Enact Holdings, Inc. (ACT) · Q2 2026 results and valuation

At 4.1% growth a year (3-year revenue growth), the model's fair value is $75.37 a share — the stock trades 39% below it. Today's price assumes −2.7% growth a year.

1. Rising

   Home price appreciation is one of the underpinnings of strong cure performance as results continued to remain strong and did not deviate from expectations.

   Source quote

   “think across the risk continuum, we continue to see performance remain strong and really, again, not deviate from our expectations... I guess it's one of the -- certainly one of the underpinnings of strong cure performance has been home price appreciation.”

2. Guidance

   ACT updated its 2026 forecast, estimating expenses excluding reorganization costs to be between $205 million and $210 million based on first half performance and full year outlook.

   Source quote

   “Based on first half performance and full year 2026 outlook, we now forecast 2026 expenses, excluding reorganization costs to be in the range of $205 million to $210 million.”

3. Guidance ↑

   ACT increased its 2026 capital return expectations to between $550 million and $600 million, providing higher projected returns for investors.

   Source quote

   “we have now increased our capital return expectations to between $550 million to $600 million for 2026.”

4. Fading

   The base premium rate fell by 0.2 basis points to 39.4 basis points, contributing to total net premiums earned of $243 million, down $3 million from the previous quarter.

   Source quote

   “Our base premium rate of 39.4 basis points was down 0.2 basis points sequentially, in line with our expectations. Total net premiums earned were $243 million, down $3 million sequentially and down $2 million year-over-year, primarily driven by higher ceded premiums. As a reminder, our base premium rate is impacted by several factors and tends to modestly fluctuate from quarter-to-quarter.”

Script and answers carried a similar tone, so the script's message held up under questioning.

Sentences that drove the tone

“And by combining disciplined underwriting, a strong balance sheet, thoughtful capital allocation and continued investment in innovation, we are building an even stronger franchise for the long term.”

“The sequential increase is primarily driven by premium growth from attractive adjacencies and growth in primary insurance in-force.”

“We continue to execute against our capital allocation priorities: maintaining a strong and resilient balance sheet to support existing policyholders, investing to drive organic growth and operating efficiencies, funding attractive...”