Enact Holdings, Inc. reported a net income of $165.8 million for the first quarter of 2025, reflecting a 3% increase from $161.0 million in the same period last year. The company's total revenues rose to $306.8 million, a 5% increase compared to $291.6 million in the first quarter of 2024. This growth was primarily driven by a 2% increase in premiums, which reached $244.8 million, and a 10% rise in net investment income, totaling $63.0 million. However, the company also experienced a significant increase in losses incurred, which rose by 57% to $30.5 million, compared to $19.5 million in the prior year.
In terms of operational metrics, Enact's new insurance written (NIW) decreased by 7% to $9.8 billion, attributed to lower estimated market share. The primary persistency rate was reported at 84%, slightly down from 85% in the previous year. The company also noted an increase in delinquent loans, with a total of 22,349 as of March 31, 2025, compared to 19,492 a year earlier. The delinquency rate rose to 2.34%, up from 2.01% in the same quarter of 2024.
Strategically, Enact has continued to focus on enhancing its capital structure and shareholder returns. The company repurchased approximately 1.96 million shares at an average price of $33.38 during the first quarter, part of a broader share repurchase program that has $27.4 million remaining. Additionally, Enact's equity increased to $5.1 billion as of March 31, 2025, up from $5.0 billion at the end of 2024, driven by retained earnings and comprehensive income.
Looking ahead, Enact Holdings remains cautious about the macroeconomic environment, particularly regarding inflation and housing market conditions. The company anticipates that elevated mortgage rates and low housing supply will continue to impact mortgage origination volumes. Despite these challenges, Enact is committed to maintaining its capital sufficiency above regulatory requirements and expects to leverage its strong credit profile to drive future profitability. The company’s risk-to-capital ratio stood at 10.5:1, well below the maximum threshold of 25:1, indicating a solid capital position to support ongoing operations and growth initiatives.
About Enact Holdings, Inc.
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