Enact (ACT) Q3 2026: Loss Ratio Jumps as Capital Return Guidance Rises
As seen on the 24/7 Wall St. homepage on November 4, 2026.
Management is answering a credit wobble with cash: full-year capital return guidance now sits at roughly $600 million even as the loss ratio jumped to 20% from 14% last quarter, missing expectations.
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Enact reported adjusted earnings per share of $1.19 for the third quarter of 2026, fractionally missing the $1.195 consensus estimate, while revenue of $312.9 million fell about 1.6% short of expectations. GAAP diluted EPS came in lower at $1.15 after accounting for net investment losses and reorganization costs. The modest top-and-bottom-line miss snapped a streak of beats that stretched back through most of 2025 and into early 2026.
The headline concern for investors is the loss ratio, which jumped to 20% from 14% the prior quarter. Losses incurred rose to $47 million, driven by seasonal new delinquencies climbing to 14,401 and the primary delinquency rate moving up to 2.79% from 2.59% in Q2 2026 and 2.45% a year ago. That deterioration in credit quality is the central question mark heading into the next quarter.
Management's response to the credit pressure has been to lean into capital returns rather than pull back. Full-year 2026 capital return guidance was raised to approximately $600 million. During the quarter alone, Enact repurchased roughly 2.4 million shares at an average price of $48.19, spending about $118 million, and announced a quarterly dividend of $0.24 per share payable December 17 to shareholders of record November 25.
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There were genuine offsets buried in the results. Net investment income rose to $74 million from $69 million a year ago, supported by an average portfolio book yield of 4.7%. Operating expenses fell to $50 million on favorable ceding commissions and expense management, and the company tightened its full-year operating expense guidance to the low end of its $205 million to $210 million range. AM Best also upgraded Enact Mortgage Insurance Corporation's financial strength rating to A from A- during the period.
The bigger picture risk investors are tracking is structural. New insurance written of $14 billion was down 7% sequentially on lower refinance activity, and an executive order on mortgage insurance cancellation has added regulatory uncertainty to an already cautious backdrop. PMIERs sufficiency, a key solvency cushion, declined to 158%. How delinquencies develop as newer book years season will determine whether the Q3 loss ratio spike is a one-quarter story or the start of a trend.
Sources
Mentioned: ACT