Enact secures 34% quota share reinsurance for 2027 coverage

Published 25/09/2025, 21:22
Enact secures 34% quota share reinsurance for 2027 coverage

RALEIGH, N.C. - Enact Holdings, Inc. (NASDAQ:ACT), a $5.7 billion market cap mortgage insurer trading near its 52-week high of $39.47, announced Thursday that its flagship entity, Enact Mortgage Insurance Corporation, has entered into a quota share reinsurance agreement with multiple reinsurers for 2027 coverage.

Under the agreement, Enact will cede approximately 34% of a portion of expected new insurance written for the period from January 1 through December 31, 2027. The company has secured this coverage from a panel of reinsurers, each currently rated A- or better by Standard & Poor’s or A.M. Best, or A3 or better by Moody’s.

"This new quota share agreement underscores our commitment to disciplined risk management and efficient capital deployment," said Rohit Gupta, President and CEO of Enact, in a press release statement. According to InvestingPro data, the company maintains a "GREAT" financial health score, supported by a robust 74.75% gross profit margin and a healthy 2.17% dividend yield.

Enact Holdings, which operates primarily through its wholly-owned subsidiary Enact Mortgage Insurance Corporation, has been a private mortgage insurance provider in the U.S. since 1981.

The reinsurance arrangement is subject to certain conditions, according to the company’s announcement. The transaction represents part of Enact’s ongoing risk management strategy as it continues its operations in the mortgage insurance market. InvestingPro analysis suggests the stock is currently undervalued, with multiple additional insights available through their comprehensive Pro Research Report, one of 1,400+ detailed company analyses.

Enact Holdings is headquartered in Raleigh, North Carolina, and is listed on the Nasdaq exchange, where it trades at a P/E ratio of 8.75 with annual revenues exceeding $1.2 billion.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.