Enact Holdings, Inc. · NASDAQ:ACT
Enact — Q2 2022 Earnings Presentation
15 slides from Enact's earnings presentation, Aug 2, 2022
Slide 1: Second Quarter 2022 Financial Supplement
Second Quarter 2022 Financial Supplement
Slide 2: GAAP/Non-GAAP Disclosure Discussion
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 operati
Slide 3: Consolidated Statements of Income
Consolidated Statements of Income (amounts in thousands, except per share amounts) 2022 2021 2Q 1Q Total 4Q 3Q 2Q 1Q Total REVENUES: Premiums $237,386 $234,279 $471,665 $236,864 $243,063 $242,480 $252,542 $974,949 Net investment income 35,776 35,146 70,922 35,246 35,995 34,689 35,259 141,189 Net inv
Slide 4: Consolidated Balance Sheets
Consolidated Balance Sheets (amounts in thousands, except per share amounts) June 30, 2022 March 31, 2022 December 31, 2021 September 30, 2021 June 30, 2021 March 31, 2021 Investments: Fixed maturity securities available-for-sale, at fair value $4,909,362 $5,093,084 $5,266,339 $5,376,067 $5,256,467
Slide 5: Primary New Insurance Written Metrics
Primary New Insurance Written Metrics (amounts in millions) 2022 2021 2Q 1Q Total 4Q 3Q 2Q 1Q Total Primary % of Primary % of Primary % of Primary Primary % of Primary Primary % of Primary Primary % of Primary Primary % of Primary Primary % of Primary Primary NIW Primary NIW NIW NIW NIW NIW NIW NIW
Slide 6: Insurance In-Force (IIF) Metrics
Insurance In-Force (IIF) (1) Metrics Excludes Run-off business, which is immaterial to our results (amounts in millions) 2022 2021 2Q 1Q 4Q 3Q 2Q 1Q IIF % of IIF IIF % of IIF IIF % of IIF IIF % of IIF IIF % of IIF IIF % of IIF Product Primary $237,563 100 % $231,853 100 % $226,514 100 % $222,464 100
Slide 7: Insurance In-Force (IIF) Metrics
Insurance In-Force (IIF) (1) Metrics Excludes Run-off business, which is immaterial to our results (amounts in millions) 2022 2021 2Q 1Q 4Q 3Q 2Q 1Q IIF % of IIF IIF % of IIF IIF % of IIF IIF % of IIF IIF % of IIF IIF % of IIF FICO Scores Over 760 $96,625 40 % $93,222 40 % $89,982 40 % $87,073 39 %
Slide 8: Risk In-Force (RIF) Metrics
Risk In-Force (RIF) (1) Metrics Excludes Run-off business, which is immaterial to our results (amounts in millions) 2022 2021 2Q 1Q 4Q 3Q 2Q 1Q RIF % of RIF RIF % of RIF RIF % of RIF RIF % of RIF RIF % of RIF RIF % of RIF Product Primary $59,911 100 % $58,295 100 % $56,881 100 % $55,866 100 % $54,64
Slide 9: Risk In-Force (RIF) Metrics
Risk In-Force (RIF) (1) Metrics Excludes Run-off business, which is immaterial to our results (amounts in millions) 2022 2021 2Q 1Q 4Q 3Q 2Q 1Q RIF % of RIF RIF % of RIF RIF % of RIF RIF % of RIF RIF % of RIF RIF % of RIF FICO Scores Over 760 $24,252 40 % $23,326 40 % $22,489 40 % $21,767 39 % $20,9
Slide 10: Delinquency Metrics
Delinquency Metrics Excludes Run-off business, which is immaterial to our results (dollar amounts in thousands) 2022 2022 2021 2Q 1Q 4Q 3Q 2Q 1Q Average Paid Claim (1) $50.1 $51.6 $27.2 $26.7 $63.1 $54.7 Reserves: Primary direct case(2) $525,948 $590,508 $606,102 $612,754 $588,683 $564,208 All other
Slide 11: Missed Payment Status Tables
Missed Payment Status Tables Excludes Run-off business, which is immaterial to our results (dollar amounts in millions) June 30, 2022 December 31, 2021 June 30, 2021 Direct Direct Direct Percentage Reserved by Case Risk In- Reserves Case Risk In- Reserves Case Risk In- Reserves Payment Status Delinq
Slide 12: Delinquency Performance
Delinquency Performance Excludes Run-off business, which is immaterial to our results June 30, 2022 % Case % Case Book Year RIF & % Case Cum Delq Top 10 States % RIF Delq Rate Top 10 MSAs / Metro Divisions % RIF Delq Rate % RIF Delq Rate Reserves (1) Reserves (1) Losses Reserves (1) Rate (2) Califor
Slide 13: Composition of Investments at Fair Value
Composition of Investments at Fair Value (amounts in thousands) June 30, 2022 March 31, 2022 December 31, 2021 September 30, 2021 June 30, 2021 March 31, 2021 Carrying % of Carrying % of Carrying % of Carrying % of Carrying % of Carrying % of Amount Total Amount Total Amount Total Amount Total Amoun
Slide 14: Credit Risk Transfer Transaction Summary
Credit Risk Transfer Transaction Summary (amounts in millions) 2021-1 ILN 2019 XOL -2 2019 ILN 2020 XOL 2020 ILN 2021-2 ILN 2021 XOL 2021-3 ILN 2022 XOL -3 2022 XOL -4 2022 XOL -1 2022 XOL -2 1/14-12/18, Full Year Full Year Full Year Full Year Full Year 1/19-9/19 1/20-8/20 9/20-12/20 1/21-6/21 7/21-
Slide 15: Capital & PMIERs
Capital & PMIERs (dollar amounts in millions) 2022 2021 2Q 1Q 4Q 3Q 2Q 1Q COMBINED STAT: Statutory policyholders' surplus $1,277 $1,442 $1,397 $1,558 $1,567 $1,557 Contingency reserves 3,297 3,168 3,042 2,914 2,783 2,652 Combined statutory capital $4,574 $4,610 $4,439 $4,472 $4,350 $4,209 Adjusted R