Essent Group Reports Q1 2026 Net Income of $171.8 Million, Revenue Growth to $336.1 Million

Essent Group Ltd. reported a net income of $171.8 million for the first quarter of 2026, a slight decrease from $175.4 million in the same period of 2025. The company's total revenues increased to $336.1 million, up from $317.6 million year-over-year, driven primarily by a significant rise in net premiums written, which reached $394.7 million compared to $238.3 million in the prior year. The increase in net premiums written was attributed to a higher volume of new insurance written, which amounted to approximately $11.1 billion, up from $9.9 billion in the previous year.

The company experienced a rise in total losses and expenses, which increased to $129.3 million from $110.6 million in the prior year. This increase was largely due to a higher provision for losses and loss adjustment expenses (LAE), which rose to $48.2 million from $31.3 million. The increase in losses was attributed to a growing number of defaults and an increase in the average reserve per default, reflecting the aging of defaults within the mortgage insurance portfolio. Additionally, other underwriting and operating expenses rose slightly, reflecting ongoing operational costs.

Essent Group's operational metrics showed a persistency rate of 84.7% as of March 31, 2026, indicating a stable retention of insurance in force (IIF). The IIF at the end of the reporting period was approximately $247.9 billion, compared to $244.7 billion a year earlier. The company maintained a strong capital position, with total stockholders' equity at $5.7 billion, down from $5.8 billion at the end of 2025, primarily due to share repurchases and increased accumulated other comprehensive losses.

Strategically, Essent Group has expanded its reinsurance operations, with Essent Reinsurance Ltd. beginning to reinsure certain property and casualty risks effective January 1, 2026. The company also reported a significant increase in its investment income, totaling $59.3 million, up from $58.2 million, driven by a higher yield on its investment portfolio. Looking ahead, Essent Group anticipates continued challenges in the housing market due to elevated mortgage interest rates, which may impact new mortgage originations and overall business activity. However, the company remains committed to maintaining compliance with regulatory requirements and enhancing its operational efficiency.