Key Highlights

  • Third-quarter Net Income for Enact Holdings (NASDAQ:ACT) reached USD 159 million, equal to USD 1.15 per diluted share, and adjusted Operating Income landed at USD 164 million, or USD 1.19 a share.
  • Capital return expectations for 2026 now sit at about USD 600 million, and the company declared a USD 0.24 quarterly Dividend payable on December 17, 2026.
  • Losses incurred pushed the loss ratio to 20% from 14% in the second quarter, with reserve releases of USD 37 million only partly offsetting the increase.
  • Annualized ROE came in at 12.0% and adjusted operating ROE at 12.4%, while Book Value per share stood at USD 38.30, or USD 40.47 excluding accumulated other comprehensive income.

Year-Over-Year Gain, Sequential Dip in Profit

Enact Holdings (NASDAQ:ACT), a Mortgage insurer, reported its third quarter on November 4, 2026. Profit of USD 159 million compares with USD 163 million a year earlier and USD 175 million three months prior. The per-share result of USD 1.15 exceeds last year's USD 1.10 yet trails the USD 1.25 posted in the second quarter. Adjusted operating income, which leaves out net Investment losses and reorganization charges, reached USD 164 million versus USD 166 million. Fewer shares outstanding helped, with basic weighted shares near 137.4 million against 147.4 million, a 6.8% reduction (calculated). Net premiums earned slipped 1% to USD 242 million.

Loss Ratio Climbs as New Business Written Stays Level

Losses incurred rose to USD 47 million, and the loss ratio moved up to 20%. The company blames seasonal new delinquencies for the quarter-on-quarter jump, and newer books maturing along their anticipated loss curve for the annual increase, partly cushioned by a lower claim rate. Reserve releases of USD 37 million compared with USD 45 million a year ago. New insurance written totaled USD 14 billion, flat year on year, and primary insurance in force grew 1% to USD 275 billion. Persistency reached 81%, roughly 89% of loans carry rates under 7%, and operating expenses were USD 50 million, a 21% expense ratio. Full-year expense guidance sits at the low end of USD 205 to 210 million. Net investment income came to USD 74 million.

Buyback Pace, AM Best Upgrade and the Regulatory Cushion

The company repurchased roughly 2.4 million shares at an average USD 48.19, spending about USD 118 million during the quarter, and bought another 1.3 million for USD 57 million through November 3. That leaves close to USD 200 million on a USD 500 million authorization. An insurance subsidiary's USD 200 million dividend backs the returns, and AM Best lifted the subsidiaries' financial strength ratings to A from A-. PMIERs sufficiency measures the Margin above regulatory Capital demands, standing at 158%, roughly USD 1.8 billion, versus 162% a year ago. Any final return depends on performance, markets and regulators, and a new Reinsurance Quota share will cede approximately 35% of a slice of expected 2028 new business.

Where Things Stand

Plausibly, though not guaranteed. Enact Holdings (NASDAQ:ACT) intends to hand back about USD 600 million through dividends and buybacks, supported by a USD 200 million Subsidiary dividend, and roughly USD 175 million of repurchases had been executed by November 3 (calculated). The quarter was steady but weaker than the second: EPS fell from USD 1.25 and the loss ratio rose. Risks include delinquency trends, smaller reserve releases and the need for regulatory approval. Next markers are the November 5 call, the December 17 payment and the fourth-quarter buyback pace.