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Essent Group (ESNT) FY2025 results: revenue $1.3 billion, up 1.5% on the year

Essent Group Ltd. (ESNT) reported revenue of $1.3 billion for fiscal 2025, the year ended 31 December 2025, up 1.5% on the year before. Net income was $690 million, down 5.4%, and diluted earnings per share $6.90. The figures are the company's own, from the 10-K it filed with the SEC on 18 February 2026.

Revenue
$1.3 billion
+1.5% on the year
FY2018FY2025
Operating margin
65.2%
68.8% a year earlier
FY2018FY2025
Net income
$690 million
-5.4% on the year
FY2018FY2025
Diluted EPS
$6.90
+0.7% on the year
FY2018FY2025

this yearthe year beforeHover a bar for its figure.

The year in brief

What management said about the year

  • Fourth-quarter net income $155.0 million: Net income was $155.0 million, or $1.60 per diluted share, against $167.9 million, or $1.58 per diluted share, a year earlier. Diluted weighted shares fell to 96.7 million from 106.1 million.
  • Mortgage Insurance fourth-quarter combined ratio 42.0%: Mortgage Insurance loss ratio was 25.9% and expense ratio 16.1%, against 17.6% and 17.7% a year earlier. Segment income before tax was $169.8 million, against $183.6 million.
  • Third-party reinsurance now its own segment: Third-party reinsurance is now a separate reportable segment, and the GSE and other mortgage risk share is no longer combined with U.S. mortgage insurance. Prior periods were recast to match.
  • Fourth-quarter new insurance written $11.8 billion: New insurance written was $11.8 billion, against $12.2 billion in the third quarter and in the fourth quarter of 2024. Full-year new insurance written was $46.6 billion, against $45.6 billion.
  • Prior-year reserves reduced again in Q4: Prior-year provision was a reduction of $12.7 million in the fourth quarter, $18.2 million in the third, $29.8 million in the second and $18.2 million in the first quarter. Current-year provision was $67.9 million.
Read the Q4 FY2025 earnings call summary

From this 10-K

Essent Group sells private mortgage insurance on U.S. home loans, reinsures U.S. mortgage risk, and offers title insurance and settlement services. Its customers are mortgage lenders, and the insurance protects them and investors if a borrower with a low down payment defaults. It reports two segments, Mortgage Insurance and Reinsurance, with title insurance included in Corporate and Other. Essent Group was organized under the laws of Bermuda on July 1, 2008, where its holding company and reinsurance business are domiciled, and its mortgage and title insurance operations are headquartered in Radnor, Pennsylvania.

Essent Group Ltd., the 10-K for 2025

Essent Group sells private mortgage insurance on U.S. home loans, reinsures U.S. mortgage risk, and offers title insurance and settlement services. Its customers are mortgage lenders, and the insurance protects them and investors if a borrower with a low down payment defaults. It reports two segments, Mortgage Insurance and Reinsurance, with title insurance included in Corporate and Other. Essent Group was organized under the laws of Bermuda on July 1, 2008, where its holding company and reinsurance business are domiciled, and its mortgage and title insurance operations are headquartered in Radnor, Pennsylvania.

Why mortgage insurance exists

Fannie Mae and Freddie Mac, the government-sponsored enterprises (GSEs) that buy residential mortgages from banks and other lenders, are generally barred by their charters from buying a low down payment loan unless it carries insurance from a GSE-approved mortgage insurer or another form of credit protection. Private mortgage insurance lets those loans be sold into the secondary market. From 2006 through 2025 an average of 32.0% of total annual U.S. mortgage origination volume used mortgage insurance, from private insurers or from government agencies such as the FHA and VA.

Mortgage insurance

The company writes this insurance through Essent Guaranty, a Pennsylvania-domiciled mortgage guaranty insurer licensed in all 50 states and the District of Columbia and approved by Fannie Mae and Freddie Mac. A substantial majority of its policies are primary mortgage insurance, written loan by loan when the loan is made, with the lender choosing the coverage level. Its risk across all policies is generally approximately 27% of the underlying primary insurance in force, varying between 6% and 35% by policy. All of its policies in force were written since May 2010. California, Florida and Texas are its largest states by insurance in force. It also provides contract underwriting on a limited basis, and it runs underwriting centers in Radnor and Winston-Salem, North Carolina.

Customers and competition

Customers are mortgage originators, including depository institutions, mortgage banks and credit unions, and its top ten customers produced 59.3% of new insurance written on a flow basis in 2025. Six private mortgage insurers are approved by the GSEs: Essent Guaranty, Arch Mortgage Insurance Company, Enact Mortgage Insurance Corporation, Mortgage Guaranty Insurance Corporation, National Mortgage Insurance Corporation and Radian Guaranty. They also compete with the FHA and the VA, and with piggyback loans that avoid the need for mortgage insurance.

Reinsurance and title

The Reinsurance segment, through Bermuda-based Essent Re, reinsures U.S. mortgage risk in the GSE credit risk transfer market and provides underwriting consulting to other reinsurers. In the fourth quarter of 2025 Essent Re entered the Lloyd's of London market to reinsure certain property and casualty risks from the first quarter of 2026. Title insurance came from the July 1, 2023 acquisitions of Agents National Title Insurance Company, now Essent Title Insurance, licensed in 45 states and the District of Columbia, and the national title agency Boston National Title.

People

As of December 31, 2025 the company had 514 employees, 7 of them in Hamilton, Bermuda.

From Essent Group's annual report on Form 10-K for the year ended 31 December 2025. The filing

Written from the 10-K filed 18 February 2026: read the full 10-K.

The four quarters: Q1 FY2025 · Q2 FY2025 · Q3 FY2025 · Q4 FY2025

Income statement (profit and loss)

$ millionFY2025FY2024FY2023On the yearLast 8 years
Revenue1,2611,2431,110+1.5%
Operating income822855823-3.9%
Operating margin65.2%68.8%74.2%
Interest expense32.735.330.1-7.4%
Pre-tax income822855823-3.9%
Income tax132126127+4.6%
Effective tax rate16.0%14.7%15.4%
Net income690729696-5.4%
Net margin54.7%58.7%62.8%
Diluted EPS$6.90$6.85$6.50+0.7%
$ million except per share.
Read moreFree cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ millionFY2025FY2024FY2023On the yearLast 8 years
Operating cash flow856862763-0.6%
Capital expenditure7.46.84.0+8.8%
Free cash flow849855759-0.7%
Free cash flow margin67.3%68.8%68.4%
Cash from investing-155-707-526
Cash from financing-710-165-177
Depreciation and amortisation5.25.84.5-9.5%
Share-based compensation20.824.818.4-15.9%
Buybacks58811270.7+426.9%
Dividends paid122118106+3.4%
Dividend per share$1.24$1.12$1.00+10.7%
Diluted shares, weighted100m107m107m-6.1%
Shares outstanding at period end95m105m107m-9.1%

Balance sheet

$ millionFY2025FY2024FY2023On the yearLast 8 years
Shareholders' equity5,7575,6045,103+2.7%
Debtn/an/a425
Other liabilities1,6841,508899+11.7%
Total liabilities and equity7,4417,1126,427+4.6%
Fixed assetsn/an/a41.3
Goodwill48.848.850.00.0%
Securities held for sale or to maturity6,1045,8775,264+3.9%
Cash and equivalents123131142-6.4%
Other assets1,1651,055930+10.5%
Total assets7,4417,1126,427+4.6%

10-K for the year ended 31 December 2025, filed 18 February 2026: the filing.