Enact Announces 14% Increase to Quarterly Dividend and New $350 Million Share Repurchase Program

Rhea-AI Summary

Enact Holdings has announced two significant shareholder-friendly moves: a 14% increase in quarterly dividend to $0.21 per common share and a new $350 million share repurchase program. The enhanced dividend will be paid on June 11, 2025, to shareholders of record as of May 19, 2025.

The new buyback program complements the existing $250 million program, which has $6 million remaining as of April 25, 2025. CEO Rohit Gupta emphasized that these initiatives demonstrate the company's commitment to shareholder value creation. The company has consistently raised its quarterly dividend annually since its inception three years ago.

Enact has arranged with Genworth Holdings to maintain its current ownership stake through the repurchase program. The buyback will be executed through various methods, including open market purchases and private transactions, with timing based on market conditions, regulatory requirements, and other factors.

Positive

• 14% increase in quarterly dividend to $0.21 per share
• New $350M share repurchase program authorized
• $6M still remaining from previous $250M buyback program
• Consistent dividend increases for three consecutive years
• Agreement with Genworth Holdings to maintain ownership structure during buybacks

Negative

• None.

Insights

Financial Capital Allocation Specialist

Enact's 14% dividend increase and new $350M buyback program signal strong shareholder returns, continuing three-year pattern of dividend growth.

Enact Holdings has announced two significant capital return initiatives that demonstrate a shareholder-friendly allocation strategy. The company is increasing its quarterly dividend by 14% to $0.21 per share while simultaneously authorizing a new $350 million share repurchase program.

This dividend increase continues a positive trend, as CEO Rohit Gupta noted they've raised the dividend annually since its inception three years ago. The new buyback authorization is particularly substantial when considered alongside the $6 million remaining from their current $250 million program, giving the company a combined $356 million in authorized repurchase capacity.

The structured approach to the buyback program includes an agreement with parent company Genworth Holdings to maintain its current ownership percentage during repurchases. This arrangement provides clarity on execution while still allowing for share count reduction, which can enhance earnings per share metrics for remaining shareholders.

Both actions reflect the Board's confidence in the company's business fundamentals as explicitly stated by the CEO. For investors, these tangible capital return initiatives provide clear evidence of the company's commitment to returning value to shareholders while maintaining operational flexibility through the opportunistic nature of the repurchase program.

RALEIGH, N.C., April 30, 2025 (GLOBE NEWSWIRE) -- Enact Holdings, Inc. (Nasdaq: ACT) announced that its Board of Directors declared a quarterly dividend of $0.21 per common share, an increase of 14% from the prior quarter’s dividend. This dividend will be payable on June 11, 2025, to shareholders of record on May 19, 2025.

Additionally, Enact’s Board of Directors authorized a new share repurchase program under which the company may purchase up to $350 million of its common stock. The new share repurchase authorization is in addition to the company’s current $250 million share repurchase program, of which $6 million remains as of April 25, 2025.

“Our increased dividend and new share repurchase program reflect our continued commitment to creating value for our shareholders,” said Rohit Gupta, Enact’s President and Chief Executive Officer. “With today’s announcement, we have raised our quarterly dividend every year since its inception three years ago, underscoring the strength of our financial performance and confidence in our business. Going forward we will continue to take a thoughtful and disciplined approach to our capital allocation priorities.”

Enact’s new share repurchase program authorizes the purchase of up to $350 million of the company’s common stock utilizing a variety of methods, including open market purchases, and privately negotiated transactions, and may be made under Rule 10b5-1 and Rule 10b-18 trading plans, at such times and in such amounts as management deems appropriate. In support, Enact has entered into an agreement with Genworth Holdings, Inc. to repurchase its Enact shares as part of the program to maintain Genworth’s current ownership interest in Enact.

Enact expects the timing and amount of any share repurchases will be opportunistic and will depend on a variety of factors, including Enact’s share price, capital availability, business and market conditions, regulatory requirements, and debt covenant restrictions. The program does not obligate Enact to acquire any amount of common stock, it may be suspended or terminated at any time at the Company’s discretion without prior notice, and it does not have a specified expiration date.

About Enact Holdings, Inc.
Enact (Nasdaq: ACT), operating principally through its wholly-owned subsidiary Enact Mortgage Insurance Corporation since 1981, is a leading U.S. private mortgage insurance provider committed to helping more people achieve the dream of homeownership. Building on a deep understanding of lenders' businesses and a legacy of financial strength, we partner with lenders to bring best-in class service, leading underwriting expertise, and extensive risk and capital management to the mortgage process, helping to put more people in homes and keep them there. By empowering customers and their borrowers, Enact seeks to positively impact the lives of those in the communities in which it serves in a sustainable way. Enact is headquartered in Raleigh, North Carolina.

This press release was published by a CLEAR® Verified individual.

Investor Contact
Daniel Kohl
EnactIR@enactmi.com

Media Contact
Sarah Wentz
Sarah.Wentz@enactmi.com

FAQ

How much did Enact (ACT) increase its dividend in Q2 2025?

Enact increased its quarterly dividend by 14% to $0.21 per common share, payable on June 11, 2025, to shareholders of record on May 19, 2025.

What is the size of Enact's new share buyback program announced in April 2025?

Enact announced a new $350 million share repurchase program, in addition to the $6 million remaining from their current $250 million program.

When will Enact (ACT) pay its increased dividend of $0.21 per share?

Enact will pay the increased dividend of $0.21 per share on June 11, 2025, to shareholders who own the stock as of May 19, 2025 (record date).

How will Enact's share repurchase program affect Genworth's ownership stake?

Enact has arranged with Genworth Holdings to repurchase its shares as part of the program to maintain Genworth's current ownership percentage in Enact.

How long has Enact (ACT) been paying dividends?

According to the press release, Enact has raised its quarterly dividend every year since its inception three years ago, meaning they started paying dividends in 2022.

What methods will Enact use for its $350M stock buyback program?

Enact will use various methods including open market purchases and privately negotiated transactions, potentially using Rule 10b5-1 and Rule 10b-18 trading plans.