Enact Holdings Inc.

Enact reported adjusted operating income of $177 million, or $1.26 per diluted share, versus $1.15 per diluted share in the same quarter last year and $1.21 in Q1 2026. Adjusted operating return on equity was 13% to 13.2%. New insurance written was $15 billion, up 19% sequentially and 15% year over year; primary insurance in force was $274 billion, up $1 billion sequentially and $4 billion year over year. Total net premiums earned were $245 million, flat year over year, and investment income was $73 million, up 11% year over year. Losses were $33 million, the loss ratio was 14% versus 15% in Q1 2026 and 10% in Q2 2025, and the quarter included a $37 million reserve release. Operating expenses were $52 million, with an expense ratio of 21% versus 20% in Q1 2026 and 22% in Q2 2025. For full year 2026, expenses excluding reorganization costs are now expected to be $205 million-$210 million, and total capital return guidance was raised to $550 million-$600 million from $500 million.

Rohit Gupta characterized the quarter as another strong period of disciplined execution, resilient credit, and long-term value creation. He emphasized that the housing market remains challenged by rates and policy uncertainty, but underlying demand is intact and private mortgage insurance still has a critical role in expanding homeownership. He also highlighted technology investments, including the new ELLA underwriting tool using generative AI, and said adoption is growing quickly.

Dean Mitchell focused on the quarter’s financial details and reiterated the company’s conservative but constructive outlook. He cited $177 million of adjusted operating income, $73 million of investment income, $245 million of net premiums earned, and the $37 million reserve release that helped drive a 14% loss ratio. He also noted PMIERs sufficiency of 161%, or $1.9 billion above requirements, $1.9 billion of CRT capital credit, quarterly capital returned of $127 million through buybacks and dividends, and the new full-year expense outlook of $205 million-$210 million excluding reorganization costs.

Analysts pressed management on base premium rate trends, competitive intensity, and whether ROE on new business can be quantified; management said base premium rate guidance remains roughly flat versus 2025 and declined to give numeric ROE guidance, saying returns are accretive but too granular and market-dependent to quantify. Questions on credit centered on delinquency trends and timing of a potential peak; management said second-half seasonality should pressure delinquency rates modestly, but strong home price appreciation and 88% of delinquencies having at least 10% mark-to-market equity support cures. On VantageScore, management said the rollout is still limited, most current loans appear to come with Vantage only, and Enact is building underwriting and pricing capability to support the transition.