Enact (ACT) Q1 2026 earnings summary

Executive summary

• Delivered strong Q1 2026 results with disciplined execution, resilient credit performance, and prudent growth in new insurance written amid mortgage rate volatility and affordability challenges.

• Adjusted operating income was $172 million ($1.21 per diluted share), with adjusted ROE at 12.9%.

• Net income for Q1 2026 was $168 million, up from $166 million year-over-year but down from $177 million sequentially.

• New insurance written (NIW) reached $13 billion, up 30% year-over-year but down 11% sequentially; insurance in force totaled $272 billion.

• Persistency remained elevated at 80%, supported by a high proportion of loans with rates below 6%.

Financial highlights

• Net premiums earned were $243 million, down 1% sequentially and year-over-year due to higher ceded premiums.

• Net investment income rose to $71 million, up 3% sequentially and 12% year-over-year.

• Losses incurred were $37 million (loss ratio 15%), up from $18 million (7%) in Q4 2025.

• Operating expenses were $49 million (expense ratio 20%), down from $53 million (21%) year-over-year and $59 million (24%) sequentially.

• Diluted net income per share was $1.18, down 3% sequentially.

Outlook and guidance

• Full-year 2026 operating expenses expected in the $215–$220 million range, excluding reorganization costs.

• Capital return guidance for 2026 remains at approximately $500 million.

• Persistency expected to remain elevated, supporting insurance in-force despite lower originations.

• Management expects continued resilience and value creation, leveraging a strong balance sheet and innovation to navigate a dynamic market.

• S&P upgraded the financial strength rating outlook for key subsidiaries to positive.