Q3 2025 Enact Holdings Inc Earnings Call Transcript
Key Points
- Enact Holdings Inc (ACT) reported a strong third-quarter performance with adjusted operating income of $166 million or $1.12 per diluted share.
- The company increased its 2025 capital return expectation to approximately $500 million, up from prior guidance of $400 million.
- Enact Holdings Inc (ACT) entered a new $435 million revolving credit facility with favorable terms, enhancing financial flexibility.
- Insurance in-force increased 2% year-over-year to $272 billion, with robust new insurance written of over $14 billion.
- The company received its fourth ratings upgrade from Moody's since going public in 2021, reflecting strong business performance and financial stability.
- Total delinquencies increased 6% sequentially, with new delinquencies up 12% and cures down 1%, consistent with seasonal trends.
- The loss ratio for the quarter was 15%, up from 10% in the previous quarter, indicating increased losses.
- Net premiums earned were flat sequentially and down modestly year-over-year, primarily due to higher ceded premiums.
- The base premium rate decreased slightly, which could impact future revenue if the trend continues.
- Operating expenses for the third quarter were $53 million, consistent with the previous quarter but reflecting ongoing inflationary pressures.
Hello, and welcome to Enact's third-quarter 2025 earnings call. Please be advised that today's conference is being recorded. (Operator Instructions)
I would now like to hand the conference over to your first speaker, Daniel Kohl, Vice President of Investor Relations. You may begin.
Thank you, and good morning. Welcome to our third-quarter earnings call. Joining me today are Rohit Gupta, President and Chief Executive Officer; and Dean Mitchell, Chief Financial Officer and Treasurer. Rohit will provide an overview of our business performance and progress against our strategy. Dean will then discuss the details of our quarterly results before turning the call back to Rohit for closing remarks.
We will then take your questions. The earnings materials we issued after market close yesterday contain our financial results for the quarter, along with a comprehensive set of financial and operational metrics. These are available on the Investor Relations section of our website. Today
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