Essent Group Ltd. (ESNT) Earnings
Essent Group Ltd. is expected to report next earnings on August 14, 2026 (in NaN days), with a consensus EPS estimate of $1.79. ESNT has beaten EPS estimates in 8 of its last 12 reported quarters (average surprise +1.3% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 8, 2026 | $1.75 | $1.82 | +4.0% | $336M | +12.9% |
| Feb 13, 2026 | $1.74 | $1.60 | -8.0% | $312M | -1.5% |
| Nov 7, 2025 | $1.77 | $1.67 | -5.6% | $319M | +1.0% |
| Aug 8, 2025 | $1.68 | $1.93 | +14.9% | $319M | -1.2% |
| May 9, 2025 | $1.65 | $1.69 | +2.4% | $32M | -89.8% |
| Feb 14, 2025 | $1.67 | $1.58 | -5.4% | $344M | +10.7% |
| Nov 1, 2024 | $1.73 | $1.65 | -4.6% | $317M | +0.9% |
| Aug 2, 2024 | $1.68 | $1.91 | +13.7% | $313M | -1.3% |
| May 3, 2024 | $1.59 | $1.70 | +6.9% | $298M | -0.1% |
| Feb 9, 2024 | $1.59 | $1.64 | +3.1% | $297M | +3.9% |
| Nov 2, 2023 | $1.57 | $1.66 | +5.7% | $296M | +11.5% |
| Aug 4, 2023 | $1.51 | $1.61 | +6.6% | $260M | -0.4% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q1 FY2026 · May 8, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
• Financial results for Q1 2026: Net income $172 million, $1.82 per diluted share, return on average equity 12% YTD, book value per share $61.20 (+11% Y/Y). • Mortgage insurance: Core MI business generates strong cash flow, mortgage insurance in force $248 billion (+1% Y/Y), persistency 84.7%, reinsurance strategy executed, title business transitioning as adjacency to MI franchise. • Reinsurance: Expanded P&C reinsurance platform, Lloyds program to generate ~$120M written premium in 2026, whole-account quota share to generate ~$200M written premium in 2026. • Capital and dividends: Repurchased ~3.5 million shares for over $200M YTD, board approved common dividend of $0.35 for Q2 2026
Guidance
• Housing outlook: Remains in pause due to affordability and higher rates, but favorable demographics, supply constraints, and pent-up demand positive when affordability improves. • Reinsurance: P&C earnings expected to replace mortgage earnings over next few years, growth on MI side may resume if GSEs privatized and risk share returns to previous levels. • Capital allocation: Committed to measured and diversified capital strategy to optimize shareholder returns and preserve optionality for strategic growth opportunities
Segment performance
Mortgage Insurance: In-force was $248 billion (+1% Y/Y), 12-month persistency 84.7%, nearly 50% of in-force portfolio has note rate ≤5.5%, default rate flat Q/Q, weighted average FICO 747, weighted average original LTV 93%. Net premium earned $216 million, provision for losses and loss adjustment expenses $37.6 million, operating expenses $37.6 million, expense ratio 17.4%. Reinsurance: P&C reinsurance activity began Jan 1st, net premium earned, provision for losses and loss adjustment expenses, and acquisition costs increased Q/Q, pre-tax earnings immaterial for the quarter. Corporate and other: Consolidated net investment income and average balance of cash and available for sale investments largely unchanged Q/Q, income from other invested assets $10.2 million, total holding company liquidity strong with $6.6 billion in cash and investments, $5.7 billion in gap equity, $1.1 billion in excess of loss-free insurance, debt-to-capital ratio 8%, statutory capital $3.7 billion with risk-to-capital ratio 8.6 to 1
Risks & headwinds
• Risks related to forward-looking statements: Actual results may differ due to risks and uncertainties, including those in press release, Form 10-K, and other SEC filings. • Consumer credit risks: Potential weakness in lower-end consumer, though Essent's book has higher FICO and average income, monitoring needed. • Competitive risks: Small market with some competitive reach around edges, unit economics important, capital allocation to other options like Lloyds considered. • Reinsurance business risks: P&C reinsurance combined ratio in mid to high 90s, impact on earnings, GSEs buying reinsurance higher in capital structure affecting rate online and reinsurance volume
Analyst Q&A
Q: Thoughts on consumer credit?
A: Not seeing real cracks, book has high FICO and average income, defaults normalizing.
Q: Competitive trends?
A: Small market, some reach around edges, unit economics important, capital allocated to other options like Lloyds.
Q: Credit and seasonality?
A: Defaults continue to increase due to portfolio seasoning, nothing big picture alarming.
Q: Reinsurance segment provision?
A: Big change due to Lloyds and retro quota share in Q1, not driving much income in 2026 but setting stage for future.
Q: Loss ratio in reinsurance?
A: High level, mortgage loss ratio basically zero, P&C combined ratio mid to high 90s.
Q: Cure rate?
A: Relatively consistent quarter over quarter, no cliff fall off.
Q: Reserve releases and macro indicators?
A: Unemployment rate and home prices important, company in good cash flow position, allocating capital in S&RE and other invested assets, title business transitioning