New York, February 4, 2026, 15:20 EST — Regular session
Enact Holdings’ stock jumped roughly 10.5% to $44.58 in midafternoon trading, reaching an intraday peak of $44.76 and outperforming its mortgage insurance peers. Radian Group advanced around 2.9%, MGIC Investment climbed about 3.0%, Essent Group added roughly 2.6%, and NMI Holdings rose close to 4.8%. Meanwhile, the S&P 500 ETF slipped about 0.2%.
The run-up matters because Enact is ramping up capital returns just as investors sort steady premium earners from those vulnerable to a housing slump. A larger buyback boosts earnings per share by cutting the share count, but it also shows the board thinks capital levels can handle increased payouts.
Late Tuesday, Enact’s board approved a fresh $500 million share repurchase plan while holding its quarterly dividend steady at $0.21 per share. The dividend will be paid on March 19 to those registered as shareholders by February 26. This new buyback authorization adds to an existing $350 million program, which still has roughly $30 million available, the company noted. “The Board’s authorization … reflects the strength of our balance sheet,” CEO Rohit Gupta said. (SEC)
Enact’s Q4 results gave investors plenty to chew on ahead of its buyback. The mortgage insurer reported GAAP net income of $177 million, or $1.22 per diluted share, alongside adjusted operating income of $179 million, or $1.23 per diluted share. Losses hit $18 million, with the loss ratio dropping to 7%. The company released $60 million in reserves after more delinquent loans “cured” than expected and trimmed its claim-rate forecast on new delinquencies from 9% down to 8%. On the capital front, Enact’s PMIERs sufficiency—a key metric for staying in Fannie Mae and Freddie Mac’s good graces—stood at 162%, roughly $1.9 billion above the required threshold. (SEC)
On Wednesday’s earnings call, management told analysts it plans to return about $500 million in capital in 2026 and forecasted operating expenses between $215 million and $220 million, excluding reorganization costs. CFO Dean Mitchell expressed strong confidence in hitting that $500 million target but noted risks from business performance, loss trends, the macro environment, and regulatory shifts. Analysts drilled Enact on possible policy changes, including an FHA “re-rate” cut and other affordability initiatives. (Investing)
The repurchase plan includes provisions aimed at stabilizing Enact’s ownership structure. According to a share repurchase agreement dated February 2, Genworth Holdings holds 114,588,830 Enact shares—roughly 81% of the total outstanding—and will sell shares back to Enact in line with Enact’s open-market buybacks. This will follow a 4.3 ratio designed to preserve Genworth’s stake. (SEC)
The bigger picture is straightforward: mortgage insurers appear cash-rich when home prices hold steady and borrowers stay current. But that can shift fast if unemployment climbs or the housing market falters, driving up delinquencies and claims, and forcing companies to curb buybacks to preserve capital.
Traders are closely monitoring how fast Enact moves on the new authorization. Meanwhile, all eyes turn to Genworth, which reports earnings after the close on February 23, followed by a conference call on February 24. (SEC)
