Key Highlights

  • Enact Holdings (NASDAQ:ACT) reported third-quarter Net Income of USD 159 million, or USD 1.15 per diluted share, while adjusted Operating Income was USD 164 million, or USD 1.19 per share.
  • The company raised its 2026 Capital return expectation to approximately USD 600 million and declared a quarterly Dividend of USD 0.24 a share, payable on December 17, 2026.
  • Loss ratio rose to 20% from 14% in the second quarter and 15% a year earlier, with losses incurred of USD 47 million after a USD 37 million reserve release.
  • Annualized Return on Equity was 12.0% and adjusted operating return on equity 12.4%, while Book Value per share was USD 38.30, or USD 40.47 excluding accumulated other comprehensive income.

Profit Edges Up on the Year but Falls From the Second Quarter

Enact Holdings (NASDAQ:ACT), a private Mortgage insurer, reported third-quarter results on November 4, 2026. GAAP net income of USD 159 million compared with USD 163 million a year earlier and USD 175 million in the second quarter, so per-share Earnings of USD 1.15 are up from USD 1.10 a year ago but down from USD 1.25 in the prior quarter. Adjusted operating income, a non-GAAP measure that excludes net Investment losses and reorganization costs, was USD 164 million against USD 166 million. Fewer shares helped: the basic weighted average count was about 137.4 million versus 147.4 million a year earlier, a 6.8% drop (calculated). Net premiums earned were USD 242 million, down 1%.

Higher Loss Ratio Meets Steady Insurance in Force

Losses incurred rose to USD 47 million, lifting the loss ratio to 20%. The company attributes the sequential rise to seasonal new delinquencies, and the year-over-year increase to newer books moving along their expected loss pattern, partly offset by a lower claim rate. Reserve releases of USD 37 million were below the USD 45 million of a year ago. New insurance written was USD 14 billion, flat on the year, and primary insurance in force was USD 275 billion, up 1%. Persistency was 81%, and about 89% of loans carry rates below 7%. Operating expenses were USD 50 million, a 21% expense ratio, and full-year expense guidance now sits at the low end of USD 205 to 210 million. Net investment income was USD 74 million.

Buybacks, Ratings Upgrade and a PMIERs Cushion

Enact repurchased about 2.4 million shares at an average price of USD 48.19 for roughly USD 118 million in the quarter, and a further 1.3 million shares for USD 57 million through November 3, leaving about USD 200 million of a USD 500 million authorization. A USD 200 million dividend from its insurance Subsidiary supports that capital return, and AM Best upgraded the subsidiaries' financial strength ratings to A from A-. PMIERs sufficiency, the buffer above regulatory capital requirements, was 158%, or about USD 1.8 billion, down from 162% a year ago. The company says the final amount of capital returned depends on performance, market conditions and regulatory approval. A new Reinsurance Quota share will cede about 35% of part of expected 2028 new business. The Earnings Call is on November 5, 2026.

Where Things Stand

Enact Holdings (NASDAQ:ACT) plans to return about USD 600 million through dividends and buybacks, helped by a USD 200 million subsidiary dividend, with about USD 175 million of repurchases done by November 3 (calculated). The quarter itself was solid but softer: Earnings Per Share eased from USD 1.25 in the second quarter and the loss ratio rose. Remaining risks are delinquency trends, lower reserve releases and regulatory approval. Next markers are the November 5 call, the December 17 dividend and fourth-quarter buyback pace.