second quarter 2026
Filed Aug 7, 2026Essent Group Ltd. reported second-quarter 2026 net income of $189.7 million, or $2.08 per diluted share, and declared a quarterly cash dividend of $0.35 per common share.
Second-quarter revenue, mortgage new insurance written, insurance in force, book value per share and diluted EPS were higher than the respective prior-quarter figures reported. Net income was below the prior-year quarter, while provision for losses and LAE was materially higher than both comparison periods.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Gross premiums writtenGAAP | $ 342,398 (In thousands) | – | – |
| Ceded premiumsGAAP | (35,113) (In thousands) | – | – |
| Net premiums writtenGAAP | 307,285 (In thousands) | – | – |
| Increase in unearned premiumsGAAP | (30,521) (In thousands) | – | – |
| Net premiums earnedGAAP | $ 276,764 (In thousands) | – | – |
| Net investment incomeGAAP | 61,612 (In thousands) | – | – |
| Realized investment gains (losses), netGAAP | (111) (In thousands) | – | – |
| Income from other invested assetsGAAP | 19,385 (In thousands) | – | – |
| Other incomeGAAP | 5,036 (In thousands) | – | – |
| Total revenuesGAAP | 362,686 (In thousands) | – | – |
| Provision for losses and LAEGAAP | 48,961 (In thousands) | – | – |
| Other underwriting and operating expensesGAAP | 75,258 (In thousands) | – | – |
| Interest expenseGAAP | 8,148 (In thousands) | – | – |
| Total losses and expensesGAAP | 132,367 (In thousands) | – | – |
| Income before income taxesGAAP | 230,319 (In thousands) | – | – |
| Income tax expenseGAAP | 40,605 (In thousands) | – | – |
| Net incomeGAAP | $ 189,714 (In thousands) | – | – |
| Basic earnings per shareGAAP | $ 2.09 | – | – |
| Diluted earnings per shareGAAP | 2.08 | – | – |
| Weighted average shares outstanding, basicGAAP | 90,740 (In thousands) | – | – |
| Weighted average shares outstanding, dilutedGAAP | 91,389 (In thousands) | – | – |
| Unrealized depreciation of investmentsGAAP | (2,726) (In thousands) | – | – |
| Comprehensive incomeGAAP | $ 186,988 (In thousands) | – | – |
| Book value per shareother | $ 63.01 | – | – |
| Return on average equity (annualized)other | 13.4 % | – | – |
| Senior debt and credit facility borrowings outstandingother | $ 500,000 (In thousands) | – | – |
| Undrawn committed capacityother | $ 500,000 (In thousands) | – | – |
| Weighted average interest rate (end of period)other | 6.25 % | – | – |
| Debt-to-capitalother | 8.11 % | – | – |
| Cash and investments available for sale at the holding companiesother | $ 1,108,667 (In thousands) | – | – |
| Net premiums written, six months ended June 30, 2026GAAP | 701,954 (In thousands) | – | – |
| Net premiums earned, six months ended June 30, 2026GAAP | 536,857 (In thousands) | – | – |
| Net investment income, six months ended June 30, 2026GAAP | 120,867 (In thousands) | – | – |
| Income from other invested assets, six months ended June 30, 2026GAAP | 29,564 (In thousands) | – | – |
| Total revenues, six months ended June 30, 2026GAAP | 698,758 (In thousands) | – | – |
| Provision for losses and LAE, six months ended June 30, 2026GAAP | 97,177 (In thousands) | – | – |
| Total losses and expenses, six months ended June 30, 2026GAAP | 261,714 (In thousands) | – | – |
| Net income, six months ended June 30, 2026GAAP | $ 361,513 (In thousands) | – | – |
| Diluted earnings per share, six months ended June 30, 2026GAAP | 3.89 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Mortgage insuranceMortgage new insurance written was $14.1 billion, compared to $11.1 billion in the first quarter of 2026 and $12.5 billion in the second quarter of 2025. Mortgage insurance in force was $249.7 billion as of June 30, 2026. | $ 276,764 (In thousands) net premiums earned | – | – |
Capital returns
- Quarterly cash dividend of $0.35 per common share, payable on September 10, 2026 to shareholders of record on August 31, 2026.
- Year-to-date through July 31, 2026, Essent repurchased 5.8 million common shares for $348 million.
What drove it
- Mortgage new insurance written was $14.1 billion in the second quarter of 2026, versus $11.1 billion in the first quarter of 2026 and $12.5 billion in the second quarter of 2025.
- Mortgage insurance in force was $249.7 billion as of June 30, 2026, compared to $247.9 billion as of March 31, 2026 and $246.8 billion as of June 30, 2025.
- Reinsurance net premiums written for the first half of 2026 were $248.8 million, compared to $30.6 million in the first half of 2025.
- Net investment income for the first half of 2026 was $120.9 million, compared to $117.5 million in the first half of 2025.
Concerns
- Provision for losses and LAE was 48,961 (In thousands) in the second quarter of 2026, compared to 17,055 (In thousands) in the second quarter of 2025.
- Net income was $ 189,714 (In thousands) in the second quarter of 2026, compared to $ 195,339 (In thousands) in the second quarter of 2025.
- Unrealized depreciation of investments was (2,726) (In thousands) in the second quarter of 2026, compared to unrealized appreciation of investments of 16,580 (In thousands) in the second quarter of 2025.
- Accumulated other comprehensive loss was (190,662) (In thousands) as of June 30, 2026, compared to (151,985) (In thousands) as of December 31, 2025.
What to watch
- Provision for losses and LAE and the reserve for losses and LAE, which was $ 518,799 (In thousands) as of June 30, 2026.
- Mortgage new insurance written and mortgage insurance in force.
- The pace of common-share repurchases following 5.8 million common shares repurchased for $348 million year-to-date through July 31, 2026.
- Cash and investments available for sale at the holding companies, which were $ 1,108,667 (In thousands) as of June 30, 2026.
Balance sheet and cash flow
- Total investments: $ 6,480,547 (In thousands) as of June 30, 2026; $ 6,486,598 (In thousands) as of December 31, 2025.
- Cash: $ 74,333 (In thousands) as of June 30, 2026; $ 123,049 (In thousands) as of December 31, 2025.
- Total assets: $ 7,591,882 (In thousands) as of June 30, 2026; $ 7,441,003 (In thousands) as of December 31, 2025.
- Reserve for losses and LAE: $ 518,799 (In thousands) as of June 30, 2026; $ 446,822 (In thousands) as of December 31, 2025.
- Unearned premium reserve: 256,827 (In thousands) as of June 30, 2026; 91,730 (In thousands) as of December 31, 2025.
- Senior notes due 2029, net: 495,972 (In thousands) as of June 30, 2026; 495,301 (In thousands) as of December 31, 2025.
- Total liabilities: 1,928,481 (In thousands) as of June 30, 2026; 1,684,276 (In thousands) as of December 31, 2025.
- Total stockholders' equity: 5,663,401 (In thousands) as of June 30, 2026; 5,756,727 (In thousands) as of December 31, 2025.
- Return on average equity: 12.7 % as of June 30, 2026; 12.1 % as of December 31, 2025.
Analysis
Essent reported $ 362,686 (In thousands) of total revenues in the second quarter of 2026, compared with $ 319,143 (In thousands) in the second quarter of 2025 and $ 336,072 (In thousands) in the first quarter of 2026. Net premiums earned were $ 276,764 (In thousands), while net investment income was 61,612 (In thousands). Income from other invested assets was 19,385 (In thousands), compared with 4,466 (In thousands) in the prior-year quarter and 10,179 (In thousands) in the prior quarter.
Mortgage insurance activity expanded. Mortgage new insurance written was $14.1 billion, versus $11.1 billion in the first quarter of 2026 and $12.5 billion in the second quarter of 2025. Mortgage insurance in force reached $249.7 billion as of June 30, 2026, compared with $247.9 billion as of March 31, 2026 and $246.8 billion as of June 30, 2025. For the first half, reinsurance net premiums written were $248.8 million, compared with $30.6 million in the first half of 2025.
Profitability remained substantial but reflected higher loss and expense items. Provision for losses and LAE was 48,961 (In thousands), versus 17,055 (In thousands) a year earlier and 48,216 (In thousands) in the first quarter. Other underwriting and operating expenses were 75,258 (In thousands), compared with 62,765 (In thousands) in the prior-year period. Net income was $ 189,714 (In thousands), below $ 195,339 (In thousands) a year earlier but above $ 171,799 (In thousands) in the first quarter. Diluted EPS was 2.08, compared with 1.93 and 1.82, respectively, alongside lower diluted weighted average shares outstanding of 91,389 (In thousands).
Capital management included repurchases of 5.8 million common shares for $348 million year-to-date through July 31, 2026 and a declared quarterly cash dividend of $0.35 per common share. Book value per share was $ 63.01, compared with $ 61.20 in the first quarter and $ 56.98 in the second quarter of 2025. The company reported $ 1,108,667 (In thousands) of cash and investments available for sale at the holding companies, $ 500,000 (In thousands) of borrowings outstanding, and 8.11 % debt-to-capital. The filing provided no forward financial guidance.
Management, verbatim
We are pleased with our second quarter 2026 financial results, which reflect strong profitability, continued growth in book value per share and the resilience of our operating model.
Mark A. Casale, Chairman and Chief Executive Officer
The consistent cash flow generation of our mortgage insurance business, combined with our strong capital position, allows us to take a balanced approach to capital management and to continue creating long-term value for our shareholders.
Mark A. Casale, Chairman and Chief Executive Officer
Not in the filing
stated, not guessed- Forward revenue, margin, operating-expense, tax-rate, or other financial guidance was not provided.
- Previous-release outlook was not provided.
- Operating cash flow was not provided.
- Free cash flow was not provided.
- Gross margin was not provided.
- Non-GAAP financial measures were not provided in the supplied filing text.
- The supplied filing text references detailed segment exhibits, but the segment-result tables were not included in the provided text.
- Balance-sheet line items not enumerated in balance_sheet_cash_flow include fixed maturities available for sale, short-term investments available for sale, other invested assets, accrued investment income, accounts receivable, deferred policy acquisition costs, property, equipment and software, prepaid federal income tax, goodwill and acquired intangible assets, other assets, net deferred tax liability, other accrued liabilities, and individual stockholders' equity accounts.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.