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AM Best Upgrades Credit Ratings of Enact Holdings, Inc. and Certain Operating Subsidiaries

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  • AM Best upgraded the Financial Strength Rating of Enact US-domiciled companies (EMIC & EMIC-NC) from A- to A (Excellent).
  • AM Best upgraded the Long-Term Issuer Credit Rating of Enact US-domiciled companies from "a-" to "a" (Excellent).
  • AM Best upgraded the Long-Term ICR of parent company Enact Holdings, Inc. (EHI) from "bbb-" to "bbb" (Good).
  • The outlook for all mentioned ratings was revised from positive to stable.
  • The rating upgrades reflect improved balance sheet strength & diminished risk from ultimate parent Genworth Financial, Inc. (GFI) due to meaningful credit separation.
  • EMIC is the flagship insurer approved by Fannie Mae & Freddie Mac, while EMIC-NC insures non-GSE mortgage loans.
  • AM Best assessed the balance sheet strength of the Enact US-domiciled companies as very strong, supported by top-tier risk-adjusted capitalization & PMIERs compliance.
  • Operating performance was assessed as strong based on favorable loss & combined ratios over the past five years.
  • The business profile is considered limited due to the monoline nature of the companies & stiff competition from other insurers & government agencies.
  • Enterprise risk management (ERM) was assessed as appropriate, featuring a robust framework embedded across the organizations.
  • AM Best serves as a global credit rating agency with operations in over 100 countries.