Essent Group Ltd. — Second Quarter 2026 Earnings Summary

Financial Performance

• Net income for the quarter ended June 30, 2026, was $189.7 million ($2.08 per diluted share), compared to $195.3 million ($1.93 per diluted share) in the same period in 2025.
• Total revenues for the quarter were $362.7 million, up from $319.1 million in the second quarter of 2025.
• Net premiums earned for the quarter were $276.8 million, compared to $248.8 million in the prior year quarter.
• Net investment income for the quarter was $61.6 million, compared to $59.3 million in the prior year quarter.
• Provision for losses and LAE for the quarter was $48.96 million, compared to $17.06 million in the prior year quarter.
• Other underwriting and operating expenses for the quarter were $75.3 million, compared to $62.8 million in the prior year quarter.
• Income before income taxes for the quarter was $230.3 million, compared to $231.2 million in the prior year quarter.
• Income tax expense for the quarter was $40.6 million, compared to $35.8 million in the prior year quarter.
• Return on average equity for the quarter was 13.4% (annualized), compared to 13.8% in the second quarter of 2025.
• Book value per share as of June 30, 2026, was $63.01, compared to $56.98 as of June 30, 2025.
• Total assets were $7.59 billion as of June 30, 2026, compared to $7.44 billion as of December 31, 2025.
• Total liabilities were $1.93 billion as of June 30, 2026, compared to $1.68 billion as of December 31, 2025.
• Total stockholders' equity was $5.66 billion as of June 30, 2026, compared to $5.76 billion as of December 31, 2025.
• Senior notes due 2029, net, were $496.0 million as of June 30, 2026, compared to $495.3 million as of December 31, 2025.
• Borrowings outstanding on the credit facility were $500.0 million as of June 30, 2026, with $500.0 million undrawn committed capacity.
• Debt-to-capital ratio was 8.11% as of June 30, 2026, compared to 8.10% as of June 30, 2025.
• Cash and investments available for sale at the holding companies were $1.11 billion as of June 30, 2026, compared to $995.0 million as of June 30, 2025.

Guidance and Future Outlook

• No specific forward guidance or numerical outlook for future periods was provided in the press release.
• Management stated the company is taking a balanced approach to capital management to continue creating long-term value for shareholders.

Business Segments and Product Lines

• Mortgage new insurance written for the second quarter of 2026 was $14.1 billion, compared to $12.5 billion in the second quarter of 2025.
• Mortgage insurance in force as of June 30, 2026, was $249.7 billion, compared to $246.8 billion as of June 30, 2025.
• Reinsurance net premiums written for the first half of 2026 were $248.8 million, compared to $30.6 million in the first half of 2025.
• Net premiums earned for the six months ended June 30, 2026, were $536.9 million, compared to $494.7 million in the same period in 2025.
• Mortgage Insurance segment net premiums earned for the six months ended June 30, 2026, were $431.3 million, compared to $438.4 million in the prior year period.
• Reinsurance segment net premiums earned for the six months ended June 30, 2026, were $72.9 million, compared to $29.6 million in the prior year period.
• Corporate & Other segment net premiums earned for the six months ended June 30, 2026, were $32.6 million, compared to $26.7 million in the prior year period.
• Mortgage Insurance combined ratio for the six months ended June 30, 2026, was 31.6%, compared to 27.5% in the prior year period.
• Reinsurance combined ratio for the six months ended June 30, 2026, was 74.6%, compared to 18.1% in the prior year period.
• Mortgage Insurance loss ratio for the six months ended June 30, 2026, was 15.5%, compared to 10.5% in the prior year period.
• Reinsurance loss ratio for the six months ended June 30, 2026, was 39.3%, compared to 0.1% in the prior year period.

Market and Competitive Landscape

• No specific market share data, competitor names, or detailed market trend analysis was provided in the press release.

Risks and Challenges

• Risks include changes to Fannie Mae and Freddie Mac (GSEs) through legislation, restructurings, or shifts in business practices.
• Risks include failure to meet GSE mortgage insurer eligibility requirements.
• Risks include competition for customers or loss of a significant customer.
• Risks include lenders or investors seeking alternatives to private mortgage insurance.
• Risks include an increase in loans insured through Federal government mortgage insurance programs.
• Risks include a decline in the volume of low down payment mortgage originations.
• Risks include uncertainty of loss reserve estimates.
• Risks include a decrease in the length of time insurance policies are in force.
• Risks include deteriorating economic conditions.

Management Commentary and Tone

• Mark A. Casale, Chairman and Chief Executive Officer, stated the company is pleased with the second quarter 2026 financial results.
• Management highlighted strong profitability, continued growth in book value per share, and the resilience of the operating model.
• Management noted that consistent cash flow generation from the mortgage insurance business, combined with a strong capital position, allows for a balanced approach to capital management.

Other Key Points

• The Board of Directors declared a quarterly cash dividend of $0.35 per common share.
• The dividend is payable on September 10, 2026, to shareholders of record on August 31, 2026.
• Year-to-date through July 31, 2026, Essent repurchased 5.8 million common shares for $348 million.
• A conference call was held on August 7, 2026, at 10:00 AM Eastern time to discuss results.
• The company offers private mortgage insurance, reinsurance, and title insurance and settlement services.