Enact Holdings, Inc. (ACT) reported first‑quarter 2026 earnings on May 05 2026, delivering GAAP net income of $168 million, or $1.18 per diluted share, and adjusted operating income of $172 million, or $1.21 per diluted share. The company’s return on equity stood at 12.5% on a GAAP basis and 12.9% on an adjusted operating basis, underscoring the strength of its capital structure.
Primary insurance in‑force grew 2% year‑over‑year to $272 billion, while the PMIERs sufficiency ratio remained robust at 162%, representing roughly $1.9 billion above regulatory requirements. Book value per share was $38.09, excluding accumulated other comprehensive income, further highlighting the firm’s solid balance sheet.
The loss ratio for the quarter was 15%, up from 7% in Q4 2025, and the expense ratio improved to 20% from 24% in the prior quarter, reflecting effective cost control. New insurance written reached $13 billion, a 30% increase year‑over‑year, though it fell 11% sequentially from Q4 2025. The company raised its quarterly dividend by 14% to $0.24 per share and reaffirmed approximately $500 million in capital returns for 2026.
"Enact delivered a strong start to 2026, reflecting disciplined execution, resilient credit performance, and our continued focus on long‑term value creation," said President and CEO Rohit Gupta. He added, "Affordability and mortgage rate volatility continued to shape housing activity, and against this backdrop we continued to demonstrate the resiliency of our model, prudently growing new insurance written while maintaining our focus on expense and risk management. As we look ahead, our strong balance sheet, differentiated capabilities and ongoing commitment to innovation position us to succeed in this dynamic market environment as we help people responsibly achieve homeownership." Chief Financial Officer Dean Mitchell noted, "Adjusted operating income was $172 million, or $1.21 per diluted share, compared to $1.10 per diluted share in the same period last year and $1.23 per diluted share in the fourth quarter of 2025. On mortgage‑insurance pricing, management said, ‘we’re still very comfortable with the guidance of flattish base premium rate over the course of the full year 2026.’"
The company maintained its full‑year 2026 operating‑expense guidance at $215 million to $220 million, signaling confidence in cost control. Management emphasized that the firm’s capital allocation strategy—dividend increases and share repurchases—remains a priority, reinforcing its commitment to returning value to shareholders while preserving capital for future growth.
Investors reacted cautiously, focusing on the mixed EPS and revenue performance, the rise in the loss ratio, the dividend increase, and the firm’s commitment to capital returns.
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