Enact Holdings, Inc.ACT

Enact Holdings, Inc. Commitments Disclosure

10-KFiled Feb 27, 20262 min read
Commitments and contingencies
Leases
Our operating leases consist predominantly of office space. Operating lease right-of-use assets of $6.6 million and $8.8 million as of December 31, 2025 and 2024, respectively, were recorded in other assets on the consolidated balance sheets. Operating lease liabilities of $7.8 million and $10.6 million as of December 31, 2025 and 2024, respectively, were recorded in other liabilities on the consolidated balance sheets. Operating lease expenses were approximately $3.4 million for each of the years ended December 31, 2025, 2024 and 2023.
Our remaining lease terms ranged from 2 years to 6 years and had a weighted-average remaining lease term of 2 years and 3 years as of December 31, 2025 and 2024, respectively. The implicit rate of our lease agreements was not readily determinable; therefore, we utilized our incremental borrowing rate
to discount future lease payments. The weighted-average discount rate was 7.0% and 7.1% as of December 31, 2025 and 2024, respectively. The following table presents future minimum rent payments under operating leases as of December 31, 2025:
(Amounts in thousands)Future minimum payments under operating leases
2026$3,890 
20274,029 
2028129 
2029132 
2030135 
2031 and thereafter
139 
Total lease payments8,454 
Imputed interest(624)
Operating lease liabilities$7,830 
Litigation and Regulatory Matters
We face the risk of litigation and regulatory investigations and actions in the ordinary course of operating our business and are also subject to litigation arising out of our general business activities, such as our contractual and employment relationships. Past legal and regulatory actions include proceedings specific to us and others generally applicable to business practices in the mortgage insurance industry in which we operate. We have been, or may become, subject to lawsuits or regulatory investigations alleging, among other things, issues relating to violations of the Real Estate Settlement and Procedures Act of 1974 (“RESPA”) or related state anti-inducement laws, mortgage insurance policy rescissions and curtailments, pricing structures and general business practices, and breaching duties related to the privacy and information security of customer information. Plaintiffs in lawsuits against us may seek very large or indeterminate amounts which may remain unknown for substantial periods of time. In addition, we are also subject to various regulatory inquiries, such as information requests, subpoenas, books and record examinations and market conduct and financial examinations from state and federal regulators and other authorities. A substantial legal liability or a significant regulatory action against us could have an adverse effect on our business, financial condition and results of operations. Moreover, even if we ultimately prevail in the litigation, regulatory action or investigation, we could suffer significant reputational harm, which could have an adverse effect on our business, financial condition or results of operations.

Historical Timeline

Fiscal YearFiled
2025Feb 27, 2026Showing above
2024Feb 28, 2025
2023Feb 29, 2024
2022Feb 28, 2023
2021Feb 28, 2022

About Commitments Disclosures

Commitments and contingencies disclosures catalog a company's off-balance-sheet obligations and legal exposures — purchase commitments, guarantee arrangements, pending litigation, and regulatory proceedings. These items represent potential future cash outflows that may not appear as liabilities on the balance sheet until they become probable and estimable.

Key signals: litigation reserves and disclosed loss ranges quantify management's estimate of legal exposure, but unquantified "reasonably possible" losses often represent the larger risk. Watch for changes in language around pending cases — shifts from "remote" to "reasonably possible" or increases in estimated loss ranges signal deteriorating outcomes. Unconditional purchase obligations and take-or-pay contracts create fixed cost structures that reduce operational flexibility. Guarantee arrangements for subsidiaries or joint ventures can create cascading obligations. Compare the total commitment schedule against projected free cash flow to assess whether the company can meet its obligations without additional financing.

Other Available Disclosures

Income TaxesEarnings Per ShareFair ValueSegmentsDebtStock CompensationNew Standards