Essent Group (ESNT) Q4 2025 earnings summary

Executive summary

• Reported Q4 2025 net income of $155 million ($1.60 per diluted share), with full-year net income of $690 million ($6.90 per share), and a 12% return on average equity.

• Book value per share rose 13% year-over-year to $60.31 at year-end 2025, reflecting strong growth since IPO.

• Shareholders' equity increased to $5.8 billion at December 31, 2025.

• Nearly $700 million was returned to shareholders in 2025 via dividends and repurchases, retiring nearly 10% of shares.

• Quarterly dividend increased to $0.35 per share for Q1 2026.

Financial highlights

• Q4 2025 net income: $155 million; full year: $690 million.

• Book value per share at year-end: $60.31, up 13% year-over-year.

• Mortgage insurance in force: $248.4 billion at year-end, up from $243.6 billion in 2024.

• Consolidated cash and investments: $6.6 billion at year-end 2025; aggregate yield: 3.9%.

• Loss reserves increased to $447 million at year-end 2025, up from $329 million at year-end 2024.

Outlook and guidance

• Modest growth in earned premium and insurance in force expected near term due to high mortgage rates and smaller origination market.

• Persistency rates expected to remain high with elevated mortgage rates.

• Average base premium rate for 2026 projected at ~40 basis points.

• Mortgage insurance operating expenses expected to be ~$145 million for 2026.

• Annual effective tax rate for 2026 estimated at ~17%.