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Sep 30
Essent Q3 2025 Earnings Report
Essent reported solid third quarter 2025 results, with earnings of $164.2 million on strong premium and investment income performance.
Key Takeaways
Essent Group Ltd. delivered steady performance in Q3 2025, driven by resilient credit trends, steady new insurance written, and healthy investment income, despite a modest decline in net income year-over-year.
Net income was $164.2 million, or $1.67 per diluted share.
New insurance written totaled $12.2 billion, in line with prior year.
Insurance in force grew to $248.8 billion.
Loss provision increased to $44.9 million, reflecting reserve growth.
Essent
Essent
Essent Revenue by Segment
Essent Revenue by Geographic Location
Revenue by Segment
Mortgage Insurance Revenue
CapyFin.comCorporate & Other Revenue
CapyFin.comRevenue by Geographic Location
United States Revenue
CapyFin.com Forward Guidance
Essent expects to maintain strong earnings through disciplined underwriting, favorable credit environment, and strong capital management, though it remains cautious about macroeconomic and housing market volatility.
Positive Outlook
- Solid capital position and risk-to-capital ratios.
- Strong insurance in force growth supporting recurring revenue.
- PMIERs sufficiency ratio of 177%, indicating strong regulatory capital.
- New share repurchase authorization of $500 million through 2027.
- Upgrade in credit ratings from Moody’s in Q3.
Challenges Ahead
- Increase in loans in default to 18,583 from 17,255 last quarter.
- Rising provision for losses and LAE to $44.9 million.
- Potential headwinds from housing market or rate environment shifts.
- Decrease in net premiums earned year-over-year.
- Expense ratio and combined ratio slightly elevated versus prior quarter.