Risk Factors Update Summary

• Net spread compression and adverse impact to results of operations due to lower annuity account values driven by block runoff in 2022.
• Adverse effects on profitability if mortality rates are lower than valuation assumptions, requiring greater benefit payments.
• Addition of new lines of business with CareScout may not be successful, posing additional risks.
• Increased capital requirements and reduced credit risk transfer programs could impact mortgage insurance demand and financial condition.
• Third-party vendors may not provide accurate information, maintain controls, meet obligations, or adhere to agreements. This could lead to expenses and adverse effects.
• Potential material adverse impact on business from inability to obtain significant premium rate increases for long-term care insurance products.
• Potential negative impact on profitability due to higher persistency in long-term care insurance policies.
• Strategic plans to strengthen financial position and create shareholder value include maximizing Enact Holdings' value.
• Decline in interest rate margin on annuity products in 2023, affecting business profitability.
• Incremental capital may be required to support Enact Holdings' increased capital needs for growth and regulatory compliance.
• Regulatory changes impacting accounting standards and long-duration targeted improvements, potentially affecting results of operations.
• Challenges may arise for Enact Holdings in refinancing transactions, potentially impacting liquidity and financial condition.
• Uncertainty surrounding economic conditions, including potential recession in 2024, impacting business, financial condition, and results of operations.
• Increased loss reserves in 2021 and 2020 compared to pre-COVID periods, driven by higher delinquencies.
• Increased sensitivity to interest rates, with potential significant impact on financial condition and stockholders' equity.
• Impact of interest rate fluctuations on investment valuations and profitability, especially with rising rates.
• Decline in mortgage originations in 2022 and 2023, negatively impacting new insurance written and financial condition.
• Reinsurance availability may decrease, leading to higher costs and potential inability to obtain new reinsurance.
• Changes in mortgage insurance cancellation practices could impact Enact Holdings' financial condition and operations.
• Enact Holdings' persistency rates increased in 2023 due to rising interest rates, potentially affecting future financial performance.
• The private mortgage insurance industry's performance could impact Enact Holdings' competitiveness and financial condition.