Essent Group (ESNT) investor relations material

Executive summary

• Q2 2026 net income was $189.7 million ($2.08 per diluted share), with annualized ROAE of 13.4%.

• Book value per share at June 30, 2026 was $63.01, up nearly 13% year-over-year, reflecting strong capital generation.

• Total revenue for Q2 2026 reached $363 million, driven by higher net premiums and investment income.

• 5.8 million shares were repurchased year-to-date through July 31, 2026 for $348 million.

• Quarterly dividend of $0.35 per share declared for Q3 2026.

Financial highlights

• Mortgage insurance in force reached $249.7 billion at June 30, 2026, up 1% year-over-year.

• New insurance written (NIW) for Q2 2026 was $14.1 billion, up from $11.1 billion in Q1 2026 and $12.5 billion in Q2 2025.

• Net premiums earned in Q2 2026 were $276.8 million, up from $248.8 million in Q2 2025.

• Net investment income rose to $61.6 million in Q2 2026, with aggregate yield at 4.89%.

• Provision for losses and LAE increased to $49.0 million in Q2 2026, mainly due to property and casualty reinsurance and aging mortgage defaults.

Outlook and guidance

• Persistency rate was 84% at June 30, 2026, expected to remain elevated due to rate environment.

• Management expects continued compliance with regulatory capital requirements and PMIERS as updates phase in through September 2026.

• Favorable demographic trends and stable first-time homebuyer demand are expected to support housing fundamentals over the next five years.

• Portfolio growth may pause as affordability constrains origination, but long-term outlook for housing and MI business remains positive.

• Management anticipates continued growth in reinsurance and title insurance, with ongoing evaluation of new business opportunities.