Enact Holdings Inc (NAS:ACT)

Q2 2026 Enact Holdings Inc Earnings Call Transcript

Aug 6, 2026 / 12:00 PM GMT

Release Date Price: $48.68 (+1.78%)

Transcript 8-K

Key Points

Positve

Enact Holdings Inc (ACT) reported strong Q2 2026 results with adjusted operating income of $177 million, or $1.26 per diluted share, up from $1.15 in the prior year quarter.
The company raised its 2026 capital return guidance to $550-$600 million, up from $500 million, reflecting strong performance and confidence in the business.
New insurance written (NIW) was $15 billion, up 19% sequentially and 15% year-over-year, driven by elevated rates and seasonal dynamics.
Credit performance remained resilient with new delinquencies down 9% sequentially, a reserve release of $37 million, and a loss ratio of 14%.
The company launched its Enact Loan Level Assistant (ELA), a generative AI underwriting tool, to improve risk selection and operational efficiency.
Investment income increased 11% year-over-year to $73 million, supported by a new money yield over 5% and a higher average portfolio book yield of 4.6%.
Operating expenses declined year-over-year despite inflation, with 2026 expense guidance improved to $205-$210 million.
Persistency remained elevated at 80%, supported by 57% of loans with mortgage rates below 6%.
The company maintained a strong capital position with a PMIERs sufficiency ratio of 151% and $1.9 billion in third-party CRT capital credit.
Enact Holdings Inc (ACT) continued to return capital to shareholders, paying $127 million in dividends and buybacks during the quarter.

Negative

Elevated interest rates and policy uncertainty continue to temper housing transaction volumes, impacting overall market growth.
The base premium rate declined 0.3 basis points sequentially to 39.1 basis points, reflecting modest pressure from refinancing activity and mix shifts.
New delinquency rate increased 10 basis points year-over-year to 1.3%, though it remains consistent with pre-pandemic levels.
Cure rates decreased 4 percentage points sequentially to 50%, in line with seasonal trends but indicating potential slowing in loss mitigation.
The company expects an uptick in delinquency rates in the second half of 2026 due to seasonal patterns and the aging of newer vintages with less embedded home price appreciation.
Persistency declined 2 points year-over-year to 80%, reflecting lower prevailing mortgage rates and potential refinancing activity.
The competitive environment remains intense, with pricing pressure that could impact future returns, though management notes it remains attractive on a risk-adjusted basis.
The company took a $1 million reorganization charge in Q2, which is excluded from adjusted operating income but indicates ongoing cost restructuring.
The rollout of VantageScore 4.0 is still in early innings, with limited lender adoption, creating uncertainty about future credit assessment impacts.
The macroeconomic environment, including geopolitical developments and policy uncertainty, continues to contribute to market volatility, which could affect future performance.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

ACT.OQ - Enact Holdings Inc
Q2 2026 Enact Holdings Inc Earnings Call
Aug 06, 2026 / 12:00PM GMT

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Presentation
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Unidentified_1 [1]
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Hello and welcome to annex second quarter earnings call, please be advised that today's conference is being recorded.

I would now like to hand the conference over to your first speaker, Daniel Cole, Vice President of Finance, you may begin.

Thank you and good morning.

Welcome to our second quarter earnings call.

Joining me today are Rohit Gupta, President and Chief Executive Officer.

And Dean Mitchell

Chief Financial Officer and treasurer.

Rohit will provide an overview of our business performance and progress against our strategy.

Dean will then discuss the details of our quarterly results before turning the call back to Rohit for closing remarks.

We

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