Essent approves $500 million share repurchase authorization through end-2028
Key Facts
Essent Group’s board approved a new $500 million share repurchase authorization in November, effective through the end of 2028, according to the company’s third-quarter results filing. The decision is part of its capital return to shareholders, after repurchases reached $474 million through October 31, 2026. Mark Casale, chairman and chief executive officer, said third-quarter results reflect “the earnings power of our mortgage insurance and reinsurance franchise.” The authorization announcement came alongside management’s expectation that premiums written from its property and casualty reinsurance business will reach about $320 million in 2026. These expectations place the non-mortgage business alongside the company’s core mortgage insurance operations.
Management said it expects to earn about half of the property and casualty business’s premiums during 2026, with a combined ratio in the high 90s. The combined ratio measures claims costs and expenses against premiums earned, and its expected range indicates that management anticipates performance close to the underwriting break-even point for this business. Net premiums written in reinsurance totaled $330.3 million in the nine months ended September 30, 2026, compared with $49.3 million in the corresponding period of 2025. The company attributed the increase to growth in non-mortgage business as its property and casualty activity expanded. This expansion coincides with the new repurchase authorization, while management described the property and casualty business as a long-term earnings complement and said mortgage business will drive most reinsurance earnings in the near term.
Essent posted net income of $163.4 million, or $1.82 per diluted share, in the third quarter of 2026. Net income was $164.2 million and diluted earnings per share were $1.67 in the same quarter of 2025. Revenue rose to $374.183 million in the third quarter from $311.830 million a year earlier. In the nine months ended September 30, net investment income was $183.8 million, up 4% from the corresponding period of 2025. These figures provide context for the capital return decision, as the quarterly results combined revenue growth with a slight decline in year-over-year net income.
Primary mortgage insurance in force was $250.1 billion on September 30, 2026, compared with $249.7 billion on June 30 and $248.8 billion on September 30, 2025. By contrast, new insurance written totaled $12.1 billion in the third quarter, compared with $14.1 billion in the second quarter and $12.2 billion in the third quarter of 2025. The chief executive said more than half of the insurance-in-force portfolio has mortgages with interest rates of 6% or lower. He added that this supports continued high persistency rates, while housing affordability’s impact on the size of new loans continues to limit portfolio growth. The comparison between insurance in force and new business shows a contrast between the stability of the existing portfolio and fluctuations in new underwriting volume.
The company declared a quarterly cash dividend of $0.35 per share, payable on December 10, 2026, to shareholders of record on December 1. ESNT shares closed at $68.6 on November 5, the latest closing price in market data before the November 6 announcement. The company scheduled a management call to discuss results for 10:00 a.m. Eastern time on November 6. The call follows the results and new authorization announcement, giving management an opportunity to present performance details and its reinsurance business outlook. The new repurchase authorization runs through the end of 2028, while the cash dividend offers shareholders a nearer-term return.