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Enact Reports Second Quarter 2025 Results; Announces $0.21 Per Share Quarterly Dividend

1. Enact reported Q2 2025 net income of $168 million, $1.11 per share. 2. Capital return guidance increased to approximately $400 million for 2025. 3. Primary insurance in-force reached $270 billion, a 1% year-over-year increase. 4. Loss ratio improved to 10% compared to 12% in Q1 2025. 5. Share buyback program completed with approximately $250 million repurchased.

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Why Bullish?

Strong financials with capital return guidance and reduced losses can drive investor confidence. Historical responses to such earnings releases show positive trends following good results.

How important is it?

The article details earnings and financial health, influencing investor perception directly. Strong earnings reports are crucial indicators for stock performance, making the news highly relevant.

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Immediate market reactions typically occur post-earnings announcement, influencing stock price in the short run. Market sentiment surrounding ACT can shift quickly in response to quarterly performances.

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GAAP Net Income of $168 million, or $1.11 per diluted shareAdjusted Operating Income of $174 million, or $1.15 per diluted shareReturn on Equity of 13.0% and Adjusted Operating Return on Equity of 13.4%Primary Insurance in-force of $270 billion, a 1% increase from second quarter 2024PMIERs Sufficiency of 165% or approximately $2.0 billionBook Value Per Share of $35.20 and Book Value Per Share excluding AOCI of $35.90Increased Full-Year Capital Return Guidance to Approximately $400 million RALEIGH, N.C., July 30, 2025 (GLOBE NEWSWIRE) -- Enact Holdings, Inc. (Nasdaq: ACT) today announced financial results for the second quarter of 2025. "Our strong second quarter results underscore the resilience of our business model and the consistency of our execution,” stated Rohit Gupta, President and CEO of Enact. "We continue to navigate an evolving market, grow our insurance in-force, maintain robust risk and expense management and deliver strong capital returns while also investing in our business. As we look ahead, we remain confident in the fundamentals of the housing market and our ability to deliver long-term value for all stakeholders while helping more people responsibly achieve and sustain homeownership." Key Financial Highlights (In millions, except per share data or otherwise noted)2Q251Q252Q24Net Income (loss)$168$166$184Diluted Net Income (loss) per share$1.11$1.08$1.16Adjusted Operating Income (loss)$174$169$201Adj. Diluted Operating Income (loss) per share$1.15$1.10$1.27NIW ($B)$13$10$14Primary Persistency Rate82%84%83%Primary IIF ($B)$270$268$266Net Premiums Earned$245$245$245Losses Incurred$25$31$(17)Loss Ratio10%12%(7)%Operating Expenses$53$53$56Expense Ratio22%21%23%Net Investment Income$66$63$60Net Investment gains (losses)$(7)$(3)$(8)Return on Equity13.0%13.1%15.4%Adjusted Operating Return on Equity13.4%13.4%16.9%PMIERs Sufficiency ($)$1,961$1,966$2,057PMIERs Sufficiency (%)165%165%169%     Second Quarter 2025 Financial and Operating Highlights Net income was $168 million, or $1.11 per diluted share, compared with $166 million, or $1.08 per diluted share, for the first quarter of 2025 and $184 million, or $1.16 per diluted share, for the second quarter of 2024. Adjusted operating income was $174 million, or $1.15 per diluted share, compared with $169 million, or $1.10 per diluted share, for the first quarter of 2025 and $201 million, or $1.27 per diluted share, for the second quarter of 2024.New insurance written (NIW) was approximately $13 billion, up 35% from the first quarter of 2025, primarily from seasonality in the purchase origination market, and modestly down from the second quarter of 2024. NIW for the current quarter was comprised of 96% monthly premium policies and 93% purchase originations.Persistency remained elevated at 82%, down from 84% in the first quarter of 2025 and down from 83% in the second quarter of 2024. Approximately 7% of the mortgages in our portfolio had rates at least 50 basis points above June 2025’s average mortgage rate of 6.8%.Primary insurance in-force (IIF) was $270 billion, up approximately 1% from $268 billion in the first quarter of 2025 and up approximately  1% from $266 billion in the second quarter of 2024.Net premiums earned were $245 million, approximately flat from the first quarter of 2025 and modestly increased from the second quarter of 2024. The year-over-year increase is primarily driven by premium growth from attractive adjacencies and growth in primary insurance in-force, mostly offset by higher ceded premiums.Losses incurred for the second quarter of 2025 were $25 million and the loss ratio was 10%, compared to $31 million and 12%, respectively, in the first quarter of 2025 and $(17) million and (7)%, respectively, in the second quarter of 2024. The current quarter’s reserve release of $48 million from favorable cure performance and loss mitigation activities compares to a reserve release of $47 million and $77 million in the first quarter of 2025 and second quarter of 2024, respectively. The reserve release in the second quarter of 2024 benefited from reduction of claim rate from 10% to 9%.Operating expenses in the current quarter were $53 million, and the expense ratio was 22%. This compared to $53 million and 21%, respectively, in the first quarter of 2025 and $56 million and 23%, respectively in the second quarter of 2024. The year-over-year decrease was primarily driven by the prior year restructuring costs of $3 million from a voluntary separation program.Net investment income was $66 million, up from $63 million in the first quarter of 2025 and up from $60 million in the second quarter of 2024, driven by the continuation of elevated interest rates and higher average invested assets.Net investment gains (losses) in the quarter were $(7) million, as compared to $(3) million sequentially and $(8) million in the same period last year. The activity is primarily driven by the identification of assets that upon selling allow us to recoup losses through higher net investment income.Annualized return on equity for the second quarter of 2025 was 13.0% and annualized adjusted operating return on equity was 13.4%. This compares to the first quarter of 2025 results of 13.1% and 13.4%, respectively, and to second quarter 2024 results of 15.4% and 16.9%, respectively. Capital and Liquidity We paid approximately $31 million, or $0.21 per share, dividend in the second quarter.EMICO completed a dividend of approximately $130 million in the second quarter that will primarily be used to support our ability to return capital to shareholders and bolster financial flexibility.Enact Holdings, Inc. held $345 million in cash and cash equivalents plus $306 million of invested assets as of June 30, 2025. Combined cash and invested assets decreased $3 million from the prior quarter, primarily due to  share buybacks, our quarterly dividend and interest payment on our debt mostly offset by the contribution from EMICO.PMIERs sufficiency was 165% and $2.0 billion above the PMIERs requirements, compared to 165% and $2.0 billion above the PMIERs requirements in the first quarter of 2025. Recent Events We repurchased approximately 2.4 million shares at an average price of $35.45 for a total of approximately $85 million in the quarter. Additionally, through July 25, 2025, we repurchased 0.8 million shares at an average price of $35.86 for a total of $30 million. During the quarter we completed our $250 million share repurchase authorization announced May 1, 2024,  and as of July 25, 2025, there was approximately $262 million remaining of our previously announced $350 million repurchase authorization.We announced today that the Board of Directors declared a quarterly dividend of $0.21 per share, payable on September 8, 2025, to shareholders of record on August 18, 2025.We now anticipate a total 2025 capital return of approximately  $400 million; the final amount and form of capital returned to shareholders will depend on business performance, market conditions, and regulatory approvals. Conference Call and Financial Supplement InformationThis press release, the second quarter 2025 financial supplement and earnings presentation are now posted on the Company’s website, https://ir.enactmi.com. Investors are encouraged to review these materials. Enact will discuss second quarter financial results in a conference call tomorrow, Thursday, July 31, 2025, at 8:00 a.m. (Eastern). Participants interested in joining the call’s live question and answer session are required to pre-register by clicking here to obtain your dial-in number and unique PIN.  It is recommended to join at least 15 minutes in advance, although you may register ahead of the call and dial in at any time during the call.  If you wish to join the call but do not plan to ask questions, a live webcast of the event will be available on our website, https://ir.enactmi.com/news-and-events/events. The webcast will also be archived on the Company’s website for one year. About EnactEnact (Nasdaq: ACT), operating principally through its wholly owned subsidiary Enact Mortgage Insurance Corporation since 1981, is a leading U.S. private mortgage insurance provider committed to helping more people achieve the dream of homeownership. Building on a deep understanding of lenders' businesses and a legacy of financial strength, we partner with lenders to bring best-in class service, leading underwriting expertise, and extensive risk and capital management to the mortgage process, helping to put more people in homes and keep them there. By empowering customers and their borrowers, Enact seeks to positively impact the lives of those in the communities in which it serves in a sustainable way. Enact is headquartered in Raleigh, North Carolina. Safe Harbor StatementThis communication contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may address, among other things, our expected financial and operational results, the related assumptions underlying our expected results, guidance concerning the future return of capital and the quotations of management. These forward-looking statements are distinguished by use of words such as “will,” “may,” “would,” “anticipate,” “expect,” “believe,” “designed,” “plan,” “predict,” “project,” “target,” “could,” “should,” or “intend,” the negative of these terms, and similar references to future periods. These views involve risks and uncertainties that are difficult to predict and, accordingly, our actual results may differ materially from the results discussed in our forward-looking statements. Our forward-looking statements contained herein speak only as of the date of this press release. Factors or events that we cannot predict, including risks related to an economic downturn or a recession in the United States and in other countries around the world; changes in political, business, regulatory, and economic conditions; changes in or to Fannie Mae and Freddie Mac (the “GSEs”), whether through Federal legislation, restructurings or a shift in business practices; failure to continue to meet the mortgage insurer eligibility requirements of the GSEs; competition for customers; lenders or investors seeking alternatives to private mortgage insurance; an increase in the number of loans insured through Federal government mortgage insurance programs, including those offered by the Federal Housing Administration; and other factors described in the risk factors contained in our most recent Annual Report on Form 10-K and other filings with the SEC, may cause our actual results to differ from those expressed in forward-looking statements. Although Enact believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, Enact can give no assurance that its expectations will be achieved and it undertakes no obligation to update publicly any forward-looking statements as a result of new information, future events, or otherwise, except as required by applicable law. GAAP/Non-GAAP Disclosure DiscussionThis communication includes the non-GAAP financial measures entitled “adjusted operating income (loss),” “adjusted operating income (loss) per share," and “adjusted operating return on equity." Enact Holdings, Inc. (the “Company”) defines adjusted operating income (loss) as net income (loss) excluding the after-tax effects of net investment gains (losses), restructuring costs and infrequent or unusual non-operating items, and gain (loss) on the extinguishment of debt. The Company excludes net investment gains (losses), gains (losses) on the extinguishment of debt and infrequent or unusual non-operating items because the Company does not consider them to be related to the operating performance of the Company and other activities. The recognition of realized investment gains or losses can vary significantly across periods as the activity is highly discretionary based on the timing of individual securities sales due to such factors as market opportunities or exposure management. Trends in the profitability of our fundamental operating activities can be more clearly identified without the fluctuations of these realized gains and losses. We do not view them to be indicative of our fundamental operating activities. Therefore, these items are excluded from our calculation of adjusted operating income. In addition, adjusted operating income (loss) per share is derived from adjusted operating income (loss) divided by shares outstanding. Adjusted operating return on equity is calculated as annualized adjusted operating income for the period indicated divided by the average of current period and prior periods’ ending total stockholders’ equity. While some of these items may be significant components of net income (loss) in accordance with U.S. GAAP, the Company believes that adjusted operating income (loss) and measures that are derived from or incorporate adjusted operating income (loss), including adjusted operating income (loss) per share on a basic and diluted basis and adjusted operating return on equity, are appropriate measures that are useful to investors because they identify the income (loss) attributable to the ongoing operations of the business. Management also uses adjusted operating income (loss) as a basis for determining awards and compensation for senior management and to evaluate performance on a basis comparable to that used by analysts. Adjusted operating income (loss) and adjusted operating income (loss) per share on a basic and diluted basis are not substitutes for net income (loss) available to Enact Holdings, Inc.’s common stockholders or net income (loss) available to Enact Holdings, Inc.’s common stockholders per share on a basic and diluted basis determined in accordance with U.S. GAAP. In addition, the Company’s definition of adjusted operating income (loss) may differ from the definitions used by other companies. Adjustments to reconcile net income (loss) available to Enact Holdings, Inc.’s common stockholders to adjusted operating income (loss) assume a 21% tax rate. The tables at the end of this press release provide a reconciliation of net income (loss) to adjusted operating income (loss) and U.S. GAAP return on equity to adjusted operating return on equity for the three months ended June 30, 2025 and 2024, as well as for the three months ended March 31, 2025. Exhibit A: Consolidated Statements of Income (amounts in thousands, except per share amounts)  2Q251Q252Q24REVENUES:   Premiums$245,289$244,786$244,567Net investment income65,88463,03759,773Net investment gains (losses)(7,343)(3,243)(7,713)Other income1,0602,1962,207Total revenues304,890306,776298,834    LOSSES AND EXPENSES:   Losses incurred25,28930,541(16,821)Acquisition and operating expenses, net of deferrals50,59850,09453,960Amortization of deferred acquisition costs and intangibles2,2052,4292,292Interest expense12,29612,29113,644Loss on debt extinguishment0010,930Total losses and expenses90,38895,35564,005    INCOME BEFORE INCOME TAXES214,502211,421234,829Provision for income taxes46,69445,64351,156NET INCOME$167,808$165,778$183,673    Net investment (gains) losses7,3433,2437,713Costs associated with reorganization(24)6293,435Loss on debt extinguishment0010,930Taxes on adjustments(1,537)(813)(4,636)Adjusted Operating Income$173,590$168,837$201,115    Loss ratio(1)10%12%(7)%Expense ratio(2)22%21%23%Earnings Per Share Data:   Net Income per share   Basic$1.12$1.09$1.17Diluted$1.11$1.08$1.16Adj operating income per share   Basic$1.16$1.11$1.28Diluted$1.15$1.10$1.27Weighted-average common shares outstanding   Basic149,940151,831157,193Diluted150,729152,907158,571    (1)The ratio of losses incurred to net earned premiums.(2)The ratio of acquisition and operating expenses, net of deferrals, and amortization of deferred acquisition costs and intangibles to net earned premiums. Expenses associated with strategic transaction preparations and restructuring costs increased the expense ratio by zero percentage points for the three-month periods ended June 30, 2025 and March 31, 2025, one percentage point for the three-month period ended June 30, 2024.  Exhibit B: Consolidated Balance Sheets (amounts in thousands, except per share amounts) Assets2Q251Q252Q24Investments:   Fixed maturity securities available-for-sale, at fair value$5,896,818$5,815,337$5,331,345Short term investments3,0013,69612,313Total investments5,899,8195,819,0335,343,658Cash and cash equivalents612,967635,269699,035Accrued investment income53,25949,65445,317Deferred acquisition costs22,91023,32224,619Premiums receivable44,09146,45148,698Other assets107,882103,35198,929Deferred tax asset32,54544,44089,116Total assets$6,773,473$6,721,520$6,349,372    Liabilities and Shareholders' Equity   Liabilities:   Loss reserves$551,940$542,528$508,138Unearned premiums101,205107,519129,870Other liabilities153,447208,667143,167Long-term borrowings743,753743,399742,368Total liabilities1,550,3451,602,1131,523,543Equity:   Common stock1,4841,5081,561Additional paid-in capital1,927,3722,007,7762,220,903Accumulated other comprehensive income(104,342)(152,482)(236,305)Retained earnings3,398,6143,262,6052,839,670Total equity5,223,1285,119,4074,825,829Total liabilities and equity$6,773,473$6,721,520$6,349,372    Book value per share$35.20$33.96$30.91Book value per share excluding AOCI$35.90$34.97$32.43    U.S. GAAP ROE(1)13.0%13.1%15.4%Net investment (gains) losses0.6%0.3%0.6%Costs associated with reorganization0.0%0.0%0.3%(Gains) losses on early extinguishment of debt0.0%0.0%0.9%Taxes on adjustments(0.1)%(0.1)%(0.4)%Adjusted Operating ROE(2)13.4%13.4%16.9%    Debt to Capital Ratio12%13%13%    (1)Calculated as annualized net income for the period indicated divided by the average of current period and prior periods’ ending total stockholders’ equity(2)Calculated as annualized adjusted operating income for the period indicated divided by the average of current period and prior periods’ ending total stockholders’ equity This press release was published by a CLEAR® Verified individual.

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