Here are 1-2 brief analogies for Enact (ACT):

• Progressive for mortgage default insurance.
• GEICO for mortgage lenders' default risk.

• Private Mortgage Insurance Products: These products provide insurance primarily for prime-based, individually underwritten residential mortgage loans.
• Contract Underwriting Services: Enact offers these services to mortgage lenders to assist with their loan underwriting processes.

Enact Holdings, Inc. (ACT) sells its private mortgage insurance products and services primarily to other companies, rather than directly to individuals.

Its major customers are various types of mortgage lenders in the United States. Due to the nature of the mortgage insurance business, Enact serves a broad base of clients, and specific major customer companies (and their symbols) are not individually disclosed in their public filings. Their business model involves working with a wide range of mortgage originators across the country.

The categories of mortgage lenders Enact serves include:

• National banks
• Regional and local banks
• Credit unions
• Independent mortgage companies

• Genworth Financial, Inc. (GNW)

Rohit Gupta, President, Chief Executive Officer and Director

Rohit Gupta has served as President, CEO, and Director of Enact Holdings since March 2013, and as President and CEO for Enact Mortgage Insurance Corporation ("EMICO") since May 2012. Prior to becoming CEO, Mr. Gupta held roles including Chief Commercial Officer and Senior Vice President of Products, Intelligence and Strategy, as well as Vice President of Commercial Operations within Enact's Mortgage Insurance business. Before joining Enact, he held marketing director and senior product manager positions with GE Capital from 2000 to 2003. He began his career in Strategic Marketing at FedEx Corporation in 1998, focusing on competitive intelligence and market analysis. Mr. Gupta served on the board of Aqua Finance, a consumer finance company owned by Blackstone, from 2020 to 2022. He also previously served on the board of Sagen, Canada's largest private mortgage insurance provider, from 2016 to 2019.

Dean Mitchell, Executive Vice President, Chief Financial Officer, and Treasurer

Dean Mitchell is the Executive Vice President, Chief Financial Officer (CFO), and Treasurer at Enact, where he oversees financial operations, reporting, and strategies. He assumed the role of Senior Vice President and CFO in January 2012, and Treasurer in March 2013. Mr. Mitchell joined the company in June 2004 as part of the Global Capital Management group. Before his tenure at Enact, he served as Treasurer of Reichhold, Inc., a global chemical manufacturer, and as Director of Treasury at Business Telecom, Inc., a privately held telecommunications provider.

Evan Stolove, Executive Vice President, General Counsel and Corporate Secretary

Evan Stolove is the Executive Vice President, General Counsel, and Corporate Secretary at Enact, responsible for legal, compliance, privacy, corporate governance, and state government affairs. He joined the company in August 2016 as Senior Vice President and General Counsel, and became Secretary in July 2017. Prior to Enact, Mr. Stolove worked at Fannie Mae, where his most recent role was Vice President and Deputy General Counsel. He also previously worked in private practice with the law firm Arent Fox PLLC.

Mike Derstine, Executive Vice President and Chief Risk Officer

Mike Derstine serves as Executive Vice President and Chief Risk Officer at Enact, overseeing risk management, risk modeling, pricing, credit policy, and quality assurance. He joined the company in January 2013, having previously held the position of Senior Vice President and Chief Risk Officer.

Brian Gould, Executive Vice President and Chief Operations Officer

Brian Gould is the Executive Vice President and Chief Operations Officer at Enact, with responsibilities including underwriting, analytics, information technology, project management, lender services, and loss mitigation. He previously served as Vice President of Operations for Enact, a role he took on in November 2018. Before joining Enact, Mr. Gould worked as a consultant for Freddie Mac after 18 years at United Guaranty Corporation.

Enact Holdings, Inc. (ACT) faces several key risks inherent to the private mortgage insurance industry. These risks are primarily driven by external economic factors, regulatory oversight, and the competitive landscape.

1. Economic Downturns and Housing Market Volatility: Enact's business is highly sensitive to the health of the housing market and broader economic conditions. A severe recession, a decline in home prices, or increased unemployment can lead to a rise in mortgage defaults and claims, which directly impacts the company's financial reserves and profitability. This cyclical nature of the housing market means that adverse economic shifts can significantly strain Enact's operations.
2. Regulatory Compliance and Government-Sponsored Enterprise (GSE) Actions: The company operates within a highly regulated environment and must adhere to strict requirements, such as the Private Mortgage Insurer Eligibility Requirements (PMIERs). Changes in these regulations or actions taken by government-sponsored enterprises (GSEs) like Fannie Mae and Freddie Mac could significantly affect Enact's ability to underwrite new insurance policies, thereby impacting its business operations and financial condition.
3. Intense Industry Competition: The private mortgage insurance sector is characterized by intense competition from other private mortgage insurers, as well as governmental agencies such as the Federal Housing Administration (FHA) and Veterans Affairs (VA) that also provide mortgage insurance. This competitive pressure can lead to a loss of market share, reduced premiums, and adverse financial consequences for Enact Holdings, Inc.

Enact Holdings, Inc. (ACT) is expected to experience future revenue growth driven by several key factors over the next 2-3 years:

1. Sustained Growth in Insurance In-Force (IIF): Enact has consistently reported record levels of primary insurance in-force, which directly contributes to its earned premiums. This growth has been a recurring theme in recent financial reports, with primary insurance in-force reaching $263 billion in Q4 2023, $266 billion in Q2 2024, and a record $269 billion in Q4 2024. The company's insured portfolio has shown continued growth, indicating a strong foundation for future premium generation.
2. Expansion in Credit Risk Transfer (CRT) Market through Enact Re: Enact is strategically growing its presence in "attractive adjacencies," primarily through the participation of its subsidiary, Enact Re, in Government Sponsored Enterprise (GSE) Credit Risk Transfer transactions. This initiative is seen as a long-term growth opportunity, leveraging their capabilities across mortgage, housing, and credit markets. Enact Re has been actively involved in GSE CRT deals, contributing to increased net earned premiums.
3. Favorable U.S. Housing Market Dynamics: The company anticipates continued robust housing demand, supported by long-term demographic trends and persistent low inventory levels, which are expected to maintain elevated home prices. This constructive operating environment in the U.S. housing market serves as a significant tailwind for the mortgage insurance business, influencing both the frequency and severity of losses.
4. Increased Net Investment Income from Elevated Interest Rates: Enact has benefited from higher interest rates, which have led to an increase in its investment portfolio yields. As the company's investment portfolio rolls over, it anticipates further improvements in yield, contributing to its net investment income and overall revenue. The company's investment portfolio had a book yield of 4.0% in Q4 2024, an increase from the previous quarter.

Capital Allocation Decisions for Enact Holdings, Inc. (ACT)

Share Repurchases

• Enact's board of directors authorized a new share repurchase program of up to $500 million, effective February 3, 2026. This new authorization is in addition to an existing $350 million program.
• As of January 30, 2026, approximately $30 million remained from the previously authorized $350 million share repurchase program.
• In 2025, the company returned over $500 million to shareholders, including $382 million through share repurchases of 10.5 million shares at a weighted average price of $36.25.

Share Issuance

• Enact Holdings, Inc. completed an initial public offering (IPO) on September 20, 2021, with 15,306,960 shares of common stock sold at $19.00 per share, including the underwriters' full exercise of their overallotment option.
• All shares in the IPO were offered and sold by the selling stockholder, Genworth Holdings, Inc., meaning Enact Holdings, Inc. did not receive any proceeds from the sale.

Inbound Investments

• Concurrent with the September 2021 IPO, certain investment funds managed by Bayview Asset Management, LLC purchased 14,655,600 shares of Enact's common stock from Genworth Holdings, Inc. in a private sale.

Outbound Investments

• In November 2021, Enact completed the acquisition of Genworth Financial Mauritius Holdings Limited from Genworth Financial International Holdings for $27 million.
• The acquisition primarily involved a minority ownership interest in a mortgage guarantee business in India, which Enact classified as an equity method investment.