Enact Holdings, Inc. operates as a private mortgage insurance company in the United States. The company engages in writing and assuming residential ...
Enact Holdings, Inc. (NASDAQ: ACT) is the parent company of Enact Mortgage Insurance Corporation, a leading private mortgage insurer in the United States. Founded in 1981 and based in Raleigh, North Carolina, Enact provides residential mortgage guaranty insurance to a broad range of financial institutions, including large money center banks, ...Enact Holdings, Inc. (NASDAQ: ACT) is the parent company of Enact Mortgage Insurance Corporation, a leading private mortgage insurer in the United States. Founded in 1981 and based in Raleigh, North Carolina, Enact provides residential mortgage guaranty insurance to a broad range of financial institutions, including large money center banks, non-bank lenders, national and local mortgage bankers, community banks, and credit unions. The company's core product is private mortgage insurance (PMI), which protects lenders against borrower default on residential mortgages, enabling borrowers to purchase homes with lower down payments. Enact also offers pool mortgage insurance, contract underwriting services, and mortgage-related reinsurance products, expanding its value proposition to clients. Financially, Enact demonstrates strong performance with a market capitalization around $6.83 billion, a price-to-earnings ratio of approximately 10.3, and a net profit margin of nearly 55%, reflecting efficient operations. The company's revenue per share is about $8.98, with a dividend yield of 1.8% as of the latest data, indicating a commitment to shareholder returns. With 419 full-time employees, Enact maintains a lean organizational structure while serving a vast network of over 1,800 lenders across the country. Under the leadership of President and CEO Rohit Gupta, who also serves as a director, Enact emphasizes responsible lending and homeownership. The company was formerly known as Genworth Mortgage Holdings, Inc. and rebranded to Enact in May 2021, marking a new chapter in its 40-year operating history. As a subsidiary of Genworth Holdings Inc., Enact benefits from strong parent backing while operating as a standalone publicly traded entity on NASDAQ since its IPO in September 2021. The company's business model is asset-light with minimal capital expenditures, generating substantial free cash flow, which underpins its ability to invest in technology, expand product offerings, and maintain industry-leading credit quality. Enact's mission centers on helping more people responsibly achieve and maintain the dream of homeownership, and its strategic focus includes prudent risk management, customer-centric innovation, and sustainable growth in the evolving housing finance market.
Operator: Hello, and welcome to Enact's Second Quarter Earnings Call. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker, Daniel Kohl, Vice President of Finance. You may begin.
Daniel Kohl: Thank you, and good morning. Welcome to our second quarter earnings call. Joining me today are Rohit Gupta, President and Chief Executive Officer; and Dean Mitchell, Chief Financial Officer and Treasurer. Rohit will provide an overview of our business performance and progress against our strategy. Dean will then discuss the details of our quarterly results before turning the call back to Rohit for closing remarks. We will then take your questions. The earnings materials we issued after market close yesterday contain our financial results for the quarter, along with a comprehensive set of financial and operational metrics. These are available on the Investor Relations section of our website. Today's call is being recorded and will include the use of forward-looking statements. These statements are based on current assumptions, estimates, expectations and projections as of today's date. Additionally, they are subject to risks and uncertainties, which may cause actual results to be materially different, and we undertake no obligation to update or revise such statements as a result of new information. For a discussion of these risks and uncertainties, please review the cautionary language regarding forward-looking statements in today's press release as well as in our filings with the SEC, which will be available on our website. Please keep in mind the earnings materials and management's prepared remarks today include certain non-GAAP measures. Reconciliations of these measures to the most relevant GAAP metrics can be found in the press release, our earnings presentation and our upcoming SEC filing on our website. With that, I'll turn the call over to Rohit.
Rohit Gupta: Thank you, Daniel. Good morning, everyone. Before discussing our second quarter results, I would like to begin by saying that our thoughts are with Tom McInerney, who is a valued member of our Board and strong supporter of Enact. We wish Tom a full and speedy recovery. I also want to express my support for Jerome Upton as he steps into the role of Interim President and CEO of Genworth. Jerome has been an important member of Genworth's leadership team as well as Enact's Board of Directors for many years, and I'm confident he will provide thoughtful and steady leadership during this time, and I look forward to our continued partnership. Turning to our results. Enact closed the first half of 2026 with another strong quarter, reflecting the disciplined execution of our strategy, resilient credit performance and our continued focus on long-term sustainable value creation. As a result of our strong performance, we are updating our 2026 capital return expectations to between $550 million and $600 million, up from our prior …