Executive Summary

Q4 2024 delivered solid profitability with GAAP net income of $163M ($1.05 diluted EPS) and adjusted operating income of $169M ($1.09 adjusted diluted EPS); ROE was 13.0% (adjusted 13.5%) as reserve releases continued to support results .
Core KPIs were resilient: primary insurance-in-force (IIF) hit a record $269B; persistency stayed elevated at 82%; net premiums earned were $246M; loss ratio ticked up to 10% on a smaller reserve release versus Q3; expense ratio was 24% .
Capital strength and returns remain key: PMIERs sufficiency stood at 167% ($2.1B above requirements); 2024 capital returned totaled $354M; Board declared a $0.185 dividend; management targets 2025 capital returns in line with ~$350M in 2024 while keeping flexibility .
Strategic CRT execution and ratings momentum: Enact executed forward quota share and XOL deals for 2025–2026, and Fitch upgraded EMICO to A and senior debt to BBB in Jan-2025, reinforcing balance sheet resilience and capital flexibility .
Consensus comparisons: S&P Global EPS/revenue consensus for Q4 2024 was unavailable at time of this report (SPGI API limit). We cannot characterize a beat/miss vs. Street; we will update once available (S&P Global data unavailable).

What Went Well and What Went Wrong

What Went Well

Record IIF and resilient premiums despite macro headwinds: Primary IIF reached $269B (+2% YoY) with net premiums earned of $246M (+2% YoY), supported by attractive adjacencies and portfolio growth .
Strong capital and active capital returns: PMIERs sufficiency of 167% ($2.1B above requirements); $354M capital returned in 2024; Q4 dividend of $0.185 declared; ongoing buybacks (2.1M shares for $74M in Q4) .
Credit performance and reserve releases remained supportive: Reserve release of $56M on strong cures (52% cure rate), helping keep loss ratio at 10% amid seasonal delinquency uptick and hurricane effects .

Management quotes:

“Our very strong performance in 2024 underscores the effectiveness of our strategy and the continued successful execution of our priorities.” — Rohit Gupta, CEO .
“We remain committed to prudent risk management and capital optimization while also supporting our ability to serve our customers.” — Hardin (Dean) Mitchell, CFO (re CRT program) .

What Went Wrong

Sequential margin compression: Loss ratio rose to 10% from 5% in Q3, driven by a smaller reserve release and higher new delinquencies ex-hurricanes (+1%) .
Slight premium pressure QoQ: Net premiums earned decreased 1% sequentially, primarily from higher ceded premiums (quota share dynamics) .
Expenses up QoQ: Operating expenses increased to $58M and expense ratio to 24% (incentive comp), partly offset by full-year cost initiatives; sequential step-up from 22% in Q3 .

Financial Results

Core P&L and Margins (oldest → newest)

Metric	Q4 2023	Q3 2024	Q4 2024
Total Revenues ($M)	$296.190	$309.588	$301.776
Net Premiums Earned ($M)	$240	$249	$246
Net Investment Income ($M)	$56	$61	$63
Net Investment Gains (Losses) ($M)	$(0.9)	$(1.2)	$(7.2)
GAAP Diluted EPS ($)	$0.98	$1.15	$1.05
Adjusted Diluted EPS ($)	$0.98	$1.16	$1.09
Loss Ratio (%)	10%	5%	10%
Expense Ratio (%)	25%	22%	24%
Annualized ROE (%)	13.8%	14.7%	13.0%
Adjusted Annualized ROE (%)	13.9%	14.8%	13.5%

Notes: Q/Q softness reflects higher ceded premiums and smaller reserve release; investment income benefited from higher yields .

Revenue Components (oldest → newest)

Revenue Component ($000s)	Q4 2023	Q3 2024	Q4 2024
Premiums	$240,101	$249,055	$245,735
Net Investment Income	$56,161	$61,056	$62,624
Net Investment Gains (Losses)	$(876)	$(1,243)	$(7,167)
Other Income	$804	$720	$584
Total Revenues	$296,190	$309,588	$301,776

KPIs and Balance Sheet (oldest → newest)

KPI	Q4 2023	Q3 2024	Q4 2024
New Insurance Written (NIW, $B)	$10	$14	$13
Primary IIF ($B)	$263	$268	$269
Primary Persistency (%)	86%	83%	82%
Net Premiums Earned ($M)	$240	$249	$246
Losses Incurred ($M)	$24	$12	$24
Primary Delinquency Rate (%)	2.10%	2.17%	2.45%
PMIERs Sufficiency ($M)	$1,887	$2,190	$2,052
PMIERs Sufficiency (%)	161%	173%	167%
Book Value/Share ($)	$29.07	$32.61	$32.80

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Operating Expenses ($M)	FY 2025	N/A	$220–$225	New range issued (maintain discipline while investing)
Capital Return to Shareholders	FY 2025	N/A	“Aligned with” ~$350M returned in 2024 (subject to conditions)	Qualitative affirmation (similar to 2024)
Quarterly Dividend ($/share)	Ongoing	$0.185 (Q3/Q4 2024)	$0.185 declared for March 14, 2025 payment	Maintained
Base Premium Rate	2025	N/A	Expected to stabilize around current ~40 bps	Maintain near current levels
CRT Program Mix	2025–2026	N/A	~27% of a portion of expected NIW ceded via quota shares; forward XOL coverage in place	Programmatic CRT extended

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2, Q3)	Current Period (Q4)	Trend
Credit performance & reserve releases	Q2: $77M reserve release; claim rate lowered to 9%; delinquency rate 2.0% . Q3: $65M reserve release; delinquency rate 2.2% .	Q4: $56M reserve release; cures 52%; delinquency rate 2.45% (hurricane noise) .	Stable but seasonally softer with disaster impact.
Pricing & premium rates	Q2: Base rate ~40.3 bps; “flattish” trend anticipated . Q3: Constructive pricing, net earned rate 36.3 bps .	Q4: Base rate ~40 bps to stabilize around current levels; net premium rate 35.5 bps (higher ceding) .	Stable base, net impacted by ceding.
Persistency & IIF growth	Q2: Persistency 83%; record IIF $266B . Q3: Persistency 83%; IIF $268B .	Q4: Persistency 82%; record IIF $269B .	High persistency supports IIF despite volumes.
Capital returns	Q2: New $250M buyback; guided $300–$350M 2024 . Q3: Upper half of range; $100M returned in Q3 .	Q4: $354M returned in 2024; 2025 capital return targeted near $350M (flexible) .	Strong, ongoing.
CRT & reinsurance	Q2: $90M XOL; cleanup calls; 77% RIF covered . Q3: 79% RIF covered; S&P A- to Enact Re .	Q4: Forward quota share (~27%) and forward XOL for 2025/26 executed .	Strategic, cost-effective CRT extended.
Ratings & funding	Q2: $750M IG notes; $2M annual interest savings . Q3: Enact Re A- by S&P .	Q4/Jan-25: Fitch upgrades EMICO to A; senior debt to BBB (stable) .	Improving external validation.
Technology/modernization	Q2/Q3: Investments to modernize tech and drive efficiency .	Q4: Continued expense discipline while investing in modernization .	Ongoing execution.
Policy/regulatory	Q3: Industry well-positioned across administrations .	Q4: Constructive stance on potential admin/GSE changes; MI puts private capital first .	Stable engagement.

Management Commentary

Strategy and execution: “In a complex economic environment, we responsibly grew our portfolio, drove operational efficiencies, maintained a strong balance sheet and generated meaningful capital returns to our shareholders.” — Rohit Gupta, CEO .
Credit and cures: “A resilient consumer, strong embedded equity and our loss mitigation efforts continued to drive robust cure rates at 52% for the quarter.” — Rohit Gupta .
Premium and ceding dynamics: “Our net earned premium rate was 35.5 bps, down 0.8 bps sequentially, driven by higher ceded premiums” — Hardin (Dean) Mitchell, CFO .
Expense outlook: “For 2025, we anticipate a range of $220M to $225M as we continue to prudently manage our expense base while also investing in our growth initiatives and modernization” — CFO .
Capital returns: “We expect capital return to shareholders to be aligned with the $350 million returned in 2024… subject to market conditions and regulatory approvals” — CFO .

Q&A Highlights

Capital return cadence: Management guides to ~$350M for 2025 with flexibility to reassess upward if performance/macro/regulatory backdrop improve, mirroring 2024 mid-year raise process .
Enact Re trajectory: Adjacency continues to perform with attractive risk-adjusted returns; potential for greater GSE CRT volume under various scenarios; growth expected to be gradual and disciplined .
Portfolio seasoning and delinquencies: Average age 3.8 years approaches plateau; new delinquency development should begin to slow excluding macro/natural disaster noise .
2023 origination vintage: Early, but performing well with no emerging deterioration noted .
Disaster impact: Q4 included hurricane-related delinquencies (booked at 2% claim rate vs. 9% baseline) given historically high cure rates on hurricane delinquencies .

Estimates Context

We attempted to pull S&P Global consensus (EPS and revenue) for Q4 2024 and the prior two quarters; however, the SPGI service returned a daily limit error. As a result, we cannot assess beats/misses versus Wall Street consensus at this time (S&P Global data unavailable). We will update these comparisons upon access restoration.
Company did not provide explicit revenue/EPS guidance ranges; 2025 commentary focused on OpEx range, CRT execution, and capital return cadence .

Key Takeaways for Investors

Elevated persistency and record IIF continue to underpin earnings power even with muted origination volumes; portfolio quality and embedded equity support strong cures and reserve releases .
CRT strategy (forward quota share and XOL for 2025/26) plus ratings momentum bolster capital efficiency and resilience, sustaining robust PMIERs sufficiency and enabling continued shareholder returns .
Near-term margin dynamics hinge on ceding (lowering net earned rate modestly) and the cadence of reserve releases; investment income tailwind persists as the book yield increases with elevated rates .
Expense outlook is disciplined ($220–$225M in 2025) while funding modernization; this provides visibility on cost structure into next year .
2025 capital return guide (~$350M) remains a central pillar; upside flexibility exists contingent on performance/macro/regulatory conditions .
Disaster-related delinquencies should largely cure given policy design, but seasonality and aging dynamics bear monitoring into 1H25 (primary delinquency rate rose to 2.45% in Q4) .
Pending consensus context: once S&P Global estimates are accessible, assess whether sustained reserve releases, rising investment income, and ceding impacts net to beats/misses.

Appendix: Additional Capital and Liquidity Facts

PMIERs sufficiency 167% ($2.052B) vs. 173% ($2.190B) in Q3; Enact held $243M cash and $298M invested assets at HoldCo as of 12/31/24; debt-to-capital 13% .
2024 shareholder returns: $243M buybacks (7.6M shares at avg $31.95) and dividends; in Q4, 2.1M shares repurchased for $74M; additional 0.6M shares in January 2025 for $19M .

All figures and statements above are sourced from Enact’s Q4 2024 press release and 8-K, the Q4 2024 earnings call, and related press releases, as cited inline.

Enact Holdings, Inc. (ACT)·Q4 2024 Earnings Summary