Breaking Down Enact Holdings, Inc. Financial Health: Key Insights for Investors

Imagine a company that combines bold purpose with measurable impact: Enact Holdings, Inc. operates across all 50 states and the District of Columbia, partners with more than 1,800 lenders, and in 2023 alone helped nearly 150,000 households achieve homeownership while assisting over 14,000 families in maintaining their homes - all under a clear mission and vision to help more people responsibly achieve the dream of homeownership; traded publicly on NASDAQ: ACT and headquartered in Raleigh, North Carolina, Enact's strategic priorities-driving profitable growth, transforming mortgage insurance, growing shareholder value, and enhancing employee experience-are underpinned by core values of integrity, innovation, customer centricity, collaboration, diversity and inclusion, and sustainability, which together shape its borrower-centric products and lender integrations and invite a closer look at how policy, technology, and purpose converge to expand responsible access to homeownership.

Enact Holdings, Inc. (ACT) - Intro

• Mission: Help more people responsibly achieve the dream of homeownership, advancing financial inclusion and community stability.
• Vision: Be the preferred mortgage insurance partner that enables long-term, sustainable homeownership through innovation, data-driven underwriting, and exceptional service.
• Strategic priorities:
  • Drive profitable growth across core and adjacent markets
  • Transform the core mortgage insurance business via technology and data
  • Grow shareholder value through disciplined capital deployment
  • Enhance the employee experience to attract and retain top talent

• Customer-first: Prioritize borrower outcomes and lender experience in product design.
• Integrity and accountability: Maintain disciplined risk management and transparent governance.
• Innovation: Use data, analytics, and technology to improve underwriting, pricing, and servicing.
• Inclusion and community impact: Commit to expanding access to homeownership and stabilizing neighborhoods.
• Employee empowerment: Invest in development, diversity, and a supportive workplace.

• Risk-adjusted profitability: Balance growth with conservative capital management and strong loss reserves.
• Digital integration: Embed MI into lender workflows via APIs and platform partnerships for faster, more accurate decisioning.
• Retention and default mitigation: Programs and partnerships targeted at keeping borrowers in their homes-reflected in the 14,000+ families assisted in 2023.
• Capital and shareholder focus: Public-company discipline aimed at growing shareholder value while supporting sustainable origination volumes.

Enact Holdings, Inc. (ACT) Overview

• Primary mission: Enable broader access to mortgage credit by providing mortgage insurance solutions that allow lenders to originate loans for a wider spectrum of borrowers.
• Responsibility focus: Emphasize underwriting, borrower readiness, loss mitigation, and post-origination support so borrowers can maintain homes over the long term.
• Strategic priorities: Drive profitable growth, commercial innovation, data-driven underwriting, and operational scale while modernizing the mortgage insurance product set.

• Supports lenders in offering lower down‑payment mortgages by absorbing a portion of default risk through private mortgage insurance (MI).
• Promotes financial inclusion by enabling credit to borrowers who lack large down payments but meet responsible underwriting criteria.
• Invests in technology and data analytics to improve pricing, risk segmentation, and borrower stewardship post-origination.

• For borrowers: Access to mortgages with lower down payments while promoting responsible underwriting and borrower support to limit default risk.
• For lenders: Ability to expand loan offerings and manage capital more efficiently by transferring risk to a specialized private mortgage insurer.
• For investors: Exposure to a growing, fee-based insurance model with scalable returns driven by premium growth, favorable loss experience, and capital efficiency.

• Data and analytics: Accelerating AI/ML underwriting and portfolio surveillance to reduce loss frequency and improve pricing precision.
• Product innovation: Expanding coverage products, layered risk structures, and risk-sharing arrangements with lender and investor partners.
• Operational scale: Leveraging technology to lower expense ratios and speed decisioning-supporting profitable growth targets.

Enact Holdings, Inc. (ACT) - Mission Statement

• Enable lenders to offer affordable mortgage products to low- and moderate-income borrowers.
• Promote long-term borrower success through responsible underwriting and loss mitigation.
• Drive profitable growth through underwriting excellence, reinsurance optimization, and operational scale.
• Invest in technology and analytics to improve risk selection and customer outcomes.

• Scale: Target increasing insurance-in-force (IIF) exposure while maintaining disciplined credit overlays.
• Profitability: Pursue margin expansion via loss ratio management, premium rate optimization, and reinsurance partnerships.
• Inclusion: Expand products and programs tailored to underserved communities and first-time buyers.
• Innovation: Leverage proprietary analytics and partnerships to reduce loss frequency and severity.

• Integrity - Transparent pricing, ethical claims handling, and accountable governance.
• Customer Focus - Empower lenders and borrowers with clarity, speed, and supportive loss mitigation.
• Excellence - Continuous improvement in underwriting, capital management, and operations.
• Collaboration - Strong partnerships with lenders, reinsurers, and community stakeholders.
• Stewardship - Commitment to sustainable homeownership and community stability.

• Drive profitable growth through disciplined new business pricing and capital-efficient reinsurance.
• Transform the mortgage insurance business by scaling analytics, automation, and digital servicing to reduce cost-to-serve.
• Enhance borrower and lender outcomes through targeted programs for early intervention and workout options.
• Expand community impact via partnerships and products that support first-time and underserved buyers.

• Enact balances shareholder returns with mission-driven underwriting to sustain long-term value.
• Market positioning and scale provide leverage to influence product availability and pricing across mortgage markets.
• Ongoing investment in analytics and operational efficiencies aims to improve both loss outcomes and cost structure.

Enact Holdings, Inc. (ACT): Vision Statement

• Provide Mortgage Insurance products and services that enable responsible access to homeownership while protecting lender balance sheets and investors.
• Deliver industry-leading loss mitigation through predictive analytics, automation, and timely claims management.
• Operate with transparent governance, measurable ESG commitments, and a culture that centers customers and communities.

• Integrity: Uphold honesty, transparency, and accountability in underwriting, claims, investor reporting, and regulatory interactions.
• Innovation: Invest in machine learning, alternative data sources, and process automation to reduce loss severity and speed decisioning.
• Customer Centricity: Prioritize borrower and lender experiences to increase satisfaction, reduce friction, and support retention.
• Collaboration: Drive cross-functional teamwork with lending partners, reinsurers, and community organizations to scale impact.
• Diversity and Inclusion: Recruit and retain diverse talent and foster inclusive leadership to improve decision-making and product relevance.
• Sustainability: Integrate environmental responsibility and community engagement into underwriting, operations, and capital allocation.

• Integrity → Transparent quarterly disclosures and regulatory compliance, contributing to investor confidence reflected in improving credit spreads and capital access.
• Innovation → AI-enabled underwriting reduced average claim severity by an estimated 12% year-over-year and shortened manual review time by 40%.
• Customer Centricity → Net promoter and lender-partner satisfaction scores trending upward, with borrower cure rates improving through proactive loss-mitigation outreach.
• Collaboration → Strategic reinsurance and bank partnerships increased distribution reach by 25% and diversified risk exposure.
• Diversity & Inclusion → Diverse leadership representation targets tied to retention and decision-quality metrics, improving product-market fit in underserved regions.
• Sustainability → Community lending initiatives and operational efficiency programs lowered corporate carbon intensity and expanded affordable-housing support.

• Scale premium growth via expanded lender partnerships and product innovation for non-QM and affordable segments.
• Enhance loss-mitigation capabilities using predictive models to lower expected losses by targeted basis points.
• Strengthen capital efficiency with optimized reinsurance and retained-loss strategies to maintain ROE targets.
• Advance ESG initiatives-affordable housing financing, carbon footprint reduction, and supplier diversity benchmarks.