Enact Holdings, Inc.

Previous wording

The following discussion and analysis of our consolidated financial condition and results of operations should be read in conjunction with our unaudited condensed consolidated financial statements and related notes for the three months ended March 31, 2026 and 2025, and our audited consolidated financial statements and related notes for the years ended December 31, 2025 and 2024, within our Annual Report on Form 10-K for the fiscal year ending December 31, 2025 (the “Annual Report”).

Current wording

The following discussion and analysis of our consolidated financial condition and results of operations should be read in conjunction with our unaudited condensed consolidated financial statements and related notes for the six months ended June 30, 2026 and 2025, and our audited consolidated financial statements and related notes for the years ended December 31, 2025 and 2024, within our Annual Report on Form 10-K for the fiscal year ending December 31, 2025 (the “Annual Report”).

Previous wording

In addition to historical information, this discussion contains forward-looking statements that involve risks, uncertainties and assumptions that could cause actual results to differ materially from management’s expectations. Factors that could cause such differences are discussed in the sections entitled “Cautionary Note Regarding Forward-Looking Statements” above and Part I, Item 1A “Risk Factors” in our Annual Report. We are not undertaking any obligation to update any forward-looking statements or other statements we may make in the following discussion or elsewhere in this document even though these statements may be affected by events or circumstances occurring after the forward-looking statements or other statements were made. Future results could differ significantly from the historical results presented in this section. References to “EHI,” “Enact,” “Enact Holdings,” the “Company,” “we” or “our” herein are, unless the context otherwise requires, to EHI on a consolidated basis.

Current wording

In addition to historical information, this discussion contains forward-looking statements that involve risks, uncertainties and assumptions that could cause actual results to differ materially from management’s expectations. Factors that could cause such differences are discussed in the sections entitled “Cautionary Note Regarding Forward-Looking Statements” above and Part I, Item 1A “Risk Factors” in our Annual Report. We are not undertaking any obligation to update any forward-looking statements or other statements we may make in the following discussion or elsewhere in this document even though these statements may be affected by events or circumstances occurring after the forward-looking statements or other statements were made, except as may be required by any applicable securities law. Future results could differ significantly from the historical results presented in this section. References to “EHI,” “Enact,” “Enact Holdings,” the “Company,” “we” or “our” herein are, unless the context otherwise requires, to EHI on a consolidated basis.

Previous wording

Macroeconomic environment. During the first quarter of 2026, the United States economy continued to be subject to significant volatility and uncertainty, largely related to geopolitical tensions including the Iran conflict, changing economic policies, and continued inflationary pressure. The ancillary effects of these factors on the domestic and global economies could materially impact the United States housing markets and our business.

Current wording

Macroeconomic environment. Through the second quarter of 2026, the United States economy continued to be subject to significant volatility and uncertainty, largely related to geopolitical tensions including the Iran conflict, changing economic policies, and continued inflationary pressure. The ancillary effects of these factors on the domestic and global economies could materially impact the United States housing markets and our business.

Previous wording

The Bureau of Labor Statistics reported in March 2026 that Consumer Price Index (“CPI”) inflation was 3.3% year-over-year compared to 2.7% year-over-year in December 2025 while the unemployment rate has fallen slightly to 4.3% in March 2026 from 4.4% in December 2025. Elevated inflation remains a challenge for the Federal Open Market Committee as it navigates heightened uncertainty.

Current wording

The Bureau of Labor Statistics reported in June 2026 that Consumer Price Index (“CPI”) inflation was 3.5% year-over-year compared to 3.3% year-over-year in March 2026 while the unemployment rate has fallen slightly to 4.2% in June 2026 from 4.3% in March 2026. Elevated inflation remains a challenge for the Federal Open Market Committee as it navigates heightened uncertainty.

Previous wording

U.S. mortgage rates were especially volatile during the first quarter of 2026. Lower rates earlier in the quarter drove higher refinance volume in the market, while the mortgage origination market remained relatively slow, particularly as rates rose later in the quarter. Over the past few years, housing affordability has deteriorated as elevated mortgage rates and home price appreciation outpaced median family income according to the National Association of Realtors Housing Affordability Index. Despite slowing of house price growth nationally according to the Federal Housing Finance Agency (“FHFA”) Monthly Purchase-Only House Price Index (Seasonally Adjusted), affordability remains challenged.

Current wording

U.S. mortgage rates remained elevated into the second quarter of 2026. Over the past few years, housing affordability has deteriorated as elevated mortgage rates and home price appreciation outpaced median family income according to the National Association of Realtors Housing Affordability Index. Despite slowing of house price growth nationally in 2026 according to the Federal Housing Finance Agency (“FHFA”) Monthly Purchase-Only House Price Index (Seasonally Adjusted), affordability remains challenged.

Previous wording

In July 2025, the FHFA announced that it will implement the acceptance of VantageScore 4.0 for mortgages delivered to Fannie Mae and Freddie Mac. The GSEs have since released preliminary implementation details and timelines, but the full impact of this initiative on our business, processes and financial results remains uncertain.

Current wording

In July 2025, the FHFA announced that it would implement the acceptance of VantageScore 4.0 for mortgages delivered to Fannie Mae and Freddie Mac. We began accepting VantageScore 4.0 on mortgages during the second quarter of 2026, though volume remains immaterial to date.

Previous wording

Our portfolio. New insurance written (“NIW”) of $12.8 billion in the first quarter of 2026 increased 30% compared to the first quarter of 2025. The increase is largely driven by refinance volume in the first quarter. Changes in NIW are primarily impacted by the size of the mortgage insurance market and our market share. Our primary persistency rate was 80% during the first quarter of 2026 and 84% for the first quarter of 2025. The persistency rate decreased largely due to lapse, driven by mortgage rate volatility and increased refinance activity.

Current wording

Our portfolio. New insurance written (“NIW”) of $15.2 billion in the second quarter of 2026 increased 15% compared to the second quarter of 2025. The increase was driven by larger estimated purchase and refinance mortgage insurance markets in the second quarter of 2026. Our primary persistency rate was 80% during the second quarter of 2026 and 82% for the second quarter of 2025.

Previous wording

Net earned premiums decreased modestly in the first quarter of 2026 compared to the first quarter of 2025 primarily as a result of higher ceded premiums and lapse-driven rate decline partially offset by insurance in-force and assumed premium growth.

Current wording

Net earned premiums were relatively consistent in the second quarter of 2026 compared to the second quarter of 2025 as slightly lower average premium rates and higher ceded premiums were offset by insurance in-force and assumed premium growth.

Previous wording

Loss experience. Our loss ratio for the three months ended March 31, 2026, was 15% as compared to 12% for the three months ended March 31, 2025. Both periods were impacted by favorable reserve development. In the first quarter of 2026, we released $39 million of reserves, driven by cure performance and loss mitigation activities. This compares to the first quarter of 2025, where we recorded a $47 million reserve release driven by cure performance and loss mitigation activities.

Current wording

Loss experience. Our loss ratio for the three months ended June 30, 2026, was 14% as compared to 10% for the three months ended June 30, 2025. Both periods were impacted by favorable reserve development. In the second quarter of 2026, we released $37 million of reserves, driven by cure performance and loss mitigation activities. This compares to the second quarter of 2025, where we recorded a $48 million reserve release driven by cure performance and loss mitigation activities.

Previous wording

New delinquencies in the first quarter of 2026 increased compared to the first quarter of 2025 due to the normal loss development pattern on newer books. Current period primary delinquencies of 13,559 contributed $76 million of loss expense in the first quarter of 2026. This compares to $75 million of loss expense from 12,237 primary delinquencies that were reported in the first quarter of 2025. In determining the loss expense estimate, considerations were given to recent cure and claim experience and the prevailing and prospective economic conditions.

Current wording

New delinquencies in the second quarter of 2026 increased compared to the second quarter of 2025 due to the normal loss development pattern on newer books. Current period primary delinquencies of 12,299 contributed $68 million of loss expense in the second quarter of 2026. This compares to $69 million of loss expense from 11,567 primary delinquencies that were reported in the second quarter of 2025. In determining the loss expense estimate, considerations were given to recent cure and claim experience and the prevailing and prospective economic conditions.

Previous wording

Capital requirements and ratings. As of March 31, 2026, EMICO’s estimated risk-to-capital ratio under North Carolina law and enforced by the North Carolina Department of Insurance (“NCDOI”), EMICO’s domestic insurance regulator, was 10.0:1, compared with risk-to-capital ratios of 10.1:1 and 10.5:1 as of December 31, 2025, and March 31, 2025, respectively. EMICO’s risk-to-capital ratio remains below the NCDOI’s maximum risk-to-capital ratio of 25:1. North Carolina’s calculation of risk-to-capital excludes the risk in-force for delinquent loans given the established loss reserves against all delinquencies. EMICO’s ongoing risk-to-capital ratio will depend principally on the magnitude of future losses incurred by EMICO, the effectiveness of ongoing loss mitigation activities, new business volume and profitability, the impact of quota share reinsurance, the amount of policy lapses and the amount of additional capital that is generated or distributed by the business.

Current wording

Capital requirements and ratings. As of June 30, 2026, EMICO’s estimated risk-to-capital ratio under North Carolina law and enforced by the North Carolina Department of Insurance (“NCDOI”), EMICO’s domestic insurance regulator, was 9.9:1, compared with risk-to-capital ratios of 10.1:1 and 10.3:1 as of December 31, 2025, and June 30, 2025, respectively. EMICO’s risk-to-capital ratio remains below the NCDOI’s maximum risk-to-capital ratio of 25:1. North Carolina’s calculation of risk-to-capital excludes the risk in-force for delinquent loans given the established loss reserves against all delinquencies. EMICO’s ongoing risk-to-capital ratio will depend principally on the magnitude of future losses incurred by EMICO, the effectiveness of ongoing loss mitigation activities, new business volume and profitability, the impact of quota share reinsurance, the amount of policy lapses and the amount of additional capital that is generated or distributed by the business.

Previous wording

Under PMIERs, we are subject to operational and financial requirements that private mortgage insurers must meet in order to remain eligible to insure loans that are purchased by the GSEs. As of March 31, 2026, we had estimated available assets of $5,016 million against $3,097 million net required assets under PMIERs compared to available assets of $5,015 million against $3,096 million net required assets as of December 31, 2025. The sufficiency ratio as of March 31, 2026, was 162%, or $1,919 million, above the PMIERs requirements, compared to 162%, or $1,919 million, above the PMIERs requirements as of December 31, 2025. Our PMIERs required assets benefited from a reinsurance credit of $1,944 million and $1,932 million related to third-party reinsurance as of March 31, 2026, and December 31, 2025, respectively.

Current wording

Under PMIERs, we are subject to operational and financial requirements that private mortgage insurers must meet in order to remain eligible to insure loans that are purchased by the GSEs. As of June 30, 2026, we had estimated available assets of $5,002 million against $3,108 million net required assets under PMIERs compared to available assets of $5,016 million against $3,097 million net required assets as of March 31, 2026. The sufficiency ratio as of June 30, 2026, was 161%, or $1,894 million, above the PMIERs requirements, compared to 162%, or $1,919 million, above the PMIERs requirements as of March 31, 2026. Our PMIERs required assets benefited from a reinsurance credit of $1,931 million and $1,944 million related to third-party reinsurance as of June 30, 2026, and March 31, 2026, respectively.

Previous wording

Capital returns. In March 2026, our primary mortgage insurance operating company, EMICO, paid a dividend to EHI that supports our ability to return capital to shareholders. We paid a dividend of $0.185 per common share during the first quarter of 2025. In April 2025, we announced an increase of our dividend to $0.21 per common share which was paid quarterly through March 2026. In May 2026, we announced the increase of our quarterly dividend from $0.21 to $0.24 per common share, payable in June 2026. Future dividend payments are subject to quarterly review and approval by our Board of Directors and Genworth and will be targeted to be paid in the third month of each quarter.

Current wording

Capital returns. In May 2026, we announced the increase of our quarterly dividend from $0.21 to $0.24 per common share, which was paid in June 2026. Future dividend payments are subject to quarterly review and approval by our Board of Directors and Genworth and will be targeted to be paid in the third month of each quarter.

Previous wording

On May 1, 2024, we announced the authorization of a share repurchase program that allowed for the repurchase of up to $250 million of EHI’s common stock. The Company completed the repurchase of shares under this authorization in the second quarter of 2025. On April 30, 2025, we announced the authorization of a new share repurchase program that allowed for the repurchase of up to an additional $350 million of EHI’s common stock. The Company completed the repurchase of shares under this authorization during the first quarter of 2026. On February 3, 2026, we announced the authorization of a new share repurchase program that allows for the repurchase of up to an additional $500 million of EHI’s common stock. Under the programs, share repurchases may be made at our discretion from time to time in open market transactions in compliance with Rule 10b-18 under the Securities Exchange Act of 1934, as amended, privately negotiated transactions, or by other means, including through Rule 10b5-1 trading plans. In support, Enact has entered into an agreement with Genworth Holdings, Inc. to repurchase its Enact shares as part of the program to maintain Genworth’s current ownership interest in Enact. We expect the timing and amount of any future share repurchases will be opportunistic and will depend on a variety of factors, including EHI’s share price, capital availability, business and market conditions, regulatory requirements, and debt covenant restrictions. The programs do not obligate EHI to acquire any amount of common stock, may be suspended or terminated at any time at the Company’s discretion without prior notice, and do not have a specified expiration date.

Current wording

On April 30, 2025, we announced the authorization of a new share repurchase program that allowed for the repurchase of up to an additional $350 million of EHI’s common stock. The Company completed the repurchase of shares under this authorization during the first quarter of 2026. On February 3, 2026, we announced the authorization of a new share repurchase program that allows for the repurchase of up to an additional $500 million of EHI’s common stock. Under the programs, share repurchases may be made at our discretion from time to time in open market transactions in compliance with Rule 10b-18 under the Securities Exchange Act of 1934, as amended, privately negotiated transactions, or by other means, including through Rule 10b5-1 trading plans. In support, Enact has entered into an agreement with Genworth Holdings, Inc. to repurchase its Enact shares as part of the program to maintain Genworth’s current ownership interest in Enact. We expect the timing and amount of any future share repurchases will be opportunistic and will depend on a variety of factors, including EHI’s share price, capital availability, business and market conditions, regulatory requirements, and debt covenant restrictions. The programs do not obligate EHI to acquire any amount of common stock, may be suspended or terminated at any time at the Company’s discretion without prior notice, and do not have a specified expiration date.

Previous wording

Premiums decreased modestly for the three months ended March 31, 2026, compared to the three months ended March 31, 2025, as a result of higher ceded premiums and partially offset by insurance in-force and assumed premium growth. The net earned premium rate was 0.34% for the three months ended March 31, 2026, relatively consistent with 0.35% for the three months ended March 31, 2025.

Current wording

Premiums were relatively consistent for the three months ended June 30, 2026, compared to the three months ended June 30, 2025, as slightly lower average premium rates and higher ceded premiums were offset by insurance in-force and assumed premium growth. The net earned premium rate was 0.34% for the three months ended June 30, 2026, down slightly from 0.35% for the three months ended June 30, 2025.

Previous wording

Net investment losses in the first quarter of 2026 and 2025 were driven primarily by realized losses on the sale of fixed maturity securities.

Current wording

Net investment losses in the second quarter of 2026 and 2025 were driven primarily by realized losses on the sale of fixed maturity securities.

Previous wording

Losses incurred during the first quarter of 2026 and 2025 were both impacted by prior year development. In the first quarter of 2026, we recorded a reserve release of $39 million, driven by cure performance and loss mitigation activities. In the first quarter of 2025, we recorded a reserve release of $47 million primarily related to cure performance of delinquencies and loss mitigation activities. Current period primary delinquencies of 13,559 contributed $76 million of loss expense in the three months ended March 31, 2026. This compares to $75 million of loss expense from 12,237 primary delinquencies in the three months ended March 31, 2025.

Current wording

Losses incurred during the second quarter of 2026 and 2025 were both impacted by prior year development. In the second quarter of 2026, we recorded a reserve release of $37 million, driven by cure performance and loss mitigation activities. In the second quarter of 2025, we recorded a reserve release of $48 million primarily related to cure performance of delinquencies and loss mitigation activities. Current period primary delinquencies of 12,299 contributed $68 million of loss expense in the three months ended June 30, 2026. This compares to $69 million of loss expense from 11,567 primary delinquencies in the three months ended June 30, 2025. In 2025, we reduced the expected claim rates as a result of sustained favorable cure performance and our market expectations.

Previous wording

Acquisition and operating expenses, net of deferrals, decreased for the three months ended March 31, 2026, primarily due to higher ceding commissions and lower professional services expenses.

Current wording

Acquisition and operating expenses, net of deferrals, decreased slightly for the three months ended June 30, 2026, primarily due to higher ceding commissions, partially offset by higher employee expenses.

Previous wording

The effective tax rate was 21.4% and 21.6% for the three months ended March 31, 2026 and 2025, respectively, consistent with the United States corporate federal income tax rate.

Current wording

The effective tax rate was 20.5% and 21.8% for the three months ended June 30, 2026 and 2025, respectively, consistent with the United States corporate federal income tax rate.

Previous wording

NIW for the three months ended March 31, 2026, increased compared to the three months ended March 31, 2025, primarily due to higher mortgage refinancing originations in the current period.

Current wording

NIW for the three months ended June 30, 2026, increased compared to the three months ended June 30, 2025, primarily due to larger estimated purchase and refinance mortgage insurance markets in the second quarter of 2026. Similarly, NIW for the six months ended June 30, 2026, increased compared to the six months ended June 30, 2025, primarily due to higher mortgage refinancing originations.

Previous wording

IIF decreased since December 31, 2025, as policy lapse and cancellations outpaced NIW. The primary persistency rate was 80% and 84% for the three months ended March 31, 2026 and 2025, respectively. RIF remained relatively flat from December 31, 2025.

Current wording

IIF decreased since December 31, 2025, as policy lapse and cancellations outpaced NIW. The primary persistency rate was 80% and 82% for the three months ended June 30, 2026 and 2025, respectively. RIF remained relatively flat from December 31, 2025.

Previous wording

The following table sets forth primary IIF by DTI score at origination as of the dates indicated:

Current wording

The following table sets forth primary IIF by DTI ratio at origination as of the dates indicated:

Previous wording

The following table sets forth primary RIF by DTI score at origination as of the dates indicated:

Current wording

The following table sets forth primary RIF by DTI ratio at origination as of the dates indicated:

Previous wording

The total reserves as a percentage of RIF as of March 31, 2026, has remained consistent compared to December 31, 2025.

Current wording

The total reserves as a percentage of RIF as of June 30, 2026, has remained relatively consistent compared to December 31, 2025.

Previous wording

Loss reserves in policy years 2008 and prior are outsized compared to their representation of RIF. The size of these policy years at origination, particularly 2005 through 2008, combined with the significant decline in home prices led to significant losses in policy years prior to 2009. Although uncertainty remains with respect to the ultimate losses we will experience on these policy years, they have become a smaller percentage of our total mortgage insurance portfolio. The concentration of loss reserves has shifted to newer book years in line with changes in RIF. As of March 31, 2026, our 2019 and newer policy years represented approximately 94% of our primary RIF and 84% of our total direct primary case reserves.

Current wording

Loss reserves in policy years 2008 and prior are outsized compared to their representation of RIF. The size of these policy years at origination, particularly 2005 through 2008, combined with the significant decline in home prices led to significant losses in policy years prior to 2009. Although uncertainty remains with respect to the ultimate losses we will experience on these policy years, they have become a smaller percentage of our total mortgage insurance portfolio. The concentration of loss reserves has shifted to newer book years in line with changes in RIF. As of June 30, 2026, our 2019 and newer policy years represented approximately 96% of our primary RIF and 84% of our total direct primary case reserves.

Previous wording

Our most significant source of operating cash flows is premiums received from our insurance policies, while our most significant uses of operating cash flows are generally for claims paid on our insured policies and our operating expenses. Net cash provided by operating activities remained relatively flat as lower expenses and premiums were offset by higher net investment income. Cash flows from operations were also impacted by net investment losses, changes in reserves and the timing of tax payments.

Current wording

Our most significant source of operating cash flows is premiums received from our insurance policies, while our most significant uses of operating cash flows are generally for claims paid on our insured policies and our operating expenses. Net cash provided by operating activities remained relatively flat as lower expenses and premiums were offset by higher net investment income. Cash flows from operations were also impacted by net investment losses, changes in reserves and the timing of premium and tax payments.

Previous wording

During the three months ended March 31, 2026, our cash flows from financing activities included dividends paid of $30 million and share repurchases of $93 million. The amount and timing of future dividends is discussed within “—Trends and Conditions” as well as below. During the three months ended March 31, 2025, our cash flows from financing activities included dividends paid of $28 million and share repurchases of $65 million.

Current wording

During the six months ended June 30, 2026, our cash flows from financing activities included dividends paid of $63 million and share repurchases of $187 million. The amount and timing of future dividends is discussed within “—Trends and Conditions” as well as below. During the six months ended June 30, 2025, our cash flows from financing activities included dividends paid of $60 million and share repurchases of $150 million.

Previous wording

On September 30, 2025, we entered into a credit agreement with a syndicate of lenders that provides for a five-year, unsecured revolving credit facility (the “2025 Revolving Credit Facility”) in the initial aggregate principal amount of $435 million, which replaces the previous $200 million senior unsecured revolving credit facility. The 2025 Revolving Credit Facility matures in September 2030, but under certain conditions EHI may need to repay any outstanding amounts and terminate the 2025 Revolving Credit Facility earlier than the maturity date. We may use borrowings under the 2025 Revolving Credit Facility for working capital needs and general corporate purposes, including the execution of dividends to our shareholders and capital contributions to our insurance subsidiaries. The 2025 Revolving Credit Facility contains several covenants, including financial covenants relating to minimum net worth, maximum debt to capitalization level and PMIERs compliance. We are in compliance with all covenants of the 2025 Revolving Credit Facility and the 2025 Revolving Credit Facility has remained undrawn through March 31, 2026.

Current wording

On September 30, 2025, we entered into a credit agreement with a syndicate of lenders that provides for a five-year, unsecured revolving credit facility (the “2025 Revolving Credit Facility”) in the initial aggregate principal amount of $435 million, which replaces the previous $200 million senior unsecured revolving credit facility. The 2025 Revolving Credit Facility matures in September 2030, but under certain conditions EHI may need to repay any outstanding amounts and terminate the 2025 Revolving Credit Facility earlier than the maturity date. We may use borrowings under the 2025 Revolving Credit Facility for working capital needs and general corporate purposes, including the execution of dividends to our shareholders and capital contributions to our insurance subsidiaries. The 2025 Revolving Credit Facility contains several covenants, including financial covenants relating to minimum net worth, maximum debt to capitalization level and PMIERs compliance. We are in compliance with all covenants of the 2025

Previous wording

The ability of our regulated insurance operating subsidiaries to pay dividends and distributions to us is restricted by certain provisions of North Carolina insurance laws. Our insurance subsidiaries may pay dividends only from unassigned surplus; payments made from sources other than unassigned surplus, such as paid-in and contributed surplus, are categorized as distributions. Notice of all dividends must be submitted to the Commissioner of the NCDOI (the “Commissioner”) within 5 business days after declaration of the dividend, and at least 30 days before payment thereof. No dividend may be paid until 30 days after the Commissioner has received notice of the declaration thereof and (i) has not within that period disapproved the payment or (ii) has approved the payment within the 30-day period. Any distribution, regardless of amount, requires that same 30-day notice to the Commissioner, but also requires the Commissioner’s affirmative approval before being paid. Based on our estimated statutory results and in accordance with applicable dividend restrictions, our insurance subsidiaries have the capacity to pay dividends from unassigned surplus of approximately $52 million as of March 31, 2026, with 30-day advance notice to the Commissioner of the intent to pay. In addition to dividends and distributions, alternative mechanisms, such as share repurchases, subject to any requisite regulatory approvals, may be utilized from time to time to upstream surplus.

Current wording

The ability of our regulated insurance operating subsidiaries to pay dividends and distributions to us is restricted by certain provisions of North Carolina insurance laws. Our insurance subsidiaries may pay dividends only from unassigned surplus; payments made from sources other than unassigned surplus, such as paid-in and contributed surplus, are categorized as distributions. Notice of all dividends must be submitted to the Commissioner of the NCDOI (the “Commissioner”) within 5 business days after declaration of the dividend, and at least 30 days before payment thereof. No dividend may be paid until 30 days after the Commissioner has received notice of the declaration thereof and (i) has not within that period disapproved the payment or (ii) has approved the payment within the 30-day period. Any distribution, regardless of amount, requires that same 30-day notice to the Commissioner, but also requires the Commissioner’s affirmative approval before being paid. Based on our estimated statutory results and in accordance with applicable dividend restrictions, our insurance subsidiaries have the capacity to pay dividends from unassigned surplus of approximately $32 million as of June 30, 2026, with 30-day advance notice to the Commissioner of the intent to pay. In addition to dividends and distributions, alternative mechanisms, such as share repurchases, subject to any requisite regulatory approvals, may be utilized from time to time to upstream surplus.

Previous wording

EMICO paid a dividend of approximately $150 million in March 2026 that will primarily be used to support our ability to return capital to shareholders and bolster financial flexibility. We intend to continue to use future EMICO dividends and distributions for these purposes.

Current wording

EMICO paid dividends of approximately $150 million in both March and June 2026 that will primarily be used to support our ability to return capital to shareholders and bolster financial flexibility. We intend to continue to use future EMICO dividends and distributions for these purposes.

Previous wording

As of March 31, 2026, we maintained liquidity in the form of cash and cash equivalents of $549 million compared to $582 million as of December 31, 2025, and we also held significant levels of investment-grade fixed maturity securities and short-term investments that can be monetized should our cash and cash equivalents be insufficient to meet our obligations.

Current wording

As of June 30, 2026, we maintained liquidity in the form of cash and cash equivalents of $448 million compared to $582 million as of December 31, 2025, and we also held significant levels of investment-grade fixed maturity securities and short-term investments that can be monetized should our cash and cash equivalents be insufficient to meet our obligations.

Previous wording

Refer to Note 2 in our unaudited condensed consolidated financial statements for the three months ended March 31, 2026 and 2025, and in our audited consolidated financial statements for the years ended December 31, 2025 and 2024, for a discussion of recently adopted and not yet adopted accounting standards.

Current wording

Refer to Note 2 in our unaudited condensed consolidated financial statements for the six months ended June 30, 2026 and 2025, and in our audited consolidated financial statements for the years ended December 31, 2025 and 2024, for a discussion of recently adopted and not yet adopted accounting standards.