Enact Holdings Celebrates Successful Q1 2025 with Robust Results

Enact Holdings, Inc. Reports Strong First Quarter 2025 Results

GAAP Net Income of $166 million, or $1.08 per diluted share.

Adjusted Operating Income of $169 million, or $1.10 per diluted share.

Return on Equity of 13.1% with an Adjusted Operating Return on Equity of 13.4%.

Primary Insurance In-Force stands at $268 billion, reflecting a 2% increase from the previous year.

PMIERs Sufficiency ratio of 165%, approximately $2.0 billion over the minimum requirement.

Book Value Per Share reached $33.96, while excluding AOCI, it stands at $34.97.

Enact Holdings, Inc. (Nasdaq: ACT) has announced its financial highlights for the first quarter of 2025, showcasing robust performance amid challenging market conditions. CEO Rohit Gupta expressed confidence in the company’s strategic direction, citing a strong market position and financial prudence.

Key Financial Highlights from Q1 2025

The company reported impressive figures for the quarter:

• Net income surged to $166 million, translating into $1.08 per diluted share, marking a significant increase from $163 million, or $1.05 per diluted share, in the previous quarter.
• Adjusted Operating Income remained steady at $169 million, unchanged from the previous quarter but showing a significant increase year-over-year.
• New Insurance Written (NIW) totaled approximately $10 billion, down from the previous quarter, influenced by seasonal trends in the market.
• Persistency rates are favorable, remaining at 84%, up from 82% in the previous quarter.
• Net premium earnings for the quarter reached $245 million, demonstrating stability in earnings.
• Operating expenses reduced notably to $53 million, showcasing the company’s commitment to cost management.

Capital Management and Liquidity

Enact Holdings has also enhanced its capital management strategies.

• Fitch Ratings upgraded Enact’s financial strength rating to A and its senior debt rating to BBB, indicating stable growth potential.
• The company has begun two excess-of-loss reinsurance agreements, covering expected new insurance written for the upcoming years.
• Shareholder benefits continue, with dividends paid amounting to approximately $28 million in the first quarter.
• Cash and invested assets increased by $108 million, primarily due to capital from the reinsurance agreements.

Recent Developments and Strategic Initiatives

Strategic initiatives continue to position Enact for sustained growth and performance.

• The company repurchased around 2 million shares at an average price of $33.38, totaling approximately $66 million.
• A new share repurchase program has been approved, allowing for up to $350 million in common stock purchases.
• Dividends have increased by 14%, demonstrating strong financial health and commitment to returning value to shareholders.

Future Outlook

Looking forward, Enact is enthusiastic about its positioning to navigate the complexities of the economic landscape. The company’s strategy reflects confidence in long-term housing demand and a commitment to creating value for its stakeholders.

Frequently Asked Questions

What was Enact's net income for Q1 2025?

Enact reported a net income of $166 million for the first quarter of 2025.

How much is the Primary Insurance In-Force for Enact?

The Primary Insurance In-Force stands at $268 billion, marking a 2% increase from the previous year.

Did Enact announce any dividend changes?

Yes, Enact declared a 14% increase in its quarterly dividend, from $0.185 to $0.21 per share.

What ratings upgrades has Enact received?

Fitch Ratings upgraded Enact's Insurer Financial Strength rating to A and its senior debt rating to BBB.

What is the future outlook for Enact?

Enact is positioned to maintain growth amid economic uncertainty, focusing on strategic execution and value creation for stakeholders.

About The Author

Hi there I'm 38-year-old author and financial consultant Owen Jenkins. Having worked in the financial sector for more than ten years, I am well-versed in the subtleties and complexity that mold our financial environment. Following a degree in finance, I worked in a number of financial institutions honing my abilities in market analysis, financial planning, and investment strategies.

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