ 4,926$ 4,769$ 4,588$ 4,451$ 4,218$ 3,974$ PMIERs Gross Required Assets(3) (5,006) (5,151) (5,302) (5,341) (5,371) (5,043) (3,698) PMIERs Reinsurance Credit 1,597 1,406 1,285 936 777 1,043 828 PMIERs COVID-19 Haircut 570 760 1,012 1,046 1,217 1,057 67 PMIERs Net Required Assets (2,839)$ (2,985)$ (3,005)$ (3,359)$ (3,377)$ (2,943)$ (2,803)$ Available Assets Above PMIERs Requirements(3) 2,287$ 1,941$ 1,764$ 1,229$ 1,074$ 1,275$ 1,171$ PMIERs Sufficiency Ratio(3) 181% 165% 159% 137% 132% 143% 142% (1) Adjusted RIF for purposes of calculating combined statutory RTC differs from RIF presented elsewhere in this financial supplement. In accordance with NCDOI requirements, adjusted RIF excludes delinquent policies. Capital & PMIERs (dollar amounts in millions) (2)Genworth Mortgage Insurance Corporation (GMICO), the company's principal U.S. mortgage insurance subsidiary. (3)The PMIERs sufficiency ratio is calculated as available assets divided by required assets as defined within PMIERs. The current period PMIERs sufficiency ratio is an estimate due to the timing of the PMIERs filing and does not take into consideration the impact of restrictions recently imposed by the government-sponsored enterprises (GSEs). The GSEs have imposed certain capital restrictions on the company which remain in effect until certain conditions are met. These restrictions currently require GMICO to maintain 115% of published PMIERs minimum required assets among other restrictions. 20202021 Page 15