Enact Holdings, Inc. operates as a prominent private mortgage insurance (PMI) company in the United States housing finance market. The company's core business model revolves around writing and assuming residential mortgage guaranty insurance, which provides credit protection to mortgage lenders and investors by covering a portion of the unpaid principal balance of mortgage loans in the event of borrower default. Enact's product offerings include private mortgage insurance for prime-based, individually underwritten residential mortgage loans, as well as pool mortgage insurance, contract underwriting services, and mortgage-related reinsurance products. Geographically, Enact operates across all 50 U.S. states and the District of Columbia. The company generates revenue primarily through insurance premiums paid by borrowers or lenders, as well as investment income from its portfolio. Enact serves a diverse customer base of approximately 1,800 mortgage lenders, encompassing large money center banks, non-bank lenders, national and local mortgage bankers, community banks, and credit unions. Originally founded in 1981 and formerly known as Genworth Mortgage Holdings, Inc., the company was spun off from Genworth Financial and rebranded as Enact Holdings, Inc. prior to its 2021 initial public offering. Enact maintains a strong competitive position in the U.S. PMI market through its extensive risk and capital management strategies, including quota share and excess of loss reinsurance transactions, and its long-tenured relationships with top mortgage originators.
