Essent's Mortgage New Insurance Written Rebounds
New insurance written reached $14.1 billion in the second quarter as net income was $189.7 million, or $2.08 a share.
Essent Group Ltd. (ESNT), the Bermuda-based private mortgage insurer, wrote $14.1 billion of mortgage new insurance in the second quarter of 2026, reversing the $11.1 billion pace of the first quarter and topping $12.5 billion a year earlier.
Net income was $189.7 million, or $2.08 a share, down from $195.3 million, or $1.93 a share, in the year-ago quarter. Total revenues rose to $362.7 million from $319.1 million a year earlier, with net premiums earned of $276.8 million.
The rebound in written business lifted insurance in force to $249.7 billion at June 30, 2026, from $247.9 billion at March 31. New risk written was $3.8 billion. Policies in force were 801,140.
Mortgage Insurance net premiums earned were $215.7 million, essentially unchanged from the prior quarter. The segment’s provision for losses and LAE fell to $29.4 million from $37.6 million, and its combined ratio improved to 28.4% from 34.8%. Income before income taxes in the segment was $212.6 million.
Consolidated provision for losses and LAE was $49.0 million, versus $17.1 million a year earlier. Loans in default were 20,278, or 2.53% of the book, versus 20,332, or 2.54%, at March 31. Annual persistency was 84.0%. The base average premium rate was 0.40%.
Reinsurance net premiums earned rose to $43.6 million from $29.3 million in the prior quarter. The segment’s provision for losses and LAE increased to $18.7 million from $9.9 million, and the combined ratio was 77.9%. Income before income taxes in Reinsurance was $17.1 million. For the six months ended June 30, 2026, Reinsurance net premiums written were $248.8 million.
Corporate & Other income before income taxes was $0.6 million. Net investment income for the quarter was $61.6 million. Income from other invested assets was $19.4 million.
Purchase loans accounted for 87.4% of new insurance written, versus 92.6% a year earlier, with refinance at 12.6%. Weighted average credit score on new insurance written was 751. Weighted average LTV was 93%.
Book value per share was $63.01 at June 30, 2026, and annualized return on average equity was 13.4%. Cash and investments available for sale at the holding companies were $1.11 billion. Borrowings outstanding were $500.0 million, with $500.0 million of undrawn committed capacity.
Chairman and Chief Executive Officer Mark A. Casale said the results “reflect strong profitability, continued growth in book value per share and the resilience of our operating model.” The board declared a quarterly cash dividend of $0.35 a share, payable September 10, 2026.
Year-to-date through July 31, 2026, Essent repurchased 5.8 million common shares for $348 million. Weighted average diluted shares outstanding were 91.4 million in the quarter.
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