Mortgage insurance provider Enact Holdings (NASDAQ: ACT) met Wall Street’s revenue expectations in Q2 CY2026, with sales up 1.6% year on year to $317.3 million. Its non-GAAP profit of $1.26 per share was 6.1% above analysts’ consensus estimates.

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“Enact delivered another strong quarter supported by consistent execution, resilient credit performance and operating discipline,” said Rohit Gupta, President and CEO of Enact.

Company Overview

Playing a critical role in helping first-time homebuyers access the housing market, Enact Holdings (NASDAQ: ACT) provides private mortgage insurance that enables lenders to offer home loans with lower down payments while protecting against borrower defaults.

Revenue Growth

Big picture, insurers generate revenue from three key sources. The first is the core business of underwriting policies. The second source is income from investing the “float” (premiums collected upfront not yet paid out as claims) in assets such as fixed-income assets and equities. The third is fees from various sources such as policy administration, annuities, or other value-added services. Unfortunately, Enact Holdings’s 2.1% annualized revenue growth over the last five years was sluggish. This was below our standards and is a rough starting point for our analysis.

We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. Enact Holdings’s annualized revenue growth of 2.6% over the last two years aligns with its five-year trend, suggesting its demand was consistently weak. Note: Quarters not shown were determined to be outliers because they were impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.

This quarter, Enact Holdings grew its revenue by 1.6% year on year, and its $317.3 million of revenue was in line with Wall Street’s estimates.

Net premiums earned made up 81.4% of the company’s total revenue during the last five years, meaning Enact Holdings barely relies on non-insurance activities to drive its overall growth.

Markets consistently prioritize net premiums earned growth over investment and fee income, recognizing its superior quality as a core indicator of the company’s underwriting success and market penetration.

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Book Value Per Share (BVPS)

Insurance companies are balance sheet businesses, collecting premiums upfront and paying out claims over time. The float — premiums collected but not yet paid out — is invested, creating an asset base supported by a liability structure. Book value captures this dynamic by measuring:

• Assets (investment portfolio, cash, reinsurance recoverables) - liabilities (claim reserves, debt, future policy benefits)

BVPS is essentially the residual value for shareholders.

We therefore consider BVPS very important to track for insurers and a metric that sheds light on business quality. While other (and more commonly known) per-share metrics like EPS can sometimes be lumpy due to reserve releases or one-time items and can be managed or skewed while still following accounting rules, BVPS reflects long-term capital growth and is harder to manipulate.

Enact Holdings’s BVPS grew at a solid 9.2% annual clip over the last five years. BVPS growth has also accelerated recently, growing by 12.4% annually over the last two years from $30.91 to $39.06 per share.

Key Takeaways from Enact Holdings’s Q2 Results

It was good to see Enact Holdings meet analysts’ revenue expectations this quarter. Zooming out, we think this was a decent quarter. The stock remained flat at $47.82 immediately following the results.

Is Enact Holdings an attractive investment opportunity at the current price? We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).