Enact (ACT) Q4 2025 earnings summary

Executive summary

• Achieved Q4 2025 net income of $177.2 million ($1.22 per diluted share), up from $163.5 million in Q3 and $162.7 million in Q4 2024, with adjusted operating income of $179 million ($1.23 per share) and strong credit performance.

• Returned over $500 million to shareholders in 2025 through $121 million in dividends and $382 million in share repurchases, with a new $500 million share repurchase program authorized for 2026.

• Supported over 134,000 home purchases and 16,000 home retentions, leveraging advanced risk and pricing models.

Financial highlights

• Q4 2025 adjusted operating income was $179 million, with adjusted operating ROE at 13.5% and net income of $177.2 million; full-year adjusted operating income was $688 million, down from $718 million in 2024.

• Net premiums earned in Q4 were $246 million; net investment income was $69 million, up from $63 million in Q4 2024.

• Losses incurred in Q4 2025 were $18 million, with a loss ratio of 7%, down from 15% in Q3 and 10% in Q4 2024.

• Book value per share increased to $37.66 at year-end 2025, up from $32.80 in Q4 2024.

Outlook and guidance

• 2026 capital return expectations set at $500 million, with flexibility to adjust based on business performance, macroeconomic, and regulatory factors.

• Operating expenses for 2026 expected in the $215–$220 million range, excluding reorganization costs.

• Mortgage insurance market size projected to grow 10–15% in 2026, with purchase originations expected to increase 8–24%.

• Management remains confident in future execution, citing strong capital and operating discipline.