Enact Holdings Q3 profit beats expectations on higher investment income

Enact Holdings

05/11/2025 21:33

Overview

Enact Holdings Q3 revenue slightly beats analyst expectations

Adjusted diluted operating income per share beats analyst expectations

Company raises full-year capital return guidance to $500 mln

Outlook

Enact raises full-year capital return guidance to $500 mln

Company secures new $435 mln five-year revolving credit facility

Enact positions for evolving housing market with financial flexibility

Result Drivers

PRIMARY INSURANCE IN-FORCE - Increased 2% year-over-year to $272 bln, indicating stable demand

EXPENSE MANAGEMENT - Operating expenses remained stable at $53 mln, maintaining an expense ratio of 22%

INVESTMENT INCOME - Net investment income increased to $69 mln, driven by higher interest rates and invested assets

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Slight Beat*
$311.46 mln
$310.30 mln (3 Analysts)
Q3 Adj. Diluted Operating Income per share
Beat
$1.12
$1.07 (5 Analysts)
Q3 EPS
$1.10
Q3 Net Income
$163 mln
Q3 Adjusted Operating Income
$166 mln
Q3 Expense Ratio
22.00%
Q3 ROE
12.40%


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the property & casualty insurance peer group is "buy."

Wall Street's median 12-month price target for Enact Holdings Inc is $40.00, about 8.8% above its November 4 closing price of $36.48

The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release: ID:nGNX9xVMxW

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)