Enact Holdings, Inc. · NASDAQ:ACT
Enact — Q3 2022 Earnings Presentation
15 slides from Enact's earnings presentation, Nov 1, 2022
Slide 1: Third Quarter 2022 Financial Supplement
Third 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 Income Statement and Adjusted Operating Income
3Q 2Q 1Q Total 4Q 3Q 2Q 1Q Total REVENUES: Premiums $235,060 $237,386 $234,279 $706,725 $236,864 $243,063 $242,480 $252,542 $974,949 Net investment income 39,493 35,776 35,146 110,415 35,246 35,995 34,689 35,259 141,189 Net investment gains (losses) (42) (381) (339) (762) 5 580 (1,753) (956) (2,124)
Slide 4: Consolidated Balance Sheets
September 30, 2022 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 $4,877,902 $4,909,362 $5,093,084 $5,266,339 $5,376,067 $5,256,467 $5,106,128 Short term investments 2,434 0 0 0 1
Slide 5: Primary New Insurance Written
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 Primary NIW % of Primary NIW Product Primary $15,069 100% $17,448 10
Slide 6: Insurance In Force
IIF % of IIF IIF % of IIF IIF % of IIF IIF % of IIF IIF % of IIF IIF % of IIF IIF % of IIF Product Primary $241,813 100 % $237,563 100 % $231,853 100 % $226,514 100 % $222,464 100 % $217,477 100 % $210,187 100 % Pool 531 - % 564 - % 600 - % 641 - % 771 - % 798 - % 841 - % Total $242,344 100 % $238,1
Slide 7: Insurance In Force by FICO Score
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 $99,177 41 % $96,625 40 % $93,222 40 % $89,982 40 % $87,073 39 % $83,602 38 % $79,285 38 % 740 - 759 38,731 16 % 37,853 16 % 36,821 16 % 35,874 16 % 35,177 16 % 34,402 16 % 33,607 16 % 720
Slide 8: Risk In Force
RIF % of RIF RIF % of RIF RIF % of RIF RIF % of RIF RIF % of RIF RIF % of RIF RIF % of RIF Product Primary $61,124 100 % $59,911 100 % $58,295 100 % $56,881 100 % $55,866 100 % $54,643 100 % $52,866 100 % Pool 84 - % 89 - % 97 - % 105 - % 117 - % 123 - % 134 - % Total $61,208 100 % $60,000 100 % $58
Slide 9: Risk In Force by FICO Score
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 $24,965 41 % $24,252 40 % $23,326 40 % $22,489 40 % $21,767 39 % $20,908 38 % $19,829 37 % 740 - 759 9,808 16 % 9,559 16 % 9,267 16 % 9,009 16 % 8,824 16 % 8,628 16 % 8,442 16 % 720 - 739
Slide 10: Claims, Reserves and Delinquencies
2022 2022 2022 3Q 2Q 1Q 4Q 3Q 2Q 1Q Average Paid Claim (1) $42.2 $50.1 $51.6 $27.2 $26.7 $63.1 $54.7 Reserves: Primary direct case(2) $476,063 $525,948 $590,508 $606,102 $612,754 $588,683 $564,208 All other(2) 34,174 32,946 34,771 35,223 34,909 34,838 38,704 Total Reserves $510,237 $558,894 $625,279
Slide 11: Percentage Reserved by Payment Status
Percentage Reserved by Payment Status Delinquencies Direct Case Reserves Risk In- Force Reserves as % of RIF Delinquencies Direct Case Reserves Risk In- Force Reserves as % of RIF Delinquencies Direct Case Reserves Risk In- Force Reserves as % of RIF 3 payments or less in default 7,446 $48 $401 12 %
Slide 12: Top States, MSAs and Book Years
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% 10% 2.02% Chicago-Naperville, IL Metro Division 3% 4% 2.85% Texas 8% 7% 2.10% Phoenix, AZ MS
Slide 13: Investment Portfolio Composition
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 $44,654 1% $49,668 1% $56,751 1% $58,408 1% $65,117 1% $65,625 1% $7
Slide 14: Credit Risk Transfer Programs
2021-1 ILN 2020 XOL 2020 ILN 2021-2 ILN 2021 XOL 2021-3 ILN 2022 XOL -3 2022 XOL -4 2022 XOL -5 2022 XOL -1 2022 XOL -2 1/14-12/18, 4Q'19 Full Year 2020 1/20-8/20 9/20-12/20 Full Year 2021 1/21-6/21 7/21-12/21 7/21-12/21 1/22-6/22 Full Year 2022 Full Year 2022 At Closing ($MM) Initial CRT Risk In Fo
Slide 15: Statutory Capital and PMIERs
3Q 2Q 1Q 4Q 3Q 2Q 1Q COMBINED STAT: Statutory policyholders' surplus $1,348 $1,277 $1,442 $1,397 $1,558 $1,567 $1,557 Contingency reserves 3,424 3,297 3,168 3,042 2,914 2,783 2,652 Combined statutory capital $4,772 $4,574 $4,610 $4,439 $4,472 $4,350 $4,209 Adjusted RIF(1) $58,542 $57,407 $55,512 $54