Enact (ACT) Q4 2024 earnings summary

Executive summary

• Achieved record adjusted operating income of $718 million ($4.56 per diluted share) and GAAP net income of $688 million ($4.37 per share) for 2024, both up year-over-year.

• Insurance in force reached a record $269 billion, supporting approximately 140,000 families in homeownership, with $13 billion in new insurance written and 82% persistency in Q4.

• Returned $354 million to shareholders in 2024, including $102 million in Q4 via dividends and share repurchases.

• Maintained strong capital and liquidity positions, with PMIERS sufficiency at 167% ($2.1 billion above requirements).

• Helped approximately 140,000 households achieve homeownership and 14,400 households retain homes in 2024.

Financial highlights

• Q4 net income was $163 million ($1.05 per diluted share), with adjusted operating income of $169 million ($1.09 per share).

• Net premiums earned in Q4 were $246 million, up 2% year-over-year and down 1% sequentially; net investment income was $63 million, up 12% year-over-year.

• Operating expenses for 2024, excluding restructuring, fell 2% year-over-year to $218 million.

• Book value per share excluding AOCI grew to $34.16 at year-end, up from $30.52 a year ago.

• Reserve release of $56 million in Q4, reflecting favorable cure performance and loss mitigation.

Outlook and guidance

• Capital return guidance for 2025 is $350 million, consistent with 2024, with flexibility to adjust based on business performance and market conditions.

• Board approved a quarterly dividend of $0.185 per share for Q1 2025.

• Expense guidance for 2025 is $220–$225 million, reflecting continued investment in growth and modernization.

• Optimism for 2025 based on disciplined execution and strong financial position.

• New reinsurance agreements for 2025 and 2026 enhance capital protection.