Enact (ACT) TD Financial Services & Fintech Summit summary

Business update and financial performance

• Focuses on sustainable homeownership, risk management, and a strong balance sheet with over 40 years of experience.

• Went public in 2021 and has delivered mid- to high-teens returns since IPO.

• Increased common dividend since 2022 and announced a $250 million share repurchase program.

• Achieved multiple credit rating upgrades, now holding investment grade ratings.

• Completed the sector's largest investment grade debt issuance in a decade.

Industry transformation and resilience

• Post-2008 reforms, including Dodd-Frank and Qualified Mortgage standards, have strengthened underwriting.

• Uniform Master Policy and PMIERs ensure consistent risk and capital standards across the industry.

• Credit risk transfer and granular risk-based pricing enhance agility and resilience.

• Industry demonstrated resilience during COVID, managing delinquencies smoothly.

• Current structure supports higher valuations and risk-adjusted returns.

Market outlook and growth drivers

• Despite a 70-80% drop in origination market, insurance in force continues to grow due to high persistency.

• 2024 MI market size expected to remain around $300 billion, supporting scale for six MI companies.

• Consumer credit performance remains strong, with delinquency rates at pre-pandemic levels.

• Home prices rising 5-6% annually, increasing embedded equity and providing a tailwind.

• Favorable U.S. demographics, with a surge in first-time homebuyers expected through 2026.