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 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”).

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 nine months ended September 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

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.

Current wording

Macroeconomic environment. Through the third 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 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.

Current wording

The Bureau of Labor Statistics reported in September 2026 that Consumer Price Index (“CPI”) inflation was 3.7% year-over-year compared to 3.5% year-over-year in June 2026 while the unemployment rate was 4.2% in September 2026 consistent with June 2026. Inflation remains a challenge for the Federal Open Market Committee as it navigates heightened uncertainty.

Previous 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.

Current wording

U.S. mortgage rates remained elevated, increasing during the third 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 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.

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. Volume, while increasing, remains immaterial to date.

Previous 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.

Current wording

Our portfolio. New insurance written (“NIW”) of $14.1 billion in the third quarter of 2026 increased slightly compared to the third quarter of 2025. Changes in NIW are primarily impacted by the size of the mortgage insurance market and our market share. Our primary persistency rate was 81% during the third quarter of 2026 and 83% for the third quarter of 2025.

Previous 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.

Current wording

Net earned premiums were down marginally in the third quarter of 2026 compared to the third quarter of 2025 due to slightly lower average premium rates and higher ceded premiums, largely offset by assumed premium and insurance in-force growth.

Previous 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.

Current wording

Loss experience. Our loss ratio for the three months ended September 30, 2026, was 20% as compared to 15% for the three months ended September 30, 2025. Both periods were impacted by favorable prior year reserve development. In the third quarter of 2026, we released $37 million of reserves, driven by cure performance and loss mitigation activities. This compares to the third quarter of 2025, where we recorded a $45 million reserve release driven by cure performance and loss mitigation activities.

Previous 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.

Current wording

New delinquencies in the third quarter of 2026 increased compared to the third quarter of 2025 due to the expected loss development pattern on newer books. Current period primary delinquencies of 14,401 contributed $83 million of loss expense in the third quarter of 2026. This compares to $79 million of loss expense from 12,998 primary delinquencies that were reported in the third 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. In the fourth quarter of 2025, we reduced the expected claim rates as a result of sustained favorable cure performance and our market expectations. We have maintained the lower claim rates through the third quarter of 2026.

Previous 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.

Current wording

Capital requirements and ratings. As of September 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 10.2:1 as of December 31, 2025, and September 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 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.

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 September 30, 2026, we had estimated available assets of $4,966 million against $3,139 million net required assets under PMIERs compared to available assets of $5,002 million against $3,108 million net required assets as of June 30, 2026. The sufficiency ratio as of September 30, 2026, was 158%, or $1,827 million above the PMIERs requirements, compared to 161%, or $1,894 million above the PMIERs requirements as of June 30, 2026. Our PMIERs required assets benefited from a reinsurance credit of $1,969 million and $1,931 million related to third-party reinsurance as of September 30, 2026, and June 30, 2026, respectively.

Previous wording

On August 21, 2024, the GSEs and the FHFA released updated PMIERs requirements phasing in a revision to available asset standards between March 31, 2025, and September 30, 2026. The updated standards differentiate between bonds based on credit quality and liquidity. The updates also establish limits for assets backed by residential mortgages or commercial real estate to mitigate the impact if such assets lose value during periods of housing stress. We expect to hold capital sufficiency well in excess of these requirements and do not expect the impact of these updates to be material to our sufficiency.

Current wording

On August 21, 2024, the GSEs and the FHFA released updated PMIERs requirements phasing in a revision to available asset standards between March 31, 2025, and September 30, 2026. The updated standards differentiated between bonds based on credit quality and liquidity. 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. These updates have been fully phased in and the impact has not been material to our sufficiency.

Previous 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.

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 and September 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

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.

Current wording

Premiums decreased slightly in the three months ended September 30, 2026, compared to the three months ended September 30, 2025, due to slightly lower average premium rates and higher ceded premiums, largely offset by assumed premium and insurance in-force growth. The net earned premium rate was 0.33% for the three months ended September 30, 2026, down from 0.35% for the three months ended September 30, 2025.

Previous wording

Net investment income increased for the three months ended June 30, 2026, compared to the three months ended June 30, 2025, primarily due to higher yields and higher average invested assets.

Current wording

Net investment income increased for the three months ended September 30, 2026, compared to the three months ended September 30, 2025, primarily due to higher yields and the higher average amortized cost of invested assets.

Previous 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.

Current wording

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

Previous 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.

Current wording

Losses incurred during the third quarter of 2026 and 2025 were both impacted by prior year development. In the third quarter of 2026, we recorded a reserve release of $37 million, driven by cure performance and loss mitigation activities. In the third quarter of 2025, we recorded a reserve release of $45 million primarily related to cure performance of delinquencies and loss mitigation activities. Current period primary delinquencies of 14,401 contributed $83 million of loss expense in the three months ended September 30, 2026. This compares to $79 million of loss expense from 12,998 primary delinquencies in the three months ended September 30, 2025. In the fourth quarter of 2025, we reduced the expected claim rates as a result of sustained favorable cure performance and our market expectations. We have maintained the lower claim rates through the third quarter of 2026.

Previous 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.

Current wording

Acquisition and operating expenses, net of deferrals, decreased slightly for the three months ended September 30, 2026, driven primarily by the favorable impact of ceding commissions.

Previous 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.

Current wording

The effective tax rate was 21.7% and 22.1% for the three months ended September 30, 2026 and 2025, respectively, consistent with the United States corporate federal income tax rate.

Previous wording

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

Current wording

Premiums decreased slightly in the nine months ended September 30, 2026, compared to the nine months ended September 30, 2025, due to slightly lower average premium rates and higher ceded premiums, largely offset by insurance in-force growth and higher assumed premiums. The net earned premium rate was 0.34% for the nine months ended September 30, 2026, down slightly from 0.35% for the nine months ended September 30, 2025.

Previous wording

Net investment income increased for the six months ended June 30, 2026, compared to the six months ended June 30, 2025, primarily attributable to an increase in investment yields and higher average invested assets.

Current wording

Net investment income increased for the nine months ended September 30, 2026, compared to the nine months ended September 30, 2025, primarily attributable to an increase in investment yields and the higher average amortized cost of invested assets.

Previous wording

Losses incurred during the first six months of 2026 and 2025 were both impacted by favorable reserve adjustments. During the first six months of 2026, we released reserves of $76 million primarily on prior accident year reserves driven by cure performance and loss mitigation activities. During the first six months of 2025, we released reserves of $95 million primarily due to better than expected cure performance on delinquencies from 2024 and prior years. New primary delinquencies of 25,858 contributed $145 million of loss expense in the first six months of 2026. This compares to $144 million of loss expense from 23,804 new primary delinquencies in the first six months of 2025. In 2025, we reduced the expected claim rates as a result of sustained favorable cure performance and our market expectations.

Current wording

Losses incurred during the first nine months of 2026 and 2025 were both impacted by favorable reserve adjustments. During the first nine months of 2026, we released reserves of $113 million primarily on prior accident year reserves driven by cure performance and loss mitigation activities. During the first nine months of 2025, we released reserves of $140 million primarily due to better than expected cure performance on delinquencies from 2024 and prior years. New primary delinquencies of 40,259 contributed $228 million of loss expense in the first nine months of 2026. This compares to $223 million of loss expense from 36,802 new primary delinquencies in the first nine months of 2025. In the fourth quarter of 2025, we reduced the expected claim rates as a result of sustained favorable cure performance and our market expectations. We have maintained the lower claim rates through the third quarter of 2026.

Previous wording

Acquisition and operating expenses, net of deferrals, decreased slightly driven primarily by higher ceding commissions, partially offset by higher employee expenses.

Current wording

Acquisition and operating expenses, net of deferrals, decreased slightly driven primarily by the favorable impact of ceding commissions.

Previous wording

Interest expense for the six months ended June 30, 2026 and 2025, primarily relate to our 2029 Notes. For additional details see Note 7 to our unaudited condensed consolidated financial statements.

Current wording

Interest expense for the nine months ended September 30, 2026 and 2025, primarily relate to our 2029 Notes. For additional details see Note 7 to our unaudited condensed consolidated financial statements.

Previous wording

The effective tax rate was 20.9% and 21.7% for the six months ended June 30, 2026 and 2025, respectively, consistent with the United States corporate federal income tax rate.

Current wording

The effective tax rate was 21.2% and 21.8% for the nine months ended September 30, 2026 and 2025, respectively, consistent with the United States corporate federal income tax rate.

Previous wording

Adjusted operating income increased for the six months ended June 30, 2026, as compared to June 30, 2025, primarily due to higher net investment income and lower expenses, partially offset by higher losses.

Current wording

Adjusted operating income decreased for the three months ended September 30, 2026, as compared to September 30, 2025, primarily due to higher losses and lower premiums which were largely offset by higher net investment income and lower expenses.

Previous wording

Adjusted operating income increased for the three months ended June 30, 2026, as compared to June 30, 2025, primarily due to higher net investment income and lower expenses, partially offset by higher losses.

Current wording

Adjusted operating income increased for the nine months ended September 30, 2026, as compared to September 30, 2025, primarily due to higher net investment income and lower expenses, partially offset by higher losses.

Previous 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.

Current wording

NIW for the three months ended September 30, 2026, remained relatively flat compared to the three months ended September 30, 2025. NIW for the nine months ended September 30, 2026, increased compared to the nine months ended September 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 82% for the three months ended June 30, 2026 and 2025, respectively. RIF remained relatively flat from December 31, 2025.

Current wording

IIF increased since December 31, 2025, as NIW outpaced policy lapse and cancellations. The primary persistency rate was 81% and 83% for the three months ended September 30, 2026 and 2025, respectively. RIF increased since December 31, 2025 primarily as a result of higher IIF.

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 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.

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 September 30, 2026, our 2019 and newer policy years represented approximately 96% of our primary RIF and 87% of our total direct primary case reserves.

Previous wording

Investing activities are primarily related to purchases, sales and maturities of our investment portfolio. Net cash used in investing activities increased primarily as a result of purchases of fixed maturity securities outpacing maturities and sales in the current year due to the deployment of operating cash flows.

Current wording

Investing activities are primarily related to purchases, sales and maturities of our investment portfolio. Net cash used in investing activities was driven by purchases of fixed maturity securities outpacing maturities and sales in the current year due to the deployment of operating cash flows.

Previous 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.

Current wording

During the nine months ended September 30, 2026, our cash flows from financing activities included dividends paid of $96 million and share repurchases of $304 million. The amount and timing of future dividends is discussed within “—Trends and Conditions” as well as below. During the nine months ended September 30, 2025, our cash flows from financing activities included dividends paid of $91 million and share repurchases of $255 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

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 Revolving Credit Facility and the 2025 Revolving Credit Facility has remained undrawn through September 30, 2026.

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 $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.

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 $3 million as of September 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 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.

Current wording

EMICO paid dividends of approximately $150 million in both March and June 2026 and $200 million in September 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 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.

Current wording

As of September 30, 2026, we maintained liquidity in the form of cash and cash equivalents of $505 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 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.

Current wording

Refer to Note 2 in our unaudited condensed consolidated financial statements for the nine months ended September 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.