Enact Holdings — Third Quarter 2026 Earnings Summary

Financial Performance:

• GAAP net income was $159 million ($1.15 per diluted share), compared to $175 million ($1.25 per share) in Q2 2026 and $163 million ($1.10 per share) in Q3 2025.
• Adjusted operating income was $164 million ($1.19 per diluted share), compared to $177 million ($1.26 per share) in Q2 2026 and $166 million ($1.12 per share) in Q3 2025.
• Net premiums earned were $242 million, down 1% sequentially and 1% year-over-year, driven by higher ceded premiums from quota share reinsurance.
• Losses incurred were $47 million with a loss ratio of 20%, compared to $33 million (14% ratio) in Q2 2026 and $36 million (15% ratio) in Q3 2025.
• Operating expenses were $50 million with an expense ratio of 21%, down from $52 million (21% ratio) in Q2 2026 and $53 million (22% ratio) in Q3 2025.
• Net investment income was $74 million, up from $73 million in Q2 2026 and $69 million in Q3 2025.
• Net investment losses were $6 million, compared to $2 million in Q2 2026 and $3 million in Q3 2025.
• Return on equity was 12.0% and adjusted operating return on equity was 12.4%, compared to 13.0% and 13.2% respectively in Q2 2026, and 12.4% and 12.6% in Q3 2025.
• Primary insurance in-force was $275 billion, a 1% increase year-over-year from $272 billion in Q3 2025.
• Book value per share was $38.30, and book value per share excluding AOCI was $40.47.
• PMIERs sufficiency was 158% ($1.8 billion above requirements), down from 161% ($1.9 billion) in Q2 2026 and 162% ($1.9 billion) in Q3 2025.
• Long-term borrowings were $745.6 million as of September 30, 2026.

Guidance and Future Outlook:

• Full-year 2026 capital return guidance was increased to approximately $600 million.
• Operating expense guidance for the full year, excluding reorganization costs, was adjusted to the lower end of the previously provided $205 million to $210 million range.
• Management anticipates the final amount and form of capital returned to shareholders will depend on business performance, market conditions, and regulatory approval.

Business Segments and Product Lines:

• New insurance written (NIW) was $14 billion, down 7% sequentially and flat year-over-year, primarily due to lower refinance activity.
• NIW composition was 95% monthly premium policies and 93% purchase originations.
• Primary persistency rate was 81%, up from 80% in Q2 2026 but down from 83% in Q3 2025.
• Approximately 89% of loans in the portfolio carry mortgage rates below 7%.
• A quota share reinsurance agreement was announced to cede approximately 35% of a portion of expected new insurance written for the 2028 book year.

Market and Competitive Landscape:

• AM Best upgraded the insurance financial strength rating for EMICO and EMIC-NC from A- to A, and the long-term issuer rating for EHI from bbb- to bbb, with a stable outlook.
• The company noted continued use of quota share reinsurance as a driver for changes in premiums, expenses, and losses.

Risks and Challenges:

• Forward-looking statements cite risks including economic downturns or recessions, changes in political, business, regulatory, and economic conditions, and changes to Fannie Mae and Freddie Mac.
• Risks include failure to meet GSE eligibility requirements, competition for customers, lenders seeking alternatives to private mortgage insurance, and an increase in loans insured through federal government programs.

Management Commentary and Tone:

• Rohit Gupta, President and CEO, stated performance reflects business strength, team commitment, and value provided to customers.
• Management highlighted execution against strategic priorities, prudent risk management, and investment for the future to deliver sustainable value.
• The tone emphasized confidence in the business's strong financial position and ability to help people achieve homeownership.

Other Key Points:

• The Board declared a quarterly dividend of $0.24 per common share, payable on December 17, 2026.
• Approximately $33 million ($0.24 per share) was paid in dividends during the third quarter.
• EMICO completed a $200 million dividend to EHI in the third quarter to support capital return and financial flexibility.
• The company repurchased approximately 2.4 million shares at an average price of $48.19 for $118 million in the quarter, and an additional 1.3 million shares at $45.68 for $57 million through November 3, 2026.
• Approximately $200 million remains of the previously announced $500 million share repurchase authorization.
• Cash and cash equivalents plus invested assets totaled $713 million ($286 million cash + $427 million invested assets) as of September 30, 2026, up $52 million from the prior quarter.