Enact Holdings, Inc. · NASDAQ:ACT
Enact — Q1 2023 Earnings Presentation
15 slides from Enact's earnings presentation, May 3, 2023
Slide 1: First Quarter 2023 Financial Supplement
First Quarter 2023 Financial Supplement
Slide 2: GAAP/Non-GAAP Disclosure Discussion
Enact Holdings, Inc. Financial Supplement First Quarter 2023 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 opera
Slide 3: Consolidated Statements of Income
Enact Holdings, Inc. Financial Supplement First Quarter 2023 2023 1Q 4Q 3Q 2Q 1Q Total REVENUES: Premiums $235,108 $232,737 $235,060 $237,386 $234,279 $939,462 Net investment income 45,341 44,896 39,493 35,776 35,146 155,311 Net investment gains (losses) (122) (1,274) (42) (381) (339) (2,036) Other
Slide 4: Consolidated Balance Sheets
Enact Holdings, Inc. Financial Supplement First Quarter 2023 March 31, 2023 December 31, 2022 September 30, 2022 June 30, 2022 March 31, 2022 Assets Investments: Fixed maturity securities available-for-sale, at fair value $4,929,627 $4,884,760 $4,877,902 $4,909,362 $5,093,084 Short term investments
Slide 5: Primary New Insurance Written
Enact Holdings, Inc. Financial Supplement First Quarter 2023 Primary NIW % of Primary NIW Primary NIW % of Primary NIW Primary NIW % of Primary NIW Primary NIW % of Primary NIW Primary NIW % of Primary NIW Primary NIW % of Primary NIW Product Primary $13,154 100 % $15,145 100 % $15,069 100 % $17,448
Slide 6: Insurance in Force
Enact Holdings, Inc. Financial Supplement First Quarter 2023 IIF % of IIF IIF % of IIF IIF % of IIF IIF % of IIF IIF % of IIF Product Primary $252,516 100 % $248,262 100 % $241,813 100 % $237,563 100 % $231,853 100 % Pool 486 - % 505 - % 531 - % 564 - % 600 - % Total $253,002 100 % $248,767 100 % $2
Slide 7: Insurance in Force by FICO and LTV
Enact Holdings, Inc. Financial Supplement First Quarter 2023 IIF % of IIF IIF % of IIF IIF % of IIF IIF % of IIF IIF % of IIF FICO Scores Over 760 $104,635 42 % $102,467 41 % $99,177 41 % $96,625 40 % $93,222 40 % 740 - 759 40,983 16 % 40,097 16 % 38,731 16 % 37,853 16 % 36,821 16 % 720 - 739 35,554
Slide 8: Risk in Force
Enact Holdings, Inc. Financial Supplement First Quarter 2023 RIF % of RIF RIF % of RIF RIF % of RIF RIF % of RIF RIF % of RIF Product Primary $64,106 100 % $62,791 100 % $61,124 100 % $59,911 100 % $58,295 100 % Pool 76 - % 79 - % 84 - % 89 - % 97 - % Total $64,182 100 % $62,870 100 % $61,208 100 %
Slide 9: Risk in Force by FICO and LTV
Enact Holdings, Inc. Financial Supplement First Quarter 2023 RIF % of RIF RIF % of RIF RIF % of RIF RIF % of RIF RIF % of RIF FICO Scores Over 760 $26,480 41 % $25,807 41 % $24,965 41 % $24,252 40 % $23,326 40 % 740 - 759 10,418 16 % 10,154 16 % 9,808 16 % 9,559 16 % 9,267 16 % 720 - 739 9,126 14 %
Slide 10: Claims, Reserves and Delinquencies
Enact Holdings, Inc. Financial Supplement First Quarter 2023 2023 1Q 4Q 3Q 2Q 1Q Average Paid Claim (1) $46.9 $48.7 $42.2 $50.1 $51.6 Reserves: Direct primary case(2) $462,287 $479,343 $476,063 $525,948 $590,508 All other(2) 39,140 39,665 34,174 32,946 34,771 Total Reserves $501,427 $519,008 $510,23
Slide 11: Missed Payment Status Tables
Enact Holdings, Inc. Financial Supplement First Quarter 2023 Percentage Reserved by Payment Status Delinquencies Direct Primary Case Reserves Risk In- Force Reserves as % of RIF Delinquencies Direct Primary Case Reserves Risk In- Force Reserves as % of RIF Delinquencies Direct Primary Case Reserves
Slide 12: Top States, MSAs and Book Years
Enact Holdings, Inc. Financial Supplement First Quarter 2023 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 12% 11% 1.99% Phoenix, AZ MSA 3% 2%
Slide 13: Investment Portfolio
Enact Holdings, Inc. Financial Supplement First Quarter 2023 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 $42,709 1 % $44,769 1 % $44,654 1 % $49,668 1 % $56,751 1 % M
Slide 14: Credit Risk Transfer Programs
Enact Holdings, Inc. Financial Supplement First Quarter 2023 2020 ILN 2021-1 ILN 2021-2 ILN 2021-3 ILN 2020 XOL 2021 XOL 2022-1 XOL 2022-2 XOL 2022-3 XOL 2022-4 XOL 2022-5 XOL 2023 XOL 1/20-8/20 1/14-12/18, 4Q'19 9/20-12/20 1/21-6/21 Full Year 2020 Full Year 2021 Full Year 2022 Full Year 2022 7/21-1
Slide 15: Statutory Capital and PMIERs
Enact Holdings, Inc. Financial Supplement First Quarter 2023 2023 1Q 4Q 3Q 2Q 1Q COMBINED STAT: Statutory policyholders' surplus $1,193 $1,136 $1,348 $1,277 $1,442 Contingency reserves 3,679 3,551 3,424 3,297 3,168 Combined statutory capital $4,872 $4,687 $4,772 $4,574 $4,610 Adjusted RIF(1) $61,546