Essent Group (ESNT) Q2 2026 earnings summary

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 reached $63.01 at June 30, 2026, up nearly 13% year-over-year, reflecting strong capital generation.

• Insurance in force grew to $249.7 billion, with 84% persistency.

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

• Quarterly dividend of $0.35 per share declared for Q2 2026.

Financial highlights

• Total revenue for Q2 2026 was $363 million, with net premiums earned of $276.8 million and net investment income of $61.6 million.

• Mortgage insurance new insurance written (NIW) was $14.1 billion in Q2 2026, up from $11.1 billion in Q1 2026.

• Combined ratio for Mortgage Insurance was 28.4% in Q2 2026; Reinsurance combined ratio was 77.9%.

• Net premium rate for mortgage insurance was 35 bps in Q2 2026.

• Holding company liquidity included $1.1 billion in cash and investments and a $500 million undrawn revolver.

Outlook and guidance

• Persistency expected to remain elevated due to rate environment; portfolio growth to pause as affordability constrains origination.

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

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

• Company expects to remain in full compliance with regulatory capital requirements and PMIERS as updated requirements phase in through September 2026.

• Long-term positive outlook for housing and MI business as affordability improves.