Overview

* Enact Holdings ( ACT ) Q2 revenue missed analyst expectations, per LSEG data

* Adjusted diluted operating income per share beat estimates, per LSEG data

* Company increased full-year capital return guidance to about $400 mln

Outlook

* Enact Holdings ( ACT ) raises full-year capital return guidance to $400 mln

* Company confident in housing market fundamentals

* Enact Holdings ( ACT ) focuses on risk and expense management

* Company invests in business amid evolving market conditions

Result Drivers

* INSURANCE IN-FORCE - Primary insurance in-force increased by 1% from Q1 2025, reaching $270 bln

* LOSS RATIO IMPROVEMENT - Loss ratio improved to 10% from 12% in Q1 2025, attributed to a $48 mln reserve release from favorable cure performance and loss mitigation activities

* INVESTMENT INCOME - Net investment income rose to $66 mln in Q2 from $63 mln in Q1, contributing to the adjusted operating income of $174 mln

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Miss $304.89 $307.60

Revenue mln mln (3

Analysts

)

Q2 Adj. Beat $1.15 $1.1 (6

Diluted Analysts

Operatin )

g Income

per

share

Q2 EPS $1.11

Q2 Net $168 mln

Income

Q2 $174 mln

Adjusted

Operatin

g Income

Q2 22.0%

Expense

Ratio

Q2 ROE 13.0%

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 3 "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 ( ACT ) is $40.00, about 11.9% above its July 29 closing price of $35.26

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

Press Release:

(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.)