- Enact Holdings: Solid Performance But Now Fully Valued
May 9, 2026 · seekingalpha.com
Enact Holdings has maintained strong total returns versus peers and the broader market despite low home sale activity. Q1 2026 revenue reached $312.1 million, with 78% from premiums and a notable year-over-year increase in investment income. Net income for the quarter was $167.8 million, with EPS rising year-over-year due to significant share buybacks.
- Enact (ACT) Q1 2026 Earnings Transcript
May 6, 2026
Image source: The Motley Fool.
Date
Wednesday, May 6, 2026 at 8 a.m. ET
Call participants
President and Chief Executive Officer — Rohit Gupta Chief Financial Officer — Hardin Dean Mitchell
Need a quote from a Motley Fool analyst? Email pr@fool.com
Full Conference Call Transcript
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 will 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 filings on our website.
With that, I'll turn the call over to Rohit.
Rohit Gupta: Thank you, Daniel. Good morning, everyone. Enact delivered a strong start to 2026 amid a volatile rate environment. This performance was underpinned by the disciplined execution of our strategy, resilient credit performance and our clear focus on long-term value creation. For the first quarter, we reported adjusted operating income of $172 million or $1.21 per diluted share. Adjusted return on equity was 13%, and we generated strong new insurance written of $13 billion, resulting in total insurance in force of $272 billion. The housing market remained dynamic with mortgage rate volatility impacting mortgage activity in the quarter. Overall, purchase application volumes followed seasonal trends, while lower rates early in the quarter supported elevated refinance applications.
Story Continues
Additionally, recent loan vintages with lower embedded equity have contributed to increased mortgage insurance penetration in refinance activity. Conversely, as rates increased during March and April, the refinance trend slowed, but we have seen the impact of the spring selling season on purchase applications. Against this backdrop, persistency remained elevated at 80% in the first quarter. Additionally, across our portfolio, 58% of loans in our book have rates below 6%, providing continued support for elevated persistency. While the macro environment remains uncertain and inflationary pressures accelerated as gas prices have risen, the consumer continues to show resilience. Overall, labor market conditions remain supportive and credit performance remains healthy.
Importantly, we are not seeing any meaningful impact within our credit portfolio and overall credit trends remain in line with our expectations. We will continue to monitor these dynamics closely and believe that the underlying credit fundamentals of our business remain strong. In fact, our Insurance-in-Force portfolio remains resilient with a risk-weighted average FICO score of 746, risk-weighted average loan-to-value ratio of 93% and layered risk was 1.2% of risk in-force. Pricing remained constructive in the quarter, and our dynamic risk-adjusted pricing engine, Rate360, is enabling us to prudently target the right risk for the right price at a granular level with changing market conditions. Turning to losses.
Total delinquencies were down 1% sequentially, with new delinquencies down 1% and cures up 13%, both consistent with seasonal trends. Our strong cure performance was driven by favorable credit trends and our effective loss mitigation efforts. This drove a net reserve release of $39 million in the quarter, and our resulting loss ratio was 15%. Credit performance continues to be strong, and we are well reserved for a range of scenarios. Turning to expenses. We delivered another quarter of prudent expense management, putting us on track to achieve our 2026 expense guidance range of $215 million to $220 million, excluding reorganizational costs.
We continue to execute against our capital allocation priorities, including maintaining a strong and resilient balance sheet to support existing policyholders, investing in our business to drive organic growth and operating efficiencies, funding attractive new business opportunities and returning excess capital to shareholders. At the end of the quarter, our PMIERs sufficiency ratio was 162%, providing significant financial flexibility and our credit and investment portfolios are in excellent shape. Our strong capital position is further reinforced by our CRT program and the backing of our undrawn credit facility. We continue to execute on our growth and diversification efforts. Our growth efforts in Enact Re continued to deliver consistent and strong performance in the first quarter, generating attractive risk-adjusted returns.
Enact Re remains a long-term growth and diversification opportunity that is both capital and expense efficient. Our strong performance supported robust capital returns to our shareholders. During the first quarter, we returned $123 million through share repurchases and dividends and are pleased to announce that our Board of Directors approved a 14% increase to our dividend from $0.21 to $0.24 per share, which also marks the fourth year that we have increased our quarterly dividend payment. We continue to expect to deliver capital returns in 2026 of approximately $500 million. Turning to recent housing policy announcements. We applaud the FHFA and the GSEs for their thoughtful approach to credit modernization through the announced limited rollout of VantageScore 4.0.
Enact supports ongoing efforts to modernize credit evaluation in ways that responsibly expand access to sustainable homeownership. We remain committed to supporting our customers and to staying operationally aligned as the GSEs advance this initiative and provide additional information. Overall, we have had a great start in 2026 that positions Enact for long-term success. I want to thank our entire team for their relentless commitment and outstanding performance. With that, I will now hand the call over to Dean.
Hardin Mitchell: Thanks, Rohit, and good morning, everyone. We began 2026 with another quarter of strong results. Adjusted operating income was $172 million or $1.21 per diluted share compared to $1.10 per diluted share in the same period last year and $1.23 per diluted share in the fourth quarter of 2025. Adjusted operating return on equity was 12.9%. 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 $13 billion in the first quarter, down 11% sequentially and up 30% year-over-year as rate trends and seasonal dynamics played out across the period.
Persistency was 80% in the quarter, flat sequentially and down 4 points year-over-year on lower prevailing mortgage rates. While rates were volatile over the quarter, only 21% of mortgages in our portfolio have rates at least 50 basis points above March's average of 6.2%, providing support for continued elevated persistency. Primary Insurance-in-Force was $272 billion in the quarter, down $1 billion from the fourth quarter of 2025 and up $4 billion or approximately 2% year-over-year. Total net premiums earned were $243 million, down $3 million sequentially and down $2 million year-over-year, primarily driven by higher ceded premiums. Our base premium rate of 39.4 basis points was down 0.2 basis points sequentially, in line with our expectations.
As a reminder, our base premium rate is impacted by several factors and tends to modestly fluctuate from quarter-to-quarter. Our net earned premium rate was 34.3 basis points, down 0.5 basis points sequentially, driven by higher ceded premiums. Investment income in the first quarter was $71 million, up $2 million or 3% sequentially and up $8 million or 12% year-over-year. Our new money investment yield of 5% contributed to an increase in the average portfolio book yield of 4.5% 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 overall portfolio. New delinquencies decreased sequentially to 13,600 in the quarter from 13,700 in the fourth quarter of 2025, in line with expected seasonal trends. Our new delinquency rate for the quarter remained consistent with pre-pandemic levels at 1.5%, flat from the fourth quarter of 2025 and an increase of 20 basis points from the first quarter of 2025. Additionally, our cure rate increased sequentially 3 percentage points to 54% and remains well above pre-pandemic levels. We maintained our claim rate on new delinquencies at 8%. Total delinquencies in the first quarter decreased sequentially to 24,700 from 24,900 and the delinquency rate was flat sequentially at 2.6%.
Losses in the first quarter of 2026 were $37 million, and the loss ratio was 15% compared to $18 million and 7%, respectively, in the fourth quarter of 2025 and $31 million and 12% in the first quarter of 2025. The current quarter reserve release of $39 million from favorable cure performance and loss mitigation activities compares to a net reserve release of $60 million, inclusive of our claim rate reduction from 9% to 8% in the fourth quarter of 2025 and $47 million in the first quarter of 2025.
Operating expenses in the first quarter of 2026 were $49 million and the expense ratio was 20% compared to $59 million and 24%, respectively, in the fourth quarter of 2025 and $53 million and 21% in the first quarter of 2025. As a reminder, our expenses are typically higher in the back half of the year. For full year 2026, we continue to anticipate operating expenses in the range of $215 million to $220 million, excluding any reorganization costs as we prudently manage our expense base balancing our ongoing focus on driving further efficiencies across the business with continuing to invest in our growth initiatives.
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 162% 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 first quarter. Turning now to capital allocation. During the quarter, we paid out $30 million or $0.21 per share through our quarterly dividend and bought back 2.3 million shares at an average price of $40.66 for $93 million. Through April 30, we have repurchased an additional 0.7 million shares for $30 million as well.
Yesterday, we announced a 14% increase to our quarterly dividend from $0.21 per share to $0.24 per share payable June 18, 2026. The increased dividend is consistent with our commitment to returning capital to shareholders and reflects the continued strength of our financial position and confidence in our business. As Rohit mentioned earlier, our 2026 total capital return guidance remains unchanged at approximately $500 million. As in the past, the final amount and form of capital returned to shareholders will ultimately depend on business performance, market conditions and regulatory approvals.
Overall, we are pleased with our start to 2026 and believe we remain well positioned to prudently manage risk, maintain a strong balance sheet and deliver solid returns for our shareholders. With that, let me turn the call back to Rohit.
Rohit Gupta: Thanks, Dean. Our mission to responsibly help more people achieve the dream of homeownership guides everything we do. Looking ahead, we remain encouraged by the long-term fundamentals in the housing market and are confident that Enact's strategy and durable business model position us to generate compelling performance and attractive returns while continuing to navigate a dynamic operating environment. We appreciate your interest in Enact and your continued support. Operator, we are now ready for Q&A.
Operator:[Operator Instructions] Our first question comes from the line of Bose George with KBW.
Bose George: So just wanted to start on credit. Credit looks solid. I'm just curious if there are markets where you're keeping an eye on in terms of home prices and have you had to adjust anything in terms of pricing or your exposures based on home price expectations?
Hardin Mitchell: Yes, Bose, this is Dean. Thanks for the question. I'd agree with your general assessment at the macro level, we think overall credit performance remains very strong, both in terms of delinquency development and cure activity. And as you would expect, we continue to assess performance across borrower loan attributes. We really haven't seen any material deviation from our pricing expectations when we set price and ultimately onboard risk. That doesn't mean that there aren't differentiations across different attributes. And certainly, your question about geographies is on point. In terms of geography, there are areas where housing supply has increased and home prices have moderated or even declined in some parts of the country.
We've called out the Sunbelt and particularly markets like Florida and Texas as areas where this dynamic is going on. There's other geographies, obviously, where housing supply remains low and home prices continue to appreciate. The Northeast corridor is a good example of that. I think in terms of how we handle that, just as a reminder, inside our proprietary pricing engine, Rate360, we have the ability to price across over 300 metropolitan statistical areas, and we price based on our view of the market's future home prices.
So what that means is we charge incremental premium when we feel markets are more likely to pull back for the higher risk of the potential for claim, and that's really aligned with our principle of the right risk at the right price. So the bottom line, from my perspective, Bose, is while there are differences in home prices across geographies and they do affect performance. We really haven't seen performance differ from our pricing expectations in any material market. And again, we still believe we've onboarded the right risk at the right price across geographies based on performance to date.
Bose George: Okay. Great. And then actually switching over to the VantageScore rollout. Actually, a couple of things there. One, since PMIERs incorporates FICO into setting your capital standards, does PMIERs have to be revisited as part of this whole process as well? And then how do you -- when you're sort of providing mortgage insurance, make the adjustments since, I guess, FICO is kind of the key driver for you guys as well, I would think.
Rohit Gupta: This is Rohit. So thank you for the question. Absolutely, as you mentioned, that PMIERs on classic FICO is the foundation of how we think about one of the pricing regimes that governs our returns. So just given that fact, as we think about Vantage, I first want to say that, as I said in my prepared remarks, we are fully supportive of initiatives that qualify more home-ready consumers to prudently get into homes. And from an implementation perspective, we have been working very constructively with the FHFA and the GSEs to be operationally ready and we stand ready today to operationally implement VantageScore 4.0.
As we think about the next step, I think it's items like PMIERs where we just need further guidance, and we are waiting for GSEs to provide that guidance and look forward to actually serving the market as that becomes available. And our broader mindset, as we have talked about our risk appetite and the way we price is to always have this principle of charging the right price for the right risk at a very granular level.
So aligned with that intent, as we get PMIERs for VantageScore 4.0, we would basically take that PMIERs guidance and incorporate that into our return calculation for loan cohorts across our Rate360 engine, and that would generate pricing for a VantageScore loan versus a classic FICO loan. And down the road, as FICO 10 gets rolled out, our mindset would be the same. So essentially, the intent here is to support these initiatives, but at the same time, charge the right price for the right risk across any score that is coming to us from lenders.
Operator: Our next question comes from the line of Mihir Bhatia with Bank of America.
Mihir Bhatia: I wanted to start with just on credit and the delinquency rate expectations going forward. Just any comments on that, just how you expect delinquency rate to trend? Is there upward pressure from portfolio seasoning, et cetera? So just things we should be keeping in mind as we build our models and think about the credit outlook?
Hardin Mitchell: Yes. Mihir, it's Dean again. Thanks for the question. Very good question. I think in terms of delinquency rate, it's a little bit hard to project as there's a lot that goes into that. It's going to be dependent upon, of course, the macroeconomic environment and changes in its potential trajectory would have a meaningful impact on delq rate. But it also is impacted by things like NIW levels. So to the extent we write more new insurance written, that could suppress what would otherwise be the delq rate. And then, of course, it's impacted by claim timing. And as we've seen this quarter and we've seen in prior quarters, that's been de minimis to date.
I think that makes it difficult to predict with precision. At the same time and trying to be responsive to your question, I think given some of the aging that we're seeing in the newer purchase heavy books, those books having slightly higher risk attributes, LTV, DTI and a little bit lower FICO. I think it's reasonable to expect the delinquency rate could tick up from the Q1 levels. Again, got to be caveated with all things being equal, macroeconomic, NIW claims and et cetera. But I think it could tick up from the 2.6% that you see in the first quarter.
Mihir Bhatia: Got it. And then just if you talk about the premium yield expectations for the rest of the year? Just any call-outs we should keep in mind even quarter-over-quarter. And then maybe just also use the opportunity to talk about competitive intensity that you're seeing.
Hardin Mitchell: Yes. So I'll start that off, Mihir, on base premium rate and turn it over to Rohit on the competitive environment. So as we've talked about in prior quarters, base premium rate is affected by a lot of different variables NIW levels, NIW price. This quarter, very importantly, the mix of purchase and refi, which obviously impacts NIW price and other things such as lapse, where that lapse is coming from and things that you might not even consider in the calculation of base premium rate like delinquency premium accruals.
I think at the end of the day, we've guided towards a flattish base premium rate over the quarter, acknowledging that -- over the full year, rather, acknowledging that quarter-to-quarter, you could see some volatility. Some of the volatility that you saw on the sequential quarter basis is what I mentioned, the refi purchase mix. We had an increase in refi mix this quarter. I think if we had normalized that to the prior period, you would have seen that [ 2/10 ] of a basis point decline be something closer to [ 1/10 ] of a basis point decline.
So there is going to be quarter-to-quarter volatility, but I think we're still very comfortable with the guidance of flattish base premium rate over the course of the full year 2026.
Rohit Gupta: Yes, Mihir. The second part of your question in terms of market dynamics, I would say, as I said in my prepared remarks, we found pricing to be attractive in the quarter. We believe the market remains constructive. And we like the NIW we wrote almost $13 billion of NIW we wrote in the first quarter and the returns we are getting on that NIW. I would say that we continue to price for some uncertainty, economic uncertainty in the market in our pricing.
As Dean said in his previous response, when it comes to geographical markets or some risk attributes, we continue to make sure that we are getting adequately paid for the conditional view that we have down to each geographical area. So I hope that provides you some kind of construct and color on the market.
Mihir Bhatia: No, that's helpful. And then just the last question, just I wanted to touch on Washington, specifically on the GSEs. Are you seeing any shifts in GSE behavior? I know you talked about Vantage a little bit, but just in general, any shifts in the housing credit GSE behavior that could affect MI eligibility or volumes? Just anything we should be keeping an eye on?
Rohit Gupta: There, I would say at a macro level, nothing that would actually think of us changing the MI volume or MI penetration. I would say, while the market size numbers are still not finalized, we actually believe that there was a little bit of an uptick in MI penetration in Q1 -- in the Q1 NIW, so [ asserted ] loans, and that was driven by the GSE execution in Q1 being better than FHA execution and that benefiting the MI industry also. But I would say, outside of that, from a policy perspective, GSE risk appetite continues to stay relatively stable.
GSEs continue to look at loan performance, credit characteristics and continue to make kind of minor adjustments to their appetite as they always do, but nothing beyond that in terms of any meaningful changes to report.
Operator: Our next question comes from the line of Rick Shane from JPMorgan.
Richard Shane: Look, we've had, in the past couple of quarters, a few windows of lower rates. And obviously, at some point, we all expect rates to fall, though that seems to be getting pushed out. I'm curious what insights you can gather from those windows in terms of what we should anticipate for activity. Obviously, we see refis pick up. But I'm curious how that impacts the risk within the portfolio? Are there certain cohorts either that are riskier or less risky that are refinancing at faster rates during those windows? And what types of purchase loans are you seeing? Are they in sort of your risk spectrum?
I'm curious to think about what we might see going forward when we get into a real lower rate environment.
Rohit Gupta: Sure, Rick. This is Rohit. I'll get started and then Dean will chime in, in terms of adding color. So I would say a very good point in terms of we have had a few refi windows, as you called it, in the market and those refi windows, although they were short, they've given us insights into how borrower behavior and lender behavior has worked in the last 6, 7 months. I would say these windows have primarily been in time frames when the purchase market just seasonally is not expected to be super large because that's not when people are planning to buy homes. So we have seen, obviously, more reaction from the refinance part of the market.
And what I would kind of share with you is the activity has been very much in line with expectations that the books that were more in the money during those windows, so you would expect post 2022 midyear books to be more in the money when rates fall because July 2022 onwards, we've had higher rates. So consumers who originated their loans in that high rate environment are more likely to refinance when the rates come down to closer to that 6% level.
So that's exactly what we have seen both in Q4 and in Q1 that when rates come to that level, we basically see consumers -- lenders and consumers take advantage of those short refi opportunities to get into a better economic condition. And I would say the impact on lapse has been on those books. So '23 book, 2024 book have been the ones that actually see more lapse. From a risk attribute perspective, as Dean mentioned earlier, those books do have more purchase activity originally with slightly higher LTVs, slightly moderate FICOs and slightly higher debt to income. So as refi activity happens, obviously, that composition changes.
One upside that we see in this business cycle is normally, our refinance penetration in the market is about 4% of every 100 loans that go in the market. Given the fact that some of these books have lower embedded equity, when consumers are refinancing, a good number of times, those consumers are not below 80 LTV. So as a result, they end up refinancing back into MI. So we have seen MI penetration go from that 4% number closer to 6% to 7%, and we see a boost in MI market even coming through the refinance portion of the market.
So that's basically a little bit of color on the refinance side, and I'll quickly pivot to the purchase side. I would simply say that when rates drop during kind of not purchasing season, we see less activity because it's not that consumers can suddenly go and buy a home because rates drop for a 15-day window. So refinance loans can take advantage of that, purchase loans can't. If rates were to drop in the purchase selling season, we do believe that there is a significant amount of pent-up demand on the sidelines that you could see those consumers come to market and that would benefit homeownership rates and that would benefit MI market.
But let me pause there and just ask Dean to chime in on anything I left out.
Hardin Mitchell: Yes. Rohit, that was -- I agree with everything you said. That was really comprehensive. I don't have much to add to that.
Richard Shane: Rohit, it was a great answer. I really do appreciate it. If I can ask a quick follow-up. When you think about that refi activity that we've seen in those windows, do you think it over indexes, under indexes or sort of pari-passu indexes to the layered risk within the portfolio?
Rohit Gupta: Yes. So just naturally, what I would expect, I don't have any specific numbers from the last 6 months, and I can get that to you off-line. But my general take would be, Rick, consumers who are in better credit position when rates are lower are more likely to refinance than consumers who are not. I think that's just kind of how the market is structured.
So if you started off as a consumer who was at 720 FICO, but over the last 6 months or over the last 2 years, your FICO has risen to 780 because you manage your credit well, then you are just going to get a better execution when you come to refinance in the market versus if you started with 720 and you drifted down to 640 because when you come back to market, you're going to see an impact of loan level price adjustments in your North rate, so you're less likely to refinance. So I would say it over indexes on lower risk attributes in terms of possibility of refinancing a loan.
Operator: Our next question comes from the line of Brian Meredith of UBS.
Ameeta Lobo Nelson: It's actually Marissa Lobo on for Brian today. With tariffs creating some uncertainty in the labor market, what assumptions are embedded in your reserves around unemployment, HPA and cure rates? And have any of those assumptions changed since the Q4 call?
Hardin Mitchell: Marissa, it's Dean. I think our actuarial methods really aren't econometrically driven. So I can't give you expressed macroeconomic assumptions embedded in our reserving, more traditional reserving techniques, chain ladder, things along those lines looking at performance trends through time. What I can say is from a claim rate perspective, we maintained our claim rate at 8%. So we still continue to believe that credit performance is holding up well and that a consistent number, 8 out of every 100 new delinquencies will roll to claim. Obviously, commensurate with the reserve release that we took, $39 million this quarter, we continue to see on prior period reserves cure performance above our expectations.
And as a result, we're -- we have in the past and we did this quarter released a certain portion of reserves on prior period delinquencies given that elevated cure activity. But really, as it relates to the assumptions of booking reserves on new delinquencies, we didn't make any changes this quarter.
Rohit Gupta: Yes. And Marissa, just to add a little bit of color to Dean's point, when it comes to a loan already being delinquent, unemployment level at a macro level or at a geographical level has less impact on that loan. So the assumptions that you did mention are incorporated in our conditional pricing view. So we are incorporating an assumption on unemployment rate, home price appreciation into our pricing that we are charging on net new loans for that month, for that week. And that's how we think about implementing a conditional view into our business.
Ameeta Lobo Nelson: Got it. That's very helpful. And on Rate360, it's clearly been a differentiator. Can you give us a sense of how it's influencing your NIW mix, pricing outcomes and what you plan to invest in for the next generation?
Rohit Gupta: Yes. Very good question, Marissa. So as I've said in the past, Rate360 continues to iterate in terms of our innovation, our level of analytics and always kind of this desire to find the next new attribute that can actually give us more predictive power. So we've been investing in that tool for possibly last 7 years or so. And we've gone through 4 or 5 versions of the pricing engine by this time.
I think in terms of talking about the capabilities and what it is capable of delivering in the market, just given the commercial nature of our pricing and the fact that we operate in an opaque market, I wouldn't want to talk about any specifics, but I would say that we continue to invest in that tool, continue to invest in the modeling and the research that it takes to derive what basically causes a consumer or loan to go delinquent versus another loan not to go delinquent. So all of those kind of drivers and outcomes are where we continue to invest, and we are very happy with where our journey has been and where it's going.
Moving forward, we continue to incorporate all kinds of technologies, including machine learning and artificial intelligence to make sure that those are guiding the pricing we deploy in the market every single day. And I think from a risk principle perspective, only 2 things I'll mention is the right price for the right risk. That is always our intent that down to the granularity of every single loan, we can charge the right price and then making sure that when it comes to layered risk, we are willing to take single attribute risk.
But when it comes to layered risk, we try to make sure that we are pricing in the loans where we can expect the stress scenario, but not the loans where basically the multiple levels of risk could be -- make the loan performance unpredictable.
Operator: I'm showing no further questions at this time. I would now like to turn the call back to Rohit Gupta for closing remarks.
Rohit Gupta: Thank you, Rory, and thank you, everyone. We appreciate your interest in Enact, and we look forward to seeing many of you in New York at BTIG's Housing Ecosystem Conference on May 7 or virtually at KBW's Real Estate Finance and Technology Conference on May 19. Thank you.
Operator: Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.
Should you buy stock in Enact right now?
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.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $473,985!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,204,650!*
Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 203% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of May 6, 2026.
This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. 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) Q1 2026 Earnings Transcript was originally published by The Motley Fool
View Comments
- Enact Holdings, Inc. (ACT) Q1 2026 Earnings Call Transcript
May 6, 2026 · seekingalpha.com
Enact Holdings, Inc. (ACT) Q1 2026 Earnings Call Transcript
- Enact Holdings raises quarterly dividend by 14% to $0.24/share
May 6, 2026
* Enact Holdings (ACT [https://seekingalpha.com/symbol/ACT]) declares $0.24/share quarterly dividend [https://seekingalpha.com/pr/20501916-enact-announces-14-percent-increase-to-quarterly-dividend], 14% increase from prior dividend of $0.21.
* Forward yield [https://seekingalpha.com/symbol/ACT/dividends/yield?source=news_bullet] 2.27%
* Payable June 18; for shareholders of record May 28; ex-div May 28.
* See ACT Dividend Scorecard, Yield Chart, & Dividend Growth. [https://seekingalpha.com/symbol/ACT/dividends?source=news_bullet]
MORE ON ENACT HOLDINGS
* Enact Holdings Non-GAAP EPS of $1.21 [https://seekingalpha.com/news/4586373-enact-holdings-non-gaap-eps-of-1_21]
* Mid-cap stocks with highest dividend growth grade [https://seekingalpha.com/news/4548484-mid-cap-stocks-with-highest-dividend-growth-grade]
* Seeking Alpha’s Quant Rating on Enact Holdings [https://seekingalpha.com/symbol/ACT/ratings/quant-ratings]
* Historical earnings data for Enact Holdings [https://seekingalpha.com/symbol/ACT/earnings]
* Dividend scorecard for Enact Holdings [https://seekingalpha.com/symbol/ACT/dividends/scorecard]
- Enact Holdings, Inc. (ACT) Misses Q1 Earnings Estimates
May 5, 2026
Enact Holdings, Inc. (ACT) came out with quarterly earnings of $1.21 per share, missing the Zacks Consensus Estimate of $1.26 per share. This compares to earnings of $1.1 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -3.59%. A quarter ago, it was expected that this company would post earnings of $1.09 per share when it actually produced earnings of $1.23, delivering a surprise of +12.84%.
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 $317.89 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 1.80%. This compares to year-ago revenues of $310.02 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 7% since the beginning of the year versus the S&P 500's gain of 5.2%.
What's Next for Enact Holdings?
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 favorable. 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 #2 (Buy) for the stock. So, the shares are expected to outperform 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 $1.19 on $313.32 million in revenues for the coming quarter and $4.98 on $1.26 billion in revenues for the current fiscal year.
Story Continues
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 39% 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.
Another stock from the same industry, MetLife (MET), has yet to report results for the quarter ended March 2026. The results are expected to be released on May 6.
This insurer is expected to post quarterly earnings of $2.25 per share in its upcoming report, which represents a year-over-year change of +14.8%. The consensus EPS estimate for the quarter has been revised 1.1% lower over the last 30 days to the current level.
MetLife's revenues are expected to be $19.22 billion, up 2.1% 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
MetLife, Inc. (MET) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
View Comments
- Enact Holdings (NASDAQ:ACT) Reports Sales Below Analyst Estimates In Q1 CY2026 Earnings
May 5, 2026
Mortgage insurance provider Enact Holdings (NASDAQ:ACT) missed Wall Street’s revenue expectations in Q1 CY2026, with sales flat year on year at $312.1 million. Its non-GAAP profit of $1.21 per share was 1.2% above analysts’ consensus estimates.
Is now the time to buy Enact Holdings? Find out in our full research report.
Enact Holdings (ACT) Q1 CY2026 Highlights:
Net Premiums Earned: $242.9 million (flat year on year) Revenue: $312.1 million vs analyst estimates of $313.7 million (flat year on year, 0.5% miss) Pre-tax Profit: $213.4 million (68.4% margin) Adjusted EPS: $1.21 vs analyst estimates of $1.20 (1.2% beat) Book Value per Share: $38.09 (12.2% year-on-year growth) Market Capitalization: $5.99 billion
“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.
Company Overview
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.
Revenue Growth
Insurance companies earn revenue from three primary sources: 1) The core insurance business itself, often called underwriting and represented in the income statement as premiums 2) Income from investing the “float” (premiums collected upfront not yet paid out as claims) in assets such as fixed-income assets and equities 3) Fees from various sources such as policy administration, annuities, or other value-added services. Over the last five years, Enact Holdings grew its revenue at a sluggish 1.9% compounded annual growth rate. This was below our standards and is a rough starting point for our analysis.Enact Holdings Quarterly Revenue
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 2.9% over the last two years aligns with its five-year trend, suggesting its demand was consistently weak.Enact Holdings Year-On-Year Revenue Growth
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, Enact Holdings’s $312.1 million of revenue was flat year on year, falling short of Wall Street’s estimates.
Net premiums earned made up 82% 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.
Story Continues
Enact Holdings Quarterly Net Premiums Earned as % of Revenue
Our experience and research show the market cares primarily about an insurer’s net premiums earned growth as investment and fee income are considered more susceptible to market volatility and economic cycles.
ONE MORE THING: 3 Hidden Platforms Growing 3X Faster than Amazon, Google, and PayPal. Amazon, Google, and Meta all followed the same playbook: Dominate an ignored market. Build an unbeatable moat. Scale until you’re unstoppable.
These three platforms are running that exact playbook right now. The early investors in Amazon made fortunes. The early investors in these could do the same. Get All 3 Stocks Here for FREE.
Book Value Per Share (BVPS)
Insurers are balance sheet businesses, collecting premiums upfront and paying out claims over time. Premiums collected but not yet paid out, often referred to as the float, are invested and create an asset base supported by a liability structure. Book value per share (BVPS) captures this dynamic by measuring these assets (investment portfolio, cash, reinsurance recoverables) less 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 because it reflects long-term capital growth and is harder to manipulate than more commonly-used metrics like EPS.
Enact Holdings’s BVPS grew at a solid 9.5% annual clip over the last five years. BVPS growth has also accelerated recently, growing by 12.9% annually over the last two years from $29.89 to $38.09 per share.Enact Holdings Quarterly Book Value per Share
Key Takeaways from Enact Holdings’s Q1 Results
We struggled to find many positives in these results. Its EPS slightly beat and its revenue fell slightly short of Wall Street’s estimates. Overall, this quarter could have been better. The stock remained flat at $42.33 immediately after reporting.
Big picture, is Enact Holdings a buy here and now? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it’s free.
View Comments
- Enact Reports First Quarter 2026 Results
May 5, 2026
Enact Holdings, Inc.
GAAP Net Income of$168 million, or $1.18 per diluted share
Adjusted Operating Income of $172 million, or $1.21 per diluted share
Return on Equity of 12.5% and Adjusted Operating Return on Equity of 12.9%
Primary Insurance in-force of $272 billion, a 2% year-over-year increase
PMIERs Sufficiency of 162% or approximately $1.9 billion
Book Value Per Share of $38.09 and Book Value Per Share excluding AOCI of $38.68
RALEIGH, N.C., May 05, 2026 (GLOBE NEWSWIRE) -- Enact Holdings, Inc. (Nasdaq: ACT) today announced financial results for the first quarter of 2026.
“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. “Affordability and mortgage rate volatility continued to shape housing activity, and against this backdrop we continued to demonstrate the resiliency of our model, prudently growing new insurance written while maintaining our focus on expense and risk management. As we look ahead, our strong balance sheet, differentiated capabilities and ongoing commitment to innovation position us to succeed in this dynamic market environment as we help people responsibly achieve homeownership.”
Key Financial Highlights
(In millions, except per share data or otherwise noted) 1Q26 4Q25 1Q25 Net Income (loss) $168 $177 $166 Diluted Net Income (loss) per share $1.18 $1.22 $1.08 Adjusted Operating Income (loss) $172 $179 $169 Adj. Diluted Operating Income (loss) per share $1.21 $1.23 $1.10 NIW ($B) $13 $14 $10 Primary Persistency Rate 80% 80% 84% Primary IIF ($B) $272 $273 $268 Net Premiums Earned $243 $246 $245 Losses Incurred $37 $18 $31 Loss Ratio 15% 7% 12% Operating Expenses $49 $59 $53 Expense Ratio 20% 24% 21% Net Investment Income $71 $69 $63 Net Investment gains (losses) $(6) $(3) $(3) Return on Equity 12.5% 13.3% 13.1% Adjusted Operating Return on Equity 12.9% 13.5% 13.4% PMIERs Sufficiency ($) $1,919 $1,919 $1,966 PMIERs Sufficiency (%) 162% 162% 165%
First Quarter 2026 Financial and Operating Highlights
Net income was $168 million, or $1.18 per diluted share, compared with $177 million, or $1.22 per diluted share, for the fourth quarter of 2025 and $166 million, or $1.08 per diluted share, for the first quarter of 2025. Adjusted operating income was $172 million, or $1.21 per diluted share, compared with $179 million, or $1.23 per diluted share, for the fourth quarter of 2025 and $169 million, or $1.10 per diluted share, for the first quarter of 2025. New insurance written (NIW) was $13 billion, down 11% from the fourth quarter of 2025, and up 30% from the first quarter of 2025. NIW for the current quarter was comprised of 96% monthly premium policies and 77% purchase originations. Persistency remained elevated at 80%, flat compared to the fourth quarter of 2025 and down from 84% in the first quarter of 2025. Approximately 21% of the mortgages in our portfolio had rates at least 50 basis points above March 2026’s average mortgage rate of 6.2%. Primary insurance in-force (IIF) was $272 billion, down modestly from $273 billion in the fourth quarter of 2025 and up approximately 2% from $268 billion in the first quarter of 2025. Net premiums earned were $243 million, down 1% from $246 million in the fourth quarter of 2025 and down 1% from $245 million in the first quarter of 2025 primarily driven by higher ceded premiums. Losses incurred for the first quarter of 2026 were $37 million and the loss ratio was 15%, compared to $18 million and 7%, respectively, in the fourth quarter of 2025 and $31 million and 12%, respectively, in the first quarter of 2025. The current quarter’s $39 million net reserve release compares to a net reserve release of $60 million, inclusive of our claim rate reduction from 9% to 8%, and $47 million in the fourth quarter of 2025 and first quarter of 2025, respectively. Operating expenses in the current quarter were $49 million, and the expense ratio was 20%. This is compared to $59 million and 24%, respectively, in the fourth quarter of 2025 and $53 million and 21%, respectively, in the first quarter of 2025. The sequential decrease was primarily driven by incentive-based compensation. Net investment income was $71 million, up from $69 million in the fourth quarter of 2025 and up from $63 million in the first quarter of 2025, driven by the continuation of elevated interest rates and higher average invested assets. Net investment gains (losses) in the quarter were $(6) million, as compared to $(3) million sequentially and $(3) 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 first quarter of 2026 was 12.5% and annualized adjusted operating return on equity was 12.9%. This compares to the fourth quarter of 2025 results of 13.3% and 13.5%, respectively, and to first quarter of 2025 results of 13.1% and 13.4%, respectively.
Story Continues
Capital and Liquidity
We paid approximately $30 million, or $0.21 per share, in dividends in the first quarter. EMICO completed a dividend of $150 million in the first quarter that will primarily be used to support our ability to return capital to shareholders and bolster financial flexibility. Enact Holdings, Inc. held $287 million in cash and cash equivalents plus $365 million of invested assets as of March 31, 2026. Combined cash and invested assets is up $25 million from the prior quarter, primarily due to the dividend from EMICO partially offset by the return of capital. PMIERs sufficiency was 162% and $1.9 billion above the PMIERs requirements, compared to 162% and $1.9 billion above the PMIERs requirements in the fourth quarter of 2025. As previously announced, during the quarter S&P upgraded the financial strength rating outlook for EMICO, EHI and Enact Re to positive.
Recent Events
We repurchased approximately 2.3 million shares at an average price of $40.66 for a total of approximately $93 million in the quarter. Additionally, through April 30, 2026, we repurchased 0.7 million shares at an average price of $42.56 for a total of $30 million. During the quarter we completed our $350 million share repurchase authorization announced April 30, 2025. As of April 30, 2026, approximately $438 million remains of our previously announced $500 million repurchase authorization. Today we announced the Company’s Board of Directors declared a 14% increase to our quarterly dividend from $0.21 to $0.24 per common share, payable on June 18, 2026, to shareholders of record on May 28, 2026.
Conference Call and Financial Supplement Information
This press release, the first 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 first quarter financial results in a conference call tomorrow, Wednesday, May 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 hereto 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 Enact
Enact (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 Statement
This 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 Discussion
This 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 March 31, 2026 and 2025, as well as for the three months ended December 31, 2025.
Exhibit A: Consolidated Statements of Income (amounts in thousands, except per share amounts)
1Q26 4Q25 1Q25 REVENUES: Premiums $242,850 $245,742 $244,786 Net investment income 70,906 68,621 63,037 Net investment gains (losses) (5,823) (2,856) (3,243) Other income 4,136 1,199 2,196 Total revenues 312,069 312,706 306,776 LOSSES AND EXPENSES: Losses incurred 37,161 17,811 30,541 Acquisition and operating expenses, net of deferrals 47,037 57,134 50,094 Amortization of deferred acquisition costs and intangibles 2,123 2,211 2,429 Interest expense 12,368 12,465 12,291 Total losses and expenses 98,689 89,621 95,355 INCOME BEFORE INCOME TAXES 213,380 223,085 211,421 Provision for income taxes 45,608 45,924 45,643 NET INCOME $167,772 $177,161 $165,778 Net investment (gains) losses 5,823 2,856 3,243 Costs associated with reorganization — 26 629 Taxes on adjustments (1,223) (605) (813) Adjusted Operating Income $172,372 $179,438 $168,837 Loss ratio(1) 15% 7% 12% Expense ratio(2) 20% 24% 21% Earnings Per Share Data: Net Income per share Basic $1.18 $1.23 $1.09 Diluted $1.18 $1.22 $1.08 Adj operating income per share Basic $1.22 $1.24 $1.11 Diluted $1.21 $1.23 $1.10 Weighted-average common shares outstanding Basic 141,595 144,290 151,831 Diluted 142,634 145,294 152,907 (1)The ratio of losses incurred to net earned premiums. (2)The ratio of acquisition and operating expenses, net of deferrals, and amortization of deferred acquisition costs and intangibles to net earned premiums. Expenses associated with strategic transaction preparations and restructuring costs did not impact the expense ratio for the periods presented.
Exhibit B: Consolidated Balance Sheets (amounts in thousands, except per share amounts)
Assets 1Q26 4Q25 1Q25 Investments: Fixed maturity securities available-for-sale, at fair value $6,133,789 $6,050,542 $5,815,337 Short term investments — — 3,696 Total investments 6,133,789 6,050,542 5,819,033 Cash and cash equivalents 549,040 582,493 635,269 Accrued investment income 56,344 56,073 49,654 Deferred acquisition costs 22,177 22,232 23,322 Premiums receivable 47,398 46,130 46,451 Other assets 122,692 116,007 103,351 Deferred tax asset 30,562 19,989 44,440 Total assets $6,962,002 $6,893,466 $6,721,520 Liabilities and Shareholders' Equity Liabilities: Loss reserves $590,393 $572,470 $542,528 Unearned premiums 85,252 91,639 107,519 Other liabilities 197,956 129,695 208,667 Long-term borrowings 744,853 744,481 743,399 Total liabilities 1,618,454 1,538,285 1,602,113 Equity: Common stock 1,403 1,422 1,508 Additional paid-in capital 1,609,712 1,706,481 2,007,776 Accumulated other comprehensive income (82,711) (30,143) (152,482) Retained earnings 3,815,144 3,677,421 3,262,605 Total equity 5,343,548 5,355,181 5,119,407 Total liabilities and equity $6,962,002 $6,893,466 $6,721,520 Book value per share $38.09 $37.66 $33.96 Book value per share excluding AOCI $38.68 $37.87 $34.97 U.S. GAAP ROE(1) 12.5% 13.3% 13.1% Net investment (gains) losses 0.4% 0.2% 0.3% Costs associated with reorganization 0.0% 0.0% 0.0% (Gains) losses on early extinguishment of debt 0.0% 0.0% 0.0% Taxes on adjustments (0.1)% 0.0% (0.1)% Adjusted Operating ROE(2) 12.9% 13.5% 13.4% Debt to Capital Ratio 12% 12% 13% (1)Calculated as annualized net income for the period indicated divided by the average of current period and prior periods’ ending total stockholders’ equity (2)Calculated as annualized adjusted operating income for the period indicated divided by the average of current period and prior periods’ ending total stockholders’ equity
CONTACT: Investor Contact Jonathan Fleetwood EnactIR@enactmi.com Media Contact Sarah Wentz Sarah.Wentz@enactmi.com
View Comments
- Genworth Financial Announces First Quarter 2026 Results
May 5, 2026
Strategic Highlights
Strong capital returns from Enact, with $99M received in the quarter Repurchased $66M of shares in the quarter; $856M since program inception as of March 31, 2026 CareScout delivered 1,486 matches1 in the quarter with 97% home care coverage of the aged 65-plus census population in the United States Continued progress on the LTC2 MYRAP3 with approximately $34.5B estimated net present value achieved since 2012 from IFAs4
Financial Highlights
Net income5 of $47M, or $0.12 per diluted share, and adjusted operating income, excluding Closed Block5,6 of $109M, or $0.28 per diluted share Enact reported adjusted operating income of $140M5 in the quarter; PMIERs sufficiency ratio7 remains strong at 162%8 Legacy insurance companies’9 RBC ratio10 of 289%8 driven by a statutory loss in the quarter Genworth holding company cash and liquid assets of $166M11 at quarter-end
RICHMOND, Va., May 05, 2026--(BUSINESS WIRE)--Genworth Financial, Inc. (NYSE: GNW) today reported results for the quarter ended March 31, 2026.
"Genworth is off to a solid start in 2026, with first quarter results demonstrating disciplined execution across our businesses," said Tom McInerney, President & CEO. "Enact’s strong cash generation supported capital returns to shareholders, while we continued to build the CareScout platform and enhanced the self-sustainability of the Closed Block. We remain well positioned to deliver long-term shareholder value and help families navigate the aging journey with confidence."
Consolidated Metrics
(Amounts in millions, except per share data) Q1 2026 Q4 2025 Q1 2025 Net income (loss)5 $ 47 $ 2 $ 54 Net income (loss) per diluted share5 $ 0.12 $ — $ 0.13 Adjusted operating income (loss), excluding Closed Block5,6 $ 109 $ 122 $ 114 Adjusted operating income (loss), excluding Closed Block per diluted share5,6 $ 0.28 $ 0.31 $ 0.27 Weighted-average diluted shares12 393.7 396.4 422.9
In the first quarter of 2026, the company began reporting adjusted operating income (loss), excluding Closed Block as its new consolidated operating performance measure. Management believes the new measure better aligns with the company’s strategy and capital allocation framework, managing the Closed Block on a standalone basis. While this is a non-GAAP financial measure, the company believes the new measure aids in understanding the company’s underlying operating performance.
Story Continues
Consolidated GAAP Financial Highlights
Net income was driven by Enact, which had strong operating performance Net investment income, net of taxes, was $605 million in the quarter, down from $620 million in the prior quarter and up from $584 million in the prior year primarily from changes in limited partnership income Net investment losses, net of taxes, decreased net income by $21 million in the quarter, compared with losses of $31 million in the prior quarter and net investment gains of $21 million in the prior year. The investment losses in the current quarter were driven primarily by net trading losses and mark-to-market adjustments on equity securities
Enact
Operating Metrics
(Dollar amounts in millions, except where indicated) Q1 2026 Q4 2025 Q1 2025 Adjusted operating income (loss)5 $ 140 $ 146 $ 137 Primary new insurance written $ 12,786 $ 14,386 $ 9,818 Primary insurance in-force (amounts in billions) $ 272.5 $ 273.1 $ 268.4 Loss ratio 15 % 7 % 12 % Equity13 $ 4,328 $ 4,351 $ 4,159
Results in the quarter included a pre-tax reserve release of $39 million reflecting favorable cure performance and loss mitigation activities. The prior quarter and prior year included pre-tax reserve releases of $60 million and $47 million, respectively Pre-tax net investment income of $72 million was up from $63 million in the prior year from higher yields and higher invested assets Primary new insurance written (NIW) was down 11% from the prior quarter from seasonality and up 30% from the prior year primarily from elevated refinance volume Primary insurance in-force increased 2% versus the prior year, driven by NIW and continued elevated persistency
Capital Metric Q1 2026 Q4 2025 Q1 2025 PMIERs sufficiency ratio7,8 162 % 162 % 165 %
Enact paid a quarterly dividend of $0.21 per share Enact announced an increase to its quarterly dividend to $0.24 per share, payable in June 2026 Estimated PMIERs sufficiency ratio of 162%, $1,919 million above requirements
Corporate and Other
Operating Metric
(Amounts in millions) Q1 2026 Q4 2025 Q1 2025 Adjusted operating income (loss) $ (31 ) $ (24 ) $ (23 )
Current quarter results were primarily driven by continued investment in CareScout to fund growth in the services business and debt service Prior quarter results included a favorable impact from tax-related items
Closed Block
Operating Metric
(Amounts in millions) Q1 2026 Q4 2025 Q1 2025 Adjusted operating income (loss) $ (32 ) $ (114 ) $ (63 )
Current quarter results were primarily driven by a $36 million pre-tax A/E14 loss15
Mortality increased sequentially with seasonal trends, but was lower than the prior year; LTC claims continued to grow as the block ages Results included net insurance recoveries of $65 million pre-tax in LTC, with $42 million recorded as a reduction to expenses and $23 million reflected as a reduction to the A/E loss Results in the prior quarter and prior year reflected pre-tax A/E losses of $133 million and $5 million, respectively
Statutory Results8,9 and RBC Ratio8,9
(Dollar amounts in millions) Q1 2026 Q4 2025 Q1 2025 Statutory pre-tax income (loss)8,16 $ (77 ) $ 3 $ (1 ) Long-term care insurance (40 ) (84 ) 50 Life insurance (57 ) 60 (34 ) Annuities 20 27 (17 ) GLIC consolidated RBC ratio8,10 289 % 300 % 304 %
Statutory pre-tax loss was $77 million in the current quarter
LTC continued to benefit from IFAs. Claims continued to grow as the block ages. Current quarter results reflected a $50 million benefit from net insurance recoveries Life insurance results included unfavorable reserve changes from aging of the block. The prior quarter included a net benefit from assumption updates of $51 million Mortality in LTC and life insurance increased sequentially with seasonal trends, but was lower than the prior year Annuities results reflected a $19 million favorable reserve release from a required regulatory update, partially offset by $13 million unfavorable net equity market and interest rate impacts compared to $22 million favorable in the prior quarter and $26 million unfavorable in the prior year Current quarter estimated GLIC consolidated RBC ratio was 289%, down from the prior quarter driven by the statutory loss in the quarter
Holding Company Cash and Liquid Assets
(Amounts in millions) Q1 2026 Q4 2025 Q1 2025 Holding company cash and liquid assets11,17 $ 166 $ 234 $ 211
Cash and liquid assets were $166 million at the end of the current quarter, which included approximately $50 million of cash held for future obligations, including advance cash payments from the company’s subsidiaries Cash inflows during the current quarter included $99 million from Enact capital returns Current quarter cash outflows included $89 million primarily related to annual employee benefit payments, which were advanced by the subsidiaries in 2025, $66 million in share repurchases, $7 million related to debt servicing costs and the repurchase of $5 million in principal of holding company debt
Capital Allocation and Shareholder Returns
Executed $66 million in share repurchases in the quarter at an average price of $8.61 per share Executed $856 million in share repurchases since the program’s inception through March 31, 2026 at an average price of $6.35 per share
About Genworth Financial Genworth Financial, Inc. (NYSE: GNW) is a publicly traded holding company headquartered in Richmond, Virginia. Through its family of brands—including CareScout, Genworth, and Enact—Genworth uses its more than 150 years of experience to help families navigate the aging journey with clarity and confidence, offering guidance, products, and services that support caregiving decisions, long-term care planning, and the financial challenges of aging. Genworth is the majority owner of Enact Holdings, Inc. (Nasdaq: ACT), a leading U.S. mortgage insurance provider. For more information, visit https://www.genworth.com.
Conference Call Information Investors are encouraged to read this press release, summary presentation and financial supplement which are now posted on the company’s website, https://investor.genworth.com.
Genworth will conduct a conference call on May 6, 2026 at 9:00 a.m. (ET) to discuss its first quarter results, which will be accessible via:
Telephone: 800-330-6710 or 213-279-1505 (outside the U.S.); conference ID # 5100219; or Webcast: https://investor.genworth.com/news-events/ir-calendar
Allow at least 15 minutes prior to the call time to register for the call. A replay of the webcast will be available on the company’s website for one year.
Prior to Genworth’s conference call, Enact will hold a conference call on May 6, 2026 at 8:00 a.m. (ET) to discuss its first quarter results, which will be accessible via:
Telephone: Click here to obtain a dial-in number and unique PIN for Enact’s live question and answer session; or Webcast: https://ir.enactmi.com/news-and-events/events
Allow at least 15 minutes prior to the call time to register for the call.
Use of Non-GAAP Measures The company uses non-GAAP financial measures entitled "adjusted operating income (loss)" and "adjusted operating income (loss), excluding Closed Block." These non-GAAP financial measures are evaluated by management and the company’s Board of Directors to assess performance, manage capital allocation, and in the case of adjusted operating income (loss), excluding Closed Block, as a basis for determining annual incentive awards and compensation for senior management. These measures have been established to more accurately reflect overall operating performance, as they minimize the impact of macroeconomic volatility. Management believes using adjusted operating income (loss), excluding Closed Block as a consolidated measure of profit or loss better aligns with the company’s strategy and capital allocation framework, as no capital is allocated to the Closed Block segment, which operates on a standalone basis, using existing capital and reserves, along with in-force management actions, to meet future obligations. The company also continues to report adjusted operating income (loss) for the Closed Block segment, as it believes it is the appropriate measure of profit or loss in accordance with segment reporting. Although adjusted operating income (loss) and adjusted operating income (loss), excluding Closed Block are non-GAAP financial measures, the company believes these measures aid in understanding the underlying performance of its operations.
The company defines adjusted operating income (loss) as income (loss) from continuing operations excluding:
the after-tax effects of income (loss) attributable to noncontrolling interests, net investment gains (losses), changes in fair value of market risk benefits attributable to interest rates, equity markets and associated hedges, gains (losses) on the sale of businesses, gains (losses) on the early extinguishment of debt, restructuring costs, and infrequent or unusual non-operating items.
A component of the company’s net investment gains (losses) is the result of estimated future credit losses, the size and timing of which can vary significantly depending on market credit cycles. In addition, the size and timing of other investment gains (losses) can be subject to the company’s discretion and are influenced by market opportunities, as well as asset-liability matching considerations. The company excludes net investment gains (losses), changes in fair value of market risk benefits attributable to interest rates, equity markets and associated hedges, gains (losses) on the sale of businesses, gains (losses) on the early extinguishment of debt, restructuring costs and infrequent or unusual non-operating items from adjusted operating income (loss) because, in the company’s opinion, they are not indicative of overall operating performance.
Adjustments to reconcile net income (loss) to adjusted operating income (loss) assume a 21% current tax rate, plus any associated deferred taxes, and are net of the portion attributable to noncontrolling interests. Changes in fair value of market risk benefits and associated hedges are adjusted to exclude changes in reserves, attributed fees and benefit payments.
Adjusted operating income (loss), excluding Closed Block, is derived from adjusted operating income (loss) and excludes adjusted operating income (loss) of the company’s Closed Block segment. While some of these items may be significant components of net income (loss) determined in accordance with 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), excluding Closed Block, are appropriate measures that are useful to investors because they identify the income (loss) attributable to the ongoing operations of the business. Adjusted operating income (loss) and adjusted operating income (loss), excluding Closed Block are not measures of complete profitability; therefore, they should not be considered in isolation or viewed as substitutes for GAAP net income (loss). In addition, the company’s definition of adjusted operating income (loss) may differ from the definitions used by other companies. In reporting non-GAAP measures in the future, the company may make other adjustments to exclude items it does not consider reflective of its core operating performance. The company may also disclose other non-GAAP operating measures in the future if it believes that such measures would be helpful to investors in their evaluation of the company.
A table at the end of this press release provides a reconciliation of net income (loss) available to Genworth Financial, Inc.’s common stockholders to adjusted operating income (loss) and adjusted operating income (loss), excluding Closed Block for the three months ended March 31, 2026 and 2025, as well as the three months ended December 31, 2025.
Management also reports revenues of CareScout Services to monitor growth of the business. CareScout Services revenues, which are included in Corporate and Other, primarily consist of fees from the CareScout Quality Network and placement fees earned when placing a care seeker in a senior living community, along with service fees such as eligibility assessments and Care Plans. To arrive at CareScout Services revenues, Corporate and Other revenues are adjusted to exclude intercompany eliminations, revenues from other businesses not individually reportable, including the company’s CareScout insurance business (CareScout Insurance) and international businesses, and other sources of revenue such as corporate net investment income and net investment gains (losses). See the table at the end of this press release for a reconciliation of total Corporate and Other revenues to CareScout Services revenues.
Statutory Accounting Data The company presents certain supplemental statutory data for GLIC and its consolidating life insurance subsidiaries that has been prepared on the basis of statutory accounting principles (SAP). GLIC and its consolidating life insurance subsidiaries file financial statements with state insurance regulatory authorities and the National Association of Insurance Commissioners that are prepared using SAP, an accounting basis either prescribed or permitted by such authorities. Due to differences in methodology between SAP and GAAP, the values for assets, liabilities and equity, and the recognition of income and expenses, reflected in financial statements prepared in accordance with GAAP are materially different from those reflected in financial statements prepared under SAP. This supplemental statutory data should not be viewed as an alternative to, or used in lieu of, GAAP.
This supplemental statutory data includes the company action level RBC ratio for GLIC and its consolidating life insurance subsidiaries as well as combined statutory pre-tax earnings from the principal legacy insurance companies, GLIC, GLAIC and GLICNY. Statutory pre-tax earnings represent the net gain from operations, including the impact from in-force rate actions, before dividends to policyholders, refunds to members and federal income taxes and before realized capital gains or (losses). The combined product level statutory pre-tax earnings are grouped on a consistent basis as those provided on page six of the statutory Annual Statements. Management uses and provides this supplemental statutory data because it believes it provides a useful measure of, among other things, statutory pre-tax earnings and the adequacy of capital. Management uses this data to measure against its policy to manage the legacy insurance companies with internally generated capital.
Cautionary Note Regarding Forward-Looking Statements This press release contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words such as "expects," "intends," "anticipates," "plans," "believes," "seeks," "estimates," "will," "may" or words of similar meaning and include, but are not limited to, statements regarding the outlook for the company’s future business and financial performance. Examples of forward-looking statements include statements the company makes relating to potential dividends or share repurchases; future return of capital by Enact Holdings, Inc. (Enact Holdings), including share repurchases, and quarterly and special dividends; the cumulative economic benefit of approved and future rate increases and benefit reductions included in the multi-year in-force rate action plan and other reduced benefit options associated with the long-term care insurance products in the company’s Closed Block segment; planned investments in and the company’s outlook for new lines of business or new insurance and other products and services, such as those it is pursuing with its CareScout business (CareScout), including through its CareScout services business (CareScout Services) and its CareScout insurance business (CareScout Insurance); the expected benefits and/or synergies of the Seniorly, Inc. (Seniorly) acquisition; future financial performance, including the expectation that quarterly adverse variances between actual and expected experience could persist resulting in future remeasurement losses in the company’s long-term care insurance products in its Closed Block segment; the resolution of the appeal or any potential litigation recovery amounts in connection with the AXA S.A. (AXA) and Santander Cards UK Limited (Santander) litigation, and Genworth’s planned use of proceeds from any recovery in connection with the litigation, including share repurchases, debt repurchases and investments in new businesses; future financial condition and liquidity of the company’s businesses; and statements the company makes regarding the outlook of the U.S. economy.
Forward-looking statements are based on management’s current expectations and assumptions, which are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Actual outcomes and results may differ materially from those in the forward-looking statements due to global political, economic, inflation, business, competitive, market, regulatory and other factors and risks, including but not limited to, the following:
the inability to successfully launch new lines of business, including long-term care insurance and other products and services the company is pursuing with CareScout; the company’s failure to maintain the self-sustainability of GLIC and its subsidiaries, collectively referred to as "Closed Block" or its "legacy insurance subsidiaries", including as a result of the inability to achieve desired levels of in-force management actions and/or the timing of future premium rate increases and associated benefit reductions taking longer to achieve than originally assumed; other regulatory actions negatively impacting the company’s life insurance businesses; inaccuracies or changes in estimates, assumptions, methodologies, valuations, projections and/or models, which result in inadequate reserves or other adverse results (including as a result of any changes in connection with quarterly, annual or other reviews); the impact on holding company liquidity caused by an inability to receive dividends or any other returns of capital from Enact Holdings, and limited sources of capital and financing and the need to seek additional capital on unfavorable terms; the impact on any potential recovery in the AXA and Santander litigation resulting from a successful appeal, significant delays or any other adverse development in the litigation; adverse changes to the structure or requirements of Federal National Mortgage Association (Fannie Mae), Federal Home Loan Mortgage Corporation (Freddie Mac) or the U.S. mortgage insurance market; an increase in the number of loans insured through federal government mortgage insurance programs, including those offered by the Federal Housing Administration; the inability of Enact Holdings and/or its U.S. mortgage insurance subsidiaries to continue to meet the requirements mandated by PMIERs (or any adverse changes thereto), the inability to meet minimum statutory capital requirements of applicable regulators or the mortgage insurer eligibility requirements of Fannie Mae or Freddie Mac; changes in economic, market and political conditions, labor shortages and fluctuating interest rates; unanticipated financial events, which could lead to market-wide liquidity problems and other significant market disruption resulting in losses, defaults or credit rating downgrades of other financial institutions; deterioration in economic conditions, a recession or a decline in home prices, all of which could be driven by many potential factors, including a U.S. federal government shutdown; an increase in the cost of care impacting the company’s long-term care insurance products included in its Closed Block segment; changes in international trade policy, including the potential impact of new or increased tariffs, retaliatory policies or actions from other countries, and trade wars or other events that lead to political and economic instability; changes in government or monetary policies; changes within regulatory agencies; changes in immigration policy; and fluctuations in international securities markets; downgrades in financial strength and credit ratings and potential adverse impacts to liquidity; counterparty credit risks; defaults by counterparties to reinsurance arrangements or derivative instruments; defaults or other events impacting the value of invested assets, including private equity and private credit; changes in tax rates or tax laws, or changes in accounting and reporting standards; litigation and regulatory investigations or other actions, including commercial and contractual disputes with counterparties; the inability to retain, attract and motivate qualified employees or senior management; changes in the composition of Enact Holdings’ business or undue concentration by customer or geographic region; the impact from deficiencies in the company’s disclosure controls and procedures or internal control over financial reporting; the occurrence of natural or man-made disasters, including geopolitical tensions and war (including the Russian invasion of Ukraine, instability in the Middle East and economic competition between the United States and China, among others), a public health emergency, including pandemics, or climate change; the inability to effectively manage technology systems (including artificial intelligence), cyber incidents or other failures, disruptions or security breaches of the company or its third-party vendors, as well as unknown risks and uncertainties associated with artificial intelligence; the inability of third-party vendors to meet their obligations to the company; the lack of availability, affordability or adequacy of reinsurance to protect the company against losses; a decrease in the volume of high loan-to-value home mortgage originations or an increase in the volume of mortgage insurance cancellations; unanticipated claims resulting from Enact Holdings’ delegated underwriting and loss mitigation programs; the impact of medical advances such as genetic research and diagnostic imaging, emerging new technology, including artificial intelligence and related legislation; and other factors described in the risk factors contained in Item 1A of the company’s Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission on February 27, 2026.
The company provides additional information regarding these risks and uncertainties in its Annual Report on Form 10-K. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements. Accordingly, for the foregoing reasons, the company cautions the reader against relying on any forward-looking statements. The company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required under applicable securities laws.
Condensed Consolidated Statements of Income (Loss)
(Amounts in millions, except per share amounts)
(Unaudited) Three months ended March 31, Three months ended December 31, 2025 2026 2025 Revenues: Premiums $ 881 $ 862 $ 886 Net investment income 766 739 785 Net investment gains (losses) (26 ) 27 (39 ) Policy fees and other income 156 158 152 Total revenues 1,777 1,786 1,784 Benefits and expenses: Benefits and other changes in policy reserves 1,224 1,217 1,182 Liability remeasurement (gains) losses 44 4 143 Changes in fair value of market risk benefits and associated hedges 10 18 (4 ) Interest credited 95 99 97 Acquisition and operating expenses, net of deferrals 213 236 265 Amortization of deferred acquisition costs and intangibles 55 60 57 Interest expense 25 26 26 Total benefits and expenses 1,666 1,660 1,766 Income (loss) from continuing operations before income taxes 111 126 18 Provision (benefit) for income taxes 31 36 4 Income (loss) from continuing operations 80 90 14 Income (loss) from discontinued operations, net of taxes (1 ) (5 ) 21 Net income (loss) 79 85 35 Less: net income (loss) attributable to noncontrolling interests 32 31 33 Net income (loss) available to Genworth Financial, Inc.’s common stockholders $ 47 $ 54 $ 2 Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders per share: Basic $ 0.12 $ 0.14 $ (0.05 ) Diluted $ 0.12 $ 0.14 $ (0.05 ) Net income (loss) available to Genworth Financial, Inc.’s common stockholders per share: Basic $ 0.12 $ 0.13 $ — Diluted $ 0.12 $ 0.13 $ — Weighted-average common shares outstanding: Basic 388.1 418.3 396.4 Diluted12 393.7 422.9 396.4
Reconciliation of Net Income (Loss) to Adjusted Operating Income (Loss) and Adjusted Operating Income (Loss), Excluding Closed Block
(Amounts in millions, except per share amounts)
(Unaudited) Three months ended March 31, Three months ended December 31, 2025 2026 2025 Net income (loss) available to Genworth Financial, Inc.’s common stockholders $ 47 $ 54 $ 2 Add: net income (loss) attributable to noncontrolling interests 32 31 33 Net income (loss) 79 85 35 Less: income (loss) from discontinued operations, net of taxes (1 ) (5 ) 21 Income (loss) from continuing operations 80 90 14 Less: net income (loss) from continuing operations attributable to noncontrolling interests 32 31 33 Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders 48 59 (19 ) Adjustments to income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders: Net investment (gains) losses, net18 25 (28 ) 38 Changes in fair value of market risk benefits attributable to changes in interest rates, equity markets and associated hedges19 9 19 (6 ) (Gains) losses on early extinguishment of debt — — (1 ) Expenses related to restructuring 2 (1 ) — Taxes on adjustments20 (7 ) 2 (4 ) Adjusted operating income (loss) 77 51 8 Less: Closed Block segment adjusted operating income (loss) (32 ) (63 ) (114 ) Adjusted operating income (loss), excluding Closed Block $ 109 $ 114 $ 122 Adjusted operating income (loss): Enact segment $ 140 $ 137 $ 146 Corporate and Other (31 ) (23 ) (24 ) Closed Block segment (32 ) (63 ) (114 ) Adjusted operating income (loss) $ 77 $ 51 $ 8 Net income (loss) available to Genworth Financial, Inc.’s common stockholders per share: Basic $ 0.12 $ 0.13 $ — Diluted $ 0.12 $ 0.13 $ — Adjusted operating income (loss), excluding Closed Block per share: Basic $ 0.28 $ 0.27 $ 0.31 Diluted $ 0.28 $ 0.27 $ 0.31 Weighted-average common shares outstanding: Basic 388.1 418.3 396.4 Diluted12 393.7 422.9 396.4
Reconciliation of Total Corporate and Other Revenues to CareScout Services Revenues
(Amounts in millions) Three months ended March 31, Three months ended December 31, 2025 2026 2025 Total Corporate and Other revenues $ 15 $ 7 $ 2 Less: intercompany eliminations (4 ) (4 ) (4 ) Less: other revenues 13 7 1 CareScout Services revenues $ 6 $ 4 $ 5
Footnote Definitions 1 A match is identified when CareScout validates and approves a home care invoice that demonstrates a CareScout member has received services for the first time and the appropriate discount was applied, or receives notice of a move-in to a senior living community. 2 Long-term care insurance. 3 Multi-year rate action plan. 4 In-force rate actions. 5 All references reflect amounts available to Genworth’s common stockholders. 6 This is a financial measure that is not calculated based on U.S. Generally Accepted Accounting Principles (GAAP). See the Use of Non-GAAP Measures section of this press release for additional information. 7 The Private Mortgage Insurer Eligibility Requirements (PMIERs) sufficiency ratio is calculated as available assets divided by required assets as defined within PMIERs. 8 Company estimate for the first quarter of 2026 due to timing of the preparation and filing of the statutory financial statement(s). 9 Includes Genworth’s legacy insurance companies: Genworth Life Insurance Company (GLIC), Genworth Life and Annuity Insurance Company (GLAIC) and Genworth Life Insurance Company of New York (GLICNY). 10 Risk-based capital ratio based on company action level for GLIC consolidated. 11 Included approximately $50 million, $127 million and $98 million of cash held for future obligations, including advance cash payments from the company’s subsidiaries as of March 31, 2026, December 31, 2025 and March 31, 2025, respectively. 12 Under applicable accounting guidance, companies in a loss position are required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share. Therefore, as a result of the loss from continuing operations for the three months ended December 31, 2025, the company was required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share for the three months ended December 31, 2025, as the inclusion of shares for performance stock units, restricted stock units and other equity-based awards of 6.0 million would have been antidilutive to the calculation. If the company had not incurred a loss from continuing operations for the three months ended December 31, 2025, dilutive potential weighted-average common shares outstanding would have been 402.4 million. 13 Reflected Genworth’s ownership of equity including accumulated other comprehensive income (loss) and excluding noncontrolling interests of $1,026 million, $1,017 million and $971 million as of March 31, 2026, December 31, 2025 and March 31, 2025, respectively. 14 Actual variances from expected experience. 15 Included $23 million pre-tax net insurance recovery benefit in LTC. 16 Net gain (loss) from operations before dividends to policyholders, refunds to members and federal income taxes for GLIC, GLAIC and GLICNY, and before realized capital gains or (losses). 17 Holding company cash and liquid assets comprises assets held in Genworth Holdings, Inc. (the issuer of outstanding public debt) which is a wholly-owned subsidiary of Genworth Financial, Inc. 18 Net investment (gains) losses were adjusted for the portion attributable to noncontrolling interests of $1 million for all periods. 19 Changes in fair value of market risk benefits and associated hedges were adjusted to exclude changes in reserves, attributed fees and benefit payments of $(1) million and $1 million for the three months ended March 31, 2026 and 2025, respectively, and $(2) million for the three months ended December 31, 2025. 20 Taxes on adjustments included tax expense of $3 million for the three months ended December 31, 2025 related to a release of a portion of the valuation allowance on certain deferred tax assets.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260505488087/en/
Contacts
Investors:
Christine Jewell
InvestorInfo@genworth.com
Media:
Evans Mandes
Evans.Mandes@genworth.com
View Comments
- Enact Announces 14% Increase to Quarterly Dividend
May 5, 2026
Enact Holdings, Inc.
RALEIGH, N.C., May 05, 2026 (GLOBE NEWSWIRE) -- Enact Holdings, Inc. (Nasdaq: ACT) (Enact) announced that its Board of Directors declared a quarterly dividend of $0.24 per common share, an increase of 14% from the prior quarter’s dividend. This dividend will be payable on June 18, 2026 to shareholders of record on May 28, 2026.
“Today’s announcement reflects the continued strength of our financial position and our confidence in Enact’s long-term outlook,” said Rohit Gupta, Enact’s President and Chief Executive Officer “It also underscores our ongoing commitment to creating long-term value for shareholders. We remain focused on balancing capital returns with the flexibility to support our customers, invest in our business and pursue opportunities that strengthen Enact over the long term.”
About Enact Holdings, Inc.
Enact (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.
CONTACT: Investor Contact Jonathan Fleetwood EnactIR@enactmi.com Media Contact Sarah Wentz Sarah.Wentz@enactmi.com
View Comments
- Enact Holdings, Inc. (ACT) Misses Q1 Earnings Estimates
May 5, 2026 · zacks.com
Enact Holdings, Inc. (ACT) came out with quarterly earnings of $1.21 per share, missing the Zacks Consensus Estimate of $1.26 per share. This compares to earnings of $1.1 per share a year ago.
