Enact Holdings, Inc. (NASDAQ: ACT)

Enact Holdings, Inc. is a private mortgage insurance company that operates in the United States housing finance market. The company writes and assumes residential mortgage guaranty insurance that covers a portion of the unpaid principal balance of low down payment loans. This protection shields lenders and investors from losses that result from nonpayment of loans secured by first liens on residential real estate. By providing this credit enhancement Enact facilitates the sale of mortgages to the secondary market including to government sponsored enterprises such as Fannie Mae and Freddie Mac.

The company generates revenue primarily from writing mortgage insurance policies and collecting premiums on those policies. Its core product is primary mortgage insurance which is placed on individual residential loans at the time of origination. Revenue is measured by new insurance written which represents the aggregate loan amount of newly originated policies. In addition to primary insurance the company earns income from reinsurance activities and a small run off business but the majority of revenue comes from premiums on its primary mortgage insurance portfolio. The firm serves a diverse base of mortgage loan originators including national banks non bank lenders mortgage bankers community banks and credit unions.

Enact Holdings holds a meaningful share of the United States private mortgage insurance market with its quarterly share typically ranging between twelve percent and twenty percent of new insurance written. The company competes directly with government agencies such as the Federal Housing Administration and the Department of Veterans Affairs as well as other private mortgage insurers including Arch Capital Group Essent Group MGIC Investment Corporation NMI Holdings and Radian Group. Competitive advantages stem from its best in class underwriting discipline a well capitalized balance sheet a diversified credit risk transfer program and long standing relationships with a broad network of lending customers. The firm also leverages proprietary risk modeling and technology to enhance pricing accuracy and operational efficiency.

The company maintains relationships with roughly 1 600 mortgage lenders across the United States. Its customers are varied in size and type and include large money center banks non bank lenders national and local mortgage bankers community banks and credit unions. While the filing does not disclose the name of its largest customer it notes that this single entity accounted for approximately twenty two percent of new insurance written in 2025. No other customer represented ten percent or more of total revenue or new insurance written in the reported years.