Enact 4Q21 Earnings Summary - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Meet our Editorial Staff
    • Advertise
    • Contact
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Newswires
Newswires RSS Get our newsletter
Order Prints
February 2, 2022 Newswires
Share
Share
Post
Email

Enact 4Q21 Earnings Summary

U.S. Regulated Equity Markets (Alternative Disclosure) via PUBT

CONFIDENTIAL

Fourth Quarter and Full-Year

2021 Financial Results

February 2, 2022

CONFIDENTIAL

Cautionary Note Regarding Forward-Looking Statements

This 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," "would," "anticipate," "expect," "believe," "designed," "plan," 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 uncertainty around Covid-19 and the effects of government and other measures seeking to contain its spread, risks related to an economic downtuor recession in the United States and in other countries around the world, changes in political, business, regulatory, and economic conditions and other factors described in the risk factors contained in our filings with the Securities and Exchange Commission, 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, the Company 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-GAAP1 And Other Items

All financial results are as of December 31, 2021 unless otherwise noted. For additional information, please see Enact's fourth quarter 2021 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.

2

1 U.S. Generally Accepted Accounting Principles

Enact: Who We Are

CONFIDENTIAL

Experienced, well capitalized private mortgage insurance company in business 40+ years with a dynamic platform positioned for success

Deep & Cohesive Customer

Relationships

  • Long-tenuredrelationships with a large and diverse customer base
  • Competitive pricing with best-in- class underwriting and differentiated customer offerings

~1,800

92%

Active Customers 1

Percentage of 4Q21YTD NIW from

customers who have submitted loans

to us every year since 2017

20 of Top 20

16%

# of top 20 originators who

Market share for twelve months

are Enact Customers 2

ending October 31, 2021

Cycle-tested Risk & Capital Management Capabilities

  • Successful transition from a "Buy and Hold" strategy to an "Acquire, Manage and Distribute" approach
  • Strong balance sheet and well capitalized to manage through macroeconomic uncertainty
  • Senior management with an average of 29 years of relevant industry experience and 14 years in mortgage insurance

Favorable Demographics &

Enact Tailwinds

  • Market dynamics remain very strong as a result of low interest rates, robust housing prices, and strong demand for home ownership
  • FTHB3 demographics favorable for mortgage originations
  • Successful IPO creates pathway to unlock Enact's full potential through improved ratings, independent access to capital, enhanced governance, and rebranding

31 Defined as customers who we wrote business with in 2021; 2 According to Inside Mortgage Finance; 3 First-time Home Buyer.

Focused Strategy to Maximize Value Creation

CONFIDENTIAL

Differentiate

Enact from competitors

  • Deliver best-in-class underwriting to well-established, deep and diversified customer base
  • Invest to increase differentiation, drive efficiencies, and enhance decision-making
  • Outpacing industry average insurance-in-force growth

Maintain strong capital levels and earnings profile

  • Strong capital position supported by robust underwriting standards, comprehensive stress testing, a conservative leverage ratio, and a diversified CRT program
  • Optimize cost of capital and forward capacity across CRT channels to manage volatility, protect the balance sheet and enhance ROE

Deliver attractive

risk-adjusted

returns

  • Write profitable new business and leverage proprietary risk assessment and pricing tools to target growth and drive increased returns
  • Maximize shareholder value through a disciplined capital allocation policy that supports existing policyholders, grows the business, and returns excess capital to shareholders

4

Strong Outlook for U.S. Housing Market

CONFIDENTIAL

Macro conditions are favorable for purchase origination...

Near-Record Low Rates1

Housing Prices are Robust, Growth Slowing2

5.50%

30-yr Average Fixed Mortgage Rate, Not Seasonally Adjusted

5.00%

4.50%

Yield

4.00%

3.6%

3.50%

3.00%

2.50%

2.00%

Jan-14

Jan-15

Jan-16

Jan-17

Jan-18

Jan-19

Jan-20

Jan-21

Jan-22

25%

House Price Index, Seasonally Adjusted (left)

220

Change (%)

17.4%

200

Affordability

20%

Housing Affordability Index (right)

15%

180

160

10%

140

YoY

147.5

Index

5%

120

0%

Apr-20May-20Jun-20Jul-20Aug-20Sep-20Oct-20Nov-20

Jul-21

100

Jan-20

Feb-20

Mar-20

Dec-20

Jan-21Feb-21

Mar-21

Apr-21

May-21

Jun-21

Aug-21

Sep-21

Oct-21

Nov-21

...with home purchases which drive the MI market size increasing momentum in recent years

Robust Demand for Homeownership3

Growing Purchase Origination &

2014

2020

2021

2022

PMI Purchase Penetration4

400

27%

26%

Mortgage Applications

24%

25%

350

21%

21%

18%

300

ValueIndex

13%

11%

250

($B)Volume

17%

17%

15%

14%

13%

$4,100

$4,310

200

$2,325

150

$1,735

$2,065

$1,810

$1,630

100

50

YE '15

YE '16

YE '17

YE '18

YE '19

YE '20

YE '21(E)

1

3 5

7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51

Calendar Week

Purchase

Refinance

PMI purchase penetration

FHA purchase penetration

Note: Dollar figure is total market volume

(%) penetration purchase PMI

51 Freddie Mac as of 1/20/2022; 2 FHFA House Price Index (October 2021); National Association of Realtors (November 2021); 3 Mortgage Bankers Association; 4 Inside Mortgage Finance.

This is an excerpt of the original content. To continue reading it, access the original document here.

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

Enact Holdings Inc. published this content on 02 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 February 2022 13:05:04 UTC.

Older

Genworth 4Q21 Earning Summary Presentation

Newer

Kiss’ Gene Simmons Open To Selling Nevada Mansion For Cryptocurrency

Advisor News

  • Flourish brings private-bank-like cash solution to MassMutual’s network
  • Majority of Americans concerned recent market highs are unsustainable
  • GLP-1 users choose between medication and retirement saving
  • Gen X and millennials seek new retirement model
  • Are families ready for the costs of aging at home?
More Advisor News

Annuity News

  • A client remarried: Does their annuity still fit?
  • Gen X and millennials seek new retirement model
  • Global Atlantic names Dan Farrelly head of IMO and IBD channels
  • A rising retirement challenge: The license to spend
  • What lower interest rates mean to annuity payouts
More Annuity News

Health/Employee Benefits News

  • NABIP urges Congress to address underlying healthcare costs
  • Understanding health insurance: What fraud, waste, and abuse mean for your healthcare
  • Fairview sues UnitedHealthcare over 2027 Medicare plan info
  • Women can face challenges in obtaining LTCi
  • Health affordability task force considers utility model
Sponsor
More Health/Employee Benefits News

Life Insurance News

  • Life insurance applications rise 15.2% in September, MIB reports
  • Flourish brings private-bank-like cash solution to MassMutual’s network
  • What ‘above and beyond’ means for today’s advisor
  • AM Best Maintains Stable Outlook on Indonesia’s Non-Life Insurance Segment
  • Owings Mills insurance agent pleads guilty to stealing more than $100,000 in life insurance commissions
Sponsor
More Life Insurance News

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Press Releases

  • Lauren Sinnott Named to Ragan’s Top Women in Marketing Awards, Class of 2026 
  • Classic Car Insurer OpenRoad Insurance Expands to 40 U.S. States in Two Years
  • How Aspire General Turned an Early Technology Bet Into Claims Automation at Scale with Kyber
  • Adjusto launches AI-Native contents claims services powered by its technology platform
  • URL Insurance Group Celebrates 40 Years of Service, Growth, and Industry Leadership
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Meet our Editorial Staff
  • Advertise
  • Contact
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.