Mortgage insurer Enact's Q2 revenue edges past estimates
Mortgage insurer Enact's Q2 revenue edges past estimates
Overview
U.S. mortgage insurer's Q2 revenue slightly beat analyst expectations, adjusted EPS beat estimates
Company repurchased 2.2 mln shares for $93 mln and raised capital return guidance
New insurance written grew 15% yr/yr, operating expenses rose due to reorganization costs
Outlook
Enact raises 2026 capital return guidance to $550 mln-$600 mln, up from prior outlook
Result Drivers
NEW INSURANCE WRITTEN - NIW grew 15% yr/yr, supporting growth in primary insurance in-force
INVESTMENT INCOME - Net investment income increased due to higher portfolio yield and average invested assets
OPERATING EXPENSES - Expenses rose partly due to $1 mln in one-time reorganization costs
Company press release: ID:nGNX36f1mn
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Slight Beat* | $317.31 mln | $315.81 mln (3 Analysts) |
Q2 Adj. Diluted Operating Income per share | Beat | $1.26 | $1.19 (5 Analysts) |
Q2 EPS |
| $1.25 |
|
Q2 Net Income |
| $175 mln |
|
Q2 Adjusted Operating Income |
| $177 mln |
|
Q2 Expense Ratio |
| 21% |
|
Q2 ROE |
| 13% |
|
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the property & casualty insurance peer group is "buy."
Wall Street's median 12-month price target for Enact Holdings Inc is $45.00, about 6% below its August 4 closing price of $47.89
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago
Reuters Recommended Reads
Aug 4 - LoanDepot Q2 adjusted net loss narrows from prior quarter but misses profit expectations
Aug 4 - Assurant Q2 adjusted EPS beats estimates; outlook raised
Aug 4 - American Financial Group Q2 revenue beats, helped by premium growth
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)