Essent recently released its Form 10-Q for the three and six months ended June 30, 2026. Essent Group Ltd., through its subsidiaries, provides private mortgage insurance, reinsurance, title insurance and settlement services to U.S. mortgage lenders, borrowers and investors. The company operates through two reportable segments, Mortgage Insurance and Reinsurance, and also provides related services including underwriting consulting, contract underwriting, and information technology and customer support services.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
Essent said its mortgage insurance subsidiary, Essent Guaranty, is approved by Fannie Mae and Freddie Mac and licensed in all 50 states and the District of Columbia. New insurance written rose to about $14.1 billion for the second quarter of 2026 from about $12.5 billion a year earlier, and to about $25.2 billion for the first half of 2026 from about $22.5 billion in the first half of 2025.
Essent Reinsurance Ltd. covered about $2.1 billion of risk as of June 30, 2026 through GSE and other mortgage risk share transactions. The company also said Essent Re reinsures Essent Guaranty’s new insurance written under a quota share agreement, and effective January 1, 2026 it began reinsuring certain property and casualty risks.
The mortgage insurance business carried financial strength ratings of A2 from Moody’s, A from S&P, and A from AM Best. Essent Re had ratings of A from S&P and A from AM Best.
Essent reported 518 employees as of June 30, 2026. Its holding company and reinsurance business are domiciled in Bermuda, while its U.S. mortgage insurance and title insurance operations are headquartered in Radnor, Pennsylvania.
The company said elevated mortgage rates continued to pressure home buying and refinance activity, which reduced mortgage originations, new insurance written, and title insurance and settlement transaction volume. At the same time, higher rates increased net investment income and helped support persistency in mortgage insurance in force.
Essent said persistency on its mortgage insurance portfolio was 84.0% at June 30, 2026. For the first six months of 2026, monthly premium policies accounted for 98% of new insurance written, compared with 99% in the same period of 2025.
The company noted that its investment portfolio was mainly investment-grade fixed income securities and money market funds. It also said income from other invested assets includes limited partnership, venture capital, and private equity investments, which can add volatility to results.
Other income included underwriting consulting services to third-party reinsurers, title settlement services, contract underwriting services, and flat-fee information technology maintenance and customer support services provided under a services agreement with Triad Guaranty that runs through November 2026. Essent also said title insurance premiums are recognized at closing and that title insurance operations are included in Corporate & Other. As a result of these announcements, the company's shares have moved 4.9% on the market, and are now trading at a price of $68.72. For the full picture, make sure to review Essent's 10-Q report.
