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What changed in Enact Holdings, Inc.'s 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of Enact Holdings, Inc.'s 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+362 added−415 removedSource: 10-K (2026-02-27) vs 10-K (2025-02-28)

Top changes in Enact Holdings, Inc.'s 2025 10-K

362 paragraphs added · 415 removed · 337 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

92 edited+6 added−24 removed206 unchanged
Biggest changeMortgage Servicing Rules The CFPB Servicing Rule established servicer requirements for handling loans that are in default, handling escrow accounts, responding to borrower assertions of error and loss mitigation in the event that a borrower defaults. A provision of the required loss mitigation procedures prohibits a loan holder or servicers from commencing foreclosure until 120 days after the borrower’s delinquency.
Biggest changeIn addition, both the Department of Justice (the “DOJ”) and the CFPB have pursued claims under the Fair Housing Act on a disparate impact theory as well. 23 Mortgage Servicing Rules The CFPB Servicing Rule established servicer requirements for handling loans that are in default, handling escrow accounts, responding to borrower assertions of error and loss mitigation in the event that a borrower defaults.
Mortgage insurance policies from government agencies are also generally non-cancellable, meaning that borrowers are obligated to pay for coverage through the life of their loan, 6 whereas policies from private mortgage insurers are cancellable in certain circumstances as provided by the Homeowners Protection Act of 1998 (“HOPA”), and under GSE guidelines when the loan-to-value (“LTV”) ratio of an underlying mortgage falls below 80%.
Mortgage insurance policies from government agencies are also generally non-cancellable, meaning that borrowers are obligated to pay for coverage through the life of their loan, whereas policies from private mortgage insurers are cancellable in certain circumstances as provided by the Homeowners Protection Act of 1998 (“HOPA”), and under GSE guidelines when the loan-to-value 6 (“LTV”) ratio of an underlying mortgage falls below 80%.
We also cannot predict whether other regulatory initiatives will be adopted and what 20 impact, if any, such initiatives, if adopted as laws, may have on our business, results of operations and financial condition. Group Capital Requirements .
We also cannot predict whether other regulatory initiatives will be adopted and what impact, if any, such initiatives, if adopted as laws, may have on our business, results of operations and financial condition. 20 Group Capital Requirements .
The NAIC has also adopted a guidance document that sets forth twelve principles for effective insurance regulation of cybersecurity risks based on similar regulatory guidance adopted by the Securities Industry and Financial Markets Association and the “Roadmap for Cybersecurity Consumer Protections,” which describes the protections to which the NAIC believes consumers should be entitled from their insurance companies, agents and other businesses concerning the collection and maintenance 27 of consumers’ personal information, as well as what consumers should expect when such information has been involved in a data breach.
The NAIC has also adopted a guidance document that sets forth twelve principles for effective insurance regulation of cybersecurity risks based on similar regulatory guidance adopted by the Securities Industry and Financial Markets Association and the “Roadmap for Cybersecurity Consumer Protections,” which describes the protections to which the NAIC believes consumers should be entitled from their insurance companies, agents and other businesses concerning the collection and maintenance of consumers’ personal information, as well as what consumers should expect when such information has been involved in a data breach.
Credit Risk Transfer Our risk management framework and analytics inform our CRT strategy, which is designed to reduce the loss volatility of our in-force portfolio during stress scenarios by transferring risk from our balance 12 sheet to highly rated counterparties or to investors through collateralized transactions. Our CRT program also provides capital relief under PMIERs and state insurance capital requirements.
Credit Risk Transfer Our risk management framework and analytics inform our CRT strategy, which is designed to reduce the loss volatility of our in-force portfolio during stress scenarios by transferring risk from our balance sheet to highly rated counterparties or to investors through collateralized transactions. Our CRT program also provides capital relief under PMIERs and state insurance capital requirements.
Our office building also houses an employee fitness center providing equipment, virtual classes, and massage therapy options on-site. 16 • We offer a multitude of professional development and career enrichment opportunities, including in the areas of leadership, professional skills, and industry-specific matters, as well as a mentor program and bespoke training for future senior leaders.
Our office building also houses an employee fitness center providing equipment, virtual classes, and massage therapy options on-site. • We offer a multitude of professional development and career enrichment opportunities, including in the areas of leadership, professional skills, and industry-specific matters, as well as a mentor program and bespoke training for future senior leaders.
Customers applying for delegated underwriting authority receive training and are reviewed on initial and ongoing submissions for compliance with our guidelines. Policy Acquisition Loans delivered to us for insurance must meet our underwriting and eligibility guidelines. Our underwriting principles require borrowers to have a verified capacity and willingness to support the obligation and a well-supported valuation of the collateral.
Customers applying for delegated underwriting authority receive training and are reviewed on initial and ongoing submissions for compliance with our guidelines. 10 Policy Acquisition Loans delivered to us for insurance must meet our underwriting and eligibility guidelines. Our underwriting principles require borrowers to have a verified capacity and willingness to support the obligation and a well-supported valuation of the collateral.
Mortgage insurers and their customers are subject to the potential sanctions of this 23 law, which may be enforced by the CFPB, state insurance departments, state attorneys general and other enforcement authorities. HOPA provides for the automatic termination, or cancellation upon a borrower’s request, of the borrower’s obligation to pay for private mortgage insurance upon satisfaction of certain conditions.
Mortgage insurers and their customers are subject to the potential sanctions of this law, which may be enforced by the CFPB, state insurance departments, state attorneys general and other enforcement authorities. HOPA provides for the automatic termination, or cancellation upon a borrower’s request, of the borrower’s obligation to pay for private mortgage insurance upon satisfaction of certain conditions.
All fifty states also require entities to provide notification to affected state residents and, in certain instances, state regulators, such as state attorneys general or state insurance commissions, in the event of certain security breaches affecting personal information, though some of these laws include exemptions for entities regulated by the GLB Act.
All fifty states also require entities to provide notification to affected state residents and, in certain instances, 25 state regulators, such as state attorneys general or state insurance commissions, in the event of certain security breaches affecting personal information, though some of these laws include exemptions for entities regulated by the GLB Act.
We expect cybersecurity risk management, prioritization and reporting to continue to be an area of significant regulatory focus by such regulatory bodies and self-regulatory organizations. As noted above, state governments, Congress, and federal and state agencies may consider and enact additional legislation or promulgate regulations governing privacy, cybersecurity, and data breach reporting requirements.
We expect cybersecurity risk management, prioritization and reporting to 26 continue to be an area of significant regulatory focus by such regulatory bodies and self-regulatory organizations. As noted above, state governments, Congress, and federal and state agencies may consider and enact additional legislation or promulgate regulations governing privacy, cybersecurity, and data breach reporting requirements.
We routinely assess talent, engage in deep succession planning at all levels of the organization and provide feedback to our employees through a formal annual performance review process. • Our employee-led council focused on our diverse employee population helps to build an inclusive culture through company-wide events and by educating our employees on the experiences and perspectives of others. • We champion civic engagement through paid volunteer time for employees, event sponsorship programs, employee-directed charitable gifts with a 100% company match, the Enact Foundation, and through our commitment to environmental sustainability. • We empower employees to share their unique perspectives by promoting initiatives that increase access to our Senior Leadership Team and encouraging open-door policies.
We routinely assess talent, engage in deep succession planning at all levels of the organization and provide feedback to our employees through a formal annual performance review process. 16 • Our employee-led council focused on our employee population helps to build an inclusive culture through company-wide events and by educating our employees on the experiences and perspectives of others. • We champion civic engagement through paid volunteer time for employees, event sponsorship programs, employee-directed charitable gifts with a 100% company match, the Enact Foundation, and through our commitment to environmental sustainability. • We empower employees to share their unique perspectives by promoting initiatives that increase access to our Senior Leadership Team and encouraging open-door policies.
Mortgage guaranty insurance premium rates and policy forms are subject to regulation in every jurisdiction in which our insurance subsidiaries are licensed to transact business in order to protect policyholders against the adverse effects of excessive, inadequate or unfairly discriminatory rates. In most jurisdictions, premium rates and policy forms must be filed prior to their use.
Mortgage guaranty insurance premium rates and policy forms are subject to regulation in every jurisdiction in which our insurance subsidiaries are licensed to transact business in order to protect policyholders against the adverse effects of excessive, inadequate or unfairly discriminatory rates. In most 17 jurisdictions, premium rates and policy forms must be filed prior to their use.
The NAIC has developed a group capital calculation (“GCC”) tool using an RBC aggregation methodology for all entities within the insurance holding company system, including non-U.S. entities. The GCC provides regulators with an additional tool for conducting group-wide supervision and enhances transparency into how capital is allocated.
The NAIC has developed and implemented a group capital calculation (“GCC”) tool using an RBC aggregation methodology for all entities within the insurance holding company system, including non-U.S. entities. The GCC provides regulators with an additional tool for conducting group-wide supervision and enhances transparency into how capital is allocated.
Private mortgage insurance satisfies the GSEs’ credit enhancement requirement and, historically, has been the preferred method lenders have utilized to meet this GSE charter requirement. As a result, the nature of the private mortgage insurance industry in the United States is driven in large part by the business practices and mortgage insurance requirements of the GSEs.
Private mortgage insurance satisfies the GSEs’ credit enhancement requirement and, historically, has been the preferred method lenders have utilized to meet this GSE charter requirement. As a result, the nature of the private mortgage insurance 5 industry in the United States is driven in large part by the business practices and mortgage insurance requirements of the GSEs.
All loans must pass through our eligibility rules engine to screen out those outside of our guidelines. 11 At present, our underwriting guidelines are largely consistent with those of the GSEs. Many of our customers use the GSEs’ automated loan underwriting systems, Desktop Underwriter and Loan Product Advisor, for making credit determinations.
All loans must pass through our eligibility rules engine to screen out those outside of our guidelines. At present, our underwriting guidelines are largely consistent with those of the GSEs. Many of our customers use the GSEs’ automated loan underwriting systems, Desktop Underwriter and Loan Product Advisor, for making credit determinations.
State insurance laws and regulations also usually require the licensing of 17 insurers and agents, and the approval of policy forms and rates. In addition, states may require actuarial justification of rates on the basis of the insurer’s loss experience, expenses and future projections. Enact Re is subject to a similar Bermudian regulatory regime.
State insurance laws and regulations also usually require the licensing of insurers and agents, and the approval of policy forms and rates. In addition, states may require actuarial justification of rates on the basis of the insurer’s loss experience, expenses and future projections. Enact Re is subject to a similar Bermudian regulatory regime.
Most jurisdictions also require a person seeking to acquire control of an insurer licensed but not domiciled in that jurisdiction to make a filing prior to completing an acquisition if the acquirer and its affiliates and the target insurer and its affiliates have 18 specified market shares in the same lines of insurance in that jurisdiction.
Most jurisdictions also require a person seeking to acquire control of an insurer licensed but not domiciled in that jurisdiction to make a filing prior to completing an acquisition if the acquirer and its affiliates and the target insurer and its affiliates have specified market shares in the same lines of insurance in that jurisdiction.
Since insurance regulators are primarily concerned with ensuring an insurer’s ability to pay its current and future obligations to policyholders, statutory accounting conservatively values the assets and liabilities of insurers, generally in accordance with standards specified by such insurer’s domiciliary jurisdiction.
Since insurance regulators are primarily concerned with ensuring an insurer’s ability 19 to pay its current and future obligations to policyholders, statutory accounting conservatively values the assets and liabilities of insurers, generally in accordance with standards specified by such insurer’s domiciliary jurisdiction.
Similarly, with respect to our contract underwriting entity, Enact Financial Services, Inc., prior approval from state banking commissioners is required in some jurisdictions prior to acquiring control of our contract underwriting entity, which is licensed or has an approved license exemption in most states.
Similarly, with respect to our contract underwriting entity, Enact Financial Services, Inc., prior approval from state banking commissioners is required in some jurisdictions prior to acquiring 18 control of our contract underwriting entity, which is licensed or has an approved license exemption in most states.
Any delays in foreclosure, including foreclosure moratoriums imposed by state and local governments and the GSEs, could cause our losses to increase as expenses accrue for longer periods or if the value of foreclosed homes decline during such foreclosure delays.
Any delays in foreclosure, including foreclosure moratoriums imposed by state and local governments and the GSEs, could cause our losses to increase as expenses 13 accrue for longer periods or if the value of foreclosed homes decline during such foreclosure delays.
Certain states have implemented certain requirements of the GLB Act, including North Carolina through the Consumer and Customer Information Privacy Act. 26 Many states have enacted privacy and data security laws that impose compliance obligations beyond those imposed by the GLB Act, including obligations to protect sensitive personal information.
Certain states have implemented certain requirements of the GLB Act, including North Carolina through the Consumer and Customer Information Privacy Act. Many states have enacted privacy and data security laws that impose compliance obligations beyond those imposed by the GLB Act, including obligations to protect sensitive personal information.
Such credit enhancement can be satisfied if a loan is insured by a GSE-qualified insurer, the mortgage seller retains at least a 10% participation in the loan, or the seller 5 agrees to repurchase or replace the loan in the event of a default.
Such credit enhancement can be satisfied if a loan is insured by a GSE-qualified insurer, the mortgage seller retains at least a 10% participation in the loan, or the seller agrees to repurchase or replace the loan in the event of a default.
Freddie Mac has also imposed 22 additional requirements on our option to commute these reinsurance agreements. Both GSEs reserved the right to periodically review the reinsurance transactions for treatment under PMIERs.
Freddie Mac has also imposed additional requirements on our option to commute these reinsurance agreements. Both GSEs reserved the right to periodically review the reinsurance transactions for treatment under PMIERs.
Following the financial crisis of 2008, the Basel Committee issued Basel III that established RBC and leverage capital requirements for most United States banking organizations (although banking organizations with less than $10 billion in total assets may now choose to comply with 25 an alternative community bank leverage ratio framework established by the Federal Banking Agencies in 2019).
Following the financial crisis of 2008, the Basel Committee issued Basel III that established RBC and leverage capital requirements for most United States banking organizations (although banking organizations with less than $10 billion in total assets may now choose to comply with 24 an alternative community bank leverage ratio framework established by the Federal Banking Agencies in 2019).
In addition, PMIERs require private mortgage insurers to obtain the prior consent of the GSEs before taking certain actions, which may include entering into various intercompany agreements and commuting or reinsuring risk, among others. As of December 31, 2024, we met the PMIERs financial and operational requirements and currently hold capital in excess of the financial requirements.
In addition, PMIERs require private mortgage insurers to obtain the prior consent of the GSEs before taking certain actions, which may include entering into various intercompany agreements and commuting or reinsuring risk, among others. As of December 31, 2025, we met the PMIERs financial and operational requirements and currently hold capital in excess of the financial requirements.
Our portfolio is diverse and representative of the United States origination market. We actively monitor our portfolio for concentrations at the state, metropolitan statistical area and metropolitan division level in addition to economic and performance trends in these markets. As of December 31, 2024, our largest state concentration was in California, which represented 12% of primary RIF.
Our portfolio is diverse and representative of the United States origination market. We actively monitor our portfolio for concentrations at the state, metropolitan statistical area and metropolitan division level in addition to economic and performance trends in these markets. As of December 31, 2025, our largest state concentration was in California, which represented 12% of primary RIF.
Our largest Metropolitan Statistical Area (“MSA”) or Metro Division (“MD”) is the Phoenix, AZ, MSA, which represents 3% of primary RIF. Customers Our long-standing industry presence has enabled us to build active customer relationships with over 1,600 mortgage lenders across the United States.
Our largest Metropolitan Statistical Area (“MSA”) or Metro Division (“MD”) is the Phoenix, AZ, MSA, which represents 3% of primary RIF. Customers Our long-standing industry presence has enabled us to build active customer relationships with approximately 1,600 mortgage lenders across the United States.
Our risk management philosophy is designed to ensure all relevant risks are routinely identified, assessed, managed, monitored and addressed. We rely upon a strong organizational risk culture and governance process, ensuring that the risks we take are transparent and quantifiable, and that we can monitor the changing nature of those risks over time.
Our risk management philosophy is designed to ensure all relevant risks are routinely identified, assessed, managed, monitored and addressed. We rely upon a strong organizational risk culture and governance process, supporting that the risks we take are transparent and quantifiable, and that we can monitor the changing nature of those risks over time.
Management Discussion and Analysis of Financial Condition and Results of Operations - Financial Strength Ratings.” Investment Portfolio The investment portfolios of our insurance subsidiaries are directed by the Enact Investment Committee, a management-level committee, with Genworth serving as the investment manager. Under 15 the terms of our investment management agreement, the Company is charged an investment management fee by Genworth.
Management Discussion and Analysis of Financial Condition and Results of Operations - Financial Strength Ratings.” Investment Portfolio The investment portfolios of our insurance subsidiaries are directed by the Enact Investment Committee, a management-level committee, with Genworth serving as the primary investment manager. Under the terms of our investment management agreement, the Company is charged an investment management fee by Genworth.
Our primary exposures from legacy books originated prior to 2009 continue to resolve in an orderly fashion and represented 2% of both our primary IIF and primary RIF as of December 31, 2024. We measure the credit characteristics of our portfolio as represented in the original commitment for insurance.
Our primary exposures from legacy books originated prior to 2009 continue to resolve in an orderly fashion and represented 2% of both our primary IIF and primary RIF as of December 31, 2025. We measure the credit characteristics of our portfolio as represented in the original commitment for insurance.
The information found on our website is not incorporated by reference into this report or in any other report or document we submit to the SEC, and any references to our website are intended to be inactive textual references only. 28
The information found on our website is not incorporated by reference into this report or in any other report or document we submit to the SEC, and any references to our website are intended to be inactive textual references only. 27
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.
The updates also established 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.
Several states have recently enacted new privacy and information security requirements and new insurance laws that require certain regulated entities to implement and maintain comprehensive information security programs to safeguard the personal information of insureds and enrollees.
Several states have enacted privacy and information security requirements and insurance laws that require certain regulated entities to implement and maintain comprehensive information security programs to safeguard the personal information of insureds and enrollees.
We believe our insurance subsidiaries’ investments are in compliance with these state insurance laws and regulations or are subject to any applicable waivers. Enact Re’s investments are in compliance with Bermudian law.
We believe our insurance subsidiaries’ investments are in compliance with these state insurance laws and regulations or are subject to any applicable waivers. Enact Re’s investments are governed by, and in compliance with, Bermudian law.
We also periodically receive claim notices that request coverage for costs and expenses associated with items not covered under our policies, such as losses resulting from property damage to a covered home. We actively review claim notices to ensure we pay only for covered expenses.
We also periodically receive claim notices that request coverage for costs and expenses associated with items not covered under our policies, such as losses resulting from property damage to a covered home. We actively review claim notices in an effort to ensure we pay only for covered expenses.
We value the voice of our employees and use a best-in-class third party approach to gather employee feedback. • We celebrate our talent by showcasing employee achievements and expertise in industry and local publications, at events and conferences, and through our online presence. Enact was recognized as an award winner by external organizations on five occasions throughout 2024.
We value the voice of our employees and use a best-in-class third party approach to gather employee feedback. • We celebrate our talent by showcasing employee achievements and expertise in industry and local publications, at events and conferences, and through our online presence. Enact was recognized as an award winner by external organizations on four occasions throughout 2025.
For the years ended December 31, 2024 and 2023, approximately 71% and 70%, respectively, of our NIW by loan count went through our delegated underwriting services. Pricing Pricing is highly competitive in the mortgage insurance industry, with industry participants competing for market share, customer relationships and overall value.
For the years ended December 31, 2025 and 2024, approximately 73% and 71%, respectively, of our NIW by loan count went through our delegated underwriting services. Pricing Pricing is highly competitive in the mortgage insurance industry, with industry participants competing for market share, customer relationships and overall value.
We have a large and diverse customer base and maintain enduring relationships across the mortgage origination market, including with national banks, non-bank mortgage lenders, local mortgage bankers, community banks and credit unions. In 2024, we provided new insurance coverage to over 1,600 customers.
We have a large and diverse customer base and maintain enduring relationships across the mortgage origination market, including with national banks, non-bank mortgage lenders, local mortgage bankers, community banks and credit unions. In 2025, we provided new insurance coverage to approximately 1,600 customers.
According to the earnings reports of the GSEs, the GSEs held or guaranteed approximately $7.8 trillion as of September 30, 2024, or around 55%, of total United States 1-4 family residential mortgage debt according to most recent data from the Federal Reserve.
According to the earnings reports of the GSEs, the GSEs held or guaranteed approximately $7.8 trillion as of September 30, 2025, or around 53%, of total United States 1-4 family residential mortgage debt according to most recent data from the Federal Reserve.
In addition, our PMIERs required assets as of December 31, 2024, benefited from the application of a 0.30 multiplier applied to the risk-based required asset amount factor for certain non-performing loans. Per guidance released by the GSEs in the third quarter of 2024, use of the multiplier will be discontinued effective March 31, 2025.
In addition, our PMIERs required assets as of December 31, 2024, benefited from the application of a 0.30 multiplier applied to the risk-based required asset amount factor for certain non-performing loans. Per guidance released by the GSEs, use of the multiplier was discontinued effective March 31, 2025.
This deferral of premiums into the contingency reserve limits our mortgage insurance subsidiaries’ ability to pay dividends to stockholders until those contingency reserves are released back into surplus. Our mortgage insurance subsidiaries’ statutory contingency reserve was approximately $4,336 million and $3,960 million as of December 31, 2024 and 2023, respectively.
This deferral of premiums into the contingency reserve limits our mortgage insurance subsidiaries’ ability to pay dividends to stockholders until those contingency reserves are released back into surplus. Our mortgage insurance subsidiaries’ statutory contingency reserve was approximately $4,513 million and $4,336 million as of December 31, 2025 and 2024, respectively.
The weighted average LTV of our IIF as of December 31, 2024 was 93% and the weighted average LTV of our NIW was 93% in both 2024 and 2023. The credit profile of our portfolio as represented by FICO score remains strong.
The weighted average LTV of our IIF as of December 31, 2025 was 93% and the weighted average LTV of our NIW was 92% in 2025 and 93% in 2024. The credit profile of our portfolio as represented by FICO score remains strong.
Additionally, by maintaining an ongoing dialogue with our customers, we are able to develop an understanding of their needs, offer customized solutions for their challenges, advise them on portfolio composition and trends, share market perspectives and industry best practices and provide product development support and training as necessary.
We offer customers a competitive price along with differentiated offerings and services. Additionally, by maintaining an ongoing dialogue with our customers, we are able to develop an understanding of their needs, offer customized solutions for their challenges, advise them on portfolio composition and trends, share market perspectives and industry best practices and provide product development support and training as necessary.
For the full years ended December 31, 2024, 2023 and 2022 we generated new insurance written (“NIW”) of $51.0 billion, $53.1 billion and $66.5 billion, respectively. Net income was $688 million, $666 million and $704 million in 2024, 2023 and 2022, respectively. Adjusted operating income was $718 million, $676 million and $708 million for 2024, 2023 and 2022, respectively.
For the full years ended December 31, 2025, 2024 and 2023 we generated new insurance written (“NIW”) of $51.5 billion, $51.0 billion and $53.1 billion, respectively. Net income was $674 million, $688 million and $666 million in 2025, 2024 and 2023, respectively. Adjusted operating income was $688 million, $718 million and $676 million for 2025, 2024 and 2023, respectively.
According to Inside Mortgage Finance , for the first three quarters of 2024, the FHA had a 34% share, and the VA a 23% share, of the mortgage insurance market. Our competition with government agencies is principally on the basis of price and underwriting guidelines.
According to Inside Mortgage Finance , for the first three quarters of 2025, the FHA had a 35% share, and the VA a 26% share, of the mortgage insurance market. Our competition with government agencies is principally on the basis of price and underwriting guidelines.
We supplement our workforce, as needed, with independent contractors. Our employees and contractors are all equipped to work on a remote basis. None of our employees are represented by a union or subject to a collective servicing agreement and management believes that our relationship with our employees is good.
Our employees and contractors are all equipped to work on a remote basis. None of our employees are represented by a union or subject to a collective servicing agreement and management believes that our relationship with our employees is good.
Examinations State insurance laws and regulations govern the marketplace for U.S. domiciled insurers, affecting the form and content of disclosure to insureds, advertising, sales and underwriting practices and complaint and claims handling, and these provisions are generally enforced through periodic or target market conduct examinations.
We comply by participating in Genworth’s ORSA reporting. Examinations State insurance laws and regulations govern the marketplace for U.S. domiciled insurers, affecting the form and content of disclosure to insureds, advertising, sales and underwriting practices and complaint and claims handling, and these provisions are generally enforced through periodic or target market conduct examinations.
Generally, a borrower with a higher FICO score has a lower likelihood of claim than one with a lower FICO score. The weighted average FICO score of our IIF as of December 31, 2024 was 745 and the weighted average FICO score of our NIW was 751 in 2024 and 749 in 2023.
Generally, a borrower with a higher FICO score has a lower likelihood of claim than one with a lower FICO score. The weighted average FICO score of our IIF as of December 31, 2025 was 746 and the weighted average FICO score of our NIW was 753 in 2025 and 751 in 2024.
The CCPA, as amended by the CPRA, grants California residents the right to know what information a business has collected about them and the sourcing and sharing of that information, as well as the right to access and correct their personal information, and (subject to certain exemptions) the right to have a business delete their personal information.
The CCPA and its amendments grant California residents the right to know what information a business has collected about them and the sourcing and sharing of that information, as well as the right to access and correct their personal information, and (subject to certain exemptions) the right to have a business delete their personal information.
The NYDFS amended its cybersecurity regulation effective November 1, 2023, which, along with subsequent guidance, requires all banks, insurance companies, and other financial services institutions and licensees regulated by the NYDFS, including several of our subsidiaries, to establish a cybersecurity program.
The New York Department of Financial Services (“NYDFS”) amended its cybersecurity regulation which, along with subsequent guidance, requires all banks, insurance companies, and other financial services institutions and licensees regulated by the NYDFS, including several of our subsidiaries, to establish a cybersecurity program.
Our XOL reinsurance transactions generally cover a subset of loans in a given book year where typically both the attachment and detachment points of the ceded risk tier are within the PMIERs capital requirements at inception, providing both loss volatility protection and PMIERs capital credit.
Our traditional reinsurance program utilizes excess-of-loss (“XOL”) and quota share insurance coverage. Our XOL reinsurance transactions generally cover a subset of loans in a given book year where typically both the attachment and detachment points of the ceded risk tier are within the PMIERs capital requirements at inception, providing both loss volatility protection and PMIERs capital credit.
Our model is used to assess the performance of new business and our in-force portfolio under expected and stress scenarios. The results of these analyses inform our risk appetite, credit policy, pricing and targeted risk selection strategies.
Our model is used to assess the performance of new business and our in-force portfolio under expected and stress scenarios. The results of these analyses inform our risk appetite, credit policy, pricing and targeted risk selection strategies. In addition, the results of these stress tests and our desire to reduce loss volatility inform our CRT strategy.
As of December 31, 2024, we had estimated 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.
As of December 31, 2025, we had estimated available assets of $5,015 million against $3,096 million net required assets under PMIERs compared to available assets of $5,095 million against $3,043 million net required assets as of December 31, 2024.
The sufficiency ratio as of December 31, 2024, was 167% or $2,052 million above the PMIERs requirements, compared to 161% or $1,887 million above the PMIERs requirements as of December 31, 2023.
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 largest customer accounted for 20% of total NIW and 11% of our total revenues for the year ended December 31, 2024 and 19% of total NIW and 10% of our total revenues for the year ended December 31, 2023. This customer also accounted for 18% of our total NIW during the year ended December 31, 2022.
Our largest customer accounted for 22% of total NIW and 12% of our total revenues for the year ended December 31, 2025, 20% of total NIW and 11% of our total revenues for the year ended December 31, 2024, and 19% of total NIW and 10% of our total revenues for the year ended December 31, 2023.
Additionally, other states have enacted privacy laws that will become effective in 2024 and beyond. Adapting our data privacy practices to forthcoming applicable laws and regulations may increase our compliance costs and increase the risk of noncompliance. Cybersecurity continues to be an area of significant and increasing focus of legislatures and regulators.
Adapting our data privacy practices to forthcoming applicable laws and regulations may increase our compliance costs and increase the risk of noncompliance. Cybersecurity continues to be an area of significant and increasing focus of legislatures and regulators.
In normal market conditions, we believe our CRT program also enhances our return profile. Given the volatility protection and capital relief at attractive terms, CRT enables us to employ an “acquire, manage and distribute” strategy. We believe our CRT program is a material component of our strategy and helps to protect future business performance and stockholder capital under stress scenarios.
In normal market conditions, we believe our CRT program also enhances our return profile. Given the volatility protection and capital relief at attractive terms, CRT enables us to employ an “acquire, manage and distribute” strategy.
The California Consumer Privacy Act of 2018 (the “CCPA”) was amended significantly by the California Privacy Rights Act of 2020 (“CPRA”).
The California Consumer Privacy Act of 2018 (the “CCPA”) was amended significantly by the California Privacy Rights Act of 2020 (“CPRA”) and again amended in 2025 by the California Privacy Protection Agency (CalPrivacy).
Information Technology We develop and invest in technology in order to drive operational excellence, promote a superior customer experience and support our overall business objectives. Our business heavily relies upon information technology and a number of critical aspects are highly automated. We accept insurance applications, issue approvals, process claims and reconcile premium remittance through electronic submission.
Our business heavily relies upon information technology and a number of critical aspects are highly automated. We accept insurance applications, issue approvals, process claims and reconcile premium remittance through electronic submission.
Our underwriting staff is dispersed throughout the United States, and we believe this allows us to make prompt, geographically based underwriting determinations across different time zones in a timely manner to best serve our diverse customer base. In addition to our employees, we use contract underwriters, as needed, to assist with underwriting capacity and drive efficiency.
We use our mortgage insurance underwriting system to perform our non-delegated underwriting evaluations. Our underwriting staff is dispersed throughout the United States, and we believe this allows us to make prompt, geographically based underwriting determinations across different time zones in a timely manner to best serve our diverse customer base.
Virginia, Colorado, Connecticut, and Utah enacted comprehensive data privacy laws that went into effect in 2023. These laws generally impose similar requirements as the CCPA but do not apply to employee or contractor data or business-to-business information. Each of these laws has entity-wide exemptions for financial institutions subject to the GLB Act.
These laws generally impose similar requirements as the CCPA but most do not apply to employee or contractor data or business-to-business information. Each of these laws has either entity-wide or data-specific exemptions for financial institutions subject to the GLB Act.
Delegated Underwriting We delegate to eligible lender customers the ability to underwrite mortgage insurance based on our delegated underwriting guidelines. To perform delegated underwriting, customers must be approved by our risk management team.
In addition to our employees, we use contract underwriters, as needed, to assist with underwriting capacity and drive efficiency. Delegated Underwriting We delegate to eligible lender customers the ability to underwrite mortgage insurance based on our delegated underwriting guidelines. To perform delegated underwriting, customers must be approved by our risk management team.
We may rescind coverage in situations where, among other things, (i) fraudulent misrepresentations were made or materially inaccurate information was provided regarding a borrower’s income, debts, intention to occupy a property or property value or (ii) a loan was originated in material violation of our underwriting guidelines. 14 We will consider an insured’s appeal of our decision and, if we agree with the appeal, we take the necessary steps to reinstate our insurance coverage and reactivate the loan certificate or otherwise address the issues raised in the appeal.
We may rescind coverage in situations where, among other things, (i) fraudulent misrepresentations were made or materially inaccurate information was provided regarding a borrower’s income, debts, intention to occupy a property or property value or (ii) a loan was originated in material violation of our underwriting guidelines.
The majority of the CPRA provisions went into effect on January 1, 2023. Failure to comply with the CCPA risks regulatory fines, and the law grants a private right of action for any unauthorized disclosure of certain personal information not subject to an exemption as a result of failure to maintain reasonable security procedures and practices.
Failure to comply with the CCPA risks regulatory fines, and the law grants a private right of action for any unauthorized disclosure of certain personal information not subject to an exemption as a result of failure to maintain reasonable security procedures and practices. Many states have enacted comprehensive data privacy laws in the past few years.
In addition, the results of these stress tests and our desire to reduce loss volatility inform our CRT strategy. 10 Customer Qualification Customers applying for a new master policy undergo a process that reviews their business and financial profile, licensing, management experience and track record of originating quality mortgages.
Customer Qualification Customers applying for a new master policy undergo a process that reviews their business and financial profile, licensing, management experience and track record of originating quality mortgages.
With the COVID-19 pandemic, we experienced unprecedented use of forbearance plans nationwide to assist borrowers including the ability to extend forbearance beyond 12 months. Historically, the use of forbearance plans was limited to 12 months and primarily used for a natural disaster that impacted a region of the country.
Historically, the use of forbearance plans was limited to 12 months and primarily used for a natural disaster that impacted a region of the country.
It is unclear how the development of group capital measures by the NAIC will interact with existing capital requirements for U.S. insurance companies.
We submit the required GCC filing annually to Virginia, our insurance holding company group’s lead state. It is unclear how the development of group capital measures by the NAIC will interact with existing capital requirements for U.S. insurance companies.
As of December 31, 2024, we had 421 full-time employees, all of whom work in the United States. Our employee population is made up of 52% women and 29% people of color. Of our employees, 51% work in our Raleigh, North Carolina office and the remaining 49% are in the field, predominantly working in sales and underwriting.
As of December 31, 2025, we had 419 full-time employees, all of whom work in the United States. Of our employees, 51% work in our Raleigh, North Carolina office and the remaining 49% are in the field, predominantly working in sales and underwriting. We supplement our workforce, as needed, with independent contractors.
PMIERs aims to ensure that approved insurers possess the financial and operational capacity to serve as strong counterparties to the GSEs throughout various market conditions. PMIERs is comprehensive, covering virtually all aspects of the business and operations of a private mortgage insurer of GSE loans, including internal risk management and quality controls, underwriting, claim processing and loss mitigation, among others.
PMIERs is comprehensive, covering virtually all aspects of the business and operations of a private mortgage insurer of GSE loans, 21 including internal risk management and quality controls, underwriting, claim processing and loss mitigation, among others.
In 2021 and 2020, our portfolio was impacted by low persistency, a large origination market and commercial success in the market.
In 2021 and 2020, our portfolio was impacted by low persistency, a large origination market and commercial success in the market. A period of higher persistency followed, leading to a more balanced concentration of IIF in recent years.
Other Federal Regulation We and other private mortgage insurers are impacted by federal regulation of residential mortgage transactions with respect to mortgage originators and lenders, purchasers of mortgage loans such as Fannie Mae and Freddie Mac and governmental insurers such as the FHA and the VA.
The ultimate impact of the PMIERs changes will be influenced by investment portfolio maturities, dispositions, reinvestments, and overall business and economic performance through the phase-in dates. 22 Other Federal Regulation We and other private mortgage insurers are impacted by federal regulation of residential mortgage transactions with respect to mortgage originators and lenders, purchasers of mortgage loans such as Fannie Mae and Freddie Mac and governmental insurers such as the FHA and the VA.
Our operations also include a run-off insurance block with reference properties in Mexico (“run-off business”), which is immaterial to our results. Our Strategy Our objective is to support our mission to help people buy a house and keep it their home, while leveraging our competitive strengths to maximize value for our stockholders.
Our Strategy Our objective is to support our mission to help people buy a house and keep it their home, while leveraging our competitive strengths to maximize value for our stockholders.
The primary objectives of managing the investment portfolio are to preserve capital, generate investment income and maintain sufficient liquidity to cover our operating expenses and pay future insurance claims. Investment strategies are implemented emphasizing fixed income, low volatility, highly liquid assets to meet expected and unexpected financial obligations while enhancing risk adjusted, after-tax yields. See “Item 7.
Investment strategies are implemented emphasizing fixed income, low volatility, highly liquid assets to meet expected and unexpected financial obligations while enhancing risk adjusted, after-tax yields. See “Item 7.
The breadth and depth of relationships across all areas of our customers’ operations serves as a differentiator for our mortgage insurance platform and 9 also enables us to form strategic partnerships with other mortgage service providers seeking to expand their distribution reach.
The breadth and depth of relationships across all areas of our customers’ operations serves as a differentiator for our mortgage insurance platform and also enables us to form strategic partnerships with other mortgage service providers seeking to expand their distribution reach. 9 We support our sales force and improve their effectiveness in acquiring new customers by raising our brand awareness through advertising and marketing campaigns, website enhancements, digital communication strategies and sponsorship of industry and educational events.
If the parties are unable to agree on the outcome of the appeal, the insured may choose to pursue arbitration or litigation under the terms of the applicable master policy and challenge the results. Subject to applicable limitations in our policies and state law, legal challenges to our actions may be brought several years after we dispose of a claim.
If the parties are unable to agree on the outcome of the appeal, the insured may choose to pursue arbitration or litigation under the terms of the applicable master policy and challenge the results.
Our policies are issued through one of two underwriting programs: Non-Delegated Underwriting For non-delegated underwriting, customers submit loan files to us, and we individually underwrite each application to determine whether we will insure the loan. We use our mortgage insurance underwriting system to perform our non-delegated underwriting evaluations.
We generally accept the underwriting decisions and documentation requirements made by the GSEs’ underwriting systems, subject to our review as well as certain limitations and requirements. 11 Our policies are issued through one of two underwriting programs: Non-Delegated Underwriting For non-delegated underwriting, customers submit loan files to us, and we individually underwrite each application to determine whether we will insure the loan.
State insurance departments may conduct periodic or target detailed examinations of the books, records, accounts and business practices of insurers licensed in their states.
State insurance departments may conduct periodic or target detailed examinations of the books, records, accounts and business practices of insurers licensed in their states. These examinations are sometimes conducted in cooperation with insurance departments of multiple other states or jurisdictions representing each of the NAIC zones, under guidelines promulgated by the NAIC.
We operate a majority of our business through our primary insurance subsidiary, Enact Mortgage Insurance Corporation (“EMICO”). EMICO is an approved insurer by the GSEs. EMICO was renamed from Genworth Mortgage Insurance Corporation effective February 7, 2022. We also offer mortgage-related insurance and reinsurance through our wholly owned Bermuda-based subsidiary, Enact Re Ltd. ("Enact Re").
We operate a majority of our business through our primary insurance subsidiary, Enact Mortgage Insurance Corporation (“EMICO”). EMICO is an approved insurer by the GSEs. We also offer mortgage and credit-related insurance and reinsurance through our other subsidiaries, including investing in new opportunities for Enact. One of these subsidiaries, Enact Re Ltd.
Claims result from delinquencies that are not cured, or from losses on short sales, other third-party sales or deeds-in-lieu of foreclosure that we approve. Various factors affect the frequency and severity of claims, including LTV at the time of foreclosure, size and coverage percentage of a loan, property values, employment levels and interest rates.
Various factors affect the frequency and severity of claims, including LTV at the time of foreclosure, size and coverage percentage of a loan, property values, employment levels and interest rates.
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 in 2022 and no other customer accounted for more than 10% of NIW in 2022. Our top five customers generated 34% of our NIW in 2024.
No other customer accounted for 10% or more of total revenues or NIW for the years ended December 31, 2025, 2024 or 2023. Our top five customers generated 33% of our NIW in 2025. We believe that our success in establishing strong, sustained relationships and our ability to capture new customers is attributable to our comprehensive value proposition.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeOur amended and restated certificate of incorporation provides that, unless we consent in writing to the selection of an alternative forum, the Court of Chancery of the State of Delaware shall be the sole and exclusive forum for (i) any derivative action or proceeding brought on our behalf, (ii) any action asserting a claim of breach of a duty (including any fiduciary duty) owed by any of our current or former directors, officers, stockholders, employees or agents to us or our stockholders, (iii) any action asserting a claim against us or any of our current or former directors, officers, stockholders, employees or agents arising out of or relating to any provision of the Delaware General Corporation Law (“DGCL”) or our amended and restated certificate of incorporation or our amended and restated bylaws (each, as in effect from time to time), or (iv) any action asserting a claim against us or any of our current or former directors, officers, stockholders, employees or agents governed by the internal affairs doctrine of the State of Delaware; provided, however, that, in the event that the Court of Chancery of the State of Delaware lacks subject matter jurisdiction over any such action or proceeding, the sole and exclusive forum for such action or proceeding shall be another state or federal court located within the State of Delaware, in each such case, unless the Court of Chancery (or such other state or federal court located within the State of Delaware, as applicable) has dismissed a prior action by the same plaintiff asserting the same claims because such court lacked personal jurisdiction over an indispensable party named as a defendant therein.
Biggest changeOur amended and restated certificate of incorporation provides that, unless we consent in writing to the selection of an alternative forum, the Court of Chancery of the State of Delaware shall be the sole and exclusive forum for most actions relating to the Company, our current or former directors, officers, stockholders, employees or agents to us or our stockholders.
Interest rates and changes in rates could materially adversely affect our business, results of operations and financial condition. Rising interest rates generally reduce the volume of new mortgage originations and refinances. A decline in the volume of new or refinance mortgage originations would have an adverse effect on our NIW, which may in turn decrease our earned premiums.
Changes in interest rates could materially adversely affect our business, results of operations and financial condition. Rising interest rates generally reduce the volume of new mortgage originations and refinances. A decline in the volume of new or refinance mortgage originations would have an adverse effect on our NIW, which may in turn decrease our earned premiums.
FHFA contemplates that the compliance dates for the PCCBA and the PLBA will be the date of termination of the conservatorship of a GSE. The Enterprise Capital Framework’s Advanced Approaches requirements will be delayed until a compliance date provided by a transition order applicable to such GSE.
FHFA contemplates that the compliance dates for the PCCBA and the PLBA will be the date of termination of the conservatorship of a GSE. The Enterprise Capital Framework’s Advanced Approaches requirements will be delayed until a compliance date provided by a transition order applicable to such GSE.
Despite the implementation of security controls and back-up measures, our computer systems and those of our customers and third-party service providers have been and may be in the future vulnerable to system failures, physical or electronic intrusions, computer malware or other attacks, programming errors and similar disruptive problems.
Despite the implementation of security controls and back-up measures, our computer systems and those of our customers and third-party service providers have been and may in the future be vulnerable to system failures, physical or electronic intrusions, computer malware or other attacks, programming errors and similar disruptive problems.
As a result, the actual claim payments we make may materially differ from the amount of our corresponding loss reserves. • If the models used in our business are inaccurate or there are differences and/or variability in loss development compared to our model estimates and actuarial assumptions, it could have a material adverse effect on our business, results of operations and financial condition. • Competition within the mortgage insurance industry could result in the loss of market share, loss of customers, lower premiums, wider credit guidelines and other changes that could have a material adverse effect on our business, results of operations and financial condition. • Changes to the charters or practices of the GSEs, including actions or decisions to decrease or discontinue the use of mortgage insurance, could adversely affect our business, results of operations and financial condition. • The amount of mortgage insurance we write could decline significantly if alternatives to private mortgage insurance are used or lower coverage levels of mortgage insurance are selected. • Changes in the composition of our business or undue concentration by customer or geographic region may adversely affect us by increasing our exposure to loss of business or adverse performance of a small segment of our portfolio. • Our risk management programs may not be effective in identifying or adequate in controlling or mitigating the risks we face. • Interest rates and changes in rates could materially adversely affect our business, results of operations and financial condition. • We may be unable to maintain or increase the capital needed in our business in a timely manner, on anticipated terms or at all, including through improved business performance, CRT transactions, securities offerings or otherwise, in each case as and when required. • CRT transactions may not be available, affordable or adequate to protect us against losses. • Adverse rating agency actions may result in a loss of business and adversely affect our business, results of operations and financial condition. • If we are unable to effectively manage risks in our investment portfolio, it could adversely affect our business, results of operations and financial condition. • If servicers fail to adhere to appropriate servicing standards or experience disruptions to their businesses, our losses could increase. • Our delegated underwriting program may subject our mortgage insurance business to unanticipated claims. • The premiums we agree to charge for our mortgage insurance coverage may not adequately compensate us for the risks and costs associated with the coverage we provide. • A decrease in the volume of Low Down Payment Loan originations or an increase in the volume of mortgage insurance cancellations could result in a decline in our revenue. • We collect, process, store, share, disclose and use consumer information and other data, and an actual or perceived failure to protect such information and data or respect users’ privacy could damage our reputation and brand and adversely affect our business, results of operations and financial condition. 29 Risks Relating to Regulatory Matters • Our business is extensively regulated and changes in regulation may reduce our profitability and limit our growth. • Inability to maintain sufficient regulatory capital could result in restrictions or prohibitions on our doing business or impact our financial strength ratings, which could have a material adverse impact on our business, results of operations and financial condition. • Changes in regulations that adversely affect the insurance markets in which we operate could affect our operations significantly and could reduce the demand for our products.
As a result, the actual claim payments we make may materially differ from the amount of our corresponding loss reserves. • If the models used in our business are inaccurate or there are differences and/or variability in loss development compared to our model estimates and actuarial assumptions, it could have a material adverse effect on our business, results of operations and financial condition. • Competition within the mortgage insurance industry could result in the loss of market share, loss of customers, lower premiums, wider credit guidelines and other changes that could have a material adverse effect on our business, results of operations and financial condition. • Changes to the charters or practices of the GSEs, including actions or decisions to decrease or discontinue the use of mortgage insurance, could adversely affect our business, results of operations and financial condition. • The amount of mortgage insurance we write could decline significantly if alternatives to private mortgage insurance are used or lower coverage levels of mortgage insurance are selected. • Changes in the composition of our business or undue concentration by customer or geographic region may adversely affect us by increasing our exposure to loss of business or adverse performance of a small segment of our portfolio. • Our risk management programs may not be effective in identifying or adequate in controlling or mitigating the risks we face. • Changes in interest rates could materially adversely affect our business, results of operations and financial condition. • We may be unable to maintain or increase the capital needed in our business in a timely manner, on anticipated terms or at all, including through improved business performance, CRT transactions, securities offerings or otherwise, in each case as and when required. • CRT transactions may not be available, affordable or adequate to protect us against losses. • Adverse rating agency actions may result in a loss of business and adversely affect our business, results of operations and financial condition. • If we are unable to effectively manage risks in our investment portfolio, it could adversely affect our business, results of operations and financial condition. • If servicers fail to adhere to appropriate servicing standards or experience disruptions to their businesses, our losses could increase. • Our delegated underwriting program may subject our mortgage insurance business to unanticipated claims. • The premiums we agree to charge for our mortgage insurance coverage may not adequately compensate us for the risks and costs associated with the coverage we provide. • A decrease in the volume of Low Down Payment Loan originations or an increase in the volume of mortgage insurance cancellations could result in a decline in our revenue. • We collect, process, store, share, disclose and use consumer information and other data, and an actual or perceived failure to protect such information and data or respect users’ privacy could damage our reputation and brand and adversely affect our business, results of operations and financial condition. 28 Risks Relating to Regulatory Matters • Our business is extensively regulated and changes in regulation may reduce our profitability and limit our growth. • Inability to maintain sufficient regulatory capital could result in restrictions or prohibitions on our doing business or impact our financial strength ratings, which could have a material adverse impact on our business, results of operations and financial condition. • Changes in regulations that adversely affect the insurance markets in which we operate could affect our operations significantly and could reduce the demand for our products.
As a consequence, we depend on the ability of our subsidiaries to pay dividends and make other payments and distributions to us in order to meet our obligations. • Our business could be adversely impacted from deficiencies in our disclosure controls and procedures or internal control over financial reporting. • We may suffer losses in connection with litigation, regulatory proceedings or other actions. • If we are unable to attract, on-board, retain and motivate qualified employees or senior management, our business, results of operations and financial condition may be adversely impacted. • We rely upon third-party vendors who may be unable or unwilling to meet their obligations to us. • Our computer systems may fail or be compromised, and unanticipated problems could materially adversely impact our disaster recovery systems and business continuity plans, which could damage our reputation, impair our ability to conduct business effectively and materially adversely affect our business, results of operations and financial condition. • Risks related to emerging and changing technology, including artificial intelligence, could impact our results of operations or financial condition. • The occurrence of natural or man-made disasters or public health emergencies, including pandemics and disasters caused or exacerbated by climate change, could materially adversely affect our business, results of operations and financial condition. • Our amended and restated certificate of incorporation contains exclusive forum provisions, which could limit our stockholders’ ability to choose the judicial forum for disputes with us or our directors, officers or employees. • No assurance can be given that we will be able to return capital to our shareholders via dividends or share repurchases in the future at current levels or at all. 30 Risks Relating to Our Business If we are unable to continue to meet the requirements mandated by PMIERs, or any additional restrictions which may be imposed on us by the GSEs, we may not be eligible to write new insurance on loans acquired by the GSEs, which would have a material adverse effect on our business, results of operations and financial condition.
As a consequence, we depend on the ability of our subsidiaries to pay dividends and make other payments and distributions to us in order to meet our obligations. • Our business could be adversely impacted from deficiencies in our disclosure controls and procedures or internal control over financial reporting. • We may suffer losses in connection with litigation, regulatory proceedings or other actions. • If we are unable to attract, on-board, retain and motivate qualified employees or senior management, our business, results of operations and financial condition may be adversely impacted. • We rely upon third-party vendors who may be unable or unwilling to meet their obligations to us. • Our computer systems may fail or be compromised, and unanticipated problems could materially adversely impact our disaster recovery systems and business continuity plans, which could damage our reputation, impair our ability to conduct business effectively and materially adversely affect our business, results of operations and financial condition. • Risks related to emerging and changing technology, including artificial intelligence, could impact our results of operations or financial condition. • The occurrence of natural or man-made disasters or public health emergencies, including pandemics and disasters caused or exacerbated by climate change, could materially adversely affect our business, results of operations and financial condition. • Our amended and restated certificate of incorporation contains exclusive forum provisions, which could limit our stockholders’ ability to choose the judicial forum for disputes with us or our directors, officers or employees. • No assurance can be given that we will be able to return capital to our shareholders via dividends or share repurchases in the future at current levels or at all. 29 Risks Relating to Our Business If we are unable to continue to meet the requirements mandated by PMIERs, or any additional restrictions which may be imposed on us by the GSEs, we may not be eligible to write new insurance on loans acquired by the GSEs, which would have a material adverse effect on our business, results of operations and financial condition.
While mortgage insurance does not cover property damage, a natural or man-made 55 disaster or public health emergency could disrupt our computer systems and our ability to conduct or process business (including as a result of widespread absences of our employees) as well as lead to higher delinquency rates as borrowers who are affected by the disaster may be unable to meet their contractual obligations, such as mortgage payments on loans insured under our mortgage insurance coverage.
While mortgage insurance does not cover property damage, a natural or man-made disaster or public health emergency could disrupt our computer systems and our ability to conduct or process business (including as a result of widespread absences of our employees) as well as lead to higher delinquency rates as borrowers who are affected by the disaster may be unable to meet their contractual obligations, such as mortgage payments on loans insured under our mortgage insurance coverage.
Factors that could lead to a decrease in the volume of Low Down Payment Loan originations include, but are not limited to: • an increase in home mortgage interest rates; 42 • limitations on the tax benefits of home ownership and mortgage interest; • implementation of more rigorous mortgage lending regulation, such as under the Dodd-Frank Act; • a decline in economic conditions generally, or in conditions in regional and local economies; • events outside of our control, including natural and man-made disasters and pandemics adversely affecting housing markets and home buying; • the level of consumer confidence, which may be adversely affected by economic instability, war or terrorist events; • an increase in the price of homes relative to income levels; • a lack of housing supply at lower home prices; • adverse population trends, including lower homeownership rates; • high rates of home price appreciation, which for refinancings affect whether refinanced loans have LTV ratios that require mortgage insurance; and • changes in government housing policy encouraging loans to FTHBs.
Factors that could lead to a decrease in the volume of Low Down Payment Loan originations include, but are not limited to: • an increase in home mortgage interest rates; • limitations on the tax benefits of home ownership and mortgage interest; • implementation of more rigorous mortgage lending regulation, such as under the Dodd-Frank Act; 41 • a decline in economic conditions generally, or in conditions in regional and local economies; • events outside of our control, including natural and man-made disasters and pandemics adversely affecting housing markets and home buying; • the level of consumer confidence, which may be adversely affected by economic instability, war or terrorist events; • an increase in the price of homes relative to income levels; • a lack of housing supply at lower home prices; • adverse population trends, including lower homeownership rates; • high rates of home price appreciation, which for refinancings affect whether refinanced loans have LTV ratios that require mortgage insurance; and • changes in government housing policy encouraging loans to FTHBs.
Failure to comply with applicable regulations or to obtain or maintain appropriate authorizations or exemptions 44 under any applicable laws could result in restrictions on our ability to conduct business or engage in activities regulated in one or more jurisdictions in which we operate and could subject us to fines, injunctions and other sanctions that could have a material adverse effect on our business, results of operations and financial condition.
Failure to comply with applicable regulations or to obtain or maintain appropriate authorizations or exemptions under any applicable laws could result in restrictions on our ability to conduct business or engage in activities regulated in one or more jurisdictions in which we operate and could subject us to fines, injunctions and other sanctions that could have a material adverse effect on our business, results of operations and financial condition.
These alternatives include: • originating mortgages that consist of two simultaneous loans, known as “simultaneous seconds,” comprising a first mortgage with an LTV ratio of 80% and a simultaneous second mortgage for the excess portion of the loan, instead of a single mortgage with an LTV ratio of more than 80%; • using government mortgage insurance programs; • holding mortgages in the lenders’ own loan portfolios and self-insuring; • using programs, such as those offered by Fannie Mae and Freddie Mac, requiring lower mortgage insurance coverage levels; • originating and securitizing loans in MBS whose underlying mortgages are not insured with private mortgage insurance, or which are structured so that the risk of default lies with the investor, rather than a private mortgage insurer; and • using risk-sharing insurance programs, credit default swaps or similar instruments, instead of private mortgage insurance, to transfer credit risk on mortgages. 36 If one or more of the alternatives described above, or new alternatives that enter the market, are chosen over private mortgage insurance, our revenues could be adversely impacted.
These alternatives include: • originating mortgages that consist of two simultaneous loans, known as “simultaneous seconds,” comprising a first mortgage with an LTV ratio of 80% and a simultaneous second mortgage for the excess portion of the loan, instead of a single mortgage with an LTV ratio of more than 80%; • using government mortgage insurance programs; • holding mortgages in the lenders’ own loan portfolios and self-insuring; • using programs, such as those offered by Fannie Mae and Freddie Mac, requiring lower mortgage insurance coverage levels; • originating and securitizing loans in MBS whose underlying mortgages are not insured with private mortgage insurance, or which are structured so that the risk of default lies with the investor, rather than a private mortgage insurer; and • using risk-sharing insurance programs, credit default swaps or similar instruments, instead of private mortgage insurance, to transfer credit risk on mortgages. 35 If one or more of the alternatives described above, or new alternatives that enter the market, are chosen over private mortgage insurance, our revenues could be adversely impacted.
Genworth’s high ownership percentage risk may also impact our stock price as price volatility may be greater if the public float and trading volume of shares of our common stock are low. Risks Relating to Taxation Changes in tax laws could have a material adverse effect on our business, cash flows, results of operations or financial condition.
Genworth’s high ownership percentage risk may also impact our stock price as price volatility may be greater if the public float and trading volume of shares of our common stock are low. 49 Risks Relating to Taxation Changes in tax laws could have a material adverse effect on our business, cash flows, results of operations or financial condition.
An adverse change in our RTC ratio or our ability to meet other minimum regulatory requirements could cause rating agencies to downgrade our financial strength ratings, which could have an adverse 46 impact on our ability to write and retain business and could cause regulators to take regulatory or supervisory actions with respect to our business, all of which could have a material adverse effect on our results of operations, financial condition and business.
An adverse change in our RTC ratio or our ability to meet other minimum regulatory requirements could cause rating agencies to downgrade our financial strength ratings, which could have an adverse impact on our ability to write and retain business and could cause regulators to take regulatory or supervisory actions with respect to our business, all of which could have a material adverse effect on our results of operations, financial condition and business.
As a credit enhancement provider in the residential mortgage lending industry, we are also subject to compliance with or otherwise impacted by various federal and state consumer protection and insurance laws, including RESPA, the Fair Housing Act of 1968 (the “Fair Housing Act”), HOPA, FCRA and others.
As a credit enhancement provider in the residential mortgage lending industry, we are also subject to compliance with or otherwise impacted by various federal and state consumer protection and insurance 46 laws, including RESPA, the Fair Housing Act of 1968 (the “Fair Housing Act”), HOPA, FCRA and others.
Further, because laws and regulations can be complex and sometimes inexact, there is also a risk that any particular regulator’s or enforcement authority’s interpretation of a legal, accounting or reserving issue may change over time to our detriment or expose us to different or additional regulatory risks.
Further, because laws and regulations can be complex and sometimes inexact, there is also a risk that any particular regulator’s or enforcement 45 authority’s interpretation of a legal, accounting or reserving issue may change over time to our detriment or expose us to different or additional regulatory risks.
Ownership interests of our directors or officers in Genworth’s common stock, or service of certain of our directors as officers of Genworth or certain of Genworth’s other subsidiaries, may create, or may create the appearance of, conflicts of interest when such director or officer is faced with a decision that could have different implications for the two companies.
Ownership interests of our directors or officers in Genworth’s common stock, or service of certain of our directors as officers of Genworth or certain of Genworth’s other subsidiaries, may generate, or create the appearance of, conflicts of interest when such director or officer is faced with a decision that could have different implications for the two companies.
They also contain terms and provisions that may be more favorable than terms and provisions we might have obtained in arm’s length negotiations with unaffiliated third parties. These operational risks could have a material adverse effect on our business, results of operations and financial condition.
They also contain terms and provisions that may be more favorable than terms and provisions we might have obtained in arm’s length negotiations with unaffiliated 48 third parties. These operational risks could have a material adverse effect on our business, results of operations and financial condition.
If a court were to find the exclusive-forum provision in our amended and restated certificate of incorporation to be inapplicable or unenforceable in an action, we may incur 56 additional costs associated with resolving the dispute in other jurisdictions, which could harm our results of operations.
If a court were to find the exclusive-forum provision in our amended and restated certificate of incorporation to be inapplicable or unenforceable in an action, we may incur additional costs associated with resolving the dispute in other jurisdictions, which could harm our results of operations.
We negotiated these arrangements with Genworth or certain of Genworth’s other 49 subsidiaries in the context of a parent-subsidiary relationship. We cannot ensure that these services will be sustained at the same levels or that we would be able to replace such services in a timely manner or on comparable terms.
We negotiated these arrangements with Genworth or certain of Genworth’s other subsidiaries in the context of a parent-subsidiary relationship. We cannot ensure that these services will be sustained at the same levels or that we would be able to replace such services in a timely manner or on comparable terms.
As a result, Genworth controls all matters requiring a stockholder vote, including: the election of directors; mergers, consolidations and acquisitions; the sale of all or substantially all of our assets and other decisions affecting our capital structure; the amendment of our amended and restated certificate of incorporation and our amended and restated bylaws; and our winding up and dissolution.
As a result, Genworth controls all matters requiring a stockholder vote, including: the election of directors; mergers, consolidations and acquisitions; the sale of all or substantially all of our assets and other decisions affecting our capital structure; the amendment of our amended and restated certificate of incorporation 47 and our amended and restated bylaws; and our winding up and dissolution.
Any material weaknesses in internal control over financial reporting or any other failure to maintain effective disclosure controls and procedures could result in material errors or restatements in our historical financial statements or untimely filings, which could cause investors to lose confidence in our reported financial information, and a decline in our share price.
Any material weaknesses in internal control over financial reporting or failure to maintain effective disclosure controls and procedures could result in material errors or restatements in our historical financial statements or untimely filings, which could cause investors to lose confidence in our reported financial information, and a decline in our share price.
If we cannot offer new technologies or data analytics solutions as quickly as our competitors, or if our competitors develop more cost-effective technologies, data analytics solutions or other product offerings, we could experience a material adverse effect on our operating results, customer relationships, growth and compliance programs.
If we cannot offer new technologies or data analytics solutions as quickly as our competitors, or if 53 our competitors develop more cost-effective technologies, data analytics solutions or other product offerings, we could experience a material adverse effect on our operating results, customer relationships, growth and compliance programs.
As a result, the actual claim payments we make may materially differ from the amount of our corresponding loss reserves. Our practice, consistent with industry practice and SAP applicable to insurance companies, is to establish loss reserves in our consolidated U.S.
As a result, the actual claim payments we make may materially differ from the amount of our corresponding loss reserves. Consistent with industry practice and SAP applicable to insurance companies, we establish loss reserves in our consolidated U.S.
Additionally, in order to comply with new accounting guidance or disclosure requirements from our regulators, we are required to interpret the rules, develop new processes and potentially generate new data, which could expose us to incremental risk.
Additionally, in order to comply with new accounting guidance or disclosure requirements from our regulators, we are required to interpret the rules, develop 51 new processes and potentially generate new data, which could expose us to incremental risk.
See “—If the models used in our business are inaccurate or there are 37 differences and/or variability in loss development compared to our model estimates and actuarial assumptions, it could have a material adverse effect on our business, results of operations and financial condition.” Management of operational, legal, franchise, technology and regulatory risks requires, among other things, methods to appropriately identify all such key risks, systems to record incidents and policies and procedures designed to mitigate, detect, record and address all such risks and occurrences.
See “—If the models used in our business are inaccurate or there are 36 differences and/or variability in loss development compared to our model estimates and actuarial assumptions, it could have a material adverse effect on our business, results of operations and financial condition.” Management of operational, legal, franchise, technology and regulatory risks requires, among other things, methods to appropriately identify all such key risks, systems to record incidents and policies and procedures designed to mitigate, detect, record and address all such risks and occurrences.
In the event we were to cease being a member of the Genworth Consolidated Group, we and Genworth would be subject to the application of the “unified loss rules,” which may require us to pay more income tax in the future.
In the event we were to cease being a member of the Genworth Consolidated Group, we and Genworth would be subject to the application of the “unified loss rules,” which may require us to pay more 50 income tax in the future.
The Enterprise Capital Framework significantly increases capital requirements and reduces capital credit on CRT transactions as compared to the previous framework. The final rule could cause the GSEs 47 to increase their guarantee pricing in order to meet the new capital requirements.
The Enterprise Capital Framework significantly increases capital requirements and reduces capital credit on CRT transactions as compared to the previous framework. The final rule could cause the GSEs to increase their guarantee pricing in order to meet the new capital requirements.
See “Business—Credit Risk Transfer.” The availability and cost of CRT transactions may be impacted by conditions beyond our control, such as general market conditions, changes in regulation, higher rates of unemployment or a significant 39 negative impact on the United States housing market. In the future, we may be unable to obtain new transactions on acceptable terms or at all.
See “Business—Credit Risk Transfer.” The availability and cost of CRT transactions may be impacted by conditions beyond our control, such as general market conditions, changes in regulation, higher rates of unemployment or a significant 38 negative impact on the United States housing market. In the future, we may be unable to obtain new transactions on acceptable terms or at all.
Our ability to return capital to our shareholders is dependent on our business results and the macroeconomic environment and may be materially and adversely affected by the risk factors discussed herein.
This ability to return capital to our shareholders is dependent on our business results and the macroeconomic environment and may be materially and adversely affected by the risk factors discussed herein.
The GSEs may modify or change their interpretation of terms they require us to include in our mortgage insurance coverage for loans purchased by them, requiring us to modify our terms of coverage or operational procedures to remain an approved insurer, and such changes could have a material adverse impact on our business, results of operations and financial 31 condition.
The GSEs may modify or change their interpretation of terms they require us to include in our mortgage insurance coverage for loans purchased by them, requiring us to modify our terms of coverage or operational procedures to remain an approved insurer, and such changes could have a material adverse impact on our business, results of operations and financial 30 condition.
Income from our investment portfolio is a source of cash to support our operations and make claims payments. If we or our investment managers improperly structure our investments to meet those future 40 liabilities or we have unexpected losses, including losses resulting from the forced liquidation of investments before their maturity, we may be unable to meet those obligations.
Income from our investment portfolio is a source of cash to support our operations and make claims payments. If we or our investment managers improperly structure our investments to meet those future 39 liabilities or we have unexpected losses, including losses resulting from the forced liquidation of investments before their maturity, we may be unable to meet those obligations.
High 41 delinquency rates could also strain the resources of servicers, reducing their ability to undertake mitigation efforts that would help limit losses. Furthermore, we have delegated to the GSEs, which have in turn delegated to most of their servicers, the authority to accept modifications, short sales and deeds-in-lieu of foreclosure on loans we insure.
High delinquency rates could also strain the resources of servicers, reducing their ability to undertake mitigation efforts that would help limit losses. 40 Furthermore, we have delegated to the GSEs, which have in turn delegated to most of their servicers, the authority to accept modifications, short sales and deeds-in-lieu of foreclosure on loans we insure.
These risks are not exclusive, and additional risks to which we are subject include, but are not limited to, the factors mentioned under “Cautionary Note Regarding Forward-Looking Statements” and the risks of our businesses described elsewhere in this Annual Report on Form 10-K for the year ended December 31, 2024.
These risks are not exclusive, and additional risks to which we are subject include, but are not limited to, the factors mentioned under “Cautionary Note Regarding Forward-Looking Statements” and the risks of our businesses described elsewhere in this Annual Report on Form 10-K for the year ended December 31, 2025.
GAAP financial statements based on claim rates and severity for loans that servicers have reported to us as being in default, which is typically after the second 32 missed payment. We also establish incurred but not reported (“IBNR”) reserves for estimated losses incurred on loans in default that have not yet been reported to us by servicers.
GAAP financial statements based on claim rates and severity for loans that servicers have reported to us as being in default, which is typically after the second missed payment. 31 We also establish incurred but not reported (“IBNR”) reserves for estimated losses incurred on loans in default that have not yet been reported to us by servicers.
If we are unable to compete effectively against our competitors and attract and retain our target customers, it could adversely impact our financial condition, results of operations and ability to grow our business. 34 Changes to the charters or practices of the GSEs, including actions or decisions to decrease or discontinue the use of mortgage insurance, could adversely affect our business, results of operations and financial condition.
If we are unable to compete effectively against our competitors and attract and retain our target customers, it could adversely impact our financial condition, results of operations and ability to grow our business. 33 Changes to the charters or practices of the GSEs, including actions or decisions to decrease or discontinue the use of mortgage insurance, could adversely affect our business, results of operations and financial condition.
Natural or man-made disasters or pandemics or public health emergencies could also disrupt the operations of our counterparties and third-party suppliers or result in increased prices for the products and services they provide to us, which could lead to increased reinsurance rates, less favorable terms and conditions and reduced availability of reinsurance.
Natural or man-made disasters or pandemics or public health emergencies could also disrupt the operations of our counterparties and third-party suppliers or result in increased prices for the products and services they provide to us. This could also lead to increased reinsurance rates, less favorable terms and conditions and reduced availability of reinsurance.
The limit on the number of mortgages with two or more risk factors was based on the market size at the time. While 35 we do not expect any material impact to the private mortgage market, changes in the provisions or enforcement of this rule could impact our results of operations.
The limit on the number of mortgages with two or more risk factors was based on the market size at the time. While 34 we do not expect any material impact to the private mortgage market, changes in the provisions or enforcement of this rule could impact our results of operations.
In addition, insurance regulators may prohibit the payment of dividends and distributions, or other payments by the insurance subsidiaries (such as a payment under an agreement or for employee or other services, including expense reimbursements) if they determine that such payment could be adverse to policyholders.
Insurance regulators may prohibit the payment of dividends and distributions, or other payments by the insurance subsidiaries (such as a payment under an agreement or for employee or other services, including expense reimbursements) if they determine that such payment could be adverse to policyholders.
Lower 38 primary persistency rates can result in reduced IIF and earned premiums, which could have a significant adverse impact on our results of operations. In addition, interest rate fluctuations could also have an adverse effect on the results of our investment portfolio.
Lower 37 primary persistency rates can result in reduced IIF and earned premiums, which could have a significant adverse impact on our results of operations. In addition, interest rate fluctuations could also have an adverse effect on the results of our investment portfolio.
Recent home price appreciation coupled with high interest rates has placed pressure on housing affordability. The pace of existing single-family home sales remains depressed as homeowners are reluctant to sell their house and pay significantly higher mortgage rates for a new one. Should home values decline, we could experience a higher frequency and severity of defaults.
Recent home price appreciation coupled with high interest rates has placed pressure on housing affordability. The pace of existing single-family home sales remains slow as homeowners are reluctant to sell their house and pay higher mortgage rates for a new one. Should home values decline, we could experience a higher frequency and severity of defaults.
The limitations of our models may be material 33 and could lead us to make wrong or sub-optimal decisions in aspects of our business, which could have a material adverse effect on our business, results of operations and financial condition.
The limitations of our models may be material and could lead us to 32 make wrong or sub-optimal decisions in aspects of our business, which could have a material adverse effect on our business, results of operations and financial condition.
The statutory capital adequacy ratio for our U.S. mortgage insurers is known as the RTC ratio, of which the numerator consists of RIF and the denominator consists of the sum of (i) statutory surplus and (ii) the statutory contingency reserve.
The statutory capital adequacy ratio for our U.S. mortgage insurers is known as the RTC ratio, of which the numerator consists of adjusted RIF and the denominator consists of the sum of 44 (i) statutory surplus and (ii) the statutory contingency reserve.
See “—Genworth’s continued ownership of at least 80% of our common stock may limit our ability to raise additional capital by issuing common stock to third parties.” As a result, no assurance can be given that we will be able to continue to pay dividends to our shareholders, repurchase our common stock, or return capital through other means, in the future or that the level of any future return of capital will achieve a market yield or increase or even be maintained over time, any of which could materially and adversely affect the market price of our common stock.
See “—Genworth’s continued ownership of at least 80% of our common stock may limit our ability to raise additional capital by issuing common stock to third parties.” As a result, no assurance can be given that we will be able to continue to return capital to our shareholders in the future or that the level of any future return of capital will achieve a market yield or increase or even be maintained over time, any of which could materially and adversely affect the market price of our common stock.
As a result, we are jointly and severally liable for the U.S. federal income taxes owed by the group for periods in which we are a member of the group.
We are currently a member of the Genworth Consolidated Group. As a result, we are jointly and severally liable for the U.S. federal income taxes owed by the group for periods in which we are a member of the group.
The increased use of algorithms, artificial intelligence and data and analytics in the industry may also lead to additional regulatory scrutiny related to other matters such as discrimination in pricing and underwriting, data privacy and access to insurance.
The increased use of risk-based pricing systems, artificial intelligence and data and analytics in the industry may also lead to additional regulatory scrutiny related to other matters such as discrimination in pricing and underwriting, data privacy and access to insurance.
Increased regulatory scrutiny and any resulting investigations or legal proceedings could result in new legal precedents and industry-wide regulations or practices that could have a material adverse effect on our 45 reputation, business, results of operations and financial condition. We cannot predict the ultimate outcomes of any future investigations, regulatory actions or legal proceedings.
Increased regulatory scrutiny and any resulting investigations or legal proceedings could result in new legal precedents and industry-wide regulations or practices. We cannot predict the ultimate outcomes of any future investigations, regulatory actions or legal proceedings. Any of the changes outlined above could have a material adverse effect on our business, results of operations and financial condition.
Starting January 1, 2025, the CIT imposed a new 15% corporate income tax on in-scope entities that are resident in Bermuda or that have a Bermuda permanent establishment, without regard to any assurances that had previously been given pursuant to the Exempted Undertakings Tax Protection Act 1966.
Effective January 1, 2025, the Bermuda Corporate Income Tax Act of 2023 (“CIT”) imposed a new 15% corporate income tax on in-scope entities that are resident in Bermuda or have a Bermuda permanent establishment, without regard to any assurances that had previously been given pursuant to the Exempted Undertakings Tax Protection Act 1966.
In the current period of elevated interest rates, the market value of our lower yielding instruments has declined, driving substantial unrealized losses in our portfolio. While we intend to hold these securities until maturity so as to realize their book value, pressure to sell securities in an unrealized loss position could drive realized losses and impact future earnings.
In periods of elevated interest rates, the market value of lower yielding instruments declines, driving substantial unrealized losses in our portfolio. While we intend to hold securities in an unrealized loss position until maturity so as to realize their book value, pressure to sell securities in an unrealized loss position could drive realized losses and impact future earnings.
We retain confidential customer information, proprietary information and other data in our information systems, and our information systems may be vulnerable to cybersecurity incidents, such as attacks by malicious actors or breaches due to human error, malfeasance, or other cybersecurity incidents.
We retain confidential customer information, proprietary information and other data in our information systems, and our information systems may be vulnerable to cybersecurity incidents, such as attacks by malicious actors or breaches due to human error, malfeasance, the use of artificial intelligence, or other cybersecurity incidents.
We believe the principal competitive factors in the sale of our products are price, reputation, customer relationships, financial strength ratings and service. There are currently six active mortgage insurers in the United States, including us. Price remains a leading competitive driver.
We believe the principal competitive factors in the sale of our products are price, reputation, customer relationships, financial strength ratings and service. There are currently six active mortgage insurers in the United States, including us, though additional entrants into the market are possible. Price remains a leading competitive driver.
Our investments and investment policies are subject to state insurance laws, which results in our portfolio being predominantly limited to highly rated fixed maturity securities. Despite this, our investment portfolio is subject to credit risks that could lead to realized losses. As interest rates have risen, this has led to a significant increase in unrealized losses in our investment portfolio.
Our investments and investment policies are subject to state insurance laws, which results in our portfolio being predominantly limited to highly rated fixed maturity securities. Despite this, our investment portfolio is subject to credit risks that could lead to realized losses. Rising interest rates can lead to a significant increase in unrealized losses in our investment portfolio.
Insurance regulatory authorities have broad administrative powers, which include, but are not limited to: • licensing companies and agents to transact business; • regulating certain premium rates; • reviewing and approving policy forms; • regulating discrimination in pricing, coverage terms and unfair trade and claims practices, including payment of inducements; • establishing and revising statutory capital and reserve requirements and solvency standards; • evaluating enterprise risk to an insurance company; • approving changes in control of insurance companies; • restricting the payment of dividends and other transactions between affiliates; • regulating the types, amounts and valuation of investments; and • restricting, pursuant to state monoline restrictions, the types of insurance products that may be offered.
In addition, the nature and extent of regulation could materially change, which may result in additional costs associated with compliance. 43 Insurance regulatory authorities have broad administrative powers, which include, but are not limited to: • licensing companies and agents to transact business; • regulating certain premium rates; • reviewing and approving policy forms; • regulating discrimination in pricing, coverage terms and unfair trade and claims practices, including payment of inducements; • establishing and revising statutory capital and reserve requirements and solvency standards; • evaluating enterprise risk to an insurance company; • approving changes in control of insurance companies; • restricting the payment of dividends and other transactions between affiliates; • regulating the types, amounts and valuation of investments; and • restricting, pursuant to state monoline restrictions, the types of insurance products that may be offered.
In 2024, our largest customer accounted for approximately 20% of our total NIW and 11% of total revenues. Our top five customers generated approximately 34% of our NIW in 2024. We cannot be certain that any loss of business from significant customers, or any single customer, would be replaced by business from other customers, existing or new.
In 2025, our largest customer accounted for approximately 22% of our total NIW and 12% of total revenues. Our top five customers generated approximately 33% of our NIW in 2025. We cannot be certain that any loss of business from significant customers, or any single customer, would be replaced by business from other customers, existing or new.
While we have the intent and ability to hold securities until maturity, changing conditions requiring the sale of these investments and recognition of losses may occur. We report fixed maturity securities at fair value on our consolidated balance sheets. These securities represent the majority of our total cash, cash equivalents, restricted cash and invested assets.
While we have the intent and ability to hold securities until maturity, changing conditions could necessitate the sale of certain investments, triggering realized losses. We report fixed maturity securities at fair value on our consolidated balance sheets. These securities represent the majority of our total cash, cash equivalents, restricted cash and invested assets.
Because of their current or former positions with Genworth or its other subsidiaries, these directors, as well as a number of our officers, own amounts of Genworth’s common stock and options to purchase Genworth’s common stock.
Because of their current or former positions with Genworth or its other subsidiaries, these directors own amounts of Genworth’s common stock and options to purchase Genworth’s common stock.
Genworth’s challenges in its long-term care insurance business, or other financial or operational difficulties, may also be attributed to us by investors and may have an adverse effect on the perception of our common stock as an investment.
Genworth’s strategic challenges, or other financial or operational difficulties, may also be attributed to us by investors and may have an adverse effect on the perception of our common stock as an investment.
Dividends from our subsidiaries and permitted payments to us under arrangements with our 52 subsidiaries are our principal sources of cash to meet our obligations. These obligations include operating expenses and interest and principal on current and any future borrowings.
Dividends or other permitted payments from our subsidiaries are our principal sources of cash to meet our obligations. These obligations include operating expenses and interest and principal on current and any future borrowings.
Specifically, such competitive moves could result in a loss of customers, require us to lower premiums, adopt riskier credit guidelines or implement other changes that could lower our revenues, increase the risk of the loans we insure or increase our expenses.
Specifically, such competitive moves could result in a loss of customers, require us to lower premiums, adopt riskier credit guidelines or implement other changes that could lower our revenues, increase the risk of the loans we insure or increase our expenses. These impacts could also be exacerbated by additional mortgage insurance entrants.
Should we exceed required RTC levels in the future, we would seek required regulatory and GSE forbearance and approvals or seek approval for the utilization of alternative insurance vehicles. However, there can be no assurance if, and on what terms, such forbearance and approvals may be obtained. Enact Re could suffer similar restrictions if it breaches Bermudian capital requirements.
Should we exceed required RTC levels in the future, we would seek required regulatory and GSE forbearance and approvals or seek approval for the utilization of alternative insurance vehicles. However, there can be no assurance if, and on what terms, such forbearance and approvals may be obtained.
See “—The occurrence of natural or man-made disasters or public health emergencies, including pandemics and disasters caused or exacerbated by climate change, could materially adversely affect our business, results of operations and financial condition.” Unanticipated problems with, or failures of, our disaster recovery systems and business continuity plans could have a material adverse impact on our ability to conduct business and on our results of operations and financial condition.
See “—The occurrence of natural or man-made disasters or public health emergencies, including pandemics and disasters caused or exacerbated by climate change, could materially adversely affect our business, results of operations and financial condition.” This could also lead to unanticipated problems with, or failures of, our disaster recovery systems and business continuity.
We enter into agreements with our customers that commit us to insure loans made by them using our pre-established guidelines for delegated underwriting. Delegated underwriting represented approximately 71% and 70% of our total NIW by loan count for the years ended December 31, 2024 and 2023, respectively.
Our delegated underwriting program may subject our mortgage insurance business to unanticipated claims. We enter into agreements with our customers that commit us to insure loans made by them using our pre-established guidelines for delegated underwriting. Delegated underwriting represented approximately 73% and 71% of our total NIW by loan count for the years ended December 31, 2025 and 2024, respectively.
No assurance can be given that we will be able to return capital to our shareholders via dividends or share repurchases in the future at current levels or at all.
No assurance can be given that we will be able to return capital to our shareholders via dividends or share repurchases in the future at current levels or at all. We typically return capital to shareholders through our quarterly dividend and repurchases of our common stock.
Significant, sustained failures by large servicers or other disruptions in the servicing of mortgage loans may damage our reputation, result in a loss of customer business, subject us to additional regulatory scrutiny and could have a material adverse effect on our business, results of operations and financial condition.
Significant, sustained failures by large servicers or other disruptions in the servicing of mortgage loans may damage our reputation, result in a loss of customer business, and subject us to additional regulatory scrutiny.
In addition, if any of our models contain programming or other errors, are ineffective, use data provided by third parties that is incorrect, or if we are unable to obtain relevant data from third parties, our processes could be negatively affected.
Proposals like this could limit comparability to historical data used in our models and lead to inaccurate results. In addition, if any of our models contain programming or other errors, are ineffective, use data provided by third parties that is incorrect, or if we are unable to obtain relevant data from third parties, our processes could be negatively affected.
Fannie Mae, Freddie Mac and many other mortgage investors generally permit a borrower to ask the loan servicer to cancel the borrower’s obligation to pay for mortgage insurance when the principal amount of the mortgage falls below 80% of the home’s value.
The length of time insurance remains in-force is an important determinant of our mortgage insurance revenues. Fannie Mae, Freddie Mac and many other mortgage investors generally permit a borrower to ask the loan servicer to cancel the borrower’s obligation to pay for mortgage insurance when the principal amount of the mortgage falls below 80% of the home’s value.
While management continually reviews the effectiveness of our disclosure controls and procedures and internal control over financial reporting, there can be no guarantee that our internal control over financial reporting will be effective in fully accomplishing our control objectives.
The design and effectiveness of our disclosure controls and procedures or internal control over financial reporting may not prevent all errors, misstatements or misrepresentations. While management continually reviews the effectiveness of internal controls, there can be no guarantee that we will be effective in fully accomplishing our control objectives.
This impact is offset by higher persistency on our existing insured loans since the prevailing market interest rate is above the loan interest rate of the majority of our portfolio. This trend continued into 2024, but future rate changes and the impact on our premium and NIW is difficult to predict.
This impact is offset by higher persistency on our existing insured loans since the prevailing market interest rate is above the loan interest rate of the majority of our portfolio. Despite a trend of declining rates during the second half of 2025, future rate changes and the impact on our premium and NIW is difficult to predict.
This concentration of ownership may delay, deter or prevent acts that would be favored by our other stockholders, including a change in control of us. The interests of Genworth may not always coincide with our interests or those of our other stockholders.
This concentration of ownership may delay, deter or prevent acts that would be favored by our other stockholders, including a change in control of the Company.
Inadequate staffing levels or significant transfers of business between servicers could lead to disruptions in the servicing of mortgage loans, which in turn may contribute to a rise in delinquencies and could have a material adverse effect on our business, results of operations and financial condition.
Inadequate staffing levels or significant transfers of business between servicers could lead to disruptions in the servicing of mortgage loans, which in turn may contribute to a rise in delinquencies and reserves.
While Genworth has improved its financial position and made significant progress on its strategic priorities in recent years, it cannot be sure it will be able to successfully execute on its strategic growth initiatives and plans to effectively address its business challenges.
Genworth’s strategy includes advancing its aging care growth initiatives and maintaining the self-sustainability of its legacy insurance companies. While Genworth has improved its financial position and made significant progress on its strategic priorities in recent years, it cannot be sure it will be able to successfully execute on its strategic growth initiatives and plans to effectively address its business challenges.
While it is our goal to safeguard information assets from physical theft and cybersecurity threats, there can be no assurance that our information security will detect and protect information assets from ever-increasing risks.
The failure of these systems for any reason could cause significant interruptions to our operations. While it is our goal to safeguard information assets from physical theft and cybersecurity threats, there can be no assurance that our information security will detect and protect information assets from ever-increasing risks.
Our success is largely dependent on our ability to attract, on-board, retain and motivate qualified employees and senior management. We face intense competition in our industry and local job market for key employees with demonstrated ability, including actuarial, finance, legal, investment, risk, compliance, information technology and other professionals.
We face intense competition in our industry and local job market for key employees with demonstrated ability, including actuarial, finance, legal, investment, risk, compliance, information technology and other professionals. The inability to on-board, attract, retain and motivate the desired workforce, could result in failure to meet our business goals.
Managing key employee succession and retention is also critical to our success. We would be adversely affected if we fail to plan adequately for the succession of our senior management and other key employees.
In addition, we may not be able to meet regulatory requirements relating to required expertise in various professional positions. Managing key employee succession and retention is also critical to our success. We would be adversely affected if we fail to plan adequately for the succession of our senior management and other key employees.
Although we believe these agreements contain commercially reasonable terms, the terms of these agreements may prove not to be in the best interests of our future stockholders or may contain terms less favorable than those we could obtain from third parties.
Although we believe these agreements contain commercially reasonable terms, the terms of these agreements may prove not to be in the best interests of our future stockholders. The terms of our arrangements with Genworth may be more favorable than we will be able to obtain from an unaffiliated third party.
We also have arrangements in place with our customers and other third-party service providers through which we share and receive information.
Our business is highly dependent upon the effective operation of our computer systems. We also have arrangements in place with our customers and other third-party service providers through which we share and receive information.
Our exclusive forum provision does not relieve us of our duties to comply with the federal securities laws and the rules and regulations thereunder, and our stockholders are not deemed to have waived our compliance with these laws, rules and regulations.
Our exclusive forum provision does not relieve us of our duties to comply with the federal securities laws and the rules and regulations thereunder, and our stockholders are not deemed to have waived our compliance with these laws, rules and regulations. 54 Any person or entity purchasing or otherwise acquiring or holding any interest in any of our securities shall be deemed to have notice of and consented to this provision.
Although we have implemented controls and continue to train our employees, a 54 cybersecurity event could still occur that would cause damage to our reputation with our customers and other stakeholders and could have a material adverse effect on our business, results of operations and financial condition. We rely on technologies to provide services to our customers.
Although we have implemented controls and continue to train our employees, a cybersecurity event could still occur that would cause damage to our reputation with our customers and other stakeholders. We rely on technologies to provide services to our customers. Customers require us to provide and service our mortgage insurance products in a secure manner.
Our subsidiaries may not be able to, or may not be permitted by regulators to, pay dividends or make distributions to enable us to meet our obligations. Each subsidiary is a distinct legal entity, which may be subject to legal and contractual restrictions that may also limit our ability to obtain cash from our subsidiaries.
Each subsidiary is a distinct legal entity, which may be subject to legal, regulatory and contractual restrictions that may also limit our ability to obtain cash from our subsidiaries.
These models rely on estimates and projections that are inherently uncertain, may use data and/or assumptions that do not adequately reflect recent experience and relevant industry data, and may not operate as intended.
These models rely on estimates and projections that are inherently uncertain, may use data and/or assumptions that do not adequately reflect recent experience and relevant industry data, and may not operate as intended. The models require accurate data, including financial statements, credit reports or other financial information, much of which comes from third parties.
However, any such event or the risk (or perceived risk) that any such proceedings could involve us, could negatively affect our ratings, our reputation, our business, our liquidity and results of operations, and could therefore have a negative effect on our ability to repay our own indebtedness, including the $750 million aggregate principal amount Senior Notes due 2029 (the “2029 Notes”), or otherwise could have a material adverse effect on our business, results of operations, financial condition, liquidity and prospects. 50 Genworth’s continued ownership of at least 80% of our common stock may limit our ability to raise additional capital by issuing common stock to third parties.
However, any such event or the risk (or perceived risk) that any such proceedings could involve us, could negatively affect our ratings, our reputation, our business, our liquidity and results of operations. Genworth’s continued ownership of at least 80% of our common stock may limit our ability to raise additional capital by issuing common stock to third parties.
Any of the above scenarios could lead to reputational damage, which could result in a material adverse effect on our business, results of operations and financial condition, including the imposition of penalties or being subject to litigation costs.
Any of the above scenarios could lead to reputational damage, which could result in a material adverse effect on our business, results of operations and financial condition, including the imposition of penalties or being subject to litigation costs. 52 Our computer systems may fail or be compromised, and unanticipated problems could materially adversely impact our disaster recovery systems and business continuity plans, which could damage our reputation, impair our ability to conduct business effectively and materially adversely affect our business, results of operations and financial condition.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeThese sessions may cover, among other topics, the information security organization, material risks, technical threats, information technology security infrastructure, patching and vulnerability management, cybersecurity incidents, an annual cybersecurity tabletop exercise and incident preparedness, supplier management, security awareness training, cybersecurity personnel/staffing and a cybersecurity threat assessment. 58
Biggest changeThese sessions may cover, among other topics, the information security organization, material risks, technical threats, information technology security infrastructure, patching and vulnerability management, cybersecurity incidents, an annual cybersecurity tabletop exercise and incident 56 preparedness, supplier management, security awareness training, cybersecurity personnel/staffing and a cybersecurity threat assessment.
Among other things, we perform external and internal risk assessments, penetration testing, vulnerability scanning, secure code development and monthly security awareness training (including phishing awareness tests) for all personnel. The monitoring and surveillance procedures over our key systems and IT environments are performed jointly with Genworth. Potential threats are evaluated, correlated and escalated to the extent appropriate.
Among other things, we perform external and internal risk assessments, penetration testing, vulnerability scanning, secure code development and monthly security awareness training (including phishing awareness tests) for all personnel. The monitoring and surveillance procedures over our key systems and IT environments are performed jointly with Genworth. Potential threats are evaluated, correlated and escalated to the extent 55 appropriate.
In accordance with 57 the plan, we assess, contain and eradicate the threat and notify relevant external parties. We engage with third parties to assist with the research and evaluation, if deemed necessary. We also consider cybersecurity threats with respect to third party service providers.
In accordance with the plan, we assess, contain and eradicate the threat and notify relevant external parties. We engage with third parties to assist with the research and evaluation, if deemed necessary. We also consider cybersecurity threats with respect to third party service providers.
The Chief Information Security Officer has over 19 years of experience in information security, technology audit, and technology operations and includes the design, implementation, and maintenance of greenfield cybersecurity programs for regulated specialty insurance and software-as-a-service companies. The Chief Information Security Officer has a master’s degree in information technology with a specialization in cybersecurity augmented with numerous professional designations.
The Chief Information Security Officer has over 20 years of experience in information security, technology audit, and technology operations and includes the design, implementation, and maintenance of greenfield cybersecurity programs for regulated specialty insurance and software-as-a-service companies. The Chief Information Security Officer has a master’s degree in information technology with a specialization in cybersecurity augmented with numerous professional designations.

Item 2. Properties

Properties — owned and leased real estate

1 edited+0 added−0 removed1 unchanged
Biggest changeWe believe our current facilities are adequate for our current needs and that suitable additional or alternative space will be available as and when needed. Item 3. Legal Proceedings We are not subject to any pending material legal proceedings. Item 4. Mine Safety Disclosures Not applicable. 59 PART II
Biggest changeWe believe our current facilities are adequate for our current needs and that suitable additional or alternative space will be available as and when needed. Item 3. Legal Proceedings We are not subject to any pending material legal proceedings. Item 4. Mine Safety Disclosures Not applicable. 57 PART II

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeIn the second quarter of 2024, the regular quarterly dividend increased to $0.185 per share. In addition to our regular dividends, we paid special cash dividends of $0.71 per share during the fourth quarter of 2023 and $1.12 per share during the fourth quarter of 2022. In February of 2025, we announced our first quarter dividend of $0.185 per share.
Biggest changeWe paid a dividend of $0.16 per share in the first quarter of 2024 and dividends of $0.185 per share in the second, third and fourth quarters of 2024. We paid a dividend of $0.185 per share in the first quarter of 2025 and dividends of $0.21 per share in the second, third and fourth quarters of 2025.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Market for Common Stock Our common stock is listed on the Nasdaq Stock Market under the symbol “ACT.” As of February 24, 2025, we had 5 registered holders of record of our common stock.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Market for Common Stock Our common stock is listed on the Nasdaq Stock Market under the symbol “ACT.” As of February 24, 2026, we had 4 registered holders of record of our common stock.
Subsequent to year end, the Company purchased 591,363 shares at an average price of $32.60 per share through January 31, 2025. 60 Stock Performance Graph The graph below compares the cumulative total stockholder return of an investment in (i) our common shares, (ii) the Russell 2000 Index, (iii) the S&P 500 and (iv) a composite peer group consisting of Essent Group Ltd., MGIC Investment Corporation, NMI Holdings, Inc., and Radian Group Inc, for the period from September 16, 2021 (the date our common shares commenced trading on the Nasdaq Stock Market) through December 31, 2024.
Subsequent to year end, the Company purchased 784,389 shares at an average price of $39.37 per share through January 31, 2026. 58 Stock Performance Graph The graph below compares the cumulative total stockholder return of an investment in (i) our common shares, (ii) the Russell 2000 Index, (iii) the S&P 500 and (iv) a composite peer group consisting of Essent Group Ltd., MGIC Investment Corporation, NMI Holdings, Inc., and Radian Group Inc, for the period from September 16, 2021 (the date our common shares commenced trading on the Nasdaq Stock Market) through December 31, 2025.
September 16, 2021 December 31, 2021 December 31, 2022 December 31, 2023 December 31, 2024 Enact Holdings, Inc. $100.00 $106.61 $132.49 $166.54 $190.95 Russell 2000 $100.00 $100.89 $80.27 $93.86 $104.69 S&P 500 $100.00 $106.94 $87.57 $110.59 $138.26 Peer Group $100.00 $98.97 $90.52 $133.21 $154.79 Dividends During the first quarter of 2022, we announced that our Board of Directors approved the initiation of a dividend program under which the Company intends to pay a quarterly cash dividend.
September 16, 2021 December 31, 2021 December 31, 2022 December 31, 2023 December 31, 2024 December 31, 2025 Enact Holdings, Inc. $100.00 $106.61 $132.49 $166.54 $190.95 $239.06 Russell 2000 $100.00 $100.89 $80.27 $93.86 $104.69 $118.10 S&P 500 $100.00 $106.94 $87.57 $110.59 $138.26 $162.98 Peer Group $100.00 $98.97 $90.52 $133.21 $154.79 $186.20 Dividends The Company has paid a regular quarterly dividend since the second quarter of 2022.
Issuer Purchases of Equity Securities The table below sets forth information regarding repurchases of our common shares during the three months ended December 31, 2024: Period (Dollar amounts in thousands except per share amounts) Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Approximate Dollar Value of Shares that May Yet be Purchased under Plans or Programs (1) October 1 - October 31, 2024 837,777 $ 35.89 837,777 $ 136,741 November 1 - November 30, 2024 844,891 $ 34.06 844,891 $ 107,963 December 1 - December 31, 2024 444,852 $ 33.93 444,852 $ 92,871 Total 2,127,520 $ 34.75 2,127,520 $ 92,871 _______________ (1) On May 1, 2024, the Company announced the authorization of the share repurchase program that allows for the repurchase of up to $250 million of its common shares.
Issuer Purchases of Equity Securities The table below sets forth information regarding repurchases of our common shares during the three months ended December 31, 2025: Period (Dollar amounts in thousands except per share amounts) Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Approximate Dollar Value of Shares that May Yet be Purchased under Plans or Programs (1) October 1 - October 31, 2025 1,158,693 $ 36.19 1,158,693 $ 145,832 November 1 - November 30, 2025 1,090,729 $ 37.37 1,090,729 $ 105,071 December 1 - December 31, 2025 1,114,386 $ 39.47 1,114,386 $ 61,082 Total 3,363,808 $ 37.66 3,363,808 $ 61,082 _______________ (1) On April 30, 2025, we announced the authorization of a share repurchase program that allows for the repurchase of up to $350 million of EHI’s common stock.
See “Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations” for additional information on dividends. Item 6. [Reserved] 61
We have declared a dividend of $0.21 per share to be paid during the first quarter of 2026. We intend to continue to pay regular quarterly cash dividends under the current program. See “Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations” for additional information on dividends. Item 6. [Reserved] 59
Removed
The share repurchase program has no expiration date.
Added
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. The share repurchase programs have no expiration date.
Removed
The inaugural quarterly dividend of $0.14 per share was paid in the second quarter of 2022, followed by payments of regular dividends of $0.14 per share in each quarter through the first quarter of 2023. In the second quarter of 2023, the regular quarterly dividend increased to $0.16 per share.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

133 edited+15 added−29 removed106 unchanged
Biggest changeRIF increased primarily as a result of higher IIF. 78 The following table sets forth IIF and RIF as of the dates indicated: (Amounts in millions) December 31, 2024 December 31, 2023 December 31, 2022 Primary IIF $ 268,825 100 % $ 262,937 100 % $ 248,262 100 % Pool IIF 379 — 436 — 505 — Total IIF $ 269,204 100 % $ 263,373 100 % $ 248,767 100 % Primary RIF $ 69,985 100 % $ 67,529 100 % $ 62,791 100 % Pool RIF 57 — 69 — 79 — Total RIF $ 70,042 100 % $ 67,598 100 % $ 62,870 100 % The following table sets forth primary IIF and primary RIF by origination as of the dates indicated: (Amounts in millions) December 31, 2024 December 31, 2023 December 31, 2022 Purchases IIF $ 243,730 91 % $ 231,526 88 % $ 207,827 84 % Refinances IIF 25,095 9 31,411 12 40,435 16 Total IIF $ 268,825 100 % $ 262,937 100 % $ 248,262 100 % Purchases RIF $ 64,031 91 % $ 60,497 90 % $ 54,165 86 % Refinances RIF 5,954 9 7,032 10 8,626 14 Total RIF $ 69,985 100 % $ 67,529 100 % $ 62,791 100 % The following table sets forth primary IIF and primary RIF by product as of the dates indicated: (Amounts in millions) December 31, 2024 December 31, 2023 December 31, 2022 Monthly IIF $ 241,785 90 % $ 233,651 89 % $ 216,831 87 % Single IIF 25,301 9 27,353 10 29,275 12 Other IIF 1,739 1 1,933 1 2,156 1 Total IIF $ 268,825 100 % $ 262,937 100 % $ 248,262 100 % Monthly RIF $ 64,078 91 % $ 61,083 90 % $ 55,879 89 % Single RIF 5,466 8 5,957 9 6,370 10 Other RIF 441 1 489 1 542 1 Total RIF $ 69,985 100 % $ 67,529 100 % $ 62,791 100 % 79 The following table sets forth primary IIF by policy year as of the dates indicated: (Amounts in millions) December 31, 2024 December 31, 2023 December 31, 2022 2008 and prior $ 4,860 2 % $ 5,621 2 % $ 6,596 3 % 2009 to 2016 5,138 2 8,042 3 11,321 4 2017 3,907 1 5,321 2 6,495 3 2018 4,790 2 5,750 2 6,839 3 2019 11,415 4 13,773 5 16,352 7 2020 34,940 13 44,486 17 55,358 22 2021 57,266 21 70,045 27 81,724 33 2022 53,063 20 59,267 23 63,577 25 2023 45,208 17 50,632 19 — — 2024 48,238 18 — — — — Total $ 268,825 100 % $ 262,937 100 % $ 248,262 100 % The following table sets forth primary RIF by policy year as of the dates indicated: (Amounts in millions) December 31, 2024 December 31, 2023 December 31, 2022 2008 and prior $ 1,256 2 % $ 1,449 2 % $ 1,699 3 % 2009 to 2016 1,332 2 2,129 3 3,022 5 2017 1,036 1 1,403 2 1,708 3 2018 1,233 2 1,476 2 1,736 3 2019 2,984 4 3,544 5 4,143 7 2020 9,553 14 11,697 17 14,158 22 2021 15,043 21 17,846 27 20,418 32 2022 13,476 19 14,907 22 15,907 25 2023 11,719 17 13,078 20 — — 2024 12,353 18 — — — — Total $ 69,985 100 % $ 67,529 100 % $ 62,791 100 % The following table presents the development of primary IIF for the years ended December 31: (Amounts in millions) 2024 2023 2022 Beginning balance $ 262,937 $ 248,262 $ 226,514 NIW 51,002 53,081 66,485 Cancellations, principal repayments and other reductions (1) (45,114) (38,406) (44,737) Ending balance $ 268,825 $ 262,937 $ 248,262 _____________ (1) Includes the estimated amortization of unpaid principal balance of covered loans. 80 The following table sets forth primary IIF by LTV ratio at origination as of the dates indicated: (Amounts in millions) December 31, 2024 December 31, 2023 December 31, 2022 95.01% and above $ 50,318 18 % $ 44,955 17 % $ 39,509 16 % 90.01% to 95.00% 112,362 42 109,227 41 103,618 42 85.01% to 90.00% 79,932 30 77,887 30 72,132 29 85.00% and below 26,213 10 30,868 12 33,003 13 Total $ 268,825 100 % $ 262,937 100 % $ 248,262 100 % The following table sets forth primary RIF by LTV ratio at origination as of the dates indicated: (Amounts in millions) December 31, 2024 December 31, 2023 December 31, 2022 95.01% and above $ 14,428 21 % $ 12,878 19 % $ 11,136 18 % 90.01% to 95.00% 32,686 47 31,781 47 30,079 48 85.01% to 90.00% 19,729 28 19,163 28 17,621 28 85.00% and below 3,142 4 3,707 6 3,955 6 Total $ 69,985 100 % $ 67,529 100 % $ 62,791 100 % The following table sets forth primary IIF by FICO score at origination as of the dates indicated: (Amounts in millions) December 31, 2024 December 31, 2023 December 31, 2022 Over 760 $ 115,554 43 % $ 110,635 42 % $ 102,467 41 % 740-759 43,955 17 43,053 17 40,097 16 720-739 37,717 14 37,020 14 34,916 14 700-719 29,819 11 29,766 11 28,867 12 680-699 21,355 8 21,835 8 21,554 9 660-679 (1) 11,245 4 11,357 4 10,926 4 640-659 6,147 2 6,137 3 6,095 3 620-639 2,461 1 2,504 1 2,630 1 572 — 630 — 710 — Total $ 268,825 100 % $ 262,937 100 % $ 248,262 100 % ______________ (1) Loans with unknown FICO scores are included in the 660-679 category. 81 The following table sets forth primary RIF by FICO score at origination as of the dates indicated: (Amounts in millions) December 31, 2024 December 31, 2023 December 31, 2022 Over 760 $ 29,985 43 % $ 28,363 42 % $ 25,807 41 % 740-759 11,494 17 11,096 17 10,154 16 720-739 9,949 14 9,621 14 8,931 14 700-719 7,746 11 7,623 11 7,317 12 680-699 5,523 8 5,557 8 5,428 9 660-679 (1) 2,924 4 2,908 4 2,767 5 640-659 1,589 2 1,565 3 1,540 2 620-639 629 1 635 1 665 1 146 — 161 — 182 — Total $ 69,985 100 % $ 67,529 100 % $ 62,791 100 % ______________ (1) Loans with unknown FICO scores are included in the 660-679 category.
Biggest changeRIF increased primarily as a result of higher IIF. 75 The following table sets forth IIF and RIF as of the dates indicated: (Amounts in millions) December 31, 2025 December 31, 2024 December 31, 2023 Primary IIF $ 273,147 100 % $ 268,825 100 % $ 262,937 100 % Pool IIF 331 — 379 — 436 — Total IIF $ 273,478 100 % $ 269,204 100 % $ 263,373 100 % Primary RIF $ 71,363 100 % $ 69,985 100 % $ 67,529 100 % Pool RIF 51 — 57 — 69 — Total RIF $ 71,414 100 % $ 70,042 100 % $ 67,598 100 % The following table sets forth primary IIF and primary RIF by origination as of the dates indicated: (Amounts in millions) December 31, 2025 December 31, 2024 December 31, 2023 Purchases IIF $ 249,902 91 % $ 243,730 91 % $ 231,526 88 % Refinances IIF 23,245 9 25,095 9 31,411 12 Total IIF $ 273,147 100 % $ 268,825 100 % $ 262,937 100 % Purchases RIF $ 65,890 92 % $ 64,031 91 % $ 60,497 90 % Refinances RIF 5,473 8 5,954 9 7,032 10 Total RIF $ 71,363 100 % $ 69,985 100 % $ 67,529 100 % The following table sets forth primary IIF and primary RIF by product as of the dates indicated: (Amounts in millions) December 31, 2025 December 31, 2024 December 31, 2023 Monthly IIF $ 247,776 91 % $ 241,785 90 % $ 233,651 89 % Single IIF 23,844 9 25,301 9 27,353 10 Other IIF 1,527 — 1,739 1 1,933 1 Total IIF $ 273,147 100 % $ 268,825 100 % $ 262,937 100 % Monthly RIF $ 65,836 92 % $ 64,078 91 % $ 61,083 90 % Single RIF 5,135 7 5,466 8 5,957 9 Other RIF 392 1 441 1 489 1 Total RIF $ 71,363 100 % $ 69,985 100 % $ 67,529 100 % 76 The following table sets forth primary IIF by policy year as of the dates indicated: (Amounts in millions) December 31, 2025 December 31, 2024 December 31, 2023 2008 and prior $ 4,219 2 % $ 4,860 2 % $ 5,621 2 % 2009 to 2017 6,503 2 9,045 3 13,363 5 2018 3,917 1 4,790 2 5,750 2 2019 9,539 4 11,415 4 13,773 5 2020 28,074 10 34,940 13 44,486 17 2021 45,945 17 57,266 21 70,045 27 2022 46,173 17 53,063 20 59,267 23 2023 38,250 14 45,208 17 50,632 19 2024 42,043 15 48,238 18 — — 2025 48,484 18 — — — — Total $ 273,147 100 % $ 268,825 100 % $ 262,937 100 % The following table sets forth primary RIF by policy year as of the dates indicated: (Amounts in millions) December 31, 2025 December 31, 2024 December 31, 2023 2008 and prior $ 1,092 2 % $ 1,256 2 % $ 1,449 2 % 2009 to 2017 1,680 2 2,368 3 3,532 5 2018 1,010 1 1,233 2 1,476 2 2019 2,499 4 2,984 4 3,544 5 2020 7,739 11 9,553 14 11,697 17 2021 12,482 17 15,043 21 17,846 27 2022 11,884 17 13,476 19 14,907 22 2023 9,967 14 11,719 17 13,078 20 2024 10,812 15 12,353 18 — — 2025 12,198 17 — — — — Total $ 71,363 100 % $ 69,985 100 % $ 67,529 100 % The following table presents the development of primary IIF for the years ended December 31: (Amounts in millions) 2025 2024 2023 Beginning balance $ 268,825 $ 262,937 $ 248,262 NIW 51,506 51,002 53,081 Cancellations, principal repayments and other reductions (1) (47,184) (45,114) (38,406) Ending balance $ 273,147 $ 268,825 $ 262,937 _____________ (1) Includes the estimated amortization of unpaid principal balance of covered loans. 77 The following table sets forth primary IIF by LTV ratio at origination as of the dates indicated: (Amounts in millions) December 31, 2025 December 31, 2024 December 31, 2023 95.01% and above $ 54,221 20 % $ 50,318 18 % $ 44,955 17 % 90.01% to 95.00% 114,315 42 112,362 42 109,227 41 85.01% to 90.00% 78,746 29 79,932 30 77,887 30 85.00% and below 25,865 9 26,213 10 30,868 12 Total $ 273,147 100 % $ 268,825 100 % $ 262,937 100 % The following table sets forth primary RIF by LTV ratio at origination as of the dates indicated: (Amounts in millions) December 31, 2025 December 31, 2024 December 31, 2023 95.01% and above $ 15,608 22 % $ 14,428 21 % $ 12,878 19 % 90.01% to 95.00% 33,260 47 32,686 47 31,781 47 85.01% to 90.00% 19,410 27 19,729 28 19,163 28 85.00% and below 3,085 4 3,142 4 3,707 6 Total $ 71,363 100 % $ 69,985 100 % $ 67,529 100 % The following table sets forth primary IIF by FICO score at origination as of the dates indicated: (Amounts in millions) December 31, 2025 December 31, 2024 December 31, 2023 Over 760 $ 120,093 44 % $ 115,554 43 % $ 110,635 42 % 740-759 44,898 16 43,955 17 43,053 17 720-739 37,897 14 37,717 14 37,020 14 700-719 29,486 11 29,819 11 29,766 11 680-699 20,773 8 21,355 8 21,835 8 660-679 (1) 11,091 4 11,245 4 11,357 4 640-659 5,988 2 6,147 2 6,137 3 620-639 2,398 1 2,461 1 2,504 1 523 — 572 — 630 — Total $ 273,147 100 % $ 268,825 100 % $ 262,937 100 % ______________ (1) Loans with unknown FICO scores are included in the 660-679 category. 78 The following table sets forth primary RIF by FICO score at origination as of the dates indicated: (Amounts in millions) December 31, 2025 December 31, 2024 December 31, 2023 Over 760 $ 31,186 44 % $ 29,985 43 % $ 28,363 42 % 740-759 11,765 16 11,494 17 11,096 17 720-739 10,049 14 9,949 14 9,621 14 700-719 7,727 11 7,746 11 7,623 11 680-699 5,412 8 5,523 8 5,557 8 660-679 (1) 2,913 4 2,924 4 2,908 4 640-659 1,564 2 1,589 2 1,565 3 620-639 615 1 629 1 635 1 132 — 146 — 161 — Total $ 71,363 100 % $ 69,985 100 % $ 67,529 100 % ______________ (1) Loans with unknown FICO scores are included in the 660-679 category.
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.
Credit Quality 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.
In accordance with NCDOI requirements, adjusted RIF excludes delinquent policies.
In accordance with NCDOI requirements, adjusted RIF excludes delinquent policies.
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.
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 63 above historical averages. As a result, the industry is insuring loans from borrowers who should be better positioned to meet their mortgage obligations.
Cancellations of our insurance policies as a result of prepayments and other reductions of IIF, such as rescissions of coverage and claims paid, generally have a negative effect on premiums earned. Persistency Rate and Business Mix The percentage of our IIF that remains insured after taking into account annualized cancellations for the period presented is defined as our persistency rate.
Cancellations of our insurance policies as a result of prepayments and other reductions of IIF, such as rescissions of coverage and claims paid, generally have a negative effect on premiums earned. 62 Persistency Rate and Business Mix The percentage of our IIF that remains insured after taking into account annualized cancellations for the period presented is defined as our persistency rate.
Our investment portfolio primarily consists of a diverse mix of highly rated fixed maturity securities and is designed to achieve the following objectives: • Meet policyholder obligations through maintenance of sufficient liquidity; • Preserve capital; • Generate investment income; • Maximize statutory capital; and • Increase shareholder value, among other objectives. 89 To achieve our portfolio objectives, our investment strategy focuses primarily on: • Our business outlook, including current and expected future investment conditions; • Investment selection based on fundamental, research-driven strategies; • Diversification across a mix of fixed income, low-volatility investments while actively pursuing strategies to enhance yield; • Regular evaluation and optimization of our asset class mix; • Continuous monitoring of investment quality, duration and liquidity; • Regulatory capital requirements; and • Restriction of investments correlated to the residential mortgage market.
Our investment portfolio primarily consists of a diverse mix of highly rated fixed maturity securities and is designed to achieve the following objectives: • Meet policyholder obligations through maintenance of sufficient liquidity; • Preserve capital; • Generate investment income; • Maximize statutory capital; and • Increase shareholder value, among other objectives. 86 To achieve our portfolio objectives, our investment strategy focuses primarily on: • Our business outlook, including current and expected future investment conditions; • Investment selection based on fundamental, research-driven strategies; • Diversification across a mix of fixed income, low-volatility investments while actively pursuing strategies to enhance yield; • Regular evaluation and optimization of our asset class mix; • Continuous monitoring of investment quality, duration and liquidity; • Regulatory capital requirements; and • Restriction of investments correlated to the residential mortgage market.
The statutory contingency reserve is reported as a liability on the statutory balance sheet. 93 Certain states have insurance laws or regulations that require a mortgage insurer to maintain a minimum amount of statutory capital (including the statutory contingency reserve) relative to its level of RIF in order for the mortgage insurer to continue to write new business.
The statutory contingency reserve is reported as a liability on the statutory balance sheet. Certain states have insurance laws or regulations that require a mortgage insurer to maintain a minimum amount of statutory capital (including the statutory contingency reserve) relative to its level of RIF in order for the mortgage insurer to continue to write new business.
Allowance for Credit Losses on Available-For-Sale Securities 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.
Allowance for Credit Losses on Available-For-Sale Securities 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 66 on the same methodologies and assumptions used in our valuation of fixed maturity securities.
Credit Risk Transfer 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.
Credit Risk Transfer 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 64 portfolio and provides capital relief under PMIERs.
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 65 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 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 67 the mix of exposures, loss mitigation activities and claim settlement practices.
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.
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.
The following table presents the weighted average mortgage interest rate on outstanding primary IIF as of December 31, 2024, excluding our run-off business. Prepayment speeds may be affected by changes in interest rates, among other factors. An increasing interest rate environment generally will reduce refinancing activity and result in lower prepayments.
The following table presents the weighted average mortgage interest rate on outstanding primary IIF as of December 31, 2025, excluding our run-off business. Prepayment speeds may be affected by changes in interest rates, among other factors. An increasing interest rate environment generally will reduce refinancing activity and result in lower prepayments.
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. There is no recorded allowance for credit losses on available-for-sale securities as of December 31, 2024.
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. There is no recorded allowance for credit losses on available-for-sale securities as of December 31, 2025.
Changes in market conditions could cause a decline in mortgage originations, mortgage insurance penetration rates, persistency and our market share, all of which could impact new insurance written. For example, a decline in primary new insurance written of $1.0 billion would result in a reduction in earned premiums of approximately $4 million in the first full year.
Changes in market conditions could cause a decline in mortgage originations, mortgage insurance penetration rates, persistency and our market share, all of which could impact new insurance written. For example, a decline in primary new insurance written of $1.0 billion would result in a reduction in earned premiums of approximately $3 million in the first full year.
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 62 to us as new delinquencies when the borrower fails to make two consecutive monthly mortgage payments.
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 60 payments.
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations The following discussion and analysis of our consolidated financial condition and results of operations should be read in conjunction with our audited consolidated financial statements and related notes for the years ended December 31, 2024, 2023 and 2022 included in Item 8 of this Annual Report.
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations The following discussion and analysis of our consolidated financial condition and results of operations should be read in conjunction with our audited consolidated financial statements and related notes for the years ended December 31, 2025, 2024 and 2023 included in Item 8 of this Annual Report.
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. Therefore, these items are excluded from our calculation of adjusted operating income.
Trends in the profitability of our fundamental operating activities can be more clearly identified without the fluctuations of these realized gains and losses. We do not view them as indicative of our fundamental operating activities. Therefore, these items are excluded from our calculation of adjusted operating income.
Net cash provided by operating activities increased largely due to higher net investment income and premiums. 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 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.
The table 84 below sets forth our primary delinquency rates for the ten largest states by our primary RIF as of December 31, 2024: Percent of RIF Percent of direct primary case reserves Delinquency rate By state: California 12 % 12 % 2.53 % Texas 9 9 2.64 % Florida (1) 8 12 3.67 % New York (1) 5 10 3.30 % Illinois (1) 4 6 2.96 % Arizona 4 3 2.35 % Michigan 4 3 2.14 % Georgia 3 4 3.02 % North Carolina 3 2 2.14 % Pennsylvania 3 3 2.17 % All other states (2) 45 36 2.10 % Total 100 % 100 % 2.45 % ______________ (1) Jurisdiction predominantly uses a judicial foreclosure process, which generally increases the amount of time it takes for a foreclosure to be completed.
(2) Includes the District of Columbia. 81 The table below sets forth our primary delinquency rates for the ten largest states by our primary RIF as of December 31, 2024: Percent of RIF Percent of direct primary case reserves Delinquency rate By state: California 12 % 12 % 2.53 % Texas 9 9 2.64 % Florida (1) 8 12 3.67 % New York (1) 5 10 3.30 % Illinois (1) 4 6 2.96 % Arizona 4 3 2.35 % Michigan 4 3 2.14 % Georgia 3 4 3.02 % North Carolina 3 2 2.14 % Pennsylvania 3 3 2.17 % All other states (2) 45 36 2.10 % Total 100 % 100 % 2.45 % ______________ (1) Jurisdiction predominantly uses a judicial foreclosure process, which generally increases the amount of time it takes for a foreclosure to be completed.
The 2029 Notes contain customary events of default which, subject to certain notice and cure conditions, can result in the 91 acceleration of the principal and accrued interest on the outstanding notes if we breach the terms of the indenture.
The 2029 Notes contain customary events of default which, subject to certain notice and cure conditions, can result in the 88 acceleration of the principal and accrued interest on the outstanding notes if we breach the terms of the indenture.
Loss adjustment expenses include costs incurred in the claim settlement process such as legal fees and costs to record, process and adjust claims. Consistent with U.S. GAAP and industry accounting practices, we do not establish loss reserves for future claims on insured loans that are not in default or believed to be in default.
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. GAAP and industry accounting practices, we do not establish loss reserves for future claims on insured loans that are not in default or believed to be in default.
Refer to Note 2 in our audited consolidated financial statements for the years ended December 31, 2024, 2023 and 2022 for a discussion of recently adopted and not yet adopted accounting standards.
Refer to Note 2 in our audited consolidated financial statements for the years ended December 31, 2025, 2024 and 2023 for a discussion of recently adopted and not yet adopted accounting standards.
We also offer mortgage-related insurance and reinsurance through 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.
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.
Likewise, a change of 3 percentage points, or a change of 3%, in the average severity rate would change the gross loss reserve amount for such quarter by approximately $15 million.
Likewise, a change of 3 percentage points, or a change of 3%, in the average severity rate would change the gross loss reserve amount for such quarter by approximately $16 million.
We have no derivative financial instruments in our investment portfolio. As of December 31, 2024, 2023 and 2022, 99%, 98% and 98% of our investment portfolio was rated investment grade, respectively.
We have no derivative financial instruments in our investment portfolio. As of December 31, 2025, 2024 and 2023, 99%, 99% and 98% of our investment portfolio was rated investment grade, respectively.
Pre-foreclosure sales, acquisitions and other early workout and claim administration actions help to reduce overall claim severity. Our average primary mortgage insurance claim severity was 99%, 97% and 94% for the years ended December 31, 2024, 2023 and 2022, respectively. The average claim severities have been impacted by low claim volumes and lifetime home price appreciation.
Pre-foreclosure sales, acquisitions and other early workout and claim administration actions help to reduce overall claim severity. Our average primary mortgage insurance claim severity was 96%, 99% and 97% for the years ended December 31, 2025, 2024 and 2023, respectively. The average claim severities have been impacted by low claim volumes and lifetime home price appreciation.
Detailed discussions of our consolidated results of operations for the year ended December 31, 2022, including the year-over-year comparisons between 2023 and 2022, that are not included in this Annual Report on Form 10-K can be found in Item 7 in our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 29, 2024.
Detailed discussions of our consolidated results of operations for the year ended December 31, 2023, including the year-over-year comparisons between 2024 and 2023, that are not included in this Annual Report on Form 10-K can be found in Item 7 in our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on February 28, 2025.
For example, based on our actual experience during the three-year period immediately preceding December 31, 2024, a change of 4 percentage points, or 15%, in the average claim rate would change the gross loss reserve amount for such quarter by approximately $72 million.
For example, based on our actual experience during the three-year period immediately preceding December 31, 2025, a change of 4 percentage points, or 15%, in the average claim rate would change the gross loss reserve amount for such quarter by approximately $79 million.
EMICO’s risk-to-capital ratio under the current regulatory framework as established under North Carolina law and enforced by the NCDOI, EMICO’s domestic insurance regulator, was approximately 10.5:1 as of December 31, 2024, and 11.6:1 as of December 31, 2023. EMICO’s risk-to-capital ratio remains below the NCDOI’s maximum risk-to-capital ratio of 25:1.
EMICO’s risk-to-capital ratio under the current regulatory framework as established under North Carolina law and enforced by the NCDOI, EMICO’s domestic insurance regulator, was approximately 10.1:1 as of December 31, 2025, and 10.5:1 as of December 31, 2024. EMICO’s risk-to-capital ratio remains below the NCDOI’s maximum risk-to-capital ratio of 25:1.
Liquidity As of December 31, 2024, we maintained liquidity in the form of cash and cash equivalents of $599 million compared to $616 million as of December 31, 2023, 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.
Liquidity 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.
Based on our estimated statutory results and in accordance with applicable dividend restrictions, our insurance subsidiaries have the capacity to pay dividends of $153 million from unassigned surplus as of December 31, 2024, with 30-day advance notice to the Commissioner of the intent to pay.
Based on our estimated statutory results and in accordance with applicable dividend restrictions, our insurance subsidiaries have the capacity to pay dividends of $3 million from unassigned surplus as of December 31, 2025, with 30-day advance notice to the Commissioner of the intent to pay.
During 2023 and 2022, our cash flows used in financing activities included dividends paid of $213 million and $251 million, respectively, and share repurchases of $88 million and $2 million, respectively. Capital Resources and Financing Activities We issued our 2029 Notes in the second quarter of 2024 with interest payable semi-annually in arrears in May and November of each year.
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. Capital Resources and Financing Activities We issued our 2029 Notes in the second quarter of 2024 with interest payable semi-annually in arrears in May and November of each year.
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 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.
New insurance written NIW for the year ended December 31, 2024 decreased 4% compared to 2023. Changes in NIW are primarily impacted by the size of the mortgage insurance market and our market share. We manage the quality of new business through pricing and our underwriting guidelines, which we modify from time to time as circumstances warrant.
New insurance written 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. We manage the quality of new business through pricing and our underwriting guidelines, which we modify from time to time as circumstances warrant.
(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.
Our concentration of single premium policies has declined in recent years, as a result of elevated interest 65 rates. As of December 31, 2024 and 2023, single premium policies comprised 9% and 10% of primary IIF, respectively.
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.
The following table presents the security ratings of our fixed maturity securities as of the dates indicated: December 31, 2024 December 31, 2023 December 31, 2022 AAA 11 % 10 % 10 % AA 22 20 16 A 31 33 34 BBB 35 35 38 BB & below 1 2 2 Total 100 % 100 % 100 % 90 The table below presents the effective duration and investment yield on our investments available-for-sale, excluding cash and cash equivalents: December 31, 2024 December 31, 2023 December 31, 2022 Duration (in years) 4.1 3.5 3.6 Pre-tax yield (% of average investment portfolio assets) 4.0 % 3.6 % 3.1 % We manage credit risk by analyzing issuers, transaction structures and any associated collateral.
The following table presents the security ratings of our fixed maturity securities as of the dates indicated: December 31, 2025 December 31, 2024 December 31, 2023 AAA 8 % 11 % 10 % AA 28 22 20 A 30 31 33 BBB 33 35 35 BB & below 1 1 2 Total 100 % 100 % 100 % 87 The table below presents the effective duration and investment yield on our investments available-for-sale, excluding cash and cash equivalents: December 31, 2025 December 31, 2024 December 31, 2023 Duration (in years) 4.7 4.1 3.5 Pre-tax yield (% of average investment portfolio assets) 4.4 % 4.0 % 3.6 % We manage credit risk by analyzing issuers, transaction structures and any associated collateral.
IIF is one of the primary drivers of our future earned premium. Based on the composition of our insurance portfolio, with monthly premium policies comprising a larger proportion of our total portfolio than single premium policies, an increase or decrease in IIF generally has a corresponding impact on premiums earned.
Based on the composition of our insurance portfolio, with monthly premium policies comprising a larger proportion of our total portfolio than single premium policies, an increase or decrease in IIF generally has a corresponding impact on premiums earned.
Net investment income increased primarily due to higher investment yields due to elevated interest rates coupled with higher average invested assets. 74 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.
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 71 and recoup higher investment income.
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.
These reviews include the consideration of recent and projected loss and policy cancellation experience, and adjustments to the estimated earnings patterns are made, if warranted. Unearned premiums were $115 million as of December 31, 2024, a decrease of $35 million compared to December 31, 2023.
These reviews include the consideration of recent and projected loss and policy cancellation experience, and adjustments to the estimated earnings patterns are made, if warranted. Unearned premiums were $92 million as of December 31, 2025, a decrease of $23 million compared to December 31, 2024.
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.
On September 30, 2025, we entered into a five-year, unsecured revolving credit facility with a syndicate of lenders in the initial aggregate principal amount of $435 million. The 2025 Revolving Credit Facility matures in September 2030, but under certain conditions EHI may need to repay any outstanding amounts and terminate the 2025 Revolving Credit Facility earlier than the maturity date.
The table below sets forth our primary delinquency rates for the ten largest MSAs or MDs by our primary RIF as of December 31, 2024: Percent of RIF Percent of direct primary case reserves Delinquency rate By MSA or MD: Phoenix, AZ MSA 3 % 3 % 2.41 % Chicago-Naperville, IL MD 3 4 3.29 % Atlanta, GA MSA 3 3 3.02 % New York, NY MD 2 6 3.53 % Houston, TX MSA 2 3 3.58 % 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 % All Other MSAs/MDs 77 71 2.35 % Total 100 % 100 % 2.45 % 86 The table below sets forth our primary delinquency rates for the ten largest MSAs or MDs by our primary RIF as of December 31, 2023: Percent of RIF Percent of direct primary case reserves Delinquency rate By MSA or MD: Phoenix, AZ MSA 3 % 2 % 2.01 % 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 % 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 % All Other MSAs/MDs 77 71 2.01 % Total 100 % 100 % 2.10 % The table below sets forth our primary delinquency rates for the ten largest MSAs or MDs by our primary RIF as of December 31, 2022: Percent of RIF Percent of direct primary case reserves Delinquency rate By MSA or MD: Chicago-Naperville, IL MD 3 % 5 % 2.84 % Phoenix, AZ MSA 3 2 1.83 % New York, NY MD 3 8 3.75 % Atlanta, GA MSA 2 3 2.42 % Washington-Arlington, DC MD 2 2 1.85 % Houston, TX MSA 2 3 2.60 % Riverside-San Bernardino, CA MSA 2 2 2.89 % Los Angeles-Long Beach, CA MD 2 2 2.18 % Dallas, TX MD 2 1 1.86 % Denver-Aurora-Lakewood, CO MSA 2 1 1.12 % All Other MSAs/MDs 77 71 2.00 % Total 100 % 100 % 2.08 % The number of delinquencies often does not correlate directly with the number of claims received because delinquencies may cure.
(2) Includes the District of Columbia . 82 The table below sets forth our primary delinquency rates for the ten largest MSAs or MDs by our primary RIF as of December 31, 2025: Percent of RIF Percent of direct primary case reserves Delinquency rate By MSA or MD: Phoenix, AZ MSA 3 % 3 % 2.85 % Chicago-Naperville, IL MD 3 4 3.31 % Atlanta, GA MSA 3 3 3.59 % Dallas, TX MD 2 2 2.49 % Houston, TX MSA 2 3 3.54 % New York, NY MD 2 5 3.70 % Washington-Arlington, DC MD 2 2 2.62 % Riverside-San Bernardino, CA MSA 2 3 3.53 % Los Angeles-Long Beach, CA MD 2 3 3.26 % Denver-Aurora-Lakewood, CO MSA 2 1 1.85 % All Other MSAs/MDs 77 71 2.49 % Total 100 % 100 % 2.62 % The table below sets forth our primary delinquency rates for the ten largest MSAs or MDs by our primary RIF as of December 31, 2024: Percent of RIF Percent of direct primary case reserves Delinquency rate By MSA or MD: Phoenix, AZ MSA 3 % 3 % 2.41 % Chicago-Naperville, IL MD 3 4 3.29 % Atlanta, GA MSA 3 3 3.02 % New York, NY MD 2 6 3.53 % Houston, TX MSA 2 3 3.58 % 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 % All Other MSAs/MDs 77 71 2.35 % Total 100 % 100 % 2.45 % 83 The table below sets forth our primary delinquency rates for the ten largest MSAs or MDs by our primary RIF as of December 31, 2023: Percent of RIF Percent of direct primary case reserves Delinquency rate By MSA or MD: Phoenix, AZ MSA 3 % 2 % 2.01 % 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 % 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 % All Other MSAs/MDs 77 71 2.01 % Total 100 % 100 % 2.10 % The number of delinquencies often does not correlate directly with the number of claims received because delinquencies may cure.
The following table sets forth the dispersion of primary RIF and loss reserves by policy year and delinquency rates as of December 31, 2024: Percent of RIF Percent of direct primary case reserves Delinquency rate Cumulative delinquency rate (1) Policy year: 2008 and prior 2 % 10 % 8.17 % 5.55 % 2009-2016 2 6 4.75 % 0.60 % 2017 1 4 4.37 % 0.84 % 2018 2 5 4.66 % 0.96 % 2019 4 8 3.31 % 0.89 % 2020 14 14 2.14 % 0.94 % 2021 21 21 2.25 % 1.51 % 2022 19 20 2.50 % 2.18 % 2023 17 10 1.83 % 1.64 % 2024 18 2 0.49 % 0.47 % Total portfolio 100 % 100 % 2.45 % 4.17 % ______________ (1) Calculated as the sum of the number of policies where claims were ever paid to date and number of policies for loans currently in default divided by policies ever in-force.
The following table sets forth the dispersion of primary RIF and loss reserves by policy year and delinquency rates as of December 31, 2024: Percent of RIF Percent of direct primary case reserves Delinquency rate Cumulative delinquency rate (1) Policy year: 2008 and prior 2 % 10 % 8.17 % 5.55 % 2009-2016 2 6 4.75 % 0.60 % 2017 1 4 4.37 % 0.84 % 2018 2 5 4.66 % 0.96 % 2019 4 8 3.31 % 0.89 % 2020 14 14 2.14 % 0.94 % 2021 21 21 2.25 % 1.51 % 2022 19 20 2.50 % 2.18 % 2023 17 10 1.83 % 1.64 % 2024 18 2 0.49 % 0.47 % Total portfolio 100 % 100 % 2.45 % 4.17 % ______________ (1) Calculated as the sum of the number of policies where claims were ever paid to date and number of policies for loans currently in default divided by policies ever in-force. 85 The following table sets forth the dispersion of primary RIF and loss reserves by policy year and delinquency rates as of December 31, 2023: Percent of RIF Percent of direct primary case reserves Delinquency rate Cumulative delinquency rate (1) Policy year: 2008 and prior 2 % 18 % 8.61 % 5.56 % 2009-2015 1 4 4.55 % 0.63 % 2016 2 4 3.20 % 0.67 % 2017 2 5 3.59 % 0.87 % 2018 2 6 4.42 % 1.02 % 2019 5 8 2.77 % 0.85 % 2020 17 15 1.70 % 0.90 % 2021 27 21 1.65 % 1.29 % 2022 22 16 1.57 % 1.46 % 2023 20 3 0.47 % 0.46 % Total portfolio 100 % 100 % 2.10 % 4.19 % ______________ (1) Calculated as the sum of the number of policies where claims were ever paid to date and number of policies for loans currently in default divided by policies ever in-force.
The following table presents the calculation of our RTC ratio for our principal insurance company, EMICO, as of the dates indicated: (Dollar amounts in millions) December 31, 2024 December 31, 2023 December 31, 2022 Statutory policyholders’ surplus $ 850 $ 1,026 $ 1,084 Contingency reserves 4,325 3,953 3,548 Combined statutory capital $ 5,175 $ 4,979 $ 4,632 Adjusted RIF (1) $ 54,418 $ 57,788 $ 59,663 EMICO risk-to-capital ratio 10.5 11.6 12.9 ______________ (1) Adjusted RIF for purposes of calculating EMICO statutory RTC differs from RIF presented elsewhere herein.
The following table presents the calculation of our RTC ratio for our principal insurance company, EMICO, as of the dates indicated: (Dollar amounts in millions) December 31, 2025 December 31, 2024 December 31, 2023 Statutory policyholders’ surplus $ 768 $ 850 $ 1,026 Contingency reserves 4,498 4,325 3,953 Combined statutory capital $ 5,266 $ 5,175 $ 4,979 Adjusted RIF (1) $ 53,206 $ 54,418 $ 57,788 EMICO risk-to-capital ratio 10.1 10.5 11.6 ______________ (1) Adjusted RIF for purposes of calculating EMICO statutory RTC differs from RIF presented elsewhere herein.
Liquidity and Capital Resources Cash Flows The following table summarizes our consolidated cash flows for the years ended December 31: (Amounts in thousands) 2024 2023 2022 Net cash provided by (used in): Operating activities $ 686,262 $ 632,038 $ 560,510 Investing activities (320,514) (229,404) (220,255) Financing activities (381,999) (300,726) (252,308) Net increase (decrease) in cash and cash equivalents $ (16,251) $ 101,908 $ 87,947 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.
Liquidity and Capital Resources Cash Flows The following table summarizes our consolidated cash flows for the years ended December 31: (Amounts in thousands) 2025 2024 2023 Net cash provided by (used in): Operating activities $ 724,519 $ 686,262 $ 632,038 Investing activities (226,381) (320,514) (229,404) Financing activities (515,077) (381,999) (300,726) Net increase (decrease) in cash and cash equivalents $ (16,939) $ (16,251) $ 101,908 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.
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- 63 of-use. We also compete with governmental agencies (principally the FHA and the VA) primarily based on price and underwriting guidelines.
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-of-use.
As of December 31, 2024, we had estimated 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.
As of December 31, 2025, we had estimated available assets of $5,015 million against $3,096 million net required assets under PMIERs compared to available assets of $5,095 million against $3,043 million net required assets as of December 31, 2024.
We consider potential future dividends compared to the prior year statutory net income in the evaluation of dividend strategies for our regulated operating subsidiaries. We also consider the dividend payout ratio, or the ratio of potential future dividends compared to the estimated U.S. GAAP net income, in the evaluation of our dividend strategies.
We also consider the dividend payout ratio, or the ratio of potential future dividends compared to the estimated U.S. GAAP net income, in the evaluation of our dividend strategies.
In most cases, delinquencies that are not cured result in a claim under our policy. 82 The following table shows a roll forward of the number of primary loans in default for the years ended December 31: (Loan count) 2024 2023 2022 Number of delinquencies, beginning of period 20,432 19,943 24,820 New defaults 48,537 41,617 35,996 Cures (44,611) (40,475) (40,278) Claims paid (743) (615) (574) Rescissions and claim denials (49) (38) (21) Number of delinquencies, end of period 23,566 20,432 19,943 The following table sets forth changes in our direct primary case loss reserves for the years ended December 31: (Amounts in thousands) (1) 2024 2023 2022 Loss reserves, beginning of period $ 476,709 $ 479,343 $ 606,102 Claims paid (30,550) (23,357) (28,123) Increase in reserves 25,951 20,723 (98,636) Loss reserves, end of period $ 472,110 $ 476,709 $ 479,343 ______________ (1) Direct primary case reserves exclude LAE, pool, IBNR and reinsurance reserves.
In most cases, delinquencies that are not cured result in a claim under our policy. 79 The following table shows a roll forward of the number of primary loans in default for the years ended December 31: (Loan count) 2025 2024 2023 Number of delinquencies, beginning of period 23,566 20,432 19,943 New defaults 50,481 48,537 41,617 Cures (48,187) (44,611) (40,475) Claims paid (937) (743) (615) Rescissions and claim denials (38) (49) (38) Number of delinquencies, end of period 24,885 23,566 20,432 The following table sets forth changes in our direct primary case loss reserves for the years ended December 31: (Amounts in thousands) (1) 2025 2024 2023 Loss reserves, beginning of period $ 472,110 $ 476,709 $ 479,343 Claims paid (52,374) (30,550) (23,357) Increase in reserves 95,390 25,951 20,723 Loss reserves, end of period $ 515,126 $ 472,110 $ 476,709 ______________ (1) Direct primary case reserves exclude LAE, pool, IBNR and reinsurance reserves.
The following table sets forth selected operating performance measures on a primary basis as of or for the years ended December 31: (Dollar amounts in millions) 2024 2023 2022 New insurance written $51,002 $53,081 $66,485 Primary insurance in-force (1) $268,825 $262,937 $248,262 Primary risk in-force $69,985 $67,529 $62,791 Persistency rate 83 % 85 % 80 % Primary policies in-force (count) 962,849 974,516 960,306 Delinquent loans (count) 23,566 20,432 19,943 Delinquency rate 2.45 % 2.10 % 2.08 % _______________ (1) Represents the aggregate unpaid principal balance for loans we insure.
The following table sets forth selected operating performance measures on a primary basis as of or for the years ended December 31: (Dollar amounts in millions) 2025 2024 2023 New insurance written $51,506 $51,002 $53,081 Primary insurance in-force (1) $273,147 $268,825 $262,937 Primary risk in-force $71,363 $69,985 $67,529 Persistency rate 82 % 83 % 85 % Primary policies in-force (count) 950,670 962,849 974,516 Delinquent loans (count) 24,885 23,566 20,432 Delinquency rate 2.62 % 2.45 % 2.10 % _______________ (1) Represents the aggregate unpaid principal balance for loans we insure.
New insurance written of $51.0 billion in 2024 decreased 4% compared to 2023. Changes in NIW are primarily impacted by the size of the mortgage insurance market and our market share. Our primary persistency rate decreased to 83% during 2024 compared to 85% during 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.
The following table includes a reconciliation of net income to adjusted operating income for the years ended December 31: (Amounts in thousands) 2024 2023 2022 Net income $ 688,068 $ 665,511 $ 704,157 Adjustments to net income: Net investment (gains) losses 22,807 14,022 2,036 Costs associated with reorganization 4,652 (131) 3,461 Loss on debt extinguishment 10,930 — — Taxes on adjustments (8,061) (2,917) (1,155) Adjusted operating income $ 718,396 $ 676,485 $ 708,499 Adjusted operating income increased in 2024 compared to 2023 primarily due to higher premiums and net investment income, partially offset by higher losses. 76 Key Metrics Management reviews the key metrics included within this section when analyzing the performance of our business.
The following table includes a reconciliation of net income to adjusted operating income for the years ended December 31: (Amounts in thousands) 2025 2024 2023 Net income $ 674,244 $ 688,068 $ 665,511 Adjustments to net income: Net investment (gains) losses 16,276 22,807 14,022 Costs associated with reorganization 820 4,652 (131) Loss on debt extinguishment — 10,930 — Taxes on adjustments (3,590) (8,061) (2,917) Adjusted operating income $ 687,750 $ 718,396 $ 676,485 Adjusted operating income decreased in 2025 compared to 2024 primarily due to higher losses, partially offset by higher net investment income and lower expenses. 73 Key Metrics Management reviews the key metrics included within this section when analyzing the performance of our business.
As of December 31, 2024, our 2017 and newer policy years represented approximately 96% of our primary RIF and 84% of our total direct primary case reserves.
As of December 31, 2025, our 2018 and newer policy years represented approximately 96% of our primary RIF and 85% of our total direct primary case reserves.
The following table shows incurred losses related to current and prior accident years for the years ended December 31: (Amounts in thousands) 2024 2023 2022 Losses and LAE incurred related to current accident year $ 289,482 $ 275,418 $ 219,461 Losses and LAE incurred related to prior accident years (258,180) (248,214) (313,652) Total incurred (1) $ 31,302 $ 27,204 $ (94,191) _______________ (1) Excludes run-off business.
The following table shows incurred losses related to current and prior accident years for the years ended December 31: (Amounts in thousands) 2025 2024 2023 Losses and LAE incurred related to current accident year $ 280,143 $ 289,482 $ 275,418 Losses and LAE incurred related to prior accident years (188,739) (258,180) (248,214) Total incurred (1) $ 91,404 $ 31,302 $ 27,204 _______________ (1) Excludes run-off business.
Fixed Maturity Securities Available-for-Sale The following table presents the fair value of our fixed maturity securities available-for-sale as of the dates indicated: December 31, 2024 December 31, 2023 December 31, 2022 (Amounts in thousands) Fair value % of total Fair value % of total Fair value % of total U.S. government, agencies and GSEs $ 277,363 4.9 % $ 195,129 3.7 % $ 44,769 0.9 % State and political subdivisions 467,476 8.3 438,214 8.3 419,856 8.6 Non-U.S. government 83,802 1.5 11,467 0.2 9,349 0.2 U.S. corporate 2,825,679 50.2 2,723,730 51.8 2,646,863 54.2 Non-U.S. corporate 772,624 13.7 689,663 13.1 652,844 13.4 Residential mortgage-backed 8,364 0.2 10,755 0.2 11,043 0.2 Other asset-backed 1,189,465 21.2 1,197,183 22.7 1,100,036 22.5 Total available-for-sale fixed maturity securities $ 5,624,773 100.0 % $ 5,266,141 100.0 % $ 4,884,760 100.0 % Our investment portfolio did not include any direct residential real estate or whole mortgage loans as of December 31, 2024, December 31, 2023 or December 31, 2022.
Fixed Maturity Securities Available-for-Sale The following table presents the fair value of our fixed maturity securities available-for-sale as of the dates indicated: December 31, 2025 December 31, 2024 December 31, 2023 (Amounts in thousands) Fair value % of total Fair value % of total Fair value % of total U.S. government, agencies and GSEs $ 257,307 4.2 % $ 277,363 4.9 % $ 195,129 3.7 % State and political subdivisions 478,972 7.9 467,476 8.3 438,214 8.3 Non-U.S. government 185,462 3.1 83,802 1.5 11,467 0.2 U.S. corporate 2,810,727 46.5 2,825,679 50.2 2,723,730 51.8 Non-U.S. corporate 783,056 12.9 772,624 13.7 689,663 13.1 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 Total available-for-sale fixed maturity securities $ 6,050,542 100.0 % $ 5,624,773 100.0 % $ 5,266,141 100.0 % Our investment portfolio did not include any direct residential real estate or whole mortgage loans as of December 31, 2025, December 31, 2024 or December 31, 2023.
For our less liquid securities, such as our privately placed securities, we utilize independent market data to employ alternative valuation methods commonly used in the financial services industry to estimate fair value.
For our less liquid securities, such as our privately placed securities, we utilize independent market data to employ alternative valuation methods commonly used in the financial services industry to estimate fair value. Based on the market observability of the inputs used in estimating the fair value, the pricing level is assigned.
The following table presents NIW by product for the years ended December 31: (Amounts in millions) 2024 2023 2022 Primary $ 51,002 100 % $ 53,081 100 % $ 66,485 100 % Pool — — — — — — Total $ 51,002 100 % $ 53,081 100 % $ 66,485 100 % The following table presents primary NIW by underlying type of mortgage for the years ended December 31: (Amounts in millions) 2024 2023 2022 Purchases $ 47,693 94 % $ 51,723 97 % $ 63,506 96 % Refinances 3,309 6 1,358 3 2,979 4 Total $ 51,002 100 % $ 53,081 100 % $ 66,485 100 % The following table presents primary NIW by policy payment type for the years ended December 31: (Amounts in millions) 2024 2023 2022 Monthly $ 48,830 96 % $ 51,869 98 % $ 61,123 92 % Single 2,102 4 1,114 2 5,166 8 Other 70 — 98 — 196 — Total $ 51,002 100 % $ 53,081 100 % $ 66,485 100 % 77 The following table presents primary NIW by FICO score for the years ended December 31: (Amounts in millions) 2024 2023 2022 Over 760 $ 24,843 49 % $ 24,680 46 % $ 30,239 45 % 740-759 8,096 16 8,994 17 11,264 17 720-739 6,768 13 7,220 14 9,377 14 700-719 4,932 10 5,214 10 6,889 10 680-699 3,237 6 3,652 7 4,535 7 660-679 (1) 1,759 3 2,086 4 2,534 4 640-659 972 2 952 2 1,206 2 620-639 369 1 268 — 424 1 26 — 15 — 17 — Total $ 51,002 100 % $ 53,081 100 % $ 66,485 100 % ______________ (1) Loans with unknown FICO scores are included in the 660-679 category.
The following table presents NIW by product for the years ended December 31: (Amounts in millions) 2025 2024 2023 Primary $ 51,506 100 % $ 51,002 100 % $ 53,081 100 % Pool — — — — — — Total $ 51,506 100 % $ 51,002 100 % $ 53,081 100 % The following table presents primary NIW by underlying type of mortgage for the years ended December 31: (Amounts in millions) 2025 2024 2023 Purchases $ 46,192 90 % $ 47,693 94 % $ 51,723 97 % Refinances 5,314 10 3,309 6 1,358 3 Total $ 51,506 100 % $ 51,002 100 % $ 53,081 100 % The following table presents primary NIW by policy payment type for the years ended December 31: (Amounts in millions) 2025 2024 2023 Monthly $ 49,320 96 % $ 48,830 96 % $ 51,869 98 % Single 2,116 4 2,102 4 1,114 2 Other 70 — 70 — 98 — Total $ 51,506 100 % $ 51,002 100 % $ 53,081 100 % 74 The following table presents primary NIW by FICO score for the years ended December 31: (Amounts in millions) 2025 2024 2023 Over 760 $ 26,339 51 % $ 24,843 49 % $ 24,680 46 % 740-759 8,477 16 8,096 16 8,994 17 720-739 6,278 12 6,768 13 7,220 14 700-719 4,523 9 4,932 10 5,214 10 680-699 2,967 6 3,237 6 3,652 7 660-679 (1) 1,729 3 1,759 3 2,086 4 640-659 835 2 972 2 952 2 620-639 335 1 369 1 268 — 23 — 26 — 15 — Total $ 51,506 100 % $ 51,002 100 % $ 53,081 100 % ______________ (1) Loans with unknown FICO scores are included in the 660-679 category.
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.
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.
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 addition, the dividend strategies of our regulated operating subsidiaries are made in consultation with Genworth. In 2025, EMICO completed distributions of approximately $610 million that supported our ability to pay cash dividends.
The following tables set forth primary delinquencies, direct primary case reserves and RIF by aged missed payment status as of the dates indicated: December 31, 2024 (Dollar amounts in millions) Delinquencies Direct primary case reserves (1) Risk in-force Reserves as % of risk in-force Payments in default: 3 payments or less 12,712 $ 108 $ 849 13 % 4 - 11 payments 7,701 191 545 35 % 12 payments or more 3,153 173 213 81 % Total 23,566 $ 472 $ 1,607 29 % December 31, 2023 (Dollar amounts in millions) Delinquencies Direct primary case reserves (1) Risk in-force Reserves as % of risk in-force Payments in default: 3 payments or less 10,166 $ 88 $ 629 14 % 4 - 11 payments 6,934 205 469 44 % 12 payments or more 3,332 184 200 92 % Total 20,432 $ 477 $ 1,298 37 % ______________ (1) Direct primary case reserves exclude LAE, pool, IBNR and reinsurance reserves. 83 December 31, 2022 (Dollar amounts in millions) Delinquencies Direct primary case reserves (1) Risk in-force Reserves as % of risk in-force Payments in default: 3 payments or less 8,920 $ 69 $ 509 14 % 4 - 11 payments 6,466 166 390 43 % 12 payments or more 4,557 244 248 98 % Total 19,943 $ 479 $ 1,147 42 % ______________ (1) Direct primary case reserves exclude LAE, pool, IBNR and reinsurance reserves.
The following tables set forth primary delinquencies, direct primary case reserves and RIF by aged missed payment status as of the dates indicated: December 31, 2025 (Dollar amounts in millions) Delinquencies Direct primary case reserves (1) Risk in-force Reserves as % of risk in-force Payments in default: 3 payments or less 12,647 $ 104 $ 867 12 % 4 - 11 payments 8,591 206 641 32 % 12 payments or more 3,647 205 270 76 % Total 24,885 $ 515 $ 1,778 29 % December 31, 2024 (Dollar amounts in millions) Delinquencies Direct primary case reserves (1) Risk in-force Reserves as % of risk in-force Payments in default: 3 payments or less 12,712 $ 108 $ 849 13 % 4 - 11 payments 7,701 191 545 35 % 12 payments or more 3,153 173 213 81 % Total 23,566 $ 472 $ 1,607 29 % ______________ (1) Direct primary case reserves exclude LAE, pool, IBNR and reinsurance reserves. 80 December 31, 2023 (Dollar amounts in millions) Delinquencies Direct primary case reserves (1) Risk in-force Reserves as % of risk in-force Payments in default: 3 payments or less 10,166 $ 88 $ 629 14 % 4 - 11 payments 6,934 205 469 44 % 12 payments or more 3,332 184 200 92 % Total 20,432 $ 477 $ 1,298 37 % ______________ (1) Direct primary case reserves exclude LAE, pool, IBNR and reinsurance reserves.
Provision for income taxes The effective tax rate was 21.6% and 21.8% for the years ended December 31, 2024 and 2023, respectively, consistent with the United States corporate federal income tax rate. Use of Non-GAAP Financial Measures We use a non-U.S.
For additional details see Note 7 to our consolidated financial statements. Provision for income taxes The effective tax rate was 21.5% and 21.6% for the years ended December 31, 2025 and 2024, respectively, consistent with the United States corporate federal income tax rate. Use of Non-GAAP Financial Measures We use a non-U.S.
The following table sets forth primary IIF by DTI score at origination as of the dates indicated: (Amounts in millions) December 31, 2024 December 31, 2023 December 31, 2022 45.01% and above $ 59,864 22 % $ 53,440 20 % $ 43,831 18 % 38.01% to 45.00% 97,361 36 93,871 36 87,816 35 38.00% and below 111,600 42 115,626 44 116,615 47 Total $ 268,825 100 % $ 262,937 100 % $ 248,262 100 % The following table sets forth primary RIF by DTI score at origination as of the dates indicated: (Amounts in millions) December 31, 2024 December 31, 2023 December 31, 2022 45.01% and above $ 15,674 22 % $ 13,830 20 % $ 11,176 18 % 38.01% to 45.00% 25,226 36 24,072 36 22,268 35 38.00% and below 29,085 42 29,627 44 29,347 47 Total $ 69,985 100 % $ 67,529 100 % $ 62,791 100 % Delinquent loans and claims Our delinquency management process begins with notification by the loan servicer of a delinquency on an insured loan.
The following table sets forth primary IIF by DTI score at origination as of the dates indicated: (Amounts in millions) December 31, 2025 December 31, 2024 December 31, 2023 45.01% and above $ 65,275 24 % $ 59,864 22 % $ 53,440 20 % 38.01% to 45.00% 99,748 36 97,361 36 93,871 36 38.00% and below 108,124 40 111,600 42 115,626 44 Total $ 273,147 100 % $ 268,825 100 % $ 262,937 100 % The following table sets forth primary RIF by DTI score at origination as of the dates indicated: (Amounts in millions) December 31, 2025 December 31, 2024 December 31, 2023 45.01% and above $ 17,150 24 % $ 15,674 22 % $ 13,830 20 % 38.01% to 45.00% 25,893 36 25,226 36 24,072 36 38.00% and below 28,320 40 29,085 42 29,627 44 Total $ 71,363 100 % $ 69,985 100 % $ 67,529 100 % Delinquent loans and claims Our delinquency management process begins with notification by the loan servicer of a delinquency on an insured loan.
Our loss ratio for the year ended December 31, 2024, was 4% as compared to 3% for the year ended December 31, 2023. 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.
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 due to strong cure performance and loss mitigation efforts. In 2025, we recorded a net reserve release of $200 million.
Our yield optimization strategy enables opportunistic security sales based on current and changing market conditions. We had more sales in 2024 than 2023. 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 .
Our yield optimization strategy enables opportunistic security sales based on current and changing market conditions. We had fewer losses on sales in 2025 than 2024. Other income includes underwriting fee revenue, equity method investment income and other revenue.
COVID-19); • 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; • a drop in housing values that negatively impacts a borrower’s willingness to continue mortgage payments, potentially leading to higher delinquencies and ultimately claims; • if the foreclosure occurs in a state that imposes judicial process, which generally increases the amount of time it takes for a foreclosure to be completed, which impacts severity of the claim; • the credit characteristics in our in-force portfolio, as loans with higher risk characteristics generally result in more delinquencies and claims; • the size of loans we insure, as loans with relatively higher average loan amounts generally result in higher incurred losses; • the coverage percentage on insured loans, as loans with higher percentages of insurance coverage generally correlate with higher incurred losses; • the level and amount of reinsurance coverage maintained with third parties; and 66 • the distribution of claims over the life of a book.
Incurred losses depend to a significant extent on the following factors: • 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; • 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; • a drop in housing values that negatively impacts a borrower’s willingness to continue mortgage payments, potentially leading to higher delinquencies and ultimately claims; • if the foreclosure occurs in a state that imposes judicial process, which generally increases the amount of time it takes for a foreclosure to be completed, which impacts severity of the claim; • the credit characteristics in our in-force portfolio, as loans with higher risk characteristics generally result in more delinquencies and claims; • the size of loans we insure, as loans with relatively higher average loan amounts generally result in higher incurred losses; • the coverage percentage on insured loans, as loans with higher percentages of insurance coverage generally correlate with higher incurred losses; • the level and amount of reinsurance coverage maintained with third parties; and • the distribution of claims over the life of a book.
Based on the market observability of the inputs used in estimating the fair value, the pricing level is assigned. 68 See Notes 2, 3 and 4 to our consolidated financial statements for additional information related to the valuation of fixed maturity securities and a description of the fair value measurement estimates and level assignments.
See Notes 2, 3 and 4 to our consolidated financial statements for additional information related to the valuation of fixed maturity securities and a description of the fair value measurement estimates and level assignments.
Investments Valuation of Fixed Maturity Securities Our portfolio of fixed maturity securities was valued at $5,625 million as of December 31, 2024, an increase of $359 million from December 31, 2023.
Investments Valuation of Fixed Maturity Securities Our portfolio of fixed maturity securities was valued at $6,051 million as of December 31, 2025, an increase of $426 million from December 31, 2024.
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 92 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.
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.
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.
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.
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.
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: Seasonality Three months ended (Dollar amounts in millions) Mar 31, 2023 Jun 30, 2023 Sep 30, 2023 Dec 31, 2023 Mar 31, 2024 Jun 30, 2024 Sep 30, 2024 Dec 31, 2024 NIW $13,154 $15,083 $14,391 $10,453 $10,526 $13,619 $13,591 $13,266 % Change (13.1)% 14.7% (4.6)% (27.4)% 0.7% 29.4% (0.2)% (2.4)% Cure Counts 10,771 9,609 9,778 10,317 12,160 10,731 10,749 10,971 % Change 19.4% (10.8)% 1.8% 5.5% 17.9% (11.8)% 0.2% 2.1% New Delinquency Count 9,599 9,205 11,107 11,706 11,395 10,461 12,964 13,717 % Change (6.8)% (4.1)% 20.7% 5.4% (2.7)% (8.2)% 23.9% 5.8% NIW NIW occurs when a lender activates mortgage insurance coverage on a closed mortgage loan.
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 (Dollar amounts in millions) Mar 31, 2024 Jun 30, 2024 Sep 30, 2024 Dec 31, 2024 Mar 31, 2025 Jun 30, 2025 Sep 30, 2025 Dec 31, 2025 NIW $10,526 $13,619 $13,591 $13,266 $9,818 $13,254 $14,048 $14,386 % Change 0.7% 29.4% (0.2)% (2.4)% (26.0)% 35.0% 6.0% 2.4% Cure Counts 12,160 10,731 10,749 10,971 13,263 11,574 11,467 11,883 % Change 17.9% (11.8)% 0.2% 2.1% 20.9% (12.7)% (0.9)% 3.6% New Delinquency Count 11,395 10,461 12,964 13,717 12,237 11,567 12,998 13,679 % Change (2.7)% (8.2)% 23.9% 5.8% (10.8)% (5.5)% 12.4% 5.2% NIW NIW occurs when a lender activates mortgage insurance coverage on a closed mortgage loan.
(2) Includes the District of Columbia . 85 The table below sets forth our primary delinquency rates for the ten largest states by our primary RIF as of December 31, 2022: Percent of RIF Percent of direct primary case reserves Delinquency rate By state: California 12 % 10 % 2.09 % Texas 8 7 2.12 % Florida (1) 8 8 2.54 % New York (1) 5 13 2.95 % Illinois (1) 5 6 2.54 % Arizona 4 2 1.78 % Michigan 4 3 1.79 % North Carolina 3 3 1.59 % Georgia 3 3 2.23 % Washington 3 3 1.92 % All other states (2) 45 42 1.94 % Total 100 % 100 % 2.08 % ______________ (1) Jurisdiction predominantly uses a judicial foreclosure process, which generally increases the amount of time it takes for a foreclosure to be completed.
The table below sets forth our primary delinquency rates for the ten largest states by our primary RIF as of December 31, 2025: Percent of RIF Percent of direct primary case reserves Delinquency rate By state: California 12 % 13 % 2.84 % Texas 9 9 2.81 % Florida (1) 8 13 3.35 % New York (1) 5 9 3.38 % Illinois (1) 4 5 3.15 % Arizona 4 4 2.78 % Michigan 4 3 2.33 % Georgia 3 4 3.33 % North Carolina 3 2 2.07 % Pennsylvania 3 3 2.29 % All other states (2) 45 35 2.32 % Total 100 % 100 % 2.62 % ______________ (1) Jurisdiction predominantly uses a judicial foreclosure process, which generally increases the amount of time it takes for a foreclosure to be completed.
Loss reserves as of December 31, 2024, were $525 million, an increase of $7 million since December 31, 2023.
Loss reserves as of December 31, 2025, were $572 million, an increase of $48 million since December 31, 2024.
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.
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.
The following table presents the calculation of our RTC ratio for our combined mortgage insurance subsidiaries as of the dates indicated: (Dollar amounts in millions) December 31, 2024 December 31, 2023 December 31, 2022 Statutory policyholders’ surplus $ 887 $ 1,085 $ 1,136 Contingency reserves 4,336 3,960 3,551 Combined statutory capital $ 5,223 $ 5,045 $ 4,687 Adjusted RIF (1) $ 55,001 $ 58,277 $ 60,061 Combined risk-to-capital ratio 10.5 11.6 12.8 ______________ (1) Adjusted RIF for purposes of calculating combined statutory RTC differs from RIF presented elsewhere herein.
While formulations of minimum capital vary in certain states, the most common measure applied allows for a maximum permitted RTC ratio of 25:1. 90 The following table presents the calculation of our RTC ratio for our combined mortgage insurance subsidiaries as of the dates indicated: (Dollar amounts in millions) December 31, 2025 December 31, 2024 December 31, 2023 Statutory policyholders’ surplus $ 806 $ 887 $ 1,085 Contingency reserves 4,513 4,336 3,960 Combined statutory capital $ 5,319 $ 5,223 $ 5,045 Adjusted RIF (1) $ 53,893 $ 55,001 $ 58,277 Combined risk-to-capital ratio 10.1 10.5 11.6 ______________ (1) Adjusted RIF for purposes of calculating combined statutory RTC differs from RIF presented elsewhere herein.
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. Loss experience.
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 68 customer accounted for 10% or more of total revenues or NIW for the years ended December 31, 2025, 2024 or 2023. Loss experience.
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.
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; 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.
The revolving credit agreement requires EHI to maintain the following financial covenants: a minimum consolidated net worth equal to the sum of (i) $3,729,000,000, (ii) 50% of cumulative consolidated net income of the Company for each fiscal quarter of the Company (beginning with the fiscal quarter ending September 30, 2025) for which consolidated net income is positive, and (iii) 50% of any increase in the consolidated net worth of the Company after September 30, 2025 resulting from the issuance of capital stock by or capital contributions to, in each case, the Company or any of its subsidiaries; a maximum debt-to-total capitalization ratio of 0.35 to 1.00; and compliance with all applicable financial requirements under the Private Mortgage Insurer Eligibility Requirements published by the Federal Home Loan Mortgage Corporation and the Federal National Mortgage Association.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

4 edited+0 added−0 removed7 unchanged
Biggest changeWe manage market risk via our defined investment policy guidelines implemented by our investment managers with oversight from our Board of Directors and our senior management. Important drivers of our market risk exposure that we monitor and manage include but are not limited to: • Changes to the level of interest rates .
Biggest changeWhile our investment portfolio is exposed to factors affecting markets worldwide, it is most sensitive to fluctuations in the drivers of United States markets. 92 We manage market risk via our defined investment policy guidelines implemented by our investment managers with oversight from our Board of Directors and our senior management.
As of December 31, 2024, the effective duration of our investments available-for-sale was 4.1 years, which means that an instantaneous parallel shift (movement up or down) in the yield curve of 100 basis points would result in a change of 4.1% in fair value of our investments available-for-sale. 96
As of December 31, 2025, the effective duration of our investments available-for-sale was 4.7 years, which means that an instantaneous parallel shift (movement up or down) in the yield curve of 100 basis points would result in a change of 4.7% in fair value of our investments available-for-sale. 93
Increasing interest rates may reduce the value of certain fixed-rate bonds held in the investment portfolio. Higher rates may cause variable-rate assets to generate additional income. Decreasing rates will have the reverse impact.
Important drivers of our market risk exposure that we monitor and manage include but are not limited to: • Changes to the level of interest rates . Increasing interest rates may reduce the value of certain fixed-rate bonds held in the investment portfolio. Higher rates may cause variable-rate assets to generate additional income. Decreasing rates will have the reverse impact.
The assets within the investment portfolio are exposed to the same factors that affect overall financial market performance. While our investment 95 portfolio is exposed to factors affecting markets worldwide, it is most sensitive to fluctuations in the drivers of United States markets.
The assets within the investment portfolio are exposed to the same factors that affect overall financial market performance.

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