Enact Holdings, Inc. (ACT) · Nov 4, 2026 · Earnings
In line — Adj. EPS $1.19 vs ~$1.19 consensus
Enact’s third-quarter earnings meet expectations, while lower expense guidance and a $600 million capital-return outlook offset weaker loss trends.
Enact is a private mortgage insurer building a durable, capital-light earnings stream from its existing insurance book while using reinsurance to manage risk and return excess capital. Its prior quarter had already set a $550 million–$600 million 2026 capital-return range, and the company had separately announced 35% quota-share coverage for part of its 2028 book.
The quarter itself was in line, not a fresh earnings upside surprise. Adjusted operating EPS of $1.19 matched the published consensus of roughly $1.19, while revenue of $312.9 million fell short of the roughly $317.9 million estimate.
| Q3 2026 | Q3 2025 | Consensus / prior guidance | |
|---|---|---|---|
| Adj. diluted operating EPS (Financial Highlights) | $1.19 | $1.12 | $1.19 consensus |
| Total revenues (Consolidated Statements of Income) | $312.9M | $311.5M | $317.9M consensus |
| Loss ratio (Financial Highlights) | 20% | 15% | |
| Operating expenses (Financial Highlights) | $50M | $53M | |
| 2026 operating expense guidance (Operating expenses) | $205M | $205M–$210M prior guidance | |
| 2026 capital return (Capital return) | $600M | $550M–$600M prior guidance |
The operating mix was less clean than the headline EPS. Net premiums earned slipped 1% year over year, and the loss ratio rose to 20% from 15% as newer books developed and seasonal delinquencies increased, despite the same $37 million reserve release as the prior quarter. src: Losses incurred for the third quarter of 2026 were $47million and the loss ratio was 20%, compared to $33million and 14%, respectively, in the second quarter of 2026 and $36million and 15%, respectively, in the third quarter of 2025.⟧
Expense control and capital generation cushion the weaker claims trend. Operating expenses fell to $50 million, leading management to move full-year expense expectations to the low end of the existing range. src: Based on performance year to date, operating expense guidance, excluding reorganization costs, has been adjusted to the lower end of the $205million to $210million range provided last quarter.⟧ The company also now expects approximately $600 million of total 2026 capital return, an increase from the midpoint range previously communicated. src: We now anticipate a total 2026 capital return of approximately $600million reflecting our continued strong financial position and confidence in our business.⟧
The balance sheet remains supportive but is not getting stronger on every measure. Primary insurance in force grew to $275 billion from $272 billion a year earlier, but PMIERs sufficiency declined to 158% from 162% and book value per share fell sequentially as capital was returned. src: PMIERs sufficiency was 158% and $1.8billion above the PMIERs requirements, compared to $161% and $1.9billion and 162% and $1.9billion above the PMIERs requirements respectively in the second quarter of 2026 and the third quarter of 2025.⟧
Bottom line: This is an earnings-in-line quarter with better cost discipline and a firmer capital-return outlook, but worsening loss trends keep it from being a clean positive surprise. The underlying Enact story advances modestly rather than being materially rewritten.
Q3 earnings call, November 5
A buy-side analyst on every ticker — it reads every public company's filing the instant it drops and decodes it into plain English.
A buy-side analyst on every ticker — the whole market decoded the second it moves, before it's a headline. Free gives you a taste. Pro takes the cap off and opens the full read on every company.
by Signing in NOW, claim your FREE 14-day Pro trial!