Enact Holdings, Inc. · NASDAQ:ACT
Enact — Q2 2023 Earnings Presentation
15 slides from Enact's earnings presentation, Aug 1, 2023
Slide 1: Second Quarter 2023 Financial Supplement
Second Quarter 2023 Financial Supplement
Slide 2: GAAP/Non-GAAP Disclosure Discussion
Enact Holdings, Inc. Financial Supplement Second 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 oper
Slide 3: Consolidated Income Statement
Enact Holdings, Inc. Financial Supplement Second Quarter 2023 2023 2Q 1Q Total 4Q 3Q 2Q 1Q Total REVENUES: Premiums $238,520 $235,108 $473,628 $232,737 $235,060 $237,386 $234,279 $939,462 Net investment income 50,915 45,341 96,256 44,896 39,493 35,776 35,146 155,311 Net investment gains (losses) (13
Slide 4: Consolidated Balance Sheet
Enact Holdings, Inc. Financial Supplement Second Quarter 2023 June 30, 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 $4,915,039 $4,929,627 $4,884,760 $4,877,902 $4,909,362 $5,093,0
Slide 5: Primary New Insurance Written
Enact Holdings, Inc. Financial Supplement Second 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 Primary NIW % of Primary NIW Primary NIW % of Primary NIW Produc
Slide 6: Primary Insurance In Force
Enact Holdings, Inc. Financial Supplement Second Quarter 2023 IIF % of IIF IIF % of IIF IIF % of IIF IIF % of IIF IIF % of IIF IIF % of IIF Product Primary $257,816 100 % $252,516 100 % $248,262 100 % $241,813 100 % $237,563 100 % $231,853 100 % Pool 469 - % 486 - % 505 - % 531 - % 564 - % 600 - % T
Slide 7: Primary Insurance In Force by FICO
Enact Holdings, Inc. Financial Supplement Second Quarter 2023 IIF % of IIF IIF % of IIF IIF % of IIF IIF % of IIF IIF % of IIF IIF % of IIF FICO Scores Over 760 $107,427 42 % $104,635 42 % $102,467 41 % $99,177 41 % $96,625 40 % $93,222 40 % 740 - 759 42,074 16 % 40,983 16 % 40,097 16 % 38,731 16 %
Slide 8: Risk In Force
Enact Holdings, Inc. Financial Supplement Second Quarter 2023 RIF % of RIF RIF % of RIF RIF % of RIF RIF % of RIF RIF % of RIF RIF % of RIF Product Primary $65,714 100 % $64,106 100 % $62,791 100 % $61,124 100 % $59,911 100 % $58,295 100 % Pool 73 - % 76 - % 79 - % 84 - % 89 - % 97 - % Total $65,787
Slide 9: Risk In Force by FICO and LTV
Enact Holdings, Inc. Financial Supplement Second Quarter 2023 RIF % of RIF RIF % of RIF RIF % of RIF RIF % of RIF RIF % of RIF RIF % of RIF FICO Scores Over 760 $27,305 42 % $26,480 41 % $25,807 41 % $24,965 41 % $24,252 40 % $23,326 40 % 740 - 759 10,749 16 % 10,418 16 % 10,154 16 % 9,808 16 % 9,55
Slide 10: Delinquencies and Reserves Roll-forward
Enact Holdings, Inc. Financial Supplement Second Quarter 2023 2Q 1Q 4Q 3Q 2Q 1Q Average Paid Claim (1) $46.6 $46.9 $48.7 $42.2 $50.1 $51.6 Reserves: Direct primary case(2) $451,506 $462,287 $479,343 $476,063 $525,948 $590,508 All other(2) 38,697 39,140 39,665 34,174 32,946 34,771 Total Reserves $490
Slide 11: Missed Payment Status Tables
Enact Holdings, Inc. Financial Supplement Second 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: Risk in Force by State, Metro and Book Year
Enact Holdings, Inc. Financial Supplement Second 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% 12% 1.99% Phoenix, AZ MSA 3% 2
Slide 13: Investment Portfolio Composition
Enact Holdings, Inc. Financial Supplement Second Quarter 2023 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 $110,538 2 % $42,709 1 % $44,769
Slide 14: Reinsurance - Quota Share and Credit Risk Transfer
Enact Holdings, Inc. Financial Supplement Second Quarter 2023 Reinsurance - Quota Share (1) 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 2023 QS 1/20-8/20 1/14-12/18, 4Q'19 9/20-12/20 1/21-6/21 Full Year 2020 Full Year 20
Slide 15: Statutory Capital and PMIERs
Enact Holdings, Inc. Financial Supplement Second Quarter 2023 2Q 1Q 4Q 3Q 2Q 1Q COMBINED STAT: Statutory policyholders' surplus $1,079 $1,193 $1,136 $1,348 $1,277 $1,442 Contingency reserves 3,800 3,679 3,551 3,424 3,297 3,168 Combined statutory capital $4,879 $4,872 $4,687 $4,772 $4,574 $4,610 Adju