Essent Group Reports Q2 2025 Financial Results with Revenue Increase and Net Income Decline

Essent Group Ltd. reported its financial results for the second quarter of 2025, revealing a total revenue of $319.1 million, a slight increase from $312.9 million in the same period last year. The company's net income for the quarter was $195.3 million, down from $203.6 million in the prior year, resulting in diluted earnings per share of $1.93 compared to $1.91. For the first half of 2025, total revenues reached $636.7 million, up from $611.3 million in the first half of 2024, while net income decreased to $370.8 million from $385.3 million.

The company experienced a decrease in net premiums written, which totaled $241.5 million for the second quarter, down from $245.6 million a year earlier. The decline in premiums was attributed to an increase in ceded premiums due to higher losses under third-party quota share arrangements. However, net premiums earned showed a smaller decline, totaling $248.8 million compared to $251.9 million in the previous year. The average insurance in force (IIF) increased to $245.7 billion, reflecting a growing portfolio despite the challenges in the mortgage market.

Strategically, Essent Group has expanded its operations through acquisitions, including the purchase of Agents National Title Insurance Company and Boston National Holdings LLC, which have allowed the company to offer title insurance products and services. As of June 30, 2025, the company employed 521 individuals, a slight increase from previous periods, indicating a focus on growth and operational capacity.

In terms of operational metrics, the company reported a persistency rate of 85.8% for its mortgage insurance portfolio, which is crucial for maintaining premium income. The provision for losses and loss adjustment expenses (LAE) increased significantly to $17.1 million for the quarter, compared to a benefit of $0.3 million in the prior year, reflecting the aging of defaults in the portfolio. The company’s total assets as of June 30, 2025, stood at $7.2 billion, with stockholders' equity increasing to $5.7 billion from $5.6 billion at the end of 2024.

Looking ahead, Essent Group anticipates continued challenges in the mortgage market due to elevated interest rates and economic conditions affecting home sales and refinancing activity. The company remains committed to maintaining compliance with regulatory requirements and enhancing its capital position, with a risk-to-capital ratio of 9.2:1 as of June 30, 2025, well within acceptable limits. The management expressed confidence in the company's ability to navigate the evolving market landscape while pursuing growth opportunities in both mortgage and title insurance sectors.