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April 30, 2025 First Quarter 2025Financial Results
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2 Cautionary Note Regarding Forward-Looking StatementsThis communication contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act. These forward-looking statements may address, among other things, our expected financial and operational results, the related assumptions underlying our expected results and the quotations of management. These forward-looking statements are distinguished by use of words such as “will,” “may,” “would,” “anticipate,” “expect,” “believe,” “designed,” “plan,” “predict,” “project,” “target,” “could,” “should,” or “intend,” the negative of these terms, and similar references to future periods. These views involve risks and uncertainties that are difficult to predict and, accordingly, our actual results may differ materially from the results discussed in our forward-looking statements. Our forward-looking statements contained herein speak only as of the date of this press release. Factors or events that we cannot predict, including risks related to an economic downturn or recession in the United States and in other countries around the world; changes in political, business, regulatory, and economic conditions; changes in or to Fannie Mae and Freddie Mac (the “GSEs”), whether through Federal legislation, restructurings or a shift in business practices; failure to continue to meet the mortgage insurer eligibility requirements of the GSEs; competition for customers; lenders or investors seeking alternatives to private mortgage insurance; an increase in the number of loans insured through Federal government mortgage insurance programs, including those offered by the Federal Housing Administration; and other factors described in the risk factors contained in our most recent Annual Report on Form 10-K and other filings with the SEC, may cause our actual results to differ from those expressed in forward-looking statements. Although Enact believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, Enact can give no assurance that its expectations will be achieved and it undertakes no obligation to update publicly any forward-looking statements as a result of new information, future events, or otherwise, except as required by applicable law.Non-GAAP1And Other ItemsAll financial results are as of March 31, 2025, unless otherwise noted. For additional information, please see Enact’s first quarter 2025 earnings release and financial supplement posted at ir.enactmi.com.For important information regarding the use of non-GAAP and selected operating performance measures, see the Appendix. Unless otherwise noted, all references in this presentation to net income (loss), net income (loss) per share, adjusted operating income (loss) and adjusted operating income (loss) per share should be read as net income (loss) available to Enact’s common stockholders, net income (loss) available to Enact’s common stockholders per diluted share, adjusted operating income (loss) available to Enact’s common stockholders and adjusted operating income (loss) available to Enact’s common stockholders per diluted share, respectively.1U.S. Generally Accepted Accounting Principles
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3 First Quarter Key TakeawaysInsurance in-force was $268B, driven by NIW of $10B and persistency of 84% Reserve release of $47M during the quarter driven by sustained favorable cure performance and our loss mitigation efforts Returned $94M capital to shareholders in 1Q25;$28M through our quarterly dividend and $66M from our share buyback program Capital and liquidity positions remained strong with low financial leverage; robust PMIERs sufficiency of $2.0B or 165% Enact helped ~26,000 households achieve homeownership and ~4,500 households stay in their homes in 1Q25 New $350M share buyback program announced and increased quarterly dividend 14% to $0.21 per share; reaffirm full year total capital return at 2024 levels
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About Us MISSION:We help people buy a house and keep it their homeVision:We enable the dream of homeownership through industry leading customer experience from quote to claim, best-in-class risk management, and a diverse team empowered to ACT!Drive Profitable Growth in MI MarketMaintain a strong position in the MI market by maintaining robust underwriting standards, providing best-in-class customer experiences, and enhancing our market presenceDrive an Exceptional Employee ExperienceTransform MI Business to Maximize Value & EfficiencyGenerate Shareholder Value by Leveraging Our Core Capabilities Advance innovation that drives our performance and efficiency across the MI value chain, enabling enhanced decision-makingLeverage our strong balance sheet and deep expertise in credit risk, underwriting and distribution to pursue disciplined growth in attractive adjacent marketsFoster the growth of collaborative and high-performing teams to support long-term sustainable growth4
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enactmi.com 5 Financial Highlights$245 millionNet Premiums EarnedFlat Q/Q$9.8 billionNew Insurance WrittenDown 26% Q/Q$268 billionPrimary Insurance in-ForceDown $1B Q/Q$63millionNet Investment IncomeFlat Q/Q$169 millionAdjusted Operating Income1Flat Q/Q$166 millionNet IncomeUp 2% Q/Q$53millionOperating ExpensesDown 9% Q/Q$1.10Diluted Adj Operating Income Per ShareUp 1% Q/Q$1.08Diluted Net Income Per ShareUp 3% Q/Q21%Expense Ratio3Down 3 points Q/Q13.4%Adj Operating Return on Equity2Down 0.1 points Q/Q13.1%Return on EquityUp 0.1 points Q/Q$31 MillionLosses IncurredUp $7M Q/Q165%PMIERs Sufficiency (%)5Down 2 points Q/Q$2.0 billionPMIERs Sufficiency ($)4Down 4% Q/Q12%Loss Ratio7Up 2 points Q/Q1.3%New Delinquency Rate6Down 0.2 points Q/Q2.3%Delinquency RateDown 0.1 points Q/Q1 Adjusted operating income is a non-GAAP measure. Please see appendix for a reconciliation; 2 Calculated as annualized adjusted operating income for the period indicated divided by the average of current period and prior periods’ ending total stockholders’ equity; 3 The ratio of acquisition and operating expenses, net of deferrals, and amortization of deferred acquisition costs and intangibles to net earned premiums; 4 Calculated as total available assets less net required assets, based on PMIERs then in effect; 5 Calculated as total available assets divided by net required assets, based on PMIERs then in effect; 6The ratio of new delinquencies divided by total policies in-force that are not delinquent; 7The ratio of losses incurred to net earned premiums.
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enactmi.com 6 Driving Continued Book Value AccretionBook value per share excluding AOCI1+ cumulative dividends 1 Book value per share excluding Accumulated Other Comprehensive Income “AOCI” is a non-GAAP measure. Please see appendix for a reconciliation
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enactmi.com 7 Market and Industry Dynamics» High quality credit portfolio and strong manufacturing quality» Increased risk-based capital standards and robust sufficiency levels» Ability to adapt to market changes with granular risk-based pricing models» Enhanced credit protections from robust and diversified CRT programs» Elevated persistency caused by higher rates offsets pressure on originations» Housing market remains slow in the near-term given low affordability» Tight housing supply remains supportive of home prices» Healthy labor market and generally healthy household balance sheets continue to support credit performance» Long-term demand dynamics remain favorable driven by strong First-Time Home Buyers (“FTHB”) demographics Industry well positioned to navigate a range of economic scenarios Complex market with favorable underpinnings
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enactmi.com 8 Strong & Comprehensive Risk Management 1Metrics derived from underlying characteristics at the time the loan was originated. Borrowers without a FICO score included in the 660–679 category; 2High-risk layers defined as loans that have a single borrower, debt-to-income > 45%, cash-out refinances or investor-owned properties; may not foot due to rounding»Minimal number of high-risk layers within portfolio »High credit quality portfolio is driven by granular risk-based pricing and disciplined approachLTV at Origination (RIF)1 Significant decrease in layered risk 1Q254Q243Q242Q241Q244Q07# of High-Risk Layers2 0.6%0.6%0.6%0.6%0.6%4.6%+0LTV > 95%& FICO < 6800.6%0.6%0.6%0.6%0.6%7.9%+10.1%0.1%0.1%0.1%0.1%2.5%+20.0%0.0%0.0%0.0%0.0%0.0%+3 or >1.3%1.3%1.3%1.3%1.3%15.0%TotalFICO at Origination (Risk in-force “RIF”)1
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enactmi.com 9 Primary Insurance in-Force (IIF) Growth 1 May not foot due to rounding; 2Represents percentage of policies with mortgage rates at origination» NIW down 26% sequentially primarily from seasonality of purchase originations » Persistency remains elevated and helps offset impact of higher mortgage rates on production NIW ($B), IIF ($B) and Persistency RateMortgage Rate IIF Concentration1, 2 » 8% of our IIF had mortgage rates at least 50 basis points above the average March prevailing market rate of 6.7%» 65% of our IIF have an interest rate less than 6%, providing support for continued elevated persistency1Q25>7.2% (Avg Mar Market Rate + 50bps buffer)8%65%
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enactmi.com 10 Portfolio Premium Yield & PremiumsPrimary Direct & Ceded Premiums1($M)In-Force Primary Portfolio Premium Yield1Q254Q243Q242Q241Q2440.140.040.240.340.1Base Premium Rate (bps)0.10.30.40.20.2Single Cancellations(4.9)(4.8)(4.3)(4.1)(4.0)Ceded Premium35.335.536.336.436.3Net Premium Rate (bps)269268267265263Average IIF ($B)84%82%83%83%85%Persistency» Base premium rate in line with expectations and may modestly fluctuate from quarter to quarter» Quarter-to-quarter fluctuations can be driven by persistency, mix, and premium refund estimates» Net premium rate decreased sequentially driven by higher ceded premiums and lower single cancellations1Total Net Earned Premiums are $241, $245, $249, $246 and $245 million as of 1Q24, 2Q24, 3Q24, 4Q24 and 1Q25 respectively» Base premiums increased $5M year-over-year driven by insurance in-force growth» Higher ceded premiums driven primarily from quota share reinsurance (QSR) that we began leveraging in 2023» QSR transactions tend to yield higher ceded premiums but with partially offsetting impacts to expenses and losses, relative to excess of loss transactions
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enactmi.com 11 Strong Credit Performance 8,0734,9923,0951,7771,167Remaining Delqs34%64%76%83%89%Cumulative Cure Rate1 New delinquencies and cures are on an as reported basis in each quarter. Subsequent servicer reporting could result in slight changes to the percentage; 2The ratio of new delinquencies divided by total policies in-force that are not delinquent; 34Q24 impacted by ~1,000 new delinquencies from 2024 hurricanes; 4The ratio of cures divided by prior period delinquencies; Primary New Delinquencies1Primary Cure Activity1 22,34923,56621,02719,05119,492 Total Delqs2.3%2.4%2.2%2.0%2.0%Delq Rate 2 4 » New delinquencies and rate decreased sequentially primarily from seasonality» Strong and consistent cumulative cure rates continue with a third of current quarter delinquencies cured» Continued strong cure rates above pre-pandemic levels » Delq rate consistent with pre-pandemic levels on continued consumer strength3
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enactmi.com 12 Losses Primary Delqs23,56621,02719,05119,49220,432 Beginning Balance12,237 13,717 12,96410,46111,395 New Delqs(13,275)(10,987)(10,768)(10,742)(12,163)Cures1 (179)(191)(220)(160)(172)Paid Claims22,349 23,566 21,02719,05119,492 Ending Balance Losses ($M) & Loss Ratio 1Includes rescissions and claim denials. Highlights» 1Q25 reserve release of $47M from favorable cure performance and loss mitigation activities compares to reserve releases of $56M and $54M in 4Q24 and 1Q24, respectively » Sequential increase in losses and loss ratio primarily driven by lower reserve release» 4Q24 included ~1,000 new delinquencies from 2024 related hurricanes recorded at a 2% claim rate in line with historical experience from prior storms» Paid claims volume remained low relative to pre-pandemic levels with modest impacts from non-performing loan settlements
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enactmi.com 13 Embedded Equity1Delinquent PoliciesPrimary Portfolio » Cumulative HPA and continued tight supply supporting housing prices support cumulative equity across our portfolio» 93% of delinquent policies and 88% of all policies have at least 10% equity which has remained consistent since 20211 MTM LTVs are estimated based on amortization and house price appreciation at the MSA level. House price appreciation is based on the FHFA All-Transactions House Price Index. Data is as of 3/31/25, based on home price appreciation through 12/31/24. May not foot due to rounding. 93%88%
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enactmi.com 14 Continued Strong Capital Return and Low Leverage $28$28$29$29$26Dividends ($M)$66$74$71$49$49Total Share Repurchases ($M)$94$102$100$78$75Total Shareholder Return GAAP Capital Position1($M)Highlights 1Equity includes accumulated other comprehensive income (loss) of $(237), $(236), $(102), $(207), and $(152) million as of 1Q24, 2Q24, 3Q24, 4Q24, and 1Q25, respectively » Returned $94M to shareholders during the quarter, consisting of $28M quarterly dividend, and share repurchases totaling $66M (2.0M shares at an average price of $33.38)» Repurchased an additional $21M thru April 25, 2025 and $6M remains on the previously announced share repurchase programs» Board of Directors approved an increase to our quarterly dividend from $0.185 to $0.21 per share, payable on June 11, 2025, to common shareholders of record on May 19, 2025» Additionally, our Board of Directors approved a new share repurchase program with authorization to purchase up to $350 million of common stock» Expect to return capital to shareholders at a similar level compared to 2024» Over $1.2B returned to shareholders since IPO (Sept 2021)
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enactmi.com 15 Strong PMIERs Sufficiency 1 PMIERs calculated as available assets divided by or less than required assets as defined within PMIERs; 2 Company estimate for the current period due to timing of the preparation and filing of statutory statements; Sufficiency to PMIERs1, 2($M)PMIERs Credit by CRT Instrument » Operating leverage of 36% reflects successful execution of our well diversified CRT program in a complex market» Previously announced two XOL reinsurance transactions that will provide ~$225M and ~$260M of coverage on 2025 and 2026 book years, respectively
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enactmi.com 16 Robust Statutory Capital $4,370$4,325$4,281$4,234$4,140Contingency Reserve» Robust policyholder surplus continues to support capital return» EMICO completed a dividend of $200M to primarily support capital return to shareholders and bolster financial flexibility» Released $175M in contingency reserves in 2024 and growing over next several years $MYear$307 2025$342 2026$359 2027$384 2028$441 2029$510 2030$522 2031$508 2032$492 2033$4602034$4,325Total EMICO Policyholder Surplus & Statutory CapitalScheduled Contingency Reserve Release1 1 Contingency reserves are established by contributing 50% of earned premiums. Releases of contingency reserves occur with either an annual loss ratio greater than 35% or after 10 years on a first-in, first-out basis, and are released into unassigned funds. The scheduled releases presented above represent full year releases.
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enactmi.com 17 Strong and Diversified Ratings » In January 2025, Fitch Ratings “Fitch” upgraded the Insurer Financial Strength Rating of EMICO to A from A- and upgraded EHI’s LT Debt Rating to BBB from BBB-, both ratings are Stable» Enact Holdings Inc. fully Investment Grade Enact Re1Rating / OutlookEMIC-NC1Rating / OutlookLT Debt3Rating / OutlookEHI2Rating / OutlookEMICO1Rating / OutlookDate UpdatedRating Agency--Baa3 / StableBaa3 / PositiveA3 / PositiveOutlook UpgradedMarch 2024Moody’sA- / Stable--BBB- / StableA- / StableInitiated Enact ReAugust 2024S&P--BBB / StableBBB / StableA / StableRating UpgradedJanuary 2025FitchA- / StableA- / Stable-BBB- / StableA- / StableAnnounced August 2023A.M. Best1 Represents Financial Strength rating; 2Represents Issuer Credit Rating; 3Represents Debt Rating on our 2025 Senior Unsecured Debt
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enactmi.com 18 Highly Rated & Diversified Investment PortfolioComposition by asset class1Composition by rating2 1 Available-for-sale fixed maturity securities; 2 Fixed Maturity Securities, Credit Quality Nationally Recognized Statistical Rating Organizations “NRSRO” designation » Top 10 issuers comprise ~6% of portfolio» Book yield of 4.1% up 10bps versus prior quarter» 98% of portfolio is investment grade» 1Q25 unrealized gain / (loss) position of $(177)M from $(252)M at 4Q24 $5.8B Investment Portfolio and $0.6B of Cash Equivalents
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Appendix
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enactmi.com 20 Non-GAAP MeasuresUse of Non-GAAP MeasuresThis communication 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 operating income (loss). Enact Holdings, Inc. (the “Company”) defines adjusted operating income (loss) as net income (loss) excluding the after-tax effects of net investment gains (losses), restructuring costs and infrequent or unusual non-operating items, and gain (loss) on the extinguishment of debt. The Company excludes net investment gains (losses), gains (losses) on the extinguishment of debt and infrequent or unusual non-operating items because the company does not consider them to be related to the operating performance of the Company and other activities. The recognition of realized investment gains or losses can vary significantly across periods as the activity is highly discretionary based on the timing of individual securities sales due to such factors as market opportunities or exposure management. Trends in the profitability of our fundamental operating activities can be more clearly identified without the fluctuations of these realized gains and losses. We do not view them to be indicative of our fundamental operating activities. Therefore, these items are excluded from our calculation of adjusted operating income. In addition, adjusted operating income (loss) per share is derived from adjusted operating income (loss) divided by shares outstanding. Adjusted operating return on equity is calculated as annualized adjusted operating income for the period indicated divided by the average of current period and prior periods’ ending total stockholders’ equity.While some of these items may be significant components of net income (loss) in accordance with U.S. GAAP, the company believes that adjusted operating income (loss) and measures that are derived from or incorporate adjusted operating income (loss), including adjusted operating income (loss) per share on a basic and diluted basis and adjusted operating return on equity, are appropriate measures that are useful to investors because they identify the income (loss) attributable to the ongoing operations of the business. Management also uses adjusted operating income (loss) as a basis for determining awards and compensation for senior management and to evaluate performance on a basis comparable to that used by analysts. Adjusted operating income (loss) and adjusted operating income (loss) per share on a basic and diluted basis are not substitutes for net income (loss) available to Enact Holdings, Inc.’s common stockholders or net income (loss) available to Enact Holdings, Inc.’s common stockholders per share on a basic and diluted basis determined in accordance with U.S. GAAP. In addition, the company’s definition of adjusted operating income (loss) may differ from the definitions used by other companies.Adjustments to reconcile net income (loss) available to Enact Holdings, Inc.’s common stockholders to adjusted operating income (loss) assume a 21% tax rate.
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enactmi.comNet Income to Adj Operating Income 1Q24 2Q24 3Q24 4Q24 2024 1Q25Net Income $161 $184 $181 $163 $688 $166Adjustments to Net Income:Net investment (gains) losses $7 $8 $1 $7$23$3Costs associated with reorganization ($0) $3 $1 $0$5$1(Gains) losses on early extinguishment of debt $0 $11 $0 $0$11$0Taxes on adjustments ($1) ($5) ($0) ($2)($8)($1)Adjusted Operating Income $166 $201 $182 $169 $718 $169Earnings (Loss) Per Share Data 1Q24 2Q24 3Q24 4Q24 2024 1Q25Net Income per shareBasic $1.01 $1.17 $1.16 $1.06$4.40$1.09Diluted $1.01 $1.16 $1.15 $1.05$4.37$1.08Adj operating income per shareBasic $1.05 $1.28 $1.17 $1.10$4.60$1.11Diluted $1.04 $1.27 $1.16 $1.09$4.56$1.10Weighted-average common shares outstandingBasic 158,818 157,193 155,561 153,537156,277151,831Diluted 160,087 158,571 157,016 154,542157,554152,907Book Value Per Share Reconciliation 1Q24 2Q24 3Q24 4Q24 1Q25Book Value Per Share $29.89 $30.91 $32.61 $32.80 $33.96Impact of AOCI $1.51 $1.52 $0.66 $1.36 $1.01BVPS Excluding AOCI $31.40 $32.43 $33.27 $34.16 $34.97U.S. GAAP ROE to Adj Operating ROE 1Q24 2Q24 3Q24 4Q24 2024 1Q25Return on Equity 13.8% 15.4% 14.7% 13.0% 14.3% 13.1%Adjustments to Net Income:Net investment (gains) losses0.6% 0.6% 0.1% 0.6% 0.5% 0.3%Costs associated with reorganization(0.0)% 0.3% 0.1% 0.0% 0.1% 0.0%(Gains) losses on early extinguishment of debt0.0% 0.9% 0.0% 0.0% 0.2% 0.0%Taxes on adjustments(0.1)% (0.4)% (0.0)% (0.1)% (0.2)% (0.1)%Adjusted Operating ROE 14.2% 16.9% 14.8% 13.5% 14.9% 13.4%21 Reconciliation of Non-GAAP Measures 1Figures may not foot due to rounding. See Enact’s current Quarterly Financial Supplement (QFS).