Essent Group Ltd. — Third Quarter 2026 Earnings Summary

Financial Performance

• Net income for the quarter ended September 30, 2026, was $163.4 million ($1.82 per diluted share), compared to $164.2 million ($1.67 per diluted share) for the same period in 2025.
• Year-to-date net income through September 30, 2026, was $524.9 million, compared to $535.0 million in the same period of 2025.
• Total revenues for the quarter were $374.2 million, up from $311.8 million in the prior year quarter.
• Net premiums earned for the quarter were $290.7 million, compared to $246.3 million in the prior year quarter.
• Net investment income for the nine months ended September 30, 2026, was $183.8 million, a 4% increase from $177.3 million in the prior year period.
• Provision for losses and LAE for the quarter was $83.5 million, compared to $44.9 million in the prior year quarter.
• Return on average equity for the quarter ended September 30, 2026, was 12.4%, compared to 12.1% for the full year 2025.
• Book value per share was $62.58 as of September 30, 2026, compared to $58.86 as of September 30, 2025.
• Book value per share inclusive of common dividends was $63.94, representing an 8.6% 12-month growth.

Guidance and Future Outlook

• Management stated the company is well-positioned to deliver high-quality earnings with continued flexibility to invest in the business and return capital to shareholders.
• The company cited solid credit quality of its insurance in force and a strong capital position as key drivers for future performance.

Business Segments and Product Lines

• Mortgage new insurance written (NIW) for the third quarter of 2026 was $12.1 billion, compared to $14.1 billion in the second quarter of 2026 and $12.2 billion in the third quarter of 2025.
• Mortgage insurance in force as of September 30, 2026, was $250.1 billion, compared to $249.7 billion as of June 30, 2026, and $248.8 billion as of September 30, 2025.
• Reinsurance net premiums written for the nine months ended September 30, 2026, were $330.3 million, compared to $49.3 million in the same period of 2025.
• The Mortgage Insurance segment reported a combined ratio of 34.3% for the nine months ended September 30, 2026, compared to 30.0% in the prior year period.
• The Reinsurance segment reported a combined ratio of 79.3% for the nine months ended September 30, 2026, compared to 18.5% in the prior year period.
• Weighted average credit score for new insurance written in the quarter was 750, compared to 754 in the prior year quarter.
• Weighted average loan-to-value (LTV) for new insurance written was 93% in both the current and prior year quarters.
• Purchase loans accounted for 94.3% of new insurance written in the quarter, compared to 90.5% in the prior year quarter.

Market and Competitive Landscape

• Geographic distribution of insurance in force as of September 30, 2026, showed Florida at 12.1%, California at 11.8%, and Texas at 11.5%.
• The portfolio composition by credit score showed 42.5% of insurance in force had scores of 760 or higher.
• The portfolio composition by LTV showed 54.0% of insurance in force had LTVs between 90.01% and 95.00%.

Risks and Challenges

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

Management Commentary and Tone

• Mark A. Casale, Chairman and Chief Executive Officer, stated that the third-quarter results reflect the earnings power of the mortgage insurance and reinsurance franchise.
• Management emphasized the solid credit quality of the insurance in force and the strong capital position as foundational to future flexibility.

Other Key Points

• The Board of Directors declared a quarterly cash dividend of $0.35 per common share, payable on December 10, 2026, to shareholders of record on December 1, 2026.
• Year-to-date through October 31, 2026, Essent repurchased 7.7 million common shares for $474 million.
• In November 2026, the Board approved a $500 million share repurchase authorization running through year-end 2028.
• Senior notes due 2029 were $496.3 million as of September 30, 2026, with a weighted average interest rate of 6.25%.
• Essent Guaranty, Inc. reported a PMIERs sufficiency ratio of 177% as of September 30, 2026.
• The risk-to-capital ratio for Essent Guaranty, Inc. was 8.2:1 as of September 30, 2026.
• Total reserves for losses and LAE were $511.0 million as of September 30, 2026, with a default rate of 2.75%.
• Average reserve per default was $23.3 thousand as of September 30, 2026.