How Higher Capital Return Guidance and Credit Ratings Are Shaping Enact Holdings' (ACT) Investment Story

• Enact Holdings reported its third quarter 2025 earnings, posting revenue of US$311.46 million and net income of US$163.5 million, along with a declared quarterly dividend of US$0.21 per share payable in December.
• The company also increased its full-year capital return guidance to approximately US$500 million and received credit rating upgrades from Moody’s and A.M. Best, reflecting strengthened financial flexibility and risk management.
• We’ll examine how this boost in capital return guidance and improved credit ratings could shape Enact Holdings’ investment outlook.

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Enact Holdings Investment Narrative Recap

To be a shareholder in Enact Holdings, you need to believe in the long-term demand for private mortgage insurance, enabled by ongoing housing sector resilience and effective risk management despite a challenging operating environment. The recent news of solid earnings and upgraded credit ratings supports confidence in Enact’s financial flexibility, but it does not materially shift the key short-term catalyst, an upturn in mortgage origination volumes, nor does it significantly reduce the biggest current risk: ongoing pressure from elevated mortgage interest rates, which continue to weigh on insurance demand. Among recent announcements, the company’s increased full-year capital return guidance to approximately US$500 million stands out, underpinned by the establishment of a new US$435 million revolving credit facility. While these steps signal confidence in Enact’s capital position and potential for shareholder returns, persistent headwinds from muted market growth and competitive pressures still loom over the company’s ability to drive near-term revenue gains. Yet, set against this positive backdrop for capital returns, investors should not overlook the continued risk from persistently high interest rates and potential knock-on effects on...

Read the full narrative on Enact Holdings (it's free!)

Enact Holdings is projected to reach $1.3 billion in revenue and $650.7 million in earnings by 2028. This outlook assumes a 2.7% annual revenue growth rate and a decrease in earnings of $26.3 million from the current $677.0 million.

Uncover how Enact Holdings' forecasts yield a $40.00 fair value, a 8% upside to its current price.

Exploring Other Perspectives

Fair value estimates for Enact Holdings from the Simply Wall St Community span from US$87.47 to nearly US$30,000, based on 2 independent perspectives. With ongoing concerns about sluggish mortgage origination volumes, you can see how investor viewpoints may vary sharply on the company’s outlook.

Explore 2 other fair value estimates on Enact Holdings - why the stock might be a potential multi-bagger!

Build Your Own Enact Holdings Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Enact Holdings research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.
• Our free Enact Holdings research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Enact Holdings' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.