Enact Holdings, Inc. (ACT) FY2025 10-K Annual Report
Enact Holdings, Inc. (ACT) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on Feb 27, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.
Enact Holdings, Inc. FY2025 10-K Analysis
Business Overview
- • Core business: Private mortgage insurance provider covering Low Down Payment Loans across all US states and DC, facilitating secondary mortgage market sales
- • New emphasis: Expanded credit risk transfer (CRT) program as a central risk management and capital efficiency strategy
- • Strategic focus: Strengthened underwriting differentiation and capital management via CRT to mitigate loss volatility and optimize return on equity
- • Quantitative metric: New insurance written (NIW) $51.5B in 2025, slightly up from $51.0B in 2024; net income $674M in 2025 versus $688M prior year
- • Noteworthy fact: Minority IPO of 18.4% completed in September 2021 remains key corporate structure point alongside $500M capital contribution to Bermuda-based Enact Re in 2023
Management Discussion & Analysis
- • Revenue flat with premiums marginally up; net earned premium rate slightly down from 36 to 35 bps
- • Adjusted operating income $687.8M in 2025 vs $718.4M in 2024; decline due to higher losses offset by better investment income and lower expenses
- • Best segment: Net investment income increased on higher yields and assets; losses improved with $200M net reserve release in 2025 vs $252M in 2024
- • Worst segment: Losses increased with new primary delinquencies 50,481 in 2025 (+4%) leading to $299M losses vs $287M in 2024
- • Cash flow: No explicit buyback/dividend/capex data disclosed in excerpt; interest expense related to 2029 Notes in 2025 vs 2025 and 2029 Notes in 2024
- • Outlook/risk: Management notes stable effective tax rate ~21.5% and ongoing yield optimization strategy with opportunistic fixed maturity sales to enhance income
Risk Factors
- • Regulatory risk from FHFA/PMIERs affecting capital relief via Credit Risk Transfer program, essential for risk and capital management
- • Macroeconomic exposure to rising interest rates (6.67% weighted average mortgage rate 2024) impacting mortgage origination and persistency
- • Operational risk from loss reserve estimation; $572M reserve with $79M sensitivity to 4-point claim rate change impacting earnings
- • Competitive risk from government agencies FHA and VA as primary competitors focusing on price and underwriting guidelines
- • Financial risk from $6.05B fixed maturity securities portfolio vulnerable to market value declines from rising interest rates and credit spread widening
Enact Holdings, Inc. FY2025 Key Financial MetricsXBRL
Revenue
$1.2B
▲ +2.8% YoY
Net Income
$674M
▼ -2.0% YoY
Net Margin
54.6%
▼ -270bp YoY
ROE
12.6%
▼ -118bp YoY
Total Assets
$6.9B
▲ +5.7% YoY
EPS (Diluted)
$4.52
▲ +3.4% YoY
Operating Cash Flow
$725M
▲ +5.6% YoY
Source: XBRL data from Enact Holdings, Inc. FY2025 10-K filing on SEC EDGAR. All figures in USD.
Get deeper insights on Enact Holdings, Inc.
Access full AI analysis, insider trading data, fund holdings, and cross-signal detection on SignalX.