Essent's Mortgage Loss Ratio Climbs After Two-Quarter Decline

The Tip Desk · November 6, 2026 · 2 min read

Net income was $163.4 million, or $1.82 a share, as the provision for losses and LAE reached $83.5 million.

Essent Group Ltd. (ESNT) reported net income of $163.4 million, or $1.82 a share, for the quarter ended September 30, 2026, compared with $164.2 million, or $1.67 a share, a year earlier. The Bermuda-based private mortgage insurer, reinsurer and title-services company said the result reflected its mortgage insurance and reinsurance franchise.

The sequential drop from $189.7 million, or $2.08 a share, in the June quarter tracked a sharp rise in the loss provision. Provision for losses and LAE was $83.5 million, up from $49.0 million in the prior quarter. Total revenues were $374.2 million. Net premiums earned were $290.7 million.

Mortgage Insurance, the larger of the two reportable segments, posted income before income taxes of $185.3 million. The segment’s loss ratio was 24.5%, after 13.6% in the June quarter. Net premiums earned in Mortgage Insurance were $211.0 million. The combined ratio was 39.6%.

Mortgage new insurance written was $12.1 billion, down from $14.1 billion in the second quarter. Insurance in force was $250.1 billion at September 30, 2026. Annual persistency was 83.3%. Loans in default numbered 21,919, or 2.75% of the book. The net average premium rate was 0.34%.

Reinsurance net premiums earned were $64.0 million. Reinsurance income before income taxes was $17.5 million. The reinsurance loss ratio was 48.5%. For the nine months ended September 30, 2026, reinsurance net premiums written were $330.3 million, compared with $49.3 million in the same period of 2025.

Corporate & Other recorded a $3.8 million loss before income taxes. Consolidated net investment income for the quarter was $63.0 million. Income from other invested assets was $10.7 million.

The board declared a quarterly cash dividend of $0.35 a share, payable December 10, 2026 to holders of record on December 1, 2026. In November 2026 the board approved a $500 million share-repurchase authorization running through year-end 2028. Year-to-date through October 31, 2026, Essent repurchased 7.7 million common shares for $474 million.

Book value per share was $62.58 at September 30, 2026. Return on average equity, calculated on an annualized year-to-date basis, was 12.4%. Senior notes outstanding remained $500.0 million, with $500.0 million of undrawn committed capacity and a weighted average interest rate of 6.25%. Cash and investments available for sale at the holding companies were $959.1 million.

Chairman and Chief Executive Officer Mark A. Casale said the company was well positioned to deliver high-quality earnings with continued flexibility to invest in the business and return capital to shareholders.