ACT

This article first appeared on GuruFocus. Revenue: Declined by 5.6% to ZAR3.485 billion, impacted by the loss of Bonitas-related pharmacy business. Operating Profit: Declined by 8.7% to ZAR282 million, impacted by the Bonitas transition and restructuring costs. Normalized Operating Earnings: Increased to ZAR360 million, representing 16.5% growth from the prior year, excluding one-off items. Headline Earnings Per Share (HEPS): Declined by 26.9% to ZAR0.0854. Cash from Operations: ZAR262 million, representing a cash conversion of approximately 93%. Net Cash Position: ZAR84 million at period end, an improvement of approximately ZAR255 million from the prior corresponding period. Lives Under Management: Reduced by 644,000 to 3.28 million, with the loss of approximately 657,000 Bonitas lives partially offset by 29,000 new Sisonke Medical scheme lives. Healthcare South Africa Revenue: Approximately ZAR2.8 billion with an operating profit of ZAR174 million, maintaining a 6.2% margin. DENIS Revenue: Increased by 4% to ZAR314 million, with operating earnings up 55% to ZAR31 million. Healthcare Africa Revenue: ZAR121 million with operating profit of ZAR47 million, translating to an improved operating margin of 39.2%. Retail Revenue: Declined by 16.1% to ZAR1.1 billion, but operating profit increased by 72% to ZAR60.4 million, with operating margins improving from 2.6% to 5.4%. Scriptpharm Revenue: ZAR642 million with operating profit of ZAR24 million, reflecting an 8% decrease in revenue and 27% decrease in earnings. CCMDD Script Volumes: Declined by 2% monthly, while private pharmacy scripts declined by 12%. Restructuring Costs: Nonrecurring restructuring costs of ZAR65 million and severance costs of ZAR65 million. Capital Allocation: ZAR250 million allocated across five critical strategic projects over the short to medium term. Warning! GuruFocus has detected 6 Warning Signs with JSE:ACT. Is JSE:ACT fairly valued? Test your thesis with our free DCF calculator. Release Date: September 02, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Afrocentric Investment Corp Ltd (JSE:ACT) maintained profitability and strong cash generation, with cash from operations of ZAR262 million and a 93% cash conversion rate. The company ended the period with a net cash position of ZAR84 million, a significant improvement from the prior year's net debt, providing liquidity for restructuring. Pharma cluster profitability recovered strongly, with operating profit up 72% and margins improving from 2.6% to 5.4%, driven by cost optimization and sales mix improvements. Healthcare Africa delivered improved operating margins of 39.2%, supported by cost containment efforts, while DENIS saw 55% growth in operating earnings. Management has identified and validated over ZAR900 million (72%) of the ZAR1.3 billion targeted annual savings, with a clear execution plan and milestones. Key contract renewals were secured, including GEMS (three-year managed care and five-year contribution/debt) and a one-year extension for POLMED, reducing near-term client loss risk. Afrocentric Investment Corp Ltd (JSE:ACT) experienced a significant decline in HEPS of 26.9% to ZAR0.0854, reflecting the impact of the Bonitas contract loss and restructuring costs. The loss of the Bonitas contracts has created a structural cost mismatch, requiring ZAR1.3 billion in annual savings to restore breakeven, a substantial challenge. Revenue declined by 5.6% to ZAR3.485 billion, with the full impact of the Bonitas revenue loss expected to hit in the second half of 2026. The company incurred nonrecurring restructuring costs of ZAR65 million and severance costs of ZAR65 million, which weighed on operating profit. Lives under management decreased by 644,000 to 3.28 million, reflecting the loss of approximately 657,000 Bonitas lives, partially offset by new scheme additions. Cash flow is expected to come under pressure in the near term as restructuring advances, with management flagging potential negative free cash flow in H2 2026. Q: What is the company's strategy to manage liquidity and debt covenants over the next 18 months, given the expected pressure on cash flow?A: Thato Moloele (Group CFO) confirmed that debt covenants are in place, including an EBITDA-to-net-debt covenant of 2.5 times and an interest cover covenant of 4 times. While liquidity will face pressure from the loss of Bonitas revenue and strategic reinvestment, the group has sufficient liquidity, evidenced by its net cash position of ZAR84 million, to navigate this period. Q: Can you provide more detail on the phasing of the ZAR250 million capital expenditure over FY26 and FY27?A: Thato Moloele (Group CFO) stated that a substantial portion will be spent in H2 of the current year, with returns anticipated from H2 next year. Gerald Van Wyk (Group CEO) added that approximately ZAR100 million is ring-fenced for H2 spend, primarily for re-platforming IT infrastructure, giving a clear sense of the investment timeline over the next 18 months. Q: Could you clarify the timeline for achieving monthly breakeven for the group versus the Medscheme business?A: Gerald Van Wyk (Group CEO) clarified that the group targets a monthly breakeven run rate by the end of 2027, beginning 2028. However, the core business, Medscheme, which manages 3.3 million lives, is targeted to reach its monthly breakeven run rate earlier, at the beginning of 2027, as part of accelerating the core business's profitability path. Q: What is the timeline and plan for closing the gap on the remaining 28% of the ZAR1.3 billion targeted savings?A: Gerald Van Wyk (Group CEO) explained that progress will be updated to the market every six months, with a Board-approved plan tracked on a monthly basis. The company anticipates realizing between ZAR100 million and ZAR180 million of additional savings in H2, closing the gap to nearly 90%, with the remainder to be found throughout 2027. The key focus is on timing and bringing opportunities to realization by Q1 or Q2 of next year. Q: Is there any other major contract that could be lost similarly to the Bonitas contract, and what steps are being taken to prevent this?A: Gerald Van Wyk (Group CEO) highlighted that the Government Employee Medical Scheme (GEMS) contract was successfully renewed for three years on managed care and five years on contribution and debt. The POLMED contract, expiring at the end of December 2026, has secured a one-year extension to December 2027. Additionally, the CCMDD contract with the National Department of Health is up for renewal in September, with negotiations underway for a significant extension, which has not gone out to tender. Q: Will the company experience negative free cash flow in the next six months, and how will this evolve into 2027?A: Thato Moloele (Group CFO) confirmed that significant cost and liquidity pressure is anticipated in H2 due to the ZAR2 billion revenue impact from Bonitas and the need to strip ZAR1.3 billion from the cost base. However, this pressure is expected to taper as the cost reset and strategic initiatives begin to yield progress. Q: Can you provide more color on the losses incurred by the Forrester acquisition over the last three years?A: Thato Moloele (Group CFO) noted that the impairments taken were not only related to Forrester but also Activo, which was a key reason for exiting the asset. The Activo disposal is now complete, with the first tranche of purchase consideration received. A loss on disposal will likely be reflected in the current financial year, marking the end of that business's impact on earnings. Q: What are the key drivers behind the group's improved cash generation and net cash position despite the revenue decline?A: Thato Moloele (Group CFO) attributed the strong cash generation of ZAR262 million, with a 93% cash conversion, to working capital improvements across the Pharma segment following the Activo disposal and prudent stock management in the private business. The disciplined capital allocation strategy, focused on preserving liquidity, also contributed to the ZAR84 million net cash position, a ZAR255 million improvement year-on-year. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Enact Holdings delivered second quarter results that exceeded Wall Street’s revenue and non-GAAP profit expectations, with performance supported by disciplined underwriting and resilient credit trends. Management attributed the quarter’s success to steady new insurance written, robust risk selection, and continued operational efficiency. CEO Rohit Gupta emphasized, “Our strategy and technology investments are enabling prudent risk targeting and improved efficiency,” while CFO Dean Mitchell highlighted that new insurance written grew 15% year over year, reflecting sustained market demand despite persistent headwinds from higher interest rates and dynamic housing conditions. Is now the time to buy ACT? Find out in our full research report (it’s free). Revenue: $319.5 million vs analyst estimates of $316.1 million (2.3% year-on-year growth, 1.1% beat) Adjusted EPS: $1.26 vs analyst estimates of $1.19 (6.1% beat) Market Capitalization: $6.75 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Mihir Bhatia (Bank of America) asked about the base premium yield trajectory and competitive intensity. CFO Dean Mitchell explained the premium rate should remain relatively flat versus last year, and CEO Rohit Gupta described the market as competitive but pricing as still attractive on a risk-adjusted basis. Mihir Bhatia (Bank of America) probed on the outlook for credit trends. Mitchell emphasized that both new delinquencies and cures were tracking seasonal patterns and that home price appreciation continued to support strong cure performance. Bose George (KBW) inquired about when delinquencies might peak given portfolio seasoning. Mitchell replied that a slight increase in delinquency rates is likely in the second half of the year due to seasonality, with moderation possible in 2027 depending on macroeconomic conditions. Bose George (KBW) asked about the VantageScore rollout and underwriting changes. Gupta detailed that loans typically come with just VantageScore, and the company’s approach is to maintain precision in risk pricing while adapting operationally to support lenders and consumers. Rowland Mayor (RBC Capital Markets) questioned the drivers of the updated capital return range. Mitchell attributed the increase to strong business performance and excess capital, and clarified that regulatory and macroeconomic factors are also considered in capital deployment decisions. In the coming quarters, the StockStory team will watch (1) the adoption and measurable impact of automation tools like ELLA on underwriting efficiency and credit outcomes, (2) developments in housing affordability and mortgage application trends as interest rates fluctuate, and (3) the progression of new credit scoring standards, including VantageScore, and their effects on risk selection and loan volume. Execution on expense targets and capital deployment strategies will remain important markers of management’s ability to deliver on its guidance. Enact Holdings currently trades at $49.12, up from $47.83 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members). ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time. Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Wednesday, Aug. 5, 2026 at 5 p.m. ET Vice President of Finance - Daniel Kohl President and Chief Executive Officer - Rohit Gupta Chief Financial Officer and Treasurer - Dean Mitchell Operator: Hello, and welcome to Enact's Second Quarter Earnings Call. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker, Daniel Kohl, Vice President of Finance. You may begin. Daniel Kohl: Thank you, and good morning. Welcome to our second quarter earnings call. Joining me today are Rohit Gupta, President and Chief Executive Officer; and Dean Mitchell, Chief Financial Officer and Treasurer. Rohit will provide an overview of our business performance and progress against our strategy. Dean will then discuss the details of our quarterly results before turning the call back to Rohit for closing remarks. We will then take your questions. The earnings materials we issued after market close yesterday contain our financial results for the quarter, along with a comprehensive set of financial and operational metrics. These are available on the Investor Relations section of our website. Today's call is being recorded and will include the use of forward-looking statements. These statements are based on current assumptions, estimates, expectations and projections as of today's date. Additionally, they are subject to risks and uncertainties, which may cause actual results to be materially different, and we undertake no obligation to update or revise such statements as a result of new information. For a discussion of these risks and uncertainties, please review the cautionary language regarding forward-looking statements in today's press release as well as in our filings with the SEC, which will be available on our website. Please keep in mind the earnings materials and management's prepared remarks today include certain non-GAAP measures. Reconciliations of these measures to the most relevant GAAP metrics can be found in the press release, our earnings presentation and our upcoming SEC filing on our website. With that, I'll turn the call over to Rohit. Rohit Gupta: Thank you, Daniel. Good morning, everyone. Before discussing our second quarter results, I would like to begin by saying that our thoughts are with Tom McInerney, who is a valued member of our Board and strong supporter of Enact. We wish Tom a full and speedy recovery. I also want to express my support for Jerome Upton as he steps into the role of Interim President and CEO of Genworth. Jerome has been an important member of Genworth's leadership team as well as Enact's Board of Directors for many years, and I'm confident he will provide thoughtful and steady leadership during this time, and I look forward to our continued partnership. Turning to our results. Enact closed the first half of 2026 with another strong quarter, reflecting the disciplined execution of our strategy, resilient credit performance and our continued focus on long-term sustainable value creation. As a result of our strong performance, we are updating our 2026 capital return expectations to between $550 million and $600 million, up from our prior guidance of $500 million. I will discuss this in more detail shortly. For the second quarter, we reported adjusted operating income of $177 million or $1.26 per diluted share. Adjusted return on equity was 13%, and we generated strong new insurance written of $15 billion, resulting in total insurance in force of $274 billion. The macro and housing environment remained dynamic as elevated interest rates, geopolitical developments and policy uncertainty continued to contribute to market volatility. At the same time, the U.S. economy was resilient, supported by a healthy labor market and generally stable household balance sheets. Within housing, underlying demand fundamentals are strong. And while higher mortgage rates continue to temper overall transaction volumes, purchase application activity benefited from the spring selling season. From a credit perspective, our portfolio is performing well with recent books performing in line with our expectations. Persistency remained elevated at 80% during the quarter. This is supported by the rate environment with approximately 57% of loans in our portfolio carrying mortgage rates below 6%. Looking ahead, we continue to believe the long-term fundamentals supporting the housing market remain intact, and we are confident that private mortgage insurance will continue to play a critical role in responsibly expanding access to sustainable homeownership while creating attractive opportunities for Enact. Our Insurance in-force portfolio remains resilient with a risk-weighted average credit score of 746 and a risk-weighted average loan-to-value ratio of 93%. Layered risk was 1.1% of risk in-force. Pricing remained constructive in the quarter, while our participation was strong and our dynamic risk-adjusted pricing engine is enabling us to prudently target the right risk at the right price on a granular level as market conditions evolve. As we continue to leverage technology to enable better risk selection and improve operational efficiency, we are pleased to announce that in addition to our pricing engine, we recently launched our Enact Loan Level Assistant, or ELLA. This new tool is our internal underwriting innovation that applies generative AI to help underwriters make smarter underwriting decisions. By reviewing loan documents, identifying inconsistencies and surfacing relevant insights more efficiently, ELLA reduces repetitive tasks, improves risk selection and allows our underwriters to spend more time applying their expertise to making underwriting decisions. While it's still early in its launch, adoption has grown rapidly, and we believe ELLA will create a strong foundation for future efficiency improvement. Turning to losses. New delinquencies were down 9% and cures were down 9% sequentially, consistent with seasonal trends, and total delinquencies declined 1%. Our strong cure performance was driven by favorable credit trends and effective loss mitigation efforts. This drove a reserve release of $37 million in the quarter, resulting in a loss ratio of 14%. Credit performance remains strong, and we are well reserved across a range of scenarios. We delivered another quarter of prudent expense management with operating expenses down year-over-year despite the inflationary environment. Dean will discuss the key drivers of this strong performance and our improved expectations for 2026. 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 new business opportunities such as Enact Re and returning excess capital to shareholders. At the end of the quarter, our PMIERs sufficiency ratio was 161%, providing significant financial flexibility, and our credit and investment portfolios were in excellent shape. Our strong capital position is further reinforced by our CRT program and the backing of our undrawn credit facility. We also continue to execute on our growth and diversification strategy. Enact Re delivered another quarter of strong performance, generating attractive risk-adjusted returns while remaining both capital and expense efficient. Finally, our strong performance supports continued robust returns to shareholders. During the quarter, we returned $127 million through share repurchases and dividends. As I mentioned, we have now increased our capital return expectations to between $550 million to $600 million for 2026. This upward revision reflects our commitment to returning excess capital to shareholders while maintaining a strong balance sheet. I'd now like to take a moment to recognize our culture and our people. For the fourth time since our IPO, Enact was recognized as one of the best places to work by the Triangle Business Journal. We have always taken pride in fostering an environment where teams can do their best work for our customers and stakeholders and are pleased to have received this recognition again. Turning to recent housing policy announcements. As I mentioned last quarter, Enact supports the FHFA and GSEs' ongoing efforts to modernize credit evaluation in ways that responsibly expands access to sustainable homeownership. During the quarter, we began participating in the market's limited rollout of VantageScore 4, although its financial impact during the quarter was immaterial. We remain committed to supporting our customers and staying operationally aligned as initiatives are implemented and scaled in the market. Overall, we've had a great first half of 2026 that positions Enact for long-term success. With that, I will now hand the call over to Dean. Hardin Mitchell: Thanks, Rohit, and good morning, everyone. We delivered another strong quarter of performance. Adjusted operating income was $177 million or $1.26 per diluted share compared to $1.15 per diluted share in the same period last year and $1.21 per diluted share in the first quarter of 2026. Adjusted operating return on equity was 13.2%. A detailed reconciliation of GAAP net income to adjusted operating income can be found in our earnings release. Turning to revenue drivers. New insurance written was $15 billion in the quarter, up 19% sequentially and up 15% year-over-year as rates remained elevated and seasonal dynamics played out across the period. Persistency was 80% in the quarter, flat sequentially and down 2 points year-over-year on lower prevailing mortgage rates. While rates increased over the quarter, our portfolio remains resilient with 12% of our mortgages in our portfolio having rates at least 50 basis points above June's average of 6.5%. At the same time, 57% of loans in our portfolio carry rates below 6%. Primary insurance in-force was $274 billion in the quarter, up $1 billion or approximately 1% from the first quarter of 2026 and up $4 billion or approximately 2% year-over-year. Total net premiums earned were $245 million, up $2 million sequentially and flat year-over-year. The sequential increase is primarily driven by premium growth from attractive adjacencies and growth in primary insurance in-force. Our base premium rate of 39.1 basis points was down 0.3 basis points sequentially. As a reminder, our base premium rate is impacted by several factors, including macro factors driving refinancing activity and tends to modestly fluctuate from quarter-to-quarter. Our net earned premium rate was 34.1 basis points, down 0.2 basis points sequentially and aligned with the decrease in base premium rate. Investment income in the second quarter was $73 million, up $2 million or 3% sequentially and up $7 million or 11% year-over-year. Our new money investment yield was over 5% and contributed to an increase in the average portfolio book yield to 4.6% for the quarter. While we typically hold investments to maturity, we may selectively pursue income enhancement opportunities. During the quarter, we sold certain assets that will allow us to recoup realized losses through future higher net investment income. Turning to credit. We continue to see strong loss performance across our portfolio. New delinquencies decreased sequentially to 12,300 in the quarter from 13,600 in the first quarter of 2026, in line with expected seasonal trends. Our new delinquency rate for the quarter remained consistent with pre-pandemic levels at 1.3%, down 20 basis points from the first quarter of 2026 and an increase of 10 basis points from the second quarter of 2025. Our cure rate decreased 4 percentage points sequentially to 50%, in line with seasonal trends and remains elevated. We maintained our claim rate on new delinquencies at 8%. Total delinquencies in the second quarter decreased sequentially to 24,300 from 24,700 and the delinquency rate was flat sequentially at 2.6%. Losses in the second quarter of 2026 were $33 million and the loss ratio was 14% compared to $37 million and 15% in the first quarter of 2026 and $25 million and 10% in the second quarter of 2025. The current quarter reserve release of $37 million from favorable cure performance and loss mitigation activities compares to a reserve release of $39 million in the first quarter of 2026, and $48 million in the second quarter of 2025. Operating expenses in the second quarter of 2026 were $52 million, and the expense ratio was 21% compared to $49 million and 20% in the first quarter of 2026 and $53 million and 22% in the second quarter of 2025. In the second quarter of 2026, we took actions that resulted in a $1 million reorganization charge that is excluded from our adjusted operating income. 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. We continue to operate from a strong capital and liquidity position, underpinned by our robust PMIERs sufficiency and the successful execution of our diversified CRT program. Our PMIERs sufficiency was 161%, or $1.9 billion above PMIERs requirements and our third-party CRT program provides $1.9 billion of PMIERs capital credit at the end of the quarter. Turning now to capital allocation. During the quarter, we paid out approximately $34 million or $0.24 per share through our quarterly dividend and bought back 2.2 million shares at an average price of $42.58 for $93 million. Through July 31, we have repurchased an additional 0.7 million shares for $30 million. Today, we announced the third quarter dividend of $0.24 per common share payable September 17, 2026. As Rohit mentioned earlier, we're increasing our 2026 total capital return guidance to be in the range of $550 million to $600 million, reflecting our continued strong financial position and confidence in our business. As in the past, the final amount and form of capital return to shareholders will ultimately depend on business performance, market conditions and regulatory approvals. Overall, we are pleased with our performance through the first half of the year. As we look ahead, our disciplined approach to risk management, strong balance sheet and financial flexibility position us well to navigate the evolving environment while continuing to deliver value to our shareholders. With that, let me turn the call back to Rohit. Rohit Gupta: Thanks, Dean. Enact is positioned to succeed through market cycles. 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. As always, our mission to responsibly help more people achieve the dream of homeownership remains at the center of everything we do. Operator, we are now ready for Q&A. Operator: [Operator Instructions] Your first question comes from the line of Mihir Bhatia with Bank of America. Mihir Bhatia: I wanted to start by just asking maybe about the base premium yield. I mean it's relatively steady, but it is inside maybe the third decimal coming down a little bit through the -- for the last few quarters. Where do you expect that to settle out? And just any expectations you could guide us for like the rest of the year? Just -- and maybe related to that, if you want to just comment on competitive intensity, too, that you're seeing? Hardin Mitchell: Yes, Mihir, it's Dean. I'll start with the answer on base premium rate trajectory and Rohit will, I'm sure, pick up from a competitive perspective in the market. I would say, despite the modest first half pressure, our base premium rate outlook really remains consistent with our 2026 guidance that we gave at the beginning of the year that we expect it to be relatively flat versus 2025. I think you know that could have a slight downward tilt kind of like we saw in 2025, but I would characterize that very much in line with the original guidance of relatively flat. I think we've talked about in prior periods that there's always going to be some quarter-over-quarter volatility. That metric is influenced by a bunch of different variables. We've talked about NIW levels. We've talked about NIW mix, specifically as it relates to purchase refi, which can change the nature of the risk and change the nature of the pricing, lapse, what book years are lapsing and then things that aren't always associated with premium rate like delinquent premium accrual. I think we saw some of that volatility play out this quarter. But overall, in terms of the impact on our overall guidance, I think it remains consistent to generally flat versus 2025. Rohit, do you want to take competitive environment? Rohit Gupta: Yes. Thanks, Dean. Thank you for your question. So I would just say MI market continues to be dynamic, but remains constructive from our vantage point. Pricing, as we have mentioned in the past, was competitive, but remains at levels that, in our view, still reflect somewhat elevated levels of economic uncertainty. And from a pricing return perspective, they remain attractive from our vantage point on a risk-adjusted basis and accretive to economic value. So we are very happy with the $15-plus billion of NIW we wrote in the quarter and the returns at which we wrote that NIW. Mihir Bhatia: Can I just follow up on that, Rohit? Could you -- maybe like quantify the ROE on new business today? And how does that compare to, I don't know, maybe the 2023, 2024 vintages? Rohit Gupta: Mihir, I think I'm going to have a tough time giving any ROE guidance. We have not been providing ROE guidance either in a range or any kind of point estimate. I would say that we find the ROE is accretive to shareholder value. And we've talked about this in the past that we price NIW on a conditional basis, so not only from a consumer and loan attribute perspective, but down to each geography. So just given the granularity of our pricing and returns as well as the competitive nature of the market and the opaque pricing environment, it's tough to provide guidance on ROE quantitatively. But hopefully, the qualitative color helps. Mihir Bhatia: Yes. Okay. Maybe I'll ask one more and then just jump back in the queue. Just on the credit outlook from here. I think new notices fell, default rate was down a little bit. I guess any guidance, any commentary on how you expect that to trend from here? Just talk some of the factors that are driving that strength and if we should -- how you expect default rates to trend from here? Hardin Mitchell: Yes. Thanks, Mihir. I'll take that. This is Dean again. I think you characterized the market -- the credit market appropriately. We see credit performance remaining strong, and that is across both new delinquency development and cures. Both news and cures were down sequentially. I think in our prepared remarks, we made the reference that's really consistent with normal seasonality as you transition from Q1 to Q2 of any particular year. If we peel the onion back a little bit, we continue to assess performance across a variety of borrower and loan attributes. We don't see any material deviation from our pricing expectations when we set price and onboard the risk. So I think across the risk continuum, we continue to see performance remain strong and really, again, not deviate from our expectations when we onboard the risk and price and ultimately price the policy. I guess it's one of the -- certainly one of the underpinnings of strong cure performance has been home price appreciation. That's a key driver of cure performance to date. I think we continue to see strong embedded HPA across our policies in-force as well as our delinquencies. So 88% of our delinquencies continue to have mark-to-market equity of 10% or more. And I'd say just as you think about short to medium term, I think that underpins ongoing strong cure performance, again, in the kind of in the short to medium term. We talked about delq rate a little bit last quarter as it relates to both the impact of some of the newer vintages contributing more delinquencies as they age up their normal loss development pattern. And of course, some of those newer vintages don't have as much HPA -- embedded HPA. I think that can be a contributor to an uptick in delinquency rate as we move forward in time. And then just in the short term from a delq rate perspective, while we got the benefit of seasonality over the first half of the year, second half seasonality tends to -- you see an uptick in new delinquencies. And so I think it's reasonable to expect an uptick in delq rate from at least first half levels in the short term from a delq rate perspective. Operator: Your next question comes from the line of Bose George with KBW. Bose George: Actually just a follow-up on credit. Can you just talk about when you see delinquencies peaking just from a normalized seasoning of the portfolio? Hardin Mitchell: Yes, Bose, it's Dean again. I think much like we talked about just on that last answer, I think second half seasonality, you're going to see an uptick in delq rate or potentially an uptick in delq rate given the second half seasonality that we would expect vis-a-vis the first half. And then as you transition into 2027, you have different seasonality. So start to have a positive impact on cures, new delq's and ultimately, that having an influence on delq rate. So from a timing perspective, I think you're going to see a little bit of pressure to delq rate over the course of the second half of 2026. And then from there, a lot of that's going to be dictated by macroeconomic drivers, what the macroeconomic trajectory is, and that will be a pretty big influence on delq inventory and ultimately delq rate go forward. But from a seasonality perspective, you're going to see those 2 seasonality kind of drivers play out, a little bit of pressure in the second half and then a pivot as we enter into 2027. Bose George: Okay. No, that makes sense. But if the macro remains stable, just with the newer books that have less HPA for you and everyone in the industry, does it suggest that there is going to be sort of an uptrend just in normalized delinquencies as these -- as they become a bigger part of the inventory? Is that fair? Hardin Mitchell: Yes. I think we've talked about the more recent books having aged through a more moderate home price appreciation path. They've also been originated in a purchase-heavy market, which has modestly higher risk characteristics, a little higher LTVs, a little higher DTIs. So I think it's fair to expect those vintages to produce more new delinquencies as they age up their normal loss development curve. Again, like you posed the question, all things being equal. The good news there is we price for that risk when we onboard it. And to date, from a new vintage perspective, I think Rohit made reference in his prepared remarks, we're not really seeing any deviation from our pricing expectations. But yes, I think those new books are going to produce more delinquencies given their makeup and given the macroeconomic environment that they've aged through to date vis-a-vis what we saw in 2020 and 2021 vintages just by way of example, they have a tremendous amount of embedded HPA. Bose George: Okay. Great. And then just actually one on the VantageScore loans that you mentioned. Actually, do these loans just have VantageScore? Or do they also have a FICO? And then when you underwrite these loans, how do you -- what do you do differently just given, I guess, there is less history, et cetera? Rohit Gupta: Yes. Thank you for the question. So I would say these Vantage loans typically come with just VantageScore. But I would also say that we are in the early innings of the rollout of VantageScore. As you might remember, there was a limited market rollout and then it was rolled out subsequently for high LTV consumers. So number of lenders who are actually sending volume, especially volume in second quarter was very small. So we will see how lender adoption changes. And depending on which lenders are submitting loans, are they sending one score or both scores. So that's the answer to your first question. From our side, from underwriting perspective, our kind of -- if you think about our guiding principles, our first guiding principle was right price for the right risk, which is our risk philosophy, and we've been talking about that since our IPO. So making sure that as we are switching from Classic FICO to Vantage, we have an ability to assess the capital, the losses, expenses for that loan and then apply it as accurately as we were applying it on Classic FICO. So we are making -- we made progress and we rolled out with high confidence on that. And then also making sure that from an operational and financial perspective, we have the right controls, and we were supporting our lender partners and consumers. So at this point of time, we are in the market with VantageScore pricing, accurate down to a loan level. And as the FICO 10T, data is coming out, we are getting ready to basically build the same capabilities on FICO 10T so we can support that rollout as and when it happens. So that's our mindset and hope that context helps. Operator: Your next question comes from the line of Richard Shane with JPMorgan. Richard Shane: Both Bose and Mihir asked a lot of great questions, and it's a pretty straightforward quarter. So there's not a ton left to discuss. But conceptually, I'd love to talk about one thing. HPA is kind of a multifaceted challenge and opportunity for you guys. Obviously, it helps with credit on the back book. It potentially drives TAM expansion because it impacts affordability and people's ability to make down payments. But ultimately, there is an affordability issue that it creates. I'm curious where you guys think we really are in that cycle. We've been through this sort of really unprecedented period of HPA 4 or 5 years ago, and it started to moderate and probably been for the last year or 2 below historic average. How do we think about the dynamics for you guys related to that? Rohit Gupta: Yes, Rick, thank you for the question. So I would say that's a very complex and also a question that has different implications for our business in short term and long term. I would say we focus on affordability as a key metric when we think about the balance of all the components you talked about. So I would think about home prices, I would definitely think about interest rates, and then I would add income or wage growth over that same time period. If you combine those 3 components, you essentially get the Housing Affordability Index that we monitor both at the national level and then specifically at a geography level. To your point, in 2020, 2021, we saw a significant increase in home prices, but affordability was still in a good place because we were seeing historically low interest rates in mortgages and wage growth was still good coming out of COVID. So I think that helped affordability. But the combination of home prices staying elevated and interest rates doubling coming out of COVID, obviously has kind of created this affordability pressure that we have felt for 3, 3.5 years now. So in our mind, it's a relationship between wage growth and home price appreciation that matters in how affordability gets better. So it's not that home price appreciation is bad. Historically, a 3% to 5% home price appreciation was seen as very normal, and that did not impact affordability because wage growth was about the same or wage growth was slightly above that home price appreciation. And then at the same time, interest rates contributed in a constructive way because they are within a narrow range. I think the fact that we are operating in a higher rate environment in addition to continued elevated home prices leads to that affordability challenge that you're referring to. With current conditions, obviously, it's going to take a lot longer for that affordability challenge to get solved. But if we get relief in rates, which the administration is focused on, FHFA is focused on, if we get relief on either the underlying yield or the spreads, then you could see rates coming into a range where consumers find those rates affordable enough. I'm not saying affordability will be back to 2020 levels, but affordability is good enough for consumers who are on the sidelines to come off the sidelines and participate in the homeownership journey. And we have seen proof points of that. If you look at the current affordability levels and if you think about the pent-up demand that continues to exist in the market for homeownership, when rates come into that 6% range for 30-year fixed mortgage, we have seen a lot of first-time home-ready consumers come to market and become homeowners. So that's the way we look at the entire picture. Hopefully, that provides some context. Richard Shane: No, it's very helpful. And then just one sort of related follow-up. If we go back to '23, '24 time frame, I asked you guys some tough questions about loans with one or temporary rate buydowns. And I think you guys at the time said that you underwrite to life of loan. I'm sort of the view that a lot of those buyers were in the position -- had expectations, all mortgage brokers and all mortgage borrowers are rate falls. And I think all those folks thought they were going to be able to refinance those loans down. Clearly, rates have held up a lot higher. We haven't seen anything in the credit to suggest that was a -- that your strategy was riskier than your thought. But I am curious as you sort of think back now, was that -- was your view really validated and were we overly cautious at the time? Rohit Gupta: Yes, Rick, thank you again for another great question. I would say, as a reminder, when we talked about rate buydowns, I think it was '23, '24 and even maybe later than that. First, just out of the gate, there were 2 components of it, the temporary rate buydowns, but a lot of builder-originated loans used to be forward commitments or you can call them permanent buydowns. So if you just think about temporary buydowns, those consumers were qualified at the fully indexed rates. So from an underwriting perspective, those consumers were qualified at the right ratios, debt-to-income ratios, even if they were to get hit with those rate increases, which, to your point, might have happened or about to happen. So for temporary buydowns, we have not seen a deterioration in performance. The performance has held up pretty well. And then for the forward commitment or permanent rate buydowns, those consumers actually have no rate shock coming because the lender in this case, actually had bought the rate down for the life of loan. So those continue to perform very well. Operator: Your next question comes from the line of Rowland Mayor with RBC Capital Markets. Rowland Mayor: Just a quick numbers one to start. Does the expense guidance you offered include amortization? Or is it just your acquisition operating expense line? Daniel Kohl: Thanks, Rowland. This is Daniel. No, that's a good question. It includes both operating expenses and the amortization on our P&L. Rowland Mayor: Okay. And going on that, could you just help me understand the trade-off between expenses and losses? As the prior year development comes down a bit, is there an expense offset due to lower variable comp? Daniel Kohl: No. Well, what I'd say is our expense guidance takes into account our expectations for the full year. And we're really happy with the expense guidance and really is just a reflection of our continued journey since the IPO, where we've been able to take out about 15% of our expense base. And that's in a really high inflationary environment. And in fact, if you adjust for inflation, that's about 30% from an adjusted for inflation basis. And so that's just a continuation of our proven approach to expense management and really does reflect just that approach and that disciplined approach that we've taken in the last several years. Rohit Gupta: Rowland, as it pertains to impact of any kind of incentives and prior year development and this year's development, that essentially is reset every year anyway. So just think about the short-term incentives are set by the Board every calendar year based on the projections for that calendar year. But to a certain degree, it's not that we are going off year-over-year comparisons. The performance is measured against goals set for calendar year 2026. Rowland Mayor: That's super helpful. And then if I could just do one more. Can you help us understand the difference between like a $550 million capital return and the $600 million? It said that regulatory approvals were a factor? Or are we waiting on a holdco dividend approval? Or is it something else that would change the end of the range you end up on? Hardin Mitchell: Yes, Rowland, it's Dean again. Thanks for the question. I think we made reference to really 3 dynamics, 3 drivers that we look at and think about as it relates to our total capital return guidance, business performance, macroeconomic environment, so the prevailing and prospective view on how the macroeconomic environment will influence the market and our business and then regulatory environment. What I would say as kind of the fundamental driver for the increase in guidance from our prior $500 million to our new range of $550 million to $600 million is really foundationally integrated into our business performance. So business performance has been very strong over the first half of the year, gives us an additional -- first of all, it gives us additional excess capital. But in addition to that, gives us additional confidence to return more capital to shareholders. Embedded in that business performance is obviously a picture of the market in NIW. And given that we're in a slightly smaller market than what we anticipated at the beginning of the year, another kind of foundational driver for why the increase in guidance for full year capital return for 2026. We'll continue to evaluate the other drivers as well. We think the macroeconomic environment has remained resilient, and there's really no change in the regulatory environment. It's still what we believe to be accommodative of the increased return to capital guidance that we gave. Operator: There are no further questions at this time. I will now turn the call back over to Rohit Gupta for closing remarks. Rohit Gupta: Thank you, Dennis, and thank you, everyone. We appreciate your interest in Enact, and we look forward to seeing many of you at Barclays 24th Annual Global Financial Services Conference on September 14 in New York. Thank you. Operator: That concludes today's call. Thank you all for joining, and you may now disconnect. Before you buy stock in Enact, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Enact wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Enact (ACT) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Enact Holdings Inc (NASDAQ:ACT) reported strong Q2 2026 results with adjusted operating income of $177 million, or $1.26 per diluted share, up from $1.15 in the prior year quarter. The company raised its 2026 capital return guidance to $550-$600 million, up from $500 million, reflecting strong performance and confidence in the business. New insurance written (NIW) was $15 billion, up 19% sequentially and 15% year-over-year, driven by elevated rates and seasonal dynamics. Credit performance remained resilient with new delinquencies down 9% sequentially, a reserve release of $37 million, and a loss ratio of 14%. The company launched its Enact Loan Level Assistant (ELA), a generative AI underwriting tool, to improve risk selection and operational efficiency. Investment income increased 11% year-over-year to $73 million, supported by a new money yield over 5% and a higher average portfolio book yield of 4.6%. Operating expenses declined year-over-year despite inflation, with 2026 expense guidance improved to $205-$210 million. Persistency remained elevated at 80%, supported by 57% of loans with mortgage rates below 6%. The company maintained a strong capital position with a PMIERs sufficiency ratio of 151% and $1.9 billion in third-party CRT capital credit. Enact Holdings Inc (NASDAQ:ACT) continued to return capital to shareholders, paying $127 million in dividends and buybacks during the quarter. Elevated interest rates and policy uncertainty continue to temper housing transaction volumes, impacting overall market growth. The base premium rate declined 0.3 basis points sequentially to 39.1 basis points, reflecting modest pressure from refinancing activity and mix shifts. New delinquency rate increased 10 basis points year-over-year to 1.3%, though it remains consistent with pre-pandemic levels. Cure rates decreased 4 percentage points sequentially to 50%, in line with seasonal trends but indicating potential slowing in loss mitigation. The company expects an uptick in delinquency rates in the second half of 2026 due to seasonal patterns and the aging of newer vintages with less embedded home price appreciation. Persistency declined 2 points year-over-year to 80%, reflecting lower prevailing mortgage rates and potential refinancing activity. The competitive environment remains intense, with pricing pressure that could impact future returns, though management notes it remains attractive on a risk-adjusted basis. The company took a $1 million reorganization charge in Q2, which is excluded from adjusted operating income but indicates ongoing cost restructuring. The rollout of VantageScore 4.0 is still in early innings, with limited lender adoption, creating uncertainty about future credit assessment impacts. The macroeconomic environment, including geopolitical developments and policy uncertainty, continues to contribute to market volatility, which could affect future performance. Warning! GuruFocus has detected 7 Warning Sign with ACT. Is ACT fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide more detail on the drivers behind the increase in 2026 capital return guidance to $550-$600 million, and what factors could determine where within that range the company ultimately lands? A: Dean Mitchell, CFO: The increase from our prior $500 million guidance is fundamentally driven by strong business performance, which has generated additional excess capital and increased our confidence to return more to shareholders. This is partly due to operating in a slightly smaller market than anticipated at the start of the year, reducing the need for capital to fund new business. The final amount will depend on business performance, the macroeconomic environment, and the regulatory landscape, which we currently view as accommodative. Q: What is the outlook for the base premium rate, and how should we think about competitive intensity in the market? A: Dean Mitchell, CFO & Rohit Gupta, CEO: Despite modest first-half pressure, the base premium rate outlook remains consistent with our 2026 guidance of being relatively flat versus 2025, with a possible slight downward tilt. The metric is influenced by several variables including NIW mix, purchase versus refi activity, and delinquent premium accrual. From a competitive standpoint, the market remains dynamic but constructive, with pricing still reflecting elevated economic uncertainty and remaining attractive on a risk-adjusted basis. Q: How should we expect delinquency rates to trend from here, and what factors are driving the current strength in credit performance? A: Dean Mitchell, CFO: Credit performance remains strong across both new delinquency development and cures, with both down sequentially in line with normal seasonality. We don't see material deviation from pricing expectations across borrower and loan attributes. Strong embedded home price appreciation supports cure performance, with 88% of delinquencies having mark-to-market equity of 10% or more. However, we expect an uptick in delinquency rates in the second half of 2026 due to seasonal patterns and newer vintages aging up with less embedded HPA. Q: When do you expect delinquencies to peak from a normalized seasoning perspective, and will newer books with less home price appreciation lead to an uptrend in normalized delinquencies? A: Dean Mitchell, CFO: We expect some pressure on delinquency rates over the second half of 2026 due to seasonality, with a pivot as we enter 2027. More recent books have aged through a more moderate HPA path and were originated in a purchase-heavy market with modestly higher risk characteristics, so they should produce more new delinquencies as they age. However, we priced for this risk when onboarding, and to date, we're not seeing deviation from pricing expectations. Q: Regarding the VantageScore 4 rollout, do these loans also have FICO scores, and how does your underwriting approach differ? A: Rohit Gupta, CEO: These Vantage loans typically come with just the VantageScore, and we are in the early innings of the rollout with a very small number of lenders submitting volume. Our guiding principle is the right price for the right risk, so we've built the ability to assess capital, losses, and expenses for these loans as accurately as with classic FICO. We're pricing VantageScore accurately down to a loan level and are preparing similar capabilities for FICO 10T as that data becomes available. Q: How do you think about the dynamics of home price appreciation for your business, particularly regarding the balance between credit benefits and affordability challenges? A: Rohit Gupta, CEO: We focus on affordability as the key metric, combining home prices, interest rates, and wage growth. The current affordability pressure stems from elevated home prices combined with doubled interest rates. Historically, 3-5% HPA was normal and didn't impact affordability when wage growth kept pace. If rates get relief, we could see consumers come off the sidelines, and we've seen proof points of pent-up demand when 30-year fixed rates approach 6%. Q: Looking back at loans with temporary rate buy-downs from 2023-2024, was your strategy of underwriting to the life of the loan validated given rates have held up higher than expected? A: Rohit Gupta, CEO: For temporary buy-downs, consumers were qualified at the fully indexed rate, so they were underwritten at the right debt-to-income ratios even if rates increased. We have not seen deterioration in performance for these loans. For permanent buy-downs or forward commitments, consumers have no rate shock coming because the lender bought the rate down for the life of the loan, and those continue to perform very well. Q: Does the 2026 expense guidance of $205-$210 million include amortization, and is there a trade-off between expenses and losses given lower prior year development? A: Daniel Cole, VP of Finance & Dean Mitchell, CFO: The guidance includes both operating expenses and amortization on the P&L. The expense guidance reflects our continued journey since the IPO of taking out about 15% of our expense base in a high inflationary environment, which is about 30% on an inflation-adjusted basis. There's no direct trade-off with losses; short-term incentives are reset annually by the board based on projections for that calendar year. Q: Can you quantify the ROE on new business today and how it compares to 2023-2024 vintages? A: Rohit Gupta, CEO: We don't provide ROE guidance in a range or point estimate. However, we find the ROE is accretive to shareholder value. We price NIW on a conditional basis down to each geography, and given the granularity of our pricing and the competitive, opaque pricing environment, it's difficult to provide quantitative ROE guidance. The $15+ billion of NIW written in the quarter was at attractive returns on a risk-adjusted basis. Q: What is driving the strong performance of Enact V, and how does it fit into your growth and diversification strategy? A: Rohit Gupta, CEO: Enact V delivered another quarter of strong performance, generating attractive risk-adjusted returns while remaining both capital and expense efficient. It's a key part of our capital allocation priorities, alongside maintaining a strong balance sheet, investing for organic growth, and returning capital to shareholders. The strong performance supports our increased capital return expectations for 2026. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Enact Holdings, Inc. (ACT) came out with quarterly earnings of $1.26 per share, beating the Zacks Consensus Estimate of $1.2 per share. This compares to earnings of $1.15 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +5.00%. A quarter ago, it was expected that this company would post earnings of $1.26 per share when it actually produced earnings of $1.21, delivering a surprise of -3.97%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Enact Holdings, which belongs to the Zacks Insurance - Multi line industry, posted revenues of $319.54 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 3.20%. This compares to year-ago revenues of $312.23 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Enact Holdings shares have added about 20.8% since the beginning of the year versus the S&P 500's gain of 13%. While Enact Holdings has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Enact Holdings was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.21 on $310.47 million in revenues for the coming quarter and $4.74 on $1.25 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Insurance - Multi line is currently in the bottom 32% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Octave Specialty Group (OSG), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 6. This bond insurer is expected to post quarterly loss of $0.01 per share in its upcoming report, which represents a year-over-year change of +95.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Octave Specialty Group's revenues are expected to be $81 million, up 47.4% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Enact Holdings, Inc. (ACT) : Free Stock Analysis Report Octave Specialty Group, Inc. (OSG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

GAAP Net Income of $175 million, or $1.25 per diluted shareAdjusted Operating Income of $177 million, or $1.26 per diluted shareReturn on Equity of 13.0% and Adjusted Operating Return on Equity of 13.2%Primary Insurance in-force of $274 billion, a 2% year-over-year increasePMIERs Sufficiency of 161% or approximately $1.9 billionBook Value Per Share of $39.06 and Book Value Per Share excluding AOCI of $39.66Increased Full-Year Capital Return Guidance to be between $550 million and $600 million RALEIGH, N.C., Aug. 05, 2026 (GLOBE NEWSWIRE) -- Enact Holdings, Inc. (Nasdaq: ACT) today announced financial results for the second quarter of 2026. “Enact delivered another strong quarter supported by consistent execution, resilient credit performance and operating discipline,” said Rohit Gupta, President and CEO of Enact. “We continued to successfully navigate and prudently grow in a volatile environment while also investing in our strategic priorities and returning substantial capital to our shareholders. With a strong balance sheet, differentiated capabilities and a clear strategy, we remain well positioned to create sustainable long-term value while helping more people responsibly achieve and sustain homeownership.” Key Financial Highlights Second Quarter 2026 Financial and Operating Highlights Net income was $175 million, or $1.25 per diluted share, compared with $168 million, or $1.18 per diluted share, for the first quarter of 2026 and $168 million, or $1.11 per diluted share, for the second quarter of 2025. Adjusted operating income was $177 million, or $1.26 per diluted share, compared with $172 million, or $1.21 per diluted share, for the first quarter of 2026 and $174 million, or $1.15 per diluted share, for the second quarter of 2025. New insurance written (NIW) was $15 billion, up 19% from the first quarter of 2026, and up 15% from the second quarter of 2025. NIW for the current quarter was comprised of 96% monthly premium policies and 87% purchase originations. Persistency remained elevated at 80%, flat compared to the first quarter of 2026 and down from 82% in the second quarter of 2025. Approximately 12% of the mortgages in our portfolio had rates at least 50 basis points above June 2026’s average mortgage rate of 6.5%. Primary insurance in-force (IIF) was $274 billion, up approximately 1% from $272 billion in the first quarter of 2026 and up approximately 2% from $270 billion in the second quarter of 2025. Net premiums earned were $245 million, up 1% from $243 million in the first quarter of 2026 and flat from $245 million in the second quarter of 2025. Losses incurred for the second quarter of 2026 were $33 million and the loss ratio was 14%, compared to $37 million and 15%, respectively, in the first quarter of 2026 and $25 million and 10%, respectively, in the second quarter of 2025. The current quarter’s $37 million reserve release compares to a reserve release of $39 million, and $48 million in the first quarter of 2026 and second quarter of 2025, respectively. Operating expenses in the current quarter were $52 million, and the expense ratio was 21%. These metrics were impacted by approximately $1 million of one-time reorganization costs. This is compared to $49 million and 20%, respectively, in the first quarter of 2026 and $53 million and 22%, respectively, in the second quarter of 2025. The sequential increase in expenses was partially driven by these reorganization costs. Net investment income was $73 million, up from $71 million in the first quarter of 2026 and up from $66 million in the second quarter of 2025, driven by a higher portfolio book yield and higher average invested assets. Net investment gains (losses) in the quarter were $(2) million, as compared to $(6) million sequentially and $(7) million in the same period last year. The activity is primarily driven by the identification of assets that upon selling allow us to recoup losses through higher net investment income. Annualized return on equity for the second quarter of 2026 was 13.0% and annualized adjusted operating return on equity was 13.2%. This compares to the first quarter of 2026 results of 12.5% and 12.9%, respectively, and to second quarter of 2025 results of 13.0% and 13.4%, respectively. Capital and Liquidity We paid approximately $34 million, or $0.24 per share, in dividends in the second quarter. EMICO completed a dividend of $150 million in the second quarter that will primarily be used to support our ability to return capital to shareholders and bolster financial flexibility. Enact Holdings, Inc. held $236 million in cash and cash equivalents plus $425 million of invested assets as of June 30, 2026. Combined cash and invested assets is up $9 million from the prior quarter, primarily due to the dividend from EMICO partially offset by the return of capital and interest payment on debt. PMIERs sufficiency was 161% and $1.9 billion above the PMIERs requirements, compared to 162% and $1.9 billion and 165% and $2.0 billion above the PMIERs requirements respectively in the first quarter of 2026 and the second quarter of 2025. Recent Events We repurchased approximately 2.2 million shares at an average price of $42.58 for a total of approximately $93 million in the quarter. Additionally, through July 31, 2026, we repurchased 0.7 million shares at an average price of $45.93 for a total of $30 million. Approximately $345 million remains of our previously announced $500 million repurchase authorization. Today we announced the Company’s Board of Directors declared a $0.24 per common share, payable on September 17, 2026, to shareholders of record on August 20, 2026. We now anticipate total 2026 capital return to be in the range of $550 million to $600 million; the final amount and form of capital returned to shareholders will depend on business performance, market conditions, and regulatory approvals. Conference Call and Financial Supplement InformationThis press release, the second quarter 2026 financial supplement and earnings presentation are now posted on the Company’s website, https://ir.enactmi.com. Investors are encouraged to review these materials. Enact will discuss second quarter financial results in a conference call tomorrow, Thursday, August 6, 2026, at 8:00 a.m. (Eastern). Participants interested in joining the call’s live question and answer session are required to pre-register by clicking here to obtain your dial-in number and unique PIN. It is recommended to join at least 15 minutes in advance, although you may register ahead of the call and dial in at any time during the call. If you wish to join the call but do not plan to ask questions, a live webcast of the event will be available on our website, https://ir.enactmi.com/news-and-events/events. The webcast will also be archived on the Company’s website for one year. About EnactEnact (Nasdaq: ACT), operating principally through its wholly owned subsidiary Enact Mortgage Insurance Corporation since 1981, is a leading U.S. private mortgage insurance provider committed to helping more people achieve the dream of homeownership. Building on a deep understanding of lenders' businesses and a legacy of financial strength, we partner with lenders to bring best-in class service, leading underwriting expertise, and extensive risk and capital management to the mortgage process, helping to put more people in homes and keep them there. By empowering customers and their borrowers, Enact seeks to positively impact the lives of those in the communities in which it serves in a sustainable way. Enact is headquartered in Raleigh, North Carolina. Safe Harbor StatementThis communication contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may address, among other things, our expected financial and operational results, the related assumptions underlying our expected results, guidance concerning the future return of capital and the quotations of management. These forward-looking statements are distinguished by use of words such as “will,” “may,” “would,” “anticipate,” “expect,” “believe,” “designed,” “plan,” “predict,” “project,” “target,” “could,” “should,” or “intend,” the negative of these terms, and similar references to future periods. These views involve risks and uncertainties that are difficult to predict and, accordingly, our actual results may differ materially from the results discussed in our forward-looking statements. Our forward-looking statements contained herein speak only as of the date of this press release. Factors or events that we cannot predict, including risks related to an economic downturn or a recession in the United States and in other countries around the world; changes in political, business, regulatory, and economic conditions; changes in or to Fannie Mae and Freddie Mac (the “GSEs”), whether through Federal legislation, restructurings or a shift in business practices; failure to continue to meet the mortgage insurer eligibility requirements of the GSEs; competition for customers; lenders or investors seeking alternatives to private mortgage insurance; an increase in the number of loans insured through Federal government mortgage insurance programs, including those offered by the Federal Housing Administration; and other factors described in the risk factors contained in our most recent Annual Report on Form 10-K and other filings with the SEC, may cause our actual results to differ from those expressed in forward-looking statements. Although Enact believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, Enact can give no assurance that its expectations will be achieved and it undertakes no obligation to update publicly any forward-looking statements as a result of new information, future events, or otherwise, except as required by applicable law. GAAP/Non-GAAP Disclosure DiscussionThis communication includes the non-GAAP financial measures entitled “adjusted operating income (loss),” “adjusted operating income (loss) per share," and “adjusted operating return on equity." Enact Holdings, Inc. (the “Company”) defines adjusted operating income (loss) as net income (loss) excluding the after-tax effects of net investment gains (losses), restructuring costs and infrequent or unusual non-operating items, and gain (loss) on the extinguishment of debt. The Company excludes net investment gains (losses), gains (losses) on the extinguishment of debt and infrequent or unusual non-operating items because the Company does not consider them to be related to the operating performance of the Company and other activities. The recognition of realized investment gains or losses can vary significantly across periods as the activity is highly discretionary based on the timing of individual securities sales due to such factors as market opportunities or exposure management. Trends in the profitability of our fundamental operating activities can be more clearly identified without the fluctuations of these realized gains and losses. We do not view them to be indicative of our fundamental operating activities. Therefore, these items are excluded from our calculation of adjusted operating income. In addition, adjusted operating income (loss) per share is derived from adjusted operating income (loss) divided by shares outstanding. Adjusted operating return on equity is calculated as annualized adjusted operating income for the period indicated divided by the average of current period and prior periods’ ending total stockholders’ equity. While some of these items may be significant components of net income (loss) in accordance with U.S. GAAP, the Company believes that adjusted operating income (loss) and measures that are derived from or incorporate adjusted operating income (loss), including adjusted operating income (loss) per share on a basic and diluted basis and adjusted operating return on equity, are appropriate measures that are useful to investors because they identify the income (loss) attributable to the ongoing operations of the business. Management also uses adjusted operating income (loss) as a basis for determining awards and compensation for senior management and to evaluate performance on a basis comparable to that used by analysts. Adjusted operating income (loss) and adjusted operating income (loss) per share on a basic and diluted basis are not substitutes for net income (loss) available to Enact Holdings, Inc.’s common stockholders or net income (loss) available to Enact Holdings, Inc.’s common stockholders per share on a basic and diluted basis determined in accordance with U.S. GAAP. In addition, the Company’s definition of adjusted operating income (loss) may differ from the definitions used by other companies. Adjustments to reconcile net income (loss) available to Enact Holdings, Inc.’s common stockholders to adjusted operating income (loss) assume a 21% tax rate. The tables at the end of this press release provide a reconciliation of net income (loss) to adjusted operating income (loss) and U.S. GAAP return on equity to adjusted operating return on equity for the three months ended June 30, 2026 and 2025, as well as for the three months ended March 31, 2026. Exhibit A: Consolidated Statements of Income (amounts in thousands, except per share amounts) Exhibit B: Consolidated Balance Sheets (amounts in thousands, except per share amounts) This press release was published by a CLEAR® Verified individual. CONTACT: Investor Contact Jonathan Fleetwood [email protected] Media Contact Sarah Wentz [email protected]

Mortgage insurance provider Enact Holdings (NASDAQ:ACT) met Wall Street’s revenue expectations in Q2 CY2026, with sales up 1.6% year on year to $317.3 million. Its non-GAAP profit of $1.26 per share was 6.1% above analysts’ consensus estimates. Is now the time to buy Enact Holdings? Find out in our full research report. Net Premiums Earned: $244.7 million (flat year on year) Revenue: $317.3 million vs analyst estimates of $316.1 million (1.6% year-on-year growth, in line) Pre-tax Profit: $220 million (69.3% margin) Adjusted EPS: $1.26 vs analyst estimates of $1.19 (6.1% beat) Book Value per Share: $39.06 (11% year-on-year growth) Market Capitalization: $6.68 billion “Enact delivered another strong quarter supported by consistent execution, resilient credit performance and operating discipline,” said Rohit Gupta, President and CEO of Enact. Playing a critical role in helping first-time homebuyers access the housing market, Enact Holdings (NASDAQ:ACT) provides private mortgage insurance that enables lenders to offer home loans with lower down payments while protecting against borrower defaults. Big picture, insurers generate revenue from three key sources. The first is the core business of underwriting policies. The second source is income from investing the “float” (premiums collected upfront not yet paid out as claims) in assets such as fixed-income assets and equities. The third is fees from various sources such as policy administration, annuities, or other value-added services. Unfortunately, Enact Holdings’s 2.1% annualized revenue growth over the last five years was sluggish. This was below our standards and is a rough starting point for our analysis. We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. Enact Holdings’s annualized revenue growth of 2.6% over the last two years aligns with its five-year trend, suggesting its demand was consistently weak. Note: Quarters not shown were determined to be outliers because they were impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business. This quarter, Enact Holdings grew its revenue by 1.6% year on year, and its $317.3 million of revenue was in line with Wall Street’s estimates. Net premiums earned made up 81.4% of the company’s total revenue during the last five years, meaning Enact Holdings barely relies on non-insurance activities to drive its overall growth. Markets consistently prioritize net premiums earned growth over investment and fee income, recognizing its superior quality as a core indicator of the company’s underwriting success and market penetration. WHILE YOU’RE HERE: The Next Palantir? One satellite company captures images of every point on Earth. Every single day. The Pentagon wants it. Hedge funds are using it to beat earnings. You’ve probably never heard of it. This is what the early days of Palantir looked like before it became a giant. Same playbook. Different technology. If you missed Palantir, you need to see this. Claim The Stock Ticker for Free HERE. Insurance companies are balance sheet businesses, collecting premiums upfront and paying out claims over time. The float — premiums collected but not yet paid out — is invested, creating an asset base supported by a liability structure. Book value captures this dynamic by measuring: Assets (investment portfolio, cash, reinsurance recoverables) - liabilities (claim reserves, debt, future policy benefits) BVPS is essentially the residual value for shareholders. We therefore consider BVPS very important to track for insurers and a metric that sheds light on business quality. While other (and more commonly known) per-share metrics like EPS can sometimes be lumpy due to reserve releases or one-time items and can be managed or skewed while still following accounting rules, BVPS reflects long-term capital growth and is harder to manipulate. Enact Holdings’s BVPS grew at a solid 9.2% annual clip over the last five years. BVPS growth has also accelerated recently, growing by 12.4% annually over the last two years from $30.91 to $39.06 per share. It was good to see Enact Holdings meet analysts’ revenue expectations this quarter. Zooming out, we think this was a decent quarter. The stock remained flat at $47.82 immediately following the results. Is Enact Holdings an attractive investment opportunity right now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free.

Wall Street expects a year-over-year increase in earnings on lower revenues when Enact Holdings, Inc. (ACT) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on August 5, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This company is expected to post quarterly earnings of $1.20 per share in its upcoming report, which represents a year-over-year change of +4.4%. Revenues are expected to be $309.65 million, down 0.8% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 0.82% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Enact Holdings, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%. On the other hand, the stock currently carries a Zacks Rank of #4. So, this combination makes it difficult to conclusively predict that Enact Holdings will beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Enact Holdings would post earnings of $1.26 per share when it actually produced earnings of $1.21, delivering a surprise of -3.97%. Over the last four quarters, the company has beaten consensus EPS estimates two times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Enact Holdings doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Among the stocks in the Zacks Insurance - Multi line industry, Prudential (PRU), is soon expected to post earnings of $3.39 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of -5.3%. This quarter's revenue is expected to be $14.15 billion, up 4.8% from the year-ago quarter. Over the last 30 days, the consensus EPS estimate for Prudential has been revised 2.3% down to the current level. Nevertheless, the company now has an Earnings ESP of +0.45%, reflecting a higher Most Accurate Estimate. When combined with a Zacks Rank of #3 (Hold), this Earnings ESP indicates that Prudential will most likely beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Enact Holdings, Inc. (ACT) : Free Stock Analysis Report Prudential Financial, Inc. (PRU) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Track your investments for FREE with Simply Wall St, the portfolio command center trusted by over 7 million individual investors worldwide. Enact Holdings has delivered an 89.3% return over the past three years, and with the stock recently closing at US$46.52, the question is whether that run still lines up with what its current valuation signals suggest. Enact Holdings' 89.3% three year return highlights how strongly the stock has rewarded investors over a medium time frame, which raises the bar for what the current price implies about future progress. Expectations around the company’s ability to keep generating reliable earnings from its mortgage insurance activities can support the current share price. At the same time, any shift in investor confidence linked to broader Genworth Financial leadership changes may weigh on how much of a premium investors are willing to pay. With a valuation score of 4 out of 6, Enact Holdings screens as having some signs of being undervalued on the key checks, but it is a mixed picture rather than a straightforward bargain. For investors, the debate is whether Enact Holdings' strong three year share price performance is already pricing in its fundamentals, or if the current valuation still leaves room for further upside. Enact Holdings delivered 36.0% returns over the last year. See how this stacks up to the rest of the Diversified Financial industry. The P/E ratio is a reasonable fit for Enact Holdings because earnings are a key focus for mortgage insurers. Enact Holdings currently trades at about 9.6x earnings, which is below both the Diversified Financial industry average of roughly 15.9x and a peer group average of around 8.7x. That means the stock trades at a discount to the broader sector but at a modest premium to closer peers. A fair P/E ratio implied by the model is about 11.5x, based on Enact Holdings' profitability profile, size and risk characteristics. Compared with this level, the current multiple is lower. This points to a gap between where the stock trades and where the model suggests it might trade if sentiment and fundamentals were more closely aligned. Despite Genworth Financial's leadership transition creating an overhang for some investors, Enact Holdings still trades below this tailored P/E benchmark. On balance, Enact Holdings appears undervalued on its current P/E multiple relative to the fair ratio implied by its fundamentals and industry position. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for Enact Holdings act as the bridge from the P/E puzzle to a clearer picture of what assumptions on future growth, margins and earnings would need to hold for the stock to be worth materially more or less than today’s price. They sit on the company’s Community page. Each one frames Enact Holdings' estimated fair value as a thesis about the business that can be revisited over time rather than a one off snapshot. If you have a number driven view on whether Genworth Financial's leadership changes meaningfully shift Enact Holdings' risk and return profile, share a Narrative in the Simply Wall St community to set out your case. It is a chance to put clear assumptions on the table and see how they stack up as new results and news arrive. Do you think there's more to the story for Enact Holdings? Head over to our Community to see what others are saying! For Enact Holdings, the current P/E based view points to the stock looking undervalued relative to what its earnings profile and tailored fair multiple suggest, but the broader valuation checks are mixed rather than emphatically cheap. That leaves the key question whether the current discount is compensation for risks around mortgage insurance earnings quality and Genworth Financial related leadership changes, or if it reflects overly cautious sentiment. From here, the crux of the bull versus bear debate is whether earnings stay resilient enough for the market to close some of that gap in the multiple over time. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include ACT. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

As the Q1 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the property & casualty insurance industry, including Enact Holdings (NASDAQ:ACT) and its peers. Property & Casualty (P&C) insurers protect individuals and businesses against financial loss from damage to property or from legal liability. This is a cyclical industry, and the sector benefits when there is 'hard market', characterized by strong premium rate increases that outpace loss and cost inflation, resulting in robust underwriting margins. The opposite is true in a 'soft market'. Interest rates also matter, as they determine the yields earned on fixed-income portfolios. On the other hand, P&C insurers face a major secular headwind from the increasing frequency and severity of catastrophe losses due to climate change. Furthermore, the liability side of the business is pressured by 'social inflation'—the trend of rising litigation costs and larger jury awards. The 32 property & casualty insurance stocks we track reported a mixed Q1. As a group, revenues beat analysts’ consensus estimates by 1.9%. In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results. Playing a critical role in helping first-time homebuyers access the housing market, Enact Holdings (NASDAQ:ACT) provides private mortgage insurance that enables lenders to offer home loans with lower down payments while protecting against borrower defaults. Enact Holdings reported revenues of $317.9 million, up 2.5% year on year. This print exceeded analysts’ expectations by 1.3%. Despite the top-line beat, it was still a mixed quarter for the company. “Enact delivered a strong start to 2026, reflecting disciplined execution, resilient credit performance, and our continued focus on long-term value creation,” said Rohit Gupta, President and CEO of Enact. The market seems disappointed with the results as the stock is down 1.6% since reporting and currently trades at $41.64. Read our full report on Enact Holdings here, it’s free. Founded in 1961 and maintaining a network of over 6,300 independent agents across the country, Mercury General (NYSE:MCY) is an insurance company that primarily sells automobile insurance policies through independent agents in 11 states, with a strong focus on California. Mercury General reported revenues of $1.54 billion, up 10.5% year on year, outperforming analysts’ expectations by 5.4%. The business had an incredible quarter with a beat of analysts’ EPS and net premiums earned estimates. The market seems happy with the results as the stock is up 5.3% since reporting. It currently trades at $102.59. Is now the time to buy Mercury General? Access our full analysis of the earnings results here, it’s free. Issuing more title insurance policies than any other company in the United States, Fidelity National Financial (NYSE:FNF) provides title insurance and escrow services for real estate transactions while also offering annuities and life insurance through its F&G subsidiary. Fidelity National Financial reported revenues of $3.23 billion, up 18.2% year on year, falling short of analysts’ expectations by 10.7%. It was a disappointing quarter as it posted a significant miss of analysts’ EPS estimates. Fidelity National Financial delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 8.9% since the results and currently trades at $46.71. Read our full analysis of Fidelity National Financial’s results here. Founded during the housing boom of 1977 and weathering multiple real estate cycles since, Radian Group (NYSE:RDN) provides mortgage insurance and real estate services, helping lenders manage risk and homebuyers achieve affordable homeownership. Radian Group reported revenues of $475.2 million, up 48.9% year on year. This number beat analysts’ expectations by 12.8%. Overall, it was a strong quarter for the company. The stock is down 2.9% since reporting and currently trades at $34.68. Read our full, actionable report on Radian Group here, it’s free. Founded in 1893 during America's westward expansion when property records were often disputed, Stewart Information Services (NYSE:STC) provides title insurance and real estate services, helping homebuyers, sellers, and lenders verify property ownership and protect against title defects. Stewart Information Services reported revenues of $781.3 million, up 27.7% year on year. This result surpassed analysts’ expectations by 4.6%. It was an incredible quarter as it also logged a beat of analysts’ EPS estimates. The stock is down 2.7% since reporting and currently trades at $66.49. Read our full, actionable report on Stewart Information Services here, it’s free. Late in 2025 into early 2026, there was hand-wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure? These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability. Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. StockStory’s analyst team — all seasoned professional investors — uses quantitative analysis and automation to deliver market-beating insights faster and with higher quality.