Enact Holdings(ACT)
$45.83-0.33 (-0.71%)
ACT
Enact Holdings earnings date
$45.83
At close:-0.33 (-0.71%)
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Enact Holdings (ACT) Q3 2026 Earnings Report
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ACT Q3 2026 EPS Results
- Actual EPS
- $1.15
- Consensus EPS
- $1.19
- Beat/Miss
- Missed by -$0.04
- One Year Ago EPS
- $1.12
ACT Q3 2026 Revenue Results
- Actual Revenue
- $312.85M
- Expected Revenue
- $317.92M
- Beat/Miss
- Missed by -$5.07M
- YoY Revenue Growth
- +0.45%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 11/04/2026
- Time
- After Close
- Conference Call
- Wednesday, November 4, 2026
ACT Upcoming Earnings
Enact Holdings's next earnings date is estimated for February 9, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
ACT Q3 2026 Earnings Call
0:00 / 0:00
Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was predominantly positive. Enact reported solid earnings, strong capital and liquidity, favorable credit performance, disciplined expense management, rating upgrades, attractive reinsurance conditions and higher capital return guidance. These strengths were partly offset by higher mortgage rates, lower sequential new insurance written, declining premium rates, rising delinquencies and losses, increased unrealized investment losses, competitive pricing and uncertainty around the proposed housing policy pilot.
Company Guidance
Enact now expects 2026 capital returns to be approximately $600 million, while the final amount and form of capital return to shareholders will ultimately depend on business performance, market conditions and regulatory approvals; it now forecasts 2026 expenses, excluding reorganization costs, to be at the lower end of the $205 million to $210 million range, and said that as it heads into the fourth quarter the delinquency rate could tick up based on normal seasonality, with it certainly possible that delinquency rates continue to gradually increase into 2027 as recent book years continue to season up their normal loss development curve, while it does not provide guidance on loss ratio from a pricing perspective.
- Higher 2026 Capital Return GuidanceEnact increased its 2026 capital return expectation to approximately $600 million, citing strong results, favorable credit performance, business performance and confidence in the business.
- Solid Third-Quarter Earnings and Return on EquityThird-quarter adjusted operating income was $164 million, or $1.19 per diluted share, compared with $1.12 per diluted share in the same period last year and $1.26 per diluted share in the second quarter of 2026. Adjusted operating return on equity was 12.4%.
- Insurance in Force IncreasedNew insurance written was $14 billion, resulting in primary insurance in force of $275 billion, up $3 billion, or approximately 1%, year-over-year and up $1 billion from the second quarter.
- Resilient Portfolio Credit CharacteristicsAt quarter-end, the risk-weighted average credit score was 747, the risk-weighted average loan-to-value ratio was 93%, and layered risk was 1.1% of risk-in-force. Management said the portfolio continues to demonstrate resilience, supported by prudent underwriting, strong borrower credit characteristics and meaningful embedded home equity.
- Elevated Persistency Supported by Mortgage RatesPersistency was 81% in the quarter, up 1 point sequentially and above the company's 78% long-term historical average. Approximately 89% of insured loans had mortgage rates below 7%, supporting elevated persistency. Persistency has been over 80% for 18 straight quarters.
- Strong Credit Performance and Reserve ReleaseManagement said overall credit performance remains strong, with recent books performing in line with expectations. Favorable cure performance and effective loss mitigation activities drove a $37 million reserve release in the quarter. The cure rate was 50%, remained elevated and was in line with seasonal trends.
- Recent Vintages Performing in Line With Pricing ExpectationsThe 2022 and 2023 vintages, which have higher purchase originations and higher risk attributes such as loan-to-value and debt-to-income ratios, were described as performing in line with or better than pricing expectations.
- Prudent Expense ManagementOperating expenses were $50 million, down from $52 million in the second quarter of 2026 and $53 million in the third quarter of 2025. The expense ratio was 21%, and management expects full-year 2026 expenses excluding reorganization costs to be at the lower end of the previously provided $205 million to $210 million range.
- Strong Capital and Liquidity PositionThe PMIERs sufficiency ratio was 158%, or $1.8 billion above PMIERs requirements, at the end of the quarter. The third-party CRT program provided $2 billion of PMIERs capital credit, and the company also has an undrawn credit facility.
- Expanded Quota Share Reinsurance CoverageEnact entered into a new forward quota share reinsurance agreement that will cede approximately 35% of 2028 new insurance written to a broad panel of highly rated reinsurers. Management said the transaction provides certainty of coverage at favorable market terms.
- Favorable Reinsurance Market ConditionsManagement described demand for mortgage credit default risk in the reinsurance market as very strong. Enact continues to source its reinsurance needs through the traditional market at attractive terms, with costs over the last 12 to 24 months described as being on the low end of the low- to mid-single-digit cost-of-capital range.
- Credit and Financial Strength Rating UpgradesA.M. Best upgraded EMIC and EMIC NC's financial strength ratings to A from A- and Enact Holding, Inc.'s issuer credit rating to BBB from BBB-, all with stable outlooks.
- Enact Re Delivered Strong PerformanceEnact Re generated attractive risk-adjusted returns while remaining capital and expense efficient. Management continues to view Enact Re as a long-term growth and diversification opportunity.
- Shareholder Distributions During the QuarterEnact returned $151 million through share repurchases and dividends during the quarter. This included approximately $33 million, or $0.24 per share, in quarterly dividends and the repurchase of 2.4 million shares at an average share price of $48.19 for $118 million.
- Investment Income GrowthInvestment income was $74 million, up $1 million, or 2%, sequentially and up $5 million, or 9%, year-over-year. The new money investment yield was over 5.5%, and the average portfolio book yield increased by 10 basis points to 4.7%.
- Risk-Based Pricing and Underwriting DisciplineEnact continues to use its Rate360 dynamic pricing engine to assess risk at a granular level using borrower characteristics, loan attributes and its prospective view of housing conditions. Management emphasized selecting the right risk at the right price as market conditions evolve.
- Continued Strategic and Operational InvestmentEnact said it remains focused on maintaining a strong balance sheet, investing to drive organic growth and operating efficiencies, funding attractive new business opportunities and returning excess capital to shareholders.
- Support for VantageScore 4.0 RolloutEnact continues to participate in the rollout of VantageScore 4.0 and said it will fully support customers as adoption progresses.
- Housing Fundamentals Supporting Mortgage InsuranceAlthough mortgage rates increased, housing supply continued to normalize and home prices continued to appreciate nationwide, supporting borrower equity and mortgage credit performance. Management said long-term housing-demand drivers remain intact and reinforce the role of private mortgage insurance in expanding access to sustainable homeownership.
- Support for Housing Affordability InitiativeEnact expressed support for the administration's focus on lowering the cost of homeownership and said it is committed to expanding access to affordable homeownership while protecting taxpayers and supporting the safety and soundness of the housing finance system.
ACT Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 09, 2027 | 2026 (Q4) | 1.17- | 1.22 | ― | ― |
| Nov 04, 2026 | 2026 (Q3) | 1.191.15 | 1.12 | 2.68% (+0.03) | |
| Aug 05, 2026 | 2026 (Q2) | 1.191.25 | 1.15 | 8.70% (+0.10) | |
| May 05, 2026 | 2026 (Q1) | 1.201.18 | 1.1 | 7.27% (+0.08) | |
| Feb 03, 2026 | 2025 (Q4) | 1.081.22 | 1.09 | 11.93% (+0.13) | |
| Nov 05, 2025 | 2025 (Q3) | 1.081.12 | 1.16 | -3.45% (-0.04) | |
| Jul 30, 2025 | 2025 (Q2) | 1.101.15 | 1.27 | -9.45% (-0.12) | |
| Apr 30, 2025 | 2025 (Q1) | 1.081.10 | 1.04 | 5.77% (+0.06) | |
| Feb 04, 2025 | 2024 (Q4) | 1.031.09 | 0.98 | 11.22% (+0.11) | |
| Nov 06, 2024 | 2024 (Q3) | 1.001.16 | 1.02 | 13.73% (+0.14) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat Missed
