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 six months ended June 30, 2026 and 2025, and our audited consolidated financial statements and related notes for the years ended December 31, 2025 and 2024, within our Annual Report on Form 10-K for the fiscal year ending December 31, 2025 (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, except as may be required by any applicable securities law. 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. Through the second quarter of 2026, the United States economy continued to be subject to significant volatility and uncertainty, largely related to geopolitical tensions including the Iran conflict, changing economic policies, and continued inflationary pressure. 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 June 2026 that Consumer Price Index (“CPI”) inflation was 3.5% year-over-year compared to 3.3% year-over-year in March 2026 while the unemployment rate has fallen slightly to 4.2% in June 2026 from 4.3% in March 2026. Elevated inflation remains a challenge for the Federal Open Market Committee as it navigates heightened uncertainty.
U.S. mortgage rates remained elevated into the second quarter of 2026. 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. Despite slowing of house price growth nationally in 2026 according to the Federal Housing Finance Agency (“FHFA”) Monthly Purchase-Only House Price Index (Seasonally Adjusted), affordability remains challenged.
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 would implement the acceptance of VantageScore 4.0 for mortgages delivered to Fannie Mae and Freddie Mac. We began accepting VantageScore 4.0 on mortgages during the second quarter of 2026, though volume remains immaterial to date.
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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 $15.2 billion in the second quarter of 2026 increased 15% compared to the second quarter of 2025. The increase was driven by larger estimated purchase and refinance mortgage insurance markets in the second quarter of 2026. Our primary persistency rate was 80% during the second quarter of 2026 and 82% for the second quarter of 2025.
Net earned premiums were relatively consistent in the second quarter of 2026 compared to the second quarter of 2025 as slightly lower average premium rates and higher ceded premiums were offset by insurance in-force and assumed premium growth.
Loss experience. Our loss ratio for the three months ended June 30, 2026, was 14% as compared to 10% for the three months ended June 30, 2025. Both periods were impacted by favorable reserve development. In the second quarter of 2026, we released $37 million of reserves, driven by cure performance and loss mitigation activities. This compares to the second quarter of 2025, where we recorded a $48 million reserve release driven by cure performance and loss mitigation activities.
New delinquencies in the second quarter of 2026 increased compared to the second quarter of 2025 due to the normal loss development pattern on newer books. Current period primary delinquencies of 12,299 contributed $68 million of loss expense in the second quarter of 2026. This compares to $69 million of loss expense from 11,567 primary delinquencies that were reported in the second quarter of 2025. 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 June 30, 2026, 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 9.9:1, compared with risk-to-capital ratios of 10.1:1 and 10.3:1 as of December 31, 2025, and June 30, 2025, 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 June 30, 2026, we had estimated available assets of $5,002 million against $3,108 million net required assets under PMIERs compared to available assets of $5,016 million against $3,097 million net required assets as of March 31, 2026. The sufficiency ratio as of June 30, 2026, was 161%, or $1,894 million,
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above the PMIERs requirements, compared to 162%, or $1,919 million, above the PMIERs requirements as of March 31, 2026. Our PMIERs required assets benefited from a reinsurance credit of $1,931 million and $1,944 million related to third-party reinsurance as of June 30, 2026, and March 31, 2026, 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.
Recent transactions. None
Capital returns. In May 2026, we announced the increase of our quarterly dividend from $0.21 to $0.24 per common share, which was paid in June 2026. 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 April 30, 2025, we announced the authorization of a new share repurchase program that allowed for the repurchase of up to an additional $350 million of EHI’s common stock. The Company completed the repurchase of shares under this authorization during the first quarter of 2026. On February 3, 2026, we announced the authorization of a new share repurchase program that allows for the repurchase of up to an additional $500 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 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.
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Results of Operations and Key Metrics
Results of Operations
Three months ended June 30, 2026, compared to three months ended June 30, 2025
The following table sets forth our consolidated results for the periods indicated:
Three months ended June 30, Increase (decrease)and percentagechange
(Amounts in thousands) 2026 2025 2026 vs. 2025
Revenues:
Premiums $ 244,656 $ 245,289 $ (633) — %
Net investment income 73,211 65,884 7,327 11 %
Net investment gains (losses) (2,234) (7,343) 5,109 70 %
Other income 1,675 1,060 615 58 %
Total revenues 317,308 304,890 12,418 4 %
Losses and expenses:
Losses incurred 33,264 25,289 7,975 32 %
Acquisition and operating expenses, net of deferrals 49,467 50,598 (1,131) (2) %
Amortization of deferred acquisition costs and intangibles 2,123 2,205 (82) (4) %
Interest expense 12,485 12,296 189 2 %
Total losses and expenses 97,339 90,388 6,951 8 %
Income before income taxes 219,969 214,502 5,467 3 %
Provision for income taxes 45,131 46,694 (1,563) (3) %
Net income $ 174,838 $ 167,808 $ 7,030 4 %
Loss ratio (1) 14 % 10 %
Expense ratio (2) 21 % 22 %
Net earned premium rate (3) 0.34 % 0.35 %
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(1)Loss ratio is calculated by dividing losses incurred by net earned premiums.
(2)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.
(3)Net earned premium rate is calculated by dividing direct earned premium less ceded premium, by average primary IIF.
Revenues
Premiums were relatively consistent for the three months ended June 30, 2026, compared to the three months ended June 30, 2025, as slightly lower average premium rates and higher ceded premiums were offset by insurance in-force and assumed premium growth. The net earned premium rate was 0.34% for the three months ended June 30, 2026, down slightly from 0.35% for the three months ended June 30, 2025.
Net investment income increased for the three months ended June 30, 2026, compared to the three months ended June 30, 2025, primarily due to higher yields and higher average invested assets.
Net investment losses in the second quarter of 2026 and 2025 were driven primarily by realized losses on the sale of fixed maturity securities.
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Losses and expenses
Losses incurred during the second quarter of 2026 and 2025 were both impacted by prior year development. In the second quarter of 2026, we recorded a reserve release of $37 million, driven by cure performance and loss mitigation activities. In the second quarter of 2025, we recorded a reserve release of $48 million primarily related to cure performance of delinquencies and loss mitigation activities. Current period primary delinquencies of 12,299 contributed $68 million of loss expense in the three months ended June 30, 2026. This compares to $69 million of loss expense from 11,567 primary delinquencies in the three months ended June 30, 2025. In 2025, we reduced the expected claim rates as a result of sustained favorable cure performance and our market expectations.
The following table shows incurred losses for domestic mortgage insurance related to current and prior accident years for the periods indicated:
Three months ended June 30,
(Amounts in thousands) 2026 2025
Losses and LAE incurred related to current accident year $ 66,528 $ 66,782
Losses and LAE incurred related to prior accident years (37,966) (46,353)
Total incurred (1) $ 28,562 $ 20,429
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(1)Excludes other reserves.
Acquisition and operating expenses, net of deferrals, decreased slightly for the three months ended June 30, 2026, primarily due to higher ceding commissions, partially offset by higher employee expenses.
The expense ratio decreased slightly as the decline in expenses outpaced the decline in premiums.
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 20.5% and 21.8% for the three months ended June 30, 2026 and 2025, respectively, consistent with the United States corporate federal income tax rate.
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Six months ended June 30, 2026, compared to six months ended June 30, 2025
The following table sets forth our consolidated results for the periods indicated:
Six months ended June 30, Increase (decrease)and percentagechange
(Amounts in thousands) 2026 2025 2026 vs. 2025
Revenues:
Premiums $ 487,506 $ 490,075 $ (2,569) (1) %
Net investment income 144,117 128,921 15,196 12 %
Net investment gains (losses) (8,057) (10,586) 2,529 24 %
Other income 5,811 3,256 2,555 78 %
Total revenues 629,377 611,666 17,711 3 %
Losses and expenses:
Losses incurred 70,425 55,830 14,595 26 %
Acquisition and operating expenses, net of deferrals 96,504 100,692 (4,188) (4) %
Amortization of deferred acquisition costs and intangibles 4,246 4,634 (388) (8) %
Interest expense 24,853 24,587 266 1 %
Total losses and expenses 196,028 185,743 10,285 6 %
Income before income taxes 433,349 425,923 7,426 2 %
Provision for income taxes 90,739 92,337 (1,598) (2) %
Net income $ 342,610 $ 333,586 $ 9,024 3 %
Loss ratio (1) 14 % 11 %
Expense ratio (2) 21 % 21 %
Net earned premium rate (3) 0.34 % 0.35 %
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(1)Loss ratio is calculated by dividing losses incurred by net earned premiums.
(2)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.
(3)Net earned premium rate is calculated by dividing direct earned premium less ceded premium, by average primary IIF.
Revenues
Premiums decreased slightly in the six months ended June 30, 2026, compared to the six months ended June 30, 2025, as slightly lower average premium rates and higher ceded premiums and were mostly offset by insurance in-force growth and higher assumed premiums. The net earned premium rate was 0.34% for the six months ended June 30, 2026, down slightly from 0.35% for the six months ended June 30, 2025.
Net investment income increased for the six months ended June 30, 2026, compared to the six months ended June 30, 2025, 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.
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Losses and expenses
Losses incurred during the first six months of 2026 and 2025 were both impacted by favorable reserve adjustments. During the first six months of 2026, we released reserves of $76 million primarily on prior accident year reserves driven by cure performance and loss mitigation activities. During the first six months of 2025, we released reserves of $95 million primarily due to better than expected cure performance on delinquencies from 2024 and prior years. New primary delinquencies of 25,858 contributed $145 million of loss expense in the first six months of 2026. This compares to $144 million of loss expense from 23,804 new primary delinquencies in the first six months of 2025. In 2025, we reduced the expected claim rates as a result of sustained favorable cure performance and our market expectations.
The following table shows incurred losses for domestic mortgage insurance related to current and prior accident years for the periods indicated:
Six months ended June 30,
(Amounts in thousands) 2026 2025
Losses and LAE incurred related to current accident year $ 145,837 $ 144,624
Losses and LAE incurred related to prior accident years (84,180) (98,142)
Total incurred (1) $ 61,657 $ 46,482
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(1)Excludes other reserves.
Acquisition and operating expenses, net of deferrals, decreased slightly driven primarily by higher ceding commissions, partially offset by higher employee expenses.
The expense ratio was flat due to a small decrease in expenses and flat premium growth.
Interest expense for the six months ended June 30, 2026 and 2025, primarily relate 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 20.9% and 21.7% for the six months ended June 30, 2026 and 2025, 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.
“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
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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 June 30,
(Amounts in thousands) 2026 2025
Net income $ 174,838 $ 167,808
Adjustments to net income:
Net investment (gains) losses 2,234 7,343
Costs associated with reorganization 971 (24)
Taxes on adjustments (673) (1,537)
Adjusted operating income $ 177,370 $ 173,590
Adjusted operating income increased for the three months ended June 30, 2026, as compared to June 30, 2025, primarily due to higher net investment income and lower expenses, partially offset by higher losses.
Six months ended June 30,
(Amounts in thousands) 2026 2025
Net income $ 342,610 $ 333,586
Adjustments to net income:
Net investment (gains) losses 8,057 10,586
Costs associated with reorganization 971 605
Taxes on adjustments (1,896) (2,350)
Adjusted operating income $ 349,742 $ 342,427
Adjusted operating income increased for the six months ended June 30, 2026, as compared to June 30, 2025, primarily due to higher net investment income and lower expenses, partially offset by higher losses.
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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 June 30,
(Dollar amounts in millions) 2026 2025
New insurance written $15,199 $13,254
Primary insurance in-force(1) $273,953 $269,754
Primary risk in-force $71,616 $70,401
Persistency rate 80 % 82 %
Primary policies in-force (count) 940,648 952,795
Delinquent loans (count) 24,330 22,118
Delinquency rate 2.59 % 2.32 %
Six months ended June 30,
(Dollar amounts in millions) 2026 2025
New insurance written $27,985 $23,072
Persistency rate 80 % 83 %
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(1)Represents the aggregate unpaid principal balance for loans we insure.
New insurance written
NIW for the three months ended June 30, 2026, increased compared to the three months ended June 30, 2025, primarily due to larger estimated purchase and refinance mortgage insurance markets in the second quarter of 2026. Similarly, NIW for the six months ended June 30, 2026, increased compared to the six months ended June 30, 2025, primarily due to higher mortgage refinancing originations.
The following table presents NIW by product for the periods indicated:
Three months ended June 30, Six months ended June 30,
(Amounts in millions) 2026 2025 2026 2025
Primary $ 15,199 100 % $ 13,254 100 % $ 27,985 100 % $ 23,072 100 %
Pool — — — — — — — —
Total $ 15,199 100 % $ 13,254 100 % $ 27,985 100 % $ 23,072 100 %
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The following table presents primary NIW by underlying type of mortgage for the periods indicated:
Three months ended June 30, Six months ended June 30,
(Amounts in millions) 2026 2025 2026 2025
Purchases $ 13,287 87 % $ 12,335 93 % $ 23,070 82 % $ 21,474 93 %
Refinances 1,912 13 919 7 4,915 18 1,598 7
Total $ 15,199 100 % $ 13,254 100 % $ 27,985 100 % $ 23,072 100 %
Refinance volume has increased in 2026 as a result of mortgage rate volatility.
The following table presents primary NIW by policy payment type for the periods indicated:
Three months ended June 30, Six months ended June 30,
(Amounts in millions) 2026 2025 2026 2025
Monthly $ 14,650 96 % $ 12,688 96 % $ 26,972 96 % $ 21,917 95 %
Single 526 4 554 4 973 4 1,130 5
Other 23 — 12 — 40 — 25 —
Total $ 15,199 100 % $ 13,254 100 % $ 27,985 100 % $ 23,072 100 %
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The following table presents primary NIW by credit score for the periods indicated:
Three months ended June 30,
(Amounts in millions) 2026 2025
Over 760 $ 7,745 51 % $ 6,843 52 %
740-759 2,556 17 2,160 16
720-739 1,769 12 1,651 12
700-719 1,392 9 1,146 9
680-699 895 6 746 6
660-679 (1) 550 4 411 3
640-659 207 1 212 1
620-639 81 — 80 1
<620 4 — 5 —
Total $ 15,199 100 % $ 13,254 100 %
Six months ended June 30,
(Amounts in millions) 2026 2025
Over 760 $ 14,385 51 % $ 11,832 51 %
740-759 4,753 17 3,750 16
720-739 3,215 12 2,931 13
700-719 2,499 9 2,040 9
680-699 1,636 6 1,294 6
660-679 (1) 957 3 724 3
640-659 371 1 357 1
620-639 161 1 131 1
<620 8 — 13 —
Total $ 27,985 100 % $ 23,072 100 %
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(1)Loans with unknown credit scores are included in the 660-679 category.
Beginning in the second quarter of 2026, an immaterial number of loans that use VantageScore 4.0 are included in the table above.
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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 June 30,
(Amounts in millions) 2026 2025
95.01% and above $ 2,950 20 % $ 2,615 20 %
90.01% to 95.00% 5,764 38 4,850 37
85.01% to 90.00% 4,310 28 3,919 29
85.00% and below 2,175 14 1,870 14
Total $ 15,199 100 % $ 13,254 100 %
Six months ended June 30,
(Amounts in millions) 2026 2025
95.01% and above $ 5,205 19 % $ 4,634 20 %
90.01% to 95.00% 10,409 37 8,421 36
85.01% to 90.00% 8,188 29 6,832 30
85.00% and below 4,183 15 3,185 14
Total $ 27,985 100 % $ 23,072 100 %
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 June 30,
(Amounts in millions) 2026 2025
45.01% and above $ 4,302 28 % $ 3,877 29 %
38.01% to 45.00% 5,350 35 4,747 36
38.00% and below 5,547 37 4,630 35
Total $ 15,199 100 % $ 13,254 100 %
Six months ended June 30,
(Amounts in millions) 2026 2025
45.01% and above $ 7,832 28 % $ 6,729 29 %
38.01% to 45.00% 9,866 35 8,338 36
38.00% and below 10,287 37 8,005 35
Total $ 27,985 100 % $ 23,072 100 %
Insurance in-force (“IIF”) and Risk in-force (“RIF”)
IIF decreased since December 31, 2025, as policy lapse and cancellations outpaced NIW. The primary persistency rate was 80% and 82% for the three months ended June 30, 2026 and 2025, respectively. RIF remained relatively flat from December 31, 2025.
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The following table sets forth IIF and RIF as of the dates indicated:
(Amounts in millions) June 30, 2026 December 31, 2025 June 30, 2025
Primary IIF $ 273,953 100 % $ 273,147 100 % $ 269,754 100 %
Pool IIF 306 — 331 — 355 —
Total IIF $ 274,259 100 % $ 273,478 100 % $ 270,109 100 %
Primary RIF $ 71,616 100 % $ 71,363 100 % $ 70,401 100 %
Pool RIF 48 — 51 — 54 —
Total RIF $ 71,664 100 % $ 71,414 100 % $ 70,455 100 %
The following table sets forth primary IIF and primary RIF by origination as of the dates indicated:
(Amounts in millions) June 30, 2026 December 31, 2025 June 30, 2025
Purchases IIF $ 249,532 91 % $ 249,902 91 % $ 246,701 91 %
Refinances IIF 24,421 9 23,245 9 23,053 9
Total IIF $ 273,953 100 % $ 273,147 100 % $ 269,754 100 %
Purchases RIF $ 65,963 92 % $ 65,890 92 % $ 64,901 92 %
Refinances RIF 5,653 8 5,473 8 5,500 8
Total RIF $ 71,616 100 % $ 71,363 100 % $ 70,401 100 %
The following table sets forth primary IIF and primary RIF by product as of the dates indicated:
(Amounts in millions) June 30, 2026 December 31, 2025 June 30, 2025
Monthly IIF $ 249,618 91 % $ 247,776 91 % $ 243,382 90 %
Single IIF 22,893 8 23,844 9 24,749 9
Other IIF 1,442 1 1,527 — 1,623 1
Total IIF $ 273,953 100 % $ 273,147 100 % $ 269,754 100 %
Monthly RIF $ 66,320 93 % $ 65,836 92 % $ 64,676 92 %
Single RIF 4,924 7 5,135 7 5,311 7
Other RIF 372 — 392 1 414 1
Total RIF $ 71,616 100 % $ 71,363 100 % $ 70,401 100 %
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The following table sets forth primary IIF by policy year as of the dates indicated:
(Amounts in millions) June 30, 2026 December 31, 2025 June 30, 2025
2008 and prior $ 3,947 1 % $ 4,219 2 % $ 4,535 2 %
2009-2018 8,987 3 10,420 3 11,844 4
2019 8,232 3 9,539 4 10,446 4
2020 24,569 9 28,074 10 31,497 12
2021 41,310 15 45,945 17 51,345 19
2022 42,388 16 46,173 17 49,640 18
2023 34,303 13 38,250 14 42,204 16
2024 38,075 14 42,043 15 45,708 17
2025 44,762 16 48,484 18 22,535 8
2026 27,380 10 — — — —
Total $ 273,953 100 % $ 273,147 100 % $ 269,754 100 %
The following table sets forth primary RIF by policy year as of the dates indicated:
(Amounts in millions) June 30, 2026 December 31, 2025 June 30, 2025
2008 and prior $ 1,021 1 % $ 1,092 2 % $ 1,173 2 %
2009-2018 2,307 3 2,690 3 3,063 5
2019 2,164 3 2,499 4 2,732 4
2020 6,812 9 7,739 11 8,646 12
2021 11,298 16 12,482 17 13,732 19
2022 11,028 15 11,884 17 12,681 18
2023 8,967 13 9,967 14 10,968 15
2024 9,819 14 10,812 15 11,720 17
2025 11,295 16 12,198 17 5,686 8
2026 6,905 10 — — — —
Total $ 71,616 100 % $ 71,363 100 % $ 70,401 100 %
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The following table presents the development of primary IIF for the periods indicated:
Three months ended June 30,
(Amounts in millions) 2026 2025
Beginning balance $ 272,475 $ 268,366
NIW 15,199 13,254
Cancellations, principal repayments and other reductions (1) (13,721) (11,866)
Ending balance $ 273,953 $ 269,754
Six months ended June 30,
(Amounts in millions) 2026 2025
Beginning balance $ 273,147 $ 268,825
NIW 27,985 23,072
Cancellations, principal repayments and other reductions (1) (27,179) (22,143)
Ending balance $ 273,953 $ 269,754
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(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) June 30, 2026 December 31, 2025 June 30, 2025
95.01% and above $ 56,164 20 % $ 54,221 20 % $ 52,438 20 %
90.01% to 95.00% 115,163 42 114,315 42 112,683 42
85.01% to 90.00% 76,257 28 78,746 29 79,237 29
85.00% and below 26,369 10 25,865 9 25,396 9
Total $ 273,953 100 % $ 273,147 100 % $ 269,754 100 %
The following table sets forth primary RIF by LTV ratio at origination as of the dates indicated:
(Amounts in millions) June 30, 2026 December 31, 2025 June 30, 2025
95.01% and above $ 16,209 23 % $ 15,608 22 % $ 15,034 21 %
90.01% to 95.00% 33,505 47 33,260 47 32,770 47
85.01% to 90.00% 18,765 26 19,410 27 19,558 28
85.00% and below 3,137 4 3,085 4 3,039 4
Total $ 71,616 100 % $ 71,363 100 % $ 70,401 100 %
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The following table sets forth primary IIF by credit score at origination as of the dates indicated:
(Amounts in millions) June 30, 2026 December 31, 2025 June 30, 2025
Over 760 $ 121,349 44 % $ 120,093 44 % $ 117,403 44 %
740-759 45,274 17 44,898 16 44,191 16
720-739 37,627 14 37,897 14 37,725 14
700-719 29,400 11 29,486 11 29,524 11
680-699 20,542 7 20,773 8 20,910 8
660-679 (1) 11,066 4 11,091 4 11,040 4
640-659 5,846 2 5,988 2 6,018 2
620-639 2,351 1 2,398 1 2,395 1
<620 498 — 523 — 548 —
Total $ 273,953 100 % $ 273,147 100 % $ 269,754 100 %
______________
(1)Loans with unknown credit scores are included in the 660-679 category.
Beginning in the second quarter of 2026, an immaterial number of loans that use VantageScore 4.0 are included in the table above.
The following table sets forth primary RIF by credit score at origination as of the dates indicated:
(Amounts in millions) June 30, 2026 December 31, 2025 June 30, 2025
Over 760 $ 31,519 44 % $ 31,186 44 % $ 30,502 43 %
740-759 11,878 17 11,765 16 11,579 17
720-739 9,980 14 10,049 14 9,983 14
700-719 7,712 11 7,727 11 7,701 11
680-699 5,354 7 5,412 8 5,432 8
660-679 (1) 2,914 4 2,913 4 2,886 4
640-659 1,530 2 1,564 2 1,565 2
620-639 603 1 615 1 614 1
<620 126 — 132 — 139 —
Total $ 71,616 100 % $ 71,363 100 % $ 70,401 100 %
______________
(1)Loans with unknown credit scores are included in the 660-679 category.
Beginning in the second quarter of 2026, an immaterial number of loans that use VantageScore 4.0 are included in the table above.
The following table sets forth primary IIF by DTI ratio at origination as of the dates indicated:
(Amounts in millions) June 30, 2026 December 31, 2025 June 30, 2025
45.01% and above $ 67,101 24 % $ 65,275 24 % $ 62,216 23 %
38.01% to 45.00% 100,092 37 99,748 36 98,136 36
38.00% and below 106,760 39 108,124 40 109,402 41
Total $ 273,953 100 % $ 273,147 100 % $ 269,754 100 %
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The following table sets forth primary RIF by DTI ratio at origination as of the dates indicated:
(Amounts in millions) June 30, 2026 December 31, 2025 June 30, 2025
45.01% and above $ 17,646 25 % $ 17,150 24 % $ 16,325 23 %
38.01% to 45.00% 26,002 36 25,893 36 25,463 36
38.00% and below 27,968 39 28,320 40 28,613 41
Total $ 71,616 100 % $ 71,363 100 % $ 70,401 100 %
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:
Six months ended June 30,
(Loan count) 2026 2025
Number of delinquencies, beginning of period 24,885 23,566
New defaults 25,858 23,804
Cures (25,746) (24,837)
Claims paid (641) (397)
Rescissions and claim denials (26) (18)
Number of delinquencies, end of period 24,330 22,118
The following table sets forth changes in our direct primary case loss reserves for the periods indicated:
Six months ended June 30,
(Amounts in thousands) (1) 2026 2025
Loss reserves, beginning of period $ 515,126 $ 472,110
Claims paid (43,698) (22,948)
Change in reserve 68,225 50,612
Loss reserves, end of period $ 539,653 $ 499,774
______________
(1)Direct primary case reserves exclude LAE, pool, IBNR and reinsurance reserves.
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The following tables set forth primary delinquencies, direct primary case reserves and RIF by aged missed payment status as of the dates indicated:
June 30, 2026
(Dollar amounts in millions) Delinquencies Direct primary casereserves (1) Riskin-force Reserves as % of risk in-force
Payments in default:
3 payments or less 11,709 $ 104 $ 808 13 %
4 - 11 payments 8,609 214 675 32 %
12 payments or more 4,012 222 308 72 %
Total 24,330 $ 540 $ 1,791 30 %
December 31, 2025
(Dollar amounts in millions) Delinquencies Direct primary casereserves (1) Riskin-force Reserves as % of risk in-force
Payments in default:
3 payments or less 12,647 $ 104 $ 867 12 %
4 - 11 payments 8,591 206 641 32 %
12 payments or more 3,647 205 270 76 %
Total 24,885 $ 515 $ 1,778 29 %
June 30, 2025
(Dollar amounts in millions) Delinquencies Direct primary casereserves (1) Riskin-force Reserves as % of risk in-force
Payments in default:
3 payments or less 11,011 $ 103 $ 734 14 %
4 - 11 payments 7,733 212 574 37 %
12 payments or more 3,374 185 240 77 %
Total 22,118 $ 500 $ 1,548 32 %
______________
(1)Direct primary case reserves exclude LAE, pool, IBNR and reinsurance reserves.
The total reserves as a percentage of RIF as of June 30, 2026, has remained relatively consistent compared to December 31, 2025.
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.
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The table below sets forth our primary delinquency rates for the ten largest states by our primary RIF as of June 30, 2026:
Percent of RIF Percent of direct primary case reserves Delinquencyrate
By state:
California 12 % 13 % 2.87 %
Texas 9 10 2.80 %
Florida (1) 9 13 3.24 %
New York (1) 5 8 3.29 %
Illinois (1) 4 5 3.19 %
Arizona 4 4 2.60 %
Michigan 4 2 2.45 %
Georgia 3 4 3.31 %
North Carolina 3 2 2.01 %
Pennsylvania (1) 3 3 2.36 %
All other states (2) 44 36 2.27 %
Total 100 % 100 % 2.59 %
______________
(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, 2025:
Percent of RIF Percent of direct primary case reserves Delinquencyrate
By state:
California 12 % 13 % 2.84 %
Texas 9 9 2.81 %
Florida (1) 8 13 3.35 %
New York (1) 5 9 3.38 %
Illinois (1) 4 5 3.15 %
Arizona 4 4 2.78 %
Michigan 4 3 2.33 %
Georgia 3 4 3.33 %
North Carolina 3 2 2.07 %
Pennsylvania (1) 3 3 2.29 %
All other states (2) 45 35 2.32 %
Total 100 % 100 % 2.62 %
______________
(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.
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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 June 30, 2026:
Percent of RIF Percent of direct primary case reserves Delinquencyrate
By MSA or MD:
Phoenix, AZ MSA 3 % 3 % 2.76 %
Atlanta, GA MSA 3 3 3.55 %
Chicago-Naperville, IL MD 3 4 3.43 %
Dallas, TX MD 2 2 2.42 %
Houston, TX MSA 2 3 3.39 %
New York, NY MD 2 5 3.67 %
Washington-Arlington, DC MD 2 2 2.36 %
Riverside-San Bernardino, CA MSA 2 3 3.68 %
Los Angeles-Long Beach, CA MD 2 3 3.49 %
Denver-Aurora-Lakewood, CO MSA 2 1 1.85 %
All Other MSAs/MDs 77 71 2.46 %
Total 100 % 100 % 2.59 %
The table below sets forth our primary delinquency rates for the ten largest MSAs or MDs by our primary RIF as of December 31, 2025:
Percent of RIF Percent of direct primary case reserves Delinquency rate
By MSA or MD:
Phoenix, AZ MSA 3 % 3 % 2.85 %
Chicago-Naperville, IL MD 3 4 3.31 %
Atlanta, GA MSA 3 3 3.59 %
Dallas, TX MD 2 2 2.49 %
Houston, TX MSA 2 3 3.54 %
New York, NY MD 2 5 3.70 %
Washington-Arlington, DC MD 2 2 2.62 %
Riverside-San Bernardino, CA MSA 2 3 3.53 %
Los Angeles-Long Beach, CA MD 2 3 3.26 %
Denver-Aurora-Lakewood, CO MSA 2 1 1.85 %
All Other MSAs/MDs 77 71 2.49 %
Total 100 % 100 % 2.62 %
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,
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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 June 30, 2026:
Percentof RIF Percent of directprimary casereserves Delinquencyrate Cumulativedelinquencyrate (1)
Policy year:
2008 and prior 1 % 7 % 7.84 % 5.54 %
2009-2018 3 9 5.01 % 0.60 %
2019 3 5 3.55 % 0.78 %
2020 9 10 2.48 % 0.86 %
2021 16 18 2.64 % 1.43 %
2022 15 21 3.15 % 2.52 %
2023 13 16 3.10 % 2.40 %
2024 14 11 2.21 % 1.83 %
2025 16 3 0.69 % 0.63 %
2026 10 — 0.09 % 0.09 %
Total portfolio 100 % 100 % 2.59 % 4.09 %
______________
(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, 2025:
Percentof RIF Percent of directprimary casereserves Delinquencyrate Cumulativedelinquencyrate (1)
Policy year:
2008 and prior 2 % 8 % 7.96 % 5.55 %
2009-2017 2 7 5.08 % 0.59 %
2018 1 4 5.31 % 0.95 %
2019 4 5 3.45 % 0.84 %
2020 11 11 2.41 % 0.91 %
2021 17 19 2.63 % 1.52 %
2022 17 22 2.98 % 2.45 %
2023 14 15 2.75 % 2.23 %
2024 15 8 1.73 % 1.52 %
2025 17 1 0.32 % 0.30 %
Total portfolio 100 % 100 % 2.62 % 4.13 %
______________
(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.
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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 June 30, 2026, our 2019 and newer policy years represented approximately 96% of our primary RIF and 84% 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.
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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:
June 30, 2026 December 31, 2025
(Amounts in thousands) Fair value % oftotal Fair value % oftotal
U.S. government, agencies and GSEs $ 286,142 5 % $ 257,307 4 %
State and political subdivisions 466,452 7 478,972 8
Non-U.S. government 198,849 3 185,462 3
U.S. corporate 2,776,874 45 2,810,727 46
Non-U.S. corporate 849,991 14 783,056 13
Residential mortgage-backed 358,002 6 349,333 6
Commercial mortgage-backed 223,468 4 129,562 2
Other asset-backed 1,002,197 16 1,056,123 18
Total available-for-sale fixed maturity securities $ 6,161,975 100 % $ 6,050,542 100 %
Our investment portfolio did not include any direct residential real estate or whole mortgage loans as of June 30, 2026 or December 31, 2025. We have no derivative financial instruments in our investment portfolio.
As of both June 30, 2026, and December 31, 2025, 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:
June 30, 2026 December 31, 2025
AAA 8 % 8 %
AA 29 28
A 30 30
BBB 32 33
BB & below 1 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:
June 30, 2026 December 31, 2025
Duration (in years) 4.9 4.7
Pre-tax yield (% of average investment portfolio assets) 4.6 % 4.4 %
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:
Six months ended June 30,
(Amounts in thousands) 2026 2025
Net cash provided by (used in):
Operating activities $ 342,552 $ 346,242
Investing activities (217,738) (115,187)
Financing activities (258,861) (217,520)
Net increase (decrease) in cash and cash equivalents $ (134,047) $ 13,535
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 remained relatively flat as lower expenses and premiums were offset by higher net investment income. Cash flows from operations were also impacted by net investment losses, changes in reserves and the timing of premium and 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 six months ended June 30, 2026, our cash flows from financing activities included dividends paid of $63 million and share repurchases of $187 million. The amount and timing of future dividends is discussed within “—Trends and Conditions” as well as below. During the six months ended June 30, 2025, our cash flows from financing activities included dividends paid of $60 million and share repurchases of $150 million.
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.
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 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
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Revolving Credit Facility and the 2025 Revolving Credit Facility has remained undrawn through June 30, 2026.
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 approximately $32 million as of June 30, 2026, 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 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
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conditions. In addition, the dividend strategies of our regulated operating subsidiaries are made in consultation with Genworth.
EMICO paid dividends of approximately $150 million in both March and June 2026 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’s 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) June 30, 2026 December 31, 2025
Statutory policyholders’ surplus $ 770 $ 806
Contingency reserves 4,588 4,513
Combined statutory capital $ 5,358 $ 5,319
Adjusted RIF(1) $ 53,122 $ 53,893
Combined risk-to-capital ratio 9.9 10.1
______________
(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) June 30, 2026 December 31, 2025
Statutory policyholders’ surplus $ 730 $ 768
Contingency reserves 4,571 4,498
EMICO statutory capital $ 5,301 $ 5,266
Adjusted RIF(1) $ 52,387 $ 53,206
EMICO risk-to-capital ratio 9.9 10.1
______________
(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 June 30, 2026, we maintained liquidity in the form of cash and cash equivalents of $448 million compared to $582 million as of December 31, 2025, 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 June 30, 2026.
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 Agency Rating Outlook Action Date of Rating
Moody’s Investors Service, Inc. A2 Stable Upgrade August 6, 2025
Fitch Ratings, Inc. A Stable Affirm April 21, 2026
S&P Global Ratings A- Positive Affirm January 15, 2026
A.M. Best A- 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 six months ended June 30, 2026 and 2025, and in our audited consolidated financial statements for the years ended December 31, 2025 and 2024, for a discussion of recently adopted and not yet adopted accounting standards.
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