Financial analysis of Allergan

Enact Holdings (ACT) – FY2025 Annual Report

Enact appears to have closed FY2025 in a stable but slightly softer profitability position. Revenue reached roughly $1.24 billion, up modestly from the prior year, while net income of $674 million came in below FY2024's $688 million. The most striking contrast lies not in the operating results but in the stock's valuation: the price-to-earnings multiple appears to have tripled to around 40x, driven by a share price that climbed from roughly $59 to $181 over the year, even as earnings edged lower.

The revenue picture reflects a business whose core premium base has essentially plateaued—premiums earned barely moved year over year—while net investment income has become an increasingly meaningful contributor, rising to $266 million. What stands out most on the profitability side is the sharp increase in losses incurred, which nearly tripled to roughly $110 million. This jump, combined with a growing claims reserve, may suggest a normalization of credit conditions after several unusually benign years, and it appears to be the primary reason margins have continued to compress from the mid-60s percent range in 2022 toward the mid-50s today.