Enact Raises 2026 Capital Return Target to About $600 Million

The Tip Desk · November 11, 2026 · 3 min read

Third-quarter net income was $159 million, or $1.15 a share, as losses incurred rose to $47 million and the loss ratio reached 20%.

Enact Holdings, Inc. (ACT), a U.S. private mortgage insurer, reported third-quarter 2026 net income of $159 million, or $1.15 a diluted share, down from $175 million, or $1.25 a share, in the second quarter. Adjusted operating income was $164 million, or $1.19 a share.

The sequential decline tracked a step-up in credit costs. Losses incurred were $47 million and the loss ratio was 20%, compared with $33 million and 14% in the second quarter. The company said the current quarter’s $37 million reserve release compared with $37 million in the second quarter. Excluding reserve releases, it said losses were higher sequentially primarily from higher new delinquencies consistent with seasonal patterns.

New insurance written was $14 billion, down 7% from the second quarter, which the company attributed primarily to lower refinance activity. The mix was 95% monthly premium policies and 93% purchase originations. Primary persistency was 81%. Primary insurance in-force was $275 billion. About 89% of loans in the portfolio carried mortgage rates below 7%.

Net premiums earned were $242 million. The company said both the sequential and year-over-year decrease was primarily driven by higher ceded premiums from continued use of quota share reinsurance, which also produced partially offsetting impacts to expenses and losses. Operating expenses were $50 million and the expense ratio was 21%. The company said the sequential and year-over-year decrease was primarily driven by favorable ceding commissions and continued prudent expense management. Based on year-to-date performance, it said operating expense guidance, excluding reorganization costs, has been adjusted to the lower end of the $205 million to $210 million range provided last quarter.

Net investment income was $74 million, which the company said was driven by higher portfolio book yields. Net investment losses were $6 million. Annualized return on equity was 12.0% and annualized adjusted operating return on equity was 12.4%.

EMICO completed a $200 million dividend to Enact Holdings in the third quarter, which the company said will primarily be used to support capital return and bolster financial flexibility. PMIERs sufficiency was 158%, or $1.8 billion above requirements, and the company said the decrease was primarily driven by the EMICO dividend. AM Best upgraded the insurance financial strength rating for EMICO and EMIC-NC to A from A- and upgraded the long-term issuer rating for Enact Holdings to bbb from bbb-, with a stable outlook.

The company paid a $0.24 a share dividend in the quarter and declared another $0.24 a share, payable December 17, 2026. It repurchased about 2.4 million shares at an average $48.19 for about $118 million, and through November 3 bought about 1.3 million more shares at an average $45.68 for $57 million. About $200 million remains of a previously announced $500 million authorization.

Enact now anticipates a total 2026 capital return of approximately $600 million, replacing its prior $550 million to $600 million range. The company said the final amount and form will depend on business performance, market conditions, and regulatory approval. Combined cash and invested assets were $713 million as of September 30, 2026.