- Enact Holdings, Inc. (ACT, Financial) reported GAAP net income of $166 million, or $1.08 per diluted share for Q1 2025.
- The company's PMIERs sufficiency stood at a robust 165%, with $2.0 billion above requirements.
- Fitch Ratings upgraded EMICO's financial strength rating to 'A', reflecting confidence in the company's financial stability.
Enact Holdings, Inc. (ACT) has announced its financial results for the first quarter of 2025, revealing a GAAP net income of $166 million, equivalent to $1.08 per diluted share. The adjusted operating income was reported at $169 million, or $1.10 per diluted share, indicating a solid financial performance compared to the same period in the previous year.
The company's primary insurance in-force increased by 2% year-over-year, reaching $268 billion, showcasing resilience amidst challenging market conditions. The persistency rate remained high at 84%, ensuring steady revenue from existing policies.
Enact's capital strength is underscored by a PMIERs sufficiency ratio of 165%, with an excess of $2.0 billion above PMIERs requirements. Such a strong capital position supports the company's shareholder return strategies, including a newly approved $350 million share repurchase program and a 14% increase in quarterly dividends, bringing it to $0.21 per share.
A notable development during the quarter was Fitch Ratings upgrading EMICO's financial strength to 'A', while also improving Enact's senior debt rating to BBB, highlighting the firm's financial health and stability.
Despite a 26% quarterly decline in new insurance written, which totaled $10 billion, Enact's business mix remains robust with 94% monthly premium policies and 93% purchase originations. The loss ratio increased slightly to 12% from 8% year-over-year, mainly due to a lower reserve release.
Enact's management expressed confidence in navigating future economic uncertainties, leveraging their strategic focus on robust liquidity and financial strength to continue providing value to shareholders.
