What changed in this filing

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Item 7. Management’s Discussion and Analysis

2026-02-27 compared with 2025-02-28 · 127 added, 160 removed, 861 unchanged (25% of the section changed)

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Our business objective is to leverage our competitive strengths to drive market share, maintain our strong capitalization and strong earnings profile and deliver attractive risk-adjusted returns to our stockholders.

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

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

We primarily generate revenues by providing mortgage credit protection to our customers in exchange for premiums, which we set based on our evaluation of the underlying risk we insure.

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In exchange, we cede a negotiated amount of our premiums to the reinsurers and ILN investors that participate in our CRT transactions.

Our net premiums earned (i.e., materially, the gross premiums charged less premiums ceded as part of our CRT program) represent the largest source of our revenues.

Importantly, our CRT program helps to manage risk in our operating model and spread the risk of loss across our counterparties while also providing capital relief.

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In the event of a borrower default, our coverage reduces and, in certain instances eliminates, losses to the insured by transferring the covered portion of the economic loss to us.

Borrower defaults are first reported

to us as new delinquencies when the borrower fails to make two consecutive monthly mortgage payments.

Borrower defaults are first reported to us as new delinquencies when the borrower fails to make two consecutive monthly mortgage

Incurred losses are our estimate of future claims on these new delinquencies as well as any change in the prior estimates for previously existing delinquencies.

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Competitors include other private mortgage insurers that are eligible to write business for the GSEs.

We compete with other private mortgage insurers based on pricing, underwriting guidelines, customer relationships, service levels, policy terms, loss mitigation practices, perceived financial strength (including comparative credit ratings), reputation, strength of management, product features and technology ease-

We also compete with governmental agencies (principally the FHA and the VA) primarily based on price and underwriting guidelines.

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Pricing trends have introduced an increasing number of loan, borrower, lender and property attributes, resulting in expanded granularity in pricing regimes in order to better align price and risk.

Our proprietary risk-based pricing engine evaluates returns and volatility under both the PMIERs capital framework and our internal economic capital framework, which is sensitive to economic cycles and current housing market conditions.

Our proprietary risk-based pricing model evaluates returns and volatility under multiple capital frameworks, which are sensitive to economic cycles and current housing market conditions.

The model assesses the performance of new business under expected and stress scenarios on an individualized loan basis, which is used to determine pricing and inform our risk selection strategy that optimizes economic value by balancing return and volatility.

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Therefore, we typically experience lower levels of losses resulting from favorable delinquency activity in the first and second quarters, as compared to the third and fourth quarters.

The following table presents our NIW, number of cures and new delinquencies for primary policies, excluding our run-off insurance block with reference properties in Mexico, for the periods indicated:

The following table presents our NIW, number of cures and new delinquencies for primary policies, excluding our run-off business, for the periods indicated:

Seasonality Three months ended

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Using our platform, we can quickly change price to modify our risk selection levels, respond to industry pricing trends or adjust to changing economic conditions.

We believe that our platform, powered by our proprietary risk model and our understanding of mortgage risk volatility, provides us with a highly sophisticated pricing regime that improves our risk selection and is designed to yield attractive risk adjusted returns through credit cycles.

IIF at the time of origination is used to determine premiums as the premium rate is expressed as a percentage of IIF.

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Although these cancellations reduce IIF, assuming all other factors remain constant, the profitability of our single premium business increases when persistency rates are lower.

Our concentration of single premium policies has declined in recent years, as a result of elevated interest

Our concentration of single premium policies has declined in recent years, as a result of elevated interest rates.

As of December 31, 2025 and 2024, single premium policies comprised 9% and 9% of primary IIF, respectively.

Credit Quality

Improved analytics, stronger loan origination quality controls and the regulatory developments have resulted in a significant improvement in the credit quality for loans originated in the private mortgage insurance market over time.

Additionally, private mortgage insurers and the GSEs have maintained strong credit standards over the past decade, with average FICO scores for NIW persisting at levels significantly above historical averages.

Improved analytics, stronger loan origination quality controls and regulatory developments have resulted in a significant improvement in the credit quality for loans originated in the private mortgage insurance market over time.

Additionally, private mortgage insurers and the GSEs have maintained strong credit standards over the past decade, with average FICO scores for NIW persisting at levels significantly

above historical averages.

As a result, the industry is insuring loans from borrowers who should be better positioned to meet their mortgage obligations.

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• deterioration of regional or national economic conditions leading to a reduction in borrowers’ income and thus their ability to make mortgage payments;

• legislative, regulatory, FHFA or GSE action, or executive orders permitting or mandating forbearance or a moratorium on foreclosures or evictions due to events such as natural disasters or a pandemic (e.g.

• a drop in housing values that could expose us to greater loss on resale of properties obtained through foreclosure proceedings and an adverse change in the effectiveness of loss mitigation actions that could result in an increase in the frequency of expected claim rates;

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We use CRT transactions to transfer a portion of our risk to third parties, through traditional XOL and quota share reinsurance and the issuance of ILNs.

Our CRT program reduces the volatility of our in-force portfolio and provides capital relief under PMIERs.

Our CRT program reduces the volatility of our in-force

portfolio and provides capital relief under PMIERs.

When we enter into a CRT transaction, the reinsurer receives a premium and, in exchange, insures an agreed upon portion of incurred losses.

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(b) losses related to insured events that have occurred but that have not been reported to the insurer as of the date the liability is estimated;

Loss adjustment expenses include costs incurred in the claim settlement process such as legal fees and costs to record, process and adjust claims.

LAE include costs incurred in the claim settlement process such as legal fees and costs to record, process and adjust claims.

Consistent with U.S.

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The sources of uncertainty affecting the estimates are numerous and include factors internal and external to us.

Internal factors include, but are not limited to, changes in

the mix of exposures, loss mitigation activities and claim settlement practices.

Internal factors include, but are not limited to, changes in the mix of exposures, loss mitigation activities and claim settlement practices.

Significant external influences include changes in home prices, unemployment, government housing policies, state foreclosure timeline, general economic conditions, interest rates, tax policy, credit availability and mortgage products.

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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 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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As of each balance sheet date, we evaluate fixed maturity securities in an unrealized loss position for changes to the allowance for credit losses.

Determining the value of the unrealized losses is dependent on the same methodologies and assumptions used in our valuation of fixed maturity securities.

Determining the value of the unrealized losses is dependent

on the same methodologies and assumptions used in our valuation of fixed maturity securities.

We also consider all available information relevant to the collectability of the security, including information about past events, current conditions and reasonable and supportable forecasts, when developing the estimate of cash flows expected to be collected.

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Premiums written on single premium policies and annual premium policies are initially deferred as unearned premium reserve and earned over the policy life.

A portion of the revenue from single premium policies is recognized in premiums earned in the current period, and the remaining portion is deferred as unearned premiums and earned over the estimated expiration of risk of the policy.

A portion of the revenue from single premium policies is recognized in premiums earned in the current period, and the remaining portion remains deferred as unearned premiums and earned over the estimated expiration of risk of the policy.

If single premium policies are cancelled and the premium is non-refundable, then the remaining unearned premium related to each cancelled policy is recognized to earned premiums upon notification of the cancellation.

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Macroeconomic environment.

During 2024, the United States economy continued to show positive signs, but faced lingering uncertainty due to inflationary pressure, the geopolitical environment and other macroeconomic concerns.

Inflationary pressures moderated in 2024, with the Bureau of Labor Statistics reporting in December that Consumer Price Index inflation was 2.9% year-over-year.

The Federal Reserve took an aggressive approach towards addressing inflation with policy rates reaching a cyclical peak in July 2023.

The Federal Open Market Committee began to lower policy rates in September 2024 with additional reductions in November and December 2024.

Mortgage rates remain elevated but have declined compared to highs in late 2023.

Mortgage origination activity increased modestly in 2024 but remained relatively slow in response to elevated mortgage rates and sustained low housing supply.

Over the past few years, housing affordability deteriorated as elevated mortgage rates and home price appreciation outpaced median family income according to the National Association of Realtors Housing Affordability Index.

National house prices continued to rise in 2024 according to the Federal Housing Finance Agency (“FHFA”) Monthly Purchase-Only House Price Index.

The unemployment rate was 4.1% as of December 31, 2024, compared to 3.7% in December 2023.

As of December 31, 2024, the number of unemployed Americans was approximately 6.9 million and the number of long term unemployed over 26 weeks was approximately 1.6 million.

Forbearance and loss mitigation programs.

Borrowers’ ability to utilize extended forbearance timelines permitted through the CARES Act and GSE COVID-19 servicing-related policies ended in 2023.

Borrowers that meet general hardship and program guidelines continue to have access to standard forbearance policies as a loss mitigation option.

Additionally, in March 2023, the GSEs announced new loss mitigation programs that allow six-month payment deferrals for borrowers facing financial hardship.

Although it is difficult to predict the future level of reported forbearance and how many of the policies in a forbearance plan that remain current on their monthly mortgage payment will go delinquent, servicer-reported forbearances have generally declined.

As of December 31, 2024, approximately 1.1%, or 10,943, of our active primary policies were reported in a forbearance plan, of which approximately 34% were reported as delinquent.

Approximately 9% of our primary new delinquencies in 2024 were subject to a forbearance plan as compared to 13% in 2023.

Throughout 2025, the United States economy was subject to significant volatility and uncertainty, largely related to changing economic policies, including new and variable tariffs, continued inflationary pressure, the government shutdown and certain domestic and geopolitical tensions.

The ancillary effects of these factors on the domestic and global economies could materially impact the United States housing markets and our business.

The Bureau of Labor Statistics reported in December 2025 that Consumer Price Index (“CPI”) inflation was 2.7% year-over-year compared to 2.9% year-over-year in December 2024, while the unemployment rate has risen to 4.4% in December 2025 from 4.1% in December 2024.

Elevated inflation remains a challenge for the Federal Open Market Committee as it navigates heightened uncertainty.

purchase mortgage originations remained relatively slow in response to elevated mortgage rates.

Over the past few years, housing affordability has deteriorated as elevated mortgage rates and home price appreciation outpaced median family income according to the National Association of Realtors Housing Affordability Index.

Affordability pressures eased slightly during the end of 2025 as mortgage rates began to decline and national house price growth has slowed according to the Federal Housing Finance Agency (“FHFA”) Monthly Purchase-Only House Price Index (Seasonally Adjusted).

Regulatory developments.

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In the past, these actions have included announced changes, or potential changes, to underwriting standards, including changes to the GSEs’ automated underwriting systems, FHA pricing, GSE guaranty fees, loan limits and alternative products.

On October 24, 2022, the FHFA announced the validation and approval of both the FICO 10T credit score model and the VantageScore 4.0 credit score model for anticipated use by the GSEs as well as proposing to change the requirement that lenders provide credit reports from all three nationwide consumer reporting agencies and instead only requiring credit reports from two of the three nationwide credit reporting agencies.

The validation of the new credit scores is currently expected to require lenders to deliver both credit scores for each loan sold to the GSEs.

Implementation, which has been delayed beyond 2025, will require system and process updates along with coordination across stakeholders of the industry.

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.

In July 2025, the FHFA announced that it will implement the acceptance of VantageScore 4.0 for mortgages delivered to Fannie Mae and Freddie Mac.

The GSEs have not yet released implementation details and timelines, and the full impact of this initiative on our business, processes and financial results remains uncertain.

Competitive environment.

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Our portfolio.

New insurance written of $51.0 billion in 2024 decreased 4% compared to 2023.

New insurance written of $51.5 billion in 2025 increased 1% compared to 2024.

Changes in NIW are primarily impacted by the size of the mortgage insurance market and our market share.

Our primary persistency rate decreased to 82% during 2025 compared to 83% during 2024.

Persistency remains elevated due to high interest rates but decreased in 2024 due to rate volatility throughout the year.

Elevated persistency has continued to offset the decline in new insurance written, leading to an increase in primary insurance in-force of $5.9 billion or 2% since December 31, 2023.

Net earned premiums increased $23 million in 2024 compared to 2023 as a result of higher average IIF and higher assumed premiums, consisting primarily of Enact Re’s GSE credit risk transfer participation and multifamily reinsurance.

This was partially offset by higher ceded premium.

Persistency remains slightly elevated due to high interest rates but decreased in 2025 due to rate volatility throughout the year.

Elevated persistency and modest new insurance written growth has led to an increase in primary insurance in-force of $4.3 billion or 2% since December 31, 2024.

Net earned premiums increased marginally in 2025 compared to 2024 as higher average IIF and higher assumed premiums were mostly offset by higher ceded premiums and slightly lower average premium rates.

Our largest customer accounted for 12%, 11% and 10% of our total revenues for the years ended December 31, 2025, 2024 and 2023, respectively.

This customer also accounted for 22%, 20% and 19% of our total NIW during the years ended December 31, 2025, 2024 and 2023, respectively.

No other customer accounted for 10% or more of total revenues or NIW for the years ended December 31, 2024 or 2023.

No customer accounted for more than 10% of our total revenues and no other customer accounted for more than 10% of NIW for the year ended December 31, 2022.

customer accounted for 10% or more of total revenues or NIW for the years ended December 31, 2025, 2024 or 2023.

Loss experience.

Our loss ratio for the year ended December 31, 2025, was 11% as compared to 4% for the year ended December 31, 2024.

Both periods were impacted by favorable reserve adjustments.

In 2024, we recorded a reserve release of $252 million, primarily on prior accident year reserves as a result of strong cure performance and loss mitigation efforts.

As part of the 2024 reserve adjustments, we decreased our claim rate assumptions for new and existing delinquencies as a result of sustained favorable cure performance and lessening uncertainty in the economic environment, which impacted reserves from current and prior accident years.

During 2023, we released reserves of $241 million primarily due to better than expected cure experience on delinquencies from 2022 and earlier, including a portion of those related to the emergence of COVID-19.

The severity of loss on loans that go to claim may be negatively impacted by the extended forbearance and foreclosure timelines, the associated elevated expenses and the higher loan amount of the recent new delinquencies.

These negative influences on loss severity could be mitigated, in part, by embedded home price appreciation.

For loans insured on or after October 1, 2014, our mortgage insurance policies limit the number of months of unpaid interest and associated expenses that are included in the mortgage insurance claim amount to a maximum of 36 months.

New delinquencies in 2024 increased compared to 2023 primarily due to the aging of large, newer books of business.

Both periods were impacted by favorable reserve adjustments due to strong cure performance and loss mitigation efforts.

In 2025, we recorded a net reserve release of $200 million.

A majority of the reserve adjustments related to prior period delinquencies but a portion of the release also related to 2025 delinquencies as we reduced the expected claim rates as a result of sustained favorable cure performance and our current market expectations.

In 2024, we recorded a reserve release of $252 million, primarily on prior accident year reserves.

New delinquencies in 2025 increased compared to 2024 primarily due to the normal loss development pattern on newer books.

Current period primary delinquencies of 50,481 contributed $299 million of loss expense in 2025.

We incurred $287 million of losses from 48,537 current period delinquencies in 2024.

determining the loss expense estimate, considerations were given to recent cure and claim experience and the prevailing and prospective economic conditions.

In determining the loss expense estimate, considerations were given to recent cure and claim experience and the prevailing and prospective economic conditions.

The severity of loss on loans that go to claim may be negatively impacted by extended forbearance and foreclosure timelines, the associated elevated expenses and the higher loan amount of the recent new delinquencies.

These negative influences on loss severity could be mitigated, in part, by embedded home price appreciation.

The majority of our mortgage insurance policies limit the number of months of unpaid interest and associated expenses that are included in the mortgage insurance claim amount to a maximum of 36 months.

Capital requirements and ratings.

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The sufficiency ratio as of December 31, 2025, was 162% or $1,919 million above the PMIERs requirements, compared to 167% or $2,052 million above the PMIERs requirements as of December 31, 2024.

Our PMIERs required assets benefited from the application of a 0.30 multiplier applied to the risk-based required asset amount factor for certain non-performing loans as defined under PMIERs.

The application of the 0.30 multiplier to all eligible delinquencies provided $28 million of benefit to our December 31, 2024, PMIERs required assets compared to $73 million of benefit as of December 31, 2023.

Our PMIERs required assets also benefited from a reinsurance credit of $1,932 million and $1,885 million related to third-party reinsurance as of December 31, 2025 and 2024, respectively.

These amounts are gross of any incremental reinsurance benefit from the elimination of the 0.30 multiplier.

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

On January 8, 2024, S&P Global Ratings upgraded the long-term financial strength and issuer credit ratings of EMICO from BBB+ to A-.

Subsequent to year end on January 17, 2025, Fitch upgraded the long-term financial strength and issuer credit ratings of EMICO from A- to A.

Our PMIERs required assets as of December 31, 2024, benefited $28 million from the application of a 0.30 multiplier applied to the risk-based required asset amount factor for certain non-performing loans as defined under PMIERs.

Use of the multiplier was discontinued effective March 31, 2025.

On January 17, 2025, Fitch upgraded the long-term financial strength and issuer credit ratings of EMICO from A- to A.

On August 6, 2025, Moody’s upgraded the insurance financial strength rating of EMICO from A3 to A2.

Recent transactions.

In November 2023, we contributed $250 million into Enact Re, our wholly owned Bermuda-based subsidiary.

This contribution supported the increase to the ceding percentage of our previously announced affiliate quota share agreements from 7.5% to 12.5% during the first quarter of 2024, and a new quota share reinsurance agreement that cedes 12.5% of EMICO’s 2024 new insurance written.

The contribution also supports new business opportunities, which primarily includes the continued execution of GSE credit risk transfer.

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.

On January 30, 2024, we executed an excess-of-loss reinsurance transaction with a panel of reinsurers, which, following an amendment in December 2024, provides up to $270 million of reinsurance coverage on a portion of current and expected new insurance written for the 2024 book year, effective January 1, 2024.

On May 28, 2024, we issued our 2029 Notes for an aggregate principal amount of $750 million.

We used the proceeds from the issuance to redeem our 2025 Notes.

On June 25, 2024, we executed an excess-of-loss reinsurance transaction with a panel of reinsurers, which provides approximately $90 million of reinsurance coverage on a portion of existing mortgage insurance written from July 1, 2023, through December 31, 2023, effective June 1, 2024.

On November 26, 2024, we entered into two quota share reinsurance transactions with a panel of reinsurers.

Under the agreements, and subject to certain conditions, EMICO will cede approximately 27% of a portion of expected new insurance written for the period from January 1, 2025, through December 31, 2025, and will cede approximately 27% of a portion of expected new insurance written for the period from January 1, 2026, through December 31, 2026.

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 reinsurance coverage of approximately $225 million and $260 million, respectively.

On January 24, 2025, we entered into two excess-of-loss reinsurance transactions that cover a portion of expected new insurance written from January 1, 2025, through December 31, 2025, and January 1, 2026, through December 31, 2026, and provide reinsurance coverage of approximately $225 million and $260 million, respectively.

On September 23, 2025, we entered into a quota share reinsurance agreement with a panel of reinsurers.

Under the agreement, EMICO will cede approximately 34% of a portion of its expected new insurance written for the period from January 1, 2027, through December 31, 2027.

On September 30, 2025, we entered into a five-year, unsecured revolving credit facility (the “2025 Revolving Credit Facility”) with a syndicate of lenders in the initial aggregate principal amount of $435 million, which replaces the previous $200 million senior unsecured revolving credit facility.

The 2025 Revolving Credit Facility may be used for working capital needs and general corporate purposes, including the execution of dividends to our shareholders and capital contributions to our insurance subsidiaries.

The 2025 Revolving Credit Facility remains undrawn as of December 31, 2025.

On October 27, 2025, we entered into an excess-of-loss reinsurance transaction that covers a portion of expected new insurance written from January 1, 2027, through December 31, 2027, and provides reinsurance coverage of approximately $170 million.

Capital returns.

On April 26, 2022, our Board of Directors approved the initiation of a dividend program under which the Company intends to pay a quarterly cash dividend, subject to approval by our Board of Directors each quarter.

We paid quarterly dividends of $0.14 per share in March of 2023 and May, September and December of 2022.

We paid quarterly dividends of $0.16 per share in June, September and December 2023 and March 2024.

On May 1, 2024, we also announced an increase to our quarterly dividend to $0.185 per share which was paid in June, September and December 2024.

In November 2024 EMICO completed a distribution to EHI that supports our ability to pay a quarterly dividend.

In March, June, September and December 2025, our primary mortgage insurance operating company, EMICO, paid dividends to EHI that support our ability to return capital to shareholders.

We paid a dividend of $0.185 per common share during the first quarter of 2025.

In April 2025, we announced an increase of our quarterly dividend to $0.21 per common share which was paid in June, September and December 2025.

Future dividend payments are subject to quarterly review and approval by our Board of Directors and Genworth and will be targeted to be paid in the third month of each quarter.

On May 1, 2024, we announced the authorization of a share repurchase program that allows for the repurchase of up to $250 million of EHI’s common stock.

Under this program, share repurchases may be made at our discretion from time to time in open market transactions, privately negotiated transactions, or by other means, including through Rule 10b5-1 and Rule 10b-18 trading plans.

In conjunction with this authorization, we have entered into an agreement with Genworth Holdings, Inc.

to repurchase its EHI shares on a pro rata basis as part of the program.

The share repurchase program is not expected to change Genworth’s ownership interest in Enact post-completion.

On May 1, 2024, we announced the authorization of a share repurchase program that allowed for the repurchase of up to $250 million of EHI’s common stock.

The Company completed the repurchase of shares under this authorization in the second quarter of 2025.

On April 30, 2025, we announced the authorization of a new share repurchase program that allows for the repurchase of up to an additional $350 million of EHI’s common stock.

Under the programs, share repurchases may be made at our discretion from time to time in open market transactions in compliance with Rule 10b-18 under the Securities Exchange Act of 1934, as amended, privately negotiated transactions, or by other means, including through Rule 10b5-1 trading plans.

In support, Enact has entered into an agreement with Genworth Holdings, Inc.

to repurchase its Enact shares as part of the program to maintain Genworth’s ownership interest in Enact.

We expect the timing and amount of any future share repurchases will be opportunistic and will depend on a variety of factors, including EHI’s share price, capital availability, business and market conditions, regulatory requirements, and debt covenant restrictions.

The program does not obligate EHI to acquire any amount of common stock, it may be suspended or terminated at any time at the Company’s discretion without prior notice, and it does not have a specified expiration date.

The programs do not obligate EHI to acquire any amount of common stock, may be suspended or terminated at any time at the Company’s discretion without prior notice, and do not have a specified expiration date.

Subsequent to year end, on February 3, 2026, we announced the authorization of a new share repurchase program that allows for the repurchase of up to an additional $500 million of EHI’s common stock.

Returning capital to shareholders, balanced with our growth and risk management priorities, remains a key commitment as we look to drive shareholder value through time.

Future return of capital will be shaped by our capital prioritization framework:

Future return of capital will be shaped by our capital prioritization framework, which sets the following priorities:

supporting our existing policyholders, growing our mortgage insurance business, funding attractive new business opportunities and returning capital to shareholders.

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Net investment income 266,153 240,564 207,369 25,589 11 % 33,195 16 %

Net investment gains (losses) (22,807) (14,022) (2,036) (8,785) 63 % (11,986) NM

Net investment gains (losses) (16,276) (22,807) (14,022) 6,531 29 % (8,785) (63) %

Other income 5,445 3,913 3,264 1,532 39 % 649 20 %

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Loss ratio (1)

4 % 3 % (10) %

Expense ratio (2)

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Year Ended December 31, 2025 Compared to Year Ended December 31, 2024

Premiums increased mainly attributable to higher average IIF and higher assumed premiums, consisting primarily of Enact Re’s GSE credit risk transfer participation and multifamily reinsurance.

This was partially offset by higher ceded premium.

The net earned premium rate was 36 basis points, relatively consistent with 2023.

Net investment income increased primarily due to higher investment yields due to elevated interest rates coupled with higher average invested assets.

Net investment losses during 2024 and 2023 were primarily driven by realized losses on the sale of fixed maturity securities as part of our yield optimization strategy that allows us to reinvest sales proceeds and recoup higher investment income.

Premiums increased marginally, attributable to higher average IIF and higher assumed premiums, partially offset by higher ceded premiums and slightly lower average premium rates.

The net earned premium rate was 35 basis points, down slightly from 36 basis points in 2024.

Net investment income increased primarily due to higher investment yields coupled with higher average invested assets.

Net investment losses during 2025 and 2024 were primarily driven by realized losses on the sale of fixed maturity securities as part of our yield optimization strategy that allows us to reinvest sales proceeds

and recoup higher investment income.

Our yield optimization strategy enables opportunistic security sales based on current and changing market conditions.

We had more sales in 2024 than 2023.

We had fewer losses on sales in 2025 than 2024.

Other income includes underwriting fee revenue, equity method investment income and other revenue.

Losses and expenses

Losses incurred in 2024 and 2023 were impacted by favorable reserve adjustments .

During 2024, we released reserves of $252 million primarily on prior accident year reserves as a result of strong cure performance and loss mitigation efforts.

Losses incurred in 2025 and 2024 were impacted by favorable reserve adjustments due to strong cure performance and loss mitigation efforts.

In 2025, we recorded a net reserve release of $200 million.

During 2024, we recorded $252 million of reserve releases.

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(1) Excludes run-off business.

Acquisition and operating expenses, net of deferrals, increased primarily attributable to the impact of our restructuring initiatives.

Amortization of DAC and intangibles declined due to lower DAC amortization as a result of elevated persistency, driven by high mortgage rates and lower software amortization.

The expense ratio was consistent due to growth in and premiums and expenses.

The loss on debt extinguishment relates to the expenses incurred associated with the redemption of our 2025 Notes.

Interest expense primarily relates to our 2025 Notes and 2029 Notes.

Acquisition and operating expenses, net of deferrals, decreased slightly driven primarily by prudent expense management coupled with severance expenses as a part of restructuring activities in 2024.

Amortization of DAC and intangibles declined slightly due to lower DAC amortization as a result of elevated persistency, driven by high mortgage rates and lower software amortization.

The expense ratio decreased slightly due to a small decrease in expenses and flat premium growth.

The loss on debt extinguishment relates to the expenses incurred associated with the redemption of our 2025 Notes in 2024.

Interest expense for 2025 primarily relates to our 2029 Notes while interest expense for 2024 relates primarily to our 2025 and 2029 Notes.

For additional details see Note 7 to our consolidated financial statements.

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This measure has been established in order to increase transparency for the purposes of evaluating our core operating trends and enabling more meaningful comparisons with our peers.

Although “adjusted operating income” is a non-GAAP financial measure, for the reasons discussed above we believe this measure aids in understanding the underlying performance of our operations.

“adjusted operating income” is a non-GAAP financial measure, for the reasons discussed above we believe this measure aids in understanding the underlying performance of our operations.

“Adjusted operating income” is defined as U.S.

GAAP net income excluding the effects of (i) net investment gains (losses) and (ii) restructuring costs and infrequent or unusual non-operating items.

GAAP net income excluding the effects of (i) net investment gains (losses) (ii) reorganization or restructuring costs and infrequent or unusual non-operating items and (iii) gains (losses) on the extinguishment of debt.

(i) Net investment gains (losses)—The recognition of realized investment gains or losses can vary significantly across periods as the activity is highly discretionary based on the timing of individual securities sales due to such factors as market opportunities or exposure management.

Trends in the profitability of our fundamental operating activities can be more clearly identified without the fluctuations of these realized gains and losses.

We do not view them to be indicative of our fundamental operating activities.

We do not view them as indicative of our fundamental operating activities.

Therefore, these items are excluded from our calculation of adjusted operating income.

(ii) Restructuring costs and infrequent or unusual non-operating items are also excluded from adjusted operating income if, in our opinion, they are not indicative of overall operating trends.

(iii) Gains (losses) on the extinguishment of debt are also excluded from adjusted operating income, as they are not indicative of overall operating trends.

(ii) Reorganization or restructuring costs and infrequent or unusual non-operating items are also excluded from adjusted operating income if, in our opinion, they are not indicative of overall operating trends.

(iii) Gains (losses) on the extinguishment of debt are also excluded from adjusted operating income, as we do not view them as indicative of overall operating trends.

In reporting non-GAAP measures in the future, we may make other adjustments for expenses and gains we do not consider reflective of core operating performance in a particular period.

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Adjusted operating income $ 687,750 $ 718,396 $ 676,485

Adjusted operating income increased in 2024 compared to 2023 primarily due to higher premiums and net investment income, partially offset by higher losses.

Adjusted operating income decreased in 2025 compared to 2024 primarily due to higher losses, partially offset by higher net investment income and lower expenses.

Management reviews the key metrics included within this section when analyzing the performance of our business.

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New insurance written

NIW for the year ended December 31, 2024 decreased 4% compared to 2023.

NIW for the year ended December 31, 2025 increased 1% compared to 2024.

Changes in NIW are primarily impacted by the size of the mortgage insurance market and our market share.

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Total $ 51,506 100 % $ 51,002 100 % $ 53,081 100 %

We have continued to see a greater concentration of loans with higher DTI ratios.

This is in line with market trends as elevated mortgage rates and recent home price appreciation have put pressure on affordability.

We believe the levels are in line with our current risk appetite as we consider layered risk across multiple risk attributes, pricing and our portfolio credit mix.

Insurance in-force and Risk in-force

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Generally, our master policies require an insured to notify us of a delinquency if the borrower fails to make two consecutive monthly mortgage payments prior to the due date of the next mortgage payment.

We generally consider a loan to be delinquent and establish required reserves after the insured notifies us that the borrower has failed to make two scheduled mortgage payments.

Borrowers default for a variety of reasons, including a reduction of income, unemployment, divorce, illness/death, inability to manage credit, falling home prices and interest rate levels.

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(1) Direct primary case reserves exclude LAE, pool, IBNR and reinsurance reserves.

The total reserves as a percentage of RIF declined as of December 31, 2024, compared to December 31, 2023 as we have experienced cures among long-term delinquencies with higher reserves and have reduced the expected claim rates on new delinquencies.

The total reserves as a percentage of RIF as of December 31, 2025, was flat compared to December 31, 2024.

The ratio of the claim paid to the current risk in-force for a loan is referred to as “claim severity.” The current risk in-force is equal to the unpaid principal amount multiplied by the coverage percentage.

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Delinquency rates are shown by region based upon the location of the underlying property, rather than the location of the lender.

below sets forth our primary delinquency rates for the ten largest states by our primary RIF as of December 31, 2024:

The table below sets forth our primary delinquency rates for the ten largest states by our primary RIF as of December 31, 2025:

Percent of RIF

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North Carolina 3 2 2.14 %

Washington 3 2 1.77 %

Pennsylvania 3 3 2.17 %

All other states (2)

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Michigan 4 3 1.94 %

North Carolina 3 3 1.59 %

Georgia 3 3 2.23 %

North Carolina 3 2 1.56 %

Washington 3 2 1.77 %

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Atlanta, GA MSA 3 3 3.59 %

New York, NY MD 2 6 3.53 %

Houston, TX MSA 2 3 3.58 %

Dallas, TX MD 2 2 2.49 %

Houston, TX MSA 2 3 3.54 %

New York, NY MD 2 5 3.70 %

Washington-Arlington, DC MD 2 2 2.62 %

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New York, NY MD 2 6 3.53 %

Washington-Arlington, DC MD 2 2 2.01 %

Houston, TX MSA 2 3 3.58 %

Los Angeles-Long Beach, CA MD 2 2 2.39 %

Dallas, TX MD 2 2 2.38 %

Washington-Arlington, DC MD 2 2 2.03 %

Riverside-San Bernardino, CA MSA 2 3 3.25 %

Los Angeles-Long Beach, CA MD 2 2 2.65 %

Denver-Aurora-Lakewood, CO MSA 2 1 1.38 %

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By MSA or MD:

Chicago-Naperville, IL MD 3 % 5 % 2.84 %

Phoenix, AZ MSA 3 % 2 % 2.01 %

New York, NY MD 3 8 3.75 %

Chicago-Naperville, IL MD 3 4 2.88 %

Atlanta, GA MSA 3 3 2.40 %

New York, NY MD 2 7 3.60 %

Washington-Arlington, DC MD 2 2 2.01 %

Houston, TX MSA 2 3 2.67 %

Riverside-San Bernardino, CA MSA 2 2 2.89 %

Los Angeles-Long Beach, CA MD 2 2 2.39 %

Dallas, TX MD 2 2 1.92 %

Riverside-San Bernardino, CA MSA 2 3 2.83 %

Denver-Aurora-Lakewood, CO MSA 2 1 1.12 %

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When our model identifies such a candidate, our loan workout specialists prioritize cases for loss mitigation based upon the likelihood that the loan will result in a claim.

Loss mitigation actions include loan modification,

extension of credit to bring a loan current, foreclosure forbearance, pre-foreclosure sale and deed-in-lieu.

Loss mitigation actions include loan modification, extension of credit to bring a loan current, foreclosure forbearance, pre-foreclosure sale and deed-in-lieu.

These loss mitigation efforts often are an effective way to reduce our claim exposure and ultimate payouts.

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Residential mortgage-backed 349,333 5.8 8,364 0.2 10,755 0.2

Commercial mortgage-backed 129,562 2.1 — — — —

Other asset-backed 1,056,123 17.5 1,189,465 21.2 1,197,183 22.7

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Our most significant source of operating cash flows is from premiums received from our insurance policies, while our most significant uses of operating cash flows are generally for claims paid on our insured policies and our operating expenses.

Net cash provided by operating activities increased largely due to higher net investment income and premiums.

Net cash provided by operating activities increased largely due to higher net investment income and lower expenses.

Cash flows from operations were also impacted by changes in reserves and unearned premiums.

Investing activities are primarily related to purchases, sales and maturities of our investment portfolio.

Net cash used in investing activities increased as a result of purchases of fixed maturity securities outpacing maturities and sales in the current year due to the deployment of operating cash flows.

In 2024, our cash flows from financing activities included the issuance of our 2029 Notes and the redemption of our 2025 Notes.

Financing activities for 2024 also included dividends paid of $112 million and share repurchases of $244 million.

Net cash used in investing activities was a result of purchases of fixed maturity securities outpacing maturities and sales in the current year due to the deployment of operating cash flows.

Financing activities for 2025 included dividends paid of $121 million and share repurchases of $382 million.

The amount and timing of future dividends is discussed within “—Trends and Conditions” as well as below.

In 2024, our cash flows from financing activities included the issuance of our 2029 Notes and the redemption of our 2025 Notes.

During 2024 and 2023, our cash flows used in financing activities included dividends paid of $112 million and $213 million, respectively, and share repurchases of $244 million and $88 million, respectively.

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The proceeds from our 2029 Notes, along with other available cash, were used to redeem our 2025 Notes during the second quarter of 2024.

On June 30, 2022, we entered into a credit agreement with a syndicate of lenders that provides for a five-year, unsecured revolving credit facility (the “Facility”) in the initial aggregate principal amount of $200 million.

We may use borrowings under the Facility for working capital needs and general corporate purposes, including the execution of dividends to our shareholders and capital contributions to our insurance subsidiaries.

The 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 with all covenants of the Facility and the Facility remained undrawn through December 31, 2024.

On September 30, 2025, we entered into a credit agreement with a syndicate of lenders that provides for a five-year, unsecured revolving credit facility (the “2025 Revolving Credit Facility”) in the initial aggregate principal amount of $435 million, which replaces the previous $200 million senior unsecured revolving credit facility.

The 2025 Revolving Credit Facility matures in September 2030, but under certain conditions EHI may need to repay any outstanding amounts and terminate the 2025 Revolving Credit Facility earlier than the maturity date.

We may use borrowings under the 2025 Revolving Credit Facility for working capital needs and general corporate purposes, including the execution of dividends to our shareholders and capital contributions to our insurance subsidiaries.

The 2025 Revolving Credit Facility contains several covenants, including financial covenants relating to minimum net worth, maximum debt to capitalization level and PMIERs compliance.

We are in compliance with all covenants of the 2025 Revolving Credit Facility and the 2025 Revolving Credit Facility has remained undrawn through December 31, 2025.

We continually evaluate opportunities based upon market conditions to further increase our financial flexibility including through raising additional capital, restructuring or refinancing some or all of our outstanding debt or pursuing other options such as reinsurance or credit risk transfer transactions.

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Another consideration in the development of the dividend strategies for our regulated insurance operating subsidiaries is our expected level of compliance with PMIERs.

Under PMIERs, EMICO is

subject to operational and financial requirements that approved insurers must meet in order to remain eligible to insure loans purchased by the GSEs.

Under PMIERs, EMICO is subject to operational and financial requirements that approved insurers must meet in order to remain eligible to insure loans purchased by the GSEs.

Our regulated insurance operating subsidiaries are also subject to statutory RTC requirements that affect the dividend strategies of our regulated operating subsidiaries.

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In addition, the dividend strategies of our regulated operating subsidiaries are made in consultation with Genworth.

During 2024, EMICO completed distributions of approximately $270 million and $230 million in March and November, respectively, that supported our ability to pay cash dividends.

In 2025, EMICO completed distributions of approximately $610 million that supported our ability to pay cash dividends.

We intend to use future EMICO distributions to fund the quarterly dividend as well as to bolster our financial flexibility at EHI and return additional capital to shareholders.

The credit agreement entered into in connection with the Facility contains customary restrictions on EHI’s ability to pay cash dividends.

Under the credit agreement, EHI is permitted to make cash distributions (1) so long as no Default or Event of Default (as each are defined in the credit agreement) has occurred and is continuing and EHI is in pro forma compliance with its financial covenants as described below at the time of and after giving effect to such payment, (2) within 60 days of declaration of any cash dividend so long as the payment was permitted under the credit agreement at the time of such declaration and (3) other customary exceptions as more fully set forth in the credit agreement.

The credit agreement requires EHI to maintain the following financial covenants:

a minimum consolidated net worth equal to the sum of (i) 72.5% of EHI’s consolidated net worth as of June 30, 2022 (“the Closing Date”), (ii) 50% of EHI’s positive consolidated net income for each fiscal quarter after the Closing Date and (iii) 50% of any increase in EHI’s consolidated net worth after the Closing Date resulting from equity issuances or capital contributions;

in respect of EMICO, a minimum total adjusted capital amount equal to 72.5% of EMICO’s total adjusted capital as of the Closing Date;

The revolving credit agreement requires EHI to maintain the following financial covenants:

a minimum consolidated net worth equal to the sum of (i) $3,729,000,000, (ii) 50% of cumulative consolidated net income of the Company for each fiscal quarter of the Company (beginning with the fiscal quarter ending September 30, 2025) for which consolidated net income is positive, and (iii) 50% of any increase in the consolidated net worth of the Company after September 30, 2025 resulting from the issuance of capital stock by or capital contributions to, in each case, the Company or any of its subsidiaries;

a maximum debt-to-total capitalization ratio of 0.35 to 1.00;

a minimum liquidity level of $25,000,000;

and compliance with all applicable financial requirements under the Private Mortgage Insurer Eligibility Requirements published by the Federal Home Loan Mortgage Corporation and the Federal National Mortgage Association.

For purposes of determining EHI’s compliance with the foregoing financial covenants, the consolidated net worth metric, total adjusted capital metric, debt-to-capitalization ratio and liquidity metric (including, in each case, any component thereof) are each calculated as set forth in the credit agreement.

For purposes of determining EHI’s compliance with the foregoing financial covenants, the consolidated net worth metric and debt-to-capitalization ratio (including, in each case, any component thereof) are each calculated as set forth in the credit agreement.

In addition to the restrictions described above, all dividends from EHI are subject to Genworth consent and EHI Board of Directors approval.

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As of December 31, 2025, we maintained liquidity in the form of cash and cash equivalents of $582 million compared to $599 million as of December 31, 2024, and we also held significant levels of investment-grade fixed maturity securities that can be monetized should our cash and cash equivalents be insufficient to meet our obligations.

On June 30, 2022, we entered into a five-year, unsecured revolving credit facility with a syndicate of lenders in the initial aggregate principal amount of $200 million.

The Facility matures in June 2027, but under certain conditions EHI may need to repay any outstanding amounts and terminate the Facility earlier than the maturity date.

The Facility may be used for working capital needs and general corporate purposes, including the execution of dividends to our shareholders and capital contributions to our insurance subsidiaries.

The Facility has remained undrawn through December 31, 2024.

On September 30, 2025, we entered into a five-year, unsecured revolving credit facility with a syndicate of lenders in the initial aggregate principal amount of $435 million.

The 2025 Revolving Credit Facility has remained undrawn through December 31, 2025.

The principal sources of liquidity in our business currently include insurance premiums, net investment income and cash flows from investment sales and maturities.

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However, our subsidiaries are subject to regulatory and other capital restrictions with respect to the payment of dividends.

We currently have no material financing commitments, such as lines of credit or guarantees, that are expected to affect our liquidity, other than the 2029 Notes and the Facility.

We currently have no material financing commitments, such as lines of credit or guarantees, that are expected to affect our liquidity, other than the 2029 Notes and the Revolving Credit Facility.

Financial Strength Ratings

Ratings with respect to the financial strength of operating subsidiaries are an important factor in establishing the competitive position of insurance companies.

Ratings are important to maintaining public confidence in us and our ability to market our products.

Ratings are important to maintaining public

confidence in us and our ability to market our products.

Rating organizations review the financial performance and condition of most insurers and provide opinions regarding financial strength, operating performance and ability to meet obligations to policyholders.

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Moody’s Investor Service, Inc.

A3 Positive Affirm March 27, 2024

A2 Stable Upgrade August 6, 2025

Fitch Ratings, Inc.

A Stable Upgrade January 17, 2025

S&P Global Ratings A- Stable Upgrade January 8, 2024

Best A- Stable Affirm

August 23, 2024

In August 2023, Enact Re was independently assigned a rating of A- by third-party rating organization A.M.

In August 2024, Enact Re was independently assigned a rating of A- by S&P Global Ratings.

S&P Global Ratings A- Positive Affirm January 15, 2026

Best A- Positive Affirm

September 18, 2025

Enact Re is currently assigned a rating of A- by A.M.

Best and a rating of A- by S&P Global Ratings.

Contractual Obligations and Commitments

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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 7. Management’s Discussion and Analysis