Essent Group revenue jumps to $374.183 million despite lower net income
Key Facts
Essent Group said on November 6 that net income was $163.4 million, or $1.82 per diluted share, in the quarter ended September 30, 2026. Net income was below $164.2 million in the same period of 2025, while earnings per share rose from $1.67. Revenue was $374.183 million, versus $311.830 million a year earlier and $362.686 million in the second quarter of 2026. According to StockStory, revenue exceeded the average analyst estimate of $353 million, but earnings per share fell short of the expected $1.87. Chief Executive Mark Casale said the results reflect the mortgage insurance and reinsurance franchise’s ability to generate earnings.
For the nine months ended September 30, revenue was $1.073 billion, up from $948.531 million in the same period of 2025. In the third quarter, net premiums earned rose to $290.672 million from $246.332 million a year earlier. Net investment income also increased to $62.952 million, compared with $59.795 million. For the nine-month period, net investment income was $183.8 million, up 4% from the year-earlier period. The figures show growth in revenue and premiums earned, alongside higher investment income in both periods.
Revenue growth coincided with a decline in new mortgage insurance written to $12.1 billion in the third quarter. That volume was $14.1 billion in the second quarter of 2026 and $12.2 billion in the third quarter of 2025. Meanwhile, the primary mortgage insurance portfolio reached $250.1 billion on September 30. The delinquency rate rose to 2.75% on that date, from 2.53% on June 30 and 2.29% a year earlier. The delinquency rate for loans past due by three or more months was 1.83% at quarter-end.
Loss provisions and claims settlement expenses totaled $83.489 million in the third quarter, compared with $44.922 million in the same period of 2025. Net premiums written were $302.874 million, up from $241.828 million a year earlier. Other income also rose to $11.461 million from $4.358 million. In reinsurance, net premiums written totaled $330.3 million in the first nine months of 2026, compared with $49.3 million in the same period. Casale said the portfolio’s credit quality and the company’s strong capital position allow it to invest and return capital to shareholders.
Essent Guaranty’s available assets above the PMIERs minimum required assets stood at about $1.616 billion on September 30, compared with $1.506 billion on June 30. Its PMIERs sufficiency ratio rose to 177% from 172% over the same period. The company said 99% of its investment portfolio was rated investment grade. The annualized yield on cash and available-for-sale investments was also 4.06% in the third quarter. These indicators provide context for the capital position and investment portfolio Casale cited when discussing capital returns.
Essent repurchased 7.7 million common shares for $474 million from the start of the year through October 31, 2026. In November, the board approved a new $500 million share repurchase authorization running through the end of 2028. The company also declared a quarterly cash dividend of $0.35 per share. The dividend is payable on December 10, 2026, to shareholders of record on December 1. The third-quarter results conference call was held on November 6 at 10:00 a.m. Eastern Time.