Core Insights - Enact Holdings, Inc. is experiencing solid improvement in earnings estimates, which may lead to continued short-term price momentum for the stock [1][10] - The rising trend in estimate revisions reflects growing analyst optimism regarding the company's earnings prospects, which is expected to positively impact its stock price [2][9] Current-Quarter Estimate Revisions - For the current quarter, Enact Holdings is expected to earn $1.20 per share, marking a +9.1% change from the previous year's reported number [6] - Over the last 30 days, one estimate has increased while there have been no negative revisions, resulting in a 6.19% increase in the Zacks Consensus Estimate [6] Current-Year Estimate Revisions - For the full year, the expected earnings per share for Enact Holdings is $4.83, reflecting a year-over-year change of +4.8% [7] - In the past month, two estimates have been revised upward with no negative revisions, contributing to a 5.01% increase in the consensus estimate [8] Favorable Zacks Rank - Enact Holdings currently holds a Zacks Rank 1 (Strong Buy) due to positive estimate revisions, indicating strong potential for stock performance [9] - Research indicates that stocks with Zacks Rank 1 and 2 significantly outperform the S&P 500 [9] Bottom Line - Strong estimate revisions have led to a 6.5% increase in Enact Holdings' stock over the past four weeks, suggesting further upside potential [10]

Core Viewpoint - Enact Holdings, Inc. (ACT) is identified as a strong momentum stock with a Momentum Style Score of B and a Zacks Rank of 1 (Strong Buy), indicating potential for near-term price appreciation [3][4][12]. Company Performance - ACT shares have increased by 8.55% over the past week, outperforming the Zacks Insurance - Multi line industry, which rose by 2.59% during the same period [6]. - Over the last quarter, ACT's shares have risen by 14.51%, and over the past year, they have gained 27.31%, significantly outperforming the S&P 500, which increased by 3.37% and 15.17% respectively [7]. Trading Volume - The average 20-day trading volume for ACT is 334,760 shares, which serves as a bullish indicator when combined with rising stock prices [8]. Earnings Outlook - In the last two months, two earnings estimates for ACT have been revised upwards, while none have been revised downwards, leading to an increase in the consensus estimate from $4.60 to $4.83 [10]. - For the next fiscal year, one estimate has moved upwards with no downward revisions, indicating positive sentiment regarding future earnings [10].

Financial Data and Key Metrics Changes - For the full year 2025, the company reported adjusted operating income of $688 million or $4.61 per diluted share, with a year-end adjusted book value per share increasing by 11% to $37.87 [4][12] - In Q4 2025, adjusted operating income was $179 million or $1.23 per diluted share, compared to $1.09 per diluted share in the same period last year [12][14] - Adjusted return on equity for Q4 was 13.5% [7][12] Business Line Data and Key Metrics Changes - New insurance written in Q4 was $14 billion, up 2% sequentially and 8% year-over-year [13] - The primary insurance in force reached $273 billion in Q4, up $1 billion from Q3 2025 and $4 billion year-over-year [14] - Operating expenses for Q4 were $59 million, with an expense ratio of 24%, compared to $53 million and 22% in Q3 2025 [18] Market Data and Key Metrics Changes - Persistency was 80% in Q4, down 3 points sequentially and 2 points year-over-year [13] - The risk-weighted average FICO score of the insurance in-force portfolio was 746, with a risk-weighted average loan-to-value ratio of 93% [8] Company Strategy and Development Direction - The company is focused on disciplined capital allocation, supporting existing policyholders, and investing in business growth while returning excess capital to shareholders [9][10] - The company plans to return approximately $500 million to shareholders in 2026, supported by a strong capital position and effective risk management [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the uncertain macro environment and highlighted strong long-term housing demand driven by demographic trends [23] - The company remains engaged with policymakers regarding housing affordability and supply constraints, indicating a proactive approach to evolving regulatory environments [31][32] Other Important Information - The company received multiple credit ratings upgrades and industry awards, reflecting its commitment to excellence and employee experience [6][7] - The PMIER sufficiency ratio was 162%, providing significant financial flexibility [19] Q&A Session Summary Question: Capital return guidance for 2026 - Management is confident in delivering $500 million back to shareholders but will evaluate market dynamics and business performance throughout the year [25][26] Question: Regulatory environment concerns - Management is actively engaged with policymakers on various topics, including affordability and inventory challenges, and is monitoring potential regulatory changes [30][32] Question: Mortgage market expectations for 2026 - The company anticipates a 10%-15% increase in mortgage insurance market size based on external forecasts, with a focus on purchase originations [33][34] Question: Default rates and delinquency trends - Management expects new delinquencies to moderate, with current levels in line with expectations and historical patterns [36][38] Question: Performance of new book years - Recent book years are performing in line with pricing expectations, with no significant negative variations noted [42][44] Question: Areas of heightened risk - Management is monitoring housing markets with increased supply and declining prices, particularly in certain states, to manage risk effectively [46][47]

Financial Data and Key Metrics Changes - For the full year 2025, the company reported adjusted operating income of $688 million or $4.61 per diluted share, with a year-end adjusted book value per share increasing by 11% to $37.87 [4][12] - In Q4 2025, adjusted operating income was $179 million or $1.23 per diluted share, compared to $1.09 per diluted share in the same period last year [12][14] - Adjusted return on equity for Q4 was 13.5% [7][12] Business Line Data and Key Metrics Changes - New insurance written in Q4 was $14 billion, up 2% sequentially and 8% year-over-year [13] - The primary insurance in force reached $273 billion in Q4, up $1 billion from Q3 2025 and $4 billion year-over-year [14] - Operating expenses for Q4 were $59 million, with an expense ratio of 24%, compared to $53 million and 22% in Q3 2025 [18] Market Data and Key Metrics Changes - Persistency was 80% in Q4, down 3 points sequentially and 2 points year-over-year [13] - The risk-weighted average FICO score of the insurance in-force portfolio was 746, with a risk-weighted average loan-to-value ratio of 93% [8] Company Strategy and Development Direction - The company is focused on disciplined capital allocation, supporting existing policyholders, and investing in business growth while returning excess capital to shareholders [9][10] - The company plans to return approximately $500 million to shareholders in 2026, supported by a strong capital position and effective risk management [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the uncertain macro environment and highlighted strong long-term housing demand driven by demographic tailwinds [23] - The company remains engaged with policymakers regarding housing affordability and supply constraints, indicating a proactive approach to evolving regulatory environments [31][32] Other Important Information - The company received multiple credit ratings upgrades and industry awards, reflecting its commitment to excellence and employee experience [6][7] - The PMIER sufficiency ratio was 162%, providing significant financial flexibility [19] Q&A Session Summary Question: Capital return guidance for 2026 - Management is confident in delivering $500 million back to shareholders but will evaluate market dynamics and business performance throughout the year [25][26] Question: Regulatory environment and potential FHA re-rate cut - Management is actively engaged with the administration on various regulatory topics, including affordability challenges and credit score discussions [30][32] Question: Mortgage market expectations for 2026 - The company anticipates a 10%-15% increase in the mortgage insurance market from 2025 to 2026, based on external forecasts [34] Question: Default rates and delinquency trends - Management expects new delinquencies to moderate, with a focus on the aging of book years contributing to delinquency patterns [38] Question: Performance of new book years - Recent book years are performing in line with pricing expectations, with no significant negative variations observed [44]

Financial Data and Key Metrics Changes - For the full year 2025, the company reported adjusted operating income of $688 million or $4.61 per diluted share, with a year-end adjusted book value per share increasing by 11% to $37.87 [4][11] - In the fourth quarter, adjusted operating income was $179 million or $1.23 per diluted share, compared to $1.09 per diluted share in the same period last year [11][12] - Adjusted return on equity for the fourth quarter was 13.5% [6][11] Business Line Data and Key Metrics Changes - New insurance written for the fourth quarter was $14 billion, up 2% sequentially and 8% year-over-year [12] - The primary insurance in force reached $273 billion in the fourth quarter, up $1 billion from the third quarter and $4 billion year-over-year [13] - Total net premiums earned were $246 million, flat year-over-year [13][14] Market Data and Key Metrics Changes - Persistency was 80% in the fourth quarter, down 3 points sequentially and 2 points year-over-year [12] - The risk-weighted average FICO score in the insurance in-force portfolio was 746, with a risk-weighted average loan-to-value ratio of 93% [7] Company Strategy and Development Direction - The company is focused on disciplined capital allocation, supporting existing policyholders, and investing in business growth while returning excess capital to shareholders [8][9] - The company plans to return approximately $500 million to shareholders in 2026, supported by a strong capital position and effective risk management [9][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the uncertain macro environment and highlighted strong long-term housing demand driven by demographic tailwinds [22] - The company remains engaged with policymakers regarding housing affordability and supply constraints, indicating a proactive approach to evolving regulatory environments [31][32] Other Important Information - The company maintained operating expenses at $217 million for the full year, with an expense ratio of 24% in the fourth quarter [18] - The PMIER sufficiency ratio was 162%, providing significant financial flexibility [19] Q&A Session Summary Question: Sensitivities to capital return goal for 2026 - Management is confident in delivering $500 million back to shareholders but will evaluate market dynamics and business performance throughout the year [25][26] Question: Regulatory environment and potential FHA re-rate cut - Management is actively engaged with policymakers and is monitoring discussions around affordability and inventory challenges [30][31] Question: Mortgage market assumptions for 2026 - The company anticipates a 10%-15% increase in the mortgage insurance market from 2025 to 2026, based on external forecasts [34][35] Question: Trends in default rates - Management expects new delinquencies to moderate, with a focus on the aging of book years contributing to delinquencies [39] Question: Credit performance of new book years - Recent book years are performing in line with pricing expectations, with no significant negative variations noted [44][45] Question: Expense management and technology investment - The company has kept expenses flat and continues to invest in technology to drive efficiencies [53][54] Question: Reinsurance transactions and pricing trends - The company has secured favorable terms in recent reinsurance transactions, with attachment points generally around 3% and detachment points around 7% [56][57]

Enact Holdings, Inc. Financial Supplement Fourth Quarter 2025 GAAP/Non-GAAP Disclosure Discussion This document includes the non-GAAP financial measures entitled "adjusted operating income (loss)," "adjusted operating income (loss) per share," and "adjusted operating return on equity." Adjusted operating income (loss) per share is derived from adjusted operating income (loss). Enact Holdings, Inc. (the "Company") defines adjusted operating income (loss) as net income (loss) excluding the after-tax effects o ...

分组1 - Enact Holdings, Inc. reported quarterly earnings of $1.23 per share, exceeding the Zacks Consensus Estimate of $1.09 per share, and showing an increase from $1.09 per share a year ago, resulting in an earnings surprise of +13.36% [1] - The company posted revenues of $315.56 million for the quarter ended December 2025, slightly missing the Zacks Consensus Estimate by 0.2%, but showing an increase from $308.94 million year-over-year [2] - Enact Holdings has surpassed consensus EPS estimates two times over the last four quarters and has topped consensus revenue estimates twice as well [2] 分组2 - The current consensus EPS estimate for the upcoming quarter is $1.14 on revenues of $313.96 million, while for the current fiscal year, the estimate is $4.60 on revenues of $1.26 billion [7] - The Zacks Industry Rank indicates that the Insurance - Multi line sector is currently in the bottom 39% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - Enact Holdings shares have increased about 2% since the beginning of the year, outperforming the S&P 500's gain of 1.9% [3]

Share Ownership and Repurchase Program - Genworth owns 114,588,830 shares of Enact Holdings, representing approximately 81% of the outstanding shares[4] - Enact Holdings has authorized a share repurchase program with a total purchase price of up to $500 million[4] - The repurchase of shares from Genworth will occur in proportion to market repurchases made by Enact Holdings[4] - The repurchase shares will be calculated based on a multiplier of 4.3 relative to shares owned by other stockholders[11] - Enact Holdings will notify Genworth of any market repurchases within one business day, including the number of shares purchased and the total purchase price[8] - The repurchase price per share will be based on the weighted average price paid during the settlement period, excluding broker fees[12] - The agreement will automatically terminate upon the completion of the $500 million repurchase program or by mutual consent[27] - No market repurchases will occur during the last two business days of any quarter[9] - The settlement of repurchased shares will take place electronically on the settlement date[16] - The agreement is governed by the laws of the State of Delaware[36]

Core Insights - Enact Holdings, Inc. reported strong financial results for Q4 2025, with a net income of $177 million, or $1.22 per diluted share, marking an increase from $163 million in Q3 2025 and Q4 2024 [1][4] - The company emphasized its disciplined execution and resilient credit performance, despite ongoing affordability pressures and interest rate volatility in the housing market [2] Financial Performance - Q4 2025 net income was $177 million, up from $163 million in Q3 2025 and Q4 2024, with diluted earnings per share increasing to $1.22 from $1.10 and $1.05 respectively [3][4] - Adjusted operating income for Q4 2025 was $179 million, or $1.23 per diluted share, compared to $166 million and $1.12 in Q3 2025, and $169 million and $1.09 in Q4 2024 [3][4] - New insurance written (NIW) was $14 billion, a 2% increase from Q3 2025 and an 8% increase from Q4 2024 [4][7] Operational Metrics - The primary insurance in-force (IIF) reached $273 billion, a 2% increase year-over-year [1][7] - The primary persistency rate was 80%, down from 83% in Q3 2025 and 82% in Q4 2024 [4][7] - Losses incurred in Q4 2025 were $18 million, with a loss ratio of 7%, significantly lower than $36 million and 15% in Q3 2025, and $24 million and 10% in Q4 2024 [3][7] Capital Management - The company returned over $500 million to shareholders in 2025, including $121 million in dividends and $382 million in share repurchases [1][4] - As of December 31, 2025, Enact held $257 million in cash and cash equivalents and $370 million in invested assets [7] - PMIERs sufficiency was reported at 162%, approximately $1.9 billion above requirements, consistent with Q3 2025 [7] Future Outlook - The company announced a new share repurchase program with authorization to buy up to $500 million of common stock, alongside a quarterly dividend of $0.21 per share [7]

Core Viewpoint - Enact Holdings, Inc. has announced a new share repurchase program authorizing the purchase of up to $500 million of its common stock, reflecting confidence in its long-term performance and commitment to returning capital to shareholders [1][3]. Share Repurchase Program - The new share repurchase program is in addition to the existing $350 million program, with $30 million remaining as of January 30, 2026 [1]. - The program allows for various methods of repurchase, including open market purchases and privately negotiated transactions, and may utilize Rule 10b5-1 and Rule 10b-18 trading plans [3]. - The timing and amount of repurchases will be opportunistic, influenced by factors such as share price, capital availability, and market conditions [4]. Dividend Declaration - The Board of Directors declared a quarterly dividend of $0.21 per common share, payable on March 19, 2026, to shareholders of record on February 26, 2026 [2]. Company Overview - Enact Holdings, Inc. is a leading provider of private mortgage insurance in the U.S., operating through its subsidiary Enact Mortgage Insurance Corporation since 1981 [5]. - The company focuses on helping individuals achieve homeownership by partnering with lenders to provide service, underwriting expertise, and risk management [5].