Enact Holdings Reveals Strong Q2 2025 Results With Dividend
Enact Holdings Posts Strong Financials for Q2 2025
Enact Holdings, Inc. (NASDAQ: ACT) has recently announced notable financial results for the second quarter of 2025. With a reported net income of $168 million, or $1.11 per diluted share, this represents a solid performance compared to the previous quarter. Adjusted operating income for this quarter stood at $174 million or $1.15 per diluted share, showcasing resilience in a competitive market.
Significant Financial Highlights
The company’s results indicate a robust return on equity of 13.0% and an adjusted operating return on equity of 13.4%. Additionally, Enact reported a primary insurance in-force of $270 billion, marking a 1% increase from the prior quarter's figures. The PMIERs sufficiency stood at 165%, equating to around $2.0 billion above requirements, affirming the company's strong capital position.
Quarterly Performance Overview
The financial highlights for the quarter are as follows:
- Net income reached $168 million, an increase from $166 million in Q1 2025.
- Adjusted operating income was reported at $174 million compared to $169 million in the previous quarter.
- New insurance written (NIW) amounted to approximately $13 billion, a notable 35% increase from Q1, although slightly lower than in Q2 2024.
- Persistency rate held strong at 82%, with about 7% of mortgages in its portfolio reflecting higher-than-average rates.
Operating and Financial Efficiency
Enact’s operating expenses for Q2 were recorded at $53 million, maintaining an expense ratio of 22%, comparable to the previous quarter. The loss ratio for this quarter also showed improvement at 10%, down from 12% in Q1.
Investment Income and Market Trends
Net investment income for the quarter rose to $66 million, reflecting favorable interest rates and increased average invested assets. The company also faced net investment losses of $7 million, driven primarily by asset management strategies.
Capital Return Strategy
Enact is proactively returning capital to its shareholders, having paid out approximately $31 million or $0.21 per share dividend for the quarter. They anticipate a total capital return of about $400 million for the whole year, subject to market conditions.
Share Repurchase Activities
The company actively repurchased around 2.4 million shares at an average price of $35.45, totaling approximately $85 million for the quarter, indicating management's commitment to enhancing shareholder value.
Future Outlook and Company Philosophy
Looking ahead, Enact's leadership remains optimistic about the housing market fundamentals and is dedicated to helping more individuals achieve and maintain homeownership. This reflects Enact's historical commitment to providing comprehensive mortgage insurance solutions and reinforcing their strong partnerships with lenders.
About Enact Holdings, Inc.
Enact Holdings, Inc. operates primarily through its fully owned subsidiary and is known for providing innovative and reliable private mortgage insurance services. It aims to positively influence the lives of individuals in the communities it serves while delivering exceptional underwriting and risk management solutions.
Frequently Asked Questions
What were the key financial results for Enact in Q2 2025?
Enact reported a net income of $168 million, or $1.11 per diluted share, alongside an adjusted operating income of $174 million, or $1.15 per diluted share.
What was the NIW for Enact in the recent quarter?
The new insurance written (NIW) was approximately $13 billion for Q2 2025, reflecting a significant increase compared to the previous quarter.
How much dividend did Enact recently announce?
Enact declared a dividend of $0.21 per share, payable to shareholders for the quarter.
What is Enact's approach to capital return?
The company anticipates a total capital return of around $400 million for the year and is actively managing share repurchases to enhance shareholder value.
Who is the CEO of Enact Holdings?
Rohit Gupta serves as the President and CEO of Enact Holdings, emphasizing the company’s commitment to resilient growth in the housing market.
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