The following table sets forth our liability for policy and contract claims as of the dates indicated:



(Amounts in millions)	June 30, 2026		December 31, 2025
Enact segment	$	599	$	572
Closed Block segment (1)	151		149
Other mortgage insurance business	7		6
Total liability for policy and contract claims	$	757	$	727

(1)Primarily includes balances related to our universal and term universal life insurance products.

The following table presents the balances of and changes in our liability for policy and contract claims as of and for the periods indicated:


	Six months ended June 30,
(Amounts in millions)		2026		2025
Beginning balance as of January 1		$	727	$	670
Less reinsurance recoverable		(21)		(24)
Net beginning balance		706		646
Incurred related to insured events of:
Current year		473		528
Prior years		(74)		(77)
Total incurred		399		451
Paid related to insured events of:
Current year		(246)		(255)
Prior years		(125)		(101)
Total paid		(371)		(356)

Net ending balance		734		741
Add reinsurance recoverable		23		22
Ending balance as of June 30		$	757	$	763

The liability for policy and contract claims represents our current best estimate; however, there may be future adjustments to this estimate and related assumptions. Such adjustments, reflecting any variety of new and adverse trends, could be significant and result in increases in reserves by an amount that could be material to our results of operations,

financial condition and liquidity. Given the extended period of time that may exist between the reporting of a delinquency and the claim payment in our Enact segment, and changes in economic conditions and the real estate market, significant uncertainty and variability exist on amounts actually paid.

The favorable development related to insured events of prior years for the six months ended June 30, 2026 was primarily attributable to reserve releases of $76 million in our Enact segment largely driven by favorable cure performance and loss mitigation activities.