Enact (US:ACT)2025-11-06 21:27Financial Performance - Total revenues for the three months ended September 30, 2025, were $311,455 thousand, slightly up from $309,588 thousand in the same period of 2024, reflecting a 0.6% increase[17]. - Net income for the three months ended September 30, 2025, was $163,497 thousand, down from $180,669 thousand in 2024, indicating a decrease of 9.5%[19]. - The company reported a total comprehensive income of $226,054 thousand for the three months ended September 30, 2025, compared to $314,990 thousand in 2024, a decrease of 28.2%[19]. - Basic net income per common share for the three months ended September 30, 2025, was $1.11, down from $1.16 in 2024, a decline of 4.3%[17]. - Net income for the nine months ended September 30, 2025, was $497,083, compared to $525,330 for the same period in 2024, reflecting a decrease of approximately 5.4%[24]. - The company reported comprehensive income of $662,753 for the nine months ended September 30, 2025, compared to $653,746 for the same period in 2024, showing a slight increase of about 1.6%[22]. Assets and Liabilities - Total assets increased to $6,876,443 thousand as of September 30, 2025, up from $6,521,531 thousand at December 31, 2024, representing a growth of 5.4%[15]. - Total liabilities increased to $1,559,157 thousand as of September 30, 2025, from $1,525,435 thousand at December 31, 2024, reflecting a growth of 2.2%[15]. - Total equity rose to $5,317,286 thousand as of September 30, 2025, compared to $4,996,096 thousand at December 31, 2024, an increase of 6.4%[15]. - Cash and cash equivalents at the end of the period on September 30, 2025, were $543,577, down from $673,363 at the end of September 2024, a decrease of about 19.2%[24]. Investment Income and Losses - Net investment income for the three months ended September 30, 2025, was $68,611 thousand, up from $61,056 thousand in 2024, representing an increase of 12.5%[17]. - Net investment income for the nine months ended September 30, 2025, was $197,532, an increase from $177,940 in 2024, indicating a growth of approximately 11%[41]. - For the three months ended September 30, 2025, net investment losses amounted to $2,834,000, compared to losses of $1,243,000 in the same period of 2024, reflecting a significant increase in losses[42]. - For the nine months ended September 30, 2025, net investment losses totaled $13,420,000, compared to $15,640,000 for the same period in 2024, indicating a decrease in losses year-over-year[42]. Insurance and Loss Reserves - Total loss reserves as of September 30, 2025, amounted to $572.1 million, an increase from $524.7 million as of December 31, 2024[105]. - For the nine months ended September 30, 2025, losses and LAE incurred related to insured events of the current accident year were $221 million, compared to $212 million for the same period in 2024[110]. - The gross loss reserves for domestic mortgage insurance increased to $566.9 million as of September 30, 2025, from $520.0 million at the end of 2024[105]. - The company recorded favorable reserve adjustments of $140 million primarily on prior accident year reserves due to improved cure performance of delinquencies[110]. Shareholder Activities - The company repurchased common stock totaling $255,377 during the nine months ended September 30, 2025, compared to $169,321 in the same period of 2024, reflecting an increase of approximately 50.9%[24]. - Cash dividends paid to Genworth were $25.1 million for the three months ended September 30, 2025, and $73.4 million for the nine months ended September 30, 2025[142]. - Total dividends declared and paid per common share for 2025 was $0.605, down from $0.715 in 2024[158]. - During Q3 2025, the company repurchased 2,824,499 shares at an average price of $37.23 per share, compared to 2,096,329 shares at $34.04 per share in Q3 2024[155]. Market Conditions and Performance Metrics - The U.S. mortgage origination market remained slow due to elevated mortgage rates, impacting housing affordability[166]. - The loss ratio for Q3 2025 was 15%, up from 5% in Q3 2024, with a reserve release of $45 million in Q3 2025 compared to $65 million in Q3 2024[172][192]. - The primary persistency rate remained stable at 83% for both Q3 2025 and Q3 2024, indicating strong retention of in-force policies[170]. - New insurance written (NIW) for Q3 2025 was $14.0 billion, representing a 3% increase compared to Q3 2024[170].