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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2025
OR
☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from    to
Commission File Number: 001-40399
Enact Logo.jpg
Enact Holdings, Inc.
(Exact name of registrant as specified in its charter)
Delaware46-1579166
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification Number)
8325 Six Forks Road
Raleigh, North Carolina 27615
(919) 846-4100
(Address, including zip code, and telephone number, including area code, of registrant’s principal executive offices)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common Stock, par value $0.01 per shareACT
The Nasdaq Stock Market, LLC
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer☒Accelerated filer☐
Non-accelerated filer☐Smaller reporting company☐
Emerging growth company☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
As of November 3, 2025, there were 144,395,767 shares of Common Stock, par value $0.01 per share, outstanding.


TABLE OF CONTENTS
Page
1

Cautionary Note Regarding Forward-Looking Statements
This Quarterly Report on Form 10-Q, including Management’s Discussion and Analysis of Financial Condition and Results of Operations, contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act. These forward-looking statements may address, among other things, our expected financial and operational results, the related assumptions underlying our expected results and the quotations of management. These forward-looking statements are distinguished by use of words such as “will,” “would,” “anticipate,” “expect,” “believe,” “designed,” “plan,” or “intend,” the negative of these terms and similar references to future periods. These views involve risks and uncertainties that are difficult to predict and, accordingly, our actual results may differ materially from the results discussed in our forward-looking statements. Our forward-looking statements contained herein speak only as of the date of this quarterly report.
Although Enact Holdings, Inc. (the “Company”) believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, the Company can give no assurance that its expectations will be achieved and it undertakes no obligation to update publicly any forward-looking statements as a result of new information, future events, or otherwise, except as required by applicable law. Factors or events that we cannot predict, including the following, may cause our actual results to differ from those expressed in forward-looking statements:
•inability to continue to maintain the private mortgage insurer eligibility requirements (“PMIERs”) or any other restrictions imposed on us by the Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie Mac”), government-sponsored enterprises collectively referred to as the “GSEs”;
•deterioration in economic conditions, a decline in home prices or a severe recession, including from the impact of tariffs and other government economic policies;
•uncertainty around the time loans remain in our delinquent inventory including effects of forbearance programs and foreclosure timing;
•uncertainty of our loss reserve estimates or inaccuracies in our models;
•competition for our customers or the loss of a significant customer;
•changes to the charters or practices of the GSEs, including actions or decisions to decrease or discontinue the use of mortgage insurance;
•lenders or investors seeking alternatives to private mortgage insurance;
•failure of our risk management or loss mitigation strategies;
•risks related to emerging and changing technologies, including artificial intelligence;
•fluctuations in interest rates;
•limited availability of capital and the need to seek additional capital on unfavorable terms;
•limited availability of reinsurance;
•adverse actions by rating agencies;
•competition with government-owned enterprises and GSEs;
•failure to manage the risk in our investment portfolio;
•disruption in the servicing of mortgages covered by our insurance policies or poor servicer performance;
2

•unanticipated claims arising under and risks associated with our delegated underwriting program or contract underwriting program;
•inadequacy of the premiums we charge to compensate for the losses we incur;
•decrease in the volume of Low-Down Payment Loan originations;
•failure to protect our confidential customer information;
•adverse changes in regulatory requirements;
•inability to maintain sufficient regulatory capital;
•risks relating to our continuing relationship with Genworth Financial, Inc.;
•changes in tax laws;
•litigation, regulatory investigations or other actions;
•inability to attract and retain key employees;
•failure or any compromise of the security of our computer systems, disaster recovery systems, business continuity plans and failures to safeguard or breaches of confidential information; and
•occurrence of natural or man-made disasters or public health emergencies, including pandemics and disasters caused or exacerbated by climate change.
We provide additional information regarding these and other risks and uncertainties in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, as filed with the U.S. Securities and Exchange Commission (“SEC”) on February 28, 2025. In addition, unlisted factors may present significant additional obstacles to the realization of forward-looking statements. We therefore caution you against relying on any forward-looking statements.
3

Part I. Financial Information
Item 1. Financial Statements
ENACT HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
 September 30,
2025		December 31,
2024
(Amounts in thousands, except par value amount)(Unaudited) 
Assets  
Fixed maturity securities available-for-sale, at fair value (amortized cost of $6,115,304 and $5,876,502 as of September 30, 2025, and December 31, 2024, respectively)
$6,068,501 $5,624,773 
Short-term investments, at fair value2,002 3,367 
Total investments6,070,503 5,628,140 
Cash and cash equivalents543,577 599,432 
Accrued investment income53,895 49,595 
Deferred acquisition costs22,521 23,771 
Premiums receivable48,648 53,031 
Other assets114,114 102,549 
Deferred tax asset23,185 65,013 
Total assets$6,876,443 $6,521,531 
Liabilities and equity
Liabilities:
Loss reserves$572,054 $524,715 
Unearned premiums96,031 114,680 
Other liabilities146,958 142,990 
Long-term borrowings744,114 743,050 
Total liabilities1,559,157 1,525,435 
Equity:
Common stock ($0.01 par value; 600,000 shares authorized; 145,566 shares issued and outstanding as of September 30, 2025, and 152,318 shares issued and outstanding as of December 31, 2024)
1,456 1,523 
Additional paid-in capital1,826,764 2,076,788 
Accumulated other comprehensive income(41,785)(207,455)
Retained earnings3,530,851 3,125,240 
Total equity5,317,286 4,996,096 
Total liabilities and equity$6,876,443 $6,521,531 
See Notes to Condensed Consolidated Financial Statements
4

ENACT HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

 Three months ended
September 30,		Nine months ended
September 30,
(Amounts in thousands, except per share amounts)2025202420252024
Revenues:
Premiums$244,688 $249,055 $734,763 $734,369 
Net investment income68,611 61,056 197,532 177,940 
Net investment gains (losses)(2,834)(1,243)(13,420)(15,640)
Other income990 720 4,246 3,329 
Total revenues311,455 309,588 923,121 899,998 
Losses and expenses:
Losses incurred35,885 12,164 91,715 14,844 
Acquisition and operating expenses, net of deferrals50,500 53,091 151,192 157,985 
Amortization of deferred acquisition costs and intangibles2,344 2,586 6,978 7,137 
Interest expense12,897 12,290 37,484 38,895 
Loss on debt extinguishment— — — 10,930 
Total losses and expenses101,626 80,131 287,369 229,791 
Income before income taxes
209,829 229,457 635,752 670,207 
Provision for income taxes46,332 48,788 138,669 144,877 
Net income$163,497 $180,669 $497,083 $525,330 
Net income per common share:
Basic$1.11 $1.16 $3.32 $3.34 
Diluted$1.10 $1.15 $3.30 $3.31 
Weighted average common shares outstanding:
Basic147,434 155,561 149,735 157,191 
Diluted148,340 157,016 150,659 158,558 
See Notes to Condensed Consolidated Financial Statements
5

ENACT HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)

 Three months ended
September 30,		Nine months ended
September 30,
(Amounts in thousands)2025202420252024
Net income$163,497 $180,669 $497,083 $525,330 
Other comprehensive income (loss), net of taxes:
Net unrealized gains (losses) on securities without an allowance for credit losses
63,814 134,319 170,962 128,412 
Foreign currency translation gain (loss)(1,257)2 (5,292)4 
Other comprehensive income (loss)62,557 134,321 165,670 128,416 
Total comprehensive income (loss)$226,054 $314,990 $662,753 $653,746 
See Notes to Condensed Consolidated Financial Statements
6

ENACT HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(Unaudited)
Three months ended September 30, 2025
(Amounts in thousands)
Common
stock
Additional
paid-in
capital
Accumulated
other
comprehensive
income (loss)
Retained
earnings
Total
equity
Balance as of June 30, 2025$1,484 $1,927,372 $(104,342)$3,398,614 $5,223,128 
Comprehensive income (loss):
Net income— — — 163,497 163,497 
Other comprehensive income (loss), net of taxes— — 62,557 — 62,557 
Repurchase of common stock(28)(105,324)— — (105,352)
Stock-based compensation expense and exercises and other— 4,716 — (302)4,414 
Dividends— — — (30,958)(30,958)
Balance as of September 30, 2025$1,456 $1,826,764 $(41,785)$3,530,851 $5,317,286 
Three months ended September 30, 2024
(Amounts in thousands)
Common
stock
Additional
paid-in
capital
Accumulated
other
comprehensive
income (loss)
Retained
earnings
Total
equity
Balance as of June 30, 2024$1,561 $2,220,903 $(236,305)$2,839,670 $4,825,829 
Comprehensive income (loss):
Net income— — — 180,669 180,669 
Other comprehensive income (loss), net of taxes— — 134,321 — 134,321 
Repurchase of common stock(22)(71,251)— — (71,273)
Stock-based compensation expense and exercises and other5 (4,134)— (394)(4,523)
Dividends— — — (28,778)(28,778)
Balance as of September 30, 2024$1,544 $2,145,518 $(101,984)$2,991,167 $5,036,245 

See Notes to Condensed Consolidated Financial Statements
7

Nine months ended September 30, 2025
(Amounts in thousands)
Common
stock
Additional
paid-in
capital
Accumulated
other
comprehensive
income (loss)
Retained
earnings
Total
equity
Balance as of December 31, 2024$1,523 $2,076,788 $(207,455)$3,125,240 $4,996,096 
Comprehensive income (loss):
Net income— — — 497,083 497,083 
Other comprehensive income (loss), net of taxes— — 165,670 — 165,670 
Repurchase of common stock(71)(255,399)— — (255,470)
Stock-based compensation expense and exercises and other4 5,375 — (929)4,450 
Dividends— — — (90,543)(90,543)
Balance as of September 30, 2025$1,456 $1,826,764 $(41,785)$3,530,851 $5,317,286 
Nine months ended September 30, 2024
(Amounts in thousands)
Common
stock
Additional
paid-in
capital
Accumulated
other
comprehensive
income (loss)
Retained
earnings
Total
equity
Balance as of December 31, 2023$1,593 $2,310,891 $(230,400)$2,550,263 $4,632,347 
Comprehensive income (loss):
Net income— — — 525,330 525,330 
Other comprehensive income (loss), net of taxes— — 128,416 — 128,416 
Repurchase of common stock(55)(169,552)— — (169,607)
Stock-based compensation expense and exercises and other6 4,179 — (1,108)3,077 
Dividends— — — (83,318)(83,318)
Balance as of September 30, 2024$1,544 $2,145,518 $(101,984)$2,991,167 $5,036,245 
See Notes to Condensed Consolidated Financial Statements
8

ENACT HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
 Nine months ended
September 30,
(Amounts in thousands)20252024
Cash flows from operating activities:  
Net income$497,083 $525,330 
Adjustments to reconcile net income to net cash provided by operating activities:
Net investment (gains) losses13,420 15,640 
Amortization of fixed maturity securities discounts and premiums(10,802)(8,331)
Amortization of deferred acquisition costs and intangibles6,978 7,137 
Acquisition costs deferred(3,874)(4,349)
Deferred income taxes7,851 3,409 
Stock-based compensation expense12,610 13,341 
Amortization of debt issuance costs1,064 1,610 
Loss on debt extinguishment— 10,930 
Change in certain assets and liabilities:
Accrued investment income(4,300)(4,395)
Premiums receivable4,383 (3,764)
Other assets(19,499)833 
Loss reserves47,339 (7,790)
Unearned premiums(18,649)(27,948)
Other liabilities4,649 (1,521)
Net cash provided by operating activities538,253 520,132 
Cash flows from investing activities:
Purchases of fixed maturity securities available-for-sale(1,529,577)(1,123,316)
Purchases of limited partnerships and equity interests(500)(5,512)
Proceeds from sales of fixed maturity securities available-for-sale644,757 409,168 
Proceeds from maturities of fixed maturity securities available-for-sale652,771 529,787 
Net change in short-term investments1,369 18,672 
Other(5,266)(12,412)
Net cash used in investing activities(236,446)(183,613)
Cash flows from financing activities:
Net proceeds from the issuance of long-term debt— 749,648 
Debt issuance costs— (7,373)
Redemption of long-term debt
— (757,500)
Repurchase of common stock(255,377)(169,321)
Dividends paid(90,543)(83,318)
Other(11,742)(10,975)
Net cash used in financing activities(357,662)(278,839)
Net increase (decrease) in cash and cash equivalents(55,855)57,680 
Cash and cash equivalents at beginning of period599,432 615,683 
Cash and cash equivalents at end of period$543,577 $673,363 
See Notes to Condensed Consolidated Financial Statements
9
ENACT HOLDINGS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
(1)Nature of business, organization structure and basis of presentation
The accompanying unaudited condensed consolidated financial statements include, on a consolidated basis, the accounts of Enact Holdings, Inc. (“EHI,” together with its subsidiaries, the “Company,” “we,” “us” or “our”). EHI is a subsidiary of Genworth Financial, Inc. (“Genworth”) and has been since EHI’s incorporation in Delaware in 2012. In September 2021, we completed a minority initial public offering (“IPO”) of 18.4% of EHI’s common stock.
We are engaged in the business of writing and assuming residential mortgage guaranty insurance. The insurance protects lenders and investors against certain losses resulting from nonpayment of loans secured by mortgages, deeds of trust, or other instruments constituting a lien on residential real estate. We offer private mortgage insurance products predominantly insuring prime-based, individually underwritten residential mortgage loans (“primary mortgage insurance”). Our primary mortgage insurance enables borrowers to buy homes with a down payment of less than 20% of the home’s value. Primary mortgage insurance also facilitates the sale of these low down payment mortgage loans in the secondary mortgage market, most of which are sold to government-sponsored enterprises. We also selectively enter into insurance transactions with lenders and investors, under which we insure a portfolio of loans at or after origination.
We also perform fee-based contract underwriting services for mortgage lenders. The provision of underwriting services by mortgage insurers eliminates the duplicative lender and mortgage insurer underwriting activities and expedites the approval process.
We operate our business through our primary insurance subsidiary, Enact Mortgage Insurance Corporation, (“EMICO”), with operations in all 50 states and the District of Columbia. EMICO is an approved insurer by the Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie Mac”). Fannie Mae and Freddie Mac are government-sponsored enterprises, and we refer to them collectively as the “GSEs.”
We also offer mortgage and credit-related insurance and reinsurance through our other subsidiaries, including investing in new opportunities for Enact. One of these subsidiaries, Enact Re Ltd. ("Enact Re"), our wholly owned Bermuda-based subsidiary, also reinsures EMICO’s new and existing insurance in-force under quota share reinsurance agreements.
We operate our business in a single segment, which is how our chief operating decision maker (“CODM”), who is our Chief Executive Officer, reviews our financial performance and allocates resources.
The accompanying condensed consolidated financial statements are unaudited and have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). Preparing financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect reported amounts and related disclosures. Actual results could differ from those estimates. These unaudited condensed consolidated financial statements include all adjustments (including normal recurring adjustments) considered necessary by management to present a fair statement of the financial position, results of operations and cash flows for the periods presented. The results reported in these unaudited condensed consolidated financial statements should not be regarded as necessarily indicative of results that may be expected for the entire year. The unaudited condensed consolidated financial statements included herein should be read in conjunction with the audited consolidated financial statements and related notes for the years ended December 31, 2024 and 2023.
10
ENACT HOLDINGS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
(2)Accounting changes
Accounting Pronouncements Recently Adopted
We have not adopted new accounting pronouncements in 2025.
Accounting Pronouncements Not Yet Adopted
Income Tax Disclosure
In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, to improve income tax disclosures. The guidance requires annual disclosure of specific categories in the income tax rate reconciliation, separate disclosure of additional information related to reconciling items that meet a quantitative threshold and additional disclosures about income taxes paid, among other qualitative and quantitative disclosure improvements. The guidance will have no impact on our consolidated financial statements but will expand our disclosures effective for annual reporting periods beginning on January 1, 2025 and will be adopted using the retrospective method.
Income Statement Disaggregation
In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires disaggregated disclosures in the notes to the financial statements of certain categories of expenses included in our consolidated statements of income, including employee compensation, depreciation and intangible asset amortization. This guidance is effective for us for annual reporting periods beginning on January 1, 2027 and interim periods beginning on January 1, 2028 using the prospective or retrospective method, with early adoption permitted. We are currently evaluating the impact the guidance may have on our processes, controls and disclosures.
Internal-Use Software
In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40) Targeted Improvements to the Accounting for Internal-Use Software, related to accounting for internal-use software costs. The new guidance modified the cost capitalization threshold by removing project development stages and adding evaluation considerations to the probable-to-complete threshold, as well as requiring additional disclosure of internal-use software and related amortization regardless of how the internal-use software is classified on the balance sheet. This guidance is effective for us for interim and annual reporting periods beginning on January 1, 2028 using the prospective, modified retrospective or retrospective method, with early adoption permitted. We are currently evaluating the impact the guidance may have on our processes, controls and disclosures.

11
ENACT HOLDINGS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
(3)Investments
Net Investment Income
Sources of net investment income were as follows for the periods indicated:
Three months ended
September 30,		Nine months ended
September 30,
(Amounts in thousands)
2025202420252024
Fixed maturity securities available-for-sale$64,678 $54,200 $184,415 $157,694 
Cash, cash equivalents and short-term investments6,203 8,713 19,557 25,602 
Gross investment income before expenses and fees70,881 62,913 203,972 183,296 
Investment expenses and fees(2,270)(1,857)(6,440)(5,356)
Net investment income$68,611 $61,056 $197,532 $177,940 
Net Investment Gains (Losses)
The following table sets forth net investment gains (losses) for the periods indicated:
Three months ended
September 30,		Nine months ended
September 30,
(Amounts in thousands)
2025202420252024
Fixed maturity securities available-for-sale:  
Gross realized gains$515 $195 $2,898 $738 
Gross realized (losses)(3,340)(1,438)(15,143)(16,378)
Net realized gains (losses)(2,825)(1,243)(12,245)(15,640)
Write-down of available-for-sale fixed maturity securities— — (1,254)— 
Other(9)— 79 — 
Net investment gains (losses)$(2,834)$(1,243)$(13,420)$(15,640)
There was no allowance for credit losses recorded on fixed maturity securities classified as available-for-sale as of September 30, 2025, and December 31, 2024.
Unrealized Investment Gains (Losses)
Net unrealized gains and losses on available-for-sale securities reflected as a separate component of accumulated other comprehensive income (“AOCI”) were as follows as of the dates indicated:
(Amounts in thousands)
September 30, 2025December 31, 2024
Net unrealized gains (losses) on investment securities:
Fixed maturity securities$(46,803)$(251,729)
Short-term investments1 (3)
Unrealized gains (losses) on investment securities(46,802)(251,732)
Income taxes10,140 44,108 
Net unrealized investment gains (losses)$(36,662)$(207,624)
12
ENACT HOLDINGS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
The change in net unrealized gains (losses) on available-for-sale securities reported in accumulated other comprehensive income was as follows as of and for the periods indicated:
Three months ended
September 30,
(Amounts in thousands)
20252024
Beginning balance$(100,476)$(236,463)
Unrealized gains (losses) arising during the period:
Unrealized gains (losses) on investment securities65,694 169,745 
Provision for income taxes(4,113)(36,407)
Change in unrealized gains (losses) on investment securities61,581 133,338 
Reclassification adjustments to net investment (gains) losses, net of taxes of $(592) and $(262), respectively
2,233 981 
Change in net unrealized investment gains (losses)63,814 134,319 
Ending balance$(36,662)$(102,144)
Nine months ended
September 30,
(Amounts in thousands)
20252024
Beginning balance$(207,624)$(230,556)
Unrealized gains (losses) arising during the period:
Unrealized gains (losses) on investment securities191,430 147,858 
Provision for income taxes(31,133)(31,802)
Change in unrealized gains (losses) on investment securities160,297 116,056 
Reclassification adjustments to net investment (gains) losses, net of taxes of $(2,834) and $(3,284), respectively
10,665 12,356 
Change in net unrealized investment gains (losses)170,962 128,412 
Ending balance$(36,662)$(102,144)
Amounts reclassified out of accumulated other comprehensive income to net investment gains (losses) include realized gains (losses) on sales of securities, which are determined on a specific identification basis.
13
ENACT HOLDINGS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Fixed Maturity Securities Available-For-Sale
As of September 30, 2025, the amortized cost, gross unrealized gains (losses) and fair value of our investment securities were as follows:
(Amounts in thousands)
Amortized
cost
Gross unrealized gainsGross unrealized losses
Fair
value
U.S. government, agencies and GSEs$267,467 $4,474 $(1,076)$270,865 
State and political subdivisions538,139 2,213 (53,459)486,893 
Non-U.S. government174,243 5,542 (386)179,399 
U.S. corporate2,877,618 53,139 (57,779)2,872,978 
Non-U.S. corporate804,040 17,237 (13,753)807,524 
Residential mortgage-backed288,300 4,502 (34)292,768 
Commercial mortgage-backed80,207 1,177 (272)81,112 
Other asset-backed1,085,290 7,062 (15,390)1,076,962 
Total fixed maturity securities available-for-sale$6,115,304 $95,346 $(142,149)$6,068,501 
Short-term investments2,001 1 — 2,002 
Total investments$6,117,305 $95,347 $(142,149)$6,070,503 
As of December 31, 2024, the amortized cost, gross unrealized gains (losses) and fair value of our investment securities were as follows:
(Amounts in thousands)
Amortized
cost
Gross unrealized gains
Gross unrealized losses
Fair
value
U.S. government, agencies and GSEs$281,858 $590 $(5,085)$277,363 
State and political subdivisions541,715 1,388 (75,627)467,476 
Non-U.S. government85,566 94 (1,858)83,802 
U.S. corporate2,943,900 11,363 (129,584)2,825,679 
Non-U.S. corporate800,141 2,533 (30,050)772,624 
Residential mortgage-backed8,394 27 (57)8,364 
Other asset-backed1,214,928 4,716 (30,179)1,189,465 
Total fixed maturity securities available-for-sale$5,876,502 $20,711 $(272,440)$5,624,773 
Short-term investments3,370 1 (4)3,367 
Total investments$5,879,872 $20,712 $(272,444)$5,628,140 

14
ENACT HOLDINGS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Gross Unrealized Losses and Fair Values of Fixed Maturity Securities Available-For-Sale
The following table presents the gross unrealized losses and fair values of our fixed maturity securities for which an allowance for credit losses has not been recorded, aggregated by investment type and length of time that individual fixed maturity securities have been in a continuous unrealized loss position, as of September 30, 2025:
 
Less than 12 months 
12 months or more
Total
(Dollar amounts in thousands)
Fair value 
Gross unrealized losses
Number of securities
Fair value
Gross unrealized losses
Number of securities
Fair value
Gross unrealized losses
Number of securities
Fixed maturity securities:         
U.S. government, agencies and GSEs$34,806 $(889)5 $27,208 $(187)9 $62,014 $(1,076)14 
State and political subdivisions60,160 (3,689)18 388,612 (49,770)75 448,772 (53,459)93 
Non-U.S. government9,314 (58)16 10,879 (328)3 20,193 (386)19 
U.S. corporate112,455 (2,509)29 1,033,678 (55,270)184 1,146,133 (57,779)213 
Non-U.S. corporate41,598 (1,830)15 237,533 (11,923)49 279,131 (13,753)64 
Residential mortgage-backed11,527 (34)6 — — — 11,527 (34)6 
Commercial mortgage-backed16,861 (272)8 — — — 16,861 (272)8 
Other asset-backed74,140 (434)37 379,355 (14,956)98 453,495 (15,390)135 
Total for fixed maturity securities in an unrealized loss position$360,861 $(9,715)134 $2,077,265 $(132,434)418 $2,438,126 $(142,149)552 
We did not recognize an allowance for credit losses on securities in an unrealized loss position included in the table above. Based on a qualitative and quantitative review of the issuers of the securities, we believe the unrealized losses are largely due to changes in interest rates and recent market volatility and are not indicative of credit losses. The issuers continue to make timely principal and interest payments.
For all securities in an unrealized loss position without an allowance for credit losses, we expect to recover the amortized cost based on our estimate of the amount and timing of cash flows to be collected. We do not intend to sell, nor do we expect that we will be required to sell these securities prior to recovering our amortized cost.
15
ENACT HOLDINGS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
The following table presents the gross unrealized losses and fair values of our fixed maturity securities, aggregated by investment type and length of time that individual fixed maturity securities have been in a continuous unrealized loss position, as of December 31, 2024:
 
Less than 12 months 
12 months or more
Total
(Dollar amounts in thousands)
Fair value 
Gross unrealized losses
Number of securities
Fair value
Gross unrealized losses
Number of securities
Fair value
Gross unrealized losses
Number of securities
Fixed maturity securities:         
U.S. government, agencies and GSEs$157,596 $(4,704)32 $19,998 $(381)9 $177,594 $(5,085)41 
State and political subdivisions48,280 (2,366)17 396,638 (73,261)84 444,918 (75,627)101 
Non-U.S. government56,631 (1,236)76 9,692 (622)1 66,323 (1,858)77 
U.S. corporate881,643 (20,844)265 1,379,860 (108,740)264 2,261,503 (129,584)529 
Non-U.S. corporate195,648 (4,015)102 385,508 (26,035)74 581,156 (30,050)176 
Residential mortgage-backed3,313 (31)3 2,822 (26)4 6,135 (57)7 
Other asset-backed101,549 (1,168)49 527,531 (29,011)130 629,080 (30,179)179 
Total for fixed maturity securities in an unrealized loss position$1,444,660 $(34,364)544 $2,722,049 $(238,076)566 $4,166,709 $(272,440)1,110 
Contractual Maturities of Fixed Maturity Securities Available-For-Sale
The scheduled maturity distribution of fixed maturity securities as of September 30, 2025, is set forth below. Actual maturities may differ from contractual maturities because issuers of securities may have the right to call or prepay obligations with or without call or prepayment penalties.
(Amounts in thousands)
Amortized
cost
Fair
value
Due one year or less$286,086 $285,072 
Due after one year through five years1,505,196 1,467,014 
Due after five years through ten years2,307,595 2,295,731 
Due after ten years562,630 569,842 
Subtotal4,661,507 4,617,659 
Residential mortgage-backed288,300 292,768 
Commercial mortgage-backed80,207 81,112 
Other asset-backed1,085,290 1,076,962 
Total fixed maturity securities available-for-sale$6,115,304 $6,068,501 
As of September 30, 2025, securities issued by the finance and insurance, utilities, consumer—non-cyclical, technology and communications, energy, and capital goods industry groups represented approximately 31%, 13%, 11%, 11%, 10%, and 10% respectively, of our domestic and foreign corporate fixed maturity securities portfolio. No other industry group comprised more than 9% of our investment portfolio.
As of September 30, 2025, we did not hold any fixed maturity securities in any single issuer, other than securities issued or guaranteed by the U.S. government, which exceeded 10% of equity.
As of September 30, 2025, and December 31, 2024, $21.4 million and $25.7 million, respectively, of securities in our portfolio were on deposit with various state insurance commissioners in order to comply with relevant insurance regulations.
16
ENACT HOLDINGS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
In connection with its reinsurance activities, the Company is required to maintain assets in trusts for the benefit of its contractual counterparties. As of September 30, 2025 and December 31, 2024, the fair value of the assets on deposit in these trusts was $292.8 million and $141.9 million, respectively, of which $41.5 million and $6.3 million, respectively, related to cash and cash equivalents.
During 2024, the Company entered into an agreement to invest in a limited partnership with an expected term of ten years. The investment is recorded within Other assets. As of September 30, 2025, we have committed to additionally fund approximately $9.5 million over the remaining life of the fund.

(4)Fair value
Recurring fair value measurements
We hold fixed maturity securities and short-term investments, which are carried at fair value. The fair value of fixed maturity securities and short-term investments are estimated primarily based on information derived from third-party pricing services (“pricing services”), internal models and/or broker quotes, which use a market approach, income approach or a combination of the market and income approach depending on the type of instrument and availability of information. In general, a market approach is utilized if there is readily available and relevant market activity for an individual security. In certain cases where market information is not available for a specific security but is available for similar securities, that security is valued using market information for similar securities, which is also a market approach. When market information is not available for a specific security (or similar securities) or is available but such information is less relevant or reliable, an income approach or a combination of a market and income approach is utilized. For securities with optionality, such as call or prepayment features (including asset-backed securities), an income or combination approach may be used. These valuation techniques may change from period to period, based on the relevance and availability of market data.
Further, while we consider the valuations provided by pricing services and broker quotes to be of high quality, management determines the fair value of our investment securities after considering all relevant and available information.
In general, we first obtain valuations from pricing services. If prices are unavailable for public securities, we obtain broker quotes. For all securities, excluding certain private fixed maturity securities, if neither a pricing service nor broker quotes valuation is available, we determine fair value using internal models. For certain private fixed maturity securities where we do not obtain valuations from pricing services, we utilize an internal model to determine fair value since transactions for similar securities are not readily observable and these securities are not typically valued by pricing services.
Given our understanding of the pricing methodologies and procedures of pricing services, the securities valued by pricing services are typically classified as Level 2 unless we determine the valuation process for a security or group of securities utilizes significant unobservable inputs, which would result in the valuation being classified as Level 3.
Broker quotes are typically based on an income approach given the lack of available market data. As the valuation typically includes significant unobservable inputs, we classify the securities where fair value is based on our consideration of broker quotes as Level 3 measurements.
For private fixed maturity securities, we utilize an income approach where we obtain public bond spreads and utilize those in an internal model to determine fair value. Other inputs to the model include rating and weighted-average life, as well as sector which is used to assign the spread. We then add an additional premium, which represents an unobservable input, to the public bond spread to adjust for the liquidity and other features of our private placements. We utilize the estimated market yield to discount
17
ENACT HOLDINGS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
the expected cash flows of the security to determine fair value. We utilize price caps for securities where the estimated market yield results in a valuation that may exceed the amount that would be received in a market transaction. When a security does not have an external rating, we assign the security an internal rating to determine the appropriate public bond spread that should be utilized in the valuation. While we generally consider the public bond spreads by sector and maturity to be observable inputs, we evaluate the similarities of our private placement with the public bonds, any price caps utilized, liquidity premiums applied, and whether external ratings are available for our private placements to determine whether the spreads utilized would be considered observable inputs, and therefore be classified as Level 2. We classify private securities without an external rating or public bond spread as Level 3. In general, a significant increase (decrease) in credit spreads would have resulted in a significant decrease (increase) in the fair value for our fixed maturity securities as of September 30, 2025.
For remaining securities priced using internal models, we determine fair value using an income approach. We maximize the use of observable inputs but typically utilize significant unobservable inputs to determine fair value. Accordingly, the valuations are typically classified as Level 3.
Our assessment of whether or not there were significant unobservable inputs related to fixed maturity securities was based on our observations obtained through the course of managing our investment portfolio, including interaction with other market participants, observations related to the availability and consistency of pricing and/or rating, and understanding of general market activity such as new issuance and the level of secondary market trading for a class of securities. Additionally, we considered data obtained from pricing services to determine whether our estimated values incorporate significant unobservable inputs that would result in the valuation being classified as Level 3.
A summary of the inputs used for our fixed maturity securities and short-term investments based on the level in which instruments are classified is included below. We have combined certain classes of instruments together as the nature of the inputs is similar.
Level 1 measurements
There were no fixed maturity securities classified as Level 1 as of September 30, 2025, and December 31, 2024.
Level 2 measurements
Fixed maturity securities:
Third-party pricing services
In estimating the fair value of fixed maturity securities, approximately 91% of our portfolio was priced using third-party pricing services as of September 30, 2025. These pricing services utilize industry-standard valuation techniques that include market-based approaches, income-based approaches, a combination of market-based and income-based approaches or other proprietary, internally generated models as part of the valuation processes. These third-party pricing vendors maximize the use of publicly available data inputs to generate valuations for each asset class. Priority and type of inputs used may change frequently as certain inputs may be more direct drivers of valuation at the time of pricing. Examples of significant inputs incorporated by pricing services may include sector and issuer spreads, seasoning, capital structure, security optionality, collateral data, prepayment assumptions, default assumptions, delinquencies, debt covenants, benchmark yields, trade data, dealer quotes, credit ratings, maturity and weighted-average life. We conduct regular meetings with our pricing services for the purpose of understanding the methodologies, techniques and inputs used by the third-party pricing providers.
18
ENACT HOLDINGS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
The following table presents a summary of the significant inputs used by our pricing services for certain fair value measurements of fixed maturity securities that are classified as Level 2 as of September 30, 2025:
(Amounts in thousands)
Fair value
Primary methodologies
Significant inputs
U.S. government, agencies and GSEs$270,865 Price quotes from trading desk, broker feedsBid side prices, trade prices, Option Adjusted Spread (“OAS”) to swap curve, Bond Market Association OAS, Treasury Curve, Agency Bullet Curve, maturity to issuer spread
State and political subdivisions$486,893 Multi-dimensional attribute-based modeling systems, third-party pricing vendorsTrade prices, material event notices, Municipal Market Data benchmark yields, broker quotes
Non-U.S. government$179,399 Matrix pricing, spread priced to benchmark curves, price quotes from market makersBenchmark yields, trade prices, broker quotes, comparative transactions, issuer spreads, bid-offer spread, market research publications, third-party pricing sources
U.S. corporate$2,445,988 Multi-dimensional attribute-based modeling systems, broker quotes, price quotes from market makers, internal models, OAS-based modelsBid side prices to Treasury Curve, Issuer Curve, which includes sector, quality, duration, OAS percentage and change for spread matrix, trade prices, comparative transactions, Trade Reporting and Compliance Engine (“TRACE”) reports
Non-U.S. corporate$687,783 Multi-dimensional attribute-based modeling systems, OAS-based models, price quotes from market makersBenchmark yields, trade prices, broker quotes, comparative transactions, issuer spreads, bid-offer spread, market research publications, third-party pricing sources
Residential mortgage-backed$292,768 OAS-based models, single factor binomial models, internally pricedPrepayment and default assumptions, aggregation of bonds with similar characteristics, including collateral type, vintage, tranche type, weighted-average life, weighted-average loan age, issuer program and delinquency ratio, pay up and pay down factors, TRACE reports
19
ENACT HOLDINGS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Commercial mortgage-backed$65,019 Multi-dimensional attribute-based modeling systems, pricing matrix, spread matrix priced to swap curves, Trepp commercial mortgage-backed securities analytics modelCredit risk, interest rate risk, prepayment speeds, new issue data, collateral performance, origination year, tranche type, original credit ratings, weighted-average life, cash flows, spreads derived from broker quotes, bid side prices, spreads to daily updated swaps curves, TRACE reports
Other asset-backed$1,064,645 Multi-dimensional attribute-based modeling systems, spread matrix priced to swap curves, price quotes from market makersSpreads to daily updated swap curves, spreads derived from trade prices and broker quotes, bid side prices, new issue data, collateral performance, analysis of prepayment speeds, cash flows, collateral loss analytics, historical issue analysis, trade data from market makers, TRACE reports
Internal models
A portion of our Level 2 U.S. corporate and non-U.S. corporate securities are valued using internal models. The fair value of these fixed maturity securities was $219.2 million and $85.3 million, respectively, as of September 30, 2025. Internally modeled securities are primarily private fixed maturity securities where we use market observable inputs such as an interest rate yield curve, published credit spreads for similar securities based on the external ratings of the instrument and related industry sector of the issuer. Additionally, we may apply certain price caps and liquidity premiums in the valuation of private fixed maturity securities. Price caps and liquidity premiums are established using inputs from market participants.
Short-term investments:
The fair value of short-term investments classified as Level 2 is determined after considering prices obtained by pricing services.
Level 3 measurements
Broker quotes
A portion of our non-U.S. corporate and other asset-backed securities are valued using broker quotes. Broker quotes are obtained from third-party providers that have current market knowledge to provide a reasonable price for securities not routinely priced by pricing services. Brokers utilized for valuation of assets are reviewed annually. The fair value of our Level 3 fixed maturity securities priced by broker quotes was $27.5 million as of September 30, 2025.
Internal models
A portion of our U.S. corporate and non-U.S. corporate securities are valued using internal models. The primary inputs to the valuation of the bond population include quoted prices for identical assets, or similar assets in markets that are not active, contractual cash flows, duration, call provisions, issuer rating, benchmark yields and credit spreads. Certain private fixed maturity securities are valued using an internal model using market observable inputs such as the interest rate yield curve, as well as published credit spreads for similar securities, which includes significant unobservable inputs. Additionally, we may apply certain price caps and liquidity premiums in the valuation of private fixed maturity securities. Price caps are established using inputs from market participants. For structured securities, the primary inputs to
20
ENACT HOLDINGS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
the valuation include quoted prices for identical assets, or similar assets in markets that are not active, contractual cash flows, weighted-average coupon, weighted-average maturity, issuer rating, structure of the security, expected prepayment speeds and volumes, collateral type, current and forecasted loss severity, average delinquency rates, vintage of the loans, geographic region, debt service coverage ratios, payment priority with the tranche, benchmark yields and credit spreads. The fair value of our Level 3 fixed maturity securities priced using internal models was $243.1 million as of September 30, 2025.
The following tables set forth our assets by class of instrument that are measured at fair value on a recurring basis as of the dates indicated:
 September 30, 2025
(Amounts in thousands) 
Total
Level 1
Level 2
Level 3 
Fixed maturity securities:    
U.S. government, agencies and GSEs$270,865 $— $270,865 $— 
State and political subdivisions486,893 — 486,893 — 
Non-U.S. government179,399 — 179,399 — 
U.S. corporate2,872,978 — 2,665,178 207,800 
Non-U.S. corporate807,524 — 773,123 34,401 
Residential mortgage-backed292,768 — 292,768 — 
Commercial mortgage-backed81,112 — 65,019 16,093 
Other asset-backed1,076,962 — 1,064,645 12,317 
Total fixed maturity securities6,068,501 — 5,797,890 270,611 
Short-term investments2,002 — 2,002 — 
Total$6,070,503 $— $5,799,892 $270,611 
 December 31, 2024
(Amounts in thousands)
Total
Level 1
Level 2
Level 3 
Fixed maturity securities:    
U.S. government, agencies and GSEs$277,363 $— $277,363 $— 
State and political subdivisions467,476 — 467,476 — 
Non-U.S. government83,802 — 83,802 — 
U.S. corporate2,825,679 — 2,602,893 222,786 
Non-U.S. corporate772,624 — 716,071 56,553 
Residential mortgage-backed8,364 — 8,364 — 
Other asset-backed1,189,465 — 1,187,263 2,202 
Total fixed maturity securities5,624,773 — 5,343,232 281,541 
Short-term investments3,367 — 3,367 — 
Total$5,628,140 $— $5,346,599 $281,541 
We had no liabilities recorded at fair value as of September 30, 2025, and December 31, 2024.
21
ENACT HOLDINGS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
The following tables present additional information about assets measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value as of or for the dates indicated:
 Beginning balance as of July 1, 2025
Total realized and
unrealized gains
(losses) 
Purchases
Sales
Settlements
Transfer
into
Level 3 (1)
Transfer
out of
Level 3 (1)
Ending balance as of September 30, 2025
Total gains
(losses)
attributable to
assets still held
(Amounts in thousands)
Included
in net
income
Included
in OCI
Included
in net
income
Included
in OCI 
Fixed maturity securities:           
U.S. corporate$206,717 $246 $2,060 $999 $— $(2,222)$— $— $207,800 $246 $2,048 
Non-U.S. corporate46,103 (306)362 — (6,652)(5,106)— — 34,401 (2)345 
Commercial mortgage-backed— 199 (159)16,053 — — — — 16,093 199 (159)
Other asset-backed3,290 11 91 9,911 — (1)— (985)12,317 12 91 
Total$256,110 $150 $2,354 $26,963 $(6,652)$(7,329)$— $(985)$270,611 $455 $2,325 
Beginning balance as of July 1, 2024
Total realized and
unrealized gains
(losses) 
Purchases
Sales
Settlements
Transfer
into
Level 3 (1)
Transfer
out of
Level 3 (1)
Ending balance as of September 30, 2024
Total gains
(losses)
attributable to
assets still held
(Amounts in thousands)
Included
in net
income
Included
in OCI
Included
in net
income
Included
in OCI 
Fixed maturity securities:
U.S. corporate$237,448 $(7,176)$16,456 $— $— $(222)$— $(13,592)$232,914 $82 $7,081 
Non-U.S. corporate82,053 (1,236)1,803 — (17,937)(105)— (2,994)61,584 22 110 
Other asset-backed13,907 9 428 6,249 — — — (13,411)7,182 9 18 
Total$333,408 $(8,403)$18,687 $6,249 $(17,937)$(327)$— $(29,997)$301,680 $113 $7,209 
______________
(1)The transfers into and out of Level 3 for fixed maturity securities were related to changes in the primary pricing source and changes in the observability of external information used in determining the fair value, such as external ratings or credit spreads.

22
ENACT HOLDINGS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
 Beginning balance as of January 1, 2025
Total realized and
unrealized gains
(losses) 
Purchases
Sales
Settlements
Transfer
into
Level 3 (1)
Transfer
out of
Level 3 (1)
Ending balance as of September 30, 2025
Total gains
(losses)
attributable to
assets still held
(Amounts in thousands)
Included
in net
income
Included
in OCI
Included
in net
income
Included
in OCI 
Fixed maturity securities:           
U.S. corporate$222,786 $730 $8,308 $999 $— $(6,444)$— $(18,579)$207,800 $730 $7,973 
Non-U.S. corporate56,553 (1,571)1,318 1,890 (6,669)(13,317)— (3,803)34,401 (1,263)1,240 
Commercial mortgage-backed— 199 (159)16,053 — — — — 16,093 199 (159)
Other asset-backed2,202 29 78 10,897 — (4)100 (985)12,317 30 78 
Total$281,541 $(613)$9,545 $29,839 $(6,669)$(19,765)$100 $(23,367)$270,611 $(304)$9,132 
(Amounts in thousands)Beginning balance as of January 1, 2024Total realized and
unrealized gains
(losses) 		PurchasesSales Settlements
Transfer
into
Level 3 (1)
Transfer
out of
Level 3 (1)
Ending balance as of September 30, 2024Total gains
(losses)
attributable to
assets still held
Included
in net
income 		Included
in OCI 		Included in net incomeIncluded in OCI
Fixed maturity securities:
U.S. corporate$247,205 $(7,535)$14,504 $— $(1,739)$(10,580)$4,651 $(13,592)$232,914 $67 $4,895 
Non-U.S. corporate81,321 (1,220)(261)6,000 (17,946)(3,316)— (2,994)61,584 39 (1,963)
Other asset-backed2,958 26 437 23,183 — (331)— (19,091)7,182 26 19 
Total $331,484 $(8,729)$14,680 $29,183 $(19,685)$(14,227)$4,651 $(35,677)$301,680 $132 $2,951 
______________
(1)The transfers into and out of Level 3 for fixed maturity securities were related to changes in the primary pricing source and changes in the observability of external information used in determining the fair value, such as external ratings or credit spreads.

23
ENACT HOLDINGS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Purchases, sales, and settlements represent the activity that occurred during the period that results in a change of the asset but does not represent changes in fair value for the instruments held at the beginning of the period.
The amount presented for realized and unrealized gains (losses) included in net income for fixed maturity securities primarily represents amortization and accretion of premiums and discounts on certain fixed maturity securities recorded within net investment income.
The following table presents a summary of the significant unobservable inputs used for certain asset fair value measurements that are based on internal models and classified as Level 3 as of September 30, 2025:
(Amounts in thousands)
Valuation
technique 
Fair value (1)
Unobservable
input 
Range (bps)
Weighted-
average (2) (bps)
Fixed maturity securities:    
U.S. corporateInternal models$207,800 Credit spreads
14 - 151
86
Non-U.S. corporateInternal models$30,286 Credit spreads
75 - 125
92
______________
(1)Certain classes of instruments classified as Level 3 may be excluded as a result of not being material or due to limitations in being able to obtain the underlying inputs used by certain third-party sources, such as broker quotes, used as an input in determining fair value.
(2)Unobservable inputs weighted by the relative fair value of the associated instrument.

We have certain financial instruments that are not recorded at fair value, including cash and cash equivalents and accrued investment income, the carrying value of which approximate fair value due to the short-term nature of these instruments and are not included in this disclosure.
Liabilities not required to be carried at fair value
The following represents our estimated fair value of financial liabilities that are not required to be carried at fair value, classified as Level 2, as of the dates indicated:
September 30, 2025December 31, 2024
(Amounts in thousands)
Carrying
amount
Fair value 
Carrying
amount
Fair value 
Long-term borrowings$744,114 $784,793 $743,050 $764,070 
(5)Loss reserves
Our reserve for losses and loss adjustment expenses (“LAE”) consisted of the following as of the dates indicated:
(Amounts in thousands)September 30, 2025December 31, 2024
Domestic mortgage insurance$566,923 $520,032 
Other reserves5,131 4,683 
Total loss reserves$572,054 $524,715 
24
ENACT HOLDINGS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Activity for the liability for domestic mortgage insurance loss reserves for the nine months ended September 30, is summarized as follows:
(Amounts in thousands)
20252024
Gross loss reserves, beginning balance$520,032 $517,515 
Reinsurance recoverable, beginning balance(2,909)(1,294)
Net loss reserves, beginning balance517,123 516,221 
Losses and LAE incurred related to current accident year220,985 211,665 
Losses and LAE incurred related to prior accident years(142,862)(200,457)
Total incurred
78,123 11,208 
Losses and LAE paid related to current accident year3,578 (147)
Losses and LAE paid related to prior accident years(35,655)(21,412)
Total paid
(32,077)(21,559)
Net loss reserves, ending balance563,169 505,870 
Reinsurance recoverable, ending balance3,754 1,509 
Gross loss reserves, ending balance$566,923 $507,379 

The liability for loss reserves represents our current best estimate; however, there may be future adjustments to this estimate and related assumptions. Such adjustments, reflecting any variety of new and adverse trends, could possibly be significant, and result in future increases to reserves by amounts that could be material to our results of operations, financial condition and liquidity.
Losses incurred related to insured events of the current accident year relate to defaults that occurred in that year and represent the estimated ultimate amount of losses to be paid on such defaults. Losses incurred related to insured events of prior accident years represent the (favorable) or unfavorable development of reserves as a result of the actual rates at which delinquencies go to claim (“claim rates”) and claim amounts being different than those we estimated when originally establishing the reserves. These estimates are based on our historical experience, which we believe is representative of expected future losses at the time of estimation. As a result of the extended period of time that may exist between the reporting of a delinquency and the claim payment, as well as changes in economic conditions and the real estate market, significant uncertainty and variability exist on amounts ultimately paid.
For the nine months ended September 30, 2025, losses and LAE incurred of $221 million related to insured events of the current accident year was primarily attributable to new delinquencies compared to $212 million for the nine months ended September 30, 2024.
For the nine months ended September 30, 2025, we also recorded favorable reserve adjustments of $140 million primarily on prior accident year reserves, driven by cure performance of delinquencies from 2024 and prior.
During the nine months ended September 30, 2024, we released $196 million of reserves primarily driven by cure performance of delinquencies from 2023 and prior. As part of the reserve adjustments in 2024, we also decreased our claim rate assumptions for new and existing delinquencies as a result of sustained favorable cure performance and lessening uncertainty in the economic environment.
25
ENACT HOLDINGS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
(6)Reinsurance
We reinsure a portion of our policy risks to third parties in order to reduce our ultimate losses, diversify our exposures and comply with regulatory requirements. We also assume certain policy risks written by other companies.
Reinsurance does not relieve us from our obligations to policyholders. In the event that the reinsurers are unable to meet their obligations, we remain liable for the reinsured claims. We monitor both the financial condition of individual reinsurers and risk concentrations arising from similar geographic regions, activities and economic characteristics of reinsurers to lessen the risk of default by such reinsurers.
The following table sets forth the effects of reinsurance on premiums written and earned for the periods indicated:
Three months ended
September 30,		Nine months ended
September 30,
(Amounts in thousands)
2025202420252024
Net premiums written:
Direct$265,236 $262,723 $791,242 $777,148 
Assumed7,856 6,782 23,292 11,813 
Ceded(33,577)(28,937)(98,420)(82,540)
Net premiums written$239,515 $240,568 $716,114 $706,421 
Net premiums earned:
Direct$270,409 $271,210 $809,891 $805,096 
Assumed7,856 6,782 23,292 11,813 
Ceded(33,577)(28,937)(98,420)(82,540)
Net premiums earned$244,688 $249,055 $734,763 $734,369 
The difference between written premiums of $239.5 million and earned premiums of $244.7 million represents the decrease in unearned premiums for the three months ended September 30, 2025. The difference between written premiums of $716.1 million and earned premiums of $734.8 million represents the decrease in unearned premiums for the nine months ended September 30, 2025. The decrease in unearned premiums in both periods was primarily the result of premiums earned over time coupled with low originations of our single premium mortgage insurance product.
Excess-of-loss reinsurance
We engage in excess-of-loss (“XOL”) insurance transactions either through a panel of traditional reinsurance providers or through collateralized reinsurance with unaffiliated special purpose insurers (“Triangle Re Entities”). During the respective coverage periods of these agreements, EMICO retains the first layer of aggregate loss exposure on covered policies while the reinsurer provides the second layer of coverage, up to the defined reinsurance coverage amount. EMICO retains losses in excess of the respective reinsurance coverage amount.
The Triangle Re Entities fully collateralize their coverage by issuing insurance-linked notes (“ILNs”) to eligible capital market investors in unregistered private offerings. Traditional reinsurance providers collateralize a portion of their coverage by holding funds in trust. We believe that the risk transfer requirements for reinsurance accounting were met as these XOL insurance transactions assume significant insurance risk and a reasonable possibility of significant loss.
26
ENACT HOLDINGS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
EMICO has rights to terminate the ILNs or traditional XOL reinsurance agreements upon the occurrence of certain events.
The following table presents the issue date, policy dates, initial and current first layer retained aggregate loss and initial and current reinsurance coverage amount under each reinsurance transaction. Current amounts are presented as of September 30, 2025:
Mortgage insurance-linked notes
(Amounts in millions)Issue datePolicy datesInitial first layer retained lossCurrent first layer retained lossInitial reinsurance coverageCurrent reinsurance coverage
Triangle Re 2021-2 Ltd.4/16/20219/01/2020 - 12/31/2020$189$186$303$82
Triangle Re 2021-3 Ltd.9/02/20211/01/2021 - 6/30/2021$304$299$372$122
Triangle Re 2023-1 Ltd.11/15/20237/01/2022 - 6/30/2023$244$240$248$194
Total$398
Traditional excess-of-loss reinsurance
(Amounts in millions)Issue datePolicy datesInitial first layer retained lossCurrent first layer retained lossInitial reinsurance coverageCurrent reinsurance coverage
2021 XOL2/04/20211/01/2021 - 12/31/2021$671$659$206$64
2022-1 XOL1/27/20221/01/2022 - 12/31/2022$462$442$196$142
2022-2 XOL1/27/20221/01/2022 - 12/31/2022$385$365$25$25
2022-3 XOL3/24/20227/01/2021 - 12/31/2021$317$309$289$129
2022-4 XOL3/24/20227/01/2021 - 12/31/2021$264$257$36$36
2022-5 XOL 9/15/20221/01/2022 - 6/30/2022$256$244$201$136
2023-1 XOL3/08/20231/01/2023 - 12/31/2023$360$353$180$159
2024-1 XOL1/30/20241/01/2024 - 12/31/2024$362$361$270$270
2024-2 XOL6/25/20247/01/2023 - 12/31/2023$134$133$90$78
2025-1 XOL1/27/20251/01/2025 - 12/31/2025$257$257$118$118
2025-2 XOL1/27/20251/01/2025 - 12/31/2025$213$213$18$18
Total$1,175
On January 27, 2025, we entered into an excess-of-loss reinsurance transaction that covers a portion of expected new insurance written from January 1, 2026, through December 31, 2026, and provides reinsurance coverage of approximately $260 million.
On October 27, 2025, we entered into an excess-of-loss reinsurance transaction that covers a portion of expected new insurance written from January 1, 2027, through December 31, 2027, and provides reinsurance coverage of approximately $170 million.
Quota Share Reinsurance
EMICO engages in quota share reinsurance agreements with a panel of third-party reinsurers. Under the agreements, we cede a percentage of premiums earned, claims and claims expenses on eligible policies. The agreements also include a specific ceding commission and profit commission determined based on ceded claims. EMICO has rights to terminate the reinsurance agreements upon the occurrence
27
ENACT HOLDINGS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
of certain events. Reinsurance recoverables are recorded in Other assets on the consolidated balance sheets.
AgreementIssue datePolicy datesCeding percentageCeding commissionProfit commission
QS 2023-16/30/20231/01/2023 - 12/31/202316.125%20%
up to 55%
QS 2024-11/03/20241/01/2024 - 12/31/202421.225%20%
up to 55%
QS 2025-111/26/20241/01/2025 - 12/31/202527.150%20%
up to 62%
QS 2026-111/26/20241/01/2026 - 12/31/202627.000%20%
up to 61%
QS 2027-19/23/20251/01/2027 - 12/31/202733.750%20%
up to 63%

(7)Borrowings
In May 2024, we issued $750 million aggregate principal amount of Senior Notes due 2029 (the “2029 Notes”). The 2029 Notes are the Company’s unsecured senior obligations. The 2029 Notes pay interest semi-annually on May 28 and November 28 at a rate of 6.25% per year, beginning on November 28, 2024, and will mature on May 28, 2029.
At any time, or from time to time, prior to April 28, 2029 (the “Par Call Date”), the Company may redeem the 2029 Notes in whole or in part, at its option, at a redemption price equal to the greater of (i) the sum of the present values of the remaining scheduled payments of principal and interest thereon discounted to the redemption date (assuming the 2029 Notes matured on the Par Call Date) on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate plus 30 basis points less interest accrued to the redemption date, and (ii) 100% of the principal amount of the 2029 Notes to be redeemed, plus, in either case, accrued and unpaid interest thereon to, but excluding, the redemption date. At any time on or after the Par Call Date, the Company may redeem the 2029 Notes in whole or in part, at any time and from time to time, at a redemption price equal to 100% of the principal amount of the 2029 Notes to be redeemed, plus accrued and unpaid interest thereon to, but excluding, the redemption date.
The 2029 Notes contain customary events of default which, subject to certain notice and cure conditions, can result in the acceleration of the principal and accrued interest on the outstanding notes if we breach the terms of the indenture.
The following table sets forth long-term borrowings as of the dates indicated:
(Amounts in thousands)September 30,
2025		December 31,
2024
6.25% Senior Notes, due 2029
$750,000 $750,000 
Deferred borrowing charges and discount(5,886)(6,950)
Total$744,114 $743,050 
Redemption of Senior Notes due 2025
In June 2024, we exercised our right to redeem all $750 million of the outstanding aggregate principal amount of our 6.5% senior notes due 2025 (“2025 Notes”) at a price of 101% of the principal amount. We funded the redemption primarily through the proceeds of the 2029 Notes. The redemption resulted in a loss on debt extinguishment of $10.9 million.
28
ENACT HOLDINGS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Revolving Credit Agreement
On September 30, 2025, we entered into a credit agreement with a syndicate of lenders that provides for a five-year unsecured revolving credit facility (the “2025 Revolving Credit Facility”) in the initial aggregate principal amount of $435 million, to replace our then-outstanding $200 million five-year unsecured revolving credit facility (the “2022 Revolving Credit Facility”). The 2025 Revolving Credit Facility includes the ability for EHI to increase the commitments on an uncommitted basis, by an additional aggregate principal amount of up to $217.5 million. Borrowings under the 2025 Revolving Credit Facility will accrue interest at a floating rate tied to a standard short-term borrowing index, selected at EHI’s option, plus an applicable margin. The applicable margins are based on the ratings established by certain debt rating agencies for EHI’s senior unsecured debt. The 2025 Revolving Credit Facility matures in September 2030, but under certain conditions EHI may need to repay any outstanding amounts and terminate the 2025 Revolving Credit Facility earlier than the maturity date.
We may use borrowings under the 2025 Revolving Credit Facility for working capital needs and general corporate purposes, including the execution of dividends to our shareholders and capital contributions to our insurance subsidiaries. The 2025 Revolving Credit Facility contains several covenants, including financial covenants relating to minimum net worth, maximum debt to capitalization level and PMIERs compliance. We are in compliance with all covenants of the 2025 Revolving Credit Facility and the 2025 Revolving Credit Facility has remained undrawn through September 30, 2025.
(8)Income taxes
We compute the provision for income taxes on a separate return with benefits-for-loss method. If during the nine-month periods ended September 30, 2025 and 2024, we had computed taxes using the separate return method, the provision for income taxes would have been unchanged.
Our ability to realize deferred tax assets is largely dependent upon generating sufficient taxable income and capital gains in future years. We released the valuation allowance of $10.0 million through accumulated other comprehensive income (loss) during the nine months ended September 30, 2025. This change is due to the decrease in unrealized losses in accumulated other comprehensive income for the Company and the consolidated tax group during the period.
On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”), which includes certain tax provisions, was signed into law. The OBBBA did not have a material impact on our consolidated financial statements.
(9)Related party transactions
We have various agreements with Genworth that provide for reimbursement to and from Genworth of certain administrative and operating expenses that include, but are not limited to, information technology services and administrative services (such as finance, human resources and employee benefit administration). These agreements provide for an allocation of corporate expenses to all Genworth businesses or subsidiaries. We incurred costs for these services of $2.3 million and $2.8 million for the three months ended September 30, 2025 and 2024, respectively. We incurred costs for these services of $7.0 million and $8.4 million for the nine months ended September 30, 2025 and 2024, respectively.
The investment portfolios of our insurance subsidiaries are primarily managed by Genworth. Under the terms of the investment management agreement, we are charged a fee by Genworth. All fees paid to Genworth are charged to investment expense and are included in net investment income in the condensed consolidated statements of income. The total investment expenses paid to Genworth were $2.1 million and $1.8 million for the three months ended September 30, 2025 and 2024, respectively. The total investment expenses paid to Genworth were $5.7 million and $5.1 million for the nine months ended September 30, 2025 and 2024, respectively.
29
ENACT HOLDINGS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Our employees participate in certain benefit plans sponsored by Genworth and certain share-based compensation plans that utilize shares of Genworth common stock and other incentive plans.
We paid cash dividends of $25.1 million and $23.4 million to Genworth in the three months ended September 30, 2025 and 2024, respectively. We paid cash dividends of $73.4 million and $67.9 million to Genworth in the nine months ended September 30, 2025 and 2024, respectively. The amount and timing of future dividends will be based upon the prevailing and prospective macro-economic conditions, regulatory landscape and business performance and remain subject to required approvals. We paid Genworth $85.3 million and $58.0 million related to shares repurchased in the three months ended September 30, 2025 and 2024, respectively. We paid Genworth $206.7 million and $137.5 million related to shares repurchased in the nine months ended September 30, 2025 and 2024, respectively.
We have a tax sharing agreement in place with Genworth, such that we participate in a single U.S. consolidated income tax return filing. All intercompany balances related to this agreement are settled at least annually.
The condensed consolidated financial statements include the following amounts due to and from Genworth relating to recurring service and expense agreements as of:
(Amounts in thousands)
September 30, 2025December 31, 2024
Amounts payable to Genworth$9,379 $8,197 
Amounts receivable from Genworth$153 $199 
(10)Net income per common share
The basic earnings per share computation is based on the weighted average number of shares of common stock outstanding. For the three and nine months ended September 30, 2025 and 2024, the calculation of dilutive weighted average shares considers the impact of restricted stock units and performance stock units issued to employees, as well as deferred stock units issued to our directors.
The calculation of basic and diluted net income per share is as follows:
Three months ended
September 30,		Nine months ended
September 30,
(Amounts in thousands, except per share amounts)2025202420252024
Net income available to EHI common stockholders$163,497 $180,669 $497,083 $525,330 
Net income per common share:
Basic$1.11 $1.16 $3.32 $3.34 
Diluted$1.10 $1.15 $3.30 $3.31 
Weighted average common shares outstanding:
Basic147,434 155,561 149,735 157,191 
Diluted148,340 157,016 150,659 158,558 
30
ENACT HOLDINGS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
(11)Changes in accumulated other comprehensive income
The following tables present a roll forward of accumulated other comprehensive income for the three months indicated:
(Amounts in thousands)Net unrealized
investment
gains (losses)		Foreign currency translationTotal
Balance as of July 1, 2025, net of tax$(100,476)$(3,866)$(104,342)
Other comprehensive income (loss) before reclassifications61,581 (1,257)60,324 
Amounts reclassified from other comprehensive income (loss)2,233 — 2,233 
Total other comprehensive income (loss)63,814 (1,257)62,557 
Balance as of September 30, 2025, net of tax$(36,662)$(5,123)$(41,785)
(Amounts in thousands)Net unrealized
investment
gains (losses)		Foreign currency translationTotal
Balance as of July 1, 2024, net of tax$(236,463)$158 $(236,305)
Other comprehensive income (loss) before reclassifications133,338 2 133,340 
Amounts reclassified from other comprehensive income (loss)981 — 981 
Total other comprehensive income (loss)134,319 2 134,321 
Balance as of September 30, 2024, net of tax$(102,144)$160 $(101,984)

31
ENACT HOLDINGS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
The following tables present a roll forward of accumulated other comprehensive income for the nine months indicated:
(Amounts in thousands)
Net unrealized
investment
gains (losses)
Foreign currency translation
Total
Balance as of January 1, 2025, net of tax$(207,624)$169 $(207,455)
Other comprehensive income (loss) before reclassifications160,297 (5,292)155,005 
Amounts reclassified from other comprehensive income (loss)10,665 — 10,665 
Total other comprehensive income (loss)170,962 (5,292)165,670 
Balance as of September 30, 2025, net of tax$(36,662)$(5,123)$(41,785)
(Amounts in thousands)
Net unrealized
investment
gains (losses)		Foreign currency translationTotal
Balance as of January 1, 2024, net of tax$(230,556)$156 $(230,400)
Other comprehensive income (loss) before reclassifications116,056 4 116,060 
Amounts reclassified from other comprehensive income (loss)12,356 — 12,356 
Total other comprehensive income (loss)128,412 4 128,416 
Balance as of September 30, 2024, net of tax$(102,144)$160 $(101,984)

The following table presents the effect of the reclassification of significant items out of accumulated other comprehensive income (loss) on the respective line items of the consolidated statements of income, for the periods indicated:
 
Amounts reclassified from accumulated other comprehensive income (loss)
Affected line item in the condensed consolidated statements of income
Three months ended
September 30,		Nine months ended
September 30,
(Amounts in thousands)
2025202420252024
Net unrealized gains (losses) on investments$(2,825)$(1,243)$(13,499)$(15,640)Net investment gains (losses)
Benefit (expense) from income taxes592 262 2,834 3,284 Provision for income taxes
(12)Stockholders’ equity
Share Repurchase Program
On August 1, 2023, we announced the authorization of a share repurchase program that allowed for the repurchase of up to $100 million of EHI’s common stock, which was completed in the second quarter of 2024. On May 1, 2024, we announced the authorization of a share repurchase program that allowed for the repurchase of an additional $250 million of EHI’s common stock, which was completed in the second quarter of 2025. On April 30, 2025, we announced the authorization of a new share repurchase program that allows for the repurchase of up to an additional $350 million of EHI’s common stock. Under the programs, share repurchases may be made at our discretion from time to time in open market
32
ENACT HOLDINGS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
transactions in compliance with Rule 10b-18 under the Securities Exchange Act of 1934, as amended, privately negotiated transactions, or by other means, including through Rule 10b5-1 trading plans. 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. We expect the timing and amount of any future share repurchases will be opportunistic and will depend on a variety of factors, including EHI’s share price, capital availability, business and market conditions, regulatory requirements, and debt covenant restrictions. Each program does not obligate EHI to acquire any amount of common stock, may be suspended or terminated at any time at the Company’s discretion without prior notice, and does not have a specified expiration date.
During the three months ended September 30, 2025, the Company purchased 2,824,499 shares at an average price of $37.23 per share, excluding commissions, compared to 2,096,329 shares at an average price of $34.04 per share, excluding commissions, during the three months ended September 30, 2024. During the nine months ended September 30, 2025, the Company purchased 7,169,155 shares at an average price of $35.58 per share, excluding commissions, compared to 5,477,586 shares at an average price of $30.86 per share, excluding commissions, during the nine months ended September 30, 2024. As of September 30, 2025, $187.8 million remained available under the share repurchase program that was announced on April 30, 2025. All treasury stock has been retired as of September 30, 2025.
Subsequent to quarter end, the Company purchased 1,158,693 shares at an average price of $36.19 per share through October 31, 2025.
Cash Dividends
The following table presents the amount of dividends declared and paid, on a per share basis, for each quarter and annual period.
Quarter Ended20252024
March 31$0.185 $0.16 
June 300.21 0.185 
September 300.21 0.185 
December 31N/A0.185 
Total dividends per common share declared and paid$0.605 $0.715 

(13)Segment Reporting
We operate our business in a single reportable segment, Mortgage Insurance, which is how our CODM, who is our Chief Executive Officer, reviews our financial performance and allocates resources. We derive revenue primarily through writing and assuming residential mortgage guaranty insurance in the United States. We manage our single segment on a consolidated basis, and our reported measure of segment profit or loss is consolidated net income.
The CODM uses net income to evaluate income generated from segment assets in deciding how to reinvest profits into the core business, or into other parts of the entity, such as new business initiatives or to return capital to shareholders. Net income is also considered in our competitive analysis and financial planning processes.
Our significant segment expenses are those disclosed on our condensed consolidated statements of income and our measure of segment assets are those reported on the condensed consolidated balance sheets.
33

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
The following discussion and analysis of our consolidated financial condition and results of operations should be read in conjunction with our unaudited condensed consolidated financial statements and related notes for the nine months ended September 30, 2025 and 2024, and our audited consolidated financial statements and related notes for the years ended December 31, 2024 and 2023, within our Annual Report on Form 10-K for the fiscal year ending December 31, 2024 (the “Annual Report”).
In addition to historical information, this discussion contains forward-looking statements that involve risks, uncertainties and assumptions that could cause actual results to differ materially from management’s expectations. Factors that could cause such differences are discussed in the sections entitled “Cautionary Note Regarding Forward-Looking Statements” above and Part I, Item 1A “Risk Factors” in our Annual Report. We are not undertaking any obligation to update any forward-looking statements or other statements we may make in the following discussion or elsewhere in this document even though these statements may be affected by events or circumstances occurring after the forward-looking statements or other statements were made. Future results could differ significantly from the historical results presented in this section. References to “EHI,” “Enact,” “Enact Holdings,” the “Company,” “we” or “our” herein are, unless the context otherwise requires, to EHI on a consolidated basis.
Key Factors Affecting Our Results
There have been no material changes to the factors affecting our results, as compared to those disclosed in the Annual Report, other than the impact of items as discussed below in “—Trends and Conditions.”
Trends and Conditions
Macroeconomic environment. Throughout 2025, the United States economy was subject to significant volatility and uncertainty, largely related to changing economic policies, including new and increasing tariffs, continued inflationary pressure, the then impending government shutdown as well as certain domestic and geopolitical tensions. The ancillary effects of these factors on the domestic and global economies could materially impact the United States housing markets and our business.
The Bureau of Labor Statistics reported in September 2025 that Consumer Price Index (“CPI”) inflation was 3.0% year-over-year compared to 2.7% year-over-year in June 2025 while the unemployment rate has risen to 4.3% in August 2025 from 4.1% in June 2025. Elevated inflation remains a challenge for the Federal Open Market Committee as it navigates heightened uncertainty.
The U.S. mortgage origination market remained relatively slow in response to elevated mortgage rates. Over the past few years, housing affordability has deteriorated as elevated mortgage rates and home price appreciation outpaced median family income according to the National Association of Realtors Housing Affordability Index. Affordability pressures have eased slightly during the quarter as mortgage rates began to decline and national house price growth has slowed according to the Federal Housing Finance Agency (“FHFA”) Monthly Purchase-Only House Price Index (Seasonally Adjusted).
Regulatory developments. Private mortgage insurance market penetration and eventual market size are affected in part by actions that impact housing or housing finance policy taken by the GSEs and the U.S. government, including but not limited to, the Federal Housing Administration (“FHA”) and the FHFA. In the past, these actions have included announced changes, or potential changes, to underwriting standards, including changes to the GSEs’ automated underwriting systems, FHA pricing, GSE guaranty fees, loan limits and alternative products.
In July 2025, the FHFA announced that it will implement the acceptance of VantageScore 4.0 for mortgages delivered to Fannie Mae and Freddie Mac. The GSEs have not yet released implementation details and timelines, and the full impact of this initiative on our business, processes and financial results remains uncertain.
34

Competitive environment. The U.S. private mortgage insurance industry is highly competitive. Our market share is influenced by the execution of our go to market strategy, including but not limited to, pricing competitiveness relative to our peers and our selective participation in forward commitment transactions. We continue to manage the quality of new business through pricing and our underwriting guidelines, which are modified from time to time when circumstances warrant. We see the market and underwriting conditions, including the pricing environment, as being within our risk-adjusted return appetite enabling us to write new business at attractive returns. Ultimately, we expect our new insurance written with its strong credit profile and attractive pricing to positively contribute to our future profitability and return on equity.
Our portfolio. New insurance written (“NIW”) of $14.0 billion in the third quarter of 2025 increased 3% compared to the third quarter of 2024. Changes in NIW are primarily impacted by the size of the mortgage insurance market and our market share. Our primary persistency rate was 83% during the third quarter of 2025 and 83% for the third quarter of 2024. The persistency rate continues to remain higher than historical averages driven by a large percentage of our in-force policies with mortgage rates below current mortgage rates.
Net earned premiums decreased modestly in the third quarter of 2025 compared to the third quarter of 2024 primarily as a result of higher ceded premiums partially offset by insurance in-force growth.
Loss experience. Our loss ratio for the three months ended September 30, 2025, was 15% as compared to 5% for the three months ended September 30, 2024. Both periods were impacted by favorable reserve development. In the third quarter of 2025, we released $45 million of reserves, driven by cure performance of delinquencies from 2024 and prior. This compares to the third quarter of 2024, where we recorded a $65 million reserve release primarily driven by cure performance on delinquencies from 2023 and prior.
New delinquencies in the third quarter of 2025 increased slightly compared to the third quarter of 2024 due to the normal loss development pattern on newer books. Current period primary delinquencies of 12,998 contributed $79 million of loss expense in the third quarter of 2025. This compares to $75 million of loss expense from 12,964 primary delinquencies that were reported in the third quarter of 2024. In determining the loss expense estimate, considerations were given to recent cure and claim experience and the prevailing and prospective economic conditions.
The severity of loss on loans that go to claim may be negatively impacted by extended forbearance and foreclosure timelines, the associated elevated expenses and the higher loan amount of the recent new delinquencies. These negative influences on loss severity could be mitigated, in part, by embedded home price appreciation. The majority of our mortgage insurance policies limit the number of months of unpaid interest and associated expenses that are included in the mortgage insurance claim amount to a maximum of 36 months.
Capital requirements and ratings. As of September 30, 2025, EMICO’s estimated risk-to-capital ratio under North Carolina law and enforced by the North Carolina Department of Insurance (“NCDOI”), EMICO’s domestic insurance regulator, was 10.2:1, compared with risk-to-capital ratios of 10.5:1 and 10.4:1 as of December 31, 2024, and September 30, 2024, respectively. EMICO’s risk-to-capital ratio remains below the NCDOI’s maximum risk-to-capital ratio of 25:1. North Carolina’s calculation of risk-to-capital excludes the risk in-force for delinquent loans given the established loss reserves against all delinquencies. EMICO’s ongoing risk-to-capital ratio will depend principally on the magnitude of future losses incurred by EMICO, the effectiveness of ongoing loss mitigation activities, new business volume and profitability, the impact of quota share reinsurance, the amount of policy lapses and the amount of additional capital that is generated or distributed by the business.
Under PMIERs, we are subject to operational and financial requirements that private mortgage insurers must meet in order to remain eligible to insure loans that are purchased by the GSEs. As of September 30, 2025, we had estimated available assets of $4,974 million against $3,070 million net
35

required assets under PMIERs compared to available assets of $4,992 million against $3,031 million net required assets as of June 30, 2025. The sufficiency ratio as of September 30, 2025, was 162%, or $1,904 million, above the PMIERs requirements, compared to 165%, or $1,961 million, above the PMIERs requirements as of June 30, 2025. Our PMIERs required assets benefited from a reinsurance credit of $1,889 million and $1,870 million related to third-party reinsurance as of September 30, 2025, and June 30, 2025, respectively.
On August 21, 2024, the GSEs and the FHFA released updated PMIERs requirements phasing in a revision to available asset standards between March 31, 2025, and September 30, 2026. The updated standards differentiate between bonds based on credit quality and liquidity. The updates also establish limits for assets backed by residential mortgages or commercial real estate to mitigate the impact if such assets lose value during periods of housing stress. We expect to hold capital sufficiency well in excess of these requirements and do not expect the impact of these updates to be material to our sufficiency.
On January 17, 2025, Fitch upgraded the long-term financial strength and issuer credit ratings of EMICO from A- to A.
On August 6, 2025, Moody’s upgraded the insurance financial strength rating of EMICO from A3 to A2.
Recent transactions. In January 2025, we entered into two excess-of-loss reinsurance transactions that cover a portion of expected new insurance written from January 1, 2025, through December 31, 2025, and January 1, 2026, through December 31, 2026, and provide reinsurance coverage of approximately $225 million and $260 million, respectively.
On September 23, 2025, we entered into a quota share reinsurance agreement with a panel of reinsurers. Under the agreement, EMICO will cede approximately 34% of a portion of its expected new insurance written for the period from January 1, 2027, through December 31, 2027.
On September 30, 2025, we entered into a five-year, unsecured revolving credit facility (the “2025 Revolving Credit Facility”) with a syndicate of lenders in the initial aggregate principal amount of $435 million, which replaces the previous $200 million senior unsecured revolving credit facility. The 2025 Revolving Credit Facility may be used for working capital needs and general corporate purposes, including the execution of dividends to our shareholders and capital contributions to our insurance subsidiaries. The 2025 Revolving Credit Facility remains undrawn as of September 30, 2025.
On October 27, 2025, we entered into an excess-of-loss reinsurance transaction that covers a portion of expected new insurance written from January 1, 2027, through December 31, 2027, and provides reinsurance coverage of approximately $170 million.
Capital returns. In March, June and September 2025, our primary mortgage insurance operating company, EMICO, paid dividends to EHI that support our ability to return capital to shareholders. We paid a dividend of $0.185 per common share during the first quarter of 2025. In April 2025, we announced an increase of our quarterly dividend to $0.21 per common share which was paid in both June and September 2025. Future dividend payments are subject to quarterly review and approval by our Board of Directors and Genworth and will be targeted to be paid in the third month of each quarter.
On May 1, 2024, we announced the authorization of a share repurchase program that allowed for the repurchase of up to $250 million of EHI’s common stock. The Company completed the repurchase of shares under this authorization in the second quarter of 2025. On April 30, 2025, we announced the authorization of a new share repurchase program that allows for the repurchase of up to an additional $350 million of EHI’s common stock. Under the programs, share repurchases may be made at our discretion from time to time in open market transactions in compliance with Rule 10b-18 under the Securities Exchange Act of 1934, as amended, privately negotiated transactions, or by other means, including through Rule 10b5-1 trading plans. 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
36

current ownership interest in Enact. We expect the timing and amount of any future share repurchases will be opportunistic and will depend on a variety of factors, including EHI’s share price, capital availability, business and market conditions, regulatory requirements, and debt covenant restrictions. The programs do not obligate EHI to acquire any amount of common stock, may be suspended or terminated at any time at the Company’s discretion without prior notice, and do not have a specified expiration date.
Returning capital to shareholders, balanced with our growth and risk management priorities, remains a priority as we look to drive shareholder value through time. Future return of capital will be shaped by our capital prioritization framework, which sets the following priorities: supporting our existing policyholders, growing our mortgage insurance business, funding attractive new business opportunities and returning capital to shareholders. Our total return of capital will also be based on our view of the prevailing and prospective macroeconomic conditions, regulatory landscape and business performance.
Results of Operations and Key Metrics
Results of Operations
Three months ended September 30, 2025, compared to three months ended September 30, 2024
The following table sets forth our consolidated results for the periods indicated:
 Three months ended
September 30,
Increase (decrease)
and percentage
change
(Amounts in thousands)
20252024
2025 vs. 2024
Revenues:   
Premiums$244,688 $249,055 $(4,367)(2)%
Net investment income68,611 61,056 7,55512 %
Net investment gains (losses)(2,834)(1,243)(1,591)(128)%
Other income990 720 27038 %
Total revenues311,455 309,588 1,8671 %
Losses and expenses: 
Losses incurred35,885 12,164 23,721195 %
Acquisition and operating expenses, net of deferrals50,500 53,091 (2,591)(5)%
Amortization of deferred acquisition costs and intangibles2,344 2,586 (242)(9)%
Interest expense12,897 12,290 6075 %
Total losses and expenses101,626 80,131 21,49527 %
Income before income taxes209,829 229,457 (19,628)(9)%
Provision for income taxes46,332 48,788 (2,456)(5)%
Net income$163,497 $180,669 $(17,172)(10)%
Loss ratio (2)
15 %5 %  
Expense ratio (3)
22 %22 %  
Net earned premium rate (4)
0.35 %0.36 %
_______________
(1)We define “NM” as not meaningful for increases or decreases greater than 300%.
(2)Loss ratio is calculated by dividing losses incurred by net earned premiums.
(3)Expense ratio is calculated by dividing acquisition and operating expenses, net of deferrals, plus amortization of deferred acquisition costs and intangibles by net earned premiums.
(4)Net earned premium rate is calculated by dividing direct earned premium less ceded premium, by average primary IIF.
37

Revenues
Premiums decreased modestly for the three months ended September 30, 2025, compared to the three months ended September 30, 2024, primarily as a result of higher ceded premiums partially offset by insurance in-force growth. The net earned premium rate was 0.35% for the three months ended September 30, 2025, down slightly from 0.36% for the three months ended September 30, 2024.
Net investment income increased for the three months ended September 30, 2025, compared to the three months ended September 30, 2024, primarily due to higher yields and higher average invested assets.
Net investment losses in the third quarter of 2025 and 2024 were driven primarily by realized losses on the sale of fixed maturity securities.
Losses and expenses
Losses incurred during the third quarter of 2025 and 2024 were both impacted by prior year development. In the third quarter of 2025, we recorded a reserve release of $45 million, driven by cure performance of delinquencies from 2024 and prior years. In the third quarter of 2024, we recorded a reserve release of $65 million primarily related to cure performance of delinquencies from 2023 and prior years. Current period primary delinquencies of 12,998 contributed $79 million of loss expense in the three months ended September 30, 2025. This compares to $75 million of loss expense from 12,964 primary delinquencies in the three months ended September 30, 2024.
The following table shows incurred losses for domestic mortgage insurance related to current and prior accident years for the periods indicated:
Three months ended
September 30,
(Amounts in thousands)
20252024
Losses and LAE incurred related to current accident year$76,361 $76,612 
Losses and LAE incurred related to prior accident years(44,720)(67,225)
Total incurred (1)
$31,641 $9,387 
_______________
(1)Excludes other reserves.
Acquisition and operating expenses, net of deferrals, decreased for the three months ended September 30, 2025, primarily due to restructuring activities in 2024 and higher ceding commissions.
The expense ratio was flat as a result of small decreases in both premiums and expenses.
Interest expense primarily relates to our 2029 Notes. For additional details see Note 7 to our unaudited condensed consolidated financial statements.
Provision for income taxes
The effective tax rate was 22.1% and 21.3% for the three months ended September 30, 2025 and 2024, respectively, consistent with the United States corporate federal income tax rate.
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Nine months ended September 30, 2025, compared to nine months ended September 30, 2024
The following table sets forth our consolidated results for the periods indicated:
 Nine months ended
September 30,
Increase (decrease)
and percentage
change
(Amounts in thousands)
20252024
2025 vs. 2024
Revenues:   
Premiums$734,763 $734,369 $394— %
Net investment income197,532 177,940 19,59211 %
Net investment gains (losses)(13,420)(15,640)2,22014 %
Other income4,246 3,329 91728 %
Total revenues923,121 899,998 23,1233 %
Losses and expenses: 
Losses incurred91,715 14,844 76,871
NM(1)
Acquisition and operating expenses, net of deferrals151,192 157,985 (6,793)(4)%
Amortization of deferred acquisition costs and intangibles6,978 7,137 (159)(2)%
Interest expense37,484 38,895 (1,411)(4)%
Loss on debt extinguishment— 10,930 (10,930)NM
Total losses and expenses287,369 229,791 57,57825 %
Income before income taxes635,752 670,207 (34,455)(5)%
Provision for income taxes138,669 144,877 (6,208)(4)%
Net income$497,083 $525,330 $(28,247)(5)%
Loss ratio (2)
12 %2 %  
Expense ratio (3)
22 %22 %  
Net earned premium rate (4)
0.35 %0.36 %
_______________
(1)We define “NM” as not meaningful for increases or decreases greater than 300%.
(2)Loss ratio is calculated by dividing losses incurred by net earned premiums.
(3)Expense ratio is calculated by dividing acquisition and operating expenses, net of deferrals, plus amortization of deferred acquisition costs and intangibles by net earned premiums.
(4)Net earned premium rate is calculated by dividing direct earned premium less ceded premium, by average primary IIF.
Revenues
Premiums were flat for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024, as insurance in-force growth and higher assumed premiums were offset by higher ceded premiums and slightly lower average premium rates. The net earned premium rate was 0.35% for the nine months ended September 30, 2025, down slightly from 0.36% for the nine months ended September 30, 2024.
Net investment income increased for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024, primarily attributable to an increase in investment yields and higher average invested assets.
Net investment losses in both periods were driven primarily by realized losses on the sale of fixed maturity securities.

39


Losses and expenses
Losses incurred during the first nine months of 2025 and 2024 were both impacted by favorable reserve adjustments. During the first nine months of 2025, we released reserves of $140 million primarily on prior accident year reserves driven by cure performance of delinquencies from 2024 and prior years. During the first nine months of 2024, we released reserves of $196 million primarily due to better than expected cure performance on delinquencies from 2023 and prior years. As part of the reserve adjustments in 2024, we also decreased our claim rate assumptions for new and existing delinquencies as a result of sustained favorable cure performance and lessening uncertainty in the economic environment. New primary delinquencies of 36,802 contributed $223 million of loss expense in the first nine months of 2025. This compares to $209 million of loss expense from 34,820 new primary delinquencies in the first nine months of 2024.
The following table shows incurred losses for domestic mortgage insurance related to current and prior accident years for the periods indicated:
Nine months ended
September 30,
(Amounts in thousands)
20252024
Losses and LAE incurred related to current accident year$220,985 $211,665 
Losses and LAE incurred related to prior accident years(142,862)(200,457)
Total incurred (1)
$78,123 $11,208 
_______________
(1)Excludes other reserves.
Acquisition and operating expenses, net of deferrals, decreased slightly driven primarily by severance expenses as a part of restructuring activities in 2024.
The expense ratio was flat due to a small decrease in expenses and flat premium growth.
The loss on debt extinguishment for the nine months ended September 30, 2024, relates to the expenses incurred associated with the redemption of our 2025 Notes.
Interest expense for the nine months ended September 30, 2025, primarily relates to our 2029 Notes, while interest expense for the nine months ended September 30, 2024, primarily relates to 2025 Notes and 2029 Notes. For additional details see Note 7 to our unaudited condensed consolidated financial statements.
Provision for income taxes
The effective tax rate was 21.8% and 21.6% for the nine months ended September 30, 2025 and 2024, respectively, consistent with the United States corporate federal income tax rate.
Use of Non-GAAP Financial Measures
We use a non-U.S. GAAP (“non-GAAP”) financial measure entitled “adjusted operating income.” This non-GAAP financial measure is additionally evaluated by both management and our Board of Directors. Management also uses adjusted operating income (loss) as a basis for determining awards and compensation for senior management and to evaluate performance on a basis comparable to that used by analysts. This measure has been established in order to increase transparency for the purposes of evaluating our core operating trends and enabling more meaningful comparisons with our peers. Although “adjusted operating income” is a non-GAAP financial measure, for the reasons discussed above we believe this measure aids in understanding the underlying performance of our operations.
40

“Adjusted operating income” is defined as U.S. GAAP net income excluding the effects of (i) net investment gains (losses), (ii) reorganization or restructuring costs and infrequent or unusual non-operating items, and (iii) gains (losses) on the extinguishment of debt.
(i)Net investment gains (losses) — The recognition of realized investment gains or losses can vary significantly across periods as the activity is highly discretionary based on the timing of individual securities sales due to such factors as market opportunities or exposure management. Trends in the profitability of our fundamental operating activities can be more clearly identified without the fluctuations of these realized gains and losses. We do not view them as indicative of our fundamental operating activities. Therefore, these items are excluded from our calculation of adjusted operating income.
(ii)Reorganization or restructuring costs and infrequent or unusual non-operating items are also excluded from adjusted operating income if, in our opinion, they are not indicative of overall operating trends.
(iii)Gains (losses) on the extinguishment of debt are also excluded from adjusted operating income, as we do not view them as indicative of overall operating trends.
In reporting non-GAAP measures in the future, we may make other adjustments for expenses and gains we do not consider reflective of core operating performance in a particular period. We may disclose other non-GAAP operating measures if we believe that such a presentation would be helpful for investors to evaluate our operating condition by including additional information.
Adjusted operating income is not a measure of total profitability, and therefore should not be considered in isolation or viewed as a substitute for U.S. GAAP net income. Our definition of adjusted operating income may not be comparable to similarly named measures reported by other companies, including our peers.
Adjustments to reconcile net income to adjusted operating income assume a 21% tax rate (unless otherwise indicated).
The following table includes a reconciliation of net income to adjusted operating income for the periods indicated:
Three months ended
September 30,
(Amounts in thousands)
20252024
Net income$163,497 $180,669 
Adjustments to net income:
Net investment (gains) losses2,834 1,243 
Costs associated with reorganization189 848 
Taxes on adjustments(635)(439)
Adjusted operating income$165,885 $182,321 
Adjusted operating income decreased for the three months ended September 30, 2025, as compared to September 30, 2024, primarily due to higher losses, partially offset by higher net investment income.
41

Nine months ended
September 30,
(Amounts in thousands)
20252024
Net income$497,083 $525,330 
Adjustments to net income:
Net investment (gains) losses13,420 15,640 
Costs associated with reorganization794 4,241 
Loss on debt extinguishment— 10,930 
Taxes on adjustments(2,985)(6,470)
Adjusted operating income$508,312 $549,671 
Adjusted operating income decreased for the nine months ended September 30, 2025, as compared to September 30, 2024, primarily due to higher losses, partially offset by higher net investment income and lower expenses.
Key Metrics
Management reviews the key metrics included within this section when analyzing the performance of our business. The metrics provided in this section are on a direct basis related to our domestic mortgage insurance portfolio.
The following table sets forth selected operating performance measures on a primary basis as of or for the periods indicated:
Three months ended
September 30,
(Dollar amounts in millions)
20252024
New insurance written$14,048$13,591
Primary insurance in-force(1)
$272,349$268,003
Primary risk in-force$71,144$69,611
Persistency rate83 %83 %
Primary policies in-force (count)953,657967,501
Delinquent loans (count)23,38221,027
Delinquency rate2.45 %2.17 %
Nine months ended
September 30,
(Dollar amounts in millions)
20252024
New insurance written$37,120$37,736
Persistency rate83 %83 %
_______________
(1)Represents the aggregate unpaid principal balance for loans we insure.
New insurance written (“NIW”)
NIW for the three months ended September 30, 2025, increased modestly compared to the three months ended September 30, 2024, while NIW for the nine months ended September 30, 2024, decreased slightly compared to the nine months ended September 30, 2024.
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The following table presents NIW by product for the periods indicated:
Three months ended
September 30,		Nine months ended
September 30,
(Amounts in millions)
2025202420252024
Primary$14,048 100 %$13,591 100 %$37,120 100 %$37,736 100 %
Pool— — — — — — — — 
Total$14,048 100 %$13,591 100 %$37,120 100 %$37,736 100 %

The following table presents primary NIW by underlying type of mortgage for the periods indicated:
Three months ended
September 30,		Nine months ended
September 30,
(Amounts in millions)
2025202420252024
Purchases$13,020 93 %$12,982 96 %$34,494 93 %$36,227 96 %
Refinances1,028 7 609 4 2,626 7 1,509 4 
Total$14,048 100 %$13,591 100 %$37,120 100 %$37,736 100 %

The following table presents primary NIW by policy payment type for the periods indicated:
Three months ended
September 30,		Nine months ended
September 30,
(Amounts in millions)
2025202420252024
Monthly$13,567 97 %$12,851 95 %$35,484 96 %$36,062 96 %
Single461 3 722 5 1,591 4 1,619 4 
Other20 — 18 — 45 — 55 — 
Total$14,048 100 %$13,591 100 %$37,120 100 %$37,736 100 %
43

The following table presents primary NIW by FICO score for the periods indicated:
Three months ended
September 30,
(Amounts in millions)
20252024
Over 760$7,097 50 %$6,433 47 %
740-7592,326 17 2,172 16 
720-7391,689 12 1,855 14 
700-7191,237 9 1,398 10 
680-699855 6 905 7 
660-679 (1)
498 3 446 3 
640-659228 2 268 2 
620-639112 1 105 1 
<6206 — 9 — 
Total$14,048 100 %$13,591 100 %
Nine months ended
September 30,
(Amounts in millions)
20252024
Over 760$18,929 51 %$18,122 48 %
740-7596,076 16 5,949 16 
720-7394,620 12 5,062 13 
700-7193,277 9 3,722 10 
680-6992,149 6 2,427 6 
660-679 (1)
1,222 3 1,396 4 
640-659585 2 750 2 
620-639243 1 289 1 
<62019 — 19 — 
Total$37,120 100 %$37,736 100 %
______________
(1)Loans with unknown FICO scores are included in the 660-679 category.
44


Loan-to-value (“LTV”) ratio is calculated by dividing the original loan amount, excluding financed premium, by the property’s acquisition value or fair market value at the time of origination. The following table presents primary NIW by LTV ratio for the periods indicated:
Three months ended
September 30,
(Amounts in millions)
20252024
95.01% and above$2,524 18 %$2,766 20 %
90.01% to 95.00%5,214 37 5,232 39 
85.01% to 90.00%4,226 30 4,044 30 
85.00% and below2,084 15 1,549 11 
Total$14,048 100 %$13,591 100 %
Nine months ended
September 30,
(Amounts in millions)
20252024
95.01% and above$7,158 19 %$7,735 21 %
90.01% to 95.00%13,635 37 14,336 38 
85.01% to 90.00%11,058 30 11,411 30 
85.00% and below5,269 14 4,254 11 
Total$37,120 100 %$37,736 100 %
Debt-to-income (“DTI”) ratio is calculated by dividing the borrower’s total monthly debt obligations by total monthly gross income. The following table presents primary NIW by DTI ratio for the periods indicated:
Three months ended
September 30,
(Amounts in millions)
20252024
45.01% and above$4,416 32 %$3,742 28 %
38.01% to 45.00%5,081 36 5,026 37 
38.00% and below4,551 32 4,823 35 
Total$14,048 100 %$13,591 100 %
Nine months ended
September 30,
(Amounts in millions)
20252024
45.01% and above$11,145 30 %$10,946 29 %
38.01% to 45.00%13,419 36 13,886 37 
38.00% and below12,556 34 12,904 34 
Total$37,120 100 %$37,736 100 %
Insurance in-force (“IIF”) and Risk in-force (“RIF”)
IIF increased since December 31, 2024, as NIW outpaced policy lapse and cancellations. The primary persistency rate was 83% for the three months ended September 30, 2025 and 2024. RIF increased since December 31, 2024 primarily as a result of higher IIF.
45

The following table sets forth IIF and RIF as of the dates indicated:
(Amounts in millions)
September 30, 2025December 31, 2024September 30, 2024
Primary IIF$272,349 100 %$268,825 100 %$268,003 100 %
Pool IIF342 — 379 — 394 — 
Total IIF$272,691 100 %$269,204 100 %$268,397 100 %
Primary RIF$71,144 100 %$69,985 100 %$69,611 100 %
Pool RIF52 — 57 — 60 — 
Total RIF$71,196 100 %$70,042 100 %$69,671 100 %

The following table sets forth primary IIF and primary RIF by origination as of the dates indicated:
(Amounts in millions)
September 30, 2025December 31, 2024September 30, 2024
Purchases IIF$250,002 92 %$243,730 91 %$242,514 90 %
Refinances IIF22,347 8 25,095 9 25,489 10 
Total IIF$272,349 100 %$268,825 100 %$268,003 100 %
Purchases RIF$65,825 93 %$64,031 91 %$63,622 91 %
Refinances RIF5,319 7 5,954 9 5,989 9 
Total RIF$71,144 100 %$69,985 100 %$69,611 100 %

The following table sets forth primary IIF and primary RIF by product as of the dates indicated:
(Amounts in millions)
September 30, 2025December 31, 2024September 30, 2024
Monthly IIF$246,528 90 %$241,785 90 %$240,369 89 %
Single IIF24,256 9 25,301 9 25,844 10 
Other IIF1,565 1 1,739 1 1,790 1 
Total IIF$272,349 100 %$268,825 100 %$268,003 100 %
Monthly RIF$65,527 92 %$64,078 91 %$63,582 91 %
Single RIF5,217 7 5,466 8 5,575 8 
Other RIF400 1 441 1 454 1 
Total RIF$71,144 100 %$69,985 100 %$69,611 100 %
46


The following table sets forth primary IIF by policy year as of the dates indicated:
(Amounts in millions)
September 30, 2025December 31, 2024September 30, 2024
2008 and prior$4,372 2 %$4,860 2 %$5,011 2 %
2009-20176,942 2 9,045 3 10,138 4 
20184,147 1 4,790 2 5,037 2 
20199,993 4 11,415 4 11,924 4 
202029,735 11 34,940 13 36,958 14 
202148,447 18 57,266 21 60,342 22 
202247,952 18 53,063 20 54,878 20 
202340,694 15 45,208 17 47,387 18 
202444,401 16 48,238 18 36,328 14 
202535,666 13 — — — — 
Total$272,349 100 %$268,825 100 %$268,003 100 %

The following table sets forth primary RIF by policy year as of the dates indicated:
(Amounts in millions)
September 30, 2025December 31, 2024September 30, 2024
2008 and prior$1,131 2 %$1,256 2 %$1,296 2 %
2009-20171,796 3 2,368 3 2,666 4 
20181,069 1 1,233 2 1,297 2 
20192,615 4 2,984 4 3,113 4 
20208,178 11 9,553 14 10,042 14 
202113,072 18 15,043 21 15,710 23 
202212,289 17 13,476 19 13,892 20 
202310,590 15 11,719 17 12,271 18 
202411,401 16 12,353 18 9,324 13 
20259,003 13 — — — — 
Total$71,144 100 %$69,985 100 %$69,611 100 %

47

The following table presents the development of primary IIF for the periods indicated:
Three months ended
September 30,
(Amounts in millions)
20252024
Beginning balance$269,754 $266,060 
NIW14,048 13,591 
Cancellations, principal repayments and other reductions (1)
(11,453)(11,648)
Ending balance$272,349 $268,003 
Nine months ended
September 30,
(Amounts in millions)20252024
Beginning balance$268,825 $262,937 
NIW37,120 37,736 
Cancellations, principal repayments and other reductions (1)
(33,596)(32,670)
Ending balance$272,349 $268,003 
______________
(1)Includes the estimated amortization of unpaid principal balance of covered loans.
The following table sets forth primary IIF by LTV ratio at origination as of the dates indicated:
(Amounts in millions)
September 30, 2025December 31, 2024September 30, 2024
95.01% and above$53,522 20 %$50,318 18 %$49,363 18 %
90.01% to 95.00%113,852 42 112,362 42 111,992 42 
85.01% to 90.00%79,390 29 79,932 30 79,628 30 
85.00% and below25,585 9 26,213 10 27,020 10 
Total$272,349 100 %$268,825 100 %$268,003 100 %
The following table sets forth primary RIF by LTV ratio at origination as of the dates indicated:
(Amounts in millions)September 30, 2025December 31, 2024September 30, 2024
95.01% and above$15,374 22 %$14,428 21 %$14,141 20 %
90.01% to 95.00%33,121 47 32,686 47 32,579 47 
85.01% to 90.00%19,589 27 19,729 28 19,649 28 
85.00% and below3,060 4 3,142 4 3,242 5 
Total$71,144 100 %$69,985 100 %$69,611 100 %
48

The following table sets forth primary IIF by FICO score at origination as of the dates indicated:
(Amounts in millions)
September 30, 2025December 31, 2024September 30, 2024
Over 760$119,234 44 %$115,554 43 %$114,424 43 %
740-75944,675 16 43,955 17 43,793 17 
720-73937,955 14 37,717 14 37,671 14 
700-71929,567 11 29,819 11 29,910 11 
680-69920,886 8 21,355 8 21,557 8 
660-679 (1)
11,079 4 11,245 4 11,391 4 
640-6596,001 2 6,147 2 6,179 2 
620-6392,414 1 2,461 1 2,495 1 
<620538 — 572 — 583 — 
Total$272,349 100 %$268,825 100 %$268,003 100 %
______________
(1)Loans with unknown FICO scores are included in the 660-679 category.
The following table sets forth primary RIF by FICO score at origination as of the dates indicated:
(Amounts in millions)
September 30, 2025December 31, 2024September 30, 2024
Over 760$30,991 44 %$29,985 43 %$29,644 43 %
740-75911,709 16 11,494 17 11,423 17 
720-73910,058 14 9,949 14 9,912 14 
700-7197,728 11 7,746 11 7,751 11 
680-6995,432 8 5,523 8 5,553 8 
660-679 (1)
2,906 4 2,924 4 2,951 4 
640-6591,564 2 1,589 2 1,592 2 
620-639619 1 629 1 636 1 
<620137 — 146 — 149 — 
Total$71,144 100 %$69,985 100 %$69,611 100 %
______________
(1)Loans with unknown FICO scores are included in the 660-679 category.
The following table sets forth primary IIF by DTI score at origination as of the dates indicated:
(Amounts in millions)
September 30, 2025December 31, 2024September 30, 2024
45.01% and above$64,258 24 %$59,864 22 %$58,718 22 %
38.01% to 45.00%99,259 36 97,361 36 96,861 36 
38.00% and below108,832 40 111,600 42 112,424 42 
Total$272,349 100 %$268,825 100 %$268,003 100 %
The following table sets forth primary RIF by DTI score at origination as of the dates indicated:
(Amounts in millions)
September 30, 2025December 31, 2024September 30, 2024
45.01% and above$16,876 24 %$15,674 22 %$15,353 22 %
38.01% to 45.00%25,765 36 25,226 36 25,052 36 
38.00% and below28,503 40 29,085 42 29,206 42 
Total$71,144 100 %$69,985 100 %$69,611 100 %

49

Delinquent loans and claims
Our delinquency management process begins with notification by the loan servicer of a delinquency on an insured loan. “Delinquency” is defined in our master policies as the borrower’s failure to pay when due an amount equal to the scheduled monthly mortgage payment under the terms of the mortgage. Generally, our master policies require an insured to notify us of a delinquency if the borrower fails to make two consecutive monthly mortgage payments prior to the due date of the next mortgage payment. Borrowers default for a variety of reasons, including but not limited to a reduction of income, unemployment, divorce, illness/death, inability to manage credit, falling home prices and interest rate levels. Borrowers may cure delinquencies by making all of the delinquent loan payments, agreeing to a loan modification, or by selling the property in full satisfaction of all amounts due under the mortgage. In most cases, delinquencies that are not cured result in a claim under our policy.
The following table shows a roll forward of the number of primary loans in default for the periods indicated:
Nine months ended
September 30,
(Loan count)
20252024
Number of delinquencies, beginning of period23,566 20,432 
New defaults36,802 34,820 
Cures(36,304)(33,640)
Claims paid(650)(552)
Rescissions and claim denials(32)(33)
Number of delinquencies, end of period23,382 21,027 
The following table sets forth changes in our direct primary case loss reserves for the periods indicated:
Nine months ended
September 30,
(Amounts in thousands) (1)
20252024
Loss reserves, beginning of period$472,110 $476,709 
Claims paid(36,675)(21,469)
Change in reserve84,746 5,273 
Loss reserves, end of period$520,181 $460,513 
______________
(1)Direct primary case reserves exclude LAE, pool, IBNR and reinsurance reserves.
The following tables set forth primary delinquencies, direct primary case reserves and RIF by aged missed payment status as of the dates indicated:
 September 30, 2025
(Dollar amounts in millions)
Delinquencies
Direct primary case
reserves (1)
Risk
in-force
Reserves as % of risk in-force
Payments in default:   
3 payments or less11,969 $109 $806 14 %
4 - 11 payments7,951 216 594 36 %
12 payments or more3,462 195 250 78 %
Total23,382 $520 $1,650 32 %
50

December 31, 2024
(Dollar amounts in millions)
Delinquencies
Direct primary case
reserves (1)
Risk
in-force
Reserves as % of risk in-force
Payments in default:   
3 payments or less12,712 $108 $849 13 %
4 - 11 payments7,701 191 545 35 %
12 payments or more3,153 173 213 81 %
Total23,566 $472 $1,607 29 %
 September 30, 2024
(Dollar amounts in millions)
Delinquencies
Direct primary case
reserves (1)
Risk
in-force
Reserves as % of risk in-force
Payments in default:    
3 payments or less11,132 $102 $715 14 %
4 - 11 payments6,831 188 477 39 %
12 payments or more3,064 171 202 85 %
Total21,027 $461 $1,394 33 %
______________
(1)Direct primary case reserves exclude LAE, pool, IBNR and reinsurance reserves.
The total reserves as a percentage of RIF as of September 30, 2025, has increased slightly compared to December 31, 2024, as a result of fewer newer delinquencies that have a lower expected claim rate.
Primary insurance delinquency rates differ from region to region in the United States at any one time depending upon economic conditions and cyclical growth patterns. Delinquency rates are shown by region based upon the location of the underlying property, rather than the location of the lender.
51

The table below sets forth our primary delinquency rates for the ten largest states by our primary RIF as of September 30, 2025:
 
Percent of RIF
Percent of direct primary case reserves
Delinquency
rate
By state:  
California12 %13 %2.63 %
Texas9 9 2.64 %
Florida (1)
8 13 3.11 %
New York (1)
5 9 3.28 %
Illinois (1)
4 5 3.01 %
Arizona4 4 2.57 %
Michigan4 3 2.20 %
Georgia
3 4 3.07 %
North Carolina3 2 2.00 %
Pennsylvania3 3 2.23 %
All other states (2)
45 35 2.16 %
Total100 %100 %2.45 %
______________
(1)Jurisdiction predominantly uses a judicial foreclosure process, which generally increases the amount of time it takes for a foreclosure to be completed.
(2)Includes the District of Columbia.
The table below sets forth our primary delinquency rates for the ten largest states by our primary RIF as of December 31, 2024:
 
Percent of RIF
Percent of direct primary case reserves
Delinquency
rate
By state:   
California12 %12 %2.53 %
Texas9 9 2.64 %
Florida (1)
8 12 3.67 %
New York (1)
5 10 3.30 %
Illinois (1)
4 6 2.96 %
Arizona4 3 2.35 %
Michigan4 3 2.14 %
Georgia3 4 3.02 %
North Carolina3 2 2.14 %
Pennsylvania3 3 2.17 %
All other states (2)
45 36 2.10 %
Total100 %100 %2.45 %
______________
(1)Jurisdiction predominantly uses a judicial foreclosure process, which generally increases the amount of time it takes for a foreclosure to be completed.
(2)Includes the District of Columbia.
52

The table below sets forth our primary delinquency rates for the ten largest Metropolitan Statistical Areas (“MSA”) or Metro Divisions (“MD”) by our primary RIF as of September 30, 2025:
Percent of RIF
Percent of direct primary case reserves
Delinquency
rate
By MSA or MD:
Phoenix, AZ MSA3 %3 %2.66 %
Chicago-Naperville, IL MD3 4 3.20 %
Atlanta, GA MSA3 3 3.28 %
New York, NY MD2 5 3.68 %
Dallas, TX MD2 2 2.34 %
Houston, TX MSA2 3 3.27 %
Washington-Arlington, DC MD2 2 2.27 %
Riverside-San Bernardino, CA MSA2 3 3.32 %
Los Angeles-Long Beach, CA MD2 3 3.05 %
Denver-Aurora-Lakewood, CO MSA2 1 1.52 %
All Other MSAs/MDs77 71 2.34 %
Total100 %100 %2.45 %
The table below sets forth our primary delinquency rates for the ten largest MSAs or MDs by our primary RIF as of December 31, 2024:
 
Percent of RIF
Percent of direct primary case reserves
Delinquency
rate
By MSA or MD:   
Phoenix, AZ MSA3 %3 %2.41 %
Chicago-Naperville, IL MD3 4 3.29 %
Atlanta, GA MSA3 3 3.02 %
New York, NY MD2 6 3.53 %
Houston, TX MSA2 3 3.58 %
Dallas, TX MD2 2 2.38 %
Washington-Arlington, DC MD2 2 2.03 %
Riverside-San Bernardino, CA MSA2 3 3.25 %
Los Angeles-Long Beach, CA MD2 2 2.65 %
Denver-Aurora-Lakewood, CO MSA2 1 1.38 %
All Other MSAs/MDs77 71 2.35 %
Total100 %100 %2.45 %
The number of delinquencies often does not correlate directly with the number of claims received because delinquencies may cure. The rate at which delinquencies cure is influenced by borrowers’ financial resources and circumstances and regional economic differences. Whether a delinquency leads to a claim correlates highly with the borrower’s equity at the time of delinquency, as it influences the borrower’s willingness to continue to make payments, the borrower’s or the insured’s ability to sell the home for an amount sufficient to satisfy all amounts due under the mortgage loan and the borrower’s financial ability to continue making payments. When we receive notice of a delinquency, we use our proprietary model to determine whether a delinquent loan is a candidate for a modification. When our model identifies such a candidate, our loan workout specialists prioritize cases for loss mitigation based upon the likelihood that the loan will result in a claim. Loss mitigation actions include loan modification,
53

extension of credit to bring a loan current, foreclosure forbearance, pre-foreclosure sale and deed-in-lieu. These loss mitigation efforts often are an effective way to reduce our claim exposure and ultimate payouts.
The following table sets forth the dispersion of primary RIF and direct primary case reserves by policy year and delinquency rates as of September 30, 2025:
 
Percent
of RIF
Percent of direct
primary case
reserves
Delinquency
rate
Cumulative
delinquency
rate (1)
Policy year:    
2008 and prior2 %8 %7.85 %5.55 %
2009-20173 7 4.85 %0.59 %
20181 4 4.91 %0.92 %
20194 6 3.17 %0.80 %
202011 12 2.20 %0.87 %
202118 21 2.45 %1.47 %
202217 22 2.69 %2.25 %
202315 14 2.33 %1.96 %
202416 6 1.36 %1.24 %
202513 — 0.18 %0.18 %
Total portfolio100 %100 %2.45 %4.12 %
______________
(1)Calculated as the sum of the number of policies where claims were ever paid to date and number of policies for loans currently in default divided by policies ever in-force.
The following table sets forth the dispersion of primary RIF and loss reserves by policy year and delinquency rates as of December 31, 2024:
 
Percent
of RIF
Percent of direct
primary case
reserves
Delinquency
rate
Cumulative
delinquency
rate (1)
Policy year:    
2008 and prior2 %10 %8.17 %5.55 %
2009-20162 6 4.75 %0.60 %
20171 4 4.37 %0.84 %
20182 5 4.66 %0.96 %
20194 8 3.31 %0.89 %
202014 14 2.14 %0.94 %
202121 21 2.25 %1.51 %
202219 20 2.50 %2.18 %
202317 10 1.83 %1.64 %
202418 2 0.49 %0.47 %
Total portfolio100 %100 %2.45 %4.17 %
______________
(1)Calculated as the sum of the number of policies where claims were ever paid to date and number of policies for loans currently in default divided by policies ever in-force.
54

Loss reserves in policy years 2008 and prior are outsized compared to their representation of RIF. The size of these policy years at origination, particularly 2005 through 2008, combined with the significant decline in home prices led to significant losses in policy years prior to 2009. Although uncertainty remains with respect to the ultimate losses we will experience on these policy years, they have become a smaller percentage of our total mortgage insurance portfolio. The concentration of loss reserves has shifted to newer book years in line with changes in RIF. As of September 30, 2025, our 2018 and newer policy years represented approximately 95% of our primary RIF and 85% of our total direct primary case reserves.
Investment Portfolio
Our investment portfolio is affected by factors described below, each of which in turn may be affected by current macroeconomic conditions as noted above in “—Trends and Conditions.” The investment portfolios of our insurance subsidiaries are directed by the Enact Investment Committee, a management-level committee, with Genworth serving as the primary investment manager. The investment portfolio of EHI is directed by a separate management-level EHI Investment Committee with a third-party investment manager. These parties, with oversight from our Board of Directors and our senior management team, are responsible for the execution of our investment strategy. Our investment portfolio is an important component of our consolidated financial results and represents our primary source of claims paying resources. Our investment portfolio primarily consists of a diverse mix of highly rated fixed maturity securities and is designed to achieve the following objectives:
•Meet policyholder obligations through maintenance of sufficient liquidity;
•Preserve capital;
•Generate investment income;
•Maximize statutory capital; and
•Increase shareholder value, among other objectives.
To achieve our portfolio objectives, our investment strategy focuses primarily on:
•Our business outlook, including current and expected future investment conditions;
•Investments selection based on fundamental, research-driven strategies;
•Diversification across a mix of fixed income, low-volatility investments while actively pursuing strategies to enhance yield;
•Regular evaluation and optimization of our asset class mix;
•Continuous monitoring of investment quality, duration, and liquidity; and
•Regulatory capital requirements.
55

Fixed Maturity Securities Available-for-Sale
The following table presents the fair value of our fixed maturity securities available-for-sale as of the dates indicated:
 September 30, 2025December 31, 2024
(Amounts in thousands)
Fair value
% of
total
Fair value
% of
total
U.S. government, agencies and GSEs$270,865 4 %$277,363 5 %
State and political subdivisions486,893 8 467,476 8 
Non-U.S. government179,399 3 83,802 2 
U.S. corporate2,872,978 48 2,825,679 50 
Non-U.S. corporate807,524 13 772,624 14 
Residential mortgage-backed292,768 5 8,364 — 
Commercial mortgage-backed81,112 1 — — 
Other asset-backed1,076,962 18 1,189,465 21 
Total available-for-sale fixed maturity securities
$6,068,501 100 %$5,624,773 100 %
Our investment portfolio did not include any direct residential real estate or whole mortgage loans as of September 30, 2025 or December 31, 2024. We have no derivative financial instruments in our investment portfolio.
As of both September 30, 2025, and December 31, 2024, 99% of our investment portfolio was rated investment grade. The following table presents the security ratings of our fixed maturity securities as of the dates indicated:
 September 30, 2025December 31, 2024
AAA8 %11 %
AA26 22 
A30 31 
BBB35 35 
BB & below1 1 
Total
100 %100 %
The table below presents the effective duration and investment yield on our investments available-for-sale, excluding cash and cash equivalents as of the dates indicated:
 September 30, 2025December 31, 2024
Duration (in years)4.64.1
Pre-tax yield (% of average investment portfolio assets)4.3 %4.0 %
We manage credit risk by analyzing issuers, transaction structures and any associated collateral. We also manage credit risk through country, industry, sector and issuer diversification and prudent asset allocation practices.
We primarily mitigate interest rate risk by employing a buy and hold investment philosophy that seeks to match fixed income maturities with expected liability cash flows in modestly adverse economic scenarios.
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Liquidity and Capital Resources
Cash Flows
The following table summarizes our consolidated cash flows for the periods indicated:
Nine months ended
September 30,
(Amounts in thousands)
20252024
Net cash provided by (used in): 
Operating activities$538,253 $520,132 
Investing activities(236,446)(183,613)
Financing activities(357,662)(278,839)
Net increase (decrease) in cash and cash equivalents$(55,855)$57,680 
Our most significant source of operating cash flows is premiums received from our insurance policies, while our most significant uses of operating cash flows are generally for claims paid on our insured policies and our operating expenses. Net cash provided by operating activities increased largely due to higher net investment income and premiums. Cash flows from operations were also impacted by net investment losses, changes in reserves and the timing of tax payments.
Investing activities are primarily related to purchases, sales and maturities of our investment portfolio. Net cash used in investing activities increased primarily as a result of purchases of fixed maturity securities outpacing maturities and sales in the current year due to the deployment of operating cash flows.
During the nine months ended September 30, 2025, our cash flows from financing activities included dividends paid of $91 million and share repurchases of $255 million. The amount and timing of future dividends is discussed within “—Trends and Conditions” as well as below. During the nine months ended September 30, 2024, our cash flows from financing activities included dividends paid of $83 million and share repurchases of $169 million. Our cash flows from financing activities during the nine months ended September 30, 2024 also included the issuance of our 2029 Notes and the redemption of our 2025 Notes.
Capital Resources and Financing Activities
We issued our 2029 Notes in the second quarter of 2024 with interest payable semi-annually in arrears in May and November of each year. The 2029 Notes mature on May 28, 2029. We may redeem the 2029 Notes, in whole or in part, at any time prior to April 28, 2029, at our option, by paying an additional premium. At any time on or after April 28, 2029, we may redeem the 2029 Notes, in whole or in part, at our option, at 100% of the principal amount, plus accrued and unpaid interest. The 2029 Notes contain customary events of default which, subject to certain notice and cure conditions, can result in the acceleration of the principal and accrued interest on the outstanding notes if we breach the terms of the indenture.
The proceeds from our 2029 Notes, along with other available cash, were used to redeem our 2025 Notes during the second quarter of 2024.
On September 30, 2025, we entered into a credit agreement with a syndicate of lenders that provides for a five-year, unsecured revolving credit facility (the “2025 Revolving Credit Facility”) in the initial aggregate principal amount of $435 million, which replaces the previous $200 million senior unsecured revolving credit facility. The 2025 Revolving Credit Facility matures in September 2030, but under certain conditions EHI may need to repay any outstanding amounts and terminate the 2025 Revolving Credit Facility earlier than the maturity date. We may use borrowings under the 2025 Revolving Credit Facility for working capital needs and general corporate purposes, including the execution of dividends to our shareholders and capital contributions to our insurance subsidiaries. The 2025 Revolving Credit Facility
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contains several covenants, including financial covenants relating to minimum net worth, maximum debt to capitalization level and PMIERs compliance. We are in compliance with all covenants of the 2025 Revolving Credit Facility and the 2025 Revolving Credit Facility has remained undrawn through September 30, 2025.
We continually evaluate opportunities based upon market conditions to further increase our financial flexibility including through raising additional capital, restructuring or refinancing some or all of our outstanding debt or pursuing other options such as reinsurance or credit risk transfer transactions. There can be no guarantee that any such opportunities will be available on favorable terms or at all.
Restrictions on the Payment of Dividends
The ability of our regulated insurance operating subsidiaries to pay dividends and distributions to us is restricted by certain provisions of North Carolina insurance laws. Our insurance subsidiaries may pay dividends only from unassigned surplus; payments made from sources other than unassigned surplus, such as paid-in and contributed surplus, are categorized as distributions. Notice of all dividends must be submitted to the Commissioner of the NCDOI (the “Commissioner”) within 5 business days after declaration of the dividend, and at least 30 days before payment thereof. No dividend may be paid until 30 days after the Commissioner has received notice of the declaration thereof and (i) has not within that period disapproved the payment or (ii) has approved the payment within the 30-day period. Any distribution, regardless of amount, requires that same 30-day notice to the Commissioner, but also requires the Commissioner’s affirmative approval before being paid. Based on our estimated statutory results and in accordance with applicable dividend restrictions, our insurance subsidiaries have the capacity to pay dividends from unassigned surplus of $3 million as of September 30, 2025, with 30-day advance notice to the Commissioner of the intent to pay. In addition to dividends and distributions, alternative mechanisms, such as share repurchases, subject to any requisite regulatory approvals, may be utilized from time to time to upstream surplus.
In addition, we review multiple other considerations in parallel to determine a prospective dividend strategy for our regulated insurance operating subsidiaries. Given the regulatory focus on the reasonableness of an insurer’s surplus in relation to its outstanding liabilities and the adequacy of its surplus relative to its financial needs for any dividend, our insurance subsidiaries consider the minimum amount of policyholder surplus after giving effect to any contemplated future dividends. Regulatory minimum policyholder surplus is not codified in North Carolina law and limitations may vary based on prevailing business conditions including, but not limited to, the prevailing and future macroeconomic conditions. We are subject to statutory accounting requirements that establish a contingency reserve of at least 50% of net earned premiums annually for ten years, after which time it is released into policyholder surplus. While we began 10-year contingency reserve releases during 2024, minimum policyholder surplus could be a limitation on the future dividends of our regulated operating subsidiaries.
Another consideration in the development of the dividend strategies for our regulated insurance operating subsidiaries is our expected level of compliance with PMIERs. Under PMIERs, EMICO is subject to operational and financial requirements that approved insurers must meet in order to remain eligible to insure loans purchased by the GSEs.
Our regulated insurance operating subsidiaries are also subject to statutory “risk-to-capital” (“RTC”) requirements that affect the dividend strategies of our regulated operating subsidiaries. EMICO’s domiciliary regulator, the NCDOI, requires the maintenance of a statutory RTC ratio not to exceed 25:1. See “—Risk-to-Capital Ratio” for additional RTC trend analysis.
We consider potential future dividends compared to the prior year statutory net income in the evaluation of dividend strategies for our regulated operating subsidiaries. We also consider the dividend payout ratio, or the ratio of potential future dividends compared to the estimated U.S. GAAP net income, in the evaluation of our dividend strategies. In either case, we do not have prescribed target or maximum thresholds, but we do evaluate the reasonableness of a potential dividend relative to the actual or
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estimated income generated in the proceeding or preceding calendar year after giving consideration to prevailing business conditions including, but not limited to the prevailing and future macroeconomic conditions. In addition, the dividend strategies of our regulated operating subsidiaries are made in consultation with Genworth.
EMICO paid dividends of approximately $130 million, $130 million and $200 million in September 2025, June 2025 and March 2025, respectively, that will primarily be used to support our ability to return capital to shareholders and bolster financial flexibility. We intend to continue to use future EMICO dividends and distributions for these purposes.
The revolving credit agreement requires EHI to maintain the following financial covenants: a minimum consolidated net worth equal to the sum of (i) $3,729,000,000, (ii) 50% of cumulative consolidated net income of the Company for each fiscal quarter of the Company (beginning with the fiscal quarter ending September 30, 2025) for which consolidated net income is positive, and (iii) 50% of any increase in the consolidated net worth of the Company after September 30, 2025 resulting from the issuance of capital stock by or capital contributions to, in each case, the Company or any of its subsidiaries; a maximum debt-to-total capitalization ratio of 0.35 to 1.00; and compliance with all applicable financial requirements under the Private Mortgage Insurer Eligibility Requirements published by the Federal Home Loan Mortgage Corporation and the Federal National Mortgage Association. For purposes of determining EHI’s compliance with the foregoing financial covenants, the consolidated net worth metric and debt-to-capitalization ratio (including, in each case, any component thereof) are each calculated as set forth in the credit agreement.
In addition to the restrictions described above, all dividends from EHI are subject to Genworth consent and EHI Board of Directors approval.
Risk-to-Capital Ratio
We compute our RTC ratio on a separate company statutory basis, as well as for our combined insurance operations. The RTC ratio is net RIF divided by policyholders’ surplus plus statutory contingency reserve. Our net RIF represents RIF, net of reinsurance ceded, and excludes risk on policies that are currently delinquent and for which loss reserves have been established. Statutory capital consists primarily of statutory policyholders’ surplus (which increases as a result of statutory net income and decreases as a result of statutory net loss and dividends paid), plus the statutory contingency reserve. The statutory contingency reserve is reported as a liability on the statutory balance sheet.
Certain states have insurance laws or regulations that require a mortgage insurer to maintain a minimum amount of statutory capital (including the statutory contingency reserve) relative to its level of RIF in order for the mortgage insurer to continue to write new business. While formulations of minimum capital vary in certain states, the most common measure applied allows for a maximum permitted RTC ratio of 25:1.
The following table presents the calculation of our estimated RTC ratio for our combined mortgage insurance subsidiaries as of the dates indicated:
(Dollar amounts in millions)September 30, 2025December 31, 2024
Statutory policyholders’ surplus$823 $887 
Contingency reserves4,471 4,336 
Combined statutory capital $5,294 $5,223 
Adjusted RIF(1)
$54,353 $55,001 
Combined risk-to-capital ratio10.310.5
______________
(1)Adjusted RIF for purposes of calculating combined statutory RTC differs from RIF presented elsewhere herein. In accordance with NCDOI requirements, adjusted RIF excludes delinquent policies.
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The following table presents the calculation of our estimated RTC ratio for our primary insurance company, EMICO, as of the dates indicated:
(Dollar amounts in millions)September 30, 2025December 31, 2024
Statutory policyholders’ surplus$785 $850 
Contingency reserves4,457 4,325 
EMICO statutory capital $5,242 $5,175 
Adjusted RIF(1)
$53,685 $54,418 
EMICO risk-to-capital ratio10.2 10.5
______________
(1)Adjusted RIF for purposes of calculating EMICO statutory RTC differs from RIF presented elsewhere herein. In accordance with NCDOI requirements, adjusted RIF excludes delinquent policies.
Liquidity
As of September 30, 2025, we maintained liquidity in the form of cash and cash equivalents of $544 million compared to $599 million as of December 31, 2024, and we also held significant levels of investment-grade fixed maturity securities and short-term investments that can be monetized should our cash and cash equivalents be insufficient to meet our obligations.
On September 30, 2025, we entered into a five-year, unsecured revolving credit facility with a syndicate of lenders in the initial aggregate principal amount of $435 million. The 2025 Revolving Credit Facility matures in September 2030, but under certain conditions EHI may need to repay any outstanding amounts and terminate the 2025 Revolving Credit Facility earlier than the maturity date. The 2025 Revolving Credit Facility may be used for working capital needs and general corporate purposes, including the execution of dividends to our shareholders and capital contributions to our insurance subsidiaries. The 2025 Revolving Credit Facility has remained undrawn through September 30, 2025.
The principal sources of liquidity in our business currently include insurance premiums, net investment income and cash flows from investment sales and maturities. We believe that our assets and the operating cash flows generated by our mortgage insurance subsidiary will provide the funds necessary to satisfy our claim payments, operating expenses and taxes in both the short term and long term. However, our subsidiaries are subject to regulatory and other capital restrictions with respect to the payment of dividends. We currently have no material financing commitments, such as lines of credit or guarantees, that are expected to affect our liquidity, other than the 2029 Notes and the 2025 Revolving Credit Facility.
Financial Strength Ratings
The following EMICO financial strength ratings have been independently assigned by third-party rating organizations and represent our current ratings, which are subject to change.
Name of AgencyRatingOutlookActionDate of Rating
Moody’s Investor Service, Inc.A2StableUpgradeAugust 6, 2025
Fitch Ratings, Inc.AStableUpgradeJanuary 17, 2025
S&P Global RatingsA-StableAffirmOctober 27, 2025
A.M. BestA-Positive
Affirm
September 18, 2025
Enact Re is currently assigned a rating of A- by A.M. Best and a rating of A- by S&P Global Ratings.
Contractual Obligations and Commitments
Our loss reserves have a high degree of estimation due to macroeconomic uncertainty and the nature of our business. Therefore, it is possible we could have higher contractual obligations related to these
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loss reserves if they do not cure or progress to claim as we expect. Other than changes in our aforementioned loss reserves, there have been no material additions or changes to our contractual obligations or other off-balance sheet arrangements.
Critical Accounting Estimates
As of the filing date of this report, there were no material changes in our critical accounting estimates from those discussed in our Annual Report.
New Accounting Standards
Refer to Note 2 in our unaudited condensed consolidated financial statements for the nine months ended September 30, 2025 and 2024, and in our audited consolidated financial statements for the years ended December 31, 2024 and 2023, for a discussion of recently adopted and not yet adopted accounting standards.
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Item 3. Quantitative and Qualitative Disclosures About Market Risk
We own and manage a large investment portfolio of various holdings, types and maturities. Investment income is one of our material sources of revenue and the investment portfolio represents the primary resource supporting operational and claim payments. The assets within the investment portfolio are exposed to the same factors that affect overall financial market performance. While our investment portfolio is exposed to factors affecting markets worldwide, it is most sensitive to fluctuations in the drivers of United States markets.
We manage market risk via our defined investment policy guidelines implemented by our investment managers with oversight from our Board of Directors and our senior management. Important drivers of our market risk exposure that we monitor and manage include, but are not limited to:
•Changes to the level of interest rates. Increasing interest rates may reduce the value of certain fixed-rate bonds held in the investment portfolio. Higher rates may cause variable-rate assets to generate additional income. Decreasing rates will have the reverse impact. Significant changes in interest rates can also affect persistency and claim rates that may require that the investment portfolio be restructured to better align it with future liabilities and claim payments. Such restructuring may cause investments to be liquidated when market conditions are adverse.
•Changes to the term structure of interest rates. Rising or falling rates typically change by different amounts along the yield curve. These changes may have unforeseen impacts on the value of certain assets.
•Market volatility/changes in the real or perceived credit quality of investments. Deterioration in the quality of investments, identified through changes to our own or third-party (e.g., rating agency) assessments, will reduce the value and potentially the liquidity of investments.
•Concentration risk. If the investment portfolio is highly concentrated in one asset, or in multiple assets whose values are highly correlated, the value of the total portfolio may be greatly affected by the change in value of just one asset or a group of highly correlated assets.
•Prepayment risk. Bonds may have call provisions that permit debtors to repay prior to maturity when it is to their advantage. This typically occurs when rates fall below the interest rate of the debt.
Market risk is measured for all investment assets at the individual security level. Market risks that are not fully captured by the quantitative analysis and material market risk changes that occur from the last reporting period to the current are discussed within “—Trends and conditions” and “—Investment Portfolio” in “Item 2—Management’s Discussion and Analysis of Financial Condition and Results of Operations”.
As of September 30, 2025, the effective duration of our investments available-for-sale was 4.6 years, which means that an instantaneous parallel shift (movement up or down) in the yield curve of 100 basis points would result in a change of 4.6% in fair value of our investments available-for-sale.
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Item 4. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
As of September 30, 2025, an evaluation was conducted under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended). Based on this evaluation, the Chief Executive Officer and the Chief Financial Officer concluded that our disclosure controls and procedures were effective as of September 30, 2025.
Changes in Internal Control Over Financial Reporting During the Quarter Ended September 30, 2025
There have been no changes in our internal control over financial reporting during the quarter ended September 30, 2025, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
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Part II. Other Information
Item 1. Legal Proceedings
We are not subject to any pending material legal proceedings.
Item 1A. Risk Factors
We have disclosed within Part I, Item 1A in our Annual Report the risk factors that could have a material adverse effect on our business, results of operations and/or financial condition. There have been no material changes from the risk factors previously disclosed. You should carefully consider the risk factors set forth in the Annual Report and the other information set forth elsewhere in this Form 10-Q. These risk factors and other information may not describe every risk that we face. The occurrence of any additional risks and uncertainties that are currently immaterial or unknown could have a material adverse effect on our business, results of operations and/or financial condition.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Issuer Purchases of Equity Securities
The table below sets forth information regarding repurchases of our common shares during the three months ended September 30, 2025:
Period
(Dollar amounts in thousands except per share amounts)
Total Number of Shares PurchasedAverage Price Paid per ShareTotal Number of Shares Purchased as Part of Publicly Announced Plans or Programs
Approximate Dollar Value of Shares that May Yet be Purchased under Plans or Programs (1)
July 1 - July 31, 2025884,562$35.82 884,562$261,226 
August 1 - August 31, 2025806,675$37.19 806,675$231,225 
September 1 - September 30, 20251,133,262$38.35 1,133,262$187,764 
Total2,824,499$37.23 2,824,499$187,764 
(1) On April 30, 2025, we announced the authorization of a share repurchase program that allows for the repurchase of up to $350 million of EHI’s common stock. The share repurchase program has no expiration date.

The Company purchased 1,158,693 shares at an average price of $36.19 per share from October 1, 2025 through October 31, 2025.
Item 5. Other Information
Trading Plans
During the quarter ended September 30, 2025, no director or Section 16 officer adopted or terminated any “Rule 10b5-1 trading arrangements” or “non-Rule 10b5-1 trading arrangements” (in each case, as defined in Item 408(a) of Regulation S-K).
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Item 6. Exhibits
Exhibit
Number		Description of Exhibit
10.1†
31.1*
31.2*
32.1**
32.2**
101.INSInline XBRL Instance Document
101.SCHInline XBRL Taxonomy Extension Schema Document
101.CALInline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEFInline XBRL Taxonomy Extension Definition Linkbase Document
101.LABInline XBRL Taxonomy Extension Label Linkbase Document
101.PREInline XBRL Taxonomy Extension Presentation Linkbase Document
104Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)
______________
*    Filed herewith
**    Furnished herewith and not deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended
†    Pursuant to Item 601(a)(5) of Regulation S-K, schedules and similar attachments to this exhibit have been omitted because they do not contain information material to an investment or voting decision and such information is not otherwise disclosed in such exhibit. The Corporation will supplementally provide a copy of any omitted schedule or similar attachment to the U.S. Securities and Exchange Commission or its staff upon request.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

ENACT HOLDINGS, INC.
(Registrant)
Dated: November 6, 2025
By:
/s/ Hardin Dean Mitchell
Hardin Dean Mitchell
Executive Vice President, Chief Financial Officer and Treasurer
(Principal Financial Officer)
By:
/s/ James McMullen
James McMullen
Vice President, Controller and Principal Accounting Officer

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