AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a-” (Excellent) for Enact Mortgage Insurance Corporation (EMIC) and Enact Mortgage Insurance Corporation of North Carolina (EMIC-NC). The outlook for Enact Holdings, Inc.'s (EHI) Long-Term ICR was also revised to positive from stable, and affirmed at “bbb-” (Good).
The ratings of the Enact U.S.-domiciled companies are supported by a very strong balance sheet strength, with risk-adjusted capitalization at the strongest level as measured by Best’s Capital Adequacy Ratio (BCAR). This is further bolstered by the companies’ programmatic use of reinsurance and compliance with PMIERs.
The positive outlooks reflect a diminishing risk posed by EHI’s ultimate parent, Genworth Financial, Inc., due to a meaningful separation between their credit profiles and a trend of improvement in Genworth's legacy runoff companies. This indicates a strengthened financial foundation and effective risk management for Enact.
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