Enact Holdings reported third‑quarter 2025 results, delivering adjusted operating income of $166 million, or $1.12 per diluted share, matching consensus estimates of $1.12. The company’s revenue totaled $311.46 million, falling $0.52 million (0.17%) short of the $311.98 million consensus.
The earnings beat on earnings per share was driven by disciplined cost management and a favorable mix of high‑margin mortgage‑insurance contracts. While revenue slipped slightly, the company offset the decline with stronger investment income, which rose 4 % sequentially to $69 million, reflecting higher interest rates and a larger invested asset base.
Losses increased to $36 million, up from $25 million in Q2 and $12 million in Q3 2024, pushing the loss ratio to 15 % from 10 % and 5 % in prior periods. The rise is attributed to seasonally higher new delinquencies and a lower reserve release, underscoring a modest headwind in underwriting performance.
Net income fell to $163 million, down 3 % from $168 million in Q2 and 9 % from $181 million in Q3 2024, largely due to the higher loss expense. Despite this, the company’s return on equity remained robust at 12.4 %, supported by a strong capital position and a 12.6 % adjusted operating return on equity.
Management raised its 2025 capital‑return guidance to approximately $500 million, an increase from the prior $400 million target, signaling confidence in the firm’s cash‑generating capacity. CEO Rohit Gupta emphasized disciplined execution and prudent risk management, noting that the results positioned the company to lift its capital‑return target to the highest level since its IPO.
The company also secured a new $435 million revolving credit facility, enhancing liquidity and providing flexibility for future growth initiatives. Analysts noted that while the EPS beat and higher capital‑return guidance are positive, the revenue miss and rising loss ratio may temper enthusiasm, reflecting the balance between underwriting headwinds and investment‑income tailwinds.
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