Essent Group Ltd. Overview
Essent Group is one of the six active US private mortgage insurers and, by insurance in force, a top-tier franchise with roughly USD 250 billion of primary mortgage insurance outstanding. Founded in 2008 as the first de novo mortgage insurer after the global financial crisis, it built a clean-slate book unburdened by pre-crisis legacy losses and has compounded book value per share at a double-digit rate since its 2013 IPO. Its operating philosophy — "buy, manage and distribute" — combines risk-based pricing (the EssentEDGE engine), programmatic risk distribution through insurance-linked notes, excess-of-loss and quota share reinsurance, and a Bermuda reinsurance platform (Essent Re) that participates in GSE credit-risk transfer and, since Q1 2026, Lloyd's-backed property and casualty quota shares. A small title insurance business, acquired in 2023, provides housing-cycle optionality. The company is distinguished by sub-35% combined ratios in its core segment, low leverage (~8% debt-to-capital) and aggressive capital return.
Company's own description (10-K FY2025, paraphrased)
Essent describes itself as serving the housing finance industry by providing private mortgage insurance, reinsurance, and title insurance and settlement services to mortgage lenders, borrowers and investors in support of homeownership. As of the FY2025 10-K it reports two segments — Mortgage Insurance and Reinsurance — with title operations, holding-company treasury activity and unallocated corporate costs captured in a Corporate & Other category. Its mortgage insurance operations wrote USD 46.6 billion of new insurance (NIW) in 2025, USD 45.6 billion in 2024 and USD 47.7 billion in 2023, and it held USD 248.4 billion of mortgage insurance in force at year-end 2025.
What the company does
Private mortgage insurance (MI). In the United States, conventional mortgages with loan-to-value (LTV) ratios above 80% that are sold to Fannie Mae or Freddie Mac (the GSEs) must carry credit enhancement, which in practice is almost always borrower-paid private MI. The insurer pays the lender/investor a portion of the claim (typically 25–35% of the loan balance — Essent's weighted average coverage was 27.4% at year-end 2025) if the borrower defaults and the property is foreclosed or sold short. Premiums are overwhelmingly paid monthly (98.6% of 2025 NIW) and continue until the loan amortizes or appreciates to ~78–80% LTV, is refinanced, or is paid off. This produces a long-duration annuity-like revenue stream whose value depends on persistency (the share of the book still in force after 12 months: 85.7% at year-end 2025, 84.0% at 30 June 2026).
Reinsurance (Essent Re, Bermuda). Essent Reinsurance Ltd. (i) provides quota share reinsurance to its US affiliate Essent Guaranty (intra-group, eliminated on consolidation); (ii) assumes third-party mortgage credit risk, principally GSE credit-risk-transfer (CRT) transactions (Fannie Mae CIRT / Freddie Mac ACIS-type programs) and other mortgage risk share; (iii) provides fee-based managing general agency (MGA)-style services; and (iv) since Q1 2026, assumes property and casualty risks via quota share agreements backed by Funds at Lloyd's. Third-party reinsured mortgage risk in force was USD 2.27 billion at year-end 2025.
Title insurance and settlement services (in Corporate & Other). Agents National Title Insurance Company (a Missouri-domiciled underwriter writing through independent agents, licensed in 44 states at acquisition) and Boston National Title (an independent title agency and settlement services provider in North Carolina, licensed in 40 states plus DC at acquisition). Title net premiums earned were USD 17.5 million in Q2 2026.
Ancillary services. Contract underwriting for lenders and risk management/analytics services for financial institutions monitoring mortgage portfolios.
Revenue model
| Revenue type (FY2025, USD Mn) | Amount | % of total | Nature |
|---|---|---|---|
| Net premiums earned | 983.7 | 78.0 | Insurance premium (recurring, monthly-pay annuity-like) |
| Net investment income | 236.5 | 18.8 | Yield on USD 6.6B cash and investments |
| Income from other invested assets | 17.6 | 1.4 | Limited partnerships / alternative investments (fair-value driven) |
| Other income | 24.0 | 1.9 | Underwriting and service fees, title settlement fees, MGA fees, embedded derivative fair-value changes |
| Realized investment losses | -0.9 | -0.1 | Portfolio sales |
| Total revenues | 1,260.9 | 100.0 | — |
Source: Q4 2025 earnings release, Exhibit A. In product/service/subscription/licensing terms, Essent is ~78% insurance premium ("product"), ~20% investment income and ~2% fees/services ("service"); it has no licensing or subscription revenue.
Value chain position and customers
Essent sits between originating lenders (banks, independent mortgage banks, credit unions), which select an MI provider loan-by-loan (often via rate-card engines integrated into loan origination systems and pricing engines), and the GSEs, which set eligibility standards for MI counterparties (PMIERs — Private Mortgage Insurer Eligibility Requirements). The ultimate economic payer is the borrower (borrower-paid MI). On the back end, Essent lays off risk to capital markets investors (Radnor Re insurance-linked notes) and traditional reinsurers (excess-of-loss and quota share panels). Its customers are therefore lenders (distribution), the GSEs (counterparty/standard-setter), and — for Essent Re — the GSEs and Lloyd's syndicates as cedents.
Independent characterization
Essent is best understood as a monoline residential credit insurer with a capital-light distribution overlay and a nascent diversified reinsurance option. Economically, the core business is a short-tail-funded, long-tail-exposed credit derivative on US home prices and employment, priced through a risk-based engine and hedged roughly 30–40% via reinsurance. Earnings quality is unusually high in benign credit conditions (MI combined ratio of 32.9% in FY2025 and 28.4% in Q2 2026), and investment income has become a larger contributor since 2022 as yields rose. The key strategic tension is that the MI franchise is a slow-growing, fully penetrated oligopoly (insurance in force grew only ~2% in 2025), so incremental shareholder value comes chiefly from (a) per-share accretion via buybacks, (b) favorable reserve development, and (c) optional growth vectors — Essent Re's P&C expansion and title — that management deploys cautiously.
Strategy
Stated strategy (paraphrased themes from 10-K FY2025, earnings calls and press releases)
-
"Buy, manage and distribute" operating model. Underwrite high-quality mortgage credit at risk-adjusted prices (buy), actively manage the portfolio and capital (manage), and distribute a meaningful share of risk to reinsurers and capital markets (distribute). Management repeatedly credits this model for durability through cycles.
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Risk-based pricing discipline. EssentEDGE enables granular pricing; management prioritizes returns over market share (Casale has publicly downplayed quarter-to-quarter share shifts).
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Programmatic reinsurance. Continuous use of ILNs, XOL and quota share (~93% of the portfolio reinsured at YE2023 per management) to reduce tail risk, PMIERs capital and earnings volatility. Forward quota shares cover 25% of 2025–2026 production.
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Balanced capital management. Maintain strong PMIERs excess (172% sufficiency, USD 1.5B excess at 30 June 2026), hold ample holding-company liquidity, grow the dividend (raised every year since inception of payments in 2019), and repurchase shares opportunistically.
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Franchise extension into adjacent risk. Title insurance (2023) and Lloyd's P&C reinsurance via Essent Re (2026) — both pitched as leveraging Essent's capital, lender relationships and underwriting expertise.
Strategic initiatives — last 24 months
| Date | Initiative | Detail / target |
|---|---|---|
| Jul 2024 | Capital structure refinancing | USD 500M 6.25% notes due 2029 replace secured term loan; USD 500M unsecured revolver |
| Q1 2025 | Forward quota share program | Two forward QS deals ceding 25% of eligible 2025–2026 NIW; two XOL deals covering 20% |
| Feb 2025 | Capital return | USD 500M buyback authorization through YE2026 |
| Nov 2025 | Capital return | Additional USD 500M buyback through YE2027 |
| Q4 2025 | Essent Re P&C diversification | Funds at Lloyd's-backed quota shares effective Q1 2026; new Reinsurance segment |
| Q4 2025 | Additional MI quota share | Agreement with panel of highly rated reinsurers |
| Feb 2026 | Dividend growth | Quarterly dividend +13% to USD 0.35 |
| 2025–2026 | Expense discipline | MI expense ratio 14.8% in Q2 2026 vs 15.3% in Q2 2025; consolidated opex down 5.1% in FY2025 |
Medium-term targets and guidance
Essent does not publish numerical medium-term financial targets (no ROE, EPS or premium growth targets). Qualitative guidance from the Q4 2025 and Q2 2026 calls: modest growth in earned premium and insurance in force near term given high mortgage rates and a smaller origination market; persistency expected to remain elevated; portfolio growth expected to pause as affordability constrains originations; long-term positive outlook for housing and MI as affordability improves. Average base premium rate has been stable at 41 bps for at least five quarters.
Products & Services
Mortgage Insurance segment (Essent Guaranty, Inc.)
| Product / service | Description and specifications | Target customer | Pricing model | Notes |
|---|---|---|---|---|
| Borrower-paid monthly premium MI (BPMI monthly) | Primary flow MI on conventional, GSE-conforming high-LTV loans; coverage typically 25–35%; cancellable at 78–80% LTV under the Homeowners Protection Act / GSE rules | Lenders originating >80% LTV conventional loans; first-time homebuyers | Risk-based monthly premium via EssentEDGE (rates vary by FICO, LTV, DTI, loan attributes) | 98.6% of 2025 NIW; base average premium rate 41 bps of IIF |
| Single premium MI (borrower- or lender-paid) | One-time upfront premium, non-refundable (or refundable) | Lenders/borrowers preferring no monthly MI; LPMI structures | Upfront % of loan amount | 1.4% of 2025 NIW; deliberately de-emphasized since late 2010s due to prepayment sensitivity |
| Split premium MI | Combination of upfront and lower monthly premium | Borrowers optimizing DTI | Hybrid | Share not separately disclosed |
| Lender-paid MI (LPMI) | Lender pays premium, recovered through rate | Lenders | Single or monthly | Share not separately disclosed |
| Pool / other MI | Pool insurance and non-standard structures | Investors | Negotiated | Immaterial; not separately disclosed |
| EssentEDGE | Proprietary risk-based pricing engine integrated with lender pricing and loan origination systems; granular, attribute-level rate selection | Lenders and their pricing engines | Embedded in MI pricing | Launched ~2019; cited by S&P (Jan 2024) as a factor supporting credit quality |
| Contract underwriting | Essent underwrites loans on lenders' behalf to agency guidelines, with remedies for underwriting errors | Lenders lacking underwriting capacity | Fee per loan | Included in other income |
| Risk management and analytics services | Tools and services to monitor and manage mortgage portfolios | Financial institutions | Fee-based | Not separately quantified |
| Delegated / non-delegated underwriting channels | Lenders either self-certify eligibility (delegated) or submit loans to Essent (non-delegated) | Lenders | — | Distribution mechanism |
Book characteristics (YE2025, Q4 2025 supplement). IIF USD 248.4B; gross risk in force USD 68.1B; net risk in force (after reinsurance) USD 56.5B; 807,230 policies; weighted average FICO 747; weighted average LTV 93%; 97.2% of IIF in 30-year+ fixed-rate mortgages; 2025 NIW weighted FICO 754 and 51.4% of NIW at FICO ≥760; 87.2% of 2025 NIW purchase (12.8% refinance, up from 5.0% in 2024 as rates eased in late 2025).
Reinsurance segment (Essent Reinsurance Ltd.)
| Product / service | Description | Counterparties | Launch | Notes |
|---|---|---|---|---|
| GSE credit-risk-transfer reinsurance | Participation in Fannie Mae / Freddie Mac CRT reinsurance programs on high-quality conforming loans | Fannie Mae, Freddie Mac | Mid-2010s | Reinsured RIF USD 2.27B at YE2025; weighted FICO 751, LTV 83% |
| Other mortgage risk share | Third-party mortgage credit reinsurance | Mortgage credit counterparties | — | Included in Reinsurance segment |
| P&C quota share via Funds at Lloyd's | Quota share participation in Lloyd's syndicate business supported by Funds at Lloyd's | Lloyd's syndicates (names not publicly disclosed) | Effective Q1 2026 | Drove H1 2026 reinsurance NPW of USD 248.8M |
| MGA / fee-based services | Fee-earning underwriting and management services | — | ~2022–2023 | Management cited MGA expansion in Q4 2023 commentary |
| Affiliate quota share | Reinsures part of Essent Guaranty's business (intra-group) | Essent Guaranty | 2010s | Eliminated on consolidation; drives Essent Re net RIF of USD 25.9B |
Corporate & Other — Title insurance
| Product / service | Description | Target customer | Notes |
|---|---|---|---|
| Agents National Title — title insurance underwriting | Owner's and lender's title policies issued through independent title agents | Title agents; lenders; homebuyers | Licensed in 44 states at acquisition; generated USD 144.1M title premiums in 2021 under prior ownership |
| Boston National Title — agency and settlement | Title search, closing, escrow and settlement services | Lenders, borrowers (purchase and refinance) | Licensed in 40 states plus DC at acquisition |
| Digital lender connectivity | Integration of title ordering with lender systems | Lenders | Referenced in 10-K business description |
Title net premiums earned were USD 17.5M in Q2 2026; Corporate & Other net premiums earned (substantially title) were USD 56.4M in FY2025 vs USD 66.2M in FY2024.
Capital-markets risk distribution "products" (outward)
| Program | Structure | Status (YE2025) |
|---|---|---|
| Radnor Re ILNs (2021-1, 2021-2, 2022-1, 2023-1, 2024-1) | Mortgage insurance-linked notes issued by unaffiliated SPIs; mezzanine coverage above first-loss retention | Remaining reinsurance in force USD 878M; PMIERs credit USD 735M |
| Excess-of-loss panels (XOL 2019-1 through XOL 2025-1) | Traditional reinsurer panels | Remaining reinsurance in force USD 418M; PMIERs credit USD 301M |
| Quota share (QSR-2019; 2022 20%; 2023 17.5%; 2024 15%; 2025 25%) | Proportional cession with ceding commission | Remaining ceded RIF USD 10.2B; PMIERs credit USD 734M |
| Forward quota shares 2025–2026 | 25% of eligible policies written in 2025 and 2026 | Placed Q1 2025 |
| New quota share (Q4 2025) | Agreement with highly rated third-party reinsurers (terms in Q4 2025 release) | Placed Q4 2025 |
Financial Narrative
Income statement
Sources: Essent Q4 2022, Q4 2023, Q4 2025 earnings releases (net income, EPS); 10-K FY2022 and 10-Q filings (dividends); pre-tax income FY2021–FY2024 and FY2021–FY2022 revenues per TipRanks/edgar.tools aggregators cross-checked to filings; ratios derived. Discrepancy note: TipRanks shows FY2022 revenue of ~USD 1.02B and FY2021 ~USD 1.03B, while edgar.tools shows USD 1,001M and USD 1,029M; the edgar.tools series is used because it ties exactly to Essent's reported FY2024 total (USD 1,242.9M).
Revenue CAGR FY2021–FY2025: ~5.2% (derived). FY2022 revenue dipped because of realized investment losses and lower premiums as quota share cessions rose; growth since FY2023 has been driven by investment income (NII up ~50% in FY2023 to USD 186.1M, to USD 222.1M in FY2024 and USD 236.5M in FY2025).
Earnings drivers. FY2022 is the anomalous peak: a USD 174.7M benefit from reserve releases (provision for losses was negative) as COVID-era forbearance defaults cured at far better rates than reserved. FY2023 normalized (provision USD 31.5M), FY2024 provision USD 81.2M, FY2025 provision USD 149.3M. The upward drift in provisions — reflecting seasoning of the 2022–2024 vintages, hurricane-related defaults (Helene/Milton, Q4 2024) and less favorable prior-year development — is the principal reason net income has trended sideways despite growing investment income. Diluted EPS nevertheless rose in FY2025 (+0.7%) because diluted share count fell 6.1% on buybacks.
Key income statement components (FY2024–FY2025)
Source: Q4 2025 earnings release, Exhibit A. Operating expenses fell 5.1% in FY2025, a notable discipline point (compensation and benefits down to USD 130.0M from USD 136.4M).
EBITDA and gross profit — N/M. Insurers do not report gross profit; aggregator-derived "EBITDA" (e.g., TipRanks: USD 834M FY2021, USD 1,010M FY2022, USD 858M FY2023, USD 897M FY2024) is essentially pre-tax income plus interest and small depreciation and is not used by management or rating agencies. The EBIT proxy above is provided for comparability only.
Balance sheet
Sources: FY2023–FY2025 equity and assets from Essent releases; FY2021–FY2022 from edgar.tools (EDGAR-derived); debt principal from 10-K/8-K (term loan ~USD 425M repaid July 2024 from the USD 500M notes). The FY2022 OCI loss of USD 433M (rate-driven unrealized losses on bonds) is why equity growth lagged net income that year.
Source: Q4 2025 earnings release, Exhibits B and C. Net debt in the industrial sense is not meaningful for an insurer whose investment portfolio backs policyholder liabilities; the relevant metric is holding-company liquidity, which exceeded the USD 500M of notes by ~USD 769M at YE2025. Working capital and current ratio: N/M — insurers present unclassified balance sheets.
30 June 2026 update: total assets USD 7,591.9M; total liabilities USD 1,928.5M; equity USD 5,663.4M; total investments USD 6,480.5M; BVPS USD 63.01; holding-company cash and investments ~USD 1.1B; USD 500M revolver undrawn (Q2 2026 supplement and call).
Cash flow and capital return
Source: StockTaper aggregator (from 10-Q). Full-year FY2021–FY2025 operating cash flow was not captured in the sources reviewed and is therefore not tabulated; it is disclosed in each 10-K.
Capex — N/M: property, equipment and software rose to USD 49.2M from USD 41.9M (FY2025), implying low single-digit tens of millions of annual technology spend; not separately disclosed as capex. Free cash flow: for an insurer, the relevant measure is subsidiary dividend capacity. Essent Guaranty paid USD 85M (Q3 2025) and USD 280M (Q4 2025) to its US holding company; Essent Re paid USD 120M (Q3 2025) and USD 100M (Q4 2025) to Essent Group.
Return and efficiency ratios
Company-reported return on average equity: ~15% (FY2023), 13.6% (FY2024), 12.1% (FY2025), 13.4% annualized (Q2 2026). ROIC (derived, NOPAT ≈ net income + after-tax interest over equity + debt): ~12.3% FY2025 vs ~13.3% FY2024. Net debt/EBITDA and cash conversion cycle: N/M. Reported debt-to-capital: 8.19% (YE2024), 7.99% (YE2025).
Trend commentary
The five-year arc shows a business that generated USD 3.6 billion of cumulative net income (FY2021–FY2025) on a revenue base that grew only ~5% per year, with returns gradually compressing from the high teens to ~12% as (i) reserve releases faded, (ii) the equity base grew faster than earnings, and (iii) ceded premiums rose (quota share cession lifted to 25% for 2025–2026 production). Management's response — returning more than 100% of FY2025 net income via dividends and buybacks — arrested the ROE decline in H1 2026 (13.4% annualized in Q2 2026). The key inflection to watch is whether the 2026 rebound in EPS (H1 2026 diluted EPS USD 3.90 vs USD 3.62 in H1 2025) is durable, given that part of Q2 2026's strength came from USD 19.4M of fair-value gains on other invested assets and an unusually low MI loss provision (USD 29.4M).
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View Subscription PlansFinancial Detail
Group Entities
| Entity | Domicile | Role |
|---|---|---|
Essent Group Ltd. | Bermuda | Listed holding company; issuer of 2029 senior notes; revolver borrower |
Essent Reinsurance Ltd. ("Essent Re") | Bermuda | Affiliate and third-party reinsurer; GSE risk share; Lloyd's P&C quota shares; GAAP equity USD 1.70B at YE2025 |
Essent Irish Intermediate Holdings Limited | Ireland | Intermediate holding company |
Essent US Holdings, Inc. | United States | US intermediate holding company; acquirer of title businesses |
Essent Guaranty, Inc. | Pennsylvania (HQ Radnor, PA) | Primary US mortgage insurer; statutory capital USD 3.57B at YE2025 |
Essent Guaranty of PA, Inc. | Pennsylvania | Affiliate MI entity (used historically in combined risk-to-capital calculations) |
Agents National Title Insurance Company (and holding co.) | Missouri | Title insurance underwriter |
Boston National Title (Boston National Holdings LLC) | North Carolina | Title agency and settlement services |
Radnor Re special purpose insurers | Bermuda | Unaffiliated SPIs issuing mortgage ILNs to capital markets |
Revenue by Segment
| Metric (USD Mn) | FY2024 | FY2025 |
|---|---|---|
Mortgage Insurance — net premiums earned | 855.8 | 866.7 |
Mortgage Insurance — total revenues | 1,030.0 | 1,053.6 |
Mortgage Insurance — pre-tax income | 804.9 | 768.3 |
Reinsurance — net premiums earned | 68.9 | 60.6 |
Reinsurance — total revenues | 97.0 | 89.6 |
Reinsurance — pre-tax income | 87.4 | 77.6 |
Corporate & Other — net premiums earned (mainly title) | 66.2 | 56.4 |
Corporate & Other — total revenues | 115.9 | 117.7 |
Corporate & Other — pre-tax income (loss) | -36.8 | -24.1 |
Consolidated total revenues | 1,242.9 | 1,260.9 |
Consolidated pre-tax income | 855.5 | 821.9 |
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View Subscription PlansSegment ratio / share (%)
| Segment ratio / share (%) | FY2024 | FY2025 |
|---|---|---|
Mortgage Insurance — share of total revenues | 82.9 | 83.6 |
Reinsurance — share of total revenues | 7.8 | 7.1 |
Corporate & Other — share of total revenues | 9.3 | 9.3 |
Mortgage Insurance — pre-tax margin on revenues | 78.1 | 72.9 |
Reinsurance — pre-tax margin on revenues | 90.1 | 86.7 |
Mortgage Insurance — loss ratio | 8.8 | 16.8 |
Mortgage Insurance — expense ratio | 17.5 | 16.1 |
Mortgage Insurance — combined ratio | 26.3 | 32.9 |
Reinsurance — combined ratio | 13.9 | 19.7 |
Revenue by Segment (Half-Yearly)
| Metric (USD Mn) | H1 2025 | H1 2026 |
|---|---|---|
Mortgage Insurance — total revenues | 534.6 | 539.2 |
Reinsurance — total revenues | 44.5 | 87.0 |
Corporate & Other — total revenues | 57.6 | 72.5 |
Consolidated total revenues | 636.7 | 698.8 |
Results by Segment and Revenue by Segment (%)
| Metric (USD Mn) | Q1 2025 | Q2 2025 | Q3 2025 | Q4 2025 |
|---|---|---|---|---|
MI net premiums earned | 218.1 | 220.3 | 215.7 | 212.7 |
MI provision for losses | 30.7 | 15.3 | 44.2 | 55.2 |
MI pre-tax income | 193.9 | 220.1 | 184.4 | 169.8 |
MI combined ratio (%) | 32.9 | 22.3 | 34.9 | 42.0 |
Reinsurance pre-tax income | 20.9 | 18.3 | 20.1 | 18.4 |
Corporate & Other pre-tax loss | -7.8 | -7.3 | -5.3 | -3.7 |
Income Statement and Per-Share Data
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Total revenues (USD Mn) | 1,029 | 1,001 | 1,110 | 1,243 | 1,261 |
Income before income taxes (USD Mn) | 822.3 | 988.2 | 823.0 | 855.5 | 821.9 |
Income tax expense (USD Mn, derived) | 140.5 | 156.8 | 126.6 | 126.1 | 131.9 |
Net income (USD Mn) | 681.8 | 831.4 | 696.4 | 729.4 | 690.0 |
Diluted EPS (USD) | 6.11 | 7.72 | 6.50 | 6.85 | 6.90 |
Basic EPS (USD) | 6.13 | 7.75 | 6.56 | 6.92 | 6.97 |
Dividends declared per share (USD) | 0.70 | 0.86 | 1.00 | 1.12 | 1.24 |
Weighted diluted shares (M) | 111.56 | 107.65 | 107.13 | 106.55 | 100.02 |
Pre-tax margin (%) | 79.9 | 98.7 | 74.1 | 68.8 | 65.2 |
Net margin (%) | 66.3 | 83.1 | 62.7 | 58.7 | 54.7 |
Effective tax rate (%) | 17.1 | 15.9 | 15.4 | 14.7 | 16.0 |
Income Statement and Financial Ratios (x)
| Metric (USD Mn) | FY2024 | FY2025 |
|---|---|---|
Direct premiums written | 1,098.6 | 1,107.3 |
Ceded premiums | 132.0 | 147.9 |
Net premiums written | 966.6 | 959.5 |
Net premiums earned | 990.9 | 983.7 |
Net investment income | 222.1 | 236.5 |
Income from other invested assets | 7.4 | 17.6 |
Other income | 24.9 | 24.0 |
Provision for losses and LAE | 81.2 | 149.3 |
Other underwriting and operating expenses | 270.9 | 257.0 |
Interest expense | 35.3 | 32.7 |
Pre-tax income plus interest expense (EBIT proxy) | 890.8 | 854.6 |
Interest coverage (x, derived) | 25.2 | 26.1 |
Balance Sheet and Margin Analysis (%)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Total investments (USD Mn) | 5,133 | 5,000 | 5,541 | 6,181 | 6,487 |
Total assets (USD Mn) | 5,722 | 5,724 | 6,427 | 7,112 | 7,441 |
Total liabilities (USD Mn) | 1,486 | 1,261 | 1,324 | 1,508 | 1,684 |
Total stockholders' equity (USD Mn) | 4,236 | 4,462 | 5,103 | 5,604 | 5,757 |
Total debt, principal (USD Mn) | 425 | 425 | 425 | 500 | 500 |
Debt-to-equity (%) | 10.0 | 9.5 | 8.3 | 8.9 | 8.7 |
Other comprehensive income (USD Mn) | -88 | -433 | 102 | -23 | 152 |
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View Subscription PlansBalance Sheet and Share Count (M)
| Additional balance sheet items (USD Mn) | FY2024 | FY2025 |
|---|---|---|
Cash | 131.5 | 123.0 |
Total cash and investments | 6,312.1 | 6,609.6 |
Goodwill and acquired intangibles | 79.6 | 78.2 |
Reserve for losses and LAE | 328.9 | 446.8 |
Unearned premium reserve | 116.0 | 91.7 |
Prepaid federal income tax (tax and loss bonds) | 489.6 | 513.4 |
Net deferred tax liability | 392.4 | 465.4 |
Senior notes due 2029, net | 494.0 | 495.3 |
Holding company cash and investments | 1,052.9 | 1,268.6 |
Holding company net cash after debt (derived) | 552.9 | 768.6 |
Common shares outstanding (M) | 105.0 | 95.5 |
Book value per share (USD) | 53.36 | 60.31 |
Cash Flow
| Metric (USD Mn) | Q1 2025 | Q1 2026 |
|---|---|---|
Cash from operations | 221.6 | 192.0 |
Cash from investing | 55.5 | 16.6 |
Cash from financing | -200.5 | -203.4 |
Capital return (USD Mn)
| Capital return (USD Mn) | FY2025 |
|---|---|
Share repurchases (approximate, derived from 10-K/10-Q authorization usage) | 570 |
Common dividends paid (approximate, USD 1.24 × ~99M average shares) | 123 |
Total returned (company: "nearly USD 700 million") | 693 |
Shares retired in year (M, 105.0 to 95.5) | 9.5 |
Returns & Leverage Ratios (%) and Financial Ratios (x)
| Ratio (%) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
ROE on year-end equity (derived) | 16.1 | 18.6 | 13.6 | 13.0 | 12.0 |
ROA on year-end assets (derived) | 11.9 | 14.5 | 10.8 | 10.3 | 9.3 |
Asset turnover (revenue / year-end assets) | 18.0 | 17.5 | 17.3 | 17.5 | 16.9 |
State share of IIF (%)
| State share of IIF (%) | Dec 2024 | Sep 2025 | Dec 2025 |
|---|---|---|---|
California | 12.5 | 12.2 | 12.1 |
Florida | 11.9 | 12.0 | 12.0 |
Texas | 11.1 | 11.3 | 11.4 |
Arizona | 3.8 | 4.0 | 4.0 |
Colorado | 4.1 | 4.0 | 4.0 |
Georgia | 3.7 | 3.8 | 3.9 |
Washington | 3.4 | 3.4 | 3.4 |
North Carolina | 3.0 | 3.1 | 3.2 |
Michigan | 2.5 | 2.6 | 2.6 |
New York | 2.6 | 2.6 | 2.6 |
All others | 41.4 | 41.0 | 40.8 |
Capital Markets
| Item | Value |
|---|---|
Share price | USD 64.70 |
52-week range | USD 55.34 – USD 70.37 |
Market capitalization | ~USD 5.8B |
Trailing P/E (TTM diluted EPS USD 7.17, derived from Q3 2025–Q2 2026) | ~9.0x (reported 9.02x) |
Price / book (30 June 2026 BVPS USD 63.01) | ~1.03x |
Dividend yield (USD 1.40 annualized) | ~2.2% (aggregator trailing: 2.0%) |
EV/EBITDA, EV/Sales | N/M for insurers; EV ≈ market cap + USD 500M debt − holdco cash (~USD 1.1B) ≈ USD 5.2B; EV / FY2025 revenue ≈ 4.1x (derived) |
Consensus FY2026 EPS | ~USD 7.60 (MarketBeat compilation) |
Forward P/E on consensus | ~8.5x (derived) |
Analyst Ratings & Targets
| Broker | Rating | Price target (USD) | Date |
|---|---|---|---|
Roth Capital | Buy | 80 | 10 Aug 2026 |
Keefe, Bruyette & Woods | Outperform | 78 | 10 Aug 2026 |
RBC Capital Markets | Sector Perform / Hold | 75 (maintained) | 12 Oct 2026 |
JPMorgan (Richard Shane) | Neutral | 66 (from 72) | 12 Oct 2026 |
Barclays | Equal Weight | 66 (from 65) | 5 Oct 2026 |
BTIG | Hold (initiation) | Not captured | 22 Sep 2026 |
Another broker (name not captured) | Neutral | 72 (from 65) | 13 Jul 2026 |
Consensus (MarketBeat) | — | 72 | Oct 2026 |
Per-Share Data and Returns & Leverage Ratios (%)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Dividends declared per share (USD) | 0.70 | 0.86 | 1.00 | 1.12 | 1.24 |
Diluted EPS (USD) | 6.11 | 7.72 | 6.50 | 6.85 | 6.90 |
Payout ratio (%, derived) | 11.5 | 11.1 | 15.4 | 16.4 | 18.0 |
Book value per share (USD)
| Book value per share (USD) | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
Book value per share | 47.87 | 53.36 | 60.31 |
Authorization Details
| Authorization | Amount (USD Mn) | Period | Status |
|---|---|---|---|
Plan through 2021 | 250 | — | USD 157.8M used in 2021; USD 92.2M remaining at YE2021 |
October 2023 | 250 | 1 Jan 2024 – 31 Dec 2025 | Completed Q1 2025 |
February 2025 | 500 | Through 31 Dec 2026 | ~USD 72M remaining at YE2025 |
November 2025 | 500 | Through 31 Dec 2027 | Combined remaining USD 527.2M at 31 Jan 2026; 2026 usage ~USD 348M through 31 Jul 2026 implies roughly USD 220–230M remaining at end-July (derived) |
Entity / Instrument Details
| Entity / instrument | Moody's | S&P | AM Best |
|---|---|---|---|
Essent Guaranty, Inc. (IFS) | A2 (upgraded 6 Aug 2025 from A3) | A- (stable; upgraded 9 Jan 2024 from BBB+) | A (Excellent) |
Essent Reinsurance Ltd. (IFS) | Not captured | A- (stable; upgraded 9 Jan 2024) | A (Excellent) |
Essent Group Ltd. senior notes (6.25% 2029) | Investment grade (specific rating not captured) | Investment grade (specific rating not captured) | — |
Capital Instruments
| Instrument | Principal (USD Mn) | Coupon | Maturity | Notes |
|---|---|---|---|---|
Senior unsecured notes | 500 | 6.250% fixed, semi-annual | 1 Jul 2029 | Par call from 1 Jun 2029; net carrying value USD 495.3M at YE2025 |
Unsecured revolving credit facility | 0 drawn of 500 | Floating (rating-based margin) | ~Jul 2029 (five-year from Jul 2024) | Undrawn at 30 Jun 2026 |
Analyst Conclusions
Management guidance (qualitative)
-
Modest growth in earned premium and insurance in force given high mortgage rates and smaller originations (Q4 2025 call).
-
Persistency to remain elevated; portfolio growth expected to pause as affordability constrains originations (Q2 2026 call).
-
Average base premium rate broadly stable (41 bps for five-plus consecutive quarters).
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Continued balanced capital management: dividends plus buybacks within authorization (USD 1B authorized across 2025–2027).
-
No numerical EPS, ROE or premium guidance is provided.
Consensus expectations
FY2026 consensus diluted EPS ~USD 7.60 (implies ~10% growth vs FY2025's USD 6.90, driven mainly by share count reduction and investment income); H1 2026 actual EPS of USD 3.90 requires ~USD 3.70 in H2 to meet consensus. Aggregator expectation of ~3.7% EPS growth for the following year suggests consensus sees 2027 as flatter.
Bull case
-
Per-share compounding engine: retiring ~10% of shares annually at ~1.0x book while earning a 12–13% ROE mechanically drives low-to-mid-teens BVPS growth (13% in FY2025; ~13% YoY at Q2 2026), and the shares trade at only ~9x earnings.
-
Credit remains benign and reserves are conservative: prior-year development has been favorable every quarter of 2025; the 2025 vintage (NIW FICO 754, 14.3% incurred loss ratio to date) is the highest quality in years; PMIERs excess of USD 1.5B is a buffer.
-
Optionality from diversification: Essent Re's Lloyd's quota shares grew reinsurance NPW eightfold in H1 2026; a housing recovery would lift both NIW and title earnings from depressed levels, while higher-for-longer rates support persistency and investment yields.
Bear case
-
Credit normalization is underway: default rate rose from 2.27% to 2.53% in 18 months, severity jumped to 80%, and the 2022–2024 vintages (bought at peak prices, 20–24% incurred loss ratios to date) are entering peak loss years; MI loss ratio already doubled in FY2025.
-
Growth stagnation and share loss: IIF grew <2% in FY2025, NIW lagged peers growing ~20%, and FHA is taking share; without top-line growth, buybacks merely shrink a static franchise.
-
Diversification may dilute quality: P&C reinsurance brings catastrophe and casualty-reserving risk with a ~78% combined ratio versus <30% in MI; title remains loss-making; and the 2026 EPS beat partly relied on non-recurring fair-value gains (USD 19.4M in Q2 2026).
Catalysts and monitorables (next 12 months)
| Catalyst / monitorable | Timing | What to watch |
|---|---|---|
| Q3 2026 results | 6 Nov 2026 | Seasonal default uptick, MI provision, reinsurance combined ratio, Q3 buyback pace |
| FY2026 results and 2027 dividend decision | Feb 2027 | Dividend raise (pattern: +10–13%), new buyback authorization |
| 2027 reinsurance program | Q4 2026 – Q1 2027 | Renewal of forward quota shares, new XOL/ILN; pricing of cessions |
| Default rate and cure trends | Monthly / quarterly | New defaults vs cures; severity; Florida/Texas performance |
| Hurricane season impact | Q3–Q4 2026 | Disaster-related defaults (temporary) |
| GSE reform / FHA pricing | Ongoing | Any PMIERs, LLPA or conservatorship changes |
| Lloyd's P&C performance | Quarterly | Combined ratio trajectory, catastrophe losses, capital deployed |
| Mortgage rates and housing turnover | Ongoing | Purchase originations, refi share, persistency |
| Ratings | Ongoing | Any further Moody's/S&P action (positive outlook would be a catalyst) |
| Insider activity | Ongoing | CEO selling cadence |
Analyst verdict
Essent Group enters late 2026 as one of the highest-quality balance sheets in US financial services: an A2/A- rated mortgage guarantor with ~8% debt-to-capital, USD 1.5 billion of PMIERs excess, holding-company liquidity of ~USD 1.1 billion, and a mortgage insurance segment that converted 73% of its revenue into pre-tax income in FY2025. The franchise has proven its resilience — cumulative net income of USD 3.6 billion over five years, book value per share up 13% in each of the last two years, and nearly USD 700 million returned to shareholders in 2025 alone.
The investment debate is not about solvency or franchise durability but about growth and the credit cycle. Essent's core market is mature and price-competitive; insurance in force barely grew in 2025, and peers outgrew it on new business. Meanwhile, the inevitable normalization of losses from historically low levels has begun: provisions nearly doubled in 2025 and the default rate continues to drift higher as the large 2022–2024 vintages season. Management's answer is twofold — relentless per-share accretion through buybacks at roughly book value, and measured diversification via Essent Re's Lloyd's quota shares and title. The former is demonstrably value-creating at ~1.0x book and ~9x earnings; the latter is strategically sensible but unproven, and the early P&C combined ratio (~78%) is a reminder that Essent is a newcomer in that market.
At ~USD 65, the shares discount a meaningful deterioration in credit that is not yet visible in claims (paid claims remain modest and cure rates high). For investors with a two-to-three-year horizon, the combination of mid-teens BVPS compounding, a 2% growing dividend, and downside protection from conservative reserves and reinsurance supports a constructive, if not aggressive, stance — fairly characterized as accumulate on weakness. The key risks to that view are a US recession with falling Sun Belt home prices, adverse GSE policy change, or a costly P&C catastrophe year at Essent Re.
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View Subscription PlansExecutive Leadership
Executive Leadership Team
| Name | Title | Tenure / background | Age | Notes |
|---|---|---|---|---|
Mark A. Casale | Founder, Chairman and Chief Executive Officer (also referred to as President in some 2026 coverage) | — | ~60–61 | Directly owns ~2.5% of shares (Simply Wall St) |
David B. Weinstock | Senior Vice President and Chief Financial Officer | Signs SEC filings as CFO; long-tenured Essent finance executive | — | Leads earnings calls with Casale |
Lawrence E. McAlee | Named executive officer (former CFO; current senior role per 2026 proxy) | Founding-era finance leader | Not captured | 2025 NEO |
Jeff Cashmer | Named executive officer (senior business leadership, Essent Guaranty) | Not captured in detail | Not captured | 2025 NEO |
Vijay Bhasin | Senior Vice President, Chief Risk Officer | Risk leadership | Not captured | 2025 NEO |
Mary Lourdes Gibbons | Senior Vice President, Chief Legal Officer (Section 16 officer) | Legal | Not captured | Form 4 sale July 2026 |
“—” = not publicly disclosed.
Directors' Remuneration
| CEO compensation component (USD) | FY2024 | FY2025 |
|---|---|---|
Summary Compensation Table total | 9,783,714 | 10,039,676 |
Compensation actually paid (SEC CAP) | 12,661,426 | 22,387,902 |
Average other NEO total compensation | 2,240,511 | 2,237,627 |
Average other NEO compensation actually paid | 2,813,691 | 3,702,697 |
Mark Casale FY2025 component | USD | — |
Salary | 1,000,000 | — |
Bonus | 0 | — |
Stock awards | 5,124,644 | — |
Option awards | 0 | — |
Non-equity incentive plan compensation | 3,062,500 | — |
All other compensation | 852,532 | — |
Total | 10,039,676 | — |
Board of Directors
| Director | Role / notes | Status in sources |
|---|---|---|
Mark A. Casale | Chairman (combined Chair/CEO); Class III, re-elected May 2026 | Verified |
Douglas J. Pauls | Independent; Class III nominee, 2026 | Verified (2026 ballot) |
Third Class III nominee 2026 | Name truncated in source | — |
Aditya Dutt | Independent director | Verified (Form 4, May 2026) |
William Spiegel | Independent director (long-serving, sponsor-era) | Verified (Form 4, May 2026) |
Anu (Henna) Karna | Independent director | Verified (Form 4) |
David C. Benson | Independent director | Verified (Form 4) |
Martin P. Connor | Independent; joined 20 Feb 2026; former Toll Brothers CFO (2010–2025), 20+ years at Ernst & Young (real estate practice partner, Philadelphia) | Verified |
Other directors (historically including Roy J. Kasmar, Angela L. Heise, Jane P. Chwick, Robert Glanville, Allan Levine) | Independent | — |
Board & Management Changes
| Date | Change |
|---|---|
20 Feb 2026 | Martin Connor appointed to the Board (adds homebuilder CFO and audit expertise) |
6 May 2026 | Class III directors re-elected; PwC re-appointed |
Jul 2026 | CEO sold ~31k shares (7 July) and further shares on 13–14 July (~USD 1.6M and ~USD 5.1M, per Form 4 trackers); CLO sold ~USD 314k (17 July) |
Major Shareholders
| Holder | Shares (M) | % of 95.46M shares outstanding (derived) |
|---|---|---|
BlackRock, Inc. | 13.08 | 13.7 |
Vanguard Group | 11.99 | 12.6 |
Dimensional Fund Advisors | 5.40 | 5.7 |
FMR LLC (Fidelity) | 5.02 | 5.3 |
Capital World Investors | 4.76 | 5.0 |
State Street Corp | 3.78 | 4.0 |
Geode Capital Management | 3.08 | 3.2 |
Nomura Asset Management International | 2.71 | 2.8 |
Polar Capital Holdings | 2.45 | 2.6 |
Norges Bank | 2.39 | 2.5 |
Competitive Landscape
Competitors by Segment
| Segment | Competitor | Notes |
|---|---|---|
US private MI | MGIC Investment Corp. (MGIC) | Oldest MI (founded by Max Karl); repeatedly #1 by quarterly NIW in 2024–2025 |
US private MI | Radian Group (Radian Guaranty) | Large MI with title/real estate services; USD 15.9B NIW in Q4 2025 per trade press |
US private MI | Enact Holdings (Enact Mortgage Insurance) | Spun out of Genworth (IPO Sept 2021) |
US private MI | NMI Holdings (National MI) | Youngest peer (2012); record IIF USD 221.4B at YE2025 |
US private MI | Arch Capital Group (Arch MI) | Largest by IIF historically; MI is one segment of a diversified (re)insurer |
Government MI substitute | Federal Housing Administration (FHA) / VA / USDA | Competes for low-down-payment borrowers; private MIs have lost share to FHA in 2025–2026 |
GSE CRT / mortgage reinsurance | Arch Re, Everest Re, RenaissanceRe, other global reinsurers | Compete in GSE CIRT/ACIS panels |
P&C reinsurance (Lloyd's) | Established Lloyd's capital providers and syndicates | Essent is a new, small participant |
Title insurance | Fidelity National Financial, First American, Stewart Information Services, Old Republic (title), Doma/other small underwriters | Essent's title business is subscale |
Peer Comparison FY2025
| Metric | Essent | MGIC | Radian | Enact |
|---|---|---|---|---|
Total revenues | 1,243 | 1,209 | 1,286 | 1,197 |
Net income | 729 | 763 | 604 | 688 |
Net margin (%) | 58.7 | 63.1 | 47.0 | 57.5 |
