0001823529-26-000060
SEC filingEnact Holdings, Inc. reported strong financial results for fiscal year 2025, with total revenues of $1.24 billion and net income of $674.2 million. The company's performance was primarily driven by premiums of $980.5 million and net investment income of $266.2 million, partially offset by net investment losses of $16.3 million. Compared to the prior year, net income decreased from $688.1 million in 2024, while total revenues increased from $1.20 billion. The company generated $724.5 million in net cash from operating activities and maintained a strong balance sheet with total assets of $6.89 billion and total equity of $5.36 billion. Key strategic initiatives included the continued use of credit risk transfer programs and capital return to shareholders through $382.4 million in stock repurchases and $120.8 million in dividends paid.
Enact Holdings, Inc. reported fiscal year 2025 results with total revenues of $1.24 billion, representing a 2.8% increase from $1.20 billion in 2024. Net income was $674.2 million, a 2.0% decrease from $688.1 million in the prior year. Basic earnings per share were $4.54 compared to $4.40 in 2024. The company's revenue composition included premiums of $980.5 million, net investment income of $266.2 million, net investment losses of $16.3 million, and other income of $5.4 million. Total losses and expenses were $377.0 million, consisting of losses incurred of $109.5 million, acquisition and operating expenses of $208.3 million, amortization of deferred acquisition costs and intangibles of $9.2 million, and interest expense of $49.9 million. Income before income taxes was $858.8 million with a provision for income taxes of $184.6 million.
The company's revenue is primarily derived from mortgage insurance premiums and investment income. Premiums of $980.5 million represented the largest revenue component, followed by net investment income of $266.2 million. The company generated new insurance written (NIW) of $51.5 billion in 2025, compared to $51.0 billion in 2024 and $53.1 billion in 2023. The company operates in all 50 states and the District of Columbia, serving approximately 1,600 customers in 2025. The largest customer accounted for approximately 12% of total revenues for the year ended December 31, 2025. No other customer accounted for 10% or more of total revenues. The company's business is influenced by mortgage origination volume, private mortgage insurance penetration rates, and competitive dynamics in the industry.
The company's profitability metrics show strong performance with income before income taxes of $858.8 million representing 69.5% of total revenues. The provision for income taxes of $184.6 million resulted in an effective tax rate of 21.5%. Losses incurred of $109.5 million represented 8.9% of total revenues, while acquisition and operating expenses of $208.3 million represented 16.9% of total revenues. The company experienced favorable reserve development of $189 million in incurred losses primarily on prior accident year reserves, resulting from strong cure performance and loss mitigation efforts. This favorable development contributed to the relatively low losses incurred compared to premium revenue.
The company generated $724.5 million in net cash from operating activities, primarily driven by net income of $674.2 million and adjustments including net gains on investments of $16.3 million and changes in working capital items. Investing activities used $226.4 million in cash, primarily for purchases of fixed maturity securities of $1.90 billion, partially offset by proceeds from sales and maturities of securities totaling $1.68 billion. Financing activities used $515.1 million in cash, including $382.4 million for repurchase of common stock and $120.8 million for dividends paid. The balance sheet shows total assets of $6.89 billion, including fixed maturity securities of $6.05 billion and cash and cash equivalents of $582.5 million. Total liabilities were $1.54 billion, including loss reserves of $572.5 million and long-term borrowings of $744.5 million. Total equity was $5.36 billion, with retained earnings of $3.68 billion.
The company's strategy focuses on differentiating from competitors through best-in-class underwriting, maintaining strong capital levels and earnings profile, and delivering attractive risk-adjusted returns. Key priorities include maintaining a strong capital position supported by robust underwriting standards, comprehensive stress testing, and a diversified credit risk transfer program. The company aims to optimize cost of capital across CRT channels to manage volatility, protect the balance sheet, and enhance return on equity. Risk factors include dependence on mortgage origination volume, competitive pricing pressures, regulatory changes, and macroeconomic conditions affecting housing markets. The company maintains compliance with private mortgage insurer eligibility requirements (PMIERs) with available assets of $5,015 million against $3,096 million net required assets as of December 31, 2025, resulting in a PMIERs sufficiency ratio of 162%.