• Enact Holdings (NasdaqGS:ACT) unveiled a new US$500 million share repurchase program.
• The company also entered into a share buyback agreement with Genworth Financial.
• Management reaffirmed its focus on shareholder returns by maintaining the quarterly dividend.

Enact Holdings, a provider of mortgage insurance solutions, is making a sizable capital commitment with this new buyback authorization and agreement with Genworth Financial. For you as an investor, this combination of repurchases and a steady dividend highlights how the company is choosing to use its available capital at a time when mortgage and housing related businesses remain under close watch.

This move reflects how Enact Holdings aims to balance returning cash to shareholders with maintaining flexibility for its core mortgage insurance operations. As this capital plan unfolds, investors may pay close attention to how the repurchase pace, dividend track record, and operating performance fit together in shaping the overall risk and reward profile of NasdaqGS:ACT.

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The new US$500 million repurchase plan, on top of the remaining authorization, signals that Enact is comfortable committing a large portion of capital to its own shares while still paying a US$0.21 quarterly dividend. That sits alongside Q4 2025 results where revenue was US$312.71 million and diluted EPS from continuing operations was US$1.22, compared with US$301.78 million and US$1.05 a year earlier, and a full year where revenue was US$1.24b and net income was US$674.24 million, slightly below the prior year.

How this fits the Enact Holdings narrative

The move lines up with the existing investor narrative that Enact is using disciplined capital management to support shareholder returns through dividends and buybacks while running a mortgage insurance business exposed to housing and credit cycles. For you, this announcement may look like a continuation of that story, where steady profitability and a robust capital position are used to support capital returns, in a market that also includes peers such as MGIC Investment and Radian Group.

Risks and rewards investors are weighing

• Large repurchases combined with earnings per share of US$4.52 on a diluted full year basis can reduce the share count over time and concentrate future cash flows across fewer shares.
• Maintaining the US$0.21 quarterly dividend may appeal to investors looking for consistent cash returns from a mortgage insurance-focused name.
• Analysts have flagged 3 key risks including expectations that earnings may decline on average over the next 3 years, which could affect how sustainable high levels of buybacks prove to be.
• Housing market and regulatory conditions can influence mortgage insurers broadly, so investors may compare Enact’s capital moves with those of peers such as Arch Capital Group and Essent Group.

What to watch next

From here, it is worth tracking how quickly Enact uses the US$500 million authorization, how much stock is taken out through the Genworth agreement, and whether earnings and credit trends continue to support this level of capital return. If you want more context on how other investors are thinking about Enact’s long term risks, rewards, and capital allocation, you can check community narratives on Enact Holdings here.

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.