Enact Reports First Quarter 2025 Results

Core Insights - Enact Holdings, Inc. reported a strong financial performance for the first quarter of 2025, with net income of $166 million, or $1.08 per diluted share, reflecting a year-over-year increase [1][4] - The company emphasized its commitment to prudent underwriting, expense discipline, and returning capital to shareholders, positioning itself well amid economic uncertainties [2] Financial Performance - Net income for Q1 2025 was $166 million, up from $163 million in Q4 2024 and $161 million in Q1 2024 [3][4] - Adjusted operating income remained stable at $169 million, with adjusted diluted earnings per share at $1.10, compared to $1.09 in Q4 2024 and $1.04 in Q1 2024 [3][4] - New insurance written (NIW) was approximately $10 billion, a decrease of 26% from Q4 2024 and 7% from Q1 2024, attributed to seasonality and lower market share [4][9] Key Ratios and Metrics - Return on Equity (ROE) was reported at 13.1%, with an adjusted operating ROE of 13.4%, showing slight declines from the previous quarters [3][9] - The loss ratio increased to 12% from 10% in Q4 2024 and 8% in Q1 2024, driven by lower reserve releases [9][22] - The expense ratio improved to 21% from 24% in Q4 2024, indicating better expense management [9][22] Capital and Liquidity - PMIERs sufficiency was reported at 165%, approximately $2.0 billion above requirements, down from 167% in Q4 2024 [9][22] - The company held $356 million in cash and cash equivalents, with total assets amounting to $6.72 billion as of March 31, 2025 [9][21] - Enact repurchased approximately 2.0 million shares for about $66 million during the quarter and announced a new share repurchase program of up to $350 million [9][22] Dividends and Shareholder Returns - A quarterly dividend of $0.185 per share was paid, with a subsequent increase to $0.21 per share announced for the next quarter [9][22] - The company completed a $200 million dividend from its subsidiary EMICO to enhance capital return capabilities [9][22]