Enact Holdings, Inc. · NASDAQ:ACT
Enact — Q4 2023 Earnings Presentation
15 slides from Enact's earnings presentation, Feb 6, 2024
Slide 1: Fourth Quarter 2023 Financial Supplement
Fourth Quarter 2023 Financial Supplement
Slide 2: GAAP/Non-GAAP Disclosure Discussion
Enact Holdings, Inc. Financial Supplement Fourth 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 and Adjusted Operating Income
Enact Holdings, Inc. Financial Supplement Fourth Quarter 2023 4Q 3Q 2Q 1Q Total 4Q 3Q 2Q 1Q Total REVENUES: Premiums $240,101 $243,346 $238,520 $235,108 $957,075 $232,737 $235,060 $237,386 $234,279 $939,462 Net investment income 56,161 54,952 50,915 45,341 207,369 44,896 39,493 35,776 35,146 155,311
Slide 4: Consolidated Balance Sheets
Enact Holdings, Inc. Financial Supplement Fourth Quarter 2023 December 31, 2023 September 30, 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 $5,266,141 $4,990,692 $4,9
Slide 5: New Insurance Written
Enact Holdings, Inc. Financial Supplement Fourth Quarter 2023 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 NIW % of NIW Product Primary $10,453 100 % $14,391 100 % $15,083 100 % $13,154 100 % $53,081 100 % $15,145 1
Slide 6: Insurance In Force
Enact Holdings, Inc. Financial Supplement Fourth Quarter 2023 Total Direct IIF % of IIF IIF % of IIF IIF % of IIF IIF % of IIF IIF % of IIF IIF % of IIF IIF % of IIF IIF % of IIF Product Primary $262,937 100 % $262,014 100 % $257,816 100 % $252,516 100 % $248,262 100 % $241,813 100 % $237,563 100 %
Slide 7: Insurance In Force by FICO Score
Enact Holdings, Inc. Financial Supplement Fourth Quarter 2023 IIF % of IIF 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 $110,635 42 % $109,701 42 % $107,427 42 % $104,635 42 % $102,467 41 % $99,177 41 % $96,625 40 % $93,222 40 % 740
Slide 8: Risk In Force
Enact Holdings, Inc. Financial Supplement Fourth Quarter 2023 Total Direct RIF % of RIF RIF % of RIF RIF % of RIF RIF % of RIF RIF % of RIF RIF % of RIF RIF % of RIF RIF % of RIF Product Primary $67,529 100 % $67,056 100 % $65,714 100 % $64,106 100 % $62,791 100 % $61,124 100 % $59,911 100 % $58,295
Slide 9: Risk In Force by FICO Score
Enact Holdings, Inc. Financial Supplement Fourth Quarter 2023 RIF % of RIF 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 $28,363 42 % $28,014 42 % $27,305 42 % $26,480 41 % $25,807 41 % $24,965 41 % $24,252 40 % $23,326 40 % 740 - 759
Slide 10: Claims, Reserves and Delinquencies
Enact Holdings, Inc. Financial Supplement Fourth Quarter 2023 4Q 3Q 2Q 1Q 4Q 3Q 2Q 1Q Average Paid Claim (1) $42.9 $46.8 $46.6 $46.9 $48.7 $42.2 $50.1 $51.6 Reserves: Direct primary case(2) $476,709 $459,916 $451,506 $462,287 $479,343 $476,063 $525,948 $590,508 All other(2) 41,482 41,177 38,697 39,1
Slide 11: Percentage Reserved by Payment Status
Enact Holdings, Inc. Financial Supplement Fourth Quarter 2023 Percentage Reserved by Payment Status Delinquencies Case Reserves Risk In- Force Reserves as % of RIF 3 payments or less in default 10,166 $88 $629 14 % 4 - 11 payments in default 6,934 205 469 44 % 12 payments or more in default 3,332 18
Slide 12: Top States, MSAs and Book Year Exposure
Enact Holdings, Inc. Financial Supplement Fourth 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 13% 12% 2.22% Phoenix, AZ MSA 3% 2
Slide 13: Investment Portfolio Composition
Enact Holdings, Inc. Financial Supplement Fourth 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 Carrying Amount % of Total Carrying Amount % of Total Fixed Maturity Securit
Slide 14: Reinsurance Programs
Enact Holdings, Inc. Financial Supplement Fourth Quarter 2023 Reinsurance - Quota Share (1) 2021-1 ILN 2021-2 ILN 2021-3 ILN 2023-1 ILN 2020 XOL 2021 XOL 2022-1 XOL 2022-2 XOL 2022-3 XOL 2022-4 XOL 2022-5 XOL 2023-1 XOL 2023-1 QSR 1/14-12/18, 4Q'19 9/20-12/20 1/21-6/21 7/22-6/23 Full Year 2020 Full
Slide 15: Capital and Risk-to-Capital
Enact Holdings, Inc. Financial Supplement Fourth Quarter 2023 4Q 3Q 2Q 1Q 4Q 3Q 2Q 1Q COMBINED STAT: Statutory policyholders' surplus $1,085 $1,134 $1,088 $1,193 $1,136 $1,348 $1,277 $1,442 Contingency reserves 3,960 3,923 3,800 3,679 3,551 3,424 3,297 3,168 Combined statutory capital $5,045 $5,057