Enact JPM 2Q26 Earnings Scorecard - Review

Research evidence excerpt

J P M O R G A N

North America Equity Research

05 August 2026

Enact

JPM 2Q26 Earnings Scorecard - Review

Neutral

ACT, ACT US

Price (05 Aug 26):$47.83

Consumer Finance

Today (8/5) AMC, ACT reported 2Q26 adj. EPS of $1.26, above JPMe of $1.20

and consensus of $1.19. ACT will host an earnings call tomorrow morning (8/6)

at 8:00 a.m. ET. We expect a positive reaction driven by higher-than-expected

revenues and lower-than-consensus incurred losses.

Earnings above JPMe/consensus driven by higher-than-expected

revenues and losses below consensus. ACT reported total revenues of

$317.3M, vs. JPMe of $309.7M and consensus of $315.8M. Net investment

income of $73.2M beat JPMe of $69.9M, and net premiums earned of $244.7M

beat JPMe of $238.7M. The company reported an incurred loss expense of

$33.3M, above JPMe of $28.7M but below consensus of $38.5M; the quarter

included a $37M reserve release, vs. $39M Q/Q and $48M Y/Y.

Insurance in force grew ~1% sequentially to $274B, ahead of JPMe of

$273.6B. New insurance written for 2Q26 totaled $15B (above JPMe

$14.45B), up 19% from $13B Q/Q and up 15% from $13B Y/Y. ACT reported

a persistency rate of 80% in 2Q26 (in line with JPMe), flat Q/Q and down from

82% Y/Y.

Loss ratio of 14% came in above JPMe of 12.0%. ACT reported a loss ratio

of 14% in 2Q26, down from 15% Q/Q but up from 10% Y/Y; the expense ratio

was 21% (better than JPMe of 22.7%), including ~$1M of one-time

reorganization costs.

ACT returned ~$127M of capital to shareholders in 2Q26; BoD declared

a quarterly dividend of $0.24/sh for 3Q26 (flat Q/Q). In 2Q26 ACT

repurchased ~2.2M shares at an average price of $42.58 for $93M and paid a

$0.24/share dividend ($34M in aggregate). Through July 31, ACT repurchased

an additional 0.7M shares for $30M at an avg. price of $45.93; ~$345M

remains of the previously announced $500M repurchase authorization. The

company raised full-year 2026 capital return guidance to $550M–$600M.

Richard Shane AC

(1-415) 315-6701

Hong Zhang

(1-212) 622-6416

J.P. Morgan Securities LLC

The authors wish to thank Prakhar Rai, of the J.P. Morgan Global Research Center,

for contributions to this report.