Essent Group Q2 Earnings: Net Income Dips as Loss Provisions Nearly Triple

summarizeSummary

Essent Group reported Q2 2026 net income of $189.7 million ($2.08/share) as loss provisions nearly tripled to $49 million, while new insurance written jumped to $14.1 billion and the company continued heavy share buybacks.

check_boxKey Events · Earnings and Guidance · ESNT

• Loss Provisions Nearly Triple

  Provision for losses and LAE rose to $49 million in Q2 2026 from $17 million in Q2 2025, driven by higher default activity and reserve strengthening.

• Net Income Edges Lower

  Net income of $189.7 million ($2.08 diluted EPS) compared to $195.3 million ($1.93 diluted EPS) a year ago, as higher premiums and investment income were offset by the loss provision spike.

• New Insurance Written Surges

  Mortgage new insurance written reached $14.1 billion, up from $11.1 billion in Q1 2026 and $12.5 billion in Q2 2025, reflecting strong housing market activity.

• Aggressive Capital Return Continues

  Year-to-date through July 31, 2026, Essent repurchased 5.8 million shares for $348 million, and declared a $0.35 quarterly dividend payable September 10.

auto_awesomeAnalysis · ESNT · Finance

Essent's Q2 net income fell slightly year-over-year to $189.7 million, but the real story is the sharp rise in credit costs — loss provisions nearly tripled to $49 million from $17 million a year ago, signaling growing stress in its insured mortgage portfolio. The company continues to return capital aggressively, repurchasing $348 million in shares year-to-date and declaring a $0.35 quarterly dividend, supported by a strong capital position and PMIERs sufficiency ratio of 172%. New insurance written surged to $14.1 billion, reflecting robust origination activity, but investors will weigh that growth against the deteriorating credit trend.