Essent Group (ESNT) Q3 2025 earnings summary

Executive summary

• Net income for Q3 2025 was $164.2 million ($1.67 per diluted share), down from $176.2 million in Q3 2024, with annualized ROE between 11.5% and 13%.

• Book value per share rose to $58.86 at September 30, 2025, from $53.11 a year earlier.

• 8.7 million shares repurchased year-to-date for $501 million, with a new $500 million buyback authorized through 2027.

• Quarterly cash dividend of $0.31 per share declared for Q4 2025.

• Favorable credit trends and higher investment income contributed to strong earnings.

Financial highlights

• Total revenue for Q3 2025 was $312 million, with net premiums earned at $246.3 million and net investment income at $59.8 million.

• Insurance in force reached $248.8 billion at September 30, 2025, up from $243.0 billion a year earlier.

• New insurance written in Q3 2025 was $12.2 billion, slightly down from prior periods.

• Book value per share increased to $58.86 at Q3 2025.

• Debt-to-capital ratio was about 8% at quarter end, with $495 million in senior notes outstanding.

Outlook and guidance

• Persistency rate was 86.0% at September 30, 2025, and is expected to remain elevated.

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

• Management expects to remain in full compliance with regulatory capital and liquidity requirements.

• Tax rate guidance increased to 16% or slightly higher for the coming year.

• No material impact anticipated from recent U.S. or Bermuda tax law changes in the near term.