Short answer
Enact Holdings, Inc. (ACT) filed its fiscal 2025 10-K annual report with the SEC on Feb 27, 2026. It reported revenue of $1.2B (+2.8% year over year) and net income of $674M.
- Top risk flagged: Regulatory risk from FHFA/PMIERs affecting capital relief via Credit Risk Transfer program, essential for risk and capital management
FY2025 key financial metrics · XBRL
- Revenue
- $1.2B
- +2.8% YoY
- Net income
- $674M
- −2.0% YoY
- EPS (diluted)
- $4.52
- +3.4% YoY
- ROE
- 12.6%
- −1.2 pp YoY
- Operating cash flow
- $725M
- +5.6% YoY
Source: XBRL data from the Enact Holdings, Inc. (ACT) FY2025 10-K on SEC EDGAR. USD.
Enact Holdings, Inc. FY2025 10-K analysis
AI summary of each section, grounded in the filing text
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
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