GET DAILY SIGNALSEnact Holdings (ACT) Posts Steady Q3 Earnings as Loss Ratio Rises
Key Takeaways
- Enact Holdings reported third quarter 2026 net income of $158.9 million, with diluted earnings per share (EPS) of $1.15, down from $1.25 in the prior quarter.
- Adjusted diluted EPS came in at $1.19, roughly in line with analyst consensus of $1.20 per share.
- Total revenue of $312.9 million fell short of consensus estimates of about $317.9 million, a miss of roughly 1.6%, and was roughly flat year over year.
- The loss ratio climbed to 20%, up from 14% in the second quarter of 2026, driven by higher seasonal delinquencies.
- Primary insurance in force (IIF) held steady at $275 billion, while new insurance written (NIW) declined 7% sequentially to $14 billion.
- The board declared a quarterly dividend of $0.24 per share, and the company reported a strong capital cushion under its mortgage-insurer requirements.
Why These Results Matter for Housing and Mortgage Markets
Enact Holdings (ACT) operates as a leading U.S. private mortgage insurance provider through its subsidiary Enact Mortgage Insurance Corporation, assisting borrowers who put down less than 20% on a home. For investors, its quarterly updates offer a clear window into the U.S. housing and mortgage credit environment. The firm has shown consistent profitability and returns capital through buybacks and a growing dividend, so execution and credit quality remain important areas to track. These third quarter figures came against a backdrop of elevated mortgage rates and slower refinance activity, which tends to limit new business while supporting the existing book of policies. The combination of a higher loss ratio and softer premium trends made this report a useful check on earnings momentum.
Breaking Down the Reported Numbers
Enact Holdings (ACT) posted total revenue of $312.9 million for the third quarter of 2026, essentially flat compared with $311.5 million a year earlier and below the consensus estimate of approximately $317.9 million. Net premiums earned eased to $242.3 million from $244.7 million in both comparison periods, reflecting higher ceded premiums from quota share reinsurance. Net investment income increased to $74.4 million from $68.6 million a year ago, aided by higher portfolio yields.
Net income reached $158.9 million, or $1.15 per diluted share, down from $174.8 million, or $1.25 per share, in the prior quarter but up from $163.5 million, or $1.10 per share, in the year-ago period. Adjusted operating income, a non-GAAP measure that excludes investment gains and losses and certain non-operating items, totaled $164.2 million, with adjusted diluted EPS of $1.19, essentially matching the consensus of $1.20.
The loss ratio moved up to 20% from 14% sequentially and 15% a year ago, reflecting seasonal new delinquencies and normal loss development on newer books. The company recorded a $37 million reserve release. The expense ratio remained at 21%. Primary insurance in force stood at $275 billion, while new insurance written fell 7% sequentially to $14 billion on lower refinance activity. The company declared a $0.24 per share quarterly dividend. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Market Reaction and Investor Sentiment
Enact shares were largely unchanged in the immediate aftermath of the release, holding near their 52-week high of roughly $49, reflecting a muted response to a quarter that matched on adjusted EPS but missed on revenue. Investors appeared to weigh the solid profitability and strong capital position against the rise in the loss ratio and a sequential decline in new insurance written. Sentiment heading into the report had been constructive, supported by aggressive buybacks, a growing dividend, and a recent ratings upgrade of the company's insurance subsidiaries by AM Best. The softer credit metrics, however, introduced a note of caution around earnings normalization.
Forward Outlook and Key Factors to Monitor
Looking ahead, investors should focus on how the loss ratio evolves in the coming quarters. Management has pointed to a seasonal uptick in delinquencies in the second half of 2026, so whether credit costs stabilize near current levels or continue to climb will be a central question for the earnings trajectory.
New business volume is another area to watch. With refinance activity cooling and persistency still elevated at 81%, new insurance written could remain subdued, keeping net premiums earned under modest pressure. A large share of the portfolio carries mortgage rates below 7%, which supports persistency but also slows portfolio turnover.
Capital remains a bright spot. The company's PMIERs sufficiency stood at 158%, or about $1.8 billion above requirements, providing flexibility for continued dividends and share repurchases. Enact has already signaled a meaningful capital return program for 2026.
Finally, broader housing-market dynamics, including mortgage rates, affordability, and home-price trends, will shape both demand for mortgage insurance and future credit performance. Investors should monitor these factors alongside management's guidance on operating expenses and capital deployment. From what I see, this is important because the capital cushion gives the company room to navigate any normalization in credit metrics.
Using AI Tools in My Research Process
I often turn to Tickeron’s AI Screener when comparing mortgage insurers like Enact Holdings to peers. The tool lets me quickly filter by industry, technical patterns, and fundamentals to spot relative strength or emerging signals across the sector. It has become a regular part of how I review quarterly results and sector positioning without spending hours on manual screens.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
ACT in upward trend: 10-day moving average crossed above 50-day moving average on November 03, 2026
The 10-day moving average for ACT crossed bullishly above the 50-day moving average on November 03, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 12 of 17 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 71%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where ACT's RSI Oscillator exited the oversold zone, 13 of 22 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 59%.
The Momentum Indicator moved above the 0 level on October 22, 2026. You may want to consider a long position or call options on ACT as a result. In 56 of 89 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 63%.
The Moving Average Convergence Divergence (MACD) for ACT just turned positive on October 15, 2026. Looking at past instances where ACT's MACD turned positive, the stock continued to rise in 28 of 45 cases over the following month. The odds of a continued upward trend are 62%.
ACT moved above its 50-day moving average on November 02, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a +2.92% 3-day Advance, the price is estimated to grow further. Considering data from situations where ACT advanced for three days, in 215 of 353 cases, the price rose further within the following month. The odds of a continued upward trend are 61%.
The Aroon Indicator entered an Uptrend today. In 119 of 237 cases where ACT Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 50%.
Bearish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 11 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where ACT declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 52%.
ACT broke above its upper Bollinger Band on October 23, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is 3 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 56, placing this stock better than average.
The Tickeron PE Growth Rating for this company is 21 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Seasonality Score of 30 (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is 42 (best 1 - 100 worst), indicating steady price growth. ACT’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 80 (best 1 - 100 worst), indicating slightly better than average sales and a considerably profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of 87 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.210) is normal, around the industry mean (1.006). P/E Ratio (9.958) is within average values for comparable stocks, (11.383). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (0.944). Dividend Yield (0.020) settles around the average of (0.490) among similar stocks. ACT's P/S Ratio (5.627) is slightly higher than the industry average of (2.529).
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Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
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Industry SpecialtyInsurance
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