Enact Holdings, Inc. (Nasdaq: ACT) is a leading U.S. private mortgage insurance provider that has been operational since 1981. The company aims to facilitate homeownership while effectively managing risk and capital for its lender partners.

For the first quarter of 2025, Enact reported a stable financial performance. GAAP net income was $166 million, or $1.08 per diluted share, compared to $163 million, or $1.05 per diluted share in the fourth quarter of 2024. This reflects an increase from $161 million, or $1.01 per diluted share in the same quarter last year. Adjusted operating income also remained stable at $169 million, or $1.10 per diluted share, unchanged from the previous quarter and up from $166 million, or $1.04 per diluted share year-over-year. Return on equity was reported at 13.1%, compared to 13.0% in the fourth quarter of 2024 and 13.8% in the first quarter of 2024.

The company’s primary insurance in-force (IIF) totaled $268 billion, showing a nominal decrease from $269 billion in the previous quarter and a 2% increase from $264 billion year-over-year. New insurance written (NIW) was down 26% sequentially to $10 billion, primarily due to seasonal factors, and decreased by 7% compared to the first quarter of 2024. The primary persistency rate was recorded at 84%, an increase from 82% in the previous quarter and slightly down from 85% year-over-year.

Net premiums earned, totaling $245 million, saw a minor decline of $1 million sequentially but increased by $4 million, or 2%, year-over-year. Losses incurred during the quarter were $31 million, resulting in a loss ratio of 12%, compared to $24 million and a loss ratio of 10% in the previous quarter, and $20 million with an 8% loss ratio in the first quarter of 2024. Operating expenses for the first quarter amounted to $53 million, which is a decrease from $58 million in the fourth quarter of 2024, maintaining a consistent level with the $53 million reported in the first quarter of 2024. The expense ratio improved to 21% from 24% sequentially.

Enact’s PMIERs sufficiency ratio was recorded at 165%, with approximately $2 billion above the required assets. Additionally, net investment income stabilized at $63 million, reflecting steady performance. The company reported a decrease in net investment gains, which were $(3) million compared to $(7) million in the last quarter and the same period last year.

During the quarter, Enact returned over $94 million to shareholders through share repurchases and dividends. The board approved a new share repurchase authorization of $350 million and increased the quarterly dividend by 14% from $0.185 to $0.21 per share. Enact’s continued strong capital position supports its operational stability and ability to navigate market fluctuations effectively.