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- **Record Capital Return**: Increased 2025 capital return guidance to $500 million, highest since IPO, supported by $14 billion Q3 new insurance written.
- **Strong Credit Metrics**: 13% ROE, 162% PMIERs sufficiency, and 15% loss ratio reflect prudent risk management.
- **AI-Driven Growth**: Rate360 pricing engine enables granular risk decisions, with 1,600+ lender relationships.
- **Macro Resilience**: 83% persistency and 21% loans with >50bps rate spread mitigate refinancing risk.

**【CEO Summary Section】**
- Reported strong Q3 performance with adjusted operating income of $166 million ($1.12 per diluted share) and adjusted ROE of 13%.
- Increased 2025 capital return guidance to $500 million (up from $400 million), driven by robust business performance and mortgage origination levels.
- Secured a new $435 million revolving credit facility with favorable terms, enhancing financial flexibility.
- Insurance in-force reached $272 billion (2% YoY growth), with new insurance written of $14 billion.
- Highlighted prudent underwriting and AI-driven pricing engine (Rate360) supporting risk-adjusted growth.
- Received fourth Moody's ratings upgrade since IPO, with Enact Holdings upgraded to Baa2 and Enact Re outlook moved to positive.

**【CFO Financial Commentary】**
- Total net premiums earned: $245 million (flat QoQ, down modestly YoY due to higher ceded premiums).
- Investment income: $69 million (4% QoQ growth, 12% YoY growth), with new money yields exceeding 5%.
- Credit metrics: Loss ratio of 15%, reserve release of $45 million, and delinquencies up 6% sequentially (consistent with seasonal trends).
- Operating expenses: $53 million (22% expense ratio), with 2025 forecast reduced to $219 million (down from $220-225 million range).
- PMIERs sufficiency: 162% ($1.9 billion above requirements), supported by $1.9 billion CRT program capital credit.
- Capital returns: $136 million returned in Q3 (dividends and buybacks), with $500 million annual target.

**【Q&A Key Highlights】**
- **Delinquency Trends**: CFO noted delinquencies peak at 3-4 years, with 2022+ vintages performing in line with expectations. Seasonal Q3 increase (12% new delinquencies) aligns with historical patterns.
- **Expense Management**: CFO clarified Q4 expenses may be higher due to performance-based incentives, but 2025 total expenses remain disciplined at $219 million.
- **AI & Technology**: CEO emphasized AI investments in underwriting efficiency (e.g., Rate360 pricing engine) and customer experience, enabling 1,600+ lender relationships.
- **Capital Return Rationale**: CFO cited strong Q3 performance, elevated persistency (83%), and $14 billion new insurance written as drivers for $500 million return target.


Enact Holdings, Inc. (ACT) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

ACT

ACT fundamentals

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