Enact’s Flat Premiums and Slow Earnings Draw Analyst Caution

Enact Holdings rose 17.3% over the six months covered in a StockStory analysis, roughly matching the S&P 500’s 16.9% gain. The publisher’s analysts said they lacked confidence in the insurer’s prospects.

At the latest available market update Friday, Enact shares traded at $46.97, down 0.59% from the previous close.

StockStory’s analysts said Enact’s net premiums earned were flat over the past five years, while the broader insurance industry did better. Net premiums earned are gross premiums minus amounts ceded to reinsurers, according to the article.

The analysts also expect revenue to stall over the next 12 months. That would be a slowdown from Enact’s 2.7% annualized revenue growth over the previous two years, they said.

They cited full-year earnings per share growth of 4.4% annually over the past four years, which they said trailed the broader insurance sector. StockStory described the stock’s valuation as reasonable at 1.2 times forward price-to-book, but said it saw limited opportunity.