ENACT REPORTS FOURTH QUARTER AND FULL YEAR 2025 RESULTS (Form 8-K)

ENACT REPORTS FOURTH QUARTER AND FULL YEAR 2025 RESULTS

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GAAP Net Income of $177 million, or $1.22 per diluted share

Adjusted Operating Income of $179 million, or $1.23 per diluted share

Return on Equity of 13.3% and Adjusted Operating Return on Equity of 13.5%

Primary Insurance in-force of $273 billion, a 2% year-over-year increase

PMIERs Sufficiency of 162% or approximately $1.9 billion

Book Value Per Share of $37.66 and Book Value Per Share excluding AOCI of $37.87

Returned over $500 million of capital to shareholders in 2025

Raleigh, NC, February 3, 2026 - Enact Holdings, Inc. (Nasdaq: ACT) today announced its fourth quarter and full year 2025 results.

"Enact delivered a strong fourth quarter, capping another successful year driven by disciplined execution, resilient credit performance, and a continued focus on long-term value creation." said Rohit Gupta, President and CEO of Enact. "Affordability pressures and interest rate volatility continue to shape housing activity. The role of private mortgage insurance remains critical, and we continue to approach this environment from a position of strength. Our strategy, solid capital position, and operating discipline have enabled us to support our customers, grow our business, and deliver sustainable value for our shareholders. Overall, we remain confident in our ability to execute and capitalize on the opportunities ahead."

Key Financial Highlights

(In millions, except per share data or otherwise noted)			4Q25						3Q25						4Q24			2025						2024
Net Income (loss)			$177						$163						$163			$674						$688
Diluted Net Income (loss) per share			$1.22						$1.10						$1.05			$4.52						$4.37
Adjusted Operating Income (loss)			$179						$166						$169			$688						$718
Adj. Diluted Operating Income (loss) per share			$1.23						$1.12						$1.09			$4.61						$4.56
NIW ($B)			$14						$14						$13			$52						$51
Primary Persistency Rate			80%						83%						82%			82%						83%
Primary IIF ($B)			$273						$272						$269
Net Premiums Earned			$246						$245						$246			$981						$980
Losses Incurred			$18						$36						$24			$110						$39
Loss Ratio			7%						15%						10%			11%						4%
Operating Expenses			$59						$53						$58			$218						$223
Expense Ratio			24%						22%						24%			22%						23%
Net Investment Income			$69						$69						$63			$266						$241
Net Investment gains (losses)			$(3)						$(3)						$(7)			$(16)						$(23)
Return on Equity			13.3%						12.4%						13.0%			13.0%						14.3%
Adjusted Operating Return on Equity			13.5%						12.6%						13.5%			13.3%						14.9%
PMIERs Sufficiency ($)			$1,919						$1,904						$2,052
PMIERs Sufficiency (%)			162%						162%						167%

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Fourth Quarter 2025 Financial and Operating Highlights

•Net income was $177 million, or $1.22 per diluted share, compared with $163 million, or $1.10 per diluted share, for the third quarter of 2025 and $163 million, or $1.05 per diluted share, for the fourth quarter of 2024. Adjusted operating income was $179 million, or $1.23 per diluted share, compared with $166 million, or $1.12 per diluted share, for the third quarter of 2025 and $169 million, or $1.09 per diluted share, for the fourth quarter of 2024.

•New insurance written (NIW) was $14 billion, up 2% from the third quarter of 2025, and up 8% from the fourth quarter of 2024. NIW for the current quarter was comprised of 96% monthly premium policies and 81% purchase originations.

•Persistency remained elevated at 80%, down from 83% in the third quarter of 2025 and down from 82% in the fourth quarter of 2024. Approximately 22% of the mortgages in our portfolio had rates at least 50 basis points above December 2025's average mortgage rate of 6.2%.

•Primary insurance in-force (IIF) was $273 billion, up from $272 billion in the third quarter of 2025 and up approximately 2% from $269 billion in the fourth quarter of 2024.

•Net premiums earned were $246 million, approximately flat from the third quarter of 2025 and the fourth quarter of 2024.

•Losses incurred for the fourth quarter of 2025 were $18 million and the loss ratio was 7%, compared to $36 million and 15%, respectively, in the third quarter of 2025 and $24 million and 10%, respectively, in the fourth quarter of 2024. The sequential and year-over-year decrease in losses and the loss ratio were primarily driven by a net reserve release of $60 million reflecting favorable cure performance and the lowering of our claim rate expectations from 9% to 8%. We lowered our claim rate expectations on both new and recent delinquencies as a result of sustained favorable cure performance. The $60 million net reserve release compares to a reserve release of $45 million and $56 million in the third quarter of 2025 and fourth quarter of 2024, respectively.

•Operating expenses in the current quarter were $59 million, and the expense ratio was 24%. This is compared to $53 million and 22%, respectively, in the third quarter of 2025 and $58 million and 24%, respectively in the fourth quarter of 2024. The sequential increase was driven by incentive-based compensation.

•Net investment income was $69 million, flat from the third quarter of 2025 and up from $63 million in the fourth quarter of 2024, driven by the continuation of elevated interest rates and higher average invested assets.

•Net investment gains (losses) in the quarter were $(3) million, as compared to $(3) million sequentially and $(7) million in the same period last year. The activity is primarily driven by the identification of assets that upon selling allow us to recoup losses through higher net investment income.

•Annualized return on equity for the fourth quarter of 2025 was 13.3% and annualized adjusted operating return on equity was 13.5%. This compares to the third quarter of 2025 results of 12.4% and 12.6%, respectively, and to fourth quarter of 2024 results of 13.0% and 13.5%, respectively.

Capital and Liquidity

•We returned $503 million to shareholders in 2025 consisting of $121 million in quarterly dividends, and $382 million of share repurchases (10.5 million shares at a weighted average share price of $36.25).

•We paid approximately $30 million, or $0.21 per share, dividend in the fourth quarter.

•EMICO completed a dividend of approximately $150 million in the fourth quarter that will primarily be used to support our ability to return capital to shareholders and bolster financial flexibility.

•Enact Holdings, Inc. held $257 million in cash and cash equivalents plus $370 million of invested assets as of December 31, 2025. Combined cash and invested assets is down $23 million from the prior quarter, primarily due to return of capital and semi-annual interest payment, partially offset by the dividend from EMICO.

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•During the quarter, we announced an excess of loss reinsurance agreement with a panel of highly rated reinsurers that will provide approximately $170M of coverage on a portion of expected new insurance written for the 2027 book year.

•PMIERs sufficiency was 162% and $1.9 billion above the PMIERs requirements, compared to 162% and $1.9 billion above the PMIERs requirements in the third quarter of 2025.

Recent Events

•We repurchased approximately 3.4 million shares at an average price of $37.66 for a total of approximately $127 million in the quarter. Additionally, through January 30, 2026, we repurchased 0.8 million shares at an average price of $39.37 for a total of $31 million and approximately $30 million remains of our $350 million repurchase authorization.

•Subsequent to quarter end, S&P upgraded the financial strength rating outlook for EMICO, EHI and Enact Re to positive.

•Today we announced the Company's Board of Directors approved a new share repurchase program with authorization to purchase up to $500 million of common stock along with a quarterly dividend of $0.21 per share, payable on March 19, 2026, to shareholders of record on February 26, 2026.

Conference Call and Financial Supplement Information