Enact Holdings secures new $435 million credit facility

RALEIGH, N.C. - Enact Holdings, Inc. (NASDAQ:ACT), a $5.6 billion market cap mortgage insurer with robust financial metrics including a 74.75% gross profit margin, has established a new $435 million five-year senior unsecured revolving credit facility, replacing its previous $200 million facility, according to a press release statement issued Wednesday. According to InvestingPro analysis, the company maintains a "GREAT" financial health score, suggesting strong operational stability.

The new credit facility, which became effective September 30, 2025, more than doubles the mortgage insurer’s borrowing capacity and extends its maturity profile.

Dean Mitchell, Executive Vice President and Chief Financial Officer of Enact, noted that the facility provides "greater financial flexibility and liquidity to support our operations."

The credit agreement specifies that borrowings will accrue interest at a floating rate tied to a standard short-term borrowing index plus an applicable margin determined by the company’s credit ratings, currently at 125 basis points.

No amounts have been borrowed under the facility as of the closing date. The company indicated that any future borrowings would be used for working capital needs and general corporate purposes.

The credit facility was arranged through a syndicate of eight banks, with JPMorgan Chase Bank, N.A. serving as Administrative Agent and Joint Lead Arranger, alongside Truist Securities, Inc. as Joint Lead Arranger.

Enact Holdings operates primarily through its wholly-owned subsidiary Enact Mortgage Insurance Corporation, which has been providing private mortgage insurance in the United States since 1981.

Full details of the credit agreement will be filed with the Securities and Exchange Commission as an exhibit to a Current Report on Form 8-K. With the company’s next earnings report due on November 4, investors can access deeper financial analysis and additional ProTips through InvestingPro’s comprehensive research platform.

In other recent news, Enact Holdings, Inc. announced that its primary entity, Enact Mortgage Insurance Corporation, has finalized a quota share reinsurance agreement for coverage in 2027. This agreement involves ceding approximately 34% of a portion of the expected new insurance written during the calendar year 2027. The company has partnered with a panel of reinsurers, each holding strong credit ratings from major agencies such as Standard & Poor’s, A.M. Best, or Moody’s. These developments reflect Enact’s strategic approach to managing its insurance portfolio and risk exposure. The reinsurance agreement is expected to enhance the company’s financial stability by distributing risk among multiple highly-rated reinsurers. This news is part of Enact’s ongoing efforts to optimize its insurance operations and align with industry standards. The agreement underscores the company’s commitment to maintaining a robust financial framework for future operations.

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