Enact Holdings, Inc.ACT
Enact Holdings, Inc. Stock Compensation Disclosure
Share-based compensation
EHI share-based compensation
We offer share-based awards to employees and directors including restricted stock units (“RSUs”) and performance stock units (“PSUs”) for employees and deferred stock units (“DSUs”) to directors. In 2021, the Enact Holdings, Inc. 2021 Omnibus Incentive Plan (the “2021 Omnibus Plan”) was adopted and approved by EHI’s stockholders. Under the 2021 Omnibus incentive Plan, EHI was authorized to grant a maximum number of shares of Common Stock for issuance not to exceed 4 million shares.
Share-based compensation expense under the 2021 Omnibus Plan was $19.0 million, $18.8 million, $15.3 million for the years ended December 31, 2025, 2024 and 2023, respectively, and is recorded within acquisition and operating expenses, net of deferrals in the consolidated statements of income. Stock-based compensation expense was recognized evenly on a straight-line attribution method over the awards’ respective vesting period.
During 2025, 2024, and 2023 the Company issued RSUs to our employees with average restriction periods of three years and a weighted average fair value of $33.07, $27.64, and $24.26, respectively. Each grant was measured at the fair value of a share of the Company’s Common Stock on the grant date.
The PSUs granted in 2025, 2024 and 2023 have a three-year measurement period starting on January 1, 2025, 2024 and 2023, respectively, going through December 31, 2027, 2026 and 2025, respectively. The performance metrics are based on Enact’s consolidated book value per share growth at the end of the performance period, calculated as the increase in book value divided by the average number of shares outstanding during the measurement period. The PSUs were granted at fair value as of the approval date by Enact Holdings’ Board of Directors.
In connection with cash dividends paid in 2025, 2024 and 2023, dividend equivalent shares were issued to RSU, PSU and DSU holders as of the dividend date. The declaration and payment of future dividends to holders of our common stock will be at the discretion of our board of directors.
The following table summarizes the status of the equity-based awards as of December 31, 2025:
RSUs | PSUs | DSUs | |||||||||||||||||||||||||||||||||
Awards in thousands | Number of awards | Weighted-average grant date fair value | Number of awards | Weighted-average grant date fair value | Number of awards | Weighted-average grant date fair value | |||||||||||||||||||||||||||||
| Balance as of January 1, 2023 | 1,009 | $ | 20.07 | 166 | $ | 22.15 | 100 | $ | 21.81 | ||||||||||||||||||||||||||
| Granted | 294 | $ | 24.26 | 157 | $ | 24.23 | 58 | $ | 23.80 | ||||||||||||||||||||||||||
| Dividend equivalents | 59 | $ | 26.82 | 16 | $ | 26.82 | 8 | $ | 26.97 | ||||||||||||||||||||||||||
| Exercised | (125) | $ | 21.84 | — | $ | — | — | $ | — | ||||||||||||||||||||||||||
| Terminated | (23) | $ | 20.61 | — | $ | — | — | $ | — | ||||||||||||||||||||||||||
| Balance as of December 31, 2023 | 1,214 | $ | 20.94 | 339 | $ | 23.16 | 166 | $ | 22.54 | ||||||||||||||||||||||||||
| Granted | 266 | $ | 27.64 | 250 | $ | 27.19 | 46 | $ | 31.53 | ||||||||||||||||||||||||||
| Dividend equivalents | 25 | $ | 32.05 | 13 | $ | 32.45 | 5 | $ | 26.92 | ||||||||||||||||||||||||||
| Exercised | (903) | $ | 20.02 | — | $ | — | — | $ | — | ||||||||||||||||||||||||||
| Terminated | (22) | $ | 23.99 | — | $ | — | — | $ | — | ||||||||||||||||||||||||||
| Balance as of December 31, 2024 | 580 | $ | 25.39 | 602 | $ | 24.87 | 217 | $ | 24.47 | ||||||||||||||||||||||||||
| Granted | 215 | $ | 33.07 | 220 | $ | 32.92 | 42 | $ | 35.73 | ||||||||||||||||||||||||||
Performance adjustments (1) | — | $ | — | 178 | $ | 22.15 | — | $ | — | ||||||||||||||||||||||||||
| Dividend equivalents | 12 | $ | 36.49 | 17 | $ | 36.16 | 5 | $ | 36.66 | ||||||||||||||||||||||||||
| Exercised | (312) | $ | 24.51 | (359) | $ | 22.15 | — | $ | — | ||||||||||||||||||||||||||
| Terminated | (3) | $ | 28.30 | — | $ | — | — | $ | — | ||||||||||||||||||||||||||
| Balance as of December 31, 2025 | 492 | $ | 29.38 | 658 | $ | 28.37 | 264 | $ | 26.30 | ||||||||||||||||||||||||||
(1) The performance adjustment relates to modifications made to the number of awards granted based on the extent to which certain performance metrics were achieved.
As of December 31, 2025 and December 31, 2024, total unrecognized share-based compensation expense related to non-vested awards not yet recognized was $18.4 million and $14.5 million, respectively. This expense is expected to be recognized over a weighted-average period of approximately two years.
The actual tax benefit realized for the tax deductions from the exercise of EHI share-based awards was $1.7 million for the year ended December 31, 2025.
Genworth share-based compensation
Certain Enact employees were historically granted share-based awards compensation under Genworth Financial, Inc. plans. As of December 31, 2025, all such awards granted to Enact employees were fully vested, and no Enact employee held any outstanding Genworth Financial, Inc. share-based awards.
Share-based compensation expense under the Genworth Financial, Inc. plans was $0.5 million, $0.5 million and $2.6 million for the years ended December 31, 2025, 2024 and 2023, respectively, and was included within acquisition and operating expenses, net of deferrals in the consolidated statements of income.
As of December 31, 2025, there was no unrecognized share-based compensation as all expense has been amortized.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 29, 2024 | |
| 2022 | Feb 28, 2023 | |
About Stock Compensation Disclosures
Stock-based compensation disclosures detail the equity awards granted to employees and executives — including stock options, restricted stock units (RSUs), and performance shares — along with the valuation methods and assumptions used to expense them. This section reveals the true cost of talent retention and the alignment between management incentives and shareholder interests.
Key signals: total unrecognized compensation expense and its expected recognition period signal future earnings headwinds from already-granted awards. For stock options, examine Black-Scholes assumptions — expected volatility, risk-free rate, and expected term — as understating any of these reduces reported compensation expense. Compare stock compensation expense as a percentage of revenue against peers to assess dilution cost. Watch vesting schedules for acceleration clauses tied to change-of-control events. Performance-based awards with undemanding targets may indicate weak governance. Add back stock compensation to operating cash flow to calculate a more conservative free cash flow figure.