What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2025-02-28 compared with 2024-02-29 · 281 added, 281 removed, 1327 unchanged (30% of the section changed)

2 unchanged sentences

Audited Financial Statements

Report of Independent Registered Public Accounting Firm ( KPMG LLP , Raleigh, North Carolina , Auditor Firm ID:

Report of Independent Registered Public Accounting Firm ( KPMG LLP , Chicago, Illinois , Auditor Firm ID:

Consolidated Balance Sheets as of December 31, 2024 and 20 23

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We identified the assessment of the valuation of loss reserves to be a critical audit matter.

The claim severity and claim rate assumptions used to develop reserves were inherently uncertain and involved significant management judgment, which required especially subjective auditor judgment.

Specifically, the claim severity and claim rate assumptions used to estimate reserves required especially subjective auditor judgment.

Additionally, the audit effort to assess the valuation of loss reserves required the involvement of professionals with specialized knowledge and experience.

The following are the primary procedures we performed to address the critical audit matter.

We evaluated, with the assistance of actuarial professionals, the design and tested the operating effectiveness of certain internal controls related to the valuation of loss reserves.

With the assistance of actuarial professionals, we evaluated the design and tested the operating effectiveness of certain internal controls related to the valuation of loss reserves.

This included controls related to the review and approval of the claim severity and claim rate reserve factors used in the estimate for loss reserves.

We involved actuarial professionals with specialized knowledge and experience, who assisted in:

We included actuarial professionals with specialized knowledge and experience, who assisted in:

• Assessing the Company’s reserving methodology by comparing to accepted actuarial methodologies;

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Interest expense 51,157 51,867 51,699

Loss on debt extinguishment 10,930 — —

Total losses and expenses

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$ 1,628 $ 2,371,861 $ 83,581 $ 1,648,453 $ 4,105,523

Cumulative effect of change in accounting, net of taxes — — 281 ( 281 ) —

Comprehensive income:

1 unchanged sentence

Other comprehensive income, net of taxes — — ( 466,325 ) — ( 466,325 )

Repurchase of common stock — ( 1,532 ) — — ( 1,532 )

Stock-based compensation expense and exercises and other — 11,739 — ( 1,878 ) 9,861

Dividends to Genworth — — — ( 200,294 ) ( 200,294 )

Capital contributions from Genworth — 903 — — 903

Dividends — — — ( 250,776 ) ( 250,776 )

Balance December 31, 2022

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Amortization of debt issuance costs 1,954 2,586 2,414

Loss on debt extinguishment 10,930 — —

Other — — ( 21 )

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Cash flows from financing activities:

Proceeds from the issuance of long-term debt 749,648 — —

Debt issuance costs ( 7,398 ) — —

Redemption of long-term debt ( 757,500 ) — —

Repurchase of common stock ( 243,968 ) ( 87,762 ) ( 1,532 )

Dividends paid ( 111,719 ) ( 212,964 ) ( 250,776 )

Other ( 11,062 ) — —

Net cash used in financing activities ( 381,999 ) ( 300,726 ) ( 252,308 )

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(“Genworth”) since EHI’s incorporation in Delaware in 2012.

On May 3, 2021, EHI amended its certificate of incorporation to change its name from Genworth Mortgage Holdings, Inc.

This amendment also authorized EHI to issue 600,000,000 shares of common stock, each having a par value of $ 0.01 per share.

Concurrently, we entered into a share exchange agreement with Genworth Holdings, Inc.

(“Genworth Holdings”), pursuant to which Genworth Holdings exchanged the 100 shares of our common stock owned by it, representing all of our issued and outstanding capital stock, for 162,840,000 newly issued shares of common stock, par value $ 0.01 , of EHI.

All of the share and per share information presented in the consolidated financial statements, notes to the consolidated financial statements and supplemental schedules to the financial statements has been adjusted to reflect the share exchange on a retroactive basis for all periods and as of all dates presented.

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.

On September 15, 2021, we priced our initial public offering (“IPO”) of common stock, which resulted in the issuance and sale of 13,310,400 shares of common stock at the IPO price of $ 19.00 per common share.

All shares were offered by the selling stockholder, our parent company, Genworth Holdings.

In addition to the shares sold in the IPO, 14,655,600 common shares were sold in a concurrent private sale (“Private Sale”) at a price per share of $ 17.86 , which is equal to the IPO price less the underwriting discount share.

Genworth Holdings also granted the underwriters a 30-day option to purchase up to an additional 1,996,560 common shares (“Over-Allotment Option”) at the IPO price less the underwriting discount.

On September 16, 2021, the underwriters exercised their option to purchase all 1,996,560 common shares permitted under the terms of the underwriting agreement.

The IPO, Private Sale and Over-Allotment Option (collectively the “Offering”) closed on September 20, 2021, and Genworth Holdings retained all net proceeds from the Offering.

The gross proceeds of the Offering, before payment of underwriter fees and other expenses, were approximately $ 553 million.

Costs directly related to the Offering, including underwriting fees and other expenses, were approximately $ 24 million.

We offer private mortgage insurance products predominantly insuring prime-based, individually underwritten residential mortgage loans (“primary mortgage insurance”).

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We operate our business through our primary insurance subsidiary, Enact Mortgage Insurance Corporation, (“EMICO”), formerly known as Genworth Mortgage Insurance Corporation, with operations in all 50 states and the District of Columbia.

We completed name changes to some of our subsidiary legal entities, including EMICO, during the first quarter of 2022.

EMICO is an approved insurer by the Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie Mac”).

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We have a broad customer base of mortgage lenders diversified by size, type and geography that includes large money center banks, non-bank lenders, national and local mortgage bankers, community banks and credit unions.

Our largest customer accounted for approximately $ 118 million, or 10 % of our

ENACT HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Years Ended December 31, 2023, 2022 and 2021

total revenues for the year ended December 31, 2023.

No other customer accounted for 10% or more of total revenues for the year ended December 31, 2023 and no customer accounted for 10% or more of total revenues for the years ended December 31, 2022 and 2021.

Our largest customer accounted for approximately $ 133 million or 11 % of our total revenues for the year ended December 31, 2024, and $ 118 million, or 10 % of our total revenues for the year ended December 31, 2023.

No other customer accounted for 10% or more of total revenues for the year ended December 31, 2024 or 2023 and no customer accounted for 10% or more of total revenues for the year ended December 31, 2022.

We also offer mortgage-related insurance and reinsurance through our wholly owned Bermuda-based subsidiary, Enact Re Ltd.

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We contributed $ 500 million into Enact Re during 2023.

As of December 31, 2023, Enact Re provided excess-of-loss reinsurance relating to GSE risk share and reinsured EMICO’s new and existing insurance in-force under quota share reinsurance agreements.

As of December 31, 2024, Enact Re reinsured EMICO’s new and existing insurance in-force under quota share reinsurance agreements and invests in new business opportunities for Enact, including assumption of excess of loss reinsurance relating to GSE risk share.

Additionally, we 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 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.

Our segment includes a run-off insurance block with reference properties in Mexico (“run-off business”), which is immaterial to our consolidated financial statements.

EMICO also includes a run-off insurance block with reference properties in Mexico (“run-off business”), which is immaterial to our consolidated financial statements.

(2) Summary of significant accounting policies

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Preparing financial statements in conformity with U.S.

ENACT HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Years Ended December 31, 2024, 2023 and 2022

GAAP requires us to make estimates and assumptions that affect reported amounts and related disclosures.

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Investment gains and losses are calculated on the basis of specific identification on the trade date.

ENACT HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Years Ended December 31, 2023, 2022 and 2021

Investment income on asset-backed securities is initially based upon yield, cash flow and prepayment assumptions at the date of purchase.

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We conduct the purchases, sales and related investment management decisions with the advice of Genworth.

As part of these services, we are charged an investment management fee, as agreed between both parties.

ENACT HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Years Ended December 31, 2024, 2023 and 2022

these services, we are charged an investment management fee, as agreed between both parties.

These fees are charged to investment expense and are included in net investment income in the consolidated statements of income.

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Allowance for Credit Losses on Available-For-Sale Securities

On January 1, 2021, we adopted new accounting guidance related to accounting for credit losses on financial instruments.

The guidance requires entities to recognize an allowance equal to its estimate of lifetime expected credit losses and applies to most debt instruments not measured at fair value.

The guidance retained most of the existing impairment guidance for available-for-sale fixed maturity securities but amends the presentation of credit losses to be presented as an allowance as opposed to a write-down and permits the reversal of credit losses when reassessing changes in the credit losses each reporting period.

Available-for-sale fixed maturity securities in an unrealized loss position are evaluated to determine whether the decline in fair value is related to credit losses or other factors.

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Estimating the cash flows expected to be collected is a quantitative and qualitative process that incorporates information received from third-party sources along with internal assumptions and judgments.

When developing the estimate of cash flows expected to be collected, we utilize an analytical model that provides for various loss scenarios and consider the industry sector, current levels of subordination, geographic location and other relevant characteristics of the security or underlying assets, as well as reasonable and supportable forecasts.

Losses are written off against the allowance when

ENACT HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Years Ended December 31, 2023, 2022 and 2021

deemed uncollectible or when we intend to sell or expect we will be required to sell a security prior to recovering our amortized cost.

When developing the estimate of cash flows expected to be collected, we utilize an analytical model that provides for various loss scenarios and considers the industry sector, current levels of subordination, geographic location and other relevant characteristics of the security or underlying assets, as well as reasonable and supportable forecasts.

Losses are written off against the allowance when deemed uncollectible or when we intend to sell or expect we will be required to sell a security prior to recovering our amortized cost.

We exclude accrued interest related to available-for-sale fixed maturity securities from the estimate of allowance for credit losses.

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Amounts written off related to accrued interest are recorded as a credit loss expense included in net investment gains (losses).

We adopted the guidance related to our available-for-sale fixed maturity securities using the modified retrospective method, which did not have a significant impact on our consolidated financial statements.

Equity Method Investments

Investments in which we are deemed to exert significant influence, but not control, are accounted for using the equity method of accounting except in cases where the fair value option has been elected.

Equity method investments not carried at fair value, which are not material as of December 31, 2023, are recorded in other assets on the consolidated balance sheets with their related income recorded within other income in the consolidated statements of income.

See Note 3 for details.

Investments in which we are deemed to exert significant influence, but not control, are accounted for using the equity method of accounting.

Equity method investments, which are not material as of December 31, 2024, are recorded in other assets on the consolidated balance sheets with their related income recorded within other income in the consolidated statements of income.

Fair Value Measurements

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We utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs.

ENACT HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Years Ended December 31, 2024, 2023 and 2022

All assets and liabilities carried at fair value are classified and disclosed in one of the following three categories:

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This category primarily consists of certain less liquid fixed maturity securities where we cannot corroborate the significant valuation inputs with market observable data.

ENACT HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Years Ended December 31, 2023, 2022 and 2021

As of each reporting period, all assets and liabilities recorded at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

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Acquisition costs are deferred and amortized to the extent they are recoverable from future profits.

Acquisition costs primarily consist of underwriting costs and are amortized in proportion to estimated gross profit.

Acquisition costs primarily consist of underwriting costs and are amortized in proportion to

ENACT HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Years Ended December 31, 2024, 2023 and 2022

estimated gross profit.

Judgment is used in evaluating these estimates and the assumptions upon which they are based.

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We completed a PDR analysis as of December 31, 2024 and 2023 and determined that no PDR was required.

Premium revenue, benefits and acquisition and operating expenses, net of deferrals, are reported net of the amounts relating to reinsurance ceded to other companies.

Premium revenue, losses and acquisition and operating expenses, net of deferrals, are reported net of the amounts relating to reinsurance ceded to other companies.

The cost of reinsurance is accounted for over the terms of the related treaties using assumptions consistent with those used to account for the underlying reinsured policies.

See Note 6 for details.

ENACT HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Years Ended December 31, 2023, 2022 and 2021

Loss Reserves

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We establish reserves to recognize the estimated liability for losses and LAE related to defaults on insured mortgage loans.

Loss reserves are established by estimating the number of loans in our inventory of delinquent loans that will result in a claim payment, which is referred to as the claim rate, and further estimating the amount of the claim payment, which is referred to as claim severity.

Loss reserves are established by estimating the number of loans in our inventory of delinquent loans that will result in a claim payment, which is referred to as the claim rate, and further

ENACT HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Years Ended December 31, 2024, 2023 and 2022

estimating the amount of the claim payment, which is referred to as claim severity.

The estimates are determined using a factor-based approach, in which assumptions of claim rates for loans in default and the average amount paid for loans that result in a claim are calculated using traditional actuarial techniques.

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For borrower-paid mortgage insurance, coverage ceases at the earlier of prepayment, or when the original principal is amortized to a 78% loan-to-value ratio in accordance with the Homeowners Protection Act of 1998.

ENACT HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Years Ended December 31, 2023, 2022 and 2021

We periodically review our premium earnings recognition models with any adjustments to the estimates reflected as a cumulative adjustment on a retrospective basis in current period net income.

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We determine deferred tax assets and/or liabilities by multiplying the differences between the financial reporting and tax reporting bases for assets and liabilities by the enacted tax rates expected to be in effect when such differences are recovered or settled if there is no change in law.

The effect on deferred taxes of a change in tax rates is recognized in net income (loss) in the period that includes the enactment date.

The effect on

ENACT HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Years Ended December 31, 2024, 2023 and 2022

deferred taxes of a change in tax rates is recognized in net income (loss) in the period that includes the enactment date.

Valuation allowances on deferred tax assets are estimated based on our assessment of the realizability of such amounts.

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These entities finance the reinsurance coverage by issuing mortgage insurance-linked notes to unaffiliated investors.

The assets of the VIEs are deposited in reinsurance trusts

ENACT HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Years Ended December 31, 2023, 2022 and 2021

for our benefit that will be the source of reinsurance claim payments.

The assets of the VIEs are deposited in reinsurance trusts for our benefit that will be the source of reinsurance claim payments.

Our involvement with these VIEs does not result in the unilateral power to direct the activities that most significantly affect the VIEs’ economic performance or result in the obligation to absorb losses or the right to receive benefits.

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Accounting Pronouncements Adopted

Credit Losses

On January 1, 2021, we early adopted new accounting guidance related to accounting for credit losses on financial instruments.

The guidance requires entities to recognize an allowance equal to its estimate of lifetime expected credit losses and applies to most debt instruments not measured at fair value.

Discussion of adoption of this guidance in relation to our portfolio of fixed maturity securities is included in the discussion of the allowance for credit losses on available-for-sale securities, above.

The new guidance further requires that expected credit losses on premiums receivable are measured in accordance with the credit loss requirements for financial instruments measured at amortized cost.

Due to the short-term nature of our premiums receivable, we consider lifetime expected credit losses on premiums receivable to be consistent with our current allowance and as a result the new accounting guidance did not have an impact on premiums receivable upon adoption.

The allowance for credit losses on premiums receivable is not material.

The new guidance also requires the recognition of an allowance for expected credit losses as a liability in our consolidated balance sheet for off-balance sheet credit exposures, including private placement investments.

We adopted the guidance related to our off-balance sheet credit exposures using the modified retrospective method, which did not have an impact on our consolidated financial statements.

In December 2019, the Financial Accounting Standards Board (“FASB”) issued new accounting guidance related to simplifying the accounting for income taxes.

The guidance eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences.

We early adopted this new accounting guidance on January 1, 2021, using the retrospective method or modified retrospective method for certain changes and prospective method for all other changes, which did not have a significant impact on our consolidated financial statements and disclosures.

Accounting Pronouncements Not Yet Adopted

Segment Reporting

In November 2023, the FASB released guidance under ASC 280 related to segment reporting disclosures.

The update requires incremental disclosure around significant segment expenses, measures of segment profit or loss used by the CODM and the CODM’s use of these metrics.

The guidance also

For our reporting as of December 2024, we have adopted guidance under ASC 280 related to segment reporting disclosures.

The update requires incremental disclosure around significant segment expenses, measures of segment profit or loss used by the chief operating decision maker (“CODM”) and the CODM’s use of these metrics.

The guidance also requires segment disclosures for entities with a single reportable segment.

See Note 17 for our added disclosure.

Accounting Pronouncements Not Yet Adopted

Income Tax Disclosure

In December 2023, the Financial Accounting Standards Board (“FASB”) issued new accounting guidance 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

ENACT HOLDINGS, INC.

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Years Ended December 31, 2024, 2023 and 2022

requires segment disclosures for entities with a single reportable segment.

As a result, we will be subject to these requirements for all annual and interim periods beginning as of December 31, 2024.

reconciling items that meet a quantitative threshold and additional disclosures about income taxes paid, among other qualitative and quantitative disclosure improvements.

This guidance is effective for us for annual reporting periods beginning on January 1, 2025 using the prospective method, with early adoption permitted, which we do not intend to elect.

The guidance will have no impact on our consolidated financial statements but will require expanded annual disclosures.

We are currently evaluating the impact the guidance may have on our processes, controls and disclosures.

Income Tax Disclosure

In December 2023, the FASB issued new accounting guidance 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.

This guidance is effective for us for annual reporting periods beginning on January 1, 2025 using the prospective method, with early adoption permitted.

Income Statement Disaggregation

In November 2024, the FASB issued new accounting guidance to require 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.

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Net realized gains (losses) ( 19,892 ) ( 14,022 ) ( 2,209 )

Change in allowance for credit losses on fixed maturity securities — 173 ( 2,330 )

Write-down of available-for-sale fixed maturity securities ( 2,757 ) — —

Change in allowance for credit losses on commitment ( 158 ) — 173

Net investment gains (losses) $ ( 22,807 ) $ ( 14,022 ) $ ( 2,036 )

ENACT HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Years Ended December 31, 2024, 2023 and 2022

Unrealized Investment Gains (Losses)

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Net unrealized investment gains (losses) $ ( 207,624 ) $ ( 230,556 ) $ ( 382,896 )

ENACT HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Years Ended December 31, 2023, 2022 and 2021

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 years ended December 31:

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Beginning balance $ ( 230,556 ) $ ( 382,896 ) $ 83,588

Cumulative effect of change in accounting, net of taxes — — 281

Unrealized gains (losses) arising during the period:

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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.

ENACT HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Years Ended December 31, 2024, 2023 and 2022

Fixed Maturity Securities Available-For-Sale

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Total investments $ 5,879,872 $ 20,712 $ ( 272,444 ) $ 5,628,140

ENACT HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Years Ended December 31, 2023, 2022 and 2021

As of December 31, 2023, the amortized cost, gross unrealized gains (losses) and fair value of our investment securities were as follows:

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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 December 31, 2023:

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

ENACT HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Years Ended December 31, 2024, 2023 and 2022

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

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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 decline in fair value is largely due to rising interest rates and recent market volatility and is not indicative of credit losses.

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.

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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.

ENACT HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Years Ended December 31, 2023, 2022 and 2021

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, 2023:

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Total for fixed maturity securities in an unrealized loss position $ 277,957 $ ( 4,822 ) 89 $ 3,801,500 $ ( 319,239 ) 824 $ 4,079,457 $ ( 324,061 ) 913

ENACT HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Years Ended December 31, 2024, 2023 and 2022

Contractual Maturities of Fixed Maturity Securities Available-For-Sale

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Total fixed maturity securities available-for-sale $ 5,876,502 $ 5,624,773

As of December 31, 2023, securities issued by the finance and insurance, technology and communications, consumer-non-cyclical and utilities industry groups represented approximately 31 %, 13 %, 11 % and 11 % respectively, of our domestic and foreign corporate fixed maturity securities portfolio.

As of December 31, 2024, securities issued by the finance and insurance, utilities, technology and communications, consumer-non-cyclical and energy industry groups represented approximately 32 %, 13 %, 11 %, 11 %, 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.

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government, which exceeded 10% of equity.

As of December 31, 2023 and 2022, $ 25.7 million and $ 25.1 million, respectively, of securities in our portfolio were on deposit with various state insurance commissioners in order to comply with relevant insurance regulations.

Equity Method Investments

In November 2021, we completed the acquisition of Genworth Financial Mauritius Holdings Limited from Genworth Financial International Holdings, LLC, a subsidiary of Genworth, for $ 27 million, its estimated fair value.

The primary asset of the entity is a minority ownership interest in a mortgage

ENACT HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Years Ended December 31, 2023, 2022 and 2021

guarantee business in India.

We invested an additional $ 6.5 million during 2022.

Based on our ownership percentage, we have concluded that we have significant influence over the entity and have classified our interest as an equity method investment which is recorded within other assets.

As of December 31, 2024 and 2023, $ 25.7 million of securities in our portfolio were on deposit with various state insurance commissioners in order to comply with relevant insurance regulations.

In connection with its reinsurance activities, the Company is required to maintain assets in trusts for the benefit of its contractual counterparties.

The fair value of the assets on deposit in these trusts was $ 141.9 million as of December 31, 2024, and $ 77.9 million as of December 31, 2023.

During 2024, the Company entered into an agreement to invest in a limited partnership with an expected term of ten years .

As of December 31, 2024, there are no balances outstanding related to this limited partnership, but we have committed to fund approximately $ 10 million over the life of the fund.

(4) Fair Value

1 unchanged sentence

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.

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”), broker quotes and/or internal models, 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.

3 unchanged sentences

These valuation techniques may change from period to period, based on the relevance and availability of market data.

ENACT HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Years Ended December 31, 2024, 2023 and 2022

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.

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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.

We classify private securities without an external rating or public bond spread as Level 3.

In general, a significant increase (decrease) in credit spreads

ENACT HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Years Ended December 31, 2023, 2022 and 2021

would have resulted in a significant decrease (increase) in the fair value for our fixed maturity securities as of December 31, 2023.

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 December 31, 2024.

For remaining securities priced using internal models, we determine fair value using an income approach.

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There were no fixed maturity securities classified as Level 1 as of December 31, 2024 and 2023.

ENACT HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Years Ended December 31, 2024, 2023 and 2022

Level 2 measurements

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State and political subdivisions $ 467,476 Multi-dimensional attribute-based modeling systems, third-party pricing vendors Trade prices, material event notices, Municipal Market Data benchmark yields, broker quotes

ENACT HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Years Ended December 31, 2023, 2022 and 2021

government $ 83,802 Matrix pricing, spread priced to benchmark curves, price quotes from market makers Benchmark yields, trade prices, broker quotes, comparative transactions, issuer spreads, bid-offer spread, market research publications, third-party pricing sources

1 unchanged sentence

corporate $ 652,427 Multi-dimensional attribute-based modeling systems, OAS-based models, price quotes from market makers Benchmark yields, trade prices, broker quotes, comparative transactions, issuer spreads, bid-offer spread, market research publications, third-party pricing sources

ENACT HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Years Ended December 31, 2024, 2023 and 2022

Residential mortgage-backed $ 8,364 OAS-based models, single factor binomial models, internally priced Prepayment 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

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Broker quotes

A portion of our U.S.

A portion of our non-U.S.

corporate and other asset-backed securities are valued using broker quotes.

2 unchanged sentences

The fair value of our Level 3 fixed maturity securities priced by broker quotes was $ 12.5 million as of December 31, 2024.

ENACT HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Years Ended December 31, 2023, 2022 and 2021

Internal models

6 unchanged sentences

Price caps are established using inputs from market participants.

For structured securities, the primary inputs to 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.

ENACT HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Years Ended December 31, 2024, 2023 and 2022

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 $ 269.1 million as of December 31, 2024.

80 unchanged sentences

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 December 31, 2024:

(Amounts in thousands) Valuation technique Fair value (1)

(Dollar amounts in thousands) Valuation technique Fair value (1)

Unobservable input Range (bps) Weighted-average (2)

10 unchanged sentences

Long-term borrowings $ 743,050 $ 764,070 $ 745,416 $ 748,785

(5) Loss reserves

Our reserve for losses and loss adjustment expenses (“LAE”) consisted of the following as of the dates indicated:

(Amounts in thousands) December 31, 2024 December 31, 2023

Domestic mortgage insurance $ 520,032 $ 517,515

Other reserves and run-off 4,683 676

Total loss reserves $ 524,715 $ 518,191

ENACT HOLDINGS, INC.

1 unchanged sentence

Years Ended December 31, 2024, 2023 and 2022

(5) Loss reserves

Activity for the liability for loss reserves is summarized as follows:

Activity for the liability for domestic mortgage insurance loss reserves is summarized as follows:

(Amounts in thousands) 2024 2023 2022

1 unchanged sentence

Reinsurance recoverable, beginning of year

Run-off reserves, beginning of year

( 1,294 ) — —

10 unchanged sentences

Reinsurance recoverable, end of year

Run-off reserves, end of year

2,909 1,294 —

Loss reserves, end of year $ 520,032 $ 517,515 $ 518,330

_______________

(1) Losses and LAE incurred and paid exclude losses related to our run-off business.

(1) Losses and LAE incurred related to our domestic mortgage insurance.

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.

Such adjustments, reflecting any variety of new and adverse trends, could 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.

3 unchanged sentences

We recorded losses and LAE incurred of $ 289.5 million, $ 275.4 million and $ 219.5 million related to the current accident year for the years ended December 2024, 2023 and 2022, respectively.

Losses related to insured events of the current accident year were primarily attributable to new delinquencies.

Losses in 2022 were impacted by $ 46 million of reserve strengthening on current year delinquencies.

Due to uncertainty in the economic environment, we increased the expected claim rate on new delinquencies beginning in 2022.

Losses related to insured events of the current accident year in all periods presented were primarily attributable to new delinquencies.

Losses in 2022 were also impacted by $ 46 million of reserve strengthening on current year delinquencies.

A portion of delinquencies in the periods presented were from borrowers participating in deferred or reduced payments (“forbearance”) as a result of COVID-19.

1 unchanged sentence

Historical experience with localized natural disasters, such as hurricanes, indicates a higher cure rate for borrowers in forbearance.

Loss reserves recorded on these new delinquencies have a high degree of estimation due to the level of uncertainty regarding whether

Loss reserves recorded on these new delinquencies had a high degree of estimation due to the level of uncertainty regarding whether delinquencies in forbearance would ultimately cure or result in claim payments as well as the timing and severity of those payments.

During 2024, we experienced favorable reserve development of $ 258 million in incurred losses primarily on prior accident year reserves, as a result of strong cure performance and loss mitigation

ENACT HOLDINGS, INC.

1 unchanged sentence

Years Ended December 31, 2024, 2023 and 2022

delinquencies in forbearance will ultimately cure or result in claim payments as well as the timing and severity of those payments.

During 2023, we experienced favorable reserve development of $ 248.2 million in incurred losses driven primarily by cure performance of delinquencies from 2022 and earlier, including a portion of those as a result of COVID-19.

During the peak of COVID-19, we experienced elevated new delinquencies subject to forbearance plans.

Those delinquencies have continued to perform at levels above our reserve expectations.

A component of the reserve release also related to delinquencies from 2022, as uncertainty in the economic environment has not negatively impacted cure performance to the extent initially expected.

The change was primarily attributable to $ 241 million in favorable reserves adjustments, which almost exclusively related to prior periods.

The change was primarily attributable to $ 252 million in favorable reserve adjustments, which almost exclusively related to prior periods.

During 2023, we experienced favorable reserve development of $ 248 million primarily driven by cure performance of delinquencies from 2022 and earlier, including those related to COVID-19 as well as delinquencies from early 2022.

The change was primarily attributable to $ 241 million in favorable reserve adjustments, which almost exclusively related to prior periods.

During 2022, we experienced favorable reserve development of $ 314 million in incurred losses attributable to prior years, primarily from better-than-expected cure performance on COVID-19 delinquencies from 2020 and 2021.

The change was almost exclusively attributable to $ 314 million in favorable reserves adjustments.

During 2021, we experienced favorable reserve development of $ 15.8 million in incurred losses attributable to prior years, primarily from lower expected claim rates on pre-COVID-19 delinquencies.

Included within this decrease to incurred losses attributable to prior years, we recorded $ 22.0 million in favorable reserve adjustments.

The change was almost exclusively attributable to $ 314 million in favorable reserve adjustments.

The following table sets forth information about incurred claims, as well as cumulative number of reported delinquencies and the total of incurred-but-not-reported (“IBNR”) liabilities plus expected development on reported claims included within the net incurred claims as of December 31, 2024.

19 unchanged sentences

(1) Represents the year in which first monthly mortgage payments have been missed by the borrower.

(2) Excludes incurred claims and allocated LAE related to run-off business.

(2) Incurred claims and allocated LAE related to domestic mortgage insurance.

(3) Represents reported and outstanding delinquencies less actual cures as of December 31 for each respective accident year.

22 unchanged sentences

All outstanding liabilities before 2015, net of reinsurance 8,680

Net loss reserves (excluding run-off) $ 516,221

Net loss reserves

_______________

(1) Represents the year in which first monthly mortgage payments have been missed by the borrower.

(2) Excludes cumulative paid claims and allocated claim adjustment expenses related to run-off business.

The following table provides a reconciliation of the net incurred losses and paid claims development tables above to loss reserves at December 31, 2023:

(In thousands) December 31, 2023

Net loss reserves (excluding run-off)

Reinsurance recoverable

Run-off reserves

Loss reserves $ 518,191

(2) Cumulative paid claims and allocated claim adjustment expenses related to domestic mortgage insurance.

The following table sets forth our average payout of incurred claims by age as of December 31, 2024:

3 unchanged sentences

_______________

(1) Excludes run-off business.

(1) Relates to domestic mortgage insurance.

(6) Reinsurance

3 unchanged sentences

In the event that the reinsurers are unable to meet their obligations, we remain liable for the reinsured claims.

We monitor both the

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.

ENACT HOLDINGS, INC.

1 unchanged sentence

Years Ended December 31, 2024, 2023 and 2022

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 years ended December 31:

12 unchanged sentences

The decrease in unearned premiums was mainly the result of premiums recognized via the earnings curve and low originations related to our single-premium product.

Assumed premium as a percentage of net premium earned is 0.2 % for the year ended December 31, 2023 and 0.0 % for the years ended December 31, 2022 and 2021.

Assumed premium as a percentage of net premium earned is 2.0 %, 0.2 % and 0.0 % for the years ended December 31, 2024, 2023, and 2022, respectively.

Excess-of-loss reinsurance

4 unchanged sentences

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 excess-of-loss insurance transactions assume significant insurance risk and a reasonable possibility of significant loss.

EMICO has rights to terminate the ILN or traditional XOL reinsurance agreements upon the occurrence of certain events.

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.

EMICO has rights to terminate the ILNs or traditional XOL reinsurance agreements upon the occurrence of certain events.

ENACT HOLDINGS, INC.

11 unchanged sentences

11/15/2023 7/01/2022 - 6/30/2023 $ 244 $ 244 $ 248 $ 232

Triangle Re 2023-1 Ltd.

11/15/2023 7/01/2022 - 6/30/2023 $ 244 $ 244 $ 248 $ 248

Traditional excess-of-loss reinsurance

8 unchanged sentences

2024-1 XOL 1/30/2024 1/01/2024 - 12/31/2024 $ 362 $ 362 $ 270 $ 270

Subsequent to year end, on January 30, 2024, we executed an excess-of-loss reinsurance transaction with a panel of reinsurers, which provides up to $ 255 million of reinsurance coverage on a portion of current and expected new insurance written for the 2024 book year, effective January 1, 2024.

2024-2 XOL 6/25/2024 7/01/2023 -12/31/2023 $ 134 $ 134 $ 90 $ 90

Total $ 1,187

Subsequent to year end, 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 coverage of approximately $ 225 million and $ 260 million, respectively.

Quota Share Reinsurance

On June 30, 2023, EMICO engaged in a quota share reinsurance agreement with a panel of third-party reinsurers.

Under the agreement, we cede premiums earned on all eligible policies in exchange for reimbursement of ceded claims and claims expenses on covered policies, a specific ceding commission and profit commission determined based on ceded claims.

EMICO has rights to terminate the reinsurance agreement upon the occurrence of certain events.

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 a profit commission determined based on ceded claims.

EMICO has rights to terminate the reinsurance agreements upon the occurrence of certain events.

Reinsurance recoverables are recorded in Other assets on the consolidated balance sheets.

1 unchanged sentence

QS 2023-1 6/30/2023 1/01/2023 - 12/31/2023 16.125 % 20 % up to 55 %

Subsequent to year end, on January 3, 2024, we entered into a quota share reinsurance agreement with a panel of third-party reinsurers.

Under the agreement, EMICO will cede approximately 21 % of a portion of its new insurance written from January 1, 2024 through December 31, 2024.

QS 2024-1 1/03/2024 1/01/2024 - 12/31/2024 21.225 % 20 % up to 55 %

QS 2025-1 11/26/2024 1/01/2025 - 12/31/2025 27.15 % 20 % up to 62 %

QS 2026-1 11/26/2024 1/01/2026 - 12/31/2026 27.00 % 20 % up to 61 %

(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

ENACT HOLDINGS, INC.

1 unchanged sentence

Years Ended December 31, 2024, 2023 and 2022

(7) Borrowings

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 December 31:

2 unchanged sentences

$ 750,000 $ —

6.5 % Senior Notes, due 2025

Deferred borrowing charges ( 6,950 ) ( 4,584 )

Total $ 743,050 $ 745,416

On August 21, 2020, we issued $ 750 million in aggregate principal amount of 6.5 % senior notes due in 2025.

The notes mature on August 15, 2025, but at any time on or after February 15, 2025, we may redeem the notes in whole or in part at our option at 100 % of the principal amount plus accrued and unpaid interest.

The 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.

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.

Revolving Credit Agreement

5 unchanged sentences

The Facility contains several covenants, including financial covenants relating to minimum net worth, capital and liquidity levels, maximum debt to capitalization level and PMIERs compliance.

We are in compliance of all covenants of the Facility and the Facility has remained undrawn through December 31, 2023.

We are in compliance with all covenants of the Facility and the Facility has remained undrawn through December 31, 2024.

ENACT HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Years Ended December 31, 2024, 2023 and 2022

(8) Income taxes

10 unchanged sentences

We had current income taxes payable of $ 11.9 million and $ 14.9 million as of December 31, 2024 and 2023, respectively, which were recorded in other liabilities.

ENACT HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Years Ended December 31, 2023, 2022 and 2021

We paid federal taxes of $ 184.0 million and state taxes of $ 4.5 million for the year ended December 31, 2024;

11 unchanged sentences

(1) “Other, net” is comprised primarily of nondeductible expenses, prior year true-ups and tax-exempt income.

ENACT HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Years Ended December 31, 2024, 2023 and 2022

The components of the deferred income taxes were as follows as of December 31:

14 unchanged sentences

Net deferred income tax asset (liability) $ 65,013 $ 88,489

The valuation allowances above, $ 7.8 million and $ 7.3 million as of December 31, 2023 and 2022, respectively, related to state deferred tax assets.

The state deferred tax assets related primarily to the future deductions associated with non-insurance and insurance net operating loss (“NOL”) carryforwards.

As of December 31, 2024, the capital loss carryforward was $ 24.5 million and, if unused, will expire in 2028.

1 unchanged sentence

federal NOL carryforwards.

Our valuation allowance as of December 31, 2024 and 2023 was $ 18.0 million and $ 7.8 million, respectively.

Given the change in our unrealized gains (losses) on our fixed maturity securities for the Company and consolidated tax group in 2024 due to rising interest rates and the corresponding reduction in the amount of unrealized capital gains expected to be available in the future to offset our capital loss carryforwards and other capital deferred tax assets, we recorded a valuation allowance of $ 10 million during 2024 through accumulated other comprehensive income (loss) related to deferred tax assets that would produce capital losses.

The remainder of the valuation allowance as of December 31, 2024 and 2023 is related to state deferred tax assets.

The state deferred tax assets related primarily to the future deductions associated with non-insurance and insurance net operating loss (“NOL”) carryforwards.

Except as discussed above, we have not established a valuation allowance with respect to any other deferred tax assets as of December 31, 2024, based primarily upon projections of future taxable income.

1 unchanged sentence

We have determined that such strategies are prudent and feasible, and would be implemented, if necessary, to ensure recognition of the deferred tax asset.

After consideration of all available evidence, we concluded that it is more likely than not that these deferred tax

ENACT HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Years Ended December 31, 2023, 2022 and 2021

assets will be realized.

After consideration of all available evidence, we concluded that it is more likely than not that these deferred tax assets will be realized.

If our actual results do not validate the current projections of pre-tax income, we may be required to record an additional valuation allowance which could have a material impact on our consolidated financial statements in future periods.

3 unchanged sentences

As previously discussed, we have elected to participate in the Genworth consolidated return.

All Genworth companies domesticated in the United States are included in the Genworth consolidated return as allowed by the tax law and regulations.

All Genworth companies domesticated in the United States are included in the Genworth consolidated return

ENACT HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Years Ended December 31, 2024, 2023 and 2022

as allowed by the tax law and regulations.

We have a tax sharing agreement in place and all intercompany balances related to this agreement are settled at least annually.

6 unchanged sentences

corporate income tax return.

Additionally, Enact Mortgage Insurance Corporation, Enact Mortgage Reinsurance Corporation, Enact Mortgage Insurance Corporation of North Carolina and Enact Financial Assurance Corporation (collectively, the “MI Group”), were parties to a supplemental tax sharing agreement that allowed them to accelerate the utilization of benefits as if they filed a stand-alone MI Group federal income tax return, even if those benefits had not been utilized in the consolidated federal return (“deemed used losses”).

Additionally, Enact Mortgage Insurance Corporation, Enact Residential Insurance Corporation, Enact Mortgage Insurance Corporation of North Carolina and Enact Financial Assurance Corporation (collectively, the “MI Group”), were parties to a supplemental tax sharing agreement that allowed them to accelerate the utilization of benefits as if they filed a stand-alone MI Group federal income tax return, even if those benefits had not been utilized in the consolidated federal return (“deemed used losses”).

If any deemed used losses are subsequently actually used in a consolidated return, the members of the MI Group which received the benefit for such deemed used losses would not receive a second benefit for such losses.

4 unchanged sentences

Separate Return Method

If during the year ended December 31, 2023, we had computed taxes using the separate return method, the unaudited pro forma provision for income taxes would remain unchanged.

If during the year ended December 31, 2024, we had computed taxes using the separate return method, the unaudited pro forma provision for income taxes would increase by $ 5 million due to capital losses with respect to which a valuation allowance would be established on a separate return basis.

If during the years ending December 31, 2023 and 2022, we had computed taxes using the separate return method, the unaudited pro forma provision for income taxes would remain unchanged.

(9) Employee benefits

3 unchanged sentences

Benefits eligible earnings include base pay, overtime, annual incentives and sales commissions.

ENACT HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Years Ended December 31, 2023, 2022 and 2021

We account for such Shared Plans as multiemployer benefit plans.

5 unchanged sentences

Genworth makes annual contributions to each employee’s pension plan account based on the employee’s age, service and eligible pay.

Employees are vested in the plan after three years of service.

Employees are

ENACT HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Years Ended December 31, 2024, 2023 and 2022

vested in the plan after three years of service.

Expenses associated with the qualified defined contribution pension plan were $ 2.0 million, $ 2.2 million, and $ 2.1 million in 2024, 2023 and 2022, respectively.

1 unchanged sentence

Expenses associated with non-qualified defined contribution plans were $ 1.5 million, $ 1.4 million and $ 1.2 million for 2024, 2023 and 2022, respectively.

Expenses allocated to us for qualified and non-qualified defined benefit pension plans were $ 0.3 million, $ 0.3 million, and $ 0.4 million in 2023, 2022 and 2021, respectively.

Expenses allocated to us for qualified and non-qualified defined benefit pension plans were $ 0.3 million, for each of the years ended December 31, 2024, 2023 and 2022.

Genworth provides retiree health benefits to our employees hired prior to January 1, 2005, who meet certain service requirements.

2 unchanged sentences

Genworth also provides retiree life and long-term care insurance benefits.

Expenses allocated to us for retiree health and life insurance benefits plans were $ 0.5 million, $ 0.5 million and $ 0.5 million for the years ended 2023, 2022 and 2021, respectively.

Expenses allocated to us for retiree health and life insurance benefits plans were $ 0.5 million for each of the years ended December 31, 2024, 2023 and 2022.

Savings Plans

3 unchanged sentences

One option available to employees in the defined contribution savings plan is the ClearCourse ® variable annuity option offered by certain of Genworth’s life insurance subsidiaries.

Prior to January 2021, employees also had the option of purchasing a fund which invests primarily in Genworth stock as part of the defined contribution savings plan.

Several years ago, Genworth had contracted with Newport Trust Company (“Newport”) to act as an independent fiduciary and investment manager with respect to Genworth stock in the defined contribution savings plan.

The independent fiduciary’s role is to act on behalf of a plan to protect the interests of participants and beneficiaries.

As part of its on-going process, on January 8, 2021, Newport froze the fund and accordingly, future investments or transfers into the fund are no longer permitted.

Our cost associated with these plans was $ 3.3 million, $ 3.3 million and $ 3.2 million for the years ended December 31, 2024, 2023 and 2022, respectively.

2 unchanged sentences

Our long-term care insurance is provided through Genworth’s long-term care insurance products.

ENACT HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Years Ended December 31, 2023, 2022 and 2021

(10) Share-based compensation

4 unchanged sentences

Under the 2021 Omnibus incentive Plan, EHI was authorized to grant a maximum number of shares of Common Stock for issuance not to exceed 4 million shares.

Share-based compensation expense under the 2021 Omnibus Plan was $ 15.3 million, $ 9.9 million, $ 1.5 million for the years ended December 31, 2023, 2022 and 2021, respectively, and is recorded with acquisition and operating expenses, net of deferrals in the consolidated statement of income.

Share-based compensation expense under the 2021 Omnibus Plan was $ 18.8 million, $ 15.3 million, $ 9.9 million for the years ended December 31, 2024, 2023 and 2022, respectively, and is recorded within acquisition and operating expenses, net of deferrals in the consolidated statements of income.

Stock-based compensation expense was recognized evenly on a straight-line attribution method over the awards’ respective vesting period.

ENACT HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Years Ended December 31, 2024, 2023 and 2022

During 2024, 2023, and 2022 the Company issued RSUs to our employees with average restriction periods of three years and a weighted average fair value of $ 27.64 , $ 24.26 , and $ 22.18 , respectively.

Each grant was measured at the fair value of a share of the Company’s Class A Common Stock on the grant date.

Each grant was measured at the fair value of a share of the Company’s Common Stock on the grant date.

The PSUs granted in 2024, 2023 and 2022 have a three-year measurement period starting on January 1, 2024, 2023 and 2022, respectively, going through December 31, 2026, 2025 and 2024, respectively.

1 unchanged sentence

The PSUs were granted at fair value as of the approval date by Enact Holdings’ Board of Directors.

In connection with cash dividends paid in 2023, 2022 and the fourth quarter of 2021, dividend equivalent shares were issued to RSU, PSU and DSU holders as of the dividend date.

In connection with cash dividends paid in 2024, 2023 and 2022, dividend equivalent shares were issued to RSU, PSU and DSU holders as of the dividend date.

The declaration and payment of future dividends to holders of our common stock will be at the discretion of our board of directors.

ENACT HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Years Ended December 31, 2023, 2022 and 2021

The following table summarizes the status of the equity-based awards as of December 31, 2024:

Awards in thousands

Number of awards

Weighted-average grant date fair value

Number of awards

Weighted-average grant date fair value

Number of awards

Weighted-average grant date fair value

Balance as of January 1, 2022 654 $ 19.02 — $ — 17 $ 20.87

1 unchanged sentence

Dividend equivalents 62 $ 24.00 10 $ 24.00 5 $ 23.98

Exercised ( 3 ) $ 19.00 — $ — — $ —

Terminated ( 26 ) $ 19.73 — $ — — $ —

18 unchanged sentences

Omnibus Incentive Plan (the “2012 Omnibus Incentive Plan”) was approved by Genworth’s stockholders.

ENACT HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Years Ended December 31, 2024, 2023 and 2022

Under the 2012 Omnibus Incentive Plan, Genworth was authorized to grant 16 million equity awards, plus a number of additional shares not to exceed 25 million underlying awards outstanding under the 2004 Omnibus Incentive Plan.

6 unchanged sentences

For awards issued after January 1, 2006, share-based compensation expense was recognized evenly on a straight-line attribution method over the awards’ respective vesting period.

ENACT HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Years Ended December 31, 2023, 2022 and 2021

During 2021, Genworth issued RSUs to our employees with average restriction periods of three years , with a fair value of $ 3.31 , which were measured at the market price of a share of Genworth’s Class A Common Stock on the grant date.

During 2021, Genworth granted PSUs with a weighted-average fair value of $ 3.45 .

The PSUs were granted at market price as of the approval date by Genworth’s Board of Directors.

PSUs may be earned over a three-year period based upon the achievement of certain performance goals.

The PSUs granted in 2021 have a three-year measurement period starting on January 1, 2021, going through December 31, 2023.

The performance metrics are based on Genworth’s consolidated adjusted operating income and its stockholder return relative to certain of its peer companies as of the grant date.

For all PSU awards granted, the compensation committee of Genworth’s Board of Directors determines and approves no later than March 15, following the end of the three-year performance period for each applicable performance period, the number of units earned and vested for each distinct performance period.

Expense associated with our PSUs was less than $ 1.0 million in 2023 and 2022, and $ 1.3 million in 2021.

In 2021, Genworth granted cash awards with a fair value of $ 1.00 .

Genworth has performance-based cash awards, which vested and paid out in 2021.

Genworth also has time-based cash awards, which vest over three years , with a third of the payout occurring per year as determined by the vesting period, beginning on the first anniversary of the grant date.

The following table summarizes cash award activity as of December 31, 2023, 2022 and 2021:

(Number of awards in thousands) Performance-based

cash awards Time-based

Expense associated with our PSUs was less than $ 1.0 million in 2024, 2023, and 2022.

Genworth has time-based cash awards, which vest over three years , with a third of the payout occurring per year as determined by the vesting period, beginning on the first anniversary of the grant date.

The following table summarizes time-based cash award activity as of December 31, 2024, 2023 and 2022:

(Number of awards in thousands) Time-based

Balance as of January 1, 2022

Granted — 4,330

Performance adjustment 449 83

Employee transfer 556

Vested ( 3,600 )

1 unchanged sentence

Balance as of December 31, 2022

Employee transfer

Vested ( 2,400 )

1 unchanged sentence

Balance as of December 31, 2023

Employee transfer — —

Vested ( 1,267 )

15 unchanged sentences

Granted — $ — — $ — — $ —

Performance adjustment — $ — 135 $ 4.61 — $ —

Employee transfer 32 $ 5.13 — $ — 49 $ 2.71

17 unchanged sentences

10 $ 6.45 — $ — — $ —

As of December 31, 2023, and 2022, total unrecognized share-based compensation expense related to non-vested awards not yet recognized was $ 1.1 million and is expected to be recognized over a weighted-average period of approximately one year , for each period.

As of December 31, 2024, there was no unrecognized share-based compensation as all expense has been amortized.

As of December 31, 2023, total unrecognized share-based compensation expense related to non-vested awards not yet recognized was $ 1.1 million.

In 2024, there was no cash received from stock options exercised.

6 unchanged sentences

We incurred costs for these services of $ 11.2 million, $ 17.7 million and $ 30.4 million in 2024, 2023 and 2022, respectively.

The investment portfolios of our insurance subsidiaries are managed by Genworth.

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.

6 unchanged sentences

See Note 9 and Note 10 for further information.

We provide certain information technology and administrative services (such as facilities and maintenance) to Genworth.

We charged Genworth $ 0.5 million, $ 0.7 million and $ 0.3 million for these services in 2023, 2022 and 2021, respectively.

In November 2021, we completed the acquisition of Genworth Financial Mauritius Holdings Limited from Genworth Financial International Holdings, LLC.

Refer to Note 3 for further details.

In prior periods, we provided certain information technology and administrative services (such as facilities and maintenance) to Genworth.

We charged Genworth $ 0.5 million and $ 0.7 million for these services in 2023 and 2022, respectively.

We paid cash dividends of $ 90.8 million, $ 173.7 million and $ 204.6 million to Genworth in 2024, 2023 and 2022, respectively.

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Refer to Note 15 for further details on dividend restrictions.

We paid Genworth $ 197.8 million, $ 71.5 million, and $ 1.3 million related to share repurchases in 2024, 2023 and 2022, respectively.

We have a tax sharing agreement in place with Genworth, such that we participate in a single U.S.

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Operating lease liabilities of $ 10.6 million and $ 13.5 million as of December 31, 2024 and 2023, respectively, were recorded in other liabilities on the consolidated balance sheets.

Operating lease expenses were approximately $ 3.4 million, $ 3.4 million and $ 3.9 million for the years ended December 31, 2023, 2022 and 2021, respectively.

Operating lease expenses were approximately $ 3.4 million for each of the years ended December 31, 2024, 2023 and 2022.

Our remaining lease terms ranged from less than 2 years to 3 years and had a weighted-average remaining lease term of 3 years and 4 years as of December 31, 2024 and 2023, respectively.

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On November 1, 2022, our board of directors approved a share repurchase program authorizing the Company to spend up to $ 75 million, excluding commissions, to repurchase EHI common stock in the open market or in privately negotiated transactions, based on market and business conditions, stock price and other factors.

On August 1, 2023, we announced a new share repurchase authorization which allows for the purchase of an additional $ 100 million of EHI common stock.

On August 1, 2023 and May 1, 2024, we announced repurchase authorizations that allowed for the purchase of $ 100 million and $ 250 million of EHI’s common stock, respectively.

EHI generally operates its share repurchase programs pursuant to a trading plan under Rule 10b5-1 of the Exchange Act, which permits the Company to purchase shares, at predetermined price targets, when it may otherwise be precluded from doing so.

During the year ended December 31, 2023, the Company purchased 3,520,052 shares at an average price of $ 24.89 per share, excluding commissions, compared to 63,571 shares at an average price of $ 24.10 per share for the year ended December 31, 2022.

As of December 31, 2023, $ 85.9 million

During the year ended December 31, 2024, the Company purchased 7,605,106 shares at an average price of $ 31.95 per share, excluding commissions, compared to 3,520,052 shares at an average price of $ 24.89 per share, excluding commissions, for the year ended

ENACT HOLDINGS, INC.

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Years Ended December 31, 2024, 2023 and 2022

remained available under this program.

December 31, 2023.

As of December 31, 2024, $ 92.9 million remained available under the program.

All treasury stock has been retired or constructively retired as of December 31, 2024.

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Cash Dividends

We paid a quarterly cash dividend of $ 0.16 per share in the fourth, third, and second quarters of 2023, and $ 0.14 per share in the first quarter of 2023.

In the second, third, and fourth quarters of 2022, we paid quarterly cash dividends of $ 0.14 per share.

On December 5, 2023, we paid a special cash dividend of $ 0.71 per share or approximately $ 113 million.

This compared to a dividend of $ 1.12 per share, or approximately $ 183 million on December 6, 2022.

Subsequent to year end, in February 2024, we announced our first quarter dividend of $ 0.16 per share.

The following table presents the amount of dividends declared and paid, on a per share basis, for each quarter and annual period.

Quarter Ended 2024 2023 2022

March 31 $ 0.16 $ 0.14 $ —

June 30 0.185 0.16 0.14

September 30 0.185 0.16 0.14

December 31 1, 2

0.185 0.87 1.26

Total dividends per common share declared and paid $ 0.715 $ 1.33 $ 1.54

1 Quarter ended December 31, 2023, activity includes special cash dividend of $ 0.71 per share paid on December 5, 2023

2 Quarter ended December 31, 2022, activity includes special cash dividend of $ 1.12 per share paid on December 6, 2022

(14) Accumulated other comprehensive income (loss)

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$ 83,588 $ ( 7 ) $ 83,581

Cumulative effect of changes in accounting 281 — 281

Other comprehensive income (loss) before reclassifications ( 468,229 ) 159 ( 468,070 )

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GAAP financial statements.

The table below presents statutory net income, statutory policyholders’ surplus and contingency reserve for the combined insurance subsidiaries as of and for the years ended December 31:

The table below presents statutory net income, statutory policyholders’ surplus and contingency reserve for the combined mortgage insurance subsidiaries as of and for the years ended December 31:

(Amounts in thousands) 2024 2023 2022

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Mortgage insurers are not subject to the NAIC’s risk-based capital (“RBC”) requirements, but certain states and other regulators impose another form of capital requirement on mortgage insurers requiring maintenance of a risk-to-capital ratio not to exceed 25:1.

Our insurance subsidiaries are domiciled in North Carolina.

Our mortgage insurance subsidiaries are domiciled in North Carolina.

Fifteen other states maintain similar risk-to-capital requirements.

As of December 31, 2023 and 2022, the risk-to-capital ratio for our combined insurance subsidiaries under the current regulatory framework as established under North Carolina law and enforced by the North Carolina Department of Insurance (“NCDOI”) was approximately 11.6 :1 and 12.8 :1, respectively.

Each of our insurance subsidiaries met its respective capital requirement as of 2023 and 2022.

As of December 31, 2024 and 2023, the risk-to-capital ratio for our combined mortgage insurance subsidiaries under the current regulatory framework as established under North Carolina law and enforced by the North Carolina Department of Insurance (“NCDOI”) was approximately 10.5 :1 and 11.6 :1, respectively.

Each of our mortgage insurance subsidiaries met its respective capital requirement as of 2024 and 2023.

PMIERs Regulatory Requirements

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The PMIERs include financial requirements for mortgage insurers under which a mortgage insurer’s “Available Assets” (generally only the most liquid assets of an insurer) must meet or exceed “Minimum Required Assets” (which are based on an insurer’s risk-in-force (“RIF”) and are calculated from tables of factors with several risk dimensions and are subject to a floor amount) and otherwise generally establish when a mortgage insurer is qualified to issue coverage that will be acceptable to the respective GSE for acquisition of high loan-to-value (“LTV”) mortgages.

The GSEs may amend or waive PMIERs at their discretion, impose additional conditions or restrictions on us and also have broad discretion to interpret PMIERs, which could impact the calculation of our “Available Assets” and/or “Minimum Required Assets.” The amount of capital that EMICO may be required in the future to maintain the “Minimum Required Assets” as defined in PMIERs, and operate our business is dependent upon, among other things:

(i) the way PMIERs are applied and interpreted by the GSEs and the Federal Housing Finance Agency (“FHFA”);

(ii) the future performance of the housing market;

(iii) our generation of earnings in our business, “Available Assets” and “Minimum Required Assets,” reducing RIF and reducing delinquencies as anticipated, and writing anticipated amounts and types of new mortgage insurance business;

and (iv) our overall financial performance, capital and liquidity levels.

The GSEs may amend or waive PMIERs at their discretion, impose additional conditions or restrictions on us and also have broad discretion to interpret PMIERs, which could impact the calculation of our “Available Assets” and/or “Minimum Required Assets.” The amount of capital that EMICO may be required to maintain the “Minimum Required Assets” as defined in PMIERs, and operate our business is dependent upon, among other things:

(i) the way PMIERs are applied and interpreted by the GSEs and the FHFA;

(ii) future PMIERs amendments;

(iii) the future performance of the housing market;

(iv) our generation of earnings in our business, “Available Assets” and “Minimum Required Assets,” reducing RIF and reducing delinquencies as anticipated, and writing anticipated amounts and types of new mortgage insurance business;

and (v) our overall financial performance, capital and liquidity levels.

Depending on our actual experience, the amount of capital required under PMIERs may be higher than currently anticipated.

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Our inability to increase the capital as required in the anticipated timeframes and on the anticipated terms, and to realize the anticipated benefits, could have a material adverse impact on our business, results of operations and financial condition.

More particularly, our ability to continue to meet the PMIERs financial requirements and maintain a prudent amount of capital in excess of those requirements, given the dynamic nature of asset valuations and requirement changes over time, is dependent upon, among other

ENACT HOLDINGS, INC.

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Years Ended December 31, 2024, 2023 and 2022

(i) our ability to complete credit risk transfer (“CRT”) transactions on our anticipated terms and timetable, which, as applicable, are subject to market conditions, third-party approvals and other actions (including approval by the GSEs), and other factors that are outside of our control and (ii) our ability to contribute holding company cash or other sources of capital to satisfy the portion of the financial requirements that are not satisfied through these transactions.

ability to complete credit risk transfer (“CRT”) transactions on our anticipated terms and timetable, which, as applicable, are subject to market conditions, third-party approvals and other actions (including approval by the GSEs), and other factors that are outside of our control and (ii) our ability to contribute holding company cash or other sources of capital to satisfy the portion of the financial requirements that are not satisfied through these transactions.

The PMIERs Amendment implemented both permanent and temporary revisions to PMIERs.

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Loans subject to a forbearance plan described in (ii) above include those that are either in a repayment plan or loan modification trial period following the forbearance plan unless reported to the approved insurer that the loan is no longer in such forbearance plan, repayment plan, or loan modification trial period.

Per guidance released by the GSEs in the third quarter of 2024, use of the multiplier will be discontinued effective March 31, 2025.

Our assessment of PMIERs compliance is based on a number of factors, including our understanding of the GSEs’ interpretation of the PMIERs financial requirements.

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As of December 31, 2024, we had available assets of $ 5,095 million against $ 3,043 million net required assets under PMIERs, compared to available assets of $ 5,006 million against $ 3,119 million net required assets as of December 31, 2023.

The sufficiency above the PMIERs financial requirements as of December 31, 2023, was $ 1,887 million, compared to $ 2,050 million above the published PMIERs requirements as of December 31, 2022, resulting in a PMIERs sufficiency ratio of 161 % and 165 % as of December 31, 2023 and 2022, respectively.

The sufficiency as of December 31, 2023, was above the requirement imposed by the GSE Restrictions that required us to maintain a PMIERs sufficiency ratio of 120 % in 2022.

The GSE Restrictions are no longer relevant to us, beginning in 2023.

The sufficiency above the PMIERs financial requirements as of December 31, 2024, was $ 2,052 million, compared to $ 1,887 million above PMIERs requirements as of December 31, 2023, resulting in a PMIERs sufficiency ratio of 167 % and 161 % as of December 31, 2024 and 2023, respectively.

On August 21, 2024, the GSEs and the FHFA released updated PMIERs requirements phasing in a revision to the available assets 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.

The ultimate impact of the PMIERs changes will be influenced by investment portfolio maturities, dispositions, reinvestments, and overall business and economic performance between today and the phase-in dates.

ENACT HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Years Ended December 31, 2024, 2023 and 2022

Dividend Restrictions

The majority of our investments are held by our regulated U.S.

mortgage insurance subsidiaries which may be limited in their ability to make dividends or distributions to a holding company in the future due to restrictions related to their capital levels.

mortgage insurance subsidiaries which may be limited in their ability to pay dividends or make distributions to a holding company in the future due to restrictions related to their capital levels.

mortgage insurance subsidiaries are required to maintain minimum capital on a statutory basis, as well as pursuant to the PMIERs promulgated by the GSEs.

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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

ENACT HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Years Ended December 31, 2023, 2022 and 2021

of the NCDOI (the “Commissioner”) within 5 business days after declaration of the dividend, and at least 30 days before payment thereof.

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.

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The basic earnings per share computation is based on the weighted average number of shares of common stock outstanding.

For the years ended December 31, 2023, 2022 and 2021, the calculation of dilutive weighted average shares considers the impact of restricted stock units and performance stock units issued to employees as well deferred stock units issued to our directors.

For the years ended December 31, 2024, 2023 and 2022, 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 following table presents the computation of earnings per share for the years ended December 31:

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Diluted 157,554 161,847 163,294

(17) 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

ENACT HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Years Ended December 31, 2024, 2023 and 2022

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 consolidated income statement and our measure of segment assets are those reported on the consolidated balance sheet.

ENACT HOLDINGS, INC.

Summary of Investments—Other Than Investments in Related Parties

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Net investment gains (losses)

( 7 ) ( 238 ) —

Total revenues 27,648 23,760 8,412

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Interest expense 51,157 51,867 51,699

Loss on debt extinguishment 10,930 — —

Total expenses 73,141 63,360 62,231

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Amortization of debt issuance costs 1,954 2,586 2,414

Loss on debt extinguishment 10,930 — —

Other — — ( 22 )

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Purchases of fixed maturity securities available-for-sale ( 94,372 ) ( 95,202 ) ( 249,141 )

Purchase of equity interest — — ( 27,304 )

Proceeds from sales of fixed maturity securities available-for-sale 8,847 23,382 —

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Cash flows from financing activities:

Proceeds from the issuance of long-term debt 749,648 — —

Debt issuance costs ( 7,398 ) — —

Redemption of long-term debt ( 757,500 ) — —

Repurchase of common stock ( 243,968 ) ( 87,762 ) ( 1,532 )

Dividends paid ( 111,719 ) ( 212,964 ) ( 250,776 )

Other ( 11,062 ) — —

Net cash used in financing activities ( 381,999 ) ( 300,726 ) ( 252,308 )

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Supplementary disclosure of cash flow information:

Non-cash capital contributions from Genworth $ — $ — $ 903

Non-cash capital contributions to subsidiaries $ — $ 195 $ —

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Enact Holdings, Inc.

(“EHI,” “we,” or “our”) has been a subsidiary of Genworth since EHI’s incorporation in Delaware in 2012.

On May 3, 2021, EHI amended its certificate of incorporation to change its name from Genworth Mortgage Holdings, Inc.

Concurrently, we entered into a share exchange agreement with Genworth Holdings, Inc.

During 2023, EHI contributed $ 225 thousand into Enact Re Ltd.

and subsequently contributed the Enact Re Ltd.

legal entity to EMICO.

In November 2021, we completed the acquisition of Genworth Financial Mauritius Holdings Limited from Genworth Financial International Holdings, LLC.

Refer to Note 3 in our audited consolidated financial statements for further details.

(“EHI,” together with its subsidiaries, the “Company,” “we,” “us,” or “our”) (formerly known as Genworth Mortgage Holdings, Inc.) was a wholly owned subsidiary of Genworth Financial, Inc.

(“Genworth”) 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.

(2) Summary of significant accounting policies

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(3) 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.

The following table sets forth long-term borrowings as of December 31:

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$ 750,000 $ —

6.5 % Senior Notes, due 2025

Deferred borrowing charges ( 6,950 ) ( 4,584 )

Total $ 743,050 $ 745,416

On August 21, 2020, EHI issued $ 750 million in aggregate principal amount of 6.5 % senior notes due in 2025.

These notes mature on August 15, 2025, but EHI may redeem the notes in whole or in part at any time prior to February 15, 2025, at EHI’s option by paying a make-whole premium plus accrued and unpaid interest, if any.

At any time on or after February 15, 2025, EHI may redeem the notes in whole or in part at its option at 100 % of the principal amount plus accrued and unpaid interest.

Redemption of Senior Notes due 2025

ENACT HOLDINGS, INC.

(PARENT COMPANY ONLY)

funded the redemption primarily through the proceeds of the 2029 Notes.

The redemption resulted in a loss on debt extinguishment of $ 10.9 million.

Revolving Credit Agreement

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The Facility contains several covenants, including financial covenants relating to minimum net worth, capital and liquidity levels, maximum debt to capitalization level and PMIERs compliance.

We are in compliance of all covenants of the Facility and the Facility has remained undrawn through December 31, 2023.

We are in compliance with all covenants of the Facility and the Facility has remained undrawn through December 31, 2024.

Changes in and Disagreements With Accountants on Accounting and Financial Disclosure

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 8. Financial Statements and Supplementary Data