Enact (ACT) Q4 2025 earnings summary

Executive summary

• Achieved GAAP net income of $177.2 million ($1.22 per diluted share) in Q4 2025, up from $163.5 million in Q3 2025 and $162.7 million in Q4 2024, reflecting strong operational and credit performance.

• Adjusted operating income for Q4 2025 was $179.4 million ($1.23 per diluted share), with adjusted operating ROE at 13.5%, both showing sequential and year-over-year improvement.

• Returned over $500 million to shareholders in 2025 through dividends and share repurchases.

• Supported over 134,000 home purchases and 16,000 home retentions in a complex housing environment.

• Achieved record insurance in force of $273 billion at year-end 2025.

Financial highlights

• Q4 adjusted operating income was $179 million ($1.23 per diluted share), up from $1.09 YoY and $1.12 QoQ.

• Net income for 2025 was $674 million, down from $688 million in 2024; adjusted operating income for 2025 was $688 million, down from $718 million in 2024.

• Net premiums earned in Q4 2025 were $246 million, flat year-over-year and sequentially.

• Losses incurred in Q4 2025 were $17.8 million, with a loss ratio of 7%, down from 15% in Q3 2025 and 10% in Q4 2024, driven by a $60 million net reserve release.

• Net investment income in Q4 2025 was $69 million, up 10% YoY.

Outlook and guidance

• Expect 2026 capital returns of approximately $500 million, supported by a new share repurchase program and quarterly dividend.

• Operating expenses for 2026 anticipated at $215–$220 million, excluding reorganization costs.

• Base premium rate expected to remain relatively flat in 2026.

• Mortgage insurance market projected to grow 10–15% in 2026, based on external forecasts.

• Management remains confident in the ability to execute and capitalize on future opportunities, citing a strong capital position and operating discipline.