ACT · Enact Holdings, Inc.

Enact Holdings reported first quarter 2026 results that reflect disciplined execution and resilient credit performance. GAAP net income was $168 million, or $1.18 per diluted share, compared to $177 million ($1.22) in Q4 2025 and $166 million ($1.08) in Q1 2025. Adjusted operating income was $172 million, or $1.21 per diluted share, versus $179 million ($1.23) sequentially and $169 million ($1.10) a year ago. The sequential decline in net income was primarily driven by higher losses incurred ($37 million vs. $18 million) and lower net premiums earned ($243 million vs. $246 million), partially offset by lower operating expenses ($49 million vs. $59 million) and higher net investment income ($71 million vs. $69 million). The loss ratio increased to 15% from 7% in Q4 2025, reflecting a net reserve release of $39 million compared to $60 million in the prior quarter. The expense ratio improved to 20% from 24%, driven by lower incentive-based compensation. New insurance written was $13 billion, down 11% sequentially but up 30% year-over-year, with 96% monthly premium policies and 77% purchase originations. Primary insurance in-force was $272 billion, up 2% year-over-year. Persistency remained elevated at 80%. Net investment income rose to $71 million, benefiting from higher interest rates and average invested assets. The company's PMIERs sufficiency stood at 162%, or $1.9 billion above requirements. Management highlighted a strong start to 2026, with a focus on expense and risk management. The Board declared a 14% increase in the quarterly dividend to $0.24 per share, payable June 18, 2026. During the quarter, Enact repurchased 2.3 million shares for $93 million, and as of April 30, 2026, $438 million remained under the $500 million buyback authorization. S&P upgraded the financial strength rating outlook for EMICO, EHI, and Enact Re to positive.