Enact (ACT) Q3 2025 earnings summary

Executive summary

• Delivered GAAP net income of $163 million ($1.10 per diluted share) and adjusted operating income of $166 million ($1.12 per diluted share) for Q3 2025, reflecting a sequential and year-over-year decline.

• Insurance in-force reached $272 billion, supported by $14 billion in new insurance written and an 83% persistency rate, with strong capital and liquidity positions maintained.

• Raised full-year 2025 capital return guidance to approximately $500 million, the highest since IPO, reflecting business strength and higher mortgage originations.

• Declared a $0.21 per share quarterly dividend and repurchased 2.8 million shares for $105 million in Q3, with further buybacks post-quarter.

• Entered a new $435 million revolving credit facility, replacing a $200 million facility, enhancing financial flexibility.

Financial highlights

• Net income for Q3 2025 was $163 million, down from $168 million in Q2 2025 and $181 million in Q3 2024; adjusted operating income was $166 million, down from $174 million in Q2 2025 and $182 million in Q3 2024.

• Net premiums earned were $245 million, flat sequentially and down year-over-year due to higher ceded premiums.

• Net investment income reached $69 million, up 4% sequentially and 12% year-over-year.

• Loss ratio increased to 15% from 10% in Q2 2025 and 5% in Q3 2024, reflecting higher losses incurred.

• Book value per share excluding AOCI reached $36.82, continuing a trend of accretion since IPO.

Outlook and guidance

• Full-year 2025 capital return guidance increased to approximately $500 million, subject to business performance, market conditions, and regulatory approvals.

• 2025 expense forecast, excluding reorganization costs, lowered to ~$219 million from prior $220–$225 million range.

• Management expects to maintain capital sufficiency well above regulatory requirements despite upcoming changes to PMIERS asset standards.

• Confident in ability to deliver through economic cycles, supported by strong balance sheet and prudent risk management.

• Final capital return amount and form will depend on business performance, market conditions, and regulatory approvals.