Enact Holdings, Inc. (Nasdaq: ACT) reported robust fourth quarter and full-year 2025 results. GAAP net income reached $177 million, or $1.22 per diluted share. Adjusted operating income was $179 million, or $1.23 per diluted share. Annualized return on equity hit 13.3%. Adjusted operating return on equity stood at 13.5%.
Primary insurance in-force grew to $273 billion, up 2% year-over-year. PMIERs sufficiency remained at 162%, or $1.9 billion above requirements. Book value per share was $37.66. Book value excluding AOCI reached $37.87. The company returned over $500 million to shareholders in 2025.
CEO Emphasizes Resilience in Challenging Market
President and CEO Rohit Gupta highlighted disciplined execution. Resilient credit performance drove success. The firm focused on long-term value creation.
Affordability pressures persist. Interest rate volatility impacts housing. Private mortgage insurance stays essential. Enact approaches from strength. Its strategy, capital position, and discipline support customers. It grows business and delivers shareholder value. Confidence remains high for future execution.
Q4 Financial and Operating Metrics
Net income rose from $163 million, or $1.10 per share, in Q3 2025. It topped Q4 2024’s $163 million, or $1.05 per share. Adjusted operating income increased from $166 million in Q3 and $169 million in Q4 2024.
New insurance written (NIW) hit $14 billion. This marked 2% sequential growth and 8% year-over-year rise. NIW included 96% monthly premium policies and 81% purchase originations.
Persistency eased to 80% from 83% in Q3 and 82% in Q4 2024. About 22% of portfolio mortgages carried rates 50 basis points above December’s 6.2% average.
Insurance in-force climbed from $272 billion in Q3 and $269 billion in Q4 2024. Net premiums earned held at $246 million, flat sequentially and year-over-year.
Losses incurred fell to $18 million. Loss ratio dropped to 7%. This compared to Q3’s $36 million and 15%, and Q4 2024’s $24 million and 10%. A $60 million net reserve release drove declines. Favorable cures lowered claim rate expectations to 8% from 9%. Prior releases were $45 million in Q3 and $56 million in Q4 2024.
Operating expenses rose to $59 million. Expense ratio increased to 24% from Q3’s 22% and matched Q4 2024. Incentive compensation fueled the sequential uptick.
Net investment income stayed at $69 million from Q3. It grew from $63 million in Q4 2024. Elevated rates and higher assets contributed.
Net investment losses were $3 million, flat sequentially and improved from $7 million prior year.
Capital Strength and Shareholder Returns
Enact returned $503 million in 2025. This included $121 million in dividends and $382 million in repurchases (10.5 million shares at $36.25 average).
Q4 dividend was $30 million, or $0.21 per share. EMICO paid $150 million dividend, aiding capital returns and flexibility.
Cash and equivalents totaled $257 million. Invested assets were $370 million at year-end. Combined assets dipped $23 million sequentially due to capital returns and interest payments, offset by EMICO dividend.
A new excess of loss reinsurance deal provides $170 million coverage for 2027 NIW. PMIERs sufficiency held steady at 162% and $1.9 billion excess.
Q4 repurchases covered 3.4 million shares at $37.66 average for $127 million. Through January 30, 2026, 0.8 million more shares repurchased for $31 million. $30 million remains of $350 million authorization.
Recent Developments Bolster Outlook
The board approved a $500 million share repurchase program. Quarterly dividend of $0.21 per share payable March 19, 2026, to February 26 record holders. Enact’s position supports growth amid housing headwinds.
