Essent Q2 Earnings: Net Income Dips as Loss Provisions Nearly Triple
ESNT sits 24% above its 52-week low of $55.34.
Summary
Essent Group reported Q2 2026 net income of $189.7 million ($2.08/share), down from $195.3 million a year ago, as loss provisions nearly tripled to $49 million. Premium growth and share buybacks partially offset the higher claims costs.
Key Events · Earnings and Guidance · ESNT
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Loss Provisions Nearly Triple
Provision for losses and LAE surged to $49 million in Q2 2026 from $17 million in Q2 2025, driven by aging defaults in the mortgage insurance portfolio and new property/casualty reinsurance reserves.
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Net Income Declines 3%
Net income fell to $189.7 million ($2.08/share) from $195.3 million ($1.93/share) a year ago, as higher loss costs outweighed premium growth and investment income gains.
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Premium Growth Offsets Some Pressure
Net premiums earned rose 11% to $276.8 million, helped by new property/casualty reinsurance assumed in 2026 and a 2% increase in average mortgage insurance in force.
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Aggressive Share Buybacks Continue
Essent repurchased $348.4 million of common stock in H1 2026, reducing shares outstanding by 5.8 million and boosting EPS. $223 million remains under the current authorization.
Analysis · ESNT · Finance
A 3% year-over-year decline in net income to $189.7 million reflects a sharp jump in loss provisions—to $49 million from $17 million—fueled by aging defaults and the addition of property/casualty reinsurance. The mortgage insurance portfolio is entering its peak claim years, with 47% of insurance in force now at least three years old. Offsetting these headwinds, net premiums earned rose 11% on strong new business and the new reinsurance line, while aggressive share buybacks—$348 million in the first half—boosted EPS to $2.08. The company remains well-capitalized with PMIERs available assets at 172% of minimum required, but the rising loss trend bears watching as the book seasons.
At the time of this filing, ESNT was trading at $68.72 on NYSE in the Finance sector, with a market capitalization of approximately $6.3B. The 52-week trading range was $55.34 to $70.00. This filing was assessed with negative market sentiment and an importance score of 7 out of 10.