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Sep 30
Enact Q3 2025 Earnings Report
Enact reported its third quarter 2025 results, with GAAP net income of $163 million and adjusted operating income of $166 million, alongside a quarterly dividend declaration.
Key Takeaways
Enact delivered a strong third quarter in 2025, achieving GAAP net income of $163 million and adjusted operating income of $166 million. The company maintained prudent risk management and strong expense controls, leading to an increase in its full-year capital return guidance to approximately $500 million. Key metrics like primary insurance in-force grew by 2% year-over-year, and PMIERs sufficiency remained robust at 162%.
GAAP Net Income for Q3 2025 was $163 million, or $1.10 per diluted share.
Adjusted Operating Income reached $166 million, or $1.12 per diluted share.
Primary Insurance in-force increased to $272 billion, marking a 2% year-over-year growth.
PMIERs Sufficiency stood at 162%, approximately $1.9 billion above requirements.
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CapyFin.com Forward Guidance
Enact has increased its full-year capital return guidance to approximately $500 million for 2025, reflecting strong performance and current mortgage origination levels. The company also secured a new $435 million five-year senior unsecured revolving credit facility and an excess of loss reinsurance agreement for the 2027 book year.
Positive Outlook
- Increased full-year capital return guidance to approximately $500 million for 2025.
- Secured a new $435 million five-year senior unsecured revolving credit facility, replacing the previous $200 million facility.
- Announced an excess of loss reinsurance agreement providing approximately $170 million of coverage for a portion of expected new insurance written for the 2027 book year.
- Declared a quarterly dividend of $0.21 per share, payable on December 11, 2025.
- Moody’s Investor Service upgraded EMICO’s insurance financial strength rating to A2 from A3 with a stable outlook.
Challenges Ahead
- The final amount and form of capital returned to shareholders will depend on business performance, market conditions, and regulatory approvals.
- The evolving housing market presents a backdrop of uncertainty.
- Losses incurred for the third quarter of 2025 increased to $36 million from $12 million in the prior year.
- Net premiums earned decreased by 2% year-over-year, primarily due to higher ceded premiums.
- Annualized return on equity and adjusted operating return on equity decreased compared to the prior year.