0001823529FALSE00018235292024-11-062024-11-06

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 6, 2024


Enact Holdings, Inc.
(Exact name of registrant as specified in its charter)


Delaware
001-40399
46-1579166
(State or other Jurisdiction of(Commission(IRS Employer
Incorporation)File Number)Identification No.)

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)


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):

☐    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each classTrading Symbol(s)Name of each exchange on which registered
Common stock, par value $0.01 per shareACTThe Nasdaq Stock Market


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 2.02Results of Operations and Financial Condition.
On November 6, 2024, Enact Holdings, Inc. (the “Company”) issued (1) a press release announcing its financial results for the quarter ended September 30, 2024, 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, 2024, a copy of which is attached hereto as Exhibit 99.2 and is incorporated herein by reference.

The information contained in Item 2.02 of this Current Report on Form 8-K (including Exhibits 99.1 and 99.2) 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 Item 2.02 of 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 9.01Financial Statements and Exhibits.
The following materials are furnished as exhibits to this Current Report on Form 8-K:

Exhibit
Number		  
  
Press Release dated November 6, 2024 - Financial results
  
Financial Supplement for the quarter ended September 30, 2024
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/ Hardin Dean Mitchell
  Name:Hardin Dean Mitchell
  Title:Executive Vice President, Chief Financial Officer and Treasurer
Dated: November 6, 2024  

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Exhibit 99.1
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ENACT REPORTS THIRD QUARTER 2024 RESULTS AND ANNOUNCES QUARTERLY DIVIDEND
_______________________________________
GAAP Net Income of $181 million, or $1.15 per diluted share
Adjusted Operating Income of $182 million, or $1.16 per diluted share
Return on Equity of 14.7% and Adjusted Operating Return on Equity of 14.8%
Record Primary insurance in-force of $268 billion, a 2% increase from third quarter 2023
PMIERs Sufficiency of 173% or $2,190 million
Book Value Per Share of $32.61 and Book Value Per Share excluding AOCI of $33.27
Announces quarterly cash dividend of $0.185 per common share


Raleigh, NC, November 6, 2024 – Enact Holdings, Inc. (Nasdaq: ACT) today announced financial results for the third quarter of 2024.

"Our strong third-quarter performance underscores the continued successful execution of our strategy," stated Rohit Gupta, President and CEO of Enact. "Driven by our effective go-to-market strategy, our insurance-in-force reached a new peak during the quarter, while our careful risk and expense management initiatives continued to produce strong bottom-line performance, fueling our ability to deliver for our policyholders, invest in our business, and return capital to our shareholders. Looking to the remainder of the year and beyond, we believe we are well positioned to continue driving value for all stakeholders. The long-term drivers of demand remain intact, and we will continue to play an essential role in helping people responsibly achieve and maintain their homeownership goals."


Key Financial Highlights

(In millions, except per share data or otherwise noted)
3Q242Q243Q23
Net Income (loss)
$181$184$164
Diluted Net Income (loss) per share
$1.15$1.16$1.02
Adjusted Operating Income (loss)
$182$201$164
Adj. Diluted Operating Income (loss) per share
$1.16$1.27$1.02
NIW ($B)
$14$14$14
Primary IIF ($B)
$268$266$262
Primary Persistency Rate
83%83%84%
Net Premiums Earned
$249$245$243
Losses Incurred
$12$(17)$18
Loss Ratio
5%(7)%7%
Operating Expenses
$56$56$55
Expense Ratio
22%23%23%
Net Investment Income
$61$60$55
Net Investment gains (losses)$(1)$(8)$0
Return on Equity
14.7%15.4%14.9%
Adjusted Operating Return on Equity
14.8%16.9%14.9%
PMIERs Sufficiency ($)
$2,190$2,057$2,017
PMIERs Sufficiency (%)
173%169%162%
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Third Quarter 2024 Financial and Operating Highlights
•Net income was $181 million, or $1.15 per diluted share, compared with $184 million, or $1.16 per diluted share, for the second quarter of 2024 and $164 million, or $1.02 per diluted share, for the third quarter of 2023. Adjusted operating income was $182 million, or $1.16 per diluted share, compared with $201 million, or $1.27 per diluted share, for the second quarter of 2024 and $164 million, or $1.02 per diluted share, for the third quarter of 2023.
•New insurance written (NIW) was approximately $14 billion, flat from the second quarter of 2024 and down 6% from the third quarter of 2023 on estimated lower market share. NIW for the current quarter was comprised of 95% monthly premium policies and 96% purchase originations.
•Primary insurance in-force was a record $268 billion, up from $266 billion in the second quarter of 2024 and up 2% from $262 billion in the third quarter of 2023.
•Persistency was 83%, flat from 83% in the second quarter of 2024 and modestly down from 84% in the third quarter of 2023. Approximately 8% of our IIF had rates at least 50 basis points above the prevailing market rate on October 31, 2024.
•Net premiums earned were $249 million, up 2% from $245 million in the second quarter of 2024 and up 2% from $243 million in the third quarter of 2023. Net premiums increased sequentially and year over year driven by insurance in-force growth and our growth in premiums from our expansion into attractive adjacencies primarily consisting of Enact Re’s GSE CRT participation, partially offset by higher ceded premiums.
•Losses incurred for the third quarter of 2024 were $12 million and the loss ratio was 5%, compared to $(17) million and (7)%, respectively, in the second quarter of 2024 and $18 million and 7%, respectively, in the third quarter of 2023. The sequential increase in losses and the loss ratio were primarily driven by seasonally higher new delinquencies and a lower reserve release of $65 million from favorable cure performance and loss mitigation activities in the current quarter. The $65 million reserve release compares to a reserve release of $77 million and $55 million in the second quarter of 2024 and third quarter of 2023, respectively. The decrease year-over-year was primarily driven by the higher reserve release in the current quarter.
•Operating expenses in the current quarter were $56 million and the expense ratio was 22%. This compared to $56 million and 23%, respectively, in the second quarter of 2024 and $55 million and 23%, respectively in the third quarter of 2023. The third quarter and second quarter of 2024 reflect expense actions taken that resulted in nonrecurring expenses of $1 million and $3 million, respectively. When adjusted for these one-time charges, expenses modestly increased sequentially primarily driven by variable incentive compensation.
•Net investment income was $61 million, up from $60 million in the second quarter of 2024 and $55 million in the third quarter of 2023, driven by the continuation of elevated interest rates and higher average invested assets.
•Net investment loss in the quarter was $(1) million, as compared to $(8) million sequentially and $(0) million in the same period last year.
•Annualized return on equity for the third quarter of 2024 was 14.7% and annualized adjusted operating return on equity was 14.8%. This compares to second quarter 2024 results of 15.4% and 16.9%, respectively, and to third quarter 2023 results of 14.9% and 14.9%, respectively.





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Capital and Liquidity
•As previously announced, we paid a $29 million, or $0.185 per share, dividend in the current quarter.
•Enact Holdings, Inc. held $151 million of cash and cash equivalents plus $292 million of invested assets as of September 30, 2024. Combined cash and invested assets decreased $83 million from the prior quarter, primarily due to share buybacks and our quarterly dividend.
•PMIERs sufficiency was 173% and $2.2 billion above the PMIERs requirements, compared to 169% and $2.1 billion above the PMIERs requirements in the second quarter of 2024.
•S&P Global Ratings has assigned an A- rating to Enact Re, Ltd. (Enact Re), a subsidiary of Enact Mortgage Insurance Company (EMICO). The outlook for the ratings is stable.

Recent Events
•We repurchased approximately 2.1 million shares at an average price of $34.04 for a total of approximately $71 million in the quarter. Additionally, through October 31, 2024, we repurchased 0.8 million shares at an average price of $35.89 for a total of $30 million and there remains approximately $137 million of our $250 million repurchase authorization.
•We announced today that the Board of Directors declared a quarterly dividend of $0.185 per common share, payable on December 5, 2024, to shareholders of record on November 18, 2024.
•We anticipate full year capital return at the higher end of our previously announced range of between $300 and $350 million, the final amount and form of capital returned to shareholders will ultimately depend on business performance, market conditions, and regulatory approvals.



Conference Call and Financial Supplement Information
This press release, the third quarter 2024 financial supplement and earnings presentation are now posted on the Company’s website, https://ir.enactmi.com. Investors are encouraged to review these materials.

Enact will discuss third quarter financial results in a conference call tomorrow, Thursday, November 7, 2024, at 8:00 a.m. (Eastern). Participants interested in joining the call’s live question and answer session are required to pre-register by clicking here to obtain your dial-in number and unique PIN. It is recommended to join at least 15 minutes in advance, although you may register ahead of the call and dial in at any time during the call. If you wish to join the call but do not plan to ask questions, a live webcast of the event will be available on our website, https://ir.enactmi.com/news-and-events/events.

The webcast will also be archived on the Company’s website for one year.



About Enact
Enact (Nasdaq: ACT), operating principally through its wholly-owned subsidiary Enact Mortgage Insurance Corporation 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 of 1995. These forward-looking statements may address, among other things, our expected financial and operational results, the related assumptions underlying our expected results, guidance
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concerning the future return of capital and the quotations of management. These forward-looking statements are distinguished by use of words such as “will,” “may,” “would,” “anticipate,” “expect,” “believe,” “designed,” “plan,” “predict,” “project,” “target,” “could,” “should,” 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 risks related to an economic downturn or a recession in the United States and in other countries around the world; changes in political, business, regulatory, and economic conditions; changes in or to Fannie Mae and Freddie Mac (the “GSEs”), whether through Federal legislation, restructurings or a shift in business practices; failure to continue to meet the mortgage insurer eligibility requirements of the GSEs; competition for customers; lenders or investors seeking alternatives to private mortgage insurance; an increase in the number of loans insured through Federal government mortgage insurance programs, including those offered by the Federal Housing Administration; and other factors described in the risk factors contained in our 2023 Annual Report on Form 10-K and other filings with the SEC, 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, Enact 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). Enact Holdings, Inc. (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, and gain (loss) on the extinguishment of debt. The Company excludes net investment gains (losses), gains (losses) on the extinguishment of debt 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.
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Adjustments to reconcile net income (loss) available to Enact Holdings, Inc.’s common stockholders to adjusted operating income (loss) assume a 21% tax rate.

The tables at the end of this press release provide a reconciliation of net income (loss) to adjusted operating income (loss) and U.S. GAAP return on equity to adjusted operating return on equity for the three months ended September 30, 2024 and 2023, as well as for the three months ended June 30, 2024.
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Exhibit A: Consolidated Statements of Income (amounts in thousands, except per share amounts)
3Q242Q243Q23
REVENUES:
Premiums$249,055$244,567$243,346
Net investment income61,05659,77354,952
Net investment gains (losses)(1,243)(7,713)(23)
Other income7202,207760
Total revenues309,588298,834299,035
LOSSES AND EXPENSES:
Losses incurred12,164(16,821)17,847
Acquisition and operating expenses, net of deferrals53,09153,96052,339
Amortization of deferred acquisition costs and intangibles2,5862,2922,803
Interest expense12,29013,64412,941
Loss on debt extinguishment010,9300
Total losses and expenses80,13164,00585,930
INCOME BEFORE INCOME TAXES229,457234,829213,105
Provision for income taxes
48,78851,15648,910
NET INCOME$180,669$183,673$164,195
Net investment (gains) losses1,2437,71323
Costs associated with reorganization8483,4353
Loss on debt extinguishment010,9300
Taxes on adjustments(439)(4,636)(5)
Adjusted Operating Income$182,321$201,115$164,216
Loss ratio (1)
5 %(7)%7 %
Expense ratio (2)
22 %23 %23 %
Earnings Per Share Data:
Net Income per share
Basic$1.16$1.17$1.03
Diluted$1.15$1.16$1.02
Adj operating income per share
Basic$1.17$1.28$1.03
Diluted$1.16$1.27$1.02
Weighted-average common shares outstanding
Basic155,561157,193160,066
Diluted157,016158,571161,146
(1) The ratio of losses incurred to net earned premiums.
(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 zero percentage points for the three-month period ended September 30, 2024, 1 percentage point for the three-month period ended June 30, 2024, and zero percentage points for the three-month period ended September 30, 2023.
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Exhibit B: Consolidated Balance Sheets (amounts in thousands, except per share amounts)

Assets3Q242Q243Q23
Investments:
Fixed maturity securities available-for-sale, at fair value$5,652,399$5,331,345$4,990,692
Short term investments1,55012,31318,173
Total investments5,653,9495,343,6585,008,865
Cash and cash equivalents673,363699,035677,990
Accrued investment income45,95445,31742,051
Deferred acquisition costs24,16024,61925,572
Premiums receivable48,83448,69844,310
Other assets100,72398,92982,196
Deferred tax asset50,06389,116119,704
Total assets$6,597,046$6,349,372$6,000,688
Liabilities and Shareholders' Equity
Liabilities:
Loss reserves$510,401$508,138$501,093
Unearned premiums121,382129,870161,580
Other liabilities186,312143,167136,057
Long-term borrowings742,706742,368744,752
Total liabilities1,560,8011,523,5431,543,482
Equity:
Common stock1,5441,5611,600
Additional paid-in capital2,145,5182,220,9032,322,622
Accumulated other comprehensive income(101,984)(236,305)(400,349)
Retained earnings2,991,1672,839,6702,533,333
Total equity5,036,2454,825,8294,457,206
Total liabilities and equity$6,597,046$6,349,372$6,000,688
Book value per share$32.61$30.91$27.86
Book value per share excluding AOCI$33.27$32.43$30.36
U.S. GAAP ROE (1)
14.7 %15.4 %14.9 %
Net investment (gains) losses0.1 %0.6 %0.0 %
Costs associated with reorganization0.1 %0.3 %0.0 %
(Gains) losses on early extinguishment of debt0.0 %0.9 %0.0 %
Taxes on adjustments0.0 %(0.4)%0.0 %
Adjusted Operating ROE(2)
14.8 %16.9 %14.9 %
Debt to Capital Ratio13 %13 %14 %
(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
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Enact Holdings, Inc. Financial Supplement Third Quarter 2024 GAAP/Non-GAAP Disclosure Discussion 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). Enact Holdings, Inc. (the "Company") defines adjusted operating income (loss) as net income (loss) excluding the after-tax effects of net investment gains (losses), restructuring costs, gains (losses) on debt extinguishment and infrequent or unusual non-operating items. The Company excludes net investment gains (losses), gains (losses) on the extinguishment of debt and infrequent or unusual non-operating items because the Company does not consider them to be related to the operating performance of the Company. 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 Company’s common stockholders or net income (loss) available to Company’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 Company’s common stockholders to adjusted operating income (loss) assume a 21% tax rate. Page 2

 
Enact Holdings, Inc. Financial Supplement Third Quarter 2024 3Q 2Q 1Q Total 4Q 3Q 2Q 1Q Total REVENUES: Premiums $249,055 $244,567 $240,747 $734,369 $240,101 $243,346 $238,520 $235,108 $957,075 Net investment income 61,056 59,773 57,111 177,940 56,161 54,952 50,915 45,341 207,369 Net investment gains (losses) (1,243) (7,713) (6,684) (15,640) (876) (23) (13,001) (122) (14,022) Other income 720 2,207 402 3,329 804 760 1,088 612 3,264 Total revenues 309,588 298,834 291,576 899,998 296,190 299,035 277,522 280,939 1,153,686 LOSSES AND EXPENSES: Losses incurred 12,164 (16,821) 19,501 14,844 24,372 17,847 (4,070) (10,984) 27,165 Acquisition and operating expenses, net of deferrals 53,091 53,960 50,934 157,985 56,560 52,339 51,887 51,705 212,491 Amortization of deferred acquisition costs and intangibles 2,586 2,292 2,259 7,137 2,566 2,803 2,645 2,640 10,654 Interest expense 12,290 13,644 12,961 38,895 12,948 12,941 12,913 13,065 51,867 Loss on debt extinguishment 0 10,930 0 10,930 0 0 0 0 0 Total losses and expenses 80,131 64,005 85,655 229,791 96,446 85,930 63,375 56,426 302,177 INCOME BEFORE INCOME TAXES 229,457 234,829 205,921 670,207 199,744 213,105 214,147 224,513 851,509 Provision for income taxes 48,788 51,156 44,933 144,877 42,436 48,910 46,127 48,525 185,998 NET INCOME $180,669 $183,673 $160,988 $525,330 $157,308 $164,195 $168,020 $175,988 $665,511 Net investment (gains) losses $1,243 $7,713 $6,684 $15,640 $876 $23 $13,001 $122 $14,022 Costs associated with reorganization 848 3,435 (42) 4,241 408 3 41 (583) (131) Loss on debt extinguishment 0 10,930 0 10,930 0 0 0 0 0 Taxes on adjustments (439) (4,636) (1,395) (6,470) (270) (5) (2,739) 97 (2,917) Adjusted Operating Income $182,321 $201,115 $166,235 $549,671 $158,322 $164,216 $178,323 $175,624 $676,485 Loss ratio (1) 5 % (7)% 8 % 2 % 10 % 7 % (2)% (5)% 3 % Expense ratio (2) 22 % 23 % 22 % 22 % 25 % 23 % 23 % 23 % 23 % Earnings per share data: Net income per share Basic $1.16 $1.17 $1.01 $3.34 $0.99 $1.03 $1.04 $1.08 $4.14 Diluted $1.15 $1.16 $1.01 $3.31 $0.98 $1.02 $1.04 $1.08 $4.11 Adjusted operating income per share Basic $1.17 $1.28 $1.05 $3.50 $0.99 $1.03 $1.11 $1.08 $4.21 Diluted $1.16 $1.27 $1.04 $3.47 $0.98 $1.02 $1.10 $1.08 $4.18 Weighted-average common shares outstanding Basic 155,561 157,193 158,818 157,191 159,655 160,066 161,318 162,442 160,870 Diluted 157,016 158,571 160,087 158,558 160,895 161,146 162,171 163,179 161,847 (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 zero percentage points for the three months ended September 30, 2024, one percentage point for the three months ended June 30, 2024, and zero percentage points for the three months ended March 31, 2024, December 31, 2023, September 30, 2023, June 30, 2023 and March 31, 2023. 2023 (1)The ratio of losses incurred to net earned premiums. Consolidated Statements of Income (amounts in thousands, except per share amounts) 2024 Page 3

 
Enact Holdings, Inc. Financial Supplement Third Quarter 2024 September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 Assets Investments: Fixed maturity securities available-for-sale, at fair value $5,652,399 $5,331,345 $5,351,138 $5,266,141 $4,990,692 $4,915,039 $4,929,627 Short term investments 1,550 12,313 9,963 20,219 18,173 10,849 2,185 Total investments 5,653,949 5,343,658 5,361,101 5,286,360 5,008,865 4,925,888 4,931,812 Cash and cash equivalents 673,363 699,035 614,330 615,683 677,990 691,416 621,621 Accrued investment income 45,954 45,317 43,450 41,559 42,051 37,726 35,945 Deferred acquisition costs 24,160 24,619 24,861 25,006 25,572 25,843 25,954 Premiums receivable 48,834 48,698 43,927 45,070 44,310 43,525 42,005 Other assets 100,723 98,929 126,644 88,306 82,196 80,363 77,026 Deferred tax asset 50,063 89,116 89,370 88,489 119,704 119,099 107,868 Total assets $6,597,046 $6,349,372 $6,303,683 $6,190,473 $6,000,688 $5,923,860 $5,842,231 Liabilities and Shareholder's Interest Liabilities: Loss reserves $510,401 $508,138 $531,443 $518,191 $501,093 $490,203 $501,427 Unearned premiums 121,382 129,870 138,886 149,330 161,580 174,561 188,680 Other liabilities 186,312 143,167 173,500 145,189 136,057 139,100 112,043 Long-term borrowings 742,706 742,368 746,090 745,416 744,752 744,100 743,460 Total liabilities 1,560,801 1,523,543 1,589,919 1,558,126 1,543,482 1,547,964 1,545,610 Equity: Common stock 1,544 1,561 1,577 1,593 1,600 1,602 1,619 Additional paid-in capital 2,145,518 2,220,903 2,264,198 2,310,891 2,322,622 2,324,527 2,362,281 Accumulated other comprehensive income (101,984) (236,305) (237,477) (230,400) (400,349) (345,243) (320,242) Retained earnings 2,991,167 2,839,670 2,685,466 2,550,263 2,533,333 2,395,010 2,252,963 Total equity $5,036,245 $4,825,829 $4,713,764 $4,632,347 $4,457,206 $4,375,896 $4,296,621 Total liabilities and equity $6,597,046 $6,349,372 $6,303,683 $6,190,473 $6,000,688 $5,923,860 $5,842,231 Book value per share $32.61 $30.91 $29.89 $29.07 $27.86 $27.31 $26.53 Book value per share excluding accumulated other comprehensive income $33.27 $32.43 $31.40 $30.52 $30.36 $29.46 $28.51 U.S. GAAP ROE (1) 14.7 % 15.4 % 13.8 % 13.8 % 14.9 % 15.5 % 16.8 % Net investment (gains) losses 0.1 % 0.6 % 0.6 % 0.1 % 0.0 % 1.2 % 0.0 % Costs associated with reorganization 0.1 % 0.3 % 0.0 % 0.0 % 0.0 % 0.0 % (0.1)% (Gains) losses on early extinguishment of debt 0.0 % 0.9 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % Taxes on adjustments 0.0 % (0.4)% (0.1)% 0.0 % 0.0 % (0.3)% 0.0 % Adjusted Operating ROE(2) 14.8 % 16.9 % 14.2 % 13.9 % 14.9 % 16.4 % 16.7 % Debt to capital ratio 13 % 13 % 14 % 14 % 14 % 15 % 15 % (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. (1) Calculated as annualized net 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 2024 Total Direct NIW % of NIW NIW % of NIW NIW % of NIW NIW % of NIW NIW % of NIW NIW % of NIW NIW % of NIW NIW % of NIW NIW % of NIW Product Primary $13,591 100 % $13,619 100 % $10,526 100 % $37,736 100 % $10,453 100 % $14,391 100 % $15,083 100 % $13,154 100 % $53,081 100 % Pool 0 - % 0 - % 0 - % 0 - % 0 - % 0 - % 0 - % 0 - % 0 - % Total $13,591 100 % $13,619 100 % $10,526 100 % $37,736 100 % $10,453 100 % $14,391 100 % $15,083 100 % $13,154 100 % $53,081 100 % Primary Only Origination Purchase $12,982 96 % $13,173 97 % $10,072 96 % $36,227 96 % $10,169 97 % $14,073 98 % $14,720 98 % $12,761 97 % $51,723 97 % Refinance 609 4 % 446 3 % 454 4 % 1,509 4 % 284 3 % 318 2 % 363 2 % 393 3 % 1,358 3 % Total Primary $13,591 100 % $13,619 100 % $10,526 100 % $37,736 100 % $10,453 100 % $14,391 100 % $15,083 100 % $13,154 100 % $53,081 100 % Payment Type Monthly $12,851 95 % $13,177 97 % $10,034 95 % $36,062 96 % $10,187 98 % $14,099 98 % $14,774 98 % $12,809 97 % $51,869 98 % Single 722 5 % 422 3 % 475 5 % 1,619 4 % 246 2 % 269 2 % 281 2 % 318 3 % 1,114 2 % Other(1) 18 - % 20 - % 17 - % 55 - % 20 - % 23 - % 28 - % 27 - % 98 - % Total Primary $13,591 100 % $13,619 100 % $10,526 100 % $37,736 100 % $10,453 100 % $14,391 100 % $15,083 100 % $13,154 100 % $53,081 100 % FICO Scores Over 760 $6,433 47 % $6,471 47 % $5,218 49 % $18,122 48 % $5,086 49 % $6,679 46 % $6,911 46 % $6,004 46 % $24,680 46 % 740 - 759 2,172 16 % 2,113 16 % 1,664 16 % 5,949 16 % 1,680 16 % 2,438 17 % 2,608 17 % 2,268 17 % 8,994 17 % 720 - 739 1,855 14 % 1,839 13 % 1,368 13 % 5,062 13 % 1,378 13 % 1,928 13 % 2,097 14 % 1,817 14 % 7,220 14 % 700 - 719 1,398 10 % 1,334 10 % 990 9 % 3,722 10 % 997 10 % 1,422 10 % 1,499 10 % 1,296 10 % 5,214 10 % 680 - 699 905 7 % 893 7 % 629 6 % 2,427 6 % 664 6 % 974 7 % 1,060 7 % 954 7 % 3,652 7 % 660 - 679(2) 446 3 % 562 4 % 388 4 % 1,396 4 % 409 4 % 592 4 % 568 4 % 517 4 % 2,086 4 % 640 - 659 268 2 % 289 2 % 193 2 % 750 2 % 181 2 % 282 2 % 260 2 % 229 2 % 952 2 % 620 - 639 105 1 % 111 1 % 73 1 % 289 1 % 53 - % 74 1 % 76 - % 65 - % 268 - % <620 9 - % 7 - % 3 - % 19 - % 5 - % 2 - % 4 - % 4 - % 15 - % Total Primary $13,591 100 % $13,619 100 % $10,526 100 % $37,736 100 % $10,453 100 % $14,391 100 % $15,083 100 % $13,154 100 % $53,081 100 % Weighted Avg FICO 749 749 751 750 751 749 749 748 749 Loan-To-Value Ratio 95.01% and above $2,766 20 % $2,707 20 % $2,262 21 % $7,735 21 % $1,820 18 % $2,677 18 % $2,692 18 % $2,106 16 % $9,295 18 % 90.01% to 95.00% 5,232 39 % 5,228 38 % 3,876 37 % 14,336 38 % 3,759 36 % 5,431 38 % 5,743 38 % 4,928 38 % 19,861 37 % 85.01% to 90.00% 4,044 30 % 4,190 31 % 3,177 30 % 11,411 30 % 3,489 33 % 4,568 32 % 4,753 31 % 4,390 33 % 17,200 32 % 85.00% and below 1,549 11 % 1,494 11 % 1,211 12 % 4,254 11 % 1,385 13 % 1,715 12 % 1,895 13 % 1,730 13 % 6,725 13 % Total Primary $13,591 100 % $13,619 100 % $10,526 100 % $37,736 100 % $10,453 100 % $14,391 100 % $15,083 100 % $13,154 100 % $53,081 100 % Weighted Avg LTV 93 % 93 % 93 % 93 % 92 % 93 % 93 % 92 % 93 % Debt-To-Income Ratio 45.01% and above $3,742 28 % $4,039 30 % $3,165 30 % $10,946 29 % $3,158 30 % $4,437 31 % $4,467 30 % $3,538 27 % $15,600 29 % 38.01% to 45.00% 5,026 37 % 5,036 37 % 3,824 36 % 13,886 37 % 3,816 37 % 4,936 34 % 5,214 34 % 4,940 38 % 18,906 36 % 38.00% and below 4,823 35 % 4,544 33 % 3,537 34 % 12,904 34 % 3,479 33 % 5,018 35 % 5,402 36 % 4,676 35 % 18,575 35 % Total Primary $13,591 100 % $13,619 100 % $10,526 100 % $37,736 100 % $10,453 100 % $14,391 100 % $15,083 100 % $13,154 100 % $53,081 100 % Weighted Avg DTI 40 % 40 % 40 % 40 % 40 % 40 % 40 % 40 % 40 % Avg loan size (thousands) $362 $363 $366 $363 $353 $357 $357 $356 $356 (2)Loans with unknown FICO scores are included in the 660-679 category. (1)Includes loans with annual and split payment types. Direct New Insurance Written Metrics (amounts in millions) 3Q Total1Q2Q 2023 4QTotal1Q3Q 2024 2Q Page 5

 
Enact Holdings, Inc. Financial Supplement Third Quarter 2024 Total Direct IIF % of IIF IIF % of IIF IIF % of IIF IIF % of IIF IIF % of IIF IIF % of IIF IIF % of IIF Product Primary $268,003 100 % $266,060 100 % $263,645 100 % $262,937 100 % $262,014 100 % $257,816 100 % $252,516 100 % Pool 394 - % 408 - % 422 - % 436 - % 451 - % 469 - % 486 - % Total $268,397 100 % $266,468 100 % $264,067 100 % $263,373 100 % $262,465 100 % $258,285 100 % $253,002 100 % Primary Only Origination Purchase $242,514 90 % $238,699 90 % $234,211 89 % $231,526 88 % $228,431 87 % $221,942 86 % $214,339 85 % Refinance 25,489 10 % 27,361 10 % 29,434 11 % 31,411 12 % 33,583 13 % 35,874 14 % 38,177 15 % Total Primary $268,003 100 % $266,060 100 % $263,645 100 % $262,937 100 % $262,014 100 % $257,816 100 % $252,516 100 % Payment Type Monthly $240,369 89 % $237,721 89 % $234,747 89 % $233,651 89 % $232,150 88 % $227,312 88 % $221,482 88 % Single 25,844 10 % 26,495 10 % 27,013 10 % 27,353 10 % 27,853 11 % 28,439 11 % 28,918 11 % Other(1) 1,790 1 % 1,844 1 % 1,885 1 % 1,933 1 % 2,011 1 % 2,065 1 % 2,116 1 % Total Primary $268,003 100 % $266,060 100 % $263,645 100 % $262,937 100 % $262,014 100 % $257,816 100 % $252,516 100 % Book Year 2008 and prior $5,011 2 % $5,238 2 % $5,420 2 % $5,621 2 % $5,859 2 % $6,135 2 % $6,377 3 % 2009-2016 5,933 2 % 6,725 2 % 7,368 3 % 8,042 3 % 8,767 3 % 9,585 4 % 10,403 4 % 2017 4,205 2 % 4,618 2 % 5,015 2 % 5,321 2 % 5,582 2 % 5,878 2 % 6,201 2 % 2018 5,037 2 % 5,300 2 % 5,524 2 % 5,750 2 % 5,993 2 % 6,270 2 % 6,570 3 % 2019 11,924 4 % 12,524 5 % 13,126 5 % 13,773 5 % 14,372 6 % 15,026 6 % 15,691 6 % 2020 36,958 14 % 39,502 15 % 42,183 16 % 44,486 17 % 46,881 18 % 49,522 19 % 52,389 21 % 2021 60,342 22 % 63,582 24 % 66,971 25 % 70,045 27 % 73,141 28 % 76,381 30 % 79,377 31 % 2022 54,878 20 % 56,456 21 % 58,051 22 % 59,267 23 % 60,258 23 % 61,390 24 % 62,481 25 % 2023 47,387 18 % 48,520 18 % 49,556 19 % 50,632 19 % 41,161 16 % 27,629 11 % 13,027 5 % 2024 36,328 14 % 23,595 9 % 10,431 4 % 0 - % 0 - % 0 - % 0 - % Total Primary $268,003 100 % $266,060 100 % $263,645 100 % $262,937 100 % $262,014 100 % $257,816 100 % $252,516 100 % (1)Includes loans with annual and split payment types. 4Q 3Q1Q Direct Insurance In-Force (IIF) Metrics Excludes run-off business, which is immaterial to our results (amounts in millions) 1Q 2023 2Q3Q 2024 2Q Page 6

 
Enact Holdings, Inc. Financial Supplement Third Quarter 2024 IIF % of IIF IIF % of IIF IIF % of IIF IIF % of IIF IIF % of IIF IIF % of IIF IIF % of IIF FICO Scores Over 760 $114,424 43 % $113,115 43 % $111,589 43 % $110,635 42 % $109,701 42 % $107,427 42 % $104,635 42 % 740 - 759 43,793 17 % 43,485 17 % 43,155 17 % 43,053 17 % 42,899 16 % 42,074 16 % 40,983 16 % 720 - 739 37,671 14 % 37,407 14 % 37,068 14 % 37,020 14 % 36,889 14 % 36,324 14 % 35,554 14 % 700 - 719 29,910 11 % 29,781 11 % 29,679 11 % 29,766 11 % 29,818 12 % 29,514 12 % 29,160 12 % 680 - 699 21,557 8 % 21,596 8 % 21,628 8 % 21,835 8 % 21,993 9 % 21,908 9 % 21,717 9 % 660 - 679(1) 11,391 4 % 11,417 4 % 11,316 4 % 11,357 4 % 11,351 4 % 11,188 4 % 11,057 4 % 640 - 659 6,179 2 % 6,167 2 % 6,109 2 % 6,137 3 % 6,166 2 % 6,133 2 % 6,114 2 % 620 - 639 2,495 1 % 2,491 1 % 2,488 1 % 2,504 1 % 2,548 1 % 2,576 1 % 2,604 1 % <620 583 - % 601 - % 613 - % 630 - % 649 - % 672 - % 692 - % Total Primary $268,003 100 % $266,060 100 % $263,645 100 % $262,937 100 % $262,014 100 % $257,816 100 % $252,516 100 % Weighted Avg FICO 745 745 744 744 744 744 744 Loan-To-Value Ratio 95.01% and above $49,363 18 % $47,837 18 % $46,259 17 % $44,955 17 % $44,071 17 % $42,459 16 % $40,776 16 % 90.01% to 95.00% 111,992 42 % 110,825 42 % 109,566 42 % 109,227 41 % 109,019 42 % 107,448 42 % 105,336 42 % 85.01% to 90.00% 79,628 30 % 79,132 30 % 78,214 30 % 77,887 30 % 77,121 29 % 75,521 29 % 73,756 29 % 85.00% and below 27,020 10 % 28,266 10 % 29,606 11 % 30,868 12 % 31,803 12 % 32,388 13 % 32,648 13 % Total Primary $268,003 100 % $266,060 100 % $263,645 100 % $262,937 100 % $262,014 100 % $257,816 100 % $252,516 100 % Weighted Avg LTV 93 % 93 % 93 % 93 % 93 % 93 % 93 % Debt-To-Income Ratio 45.01% and above $58,718 22 % $57,044 21 % $54,943 21 % $53,440 20 % $51,810 20 % $48,990 19 % $46,049 18 % 38.01% to 45.00% 96,861 36 % 95,760 36 % 94,459 36 % 93,871 36 % 93,228 35 % 91,671 36 % 89,768 36 % 38.00% and below 112,424 42 % 113,256 43 % 114,243 43 % 115,626 44 % 116,976 45 % 117,155 45 % 116,699 46 % Total Primary $268,003 100 % $266,060 100 % $263,645 100 % $262,937 100 % $262,014 100 % $257,816 100 % $252,516 100 % Weighted Avg DTI 38 % 38 % 38 % 38 % 38 % 38 % 38 % Primary persistency rate 83 % 83 % 85 % 86 % 84 % 84 % 85 % Avg loan size (thousands) $277 $274 $272 $270 $268 $265 $262 (1)Loans with unknown FICO scores are included in the 660-679 category. 4Q1Q Direct Insurance In-Force (IIF) Metrics Excludes run-off business, which is immaterial to our results (amounts in millions) 1Q2Q 2023 3Q3Q 2024 2Q Page 7

 
Enact Holdings, Inc. Financial Supplement Third Quarter 2024 Total Direct RIF % of RIF RIF % of RIF RIF % of RIF RIF % of RIF RIF % of RIF RIF % of RIF RIF % of RIF Product Primary $69,611 100 % $68,878 100 % $67,950 100 % $67,529 100 % $67,056 100 % $65,714 100 % $64,106 100 % Pool 60 - % 65 - % 67 - % 69 - % 70 - % 73 - % 76 - % Total $69,671 100 % $68,943 100 % $68,017 100 % $67,598 100 % $67,126 100 % $65,787 100 % $64,182 100 % Primary Only Origination Purchase $63,622 91 % $62,553 91 % $61,263 90 % $60,497 90 % $59,640 89 % $57,891 88 % $55,870 87 % Refinance 5,989 9 % 6,325 9 % 6,687 10 % 7,032 10 % 7,416 11 % 7,823 12 % 8,236 13 % Total Primary $69,611 100 % $68,878 100 % $67,950 100 % $67,529 100 % $67,056 100 % $65,714 100 % $64,106 100 % Payment Type Monthly $63,582 91 % $62,649 91 % $61,606 91 % $61,083 90 % $60,498 90 % $59,018 90 % $57,289 89 % Single 5,575 8 % 5,762 8 % 5,867 8 % 5,957 9 % 6,050 9 % 6,175 9 % 6,284 10 % Other(1) 454 1 % 467 1 % 477 1 % 489 1 % 508 1 % 521 1 % 533 1 % Total Primary $69,611 100 % $68,878 100 % $67,950 100 % $67,529 100 % $67,056 100 % $65,714 100 % $64,106 100 % Book Year 2008 and prior $1,296 2 % $1,351 2 % $1,397 2 % $1,449 2 % $1,510 2 % $1,581 2 % $1,643 3 % 2009-2016 1,552 2 % 1,767 2 % 1,943 3 % 2,129 3 % 2,331 4 % 2,556 4 % 2,776 4 % 2017 1,114 2 % 1,221 2 % 1,324 2 % 1,403 2 % 1,471 2 % 1,549 2 % 1,632 3 % 2018 1,297 2 % 1,363 2 % 1,419 2 % 1,476 2 % 1,535 2 % 1,601 3 % 1,672 3 % 2019 3,113 4 % 3,261 5 % 3,403 5 % 3,544 5 % 3,676 5 % 3,831 6 % 3,989 6 % 2020 10,042 14 % 10,601 15 % 11,181 16 % 11,697 17 % 12,228 18 % 12,827 20 % 13,484 21 % 2021 15,710 23 % 16,422 24 % 17,174 25 % 17,846 27 % 18,524 28 % 19,245 29 % 19,917 31 % 2022 13,892 20 % 14,254 21 % 14,629 22 % 14,907 22 % 15,129 23 % 15,392 23 % 15,647 24 % 2023 12,271 18 % 12,552 18 % 12,810 19 % 13,078 20 % 10,652 16 % 7,132 11 % 3,346 5 % 2024 9,324 13 % 6,086 9 % 2,670 4 % 0 - % 0 - % 0 - % 0 - % Total Primary $69,611 100 % $68,878 100 % $67,950 100 % $67,529 100 % $67,056 100 % $65,714 100 % $64,106 100 % (1)Includes loans with annual and split payment types. Direct Risk In-Force (RIF) Metrics Excludes run-off business, which is immaterial to our results (amounts in millions) 1Q2Q4Q 3Q 2023 1Q3Q 2024 2Q Page 8

 
Enact Holdings, Inc. Financial Supplement Third Quarter 2024 RIF % of RIF RIF % of RIF RIF % of RIF RIF % of RIF RIF % of RIF RIF % of RIF RIF % of RIF FICO Scores Over 760 $29,644 43 % $29,219 43 % $28,703 42 % $28,363 42 % $28,014 42 % $27,305 42 % $26,480 41 % 740 - 759 11,423 17 % 11,305 17 % 11,167 17 % 11,096 17 % 11,009 17 % 10,749 16 % 10,418 16 % 720 - 739 9,912 14 % 9,809 14 % 9,669 14 % 9,621 14 % 9,553 14 % 9,368 14 % 9,126 14 % 700 - 719 7,751 11 % 7,688 11 % 7,629 11 % 7,623 11 % 7,615 12 % 7,516 12 % 7,406 12 % 680 - 699 5,553 8 % 5,540 8 % 5,524 8 % 5,557 8 % 5,582 8 % 5,543 9 % 5,481 9 % 660 - 679(1) 2,951 4 % 2,948 4 % 2,908 4 % 2,908 4 % 2,901 4 % 2,850 4 % 2,809 4 % 640 - 659 1,592 2 % 1,582 2 % 1,562 3 % 1,565 3 % 1,569 2 % 1,558 2 % 1,549 3 % 620 - 639 636 1 % 634 1 % 632 1 % 635 1 % 647 1 % 653 1 % 660 1 % <620 149 - % 153 - % 156 - % 161 - % 166 - % 172 - % 177 - % Total Primary $69,611 100 % $68,878 100 % $67,950 100 % $67,529 100 % $67,056 100 % $65,714 100 % $64,106 100 % Loan-To-Value Ratio 95.01% and above $14,141 20 % $13,722 20 % $13,250 20 % $12,878 19 % $12,595 19 % $12,086 18 % $11,545 18 % 90.01% to 95.00% 32,579 47 % 32,254 47 % 31,881 47 % 31,781 47 % 31,696 47 % 31,220 48 % 30,589 48 % 85.01% to 90.00% 19,649 28 % 19,510 28 % 19,265 28 % 19,163 28 % 18,945 28 % 18,518 28 % 18,054 28 % 85.00% and below 3,242 5 % 3,392 5 % 3,554 5 % 3,707 6 % 3,820 6 % 3,890 6 % 3,918 6 % Total Primary $69,611 100 % $68,878 100 % $67,950 100 % $67,529 100 % $67,056 100 % $65,714 100 % $64,106 100 % Debt-To-Income Ratio 45.01% and above $15,353 22 % $14,867 22 % $14,265 21 % $13,830 20 % $13,369 20 % $12,589 19 % $11,782 18 % 38.01% to 45.00% 25,052 36 % 24,706 36 % 24,289 36 % 24,072 36 % 23,846 36 % 23,378 36 % 22,830 36 % 38.00% and below 29,206 42 % 29,305 42 % 29,396 43 % 29,627 44 % 29,841 44 % 29,747 45 % 29,494 46 % Total Primary $69,611 100 % $68,878 100 % $67,950 100 % $67,529 100 % $67,056 100 % $65,714 100 % $64,106 100 % (1)Includes loans with annual and split payment types. 4Q Direct Risk In-Force (RIF) Metrics Excludes run-off business, which is immaterial to our results (amounts in millions) 1Q2Q 2023 3Q1Q3Q 2024 2Q Page 9

 
Enact Holdings, Inc. Financial Supplement Third Quarter 2024 3Q 2Q 1Q 4Q 3Q 2Q 1Q Beginning Number of Primary Delinquencies 19,051 19,492 20,432 19,241 18,065 18,633 19,943 New delinquencies 12,964 10,461 11,395 11,706 11,107 9,205 9,599 Delinquency cures (10,749) (10,731) (12,160) (10,317) (9,778) (9,609) (10,771) Paid claims (220) (160) (172) (186) (147) (156) (126) Rescissions and claim denials (19) (11) (3) (12) (6) (8) (12) Ending Number of Primary Delinquencies 21,027 19,051 19,492 20,432 19,241 18,065 18,633 Primary Policies in Force (count) 967,501 969,767 969,866 974,516 977,832 973,280 965,544 Primary delinquency rate 2.17 % 1.96 % 2.01 % 2.10 % 1.97 % 1.86 % 1.93 % Incurred Losses: Direct primary case(1) $6,993 ($17,260) $15,540 $23,712 $14,101 ($4,949) ($12,141) All other(1) 5,171 439 3,961 660 3,746 879 1,157 Total Incurred Losses $12,164 ($16,821) $19,501 $24,372 $17,847 ($4,070) ($10,984) Direct Primary Case Incurred Losses(2) Current quarter delinquencies(3) $75,193 $59,763 $74,087 $76,859 $71,524 $58,414 $57,963 Development of current quarter delinquencies(4) 0 0 0 0 0 0 0 Prior period development and other (68,200) (77,023) (58,547) (53,147) (57,423) (63,363) (70,104) Direct Primary Case Incurred Losses $6,993 ($17,260) $15,540 $23,712 $14,101 ($4,949) ($12,141) Reserves: Direct primary case(1) $460,513 $462,247 $485,791 $476,709 $459,916 $451,506 $462,287 All other(1) 49,888 45,891 45,652 41,482 41,177 38,697 39,140 Total Reserves $510,401 $508,138 $531,443 $518,191 $501,093 $490,203 $501,427 Beginning Direct Primary Case Reserves $462,247 $485,791 $476,709 $459,916 $451,506 $462,287 $479,343 Paid claims (8,727) (6,284) (6,458) (6,919) (5,691) (5,832) (4,915) Change in reserves 6,993 (17,260) 15,540 23,712 14,101 (4,949) (12,141) Ending Direct Primary Case Reserves $460,513 $462,247 $485,791 $476,709 $459,916 $451,506 $462,287 Average Reserve Per Primary Delinquency (5) $21.9 $24.3 $24.9 $23.3 $23.9 $25.0 $24.8 Average Direct Primary Paid Claim (6) $39.7 $39.3 $37.5 $37.2 $38.7 $37.4 $39.0 Delinquency Metrics Primary metrics exclude run-off business, which is immaterial to our results (dollar amounts in thousands) 2023 (5) Direct primary case reserves divided by primary delinquency count. (6) Average direct primary paid claim is calculated by dividing paid claims on direct primary case reserves by the number of paid claims for the quarter. Average paid claims in the third quarter of 2024, second quarter of 2024, first quarter of 2024, and fourth quarter of 2023 include payments in relation to agreements on non-performing loans. Prior periods have been reclassified to conform to current period presentation. (2) Provides additional breakdown of incurred losses, which includes the impact of new delinquencies within each quarterly period reported. We believe providing loss information in this manner allows transparency and consistency for investors to understand performance. (3) Defaulted loans with most recent delinquency notice in the quarter indicated. (1) Direct primary case excludes loss adjustment expenses (LAE), pool, incurred but not reported (IBNR) and reinsurance reserves. (4) Development of current quarter delinquencies within the current quarter. This includes reserve impact from current period delinquencies that cure in the period and reserve development from the date of delinquency to quarter end. 2024 Page 10

 
Enact Holdings, Inc. Financial Supplement Third Quarter 2024 Percentage Reserved by Payment Status Delinquencies Case Reserves Risk In- Force Reserves as % of RIF Delinquencies Case Reserves Risk In- Force Reserves as % of RIF Delinquencies Case Reserves Risk In- Force Reserves as % of RIF 3 payments or less in default 11,132 $102 $715 14 % 10,166 $88 $629 14 % 9,398 $80 $568 14 % 4 - 11 payments in default 6,831 188 477 39 % 6,934 205 469 44 % 6,381 192 426 45 % 12 payments or more in default 3,064 171 202 85 % 3,332 184 200 92 % 3,462 188 201 94 % Total 21,027 $461 $1,394 33 % 20,432 $477 $1,298 37 % 19,241 $460 $1,195 38 % December 31, 2023 September 30, 2023 Missed Payment Status Tables - Direct Primary Excludes run-off business, which is immaterial to our results (dollar amounts in millions) September 30, 2024 Page 11

 
Enact Holdings, Inc. Financial Supplement Third Quarter 2024 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 13% 12% 2.27% Phoenix, AZ MSA 3% 3% 2.10% Texas 9% 9% 2.64% Chicago-Naperville, IL MD 3% 4% 2.95% 2008 and prior 2% 12% 8.16% 5.55% Florida (3) 8% 11% 2.49% Atlanta, GA MSA 3% 3% 2.68% 2009-2016 2% 7% 4.30% 0.61% New York (3) 5% 11% 3.19% New York, NY MD 2% 6% 3.37% 2017 2% 4% 4.06% 0.83% Illinois (3) 4% 6% 2.67% Houston, TX MSA 2% 3% 3.92% 2018 2% 5% 4.23% 0.91% Arizona 4% 3% 2.05% Dallas, TX MD 2% 2% 2.29% 2019 4% 8% 3.02% 0.84% Michigan 4% 3% 1.90% Washington-Arlington, DC MD 2% 2% 1.95% 2020 14% 15% 1.92% 0.88% Georgia 3% 4% 2.48% Riverside-San Bernardino, CA MSA 2% 3% 2.92% 2021 23% 22% 1.90% 1.33% North Carolina 3% 2% 1.69% Los Angeles-Long Beach, CA MD 2% 2% 2.36% 2022 20% 18% 1.99% 1.77% Pennsylvania 3% 3% 2.11% Denver-Aurora-Lakewood, CO MSA 2% 1% 1.13% 2023 18% 8% 1.27% 1.18% All Other States (4) 44% 36% 1.92% All Other MSAs/MDs 77% 71% 2.06% 2024 13% 1% 0.27% 0.27% Total 100% 100% 2.17% Total 100% 100% 2.17% Total 100% 100% 2.17% 4.15% 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 13% 12% 2.22% Phoenix, AZ MSA 3% 2% 2.01% Texas 8% 8% 2.22% Chicago-Naperville, IL MD 3% 4% 2.88% 2008 and prior 2% 18% 8.61% 5.56% Florida (3) 8% 9% 2.39% Atlanta, GA MSA 3% 3% 2.40% 2009-2015 1% 4% 4.55% 0.63% New York (3) 5% 12% 3.05% New York, NY MD 2% 7% 3.60% 2016 2% 4% 3.20% 0.67% Illinois (3) 4% 6% 2.61% Washington-Arlington, DC MD 2% 2% 2.01% 2017 2% 5% 3.59% 0.87% Arizona 4% 3% 1.93% Houston, TX MSA 2% 3% 2.67% 2018 2% 6% 4.42% 1.02% Michigan 4% 3% 1.94% Los Angeles-Long Beach, CA MD 2% 2% 2.39% 2019 5% 8% 2.77% 0.85% Georgia 3% 3% 2.23% Dallas, TX MD 2% 2% 1.92% 2020 17% 15% 1.70% 0.90% North Carolina 3% 2% 1.56% Riverside-San Bernardino, CA MSA 2% 3% 2.83% 2021 27% 21% 1.65% 1.29% Washington 3% 2% 1.77% Denver-Aurora-Lakewood, CO MSA 2% 1% 1.12% 2022 22% 16% 1.57% 1.46% All Other States (4) 45% 40% 1.93% All Other MSAs/MDs 77% 71% 2.01% 2023 20% 3% 0.47% 0.46% Total 100% 100% 2.10% Total 100% 100% 2.10% Total 100% 100% 2.10% 4.19% 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 13% 12% 2.10% Phoenix, AZ MSA 3% 2% 1.77% Texas 8% 8% 2.12% Chicago-Naperville, IL MD 3% 4% 2.67% 2008 and prior 2% 20% 8.67% 5.56% Florida (3) 8% 9% 2.16% Atlanta, GA MSA 3% 3% 2.32% 2009-2015 2% 5% 4.20% 0.64% New York (3) 5% 12% 2.89% New York, NY MD 2% 8% 3.62% 2016 2% 4% 3.07% 0.68% Illinois (3) 4% 6% 2.40% Washington-Arlington, DC MD 2% 2% 1.75% 2017 2% 6% 3.62% 0.90% Arizona 4% 2% 1.74% Houston, TX MSA 2% 3% 2.69% 2018 2% 6% 4.18% 0.99% Michigan 4% 3% 1.72% Los Angeles-Long Beach, CA MD 2% 2% 2.28% 2019 5% 9% 2.58% 0.81% Georgia 3% 3% 2.14% Riverside-San Bernardino, CA MSA 2% 3% 2.71% 2020 18% 15% 1.53% 0.84% North Carolina 3% 2% 1.41% Dallas, TX MD 2% 1% 1.69% 2021 28% 21% 1.48% 1.19% Washington 3% 2% 1.64% Denver-Aurora-Lakewood, CO MSA 2% 1% 1.07% 2022 23% 13% 1.28% 1.20% All Other States (4) 45% 41% 1.84% All Other MSAs/MDs 77% 71% 1.88% 2023 16% 1% 0.25% 0.24% Total 100% 100% 1.97% Total 100% 100% 1.97% Total 100% 100% 1.97% 4.19% (4) Includes the District of Columbia. Delinquency Performance - Direct Primary Excludes run-off business, which is immaterial to our results September 30, 2024 September 30, 2023 (1) Direct primary case reserves exclude pool, 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. December 31, 2023 Page 12

 
Enact Holdings, Inc. Financial Supplement Third Quarter 2024 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 $289,159 5 % $303,543 6 % $250,449 5 % $195,129 4 % $147,108 3 % $110,538 2 % $42,709 1 % Municipals 456,606 8 % 432,929 8 % 442,440 8 % 438,214 8 % 407,538 8 % 426,528 9 % 431,778 9 % Non-U.S. government 48,267 1 % 11,405 - % 11,381 - % 11,467 - % 11,123 - % 11,206 - % 9,493 - % U.S. corporate 2,871,882 51 % 2,646,014 50 % 2,745,314 51 % 2,723,730 52 % 2,557,480 52 % 2,509,479 51 % 2,679,485 54 % Non-U.S. corporate 759,329 13 % 696,573 13 % 686,637 13 % 689,663 13 % 655,284 13 % 640,050 13 % 630,502 13 % Residential MBS 8,321 - % 9,404 - % 9,754 - % 10,755 - % 10,233 - % 9,474 - % 10,344 - % Other asset-backed 1,218,835 22 % 1,231,477 23 % 1,205,163 23 % 1,197,183 23 % 1,201,926 24 % 1,207,764 25 % 1,125,316 23 % Total available-for-sale fixed maturity securities $5,652,399 100 % $5,331,345 100 % $5,351,138 100 % $5,266,141 100 % $4,990,692 100 % $4,915,039 100 % $4,929,627 100 % Fixed Maturity Securities - Credit Quality NRSRO(1) Designation AAA $599,829 11 % $587,795 11 % $556,749 10 % $546,251 10 % $526,953 11 % $625,921 13 % $513,462 10 % AA 1,225,680 22 % 1,184,209 22 % 1,131,317 21 % 1,047,379 20 % 970,649 19 % 821,456 17 % 779,674 16 % A 1,767,252 31 % 1,683,198 32 % 1,711,854 32 % 1,721,779 33 % 1,645,093 33 % 1,633,133 33 % 1,684,218 34 % BBB 1,978,958 35 % 1,812,275 34 % 1,851,947 35 % 1,851,592 35 % 1,742,018 35 % 1,741,647 35 % 1,856,810 38 % BB & Lower 80,680 1 % 63,868 1 % 99,271 2 % 99,140 2 % 105,979 2 % 92,882 2 % 95,463 2 % Total fixed maturity securities $5,652,399 100 % $5,331,345 100 % $5,351,138 100 % $5,266,141 100 % $4,990,692 100 % $4,915,039 100 % $4,929,627 100 % Average duration 3.9 3.7 3.7 3.5 3.5 3.7 3.6 Average book yield 3.9 % 3.8 % 3.7 % 3.6 % 3.5 % 3.4 % 3.2 % (1)Nationally Recognized Statistical Rating Organizations. December 31, 2023 September 30, 2023 Composition of Consolidated Investments at Fair Value (amounts in thousands) March 31, 2023June 30, 2023March 31, 2024September 30, 2024 June 30, 2024 Page 13

 
Enact Holdings, Inc. Financial Supplement Third Quarter 2024 2021-2 ILN 2021-3 ILN 2023-1 ILN 2021 XOL 2022-1 XOL 2022-2 XOL 2022-3 XOL 2022-4 XOL 2022-5 XOL 2023-1 XOL 2024-1 XOL 2024-2 XOL 2023-1 QSR 2024-1 QSR 9/20-12/20 1/21-6/21 7/22-6/23 Full Year 2021 Full Year 2022 Full Year 2022 7/21-12/21 7/21-12/21 1/22-6/22 Full Year 2023 Full Year 2024 7/23-12/23 Full Year 2023 Full Year 2024 At Closing Initial Risk In-Force $8,384 $12,141 $7,288 $22,373 $15,400 $15,400 $10,550 $10,550 $8,547 $11,991 $9,096 $5,349 $11,991 $9,096 Initial Reinsurance Amount / Ceded RIF (2) $303 $372 $248 $206 $196 $25 $289 $36 $201 $180 $180 $90 $1,934 $1,931 Initial First Loss Retention Layer $189 $304 $244 $671 $462 $385 $317 $264 $256 $360 $273 $134 n/a n/a Initial Attachment % (3) 2.25% 2.50% 3.35% 3.00% 3.00% 2.50% 3.00% 2.50% 3.00% 3.00% 3.00% 2.50% n/a n/a Initial Detachment % (3) 7.00% 6.75% 6.75% 7.00% 6.99% 3.00% 7.00% 3.00% 7.00% 6.57% 6.50% 6.50% n/a n/a % Of Covered Loss Tier Reinsured 76.00% 72.00% 100.00% 23.00% 31.92% 31.92% 68.45% 68.45% 58.80% 42.00% 56.48% 41.88% 16.13% 21.23% Commencement Date 04/16/21 09/02/21 11/15/23 01/01/21 01/01/22 01/01/22 03/01/22 03/01/22 09/01/22 01/01/23 01/01/24 06/01/24 04/01/23 01/01/24 Termination Date 10/25/33 02/25/34 11/25/33 12/31/31 12/31/32 12/31/32 12/31/31 12/31/31 12/31/32 12/31/33 12/31/34 06/30/34 04/01/34 12/31/34 Optional Call Date 04/25/28 08/25/28 11/27/28 06/30/28 12/31/29 12/31/29 12/31/28 12/31/28 01/01/30 12/31/30 12/31/31 06/30/29 12/31/26 12/31/27 Clean-Up Call 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% n/a n/a As of September 30, 2024 Current Risk In-Force (4) $4,321 $7,366 $6,779 $15,572 $13,458 $13,458 $7,960 $7,960 $7,178 $11,274 $9,096 $5,125 $11,274 $9,096 Current Reinsured Amount / Ceded RIF (2) $132 $200 $248 $97 $173 $25 $177 $36 $162 $180 $180 $90 $1,818 $1,931 PMIERs Required Asset Credit (5) $92 $142 $234 $94 $166 $24 $170 $35 $157 $173 $173 $87 $130 $130 Current Attachment % (3) 4.34% 4.10% 3.60% 4.28% 3.40% 2.82% 3.95% 3.28% 3.52% 3.19% 3.00% 2.61% n/a n/a Current Detachment % (3) 8.38% 7.86% 7.26% 7.00% 7.42% 3.40% 7.19% 3.95% 7.37% 6.99% 6.50% 6.78% n/a n/a Enact Claims Paid $1 $2 $0 $5 $5 $5 $2 $2 $3 $0 $0 $0 $0 $0 Incurred Losses Ever To Date (6) $29 $47 $36 $105 $88 $88 $53 $53 $50 $35 $3 $5 $6 $1 Remaining First Loss Retention Layer $188 $302 $244 $667 $457 $380 $314 $261 $253 $359 $273 $134 n/a n/a Reinsurer Claims Paid $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Third Party Ceded Reinsurance Transaction Summary (amounts in millions) (1) Excess of loss (XOL) and quota share (QSR) transactions are with panels of U.S. and global reinsurers. (2) The initial reinsurance amount for insurance linked notes and excess of loss reinsurance reflects the total loss coverage; Ceded RIF reflects the RIF associated with quota share reinsurance which is subject to annual and life loss ratio limits. (3) 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. (4) The total primary risk in force is $69.6B and the total current risk in force covered by a CRT is $54.7B. (5) Current PMIERs required asset credit considers the counterparty credit haircut. (6) 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; QSR = Quota Share Reinsurance - Excess of Loss (1) Reinsurance - Quota Share (1)Insurance Linked Notes Page 14

 
Enact Holdings, Inc. Financial Supplement Third Quarter 2024 3Q 2Q 1Q 4Q 3Q 2Q 1Q COMBINED(1) STAT: Statutory policyholders' surplus $1,005 $863 $765 $1,085 $1,134 $1,088 $1,193 Contingency reserves 4,290 4,242 4,148 3,960 3,923 3,800 3,679 Combined statutory capital $5,295 $5,105 $4,913 $5,045 $5,057 $4,888 $4,872 Adjusted RIF(2) $55,352 $55,365 $55,254 $58,277 $58,622 $57,671 $61,546 Combined risk-to-capital ratio ("RTC") 10.5 10.8 11.2 11.6 11.6 11.8 12.6 EMICO(3) STAT: Statutory policyholders' surplus $968 $827 $729 $1,026 $1,076 $1,030 $1,141 Contingency reserves 4,281 4,234 4,140 3,953 3,917 3,795 3,675 EMICO statutory capital $5,249 $5,061 $4,869 $4,979 $4,993 $4,825 $4,816 Adjusted RIF(2) $54,794 $54,834 $54,741 $57,788 $58,150 $57,222 $61,123 EMICO risk-to-capital ratio 10.4 10.8 11.2 11.6 11.6 11.9 12.7 PMIERs Available Assets(3) $5,194 $5,024 $4,853 $5,006 $5,268 $5,093 $5,357 PMIERs Minimum Required Assets ($3,004) ($2,967) ($2,970) ($3,119) ($3,251) ($3,135) ($3,259) Available Assets Above PMIERs Requirements(3) $2,190 $2,057 $1,883 $1,887 $2,017 $1,958 $2,098 PMIERs Sufficiency Ratio(4) 173 % 169 % 163 % 161 % 162 % 162 % 164 % (4) 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. 2023 Capital & PMIERs (dollar amounts in millions) (2) Adjusted RIF for purposes of calculating statutory RTC differs from RIF presented elsewhere in this financial supplement. In accordance with North Carolina Department of Insurance requirements, adjusted RIF excludes delinquent policies. (3) Estimated statutory capital of Enact Mortgage Insurance Corporation (EMICO), the company's primary U.S. mortgage insurance subsidiary. (1) Reflects estimated combined statutory capital position of our insurance subsidiaries. Beginning in 1Q24, combined results are limited to mortgage insurance subsidiaries. 2024 Page 15

 
v3.24.3
Cover
Nov. 06, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Nov. 06, 2024
Entity Registrant Name Enact Holdings, Inc.
Entity Incorporation, State or Country Code DE
Entity File Number 001-40399
Entity Tax Identification Number 46-1579166
Entity Address, Address Line One 8325 Six Forks Road
Entity Address, City or Town Raleigh
Entity Address, State or Province NC
Entity Address, Postal Zip Code 27615
City Area Code 919
Local Phone Number 846-4100
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common stock, par value $0.01 per share
Trading Symbol ACT
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Entity Central Index Key 0001823529
Amendment Flag false
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