Enact Reports First Quarter 2026 Results
Rhea-AI Summary
Enact (Nasdaq: ACT) reported 1Q26 GAAP net income of $168 million ($1.18 diluted) and adjusted operating income of $172 million ($1.21 diluted). Primary insurance in-force was $272 billion, NIW was $13 billion, PMIERs sufficiency was 162% (~$1.9B), and the board raised the quarterly dividend to $0.24.
Highlights include buybacks of ~2.3M shares (~$93M) in the quarter, continued elevated persistency at 80%, and net investment losses of $6M in the period.
Positive
- GAAP net income of $168 million in 1Q26
- Adjusted operating income of $172 million in 1Q26
- NIW +30% YoY to $13 billion
- PMIERs sufficiency 162% (~$1.9 billion)
- Dividend increased 14% to $0.24 per share
- Share repurchases completed $93M in quarter; additional $30M through Apr 30
Negative
- Losses incurred rose to $37 million; loss ratio 15%
- Net investment losses of $6 million in 1Q26
- NIW down 11% sequentially from 4Q25
- Persistency declined to 80% from 84% year-over-year
Key Figures
Market Reality Check
Peers on Argus
ACT is down 0.47% with modestly elevated volume, while close mortgage-insurance peers ESNT, RDN and MTG show small gains and broader peers FAF and AXS are slightly negative. Mixed peer moves and lack of momentum flags point to a stock-specific setup around these earnings.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Apr 09 | Earnings call notice | Neutral | -1.9% | Scheduled Q1 2026 earnings release and conference call details. |
| Feb 23 | Parent earnings | Positive | +0.8% | Genworth Q4 2025 results including strong Enact operating contribution. |
| Feb 03 | Quarterly results | Positive | +9.3% | Enact Q4 and 2025 results with solid income and capital returns. |
| Jan 08 | Earnings call notice | Neutral | -0.3% | Announcement of Q4 2025 earnings release and conference call. |
| Nov 05 | Parent earnings | Positive | +2.3% | Genworth Q3 2025 results highlighting Enact growth and capital returns. |
Earnings-related headlines for Enact and its parent have typically seen modest positive moves, with one strong rally on Enact’s prior quarterly results and occasional small pullbacks around call announcements.
Over the past six months, earnings and related announcements have been a key driver for Enact. Q4 and full-year 2025 results on Feb 3, 2026 coincided with a 9.27% move, highlighting sensitivity to strong financial updates. Parent Genworth’s Q3 and Q4 2025 earnings, which referenced Enact’s performance and capital plans, also saw positive reactions. In contrast, simple scheduling releases for earnings calls on Jan 8, 2026 and Apr 9, 2026 prompted small declines. Today’s Q1 2026 report fits into this cadence of frequent, capital-focused earnings communication.
Historical Comparison
Over the last five earnings-related headlines, ACT moved on average about 2.02%, with one notably strong reaction to Q4 2025 results, suggesting investors often respond meaningfully to fundamental updates.
Recent earnings news traces Enact’s progression from strong Q3 and Q4 2025 contributions under Genworth through standalone Q4 2025 results and into Q1 2026, with a consistent focus on capital strength, PMIERs sufficiency and shareholder returns.
Market Pulse Summary
This announcement details Q1 2026 performance with GAAP net income of $168M, adjusted operating income of $172M, a 15% loss ratio, and primary insurance in-force of $272B. Capital strength remains a focus, with PMIERs sufficiency at 162% and a 14% dividend increase to $0.24 per share alongside active buybacks. Historically, earnings and capital-return updates have driven noticeable stock moves, so investors may watch upcoming credit trends, new insurance written, and capital deployment pace closely.
Key Terms
adjusted operating income financial
return on equity financial
restricted stock units financial
deferred stock units financial
basis points financial
AI-generated analysis. Not financial advice.
GAAP Net Income of
Adjusted Operating Income of
Return on Equity of
Primary Insurance in-force of
PMIERs Sufficiency of
Book Value Per Share of
RALEIGH, N.C., May 05, 2026 (GLOBE NEWSWIRE) -- Enact Holdings, Inc. (Nasdaq: ACT) today announced financial results for the first quarter of 2026.
“Enact delivered a strong start to 2026, reflecting disciplined execution, resilient credit performance, and our continued focus on long-term value creation,” said Rohit Gupta, President and CEO of Enact. “Affordability and mortgage rate volatility continued to shape housing activity, and against this backdrop we continued to demonstrate the resiliency of our model, prudently growing new insurance written while maintaining our focus on expense and risk management. As we look ahead, our strong balance sheet, differentiated capabilities and ongoing commitment to innovation position us to succeed in this dynamic market environment as we help people responsibly achieve homeownership.”
Key Financial Highlights
| (In millions, except per share data or otherwise noted) | 1Q26 | 4Q25 | 1Q25 | ||||||||
| Net Income (loss) | |||||||||||
| Diluted Net Income (loss) per share | |||||||||||
| Adjusted Operating Income (loss) | |||||||||||
| Adj. Diluted Operating Income (loss) per share | |||||||||||
| NIW ($B) | |||||||||||
| Primary Persistency Rate | |||||||||||
| Primary IIF ($B) | |||||||||||
| Net Premiums Earned | |||||||||||
| Losses Incurred | |||||||||||
| Loss Ratio | |||||||||||
| Operating Expenses | |||||||||||
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| Net Investment Income | |||||||||||
| Net Investment gains (losses) | |||||||||||
| Return on Equity | |||||||||||
| Adjusted Operating Return on Equity | |||||||||||
| PMIERs Sufficiency ($) | |||||||||||
| PMIERs Sufficiency (%) | |||||||||||
First Quarter 2026 Financial and Operating Highlights
- Net income was
$168 million , or$1.18 per diluted share, compared with$177 million , or$1.22 per diluted share, for the fourth quarter of 2025 and$166 million , or$1.08 per diluted share, for the first quarter of 2025. Adjusted operating income was$172 million , or$1.21 per diluted share, compared with$179 million , or$1.23 per diluted share, for the fourth quarter of 2025 and$169 million , or$1.10 per diluted share, for the first quarter of 2025. - New insurance written (NIW) was
$13 billion , down11% from the fourth quarter of 2025, and up30% from the first quarter of 2025. NIW for the current quarter was comprised of96% monthly premium policies and77% purchase originations. - Persistency remained elevated at
80% , flat compared to the fourth quarter of 2025 and down from84% in the first quarter of 2025. Approximately21% of the mortgages in our portfolio had rates at least 50 basis points above March 2026’s average mortgage rate of6.2% . - Primary insurance in-force (IIF) was
$272 billion , down modestly from$273 billion in the fourth quarter of 2025 and up approximately2% from$268 billion in the first quarter of 2025. - Net premiums earned were
$243 million , down1% from$246 million in the fourth quarter of 2025 and down1% from$245 million in the first quarter of 2025 primarily driven by higher ceded premiums. - Losses incurred for the first quarter of 2026 were
$37 million and the loss ratio was15% , compared to$18 million and7% , respectively, in the fourth quarter of 2025 and$31 million and12% , respectively, in the first quarter of 2025. The current quarter’s$39 million net reserve release compares to a net reserve release of$60 million , inclusive of our claim rate reduction from9% to8% , and$47 million in the fourth quarter of 2025 and first quarter of 2025, respectively. - Operating expenses in the current quarter were
$49 million , and the expense ratio was20% . This is compared to$59 million and24% , respectively, in the fourth quarter of 2025 and$53 million and21% , respectively, in the first quarter of 2025. The sequential decrease was primarily driven by incentive-based compensation. - Net investment income was
$71 million , up from$69 million in the fourth quarter of 2025 and up from$63 million in the first quarter of 2025, driven by the continuation of elevated interest rates and higher average invested assets. - Net investment gains (losses) in the quarter were
$(6) million , as compared to$(3) million sequentially and$(3) million in the same period last year. The activity is primarily driven by the identification of assets that upon selling allow us to recoup losses through higher net investment income. - Annualized return on equity for the first quarter of 2026 was
12.5% and annualized adjusted operating return on equity was12.9% . This compares to the fourth quarter of 2025 results of13.3% and13.5% , respectively, and to first quarter of 2025 results of13.1% and13.4% , respectively.
Capital and Liquidity
- We paid approximately
$30 million , or$0.21 per share, in dividends in the first quarter. - EMICO completed a dividend of
$150 million in the first quarter that will primarily be used to support our ability to return capital to shareholders and bolster financial flexibility. - Enact Holdings, Inc. held
$287 million in cash and cash equivalents plus$365 million of invested assets as of March 31, 2026. Combined cash and invested assets is up$25 million from the prior quarter, primarily due to the dividend from EMICO partially offset by the return of capital. - PMIERs sufficiency was
162% and$1.9 billion above the PMIERs requirements, compared to162% and$1.9 billion above the PMIERs requirements in the fourth quarter of 2025. - As previously announced, during the quarter S&P upgraded the financial strength rating outlook for EMICO, EHI and Enact Re to positive.
Recent Events
- We repurchased approximately 2.3 million shares at an average price of
$40.66 for a total of approximately$93 million in the quarter. Additionally, through April 30, 2026, we repurchased 0.7 million shares at an average price of$42.56 for a total of$30 million . During the quarter we completed our$350 million share repurchase authorization announced April 30, 2025. As of April 30, 2026, approximately$438 million remains of our previously announced$500 million repurchase authorization. - Today we announced the Company’s Board of Directors declared a
14% increase to our quarterly dividend from$0.21 t o$0.24 per common share, payable on June 18, 2026, to shareholders of record on May 28, 2026.
Conference Call and Financial Supplement Information
This press release, the first quarter 2026 financial supplement and earnings presentation are now posted on the Company’s website, https://ir.enactmi.com. Investors are encouraged to review these materials.
Enact will discuss first quarter financial results in a conference call tomorrow, Wednesday, May 6, 2026, at 8:00 a.m. (Eastern). Participants interested in joining the call’s live question and answer session are required to pre-register by clicking here to obtain your dial-in number and unique PIN. It is recommended to join at least 15 minutes in advance, although you may register ahead of the call and dial in at any time during the call. If you wish to join the call but do not plan to ask questions, a live webcast of the event will be available on our website, https://ir.enactmi.com/news-and-events/events.
The webcast will also be archived on the Company’s website for one year.
About Enact
Enact (Nasdaq: ACT), operating principally through its wholly owned subsidiary Enact Mortgage Insurance Corporation since 1981, is a leading U.S. private mortgage insurance provider committed to helping more people achieve the dream of homeownership. Building on a deep understanding of lenders' businesses and a legacy of financial strength, we partner with lenders to bring best-in class service, leading underwriting expertise, and extensive risk and capital management to the mortgage process, helping to put more people in homes and keep them there. By empowering customers and their borrowers, Enact seeks to positively impact the lives of those in the communities in which it serves in a sustainable way. Enact is headquartered in Raleigh, North Carolina.
Safe Harbor Statement
This communication contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may address, among other things, our expected financial and operational results, the related assumptions underlying our expected results, guidance concerning the future return of capital and the quotations of management. These forward-looking statements are distinguished by use of words such as “will,” “may,” “would,” “anticipate,” “expect,” “believe,” “designed,” “plan,” “predict,” “project,” “target,” “could,” “should,” or “intend,” the negative of these terms, and similar references to future periods. These views involve risks and uncertainties that are difficult to predict and, accordingly, our actual results may differ materially from the results discussed in our forward-looking statements. Our forward-looking statements contained herein speak only as of the date of this press release. Factors or events that we cannot predict, including risks related to an economic downturn or a recession in the United States and in other countries around the world; changes in political, business, regulatory, and economic conditions; changes in or to Fannie Mae and Freddie Mac (the “GSEs”), whether through Federal legislation, restructurings or a shift in business practices; failure to continue to meet the mortgage insurer eligibility requirements of the GSEs; competition for customers; lenders or investors seeking alternatives to private mortgage insurance; an increase in the number of loans insured through Federal government mortgage insurance programs, including those offered by the Federal Housing Administration; and other factors described in the risk factors contained in our most recent Annual Report on Form 10-K and other filings with the SEC, may cause our actual results to differ from those expressed in forward-looking statements. Although Enact believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, Enact can give no assurance that its expectations will be achieved and it undertakes no obligation to update publicly any forward-looking statements as a result of new information, future events, or otherwise, except as required by applicable law.
GAAP/Non-GAAP Disclosure Discussion
This communication includes the non-GAAP financial measures entitled “adjusted operating income (loss),” “adjusted operating income (loss) per share," and “adjusted operating return on equity." Enact Holdings, Inc. (the “Company”) defines adjusted operating income (loss) as net income (loss) excluding the after-tax effects of net investment gains (losses), restructuring costs and infrequent or unusual non-operating items, and gain (loss) on the extinguishment of debt. The Company excludes net investment gains (losses), gains (losses) on the extinguishment of debt and infrequent or unusual non-operating items because the Company does not consider them to be related to the operating performance of the Company and other activities. The recognition of realized investment gains or losses can vary significantly across periods as the activity is highly discretionary based on the timing of individual securities sales due to such factors as market opportunities or exposure management. Trends in the profitability of our fundamental operating activities can be more clearly identified without the fluctuations of these realized gains and losses. We do not view them to be indicative of our fundamental operating activities. Therefore, these items are excluded from our calculation of adjusted operating income. In addition, adjusted operating income (loss) per share is derived from adjusted operating income (loss) divided by shares outstanding. Adjusted operating return on equity is calculated as annualized adjusted operating income for the period indicated divided by the average of current period and prior periods’ ending total stockholders’ equity.
While some of these items may be significant components of net income (loss) in accordance with U.S. GAAP, the Company believes that adjusted operating income (loss) and measures that are derived from or incorporate adjusted operating income (loss), including adjusted operating income (loss) per share on a basic and diluted basis and adjusted operating return on equity, are appropriate measures that are useful to investors because they identify the income (loss) attributable to the ongoing operations of the business. Management also uses adjusted operating income (loss) as a basis for determining awards and compensation for senior management and to evaluate performance on a basis comparable to that used by analysts. Adjusted operating income (loss) and adjusted operating income (loss) per share on a basic and diluted basis are not substitutes for net income (loss) available to Enact Holdings, Inc.’s common stockholders or net income (loss) available to Enact Holdings, Inc.’s common stockholders per share on a basic and diluted basis determined in accordance with U.S. GAAP. In addition, the Company’s definition of adjusted operating income (loss) may differ from the definitions used by other companies.
Adjustments to reconcile net income (loss) available to Enact Holdings, Inc.’s common stockholders to adjusted operating income (loss) assume a
The tables at the end of this press release provide a reconciliation of net income (loss) to adjusted operating income (loss) and U.S. GAAP return on equity to adjusted operating return on equity for the three months ended March 31, 2026 and 2025, as well as for the three months ended December 31, 2025.
Exhibit A: Consolidated Statements of Income (amounts in thousands, except per share amounts)
| 1Q26 | 4Q25 | 1Q25 | |||||||
| REVENUES: | |||||||||
| Premiums | |||||||||
| Net investment income | 70,906 | 68,621 | 63,037 | ||||||
| Net investment gains (losses) | (5,823) | (2,856) | (3,243) | ||||||
| Other income | 4,136 | 1,199 | 2,196 | ||||||
| Total revenues | 312,069 | 312,706 | 306,776 | ||||||
| LOSSES AND EXPENSES: | |||||||||
| Losses incurred | 37,161 | 17,811 | 30,541 | ||||||
| Acquisition and operating expenses, net of deferrals | 47,037 | 57,134 | 50,094 | ||||||
| Amortization of deferred acquisition costs and intangibles | 2,123 | 2,211 | 2,429 | ||||||
| Interest expense | 12,368 | 12,465 | 12,291 | ||||||
| Total losses and expenses | 98,689 | 89,621 | 95,355 | ||||||
| INCOME BEFORE INCOME TAXES | 213,380 | 223,085 | 211,421 | ||||||
| Provision for income taxes | 45,608 | 45,924 | 45,643 | ||||||
| NET INCOME | $167,772 | $177,161 | $165,778 | ||||||
| Net investment (gains) losses | 5,823 | 2,856 | 3,243 | ||||||
| Costs associated with reorganization | — | 26 | 629 | ||||||
| Taxes on adjustments | (1,223) | (605) | (813) | ||||||
| Adjusted Operating Income | $172,372 | $179,438 | $168,837 | ||||||
| Loss ratio(1) | |||||||||
| Expense ratio(2) | |||||||||
| Earnings Per Share Data: | |||||||||
| Net Income per share | |||||||||
| Basic | |||||||||
| Diluted | |||||||||
| Adj operating income per share | |||||||||
| Basic | |||||||||
| Diluted | |||||||||
| Weighted-average common shares outstanding | |||||||||
| Basic | 141,595 | 144,290 | 151,831 | ||||||
| Diluted | 142,634 | 145,294 | 152,907 | ||||||
| (1)The ratio of losses incurred to net earned premiums. | |||||||||
| (2)The ratio of acquisition and operating expenses, net of deferrals, and amortization of deferred acquisition costs and intangibles to net earned premiums. Expenses associated with strategic transaction preparations and restructuring costs did not impact the expense ratio for the periods presented. | |||||||||
Exhibit B: Consolidated Balance Sheets (amounts in thousands, except per share amounts)
| Assets | 1Q26 | 4Q25 | 1Q25 | ||||||
| Investments: | |||||||||
| Fixed maturity securities available-for-sale, at fair value | |||||||||
| Short term investments | — | — | 3,696 | ||||||
| Total investments | 6,133,789 | 6,050,542 | 5,819,033 | ||||||
| Cash and cash equivalents | 549,040 | 582,493 | 635,269 | ||||||
| Accrued investment income | 56,344 | 56,073 | 49,654 | ||||||
| Deferred acquisition costs | 22,177 | 22,232 | 23,322 | ||||||
| Premiums receivable | 47,398 | 46,130 | 46,451 | ||||||
| Other assets | 122,692 | 116,007 | 103,351 | ||||||
| Deferred tax asset | 30,562 | 19,989 | 44,440 | ||||||
| Total assets | $6,962,002 | $6,893,466 | $6,721,520 | ||||||
| Liabilities and Shareholders' Equity | |||||||||
| Liabilities: | |||||||||
| Loss reserves | |||||||||
| Unearned premiums | 85,252 | 91,639 | 107,519 | ||||||
| Other liabilities | 197,956 | 129,695 | 208,667 | ||||||
| Long-term borrowings | 744,853 | 744,481 | 743,399 | ||||||
| Total liabilities | 1,618,454 | 1,538,285 | 1,602,113 | ||||||
| Equity: | |||||||||
| Common stock | 1,403 | 1,422 | 1,508 | ||||||
| Additional paid-in capital | 1,609,712 | 1,706,481 | 2,007,776 | ||||||
| Accumulated other comprehensive income | (82,711) | (30,143) | (152,482) | ||||||
| Retained earnings | 3,815,144 | 3,677,421 | 3,262,605 | ||||||
| Total equity | 5,343,548 | 5,355,181 | 5,119,407 | ||||||
| Total liabilities and equity | $6,962,002 | $6,893,466 | $6,721,520 | ||||||
| Book value per share | |||||||||
| Book value per share excluding AOCI | |||||||||
| U.S. GAAP ROE(1) | |||||||||
| Net investment (gains) losses | |||||||||
| Costs associated with reorganization | |||||||||
| (Gains) losses on early extinguishment of debt | |||||||||
| Taxes on adjustments | (0.1)% | (0.1)% | |||||||
| Adjusted Operating ROE(2) | 12.9% | 13.5% | 13.4% | ||||||
| Debt to Capital Ratio | 12% | 12% | 13% | ||||||
| (1)Calculated as annualized net income for the period indicated divided by the average of current period and prior periods’ ending total stockholders’ equity | |||||||||
| (2)Calculated as annualized adjusted operating income for the period indicated divided by the average of current period and prior periods’ ending total stockholders’ equity | |||||||||
Investor Contact Jonathan Fleetwood EnactIR@enactmi.com Media Contact Sarah Wentz Sarah.Wentz@enactmi.com