Enact Holdings beats Q2 adjusted operating income estimates
Overview
Enact Holdings 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 raises full-year capital return guidance to $400 mln
Company confident in housing market fundamentals
Enact Holdings 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/Miss | Actual | Consensus Estimate |
Q2 Revenue | Miss | $304.89 mln | $307.60 mln (3 Analysts) |
Q2 Adj. Diluted Operating Income per share | Beat | $1.15 | $1.1 (6 Analysts) |
Q2 EPS |
| $1.11 |
|
Q2 Net Income |
| $168 mln |
|
Q2 Adjusted Operating Income |
| $174 mln |
|
Q2 Expense Ratio |
| 22.0% |
|
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 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: ID:nGNX1TbCqG
