Essent Group (ESNT) Q2 2025 earnings summary

Executive summary

• Net income for Q2 2025 was $195.3 million ($1.93/diluted share), down from $203.6 million a year ago but up from $175.4 million in Q1 2025; annualized ROE was 13.8%.

• Book value per share grew to $56.98 as of June 30, 2025.

• Board declared a $0.31/share quarterly dividend and repurchased 6.8M–7M shares YTD for $387M–$390M.

• Moody’s upgraded insurance financial strength to A2 and senior unsecured debt to Baa2, both with a stable outlook.

• Management highlighted strong credit performance, high portfolio persistency, and increased investment income.

Financial highlights

• Total revenue for Q2 2025 was $319M, with net premiums earned at $248.8M and net investment income at $59.3M.

• Insurance in force reached $246.8B–$247B, up 3% year-over-year.

• New insurance written in Q2 2025 was $12.5B, flat year-over-year.

• Combined ratio for Mortgage Insurance was 22.1% for Q2 2025.

• Provision for losses was $15.4M–$17.1M, down from Q1 but up year-over-year.

Outlook and guidance

• Persistency rate was 85.8%–86% at June 30, 2025, expected to remain high due to current mortgage rates.

• Long-term housing outlook remains constructive, supported by demographics and first-time homebuyer demand.

• Management expects to remain in full compliance with GSE capital requirements and PMIERS.

• ARPA guidance for 2025 remains on track at $160M–$165M, trending toward the lower end.

• No material impact expected from recent U.S. tax reform or Bermuda tax changes until at least 2030.