ESNT · Essent Group Ltd.

Essent Group Ltd. reported solid Q1 2026 results with net income of $171.8 million, slightly below prior year but with higher diluted EPS of $1.82 due to share repurchases reducing shares outstanding from 103.9M to 94.6M. Net premiums earned rose to $260.1 million from $245.8 million, driven by gross premiums written increasing to $431.2 million from $272.4 million, offset by a $134.6 million increase in unearned premiums reflecting strong new insurance written of $11.1 billion versus $9.9 billion in Q1 2025. Insurance in force remained stable at $247.9 billion. Net investment income grew modestly to $59.3 million, benefiting from interest rate impacts as noted by CEO Mark A. Casale. Provision for losses and LAE increased to $48.2 million from $31.3 million, resulting in a higher loss ratio, while operating expenses were steady at $73.0 million. The company maintained strong capital generation, declaring a $0.35 quarterly dividend and repurchasing 3.5 million shares for $214 million year-to-date through April. Additionally, Essent Guaranty secured excess of loss reinsurance with highly rated reinsurers for 2027 business, providing forward protection. Management highlighted favorable credit trends, persistency, and investment income supporting the buy, manage, and distribute model. Return on average equity was 12.0%, with book value per share at $61.20.