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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.

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1.b. Last Insights on ACT

Enact Holdings, Inc. has been driven by several positive factors. The company recently announced a 14% increase to its quarterly dividend, providing a higher return to shareholders. Additionally, Enact initiated a new $350 million share repurchase program, which will reduce the number of outstanding shares and increase earnings per share. The company's strong profitability, disciplined capital use, and resilient credit performance in a tough mortgage market have been highlighted as key strengths. Recent upgrades and index inclusion have also supported Enact's strategic positioning and growing market recognition.

1.c. Company Highlights

2. Enact's Strong Q3 2025 Earnings: A Reflection of Prudent Management

Enact's third-quarter 2025 earnings call revealed a robust financial performance, with an adjusted operating income of $166 million, translating to $1.12 per diluted share, in line with analyst estimates. The adjusted return on equity stood at 13%, highlighting the company's efficient use of shareholder capital. Insurance in-force rose 2% year-over-year to $272 billion, driven by robust new insurance written of over $14 billion. The company's operating expenses were $53 million, with an expense ratio of 22%, and a forecasted 2025 expenses, excluding reorganization costs, of approximately $219 million.

Publication Date: Nov -10

📋 Highlights
  • Adjusted Operating Income & ROE:: $166 million ($1.12/diluted share) and 13% adjusted return on equity, reflecting strong profitability.
  • Insurance Growth Metrics:: 2% YoY increase in insurance in-force to $272 billion and $14 billion in new insurance written, driving portfolio expansion.
  • Capital Return Update:: 2025 capital returns raised to $500 million (from $400 million) and a $435 million revolving credit facility secured, enhancing financial flexibility.
  • Credit Strength & Efficiency:: 15% loss ratio, $45 million reserve release, and 22% expense ratio ($53 million operating expenses), highlighting robust risk management and cost control.

Capital Return and Credit Performance

The company updated its 2025 capital return expectation to approximately $500 million, up from $400 million, driven by favorable business performance and the current level of mortgage originations. Enact returned $136 million to shareholders through share repurchases and dividends. Credit performance remains strong, with a loss ratio of 15% and a reserve release of $45 million. The PMIERs sufficiency ratio was 162%, and the risk-weighted average FICO score of the portfolio was 746, indicating a high-quality mortgage insurance portfolio.

Valuation and Outlook

With a Price-to-Book Ratio of 1.06, the stock appears to be reasonably valued. The company's Return on Equity (ROE) of 13.29% is a positive indicator of its profitability. Analysts estimate next year's revenue growth at 2.8%. Enact's continued investment in technology, such as its Rate360 engine and machine learning, is expected to drive efficiency and improve its competitive position. The upgrade in ratings by Moody's and A.M. Best is a testament to the company's strong credit performance and prudent risk management.

Operational Highlights and Future Prospects

Enact's focus on expense management has resulted in a reduction of expenses by $25 million since its IPO in 2021, despite inflationary pressures. The company's investments in AI are aimed at making smarter and more granular decisions, which should drive long-term profitability. With a Dividend Yield of 2.14%, the stock offers an attractive income stream to investors. Overall, Enact's strong Q3 2025 earnings and positive outlook suggest that the company is well-positioned for continued success.

3. NewsRoom

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Aduro Clean Technologies Collaborates with ECOCE to Advance Recycling of Flexible Plastic Packaging in Mexico

Dec -03

Source: globenewswire.com

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First Look: Versace deal, crypto slump, WBD bids and Airbus woes

Dec -02

Source: gurufocus.com

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Market Today: Crypto Rout, Omnicom Cuts, Nvidia--Synopsys Deal

Dec -01

Source: gurufocus.com

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NU E Power Corp. Announces Leadership Transition, Board Changes and Closing of the Acquisition of 500 MW of Power Assets from ACT Mid Market Ltd. Surpasses 1 GW Milestone with Global Hybrid Portfolio

Nov -25

Source: newsfilecorp.com

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Aduro Clean Technologies berichtet über erfolgreiches Pilotprojekt zum Steamcracking von aus Kunststoff gewonnenem Hydrochemolytic™-Öl

Nov -21

Source: globenewswire.com

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Aduro Clean Technologies annonce le succès du vapocraquage à l’échelle pilote d’une huile Hydrochemolytic™ issue de déchets plastiques

Nov -21

Source: globenewswire.com

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ONE BIG BEAUTIFUL BILL ACT POISED TO DRIVE MIDDLE MARKET GROWTH: 89% OF COMPANIES EXPECT SIGNIFICANT LONG-TERM BUSINESS IMPACT

Nov -20

Source: prnewswire.com

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Aduro Clean Technologies Reports Successful Pilot-Scale Steam-Cracking of Plastic-Derived Hydrochemolytic™ Oil

Nov -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: 7.2/10

Value: 7.0

Growth: 4.6

Quality: 8.8

Yield: 7.0

Momentum: 6.0

Volatility: 10.0

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Fidelity National Financial

A-Score: 7.1/10

Value: 7.5

Growth: 6.2

Quality: 7.0

Yield: 8.0

Momentum: 5.0

Volatility: 8.7

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MGIC

A-Score: 6.7/10

Value: 6.0

Growth: 6.6

Quality: 8.4

Yield: 4.0

Momentum: 6.0

Volatility: 9.3

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Assurant

A-Score: 6.6/10

Value: 6.2

Growth: 6.4

Quality: 6.8

Yield: 4.0

Momentum: 7.5

Volatility: 8.3

1-Year Total Return ->

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Radian Group

A-Score: 6.1/10

Value: 6.7

Growth: 2.9

Quality: 6.8

Yield: 6.0

Momentum: 5.5

Volatility: 9.0

1-Year Total Return ->

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NMI Holdings

A-Score: 6.0/10

Value: 6.8

Growth: 7.7

Quality: 9.1

Yield: 0.0

Momentum: 3.5

Volatility: 9.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

37.99$

Current Price

37.99$

Potential

-0.00%

Expected Cash-Flows