Download PDF

1. Company Snapshot

1.a. Company Description

Enact Holdings, Inc.operates as a private mortgage insurance company in the United States.The company is involved in writing and assuming residential mortgage guaranty insurance.


It offers private mortgage insurance products primarily insuring prime-based, individually underwritten residential mortgage loans; and contract underwriting services for mortgage lenders.The company was formerly known as Genworth Mortgage Holdings, Inc.and changed its name to Enact Holdings, Inc.


in May 2021.Enact Holdings, Inc.was founded in 1981 and is headquartered in Raleigh, North Carolina.


Enact Holdings, Inc.is a subsidiary of Genworth Holdings, Inc.

Show Full description

1.b. Last Insights on ACT

Enact Holdings, Inc.'s recent performance was driven by strong Q4 2025 earnings, beating estimates with $1.23 per share, compared to $1.09 per share a year ago. A new $500 million share repurchase program and a $0.21 per share quarterly dividend were announced, demonstrating the company's commitment to returning capital to shareholders. Additionally, the company's upgraded rating to a Zacks Rank #2 (Buy) reflects growing optimism about its earnings prospects. Its Q4 2025 earnings call transcript and results showed a Return on Equity of 13.3% and Adjusted Operating Return on Equity of 13.5%.

1.c. Company Highlights

2. Enact's Q4 2025 Earnings: A Strong Finish to a Robust Year

Enact reported adjusted operating income of $179 million or $1.23 per diluted share for the fourth quarter of 2025, beating analyst estimates of $1.09 per share. The company's adjusted return on equity was 13.5%. New insurance written was $14 billion, up 2% sequentially and 8% year-over-year. Total net premiums earned were $246 million, flat year-over-year. The base premium rate was 39.6 basis points, down 0.1 basis point sequentially. Investment income was $69 million, up 10% year-over-year, driven by a new money investment yield of approximately 5%.

Publication Date: Feb -06

📋 Highlights
  • Annual Adjusted Operating Income: reached $688 million ($4.61 per diluted share), with $500 million returned to shareholders in 2025.
  • Q4 New Insurance Written: totaled $14 billion, an 8% year-over-year increase and 2% sequential growth.
  • Investment Income: rose 10% to $69 million in Q4, with a weighted average portfolio book yield of 4.4%.
  • Adjusted Book Value Per Share: increased by 11% to $37.87 in 2025, reflecting disciplined capital management and credit performance.
  • 2026 Capital Return Guidance: targets $500 million to shareholders, supported by a stable default rate and embedded equity in the portfolio.

Business Performance

Enact generated $52 billion of new insurance written in 2025, with record insurance in-force of $273 billion. The company's execution was recognized by the market, with multiple credit ratings upgrades. Enact received multiple industry and local awards, testament to its commitment to excellence and providing an exceptional employee experience. Rohit Gupta mentioned that demographic tailwinds, particularly among first-time homebuyers, support long-term demand for housing and private mortgage insurance.

Outlook and Guidance

Looking ahead to 2026, Enact expects to effectively navigate uncertainty and capitalize on long-term opportunities. The company has set a capital return guidance of $500 million to shareholders. Dean Mitchell stated that they will continue to evaluate dynamics in the marketplace, including business performance, growth, and loss performance during 2026. Mortgage insurance market forecasts predict a 10% to 15% increase in 2026 compared to 2025, based on external forecasts.

Valuation

Enact's Price-to-Book Ratio is 1.19, indicating that the stock is trading slightly above its book value. The Dividend Yield is 1.84%, which is a relatively attractive yield for income investors. With analysts estimating revenue growth at 2.1% next year, the current valuation multiples appear reasonable. The ROE of 12.83% suggests that Enact is generating strong returns on its equity.

Risk Factors

Enact's credit performance has been robust, with recent book years performing in line with or better than pricing expectations. However, certain cohorts, such as those with higher debt-to-income ratios or loan-to-value ratios, are being closely monitored for potential elevated risks. Default rates are expected to trend towards stability and seasonality, with vintage contribution to delinquencies following a normal loss development pattern.

3. NewsRoom

Card image cap

What Makes Enact Holdings, Inc. (ACT) a Strong Momentum Stock: Buy Now?

Feb -09

Source: zacks.com

Card image cap

Enact Holdings, Inc. (ACT) Q4 2025 Earnings Call Transcript

Feb -04

Source: seekingalpha.com

Card image cap

Enact Holdings, Inc. (ACT) Q4 Earnings Beat Estimates

Feb -03

Source: zacks.com

Card image cap

Enact Reports Fourth Quarter and Full Year 2025 Results

Feb -03

Source: globenewswire.com

Card image cap

Enact Announces New $500 Million Share Repurchase Program and $0.21 Per Share Quarterly Dividend

Feb -03

Source: globenewswire.com

Card image cap

Market Today: Palantir beats, Disney warns; oil slides

Feb -02

Source: gurufocus.com

Card image cap

NUVISTA AND OVINTIV ANNOUNCE RECEIPT OF INVESTMENT CANADA ACT APPROVAL

Jan -28

Source: prnewswire.com

Card image cap

PlusAI Joins Daimler Truck North America and Penske Transportation Solutions as Presenting Sponsor for ACT Expo 2026

Jan -20

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.00%)

6. Segments

Private Mortgage Insurance

Expected Growth: 5.0%

Enact Holdings, Inc.'s Private Mortgage Insurance growth of 5.0% is driven by increasing demand for mortgage insurance, expansion into new markets, and strategic partnerships. Additionally, the company's focus on digital transformation, improved underwriting capabilities, and competitive pricing also contribute to its growth.

7. Detailed Products

Title Insurance

Enact Holdings, Inc. provides title insurance policies that protect homeowners and lenders from title defects and other issues that may arise during the homebuying process.

Settlement Services

Enact Holdings, Inc. offers settlement services that facilitate the homebuying process, including closing and escrow services, document preparation, and notary services.

Appraisal and Valuation Services

Enact Holdings, Inc. provides appraisal and valuation services that help lenders and investors determine the value of properties.

Default Services

Enact Holdings, Inc. offers default services that help lenders and servicers manage delinquent loans, including foreclosure, bankruptcy, and REO services.

Data and Analytics

Enact Holdings, Inc. provides data and analytics services that help lenders and investors make informed decisions, including property data, valuation models, and risk analytics.

8. Enact Holdings, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Enact Holdings, Inc. operates in a highly competitive industry, but the threat of substitutes is mitigated by the company's strong brand recognition and customer loyalty.

Bargaining Power Of Customers

Enact Holdings, Inc. has a large customer base, but the bargaining power of customers is high due to the availability of alternative products and services.

Bargaining Power Of Suppliers

Enact Holdings, Inc. has a diversified supplier base, which reduces the bargaining power of suppliers.

Threat Of New Entrants

The threat of new entrants is moderate due to the high barriers to entry in the industry, but Enact Holdings, Inc. must continue to innovate to stay ahead of potential competitors.

Intensity Of Rivalry

The intensity of rivalry in the industry is high due to the presence of several established players, and Enact Holdings, Inc. must focus on differentiating itself to maintain its market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 13.92%
Debt Cost 6.74%
Equity Weight 86.08%
Equity Cost 6.74%
WACC 6.74%
Leverage 16.17%

11. Quality Control: Enact Holdings, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Enact Holdings

A-Score: 7.5/10

Value: 7.1

Growth: 4.6

Quality: 8.8

Yield: 7.0

Momentum: 7.5

Volatility: 10.0

1-Year Total Return ->

View Full Report
Stock-Card
Fidelity National Financial

A-Score: 7.0/10

Value: 7.9

Growth: 6.2

Quality: 6.3

Yield: 8.0

Momentum: 5.0

Volatility: 8.7

1-Year Total Return ->

View Full Report
Stock-Card
MGIC

A-Score: 6.9/10

Value: 6.7

Growth: 6.4

Quality: 8.2

Yield: 4.0

Momentum: 7.0

Volatility: 9.3

1-Year Total Return ->

View Full Report
Stock-Card
Radian Group

A-Score: 6.3/10

Value: 6.0

Growth: 2.9

Quality: 8.1

Yield: 6.0

Momentum: 5.5

Volatility: 9.0

1-Year Total Return ->

View Full Report
Stock-Card
NMI Holdings

A-Score: 6.2/10

Value: 6.9

Growth: 7.6

Quality: 9.0

Yield: 0.0

Momentum: 4.5

Volatility: 9.0

1-Year Total Return ->

View Full Report
Stock-Card
Assurant

A-Score: 6.1/10

Value: 6.1

Growth: 6.1

Quality: 6.3

Yield: 4.0

Momentum: 6.0

Volatility: 8.3

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

42.52$

Current Price

42.52$

Potential

-0.00%

Expected Cash-Flows