act-20220630
000182352912/312022Q2FALSE00018235292022-01-012022-06-3000018235292022-08-01xbrli:shares00018235292022-06-30iso4217:USD00018235292021-12-31iso4217:USDxbrli:shares00018235292022-04-012022-06-3000018235292021-04-012021-06-3000018235292021-01-012021-06-300001823529us-gaap:CommonStockMember2022-03-310001823529us-gaap:AdditionalPaidInCapitalMember2022-03-310001823529us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-310001823529us-gaap:RetainedEarningsMember2022-03-3100018235292022-03-310001823529us-gaap:RetainedEarningsMember2022-04-012022-06-300001823529us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-04-012022-06-300001823529us-gaap:AdditionalPaidInCapitalMember2022-04-012022-06-300001823529us-gaap:CommonStockMember2022-06-300001823529us-gaap:AdditionalPaidInCapitalMember2022-06-300001823529us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-06-300001823529us-gaap:RetainedEarningsMember2022-06-300001823529us-gaap:CommonStockMember2021-03-310001823529us-gaap:AdditionalPaidInCapitalMember2021-03-310001823529us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-310001823529us-gaap:RetainedEarningsMember2021-03-3100018235292021-03-310001823529us-gaap:RetainedEarningsMember2021-04-012021-06-300001823529us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-04-012021-06-300001823529us-gaap:AdditionalPaidInCapitalMember2021-04-012021-06-300001823529us-gaap:CommonStockMember2021-06-300001823529us-gaap:AdditionalPaidInCapitalMember2021-06-300001823529us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-06-300001823529us-gaap:RetainedEarningsMember2021-06-3000018235292021-06-300001823529us-gaap:CommonStockMember2021-12-310001823529us-gaap:AdditionalPaidInCapitalMember2021-12-310001823529us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310001823529us-gaap:RetainedEarningsMember2021-12-310001823529us-gaap:RetainedEarningsMember2022-01-012022-06-300001823529us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-06-300001823529us-gaap:AdditionalPaidInCapitalMember2022-01-012022-06-300001823529us-gaap:CommonStockMember2020-12-310001823529us-gaap:AdditionalPaidInCapitalMember2020-12-310001823529us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310001823529us-gaap:RetainedEarningsMember2020-12-3100018235292020-12-310001823529us-gaap:AccumulatedOtherComprehensiveIncomeMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2020-12-310001823529srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:RetainedEarningsMember2020-12-310001823529us-gaap:RetainedEarningsMember2021-01-012021-06-300001823529us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-06-300001823529us-gaap:AdditionalPaidInCapitalMember2021-01-012021-06-3000018235292021-05-030001823529act:GenworthHoldingsIncMember2021-05-030001823529us-gaap:IPOMember2021-09-152021-09-150001823529us-gaap:IPOMember2021-09-150001823529us-gaap:PrivatePlacementMember2021-09-152021-09-150001823529us-gaap:PrivatePlacementMember2021-09-1500018235292021-09-150001823529us-gaap:OverAllotmentOptionMember2021-09-152021-09-150001823529us-gaap:OverAllotmentOptionMember2021-09-162021-09-160001823529act:TheOfferingMember2021-09-152021-09-20act:state0001823529us-gaap:FixedMaturitiesMember2022-04-012022-06-300001823529us-gaap:FixedMaturitiesMember2021-04-012021-06-300001823529us-gaap:FixedMaturitiesMember2022-01-012022-06-300001823529us-gaap:FixedMaturitiesMember2021-01-012021-06-300001823529act:CashCashEquivalentsAndShortTermInvestmentsMember2022-04-012022-06-300001823529act:CashCashEquivalentsAndShortTermInvestmentsMember2021-04-012021-06-300001823529act:CashCashEquivalentsAndShortTermInvestmentsMember2022-01-012022-06-300001823529act:CashCashEquivalentsAndShortTermInvestmentsMember2021-01-012021-06-300001823529us-gaap:ForeignCorporateDebtSecuritiesMember2021-03-310001823529us-gaap:ForeignCorporateDebtSecuritiesMember2021-04-012021-06-300001823529us-gaap:ForeignCorporateDebtSecuritiesMember2021-06-300001823529us-gaap:ForeignCorporateDebtSecuritiesMember2020-12-310001823529us-gaap:ForeignCorporateDebtSecuritiesMember2021-01-012021-06-300001823529us-gaap:FixedMaturitiesMember2021-01-012021-12-310001823529us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-03-310001823529us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-03-310001823529us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-04-012022-06-300001823529us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-04-012021-06-300001823529us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-06-300001823529us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-06-300001823529us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-12-310001823529us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2020-12-310001823529us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2021-12-310001823529us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2020-12-310001823529us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-01-012022-06-300001823529us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-01-012021-06-300001823529us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember2022-06-300001823529us-gaap:USStatesAndPoliticalSubdivisionsMember2022-06-300001823529us-gaap:ForeignGovernmentDebtSecuritiesMember2022-06-300001823529us-gaap:DomesticCorporateDebtSecuritiesMember2022-06-300001823529us-gaap:ForeignCorporateDebtSecuritiesMember2022-06-300001823529us-gaap:AssetBackedSecuritiesMember2022-06-300001823529us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember2021-12-310001823529us-gaap:USStatesAndPoliticalSubdivisionsMember2021-12-310001823529us-gaap:ForeignGovernmentDebtSecuritiesMember2021-12-310001823529us-gaap:DomesticCorporateDebtSecuritiesMember2021-12-310001823529us-gaap:ForeignCorporateDebtSecuritiesMember2021-12-310001823529us-gaap:AssetBackedSecuritiesMember2021-12-31act:security0001823529us-gaap:FinancialServicesSectorMember2022-06-30xbrli:pure0001823529act:NonCyclicalConsumerSectorMember2022-06-300001823529act:TechnologyAndCommunicationsSectorMember2022-06-300001823529us-gaap:DepositsMember2022-06-300001823529us-gaap:DepositsMember2021-12-310001823529us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001823529us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2022-06-300001823529us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2022-06-300001823529us-gaap:FairValueInputsLevel2Memberact:PricingServicesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentDebtSecuritiesMember2022-06-300001823529us-gaap:FairValueInputsLevel2Memberact:PricingServicesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2022-06-300001823529us-gaap:FairValueInputsLevel2Memberact:PricingServicesMemberus-gaap:ForeignGovernmentDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-06-300001823529us-gaap:FairValueInputsLevel2Memberact:PricingServicesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:DomesticCorporateDebtSecuritiesMember2022-06-300001823529us-gaap:FairValueInputsLevel2Memberact:PricingServicesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignCorporateDebtSecuritiesMember2022-06-300001823529us-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueInputsLevel2Memberact:PricingServicesMemberus-gaap:FairValueMeasurementsRecurringMember2022-06-300001823529us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberact:ValuationTechniqueInternalModelsMemberus-gaap:DomesticCorporateDebtSecuritiesMember2022-06-300001823529us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberact:ValuationTechniqueInternalModelsMemberus-gaap:ForeignCorporateDebtSecuritiesMember2022-06-300001823529us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberact:ValuationTechniqueBrokerQuotesMember2022-06-300001823529us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberact:ValuationTechniqueInternalModelsMember2022-06-300001823529us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentDebtSecuritiesMember2022-06-300001823529us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentDebtSecuritiesMember2022-06-300001823529us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentDebtSecuritiesMember2022-06-300001823529us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentDebtSecuritiesMember2022-06-300001823529us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2022-06-300001823529us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2022-06-300001823529us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2022-06-300001823529us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2022-06-300001823529us-gaap:ForeignGovernmentDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-06-300001823529us-gaap:FairValueInputsLevel1Memberus-gaap:ForeignGovernmentDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-06-300001823529us-gaap:FairValueInputsLevel2Memberus-gaap:ForeignGovernmentDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-06-300001823529us-gaap:FairValueInputsLevel3Memberus-gaap:ForeignGovernmentDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-06-300001823529us-gaap:FairValueMeasurementsRecurringMemberus-gaap:DomesticCorporateDebtSecuritiesMember2022-06-300001823529us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:DomesticCorporateDebtSecuritiesMember2022-06-300001823529us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:DomesticCorporateDebtSecuritiesMember2022-06-300001823529us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:DomesticCorporateDebtSecuritiesMember2022-06-300001823529us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignCorporateDebtSecuritiesMember2022-06-300001823529us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignCorporateDebtSecuritiesMember2022-06-300001823529us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignCorporateDebtSecuritiesMember2022-06-300001823529us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignCorporateDebtSecuritiesMember2022-06-300001823529us-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-06-300001823529us-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2022-06-300001823529us-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2022-06-300001823529us-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-06-300001823529us-gaap:FairValueMeasurementsRecurringMember2022-06-300001823529us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-06-300001823529us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentDebtSecuritiesMember2021-12-310001823529us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentDebtSecuritiesMember2021-12-310001823529us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentDebtSecuritiesMember2021-12-310001823529us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentDebtSecuritiesMember2021-12-310001823529us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2021-12-310001823529us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2021-12-310001823529us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2021-12-310001823529us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2021-12-310001823529us-gaap:ForeignGovernmentDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001823529us-gaap:FairValueInputsLevel1Memberus-gaap:ForeignGovernmentDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001823529us-gaap:FairValueInputsLevel2Memberus-gaap:ForeignGovernmentDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001823529us-gaap:FairValueInputsLevel3Memberus-gaap:ForeignGovernmentDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001823529us-gaap:FairValueMeasurementsRecurringMemberus-gaap:DomesticCorporateDebtSecuritiesMember2021-12-310001823529us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:DomesticCorporateDebtSecuritiesMember2021-12-310001823529us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:DomesticCorporateDebtSecuritiesMember2021-12-310001823529us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:DomesticCorporateDebtSecuritiesMember2021-12-310001823529us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignCorporateDebtSecuritiesMember2021-12-310001823529us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignCorporateDebtSecuritiesMember2021-12-310001823529us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignCorporateDebtSecuritiesMember2021-12-310001823529us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignCorporateDebtSecuritiesMember2021-12-310001823529us-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001823529us-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001823529us-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001823529us-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001823529us-gaap:FairValueMeasurementsRecurringMember2021-12-310001823529us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001823529us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001823529us-gaap:DomesticCorporateDebtSecuritiesMember2022-03-310001823529us-gaap:DomesticCorporateDebtSecuritiesMember2022-04-012022-06-300001823529us-gaap:DomesticCorporateDebtSecuritiesMember2022-06-300001823529us-gaap:ForeignCorporateDebtSecuritiesMember2022-03-310001823529us-gaap:ForeignCorporateDebtSecuritiesMember2022-04-012022-06-300001823529us-gaap:ForeignCorporateDebtSecuritiesMember2022-06-300001823529us-gaap:AssetBackedSecuritiesMember2022-03-310001823529us-gaap:AssetBackedSecuritiesMember2022-04-012022-06-300001823529us-gaap:AssetBackedSecuritiesMember2022-06-300001823529us-gaap:DomesticCorporateDebtSecuritiesMember2021-03-310001823529us-gaap:DomesticCorporateDebtSecuritiesMember2021-04-012021-06-300001823529us-gaap:DomesticCorporateDebtSecuritiesMember2021-06-300001823529us-gaap:ForeignCorporateDebtSecuritiesMember2021-03-310001823529us-gaap:ForeignCorporateDebtSecuritiesMember2021-04-012021-06-300001823529us-gaap:ForeignCorporateDebtSecuritiesMember2021-06-300001823529us-gaap:AssetBackedSecuritiesMember2021-03-310001823529us-gaap:AssetBackedSecuritiesMember2021-04-012021-06-300001823529us-gaap:AssetBackedSecuritiesMember2021-06-300001823529us-gaap:DomesticCorporateDebtSecuritiesMember2021-12-310001823529us-gaap:DomesticCorporateDebtSecuritiesMember2022-01-012022-06-300001823529us-gaap:ForeignCorporateDebtSecuritiesMember2021-12-310001823529us-gaap:ForeignCorporateDebtSecuritiesMember2022-01-012022-06-300001823529us-gaap:AssetBackedSecuritiesMember2021-12-310001823529us-gaap:AssetBackedSecuritiesMember2022-01-012022-06-300001823529us-gaap:DomesticCorporateDebtSecuritiesMember2020-12-310001823529us-gaap:DomesticCorporateDebtSecuritiesMember2021-01-012021-06-300001823529us-gaap:ForeignCorporateDebtSecuritiesMember2020-12-310001823529us-gaap:ForeignCorporateDebtSecuritiesMember2021-01-012021-06-300001823529us-gaap:AssetBackedSecuritiesMember2020-12-310001823529us-gaap:AssetBackedSecuritiesMember2021-01-012021-06-300001823529us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberact:ValuationTechniqueInternalModelsMemberus-gaap:DomesticCorporateDebtSecuritiesMember2022-06-300001823529us-gaap:MeasurementInputCreditSpreadMemberus-gaap:FairValueInputsLevel3Memberact:ValuationTechniqueInternalModelsMembersrt:MinimumMemberus-gaap:DomesticCorporateDebtSecuritiesMember2022-06-300001823529us-gaap:MeasurementInputCreditSpreadMemberus-gaap:FairValueInputsLevel3Memberact:ValuationTechniqueInternalModelsMembersrt:MaximumMemberus-gaap:DomesticCorporateDebtSecuritiesMember2022-06-300001823529us-gaap:MeasurementInputCreditSpreadMemberus-gaap:FairValueInputsLevel3Memberact:ValuationTechniqueInternalModelsMembersrt:WeightedAverageMemberus-gaap:DomesticCorporateDebtSecuritiesMember2022-06-300001823529us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberact:ValuationTechniqueInternalModelsMemberus-gaap:ForeignCorporateDebtSecuritiesMember2022-06-300001823529us-gaap:MeasurementInputCreditSpreadMemberus-gaap:FairValueInputsLevel3Memberact:ValuationTechniqueInternalModelsMembersrt:MinimumMemberus-gaap:ForeignCorporateDebtSecuritiesMember2022-06-300001823529us-gaap:MeasurementInputCreditSpreadMemberus-gaap:FairValueInputsLevel3Memberact:ValuationTechniqueInternalModelsMemberus-gaap:ForeignCorporateDebtSecuritiesMembersrt:MaximumMember2022-06-300001823529us-gaap:MeasurementInputCreditSpreadMemberus-gaap:FairValueInputsLevel3Memberact:ValuationTechniqueInternalModelsMemberus-gaap:ForeignCorporateDebtSecuritiesMembersrt:WeightedAverageMember2022-06-300001823529us-gaap:CarryingReportedAmountFairValueDisclosureMember2022-06-300001823529us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-06-300001823529us-gaap:CarryingReportedAmountFairValueDisclosureMember2021-12-310001823529us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-12-310001823529act:TriangleRe20213LtdMember2021-09-022021-09-020001823529act:TriangleRe20212LtdMember2021-04-162021-04-160001823529act:TriangleRe20211LtdMember2021-03-022021-03-020001823529act:NewInsuranceWrittenMember2022-03-242022-03-240001823529act:NewInsuranceWrittenMember2022-01-272022-01-270001823529act:NewInsuranceWrittenMember2021-02-042021-02-040001823529act:SeniorNotesDue2025Memberus-gaap:SeniorNotesMember2020-12-310001823529act:SeniorNotesDue2025Memberus-gaap:SeniorNotesMember2022-06-300001823529act:SeniorNotesDue2025Memberus-gaap:SeniorNotesMember2021-12-310001823529us-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMember2022-06-302022-06-300001823529us-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMember2022-06-300001823529act:CorporateExpensesMemberact:GenworthHoldingsIncMember2022-04-012022-06-300001823529act:CorporateExpensesMemberact:GenworthHoldingsIncMember2021-04-012021-06-300001823529act:CorporateExpensesMemberact:GenworthHoldingsIncMember2022-01-012022-06-300001823529act:CorporateExpensesMemberact:GenworthHoldingsIncMember2021-01-012021-06-300001823529act:GenworthHoldingsIncMemberact:InvestmentExpensesMember2022-04-012022-06-300001823529act:GenworthHoldingsIncMemberact:InvestmentExpensesMember2021-04-012021-06-300001823529act:GenworthHoldingsIncMemberact:InvestmentExpensesMember2022-01-012022-06-300001823529act:GenworthHoldingsIncMemberact:InvestmentExpensesMember2021-01-012021-06-300001823529act:InformationTechnologyAndAdministrativeServicesMemberact:GenworthHoldingsIncMember2022-04-012022-06-300001823529act:InformationTechnologyAndAdministrativeServicesMemberact:GenworthHoldingsIncMember2021-04-012021-06-300001823529act:InformationTechnologyAndAdministrativeServicesMemberact:GenworthHoldingsIncMember2022-01-012022-06-300001823529act:InformationTechnologyAndAdministrativeServicesMemberact:GenworthHoldingsIncMember2021-01-012021-06-300001823529act:GenworthHoldingsIncMember2022-06-300001823529act:GenworthHoldingsIncMember2021-12-310001823529us-gaap:AccumulatedTranslationAdjustmentMember2022-03-310001823529us-gaap:AccumulatedTranslationAdjustmentMember2022-04-012022-06-300001823529us-gaap:AccumulatedTranslationAdjustmentMember2022-06-300001823529us-gaap:AccumulatedTranslationAdjustmentMember2021-03-310001823529us-gaap:AccumulatedTranslationAdjustmentMember2021-04-012021-06-300001823529us-gaap:AccumulatedTranslationAdjustmentMember2021-06-300001823529us-gaap:AccumulatedTranslationAdjustmentMember2021-12-310001823529us-gaap:AccumulatedTranslationAdjustmentMember2022-01-012022-06-300001823529us-gaap:AccumulatedTranslationAdjustmentMember2020-12-310001823529us-gaap:AccumulatedTranslationAdjustmentMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2020-12-310001823529us-gaap:AccumulatedTranslationAdjustmentMember2021-01-012021-06-300001823529us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-04-012022-06-300001823529us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-04-012021-06-300001823529us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-01-012022-06-300001823529us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-01-012021-06-30

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2022
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For transition period from    to
Commission File Number 001-40399
https://cdn.kscope.io/99b81f3741b6ff441189b7e5b2e69d92-act-20220630_g1.gif
Enact Holdings, Inc.
(Exact name of registrant as specified in its charter)
Delaware46-1579166
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification Number)
8325 Six Forks Road
Raleigh, North Carolina 27615
(919) 846-4100
(Address, including zip code, and telephone number, including area code, of registrant’s principal executive offices)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common Stock, par value $0.01 per shareACTThe Nasdaq Stock Market
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YesNo
Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files). YesNo
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filer
Non-accelerated filerSmaller reporting company
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 7(a)(2)(B) of the Securities Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act): YesNo
As of August 1, 2022, there were 162,842,614 shares of Common Stock, par value $0.01 per share, outstanding.



TABLE OF CONTENTS
Page
1


Cautionary Note Regarding Forward-Looking Statements
This Quarterly Report on Form 10-Q, including Management’s Discussion and Analysis of Financial Condition and Results of Operations, 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 quarterly report.
Although Enact Holdings, Inc. (the “Company”) 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. Factors or events that we cannot predict, including the following, may cause our actual results to differ from those expressed in forward-looking statements:
uncertainty around COVID-19 and its variants or the effects of government and other measures seeking to contain its spread, including risks related to an economic downturn or recession in the United States and in other countries around the world;
inability to continue to maintain the private mortgage insurer eligibility requirements (“PMIERs”) or any other restrictions imposed on us by the Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie Mac”), government-sponsored enterprises collectively referred to as the “GSEs”;
deterioration in economic conditions or a decline in home prices;
uncertainty of our loss reserve estimates or inaccuracies in our models;
competition for our customers or the loss of a significant customer;
changes to the charters or practices of the GSEs, including actions or decisions to decrease or discontinue the use of mortgage insurance;
lenders or investors seeking alternatives to private mortgage insurance;
failure of our risk management or loss mitigation strategies;
fluctuations and continued increases in interest rates;
limited availability of capital or reinsurance;
adverse actions by rating agencies;
competition with government-owned enterprises and GSEs;
failure to manage the risk in our investment portfolio;
disruption in the servicing of mortgages covered by our insurance policies or poor servicer performance;
unanticipated claims arising under and risks associated with our delegated underwriting program or contract underwriting program;
2


inadequacy of the premiums we charge to compensate for the losses we incur;
decrease in the volume of Low-Down Payment Loan originations;
failure to protect our confidential customer information;
adverse changes in regulatory requirements;
inability to maintain sufficient regulatory capital;
risks relating to our continuing relationship with our parent;
changes in tax laws;
litigation, regulatory investigations or other actions;
changes in accounting principles or policies or in our application of such accounting principles or policies;
inability to attract and retain key employees;
failure or any compromise of the security of our computer systems, disaster recovery systems, business continuity plans and failures to safeguard or breaches of confidential information; and
occurrence of natural or man-made disasters or public health emergencies, including pandemics and disasters caused or exacerbated by climate change
We provide additional information regarding these and other risks and uncertainties in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021, as filed with the U.S. Securities and Exchange Commission (“SEC”) on February 28, 2022, and in Part II. Item 1A Risk Factors of this report. In addition, unlisted factors may present significant additional obstacles to the realization of forward-looking statements. We therefore caution you against relying on any forward-looking statements.
3


Part I. Financial Information
Item 1. Financial Statements
ENACT HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
 June 30,
2022
December 31,
2021
(Amounts in thousands, except par value amount)(Unaudited) 
Assets  
Fixed maturity securities available-for-sale, at fair value (amortized cost of $5,281,654 and $5,160,174 as of June 30, 2022 and December 31, 2021, respectively)
$4,909,362 $5,266,339 
Cash and cash equivalents583,947 425,828 
Accrued investment income33,103 31,061 
Deferred acquisition costs26,689 27,220 
Premiums receivable (net of allowance for credit losses of $856 and $948 as of June 30, 2022 and December 31, 2021, respectively)
41,036 42,266 
Deferred tax asset98,695  
Other assets67,601 73,059 
Total assets$5,760,433 $5,865,773 
Liabilities and equity
Liabilities:
Loss reserves$558,894 $641,325 
Unearned premiums224,781 246,319 
Other liabilities154,656 130,604 
Long-term borrowings741,602 740,416 
Deferred tax liability 1,586 
Total liabilities1,679,933 1,760,250 
Equity:
Common stock ($0.01 par value, 600,000 shares authorized, 162,842 shares issued and outstanding)
1,628 1,628 
Additional paid-in capital2,377,042 2,371,861 
Accumulated other comprehensive income(293,027)83,581 
Retained earnings1,994,857 1,648,453 
Total equity4,080,500 4,105,523 
Total liabilities and equity$5,760,433 $5,865,773 
See Notes to Condensed Consolidated Financial Statements
4


ENACT HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

 Three months ended
June 30,
Six months ended
June 30,
(Amounts in thousands, except per share amounts)2022202120222021
Revenues:
Premiums$237,386 $242,480 $471,665 $495,022 
Net investment income35,776 34,689 70,922 69,948 
Net investment losses(381)(1,753)(720)(2,709)
Other income760 705 1,262 2,443 
Total revenues273,541 276,121 543,129 564,704 
Losses and expenses:
Losses incurred(61,563)30,003 (72,009)85,377 
Acquisition and operating expenses, net of deferrals58,201 63,050 112,463 120,672 
Amortization of deferred acquisition costs and intangibles3,230 3,597 6,320 7,435 
Interest expense12,786 12,745 25,562 25,482 
Total losses and expenses12,654 109,395 72,336 238,966 
Income before income taxes
260,887 166,726 470,793 325,738 
Provision for income taxes56,152 35,914 101,428 69,795 
Net income$204,735 $130,812 $369,365 $255,943 
Net income per common share:
Basic$1.26 $0.80 $2.27 $1.57 
Diluted$1.25 $0.80 $2.26 $1.57 
Weighted average common shares outstanding:
Basic162,842 162,840 162,842 162,840 
Diluted163,225 162,840 163,140 162,840 
See Notes to Condensed Consolidated Financial Statements
5


ENACT HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)

 Three months ended
June 30,
Six months ended
June 30,
(Amounts in thousands)2022202120222021
Net income$204,735 $130,812 $369,365 $255,943 
Other comprehensive income (loss), net of taxes:
Net unrealized gains (losses) on securities without an allowance for credit losses
(152,401)21,387 (376,701)(48,805)
Net unrealized gains (losses) on securities with an allowance for credit losses
 1,507   
Foreign currency translation64  93  
Other comprehensive income (loss)(152,337)22,894 (376,608)(48,805)
Total comprehensive income (loss)$52,398 $153,706 $(7,243)$207,138 
See Notes to Condensed Consolidated Financial Statements
6


ENACT HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(Unaudited)
Three months ended June 30, 2022
(Amounts in thousands)
Common
stock
Additional
paid-in
capital
Accumulated
other
comprehensive
income (loss)
Retained
earnings
Total
equity
Balances as of March 31, 2022$1,628 $2,374,568 $(140,690)$1,813,083 $4,048,589 
Comprehensive income (loss):
Net income— — — 204,735 204,735 
Other comprehensive loss, net of taxes— — (152,337)— (152,337)
Stock-based compensation expense and exercises and other— 2,474 — (163)2,311 
Dividends— — — (22,798)(22,798)
Balance as of June 30, 2022$1,628 $2,377,042 $(293,027)$1,994,857 $4,080,500 
Three months ended June 30, 2021
(Amounts in thousands)
Common
stock
Additional
paid-in
capital
Accumulated
other
comprehensive
income (loss)
Retained
earnings
Total
equity
Balances as of March 31, 2021$1,628 $2,368,782 $136,960 $1,427,956 $3,935,326 
Comprehensive income (loss):
Net income— — — 130,812 130,812 
Other comprehensive income, net of taxes— — 22,894 — 22,894 
Capital contributions from Genworth Financial, Inc.— 819 — — 819 
Balance as of June 30, 2021$1,628 $2,369,601 $159,854 $1,558,768 $4,089,851 

See Notes to Condensed Consolidated Financial Statements
7


Six months ended June 30, 2022
(Amounts in thousands)
Common
stock
Additional
paid-in
capital
Accumulated
other
comprehensive
income (loss)
Retained
earnings
Total
equity
Balances as of December 31, 2021$1,628 $2,371,861 $83,581 $1,648,453 $4,105,523 
Comprehensive income (loss):
Net income— — — 369,365 369,365 
Other comprehensive loss, net of taxes— — (376,608)— (376,608)
Stock-based compensation expense and exercises and other— 5,181 — (163)5,018 
Dividends— — — (22,798)(22,798)
Balance as of June 30, 2022$1,628 $2,377,042 $(293,027)$1,994,857 $4,080,500 
Six months ended June 30, 2021
(Amounts in thousands)
Common
stock
Additional
paid-in
capital
Accumulated
other
comprehensive
income (loss)
Retained
earnings
Total
equity
Balances as of December 31, 2020$1,628 $2,368,699 $208,378 $1,303,106 $3,881,811 
Cumulative effect of change in accounting, net of taxes— — 281 (281)— 
Comprehensive income (loss):
Net income— — — 255,943 255,943 
Other comprehensive loss, net of taxes— — (48,805)— (48,805)
Capital contributions from Genworth Financial, Inc.— 902 — — 902 
Balances as of June 30, 2021$1,628 $2,369,601 $159,854 $1,558,768 $4,089,851 
See Notes to Condensed Consolidated Financial Statements
8


ENACT HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
 Six months ended
June 30,
(Amounts in thousands)20222021
Cash flows from operating activities:  
Net income$369,365 $255,943 
Adjustments to reconcile net income to net cash provided by operating activities:
Net investment losses720 2,709 
Amortization of fixed maturity securities discounts and premiums(1,529)(4,639)
Amortization of deferred acquisition costs and intangibles6,320 7,435 
Acquisition costs deferred(3,316)(3,752)
Deferred income taxes1,475 2,225 
Stock-based compensation expense5,040  
Amortization of debt issuance costs1,186 1,107 
Other(20)664 
Change in certain assets and liabilities:
Accrued investment income(2,042)(1,633)
Premiums receivable1,230 3,177 
Other assets1,931 (9,681)
Loss reserves(82,431)68,577 
Unearned premiums(21,538)(43,372)
Other liabilities25,354 (15,653)
Net cash provided by operating activities301,745 263,107 
Cash flows from investing activities:
Purchases of fixed maturity securities available-for-sale (624,909)(892,287)
Proceeds from sales of fixed maturity securities available-for-sale261,732 258,101 
Proceeds from maturities of fixed maturity securities available-for-sale242,349 353,608 
Net cash used in investing activities(120,828)(280,578)
Cash flows from financing activities:
Dividends paid(22,798) 
Net cash provided by (used in) financing activities(22,798) 
Net decrease in cash and cash equivalents158,119 (17,471)
Cash and cash equivalents at beginning of period425,828 452,794 
Cash and cash equivalents at end of period$583,947 $435,323 
See Notes to Condensed Consolidated Financial Statements
9

ENACT HOLDINGS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
(1)Nature of Business, Organization Structure and Basis of Presentation
The accompanying unaudited condensed consolidated financial statements include, on a consolidated basis, the accounts of Enact Holdings, Inc. (“EHI,” together with its subsidiaries, the “Company,” “we,” “us” or “our”) (formerly known as Genworth Mortgage Holdings, Inc.). EHI is a subsidiary of Genworth Financial, Inc. (“Genworth” or “Parent”) and has been since EHI’s incorporation in Delaware in 2012.
We are engaged in the business of writing and assuming residential mortgage guaranty insurance. The insurance protects lenders and investors against certain losses resulting from nonpayment of loans secured by mortgages, deeds of trust, or other instruments constituting a lien on residential real estate.
On May 3, 2021, EHI amended its certificate of incorporation to change its name from Genworth Mortgage Holdings, Inc. This amendment also authorized EHI to issue 600,000,000 shares of common stock, each having a par value of $0.01 per share. Concurrently, we entered into a share exchange agreement with Genworth Holdings, Inc. (“Genworth Holdings”), pursuant to which Genworth Holdings exchanged its 100 shares of common stock, representing all of the previously issued and outstanding capital stock, for 162,840,000 newly-issued shares of common stock, par value $0.01, of EHI. All of the share and per share information presented in the condensed consolidated financial statements and notes to the condensed consolidated financial statements have been adjusted to reflect the share exchange on a retroactive basis for all periods and as of all dates presented.
On September 15, 2021, we priced our initial public offering (“IPO”) of common stock, which resulted in the issuance and sale of 13,310,400 shares of common stock at the IPO price of $19.00 per common share. All shares were offered by the selling stockholder, our parent company, Genworth Holdings. In addition to the shares sold in the IPO, 14,655,600 common shares were sold in a concurrent private sale (“Private Sale”) at a price per share of $17.86, which is equal to the IPO price less the underwriting discount share. Genworth Holdings also granted the underwriters a 30-day option to purchase up to an additional 1,996,560 common shares (“Over-Allotment Option”) at the IPO price less the underwriting discount. On September 16, 2021, the underwriters exercised their option to purchase all 1,996,560 common shares permitted under the terms of the underwriting agreement. The IPO, Private Sale and Over-Allotment Option (collectively the “Offering”) closed on September 20, 2021, and Genworth Holdings retained all net proceeds from the Offering. The gross proceeds of the Offering, before payment of underwriter fees and other expenses, were approximately $553 million. Costs directly related to the Offering, including underwriting fees and other expenses, were approximately $24 million.
We offer private mortgage insurance products predominantly insuring prime-based, individually underwritten residential mortgage loans (“primary mortgage insurance”). Our primary mortgage insurance enables borrowers to buy homes with a down payment of less than 20% of the home’s value. Primary mortgage insurance also facilitates the sale of these low down payment mortgage loans in the secondary mortgage market, most of which are sold to government sponsored enterprises. We also selectively enter into insurance transactions with lenders and investors, under which we insure a portfolio of loans at or after origination.
We operate our business through our primary insurance subsidiary, Enact Mortgage Insurance Corporation, (“EMICO”), formerly known as Genworth Mortgage Insurance Corporation, with operations in all 50 states and the District of Columbia. We completed name changes to some of our subsidiary legal entities during the first quarter of 2022. EMICO is an approved insurer by the Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie Mac”). Fannie Mae and Freddie Mac are government-sponsored enterprises and we refer to them collectively as the “GSEs.”
10

ENACT HOLDINGS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
We also perform fee-based contract underwriting services for mortgage lenders. The provision of underwriting services by mortgage insurers eliminates the duplicative lender and mortgage insurer underwriting activities and expedites the approval process.
We operate our business in a single segment, which is how our chief operating decision maker (who is our Chief Executive Officer) reviews our financial performance and allocates resources. Our segment includes a run-off insurance block with reference properties in Mexico (“run-off business”), which is immaterial to our condensed consolidated financial statements.
The accompanying condensed consolidated financial statements are unaudited and have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). Preparing financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect reported amounts and related disclosures. Actual results could differ from those estimates. These unaudited condensed consolidated financial statements include all adjustments (including normal recurring adjustments) considered necessary by management to present a fair statement of the financial position, results of operations and cash flows for the periods presented. The results reported in these unaudited condensed consolidated financial statements should not be regarded as necessarily indicative of results that may be expected for the entire year. The unaudited condensed consolidated financial statements included herein should be read in conjunction with the audited consolidated financial statements and related notes for the years ended December 31, 2021 and 2020.

(2)Accounting Changes
Accounting Pronouncements Recently Adopted
We have not adopted new accounting pronouncements in 2022.
Accounting Pronouncements Not Yet Adopted
There are no significant new accounting pronouncements impacting our financial statements.
(3)Investments
Net Investment Income
Sources of net investment income were as follows for the periods indicated:
Three months ended
June 30,
Six months ended
June 30,
(Amounts in thousands)
2022202120222021
Fixed maturity securities available-for-sale$36,810 $36,301 $73,344 $72,952 
Cash, cash equivalents and short-term investments422 16 432 52 
Gross investment income before expenses and fees37,232 36,317 73,776 73,004 
Investment expenses and fees(1,456)(1,628)(2,854)(3,056)
Net investment income$35,776 $34,689 $70,922 $69,948 
11

ENACT HOLDINGS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Net Investment Losses
The following table sets forth net investment gains (losses) for the periods indicated:
Three months ended
June 30,
Six months ended
June 30,
(Amounts in thousands)
2022202120222021
Fixed maturity securities available-for-sale:  
Gross realized gains$291 $90 $641 $584 
Gross realized (losses)(672)(541)(1,534)(1,133)
Net realized gains (losses)(381)(451)(893)(549)
Net change in allowance for credit losses on fixed maturity securities available-for-sale (1,302)173 (2,160)
Net investment losses$(381)$(1,753)$(720)$(2,709)
There was no recorded allowance for credit losses for fixed maturity securities available-for-sale as of and for the three and six months ended June 30, 2022.
The following table represents the allowance for credit losses aggregated by security type for fixed maturity available-for-sale securities as of and for the three months ended June 30, 2021:
(Amounts in thousands)Beginning balanceCumulative effect of change in accountingIncrease from securities without allowance in previous periodsSecurities soldEnding balance
Fixed maturity securities:
Non-U.S. corporate$1,210 $ $1,304 $(2,514)$ 
Total fixed maturity securities available-for-sale $1,210 $ $1,304 $(2,514)$ 
The following table represents the allowance for credit losses aggregated by security type for fixed maturity available-for-sale securities as of and for the six months ended June 30, 2021:
(Amounts in thousands)Beginning balanceCumulative effect of change in accountingIncrease from securities without allowance in previous periodsSecurities soldEnding balance
Fixed maturity securities:
Non-U.S. corporate$ $357 $2,157 $(2,514)$ 
Total fixed maturity securities available-for-sale $ $357 $2,157 $(2,514)$ 
12

ENACT HOLDINGS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Unrealized Investment Gains (Losses)
Net unrealized gains and losses on available-for-sale securities reflected as a separate component of accumulated other comprehensive income (“AOCI”) were as follows as of the dates indicated:
(Amounts in thousands)
June 30, 2022December 31, 2021
Net unrealized gains (losses) on investment securities:
Fixed maturity securities$(372,292)$106,165 
Income taxes79,179 (22,577)
Net unrealized investment gains (losses)$(293,113)$83,588 
The change in net unrealized gains (losses) on available-for-sale securities reported in accumulated other comprehensive income was as follows as of and for the periods indicated:
Three months ended
June 30,
(Amounts in thousands)
20222021
Beginning balance$(140,712)$136,960 
Unrealized gains (losses) arising during the period:
Unrealized gains (losses) on investment securities(193,949)28,631 
Provision for income taxes41,247 (6,094)
Change in unrealized gains (losses) on investment securities(152,702)22,537 
Reclassification adjustments to net investment (gains) losses, net of taxes of $(80) and $(94), respectively
301 357 
Change in net unrealized investment gains (losses)(152,401)22,894 
Ending balance$(293,113)$159,854 
Six months ended
June 30,
(Amounts in thousands)
20222021
Beginning balance$83,588 $208,378 
Cumulative effect of change in accounting, net of taxes 281 
Unrealized gains (losses) arising during the period:
Unrealized gains (losses) on investment securities(479,350)(62,539)
Provision for income taxes101,944 13,300 
Change in unrealized gains (losses) on investment securities(377,406)(49,239)
Reclassification adjustments to net investment (gains) losses, net of taxes of $(188) and $(115), respectively
705 434 
Change in net unrealized investment gains (losses)(376,701)(48,805)
Ending balance$(293,113)$159,854 
Amounts reclassified out of accumulated other comprehensive income to net investment gains (losses) include realized gains (losses) on sales of securities, which are determined on a specific identification basis.

13

ENACT HOLDINGS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Fixed Maturity Securities Available-For-Sale
As of June 30, 2022, the amortized cost, gross unrealized gains (losses) and fair value of our fixed maturity securities classified as available-for-sale were as follows:
(Amounts in thousands)
Amortized
cost
Gross unrealized gainsGross unrealized losses
Fair
value
U.S. government, agencies and GSEs$50,295 $143 $(770)$49,668 
State and political subdivisions537,225 3,678 (71,394)469,509 
Non-U.S. government22,228  (1,108)21,120 
U.S. corporate2,928,441 2,905 (188,823)2,742,523 
Non-U.S. corporate670,535 499 (52,324)618,710 
Other asset-backed1,072,930 146 (65,244)1,007,832 
Total fixed maturity securities available-for-sale$5,281,654 $7,371 $(379,663)$4,909,362 
As of December 31, 2021, the amortized cost, gross unrealized gains (losses) and fair value of our fixed maturity securities classified as available-for-sale were as follows:
(Amounts in thousands)
Amortized
cost
Gross unrealized gains
Gross unrealized losses
Fair
value
U.S. government, agencies and GSEs$56,547 $1,863 $(2)$58,408 
State and political subdivisions531,927 10,982 (4,456)538,453 
Non-U.S. government22,358 248 (190)22,416 
U.S. corporate2,863,100 98,293 (16,090)2,945,303 
Non-U.S. corporate652,503 17,556 (3,465)666,594 
Other asset-backed1,033,739 6,989 (5,563)1,035,165 
Total fixed maturity securities available-for-sale$5,160,174 $135,931 $(29,766)$5,266,339 
There was no allowance for credit losses recorded fixed maturity securities classified as available-for-sale as of June 30, 2022 or December 31, 2021.
14

ENACT HOLDINGS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Gross Unrealized Losses and Fair Values of Fixed Maturity Securities Available-For-Sale
The following table presents the gross unrealized losses and fair values of our fixed maturity securities for which an allowance for credit losses has not been recorded, aggregated by investment type and length of time that individual fixed maturity securities have been in a continuous unrealized loss position, as of June 30, 2022:
 
Less than 12 months 
12 months or more
Total
(Amounts in thousands)
Fair
value 
Gross unrealized losses
Number of securities
Fair value
Gross unrealized losses
Number of securities
Fair value
Gross unrealized losses
Number of securities
Fixed maturity securities:         
U.S. government, agencies and GSEs$43,708 $(762)17 $97 $(8)1 $43,805 $(770)18 
State and political subdivisions417,186 (69,038)85 14,102 (2,356)4 431,288 (71,394)89 
Non-U.S. government21,120 (1,108)2    21,120 (1,108)2 
U.S. corporate2,010,547 (157,115)387 178,817 (31,708)21 2,189,364 (188,823)408 
Non-U.S. corporate490,438 (44,945)99 52,773 (7,379)7 543,211 (52,324)106 
Other asset-backed883,706 (62,224)186 34,558 (3,020)8 918,264 (65,244)194 
Total for fixed maturity securities in an unrealized loss position$3,866,705 $(335,192)776 $280,347 $(44,471)41 $4,147,052 $(379,663)817 
We did not recognize an allowance for credit losses on securities in an unrealized loss position included in the table above. Based on a qualitative and quantitative review of the issuers of the securities, we believe the decline in fair value is largely due to rising interest rates and recent market volatility, and is not indicative of credit losses. The issuers continue to make timely principal and interest payments.
For all securities in an unrealized loss position without an allowance for credit losses, we expect to recover the amortized cost based on our estimate of the amount and timing of cash flows to be collected. We do not intend to sell nor do we expect that we will be required to sell these securities prior to recovering our amortized cost.
The following table presents the gross unrealized losses and fair values of our fixed maturity securities, aggregated by investment type and length of time that individual fixed maturity securities have been in a continuous unrealized loss position, as of December 31, 2021:
 
Less than 12 months 
12 months or more
Total
(Amounts in thousands)
Fair
value 
Gross unrealized losses
Number of securities
Fair value
Gross unrealized losses
Number of securities
Fair value
Gross unrealized losses
Number of securities
Fixed maturity securities:         
U.S. government, agencies and GSEs$103 $(2)1 $ $  $103 $(2)1 
State and political subdivisions255,202 (4,456)47    255,202 (4,456)47 
Non-U.S. government10,560 (190)1    10,560 (190)1 
U.S. corporate649,927 (14,300)94 26,181 (1,790)4 676,108 (16,090)98 
Non-U.S. corporate183,485 (3,465)28    183,485 (3,465)28 
Other asset-backed456,565 (5,549)76 3,736 (14)1 460,301 (5,563)77 
Total for fixed maturity securities in an unrealized loss position$1,555,842 $(27,962)247 $29,917 $(1,804)5 $1,585,759 $(29,766)252 
15

ENACT HOLDINGS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Contractual Maturities of Fixed Maturity Securities Available-For-Sale
The scheduled maturity distribution of fixed maturity securities as of June 30, 2022, is set forth below. Actual maturities may differ from contractual maturities because issuers of securities may have the right to call or prepay obligations with or without call or prepayment penalties.
(Amounts in thousands)
Amortized
cost
Fair
value
Due one year or less$292,225 $292,044 
Due after one year through five years2,138,334 2,060,317 
Due after five years through ten years1,504,429 1,322,151 
Due after ten years273,736 227,018 
Subtotal4,208,724 3,901,530 
Other asset-backed1,072,930 1,007,832 
Total fixed maturity securities available-for-sale$5,281,654 $4,909,362 
As of June 30, 2022, securities issued by finance and insurance, consumer—non-cyclical, and the technology and communications, and utilities industry groups represented approximately 30%, 14%, and 13%, respectively, of our domestic and foreign corporate fixed maturity securities portfolio. No other industry group comprised more than 9% of our investment portfolio.
As of June 30, 2022, we did not hold any fixed maturity securities in any single issuer, other than securities issued or guaranteed by the U.S. government, which exceeded 10% of equity.
As of June 30, 2022 and December 31, 2021, $25.5 million and $22.9 million, respectively, of securities in our portfolio were on deposit with various state insurance commissioners in order to comply with relevant insurance regulations.
(4)Fair Value
Recurring Fair Value Measurements
We hold fixed maturity securities, which are carried at fair value. The fair value of fixed maturity securities is estimated primarily based on information derived from third-party pricing services (“pricing services”), internal models and/or broker quotes, which use a market approach, income approach or a combination of the market and income approach depending on the type of instrument and availability of information. In general, a market approach is utilized if there is readily available and relevant market activity for an individual security. In certain cases where market information is not available for a specific security but is available for similar securities, that security is valued using market information for similar securities, which is also a market approach. When market information is not available for a specific security (or similar securities) or is available but such information is less relevant or reliable, an income approach or a combination of a market and income approach is utilized. For securities with optionality, such as call or prepayment features (including asset-backed securities), an income or combination approach may be used. These valuation techniques may change from period to period, based on the relevance and availability of market data.
Further, while we consider the valuations provided by pricing services and broker quotes to be of high quality, management determines the fair value of our investment securities after considering all relevant and available information.
In general, we first obtain valuations from pricing services. If prices are unavailable for public securities, we obtain broker quotes. For all securities, excluding certain private fixed maturity securities, if
16

ENACT HOLDINGS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
neither a pricing service nor broker quotes valuation is available, we determine fair value using internal models. For certain private fixed maturity securities where we do not obtain valuations from pricing services, we utilize an internal model to determine fair value since transactions for similar securities are not readily observable and these securities are not typically valued by pricing services.
Given our understanding of the pricing methodologies and procedures of pricing services, the securities valued by pricing services are typically classified as Level 2 unless we determine the valuation process for a security or group of securities utilizes significant unobservable inputs, which would result in the valuation being classified as Level 3.
Broker quotes are typically based on an income approach given the lack of available market data. As the valuation typically includes significant unobservable inputs, we classify the securities where fair value is based on our consideration of broker quotes as Level 3 measurements.
For private fixed maturity securities, we utilize an income approach where we obtain public bond spreads and utilize those in an internal model to determine fair value. Other inputs to the model include rating and weighted-average life, as well as sector which is used to assign the spread. We then add an additional premium, which represents an unobservable input, to the public bond spread to adjust for the liquidity and other features of our private placements. We utilize the estimated market yield to discount the expected cash flows of the security to determine fair value. We utilize price caps for securities where the estimated market yield results in a valuation that may exceed the amount that would be received in a market transaction. When a security does not have an external rating, we assign the security an internal rating to determine the appropriate public bond spread that should be utilized in the valuation. While we generally consider the public bond spreads by sector and maturity to be observable inputs, we evaluate the similarities of our private placement with the public bonds, any price caps utilized, liquidity premiums applied, and whether external ratings are available for our private placements to determine whether the spreads utilized would be considered observable inputs. We classify private securities without an external rating or public bond spread as Level 3. In general, a significant increase (decrease) in credit spreads would have resulted in a significant decrease (increase) in the fair value for our fixed maturity securities as of June 30, 2022.
For remaining securities priced using internal models, we determine fair value using an income approach. We maximize the use of observable inputs but typically utilize significant unobservable inputs to determine fair value. Accordingly, the valuations are typically classified as Level 3.
Our assessment of whether or not there were significant unobservable inputs related to fixed maturity securities was based on our observations obtained through the course of managing our investment portfolio, including interaction with other market participants, observations related to the availability and consistency of pricing and/or rating, and understanding of general market activity such as new issuance and the level of secondary market trading for a class of securities. Additionally, we considered data obtained from pricing services to determine whether our estimated values incorporate significant unobservable inputs that would result in the valuation being classified as Level 3.
A summary of the inputs used for our fixed maturity securities based on the level in which instruments are classified is included below. We have combined certain classes of instruments together as the nature of the inputs is similar.