Enact (ACT) Q2 2025 earnings summary

Executive summary

• Achieved GAAP net income of $168 million ($1.11 per diluted share) and adjusted operating income of $174 million ($1.15 per diluted share) for Q2 2025, reflecting stable sequential performance but a year-over-year decline.

• Insurance in-force reached $270 billion, supported by $13 billion in new insurance written and an 82% persistency rate, with new insurance written up 35% sequentially but slightly down year-over-year.

• Reserve release of $48 million driven by favorable cure performance and loss mitigation.

• $116 million capital returned to shareholders in Q2 2025; 2025 capital return guidance increased to approximately $400 million.

• Maintained strong capital and liquidity positions, with PMIERs sufficiency at 165% ($2.0 billion above requirements) and robust policyholder surplus.

Financial highlights

• Net income for Q2 2025 was $168 million, with adjusted operating income of $174 million and adjusted EPS of $1.15.

• Net premiums earned were $245 million, flat sequentially and modestly higher year-over-year; net investment income rose to $66 million, up 5% sequentially and 10% year-over-year.

• Losses incurred were $25 million (loss ratio 10%), with a $48 million reserve release; expense ratio was 22% with $53 million in operating expenses.

• Return on equity was 13.0% (GAAP) and 13.4% (adjusted operating) for Q2 2025.

• Book value per share increased to $35.20 ($35.90 excluding AOCI), up from $33.96 in Q1 2025 and $30.91 in Q2 2024.

Outlook and guidance

• Full-year 2025 capital return guidance increased to approximately $400 million, subject to business performance, market conditions, and regulatory approvals.

• Operating expenses for 2025 anticipated in the $220–$225 million range, excluding reorganization costs.

• Base premium rate expected to stabilize around 2024 levels; management remains confident in housing market fundamentals.

• Dividend and share repurchase programs are expected to continue.

• Board declared a quarterly dividend of $0.21 per share, payable September 8, 2025.