Key Highlights

  • Third quarter revenues were USD 312.85 million against an estimate of USD 317.92 million and USD 311.455 million last year.
  • EPS was USD 1.15 against an estimate of USD 1.19, with adjusted Operating Income of USD 1.19 per diluted share.
  • Loss ratio was 20% against 15% in the prior-year quarter, and the expense ratio was 21% against 22%.
  • Full-year 2026 Capital return guidance was raised to approximately USD 600 million, with a USD 0.24 quarterly Dividend declared.

Enact Holdings, Inc. (NASDAQ:ACT) reported third quarter total revenues of USD 312.85 million, against an estimate of USD 317.92 million and USD 311.455 million in the same quarter of 2025. Net Income was USD 159 million, or USD 1.15 per diluted share, against an estimate of USD 1.19 per share and USD 1.10 a year earlier. Adjusted operating income was USD 164 million, or USD 1.19 per diluted share.

Revenue

Net premiums earned were USD 242 million, against USD 245 million in both the second quarter of 2026 and the third quarter of 2025. The company said the change was driven mainly by higher ceded premiums from its continued use of Quota share reinsurance, partly offset by premium growth in adjacencies and primary insurance in-force growth.

Net Investment income was USD 74 million against USD 69 million, which the company attributed to higher portfolio book yields. New insurance written was USD 14 billion, flat from a year earlier. Primary insurance in-force was USD 275 billion against USD 272 billion, and persistency was 81% against 83%.

Profit and Margins

Losses incurred were USD 47 million against USD 36 million, giving a loss ratio of 20% against 15%. The company cited higher new delinquencies consistent with seasonal patterns, partly offset by a lower claim rate. A reserve release of USD 37 million compares with USD 45 million in the third quarter of 2025.

Operating expenses were USD 50 million against USD 53 million, and the expense ratio was 21% against 22%. Management said the decrease reflected ceding commissions and expense management, and that Operating Expense guidance, excluding reorganization costs, was adjusted to the lower end of the USD 205 million to USD 210 million range given last quarter. Annualized Return on Equity was 12.0% and annualized adjusted operating return on equity was 12.4%, against 12.4% and 12.6% a year earlier.

Cash, Capital Return and Guidance

The Parent Company held USD 286 million in cash and cash equivalents plus USD 427 million of invested Assets at September 30, after a USD 200 million dividend from its Mortgage insurance subsidiary. PMIERs sufficiency was 158%, or about USD 1.8 billion, against 162% and USD 1.9 billion a year earlier. Book Value per share was USD 38.30.

In the quarter the company repurchased about 2.4 million shares at an average price of USD 48.19 for about USD 118 million. Through November 3 it repurchased about 1.3 million more shares at an average price of USD 45.68 for USD 57 million, with about USD 200 million remaining of a USD 500 million authorization. It paid a dividend of about USD 33 million, or USD 0.24 per share, and the board declared another USD 0.24 payable December 17 to holders of record on November 25. Management raised its 2026 capital return guidance to approximately USD 600 million; the final amount depends on Business performance, market conditions and regulatory approval.

Data Points to Watch

Revenue of USD 312.85 million sits alongside EPS of USD 1.15, a loss ratio of 20% and PMIERs sufficiency of 158%.

Management named several items it is tracking: the USD 600 million capital return guidance, the USD 0.24 dividend payable December 17, and operating expenses at the lower end of the USD 205 million to USD 210 million range. During the quarter it announced a quota share Reinsurance agreement that cedes approximately 35% of a portion of new insurance written for the 2028 book year. The CEO said the company continues to execute on its strategic priorities.