ACT

Enact Holdings is a leading US private mortgage insurer, providing credit protection to lenders on low-down-payment loans across all 50 states since 1981. The economics are strong and stable: FY2025 revenue grew 2.8% to $1.24B, net income was $674M at an exceptional 54.6% net margin, and diluted EPS rose 3.4% to $4.52. Profitability has been remarkably consistent ($666M, $688M, $674M over the last three years), reflecting a seasoned in-force book with a benign credit backdrop, a CRT reinsurance program that spreads risk and frees capital, and investment income on a high-quality fixed-income portfolio.

The balance sheet and capital returns are the standout. Liabilities/equity is just 0.29x — very conservative for an insurer — with $5.36B equity (+7.2%), modest $744M debt, and retained earnings up 17.7% to $3.68B. Management is returning capital aggressively: $382M of buybacks (+56.7%) shrank shares 6.8%, and the dividend rose 8.2% to $121M, both funded comfortably by $725M of operating cash flow (+5.6%). A 12.6% ROE is healthy for a well-capitalized mortgage insurer.