Enact (ACT) Q1 2025 earnings summary

Executive summary

• Reported GAAP net income of $166 million ($1.08 per diluted share) and adjusted operating income of $169 million ($1.10 per diluted share) for Q1 2025, both up year-over-year and sequentially.

• Insurance in force reached $268 billion, up 2% year-over-year, with persistency at 84%.

• New insurance written was $10 billion, down 26% sequentially and 7% year-over-year, mainly due to seasonality and lower market share.

• Announced a new $350 million share repurchase authorization and a 14% dividend increase to $0.21 per share.

• Returned $94 million to shareholders in Q1 2025 via buybacks and dividends.

Financial highlights

• Net premiums earned were $245 million, up 2% year-over-year and flat sequentially; net investment income was $63 million, up 10-11% year-over-year.

• Losses incurred increased to $31 million (loss ratio 12%), up from $24 million (10%) in Q4 2024 and $20 million (8%) in Q1 2024, due to lower reserve releases.

• Operating expenses were $53 million (expense ratio 21%), down sequentially due to lower incentive-based compensation.

• Return on equity was 13.1%; adjusted operating ROE was 13.4%.

• Book value per share excluding AOCI was $34.97, up from $33.96 in Q4 2024.

Outlook and guidance

• Reaffirmed 2025 expense guidance of $220 million-$225 million.

• Expect capital returns in 2025 to be similar to 2024 levels, with total capital return guidance at $350 million.

• Dividend was increased to $0.21 per share for Q2 2025, with future payments subject to board and Genworth approval.

• Management expects to maintain capital sufficiency well above regulatory requirements despite updated PMIERS standards phasing in through 2026.

• Elevated persistency expected to continue, helping offset impacts from higher mortgage rates.