Mortgage insurance provider Essent Group (NYSE:ESNT) fell short of the markets revenue expectations in Q3 CY2025, with sales falling 1.5% year on year to $311.8 million. Its GAAP profit of $1.67 per share was 5.5% below analysts’ consensus estimates. Is now the time to buy ESNT? Find out in our full research report (it’s free for active Edge members). Essent Group (ESNT) Q3 CY2025 Highlights: Revenue: $311.8 million vs analyst estimates of $317 million (1.5% year-on-year decline, 1.6% miss) EPS (GAAP) ...

Financial Performance - Total revenues for the nine months ended September 30, 2025, reached $948,531 thousand, an increase of 2.2% compared to $927,877 thousand in 2024[19]. - Net income for the three months ended September 30, 2025, was $164,215 thousand, down 6.8% from $176,175 thousand in the same period of 2024[19]. - Net income for the nine months ended September 30, 2025, was $534,987, a decrease of 4.5% compared to $561,503 in 2024[24]. - Basic earnings per share for the three months ended September 30, 2025, increased to $1.69, compared to $1.67 in 2024, reflecting a growth of 1.2%[19]. - The total dividends declared and paid per common share for 2025 amounted to $0.93, compared to $1.12 for 2024, reflecting a decrease of approximately 16.9%[84]. Assets and Equity - Total assets increased to $7,351,999 thousand as of September 30, 2025, compared to $7,111,649 thousand at December 31, 2024, representing a growth of 3.4%[17]. - Total stockholders' equity as of September 30, 2025, was $5,738,974 thousand, up from $5,603,658 thousand at December 31, 2024, marking an increase of 2.4%[17]. - The total assets at fair value as of September 30, 2025, amounted to $6,089,865 thousand, compared to $5,876,721 thousand as of December 31, 2024, showing a growth of about 3.6%[111]. Investment Performance - Net investment income rose to $59,795 thousand for the three months ended September 30, 2025, up 4.3% from $57,340 thousand in 2024[19]. - The company reported realized investment losses of $735, down from $2,236 in the previous year, indicating improved investment performance[24]. - The net unrealized gains on investments for the nine months ended September 30, 2025, were $138,559 thousand, compared to $90,217 thousand in 2024, indicating an increase of approximately 53.5%[102]. Premiums and Insurance - Net premiums written for the three months ended September 30, 2025, were $241,828 thousand, a slight decrease of 0.5% from $242,965 thousand in the same period of 2024[19]. - Direct net premiums written for the three months ended September 30, 2025, were $280.8 million, slightly up from $277.8 million in 2024, while net premiums earned were $246.3 million, down from $248.9 million in 2024[53]. - The loss ratio for the Mortgage Insurance segment for the three months ended September 30, 2025, was 19.1%, compared to 12.9% for the same period in 2024, indicating a deterioration in loss performance[133]. Reserves and Claims - The provision for losses and LAE increased to $44,922 thousand for the three months ended September 30, 2025, compared to $30,666 thousand in 2024, indicating a rise of 46.5%[19]. - As of September 30, 2025, the net reserve for losses and loss adjustment expenses (LAE) increased to $349.1 million from $257.4 million as of September 30, 2024, reflecting a year-over-year increase of approximately 35.5%[68]. - The company paid $35.4 million for incurred claims related to prior years during the nine months ended September 30, 2025, compared to $17.1 million in the same period of 2024, indicating a significant increase of approximately 106.7%[68]. Shareholder Activities - The company repurchased 7,816,739 common shares at a cost of $450.6 million from January 1, 2025, through September 30, 2025, as part of its share repurchase plan[85]. - The company declared dividends totaling $30,523 thousand for the three months ended September 30, 2025, compared to $29,989 thousand in 2024, reflecting a slight increase of 1.8%[21]. - Essent Re paid dividends of $340 million to its parent for the nine months ended September 30, 2025, compared to $212.5 million for the same period in 2024[96]. Operational Efficiency - The combined ratio for the Mortgage Insurance segment improved to 33.9% for the three months ended September 30, 2025, from 29.6% in the same period of 2024, reflecting better overall operational efficiency[133]. - Operating expenses after allocations for the nine months ended September 30, 2025, totaled $193.387 million, consistent with the prior year’s $199.923 million[136]. - The expense ratio for the nine months ended September 30, 2025, was 16.3%, slightly improved from 17.2% in the same period of 2024[136]. Market Conditions - The Federal Reserve's actions have led to a reduction in the target federal funds rate by 125 basis points in 2024 and 2025, impacting mortgage interest rates and overall market activity[145]. - The company expects incurred losses and claims to increase as more of the insurance portfolio reaches its peak claim frequency period, which is typically in the third to sixth years after loan origination[167]. - The company anticipates that the ultimate number of hurricane-related defaults resulting in claims will be less than non-hurricane-related defaults, impacting future reserve estimates[71].

Financial Data and Key Metrics Changes - For Q3 2025, the company reported a net income of $164 million, down from $176 million a year ago, while diluted earnings per share increased to $1.67 from $1.65 [4][9] - The year-to-date return on equity was 13% as of September 30, 2025 [4] - Consolidated cash and investments totaled $6.6 billion with an annualized investment yield of 3.9% [6][7] Business Line Data and Key Metrics Changes - The U.S. mortgage insurance in force was $249 billion, a 2% increase year-over-year [5][9] - The mortgage insurance net premium earned for Q3 2025 was $232 million, including $15.9 million from Essent Re [10] - The average base premium rate for the U.S. mortgage insurance portfolio remained at 41 basis points, while the average net premium rate decreased by one basis point to 35 basis points [10] Market Data and Key Metrics Changes - The 12-month persistency rate was 86%, unchanged from the previous quarter [5][9] - The default rate on the U.S. mortgage insurance portfolio increased to 2.29%, up 17 basis points from the previous quarter [10] Company Strategy and Development Direction - The company maintains a conservative capital strategy to navigate market volatility while allowing for strategic growth investments [7][14] - A new $500 million share repurchase authorization was approved, running through year-end 2027, indicating a commitment to returning capital to shareholders [8][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business, benefiting from favorable credit trends and the current interest rate environment [4] - The company anticipates that the current level of mortgage rates will support elevated persistency in the near term [5] - Management highlighted the strong credit quality of the insurance in force, with a weighted average FICO of 746 [5] Other Important Information - The company repurchased nearly 9 million shares for over $500 million year-to-date through October 31, 2025 [8] - The estimated annual effective tax rate was increased from 15.4% to 16.2% due to withholding taxes incurred on a dividend [11] Q&A Session Summary Question: Credit trends and provisions - Management noted that the average loan size has increased, which impacts provisions when larger loans default [16] Question: Claims amount and severity - Management indicated that fluctuations in claims are dependent on document processing and that severity remains below reserves [18] Question: Seeded premiums and reinsurance transactions - Management explained that seeded premiums will vary based on default and provision activity, with seasonal trends expected [22] Question: Tax rate expectations - Management suggested a tax rate of around 16% going forward, influenced by capital distributions to shareholders [24] Question: Severity rates and long-term expectations - Management stated that while severity rates have increased, the overall risk remains low, and they are well-capitalized to handle potential losses [30][34] Question: Underwriting guardrails and credit score changes - Management reassured that current underwriting standards remain stringent and that any changes in credit score requirements by GSEs have not yet been implemented [42][45] Question: Upstreaming capital from MI subsidiary - Management indicated plans for consistent dividends from the MI subsidiary, with potential for a larger dividend in Q4 [48] Question: Diversification and growth avenues - Management discussed the performance of the Title business and indicated that while it is still small, it is being developed as a potential growth area [50]

Essent Group (NYSE:ESNT) Q3 2025 Earnings Call November 07, 2025 10:00 AM ET Speaker0Ladies and gentlemen, thank you for standing by. My name is Abby, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Essent Group Limited Third Quarter Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session.Thank you. And I would now like to turn the conference over to Phil Stef ...

Essent Group (NYSE:ESNT) Q3 2025 Earnings Call November 07, 2025 10:00 AM ET Speaker1Ladies and gentlemen, thank you for standing by. My name is Abby, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Essent Group Limited third quarter earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during that time, simply press star ...

Financial Performance - Net income decreased from $195.3 million in 2Q25 to $164.2 million in 3Q25[5] - Annualized Return on Equity (ROE) decreased from 13.8% in 2Q25 to 11.5% in 3Q25[5] - Shareholders' equity remained constant at $5.7 billion in both 2Q25 and 3Q25[5] - The combined ratio for the Mortgage Insurance segment increased from 22.1% in 2Q25 to 33.9% in 3Q25[5] - Book value per share grew to $58.86 as of September 2025, with an annualized growth rate of 18.1% since December 31, 2013[10] Portfolio and Risk Management - Insurance In Force (IIF) increased from $246.8 billion in 2Q25 to $248.8 billion in 3Q25[5] - New Insurance Written (NIW) slightly decreased from $12.5 billion in 2Q25 to $12.2 billion in 3Q25[5] - Portfolio default rate increased from 2.12% in 2Q25 to 2.29% in 3Q25[5] - 97% of the Insurance In Force (IIF) is subject to reinsurance protection as of September 30, 2025[5, 32, 35] Capital and Liquidity - PMIERs Sufficiency Ratio was 177% in 3Q25[5] - Risk-to-Capital Ratio improved from 9.2:1 in 2Q25 to 8.9:1 in 3Q25[5] - The company has $5.7 billion in GAAP Equity as of September 30, 2025[34] - Available liquidity at the holding companies is $1.0 billion, with an additional $500 million in undrawn capacity with the credit facility as of September 30, 2025[34]

分组1 - Essent Group reported quarterly earnings of $1.67 per share, missing the Zacks Consensus Estimate of $1.75 per share, but showing an increase from $1.65 per share a year ago, resulting in an earnings surprise of -4.57% [1] - The company posted revenues of $311.83 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.18%, although this represents a decline from year-ago revenues of $316.58 million [2] - Over the last four quarters, Essent Group has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] 分组2 - The stock has added about 11.7% since the beginning of the year, underperforming compared to the S&P 500's gain of 14.3% [3] - The current consensus EPS estimate for the coming quarter is $1.79 on revenues of $310.92 million, and for the current fiscal year, it is $7.11 on revenues of $1.26 billion [7] - The Zacks Industry Rank for Insurance - Property and Casualty is currently in the top 18% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Exhibit 99.1 Essent Group Ltd. Announces Third Quarter 2025 Results and Declares Quarterly Dividend HAMILTON, Bermuda, November 7, 2025--Essent Group Ltd. (NYSE: ESNT) today reported net income for the quarter ended September 30, 2025 of $164.2 million or $1.67 per diluted share, compared to $176.2 million or $1.65 per diluted share for the quarter ended September 30, 2024. Essent also announced today that its Board of Directors has declared a quarterly cash dividend of $0.31 per common share. The dividend ...

Core Viewpoint - Essent Group Ltd. reported a net income of $164.2 million for Q3 2025, reflecting a slight decrease from $176.2 million in Q3 2024, while also announcing a quarterly cash dividend of $0.31 per share [1][2]. Financial Performance - Net income for the quarter ended September 30, 2025, was $164.2 million or $1.67 per diluted share, compared to $176.2 million or $1.65 per diluted share for the same quarter in 2024 [1][11]. - Total revenues for Q3 2025 were $311.8 million, down from $316.6 million in Q3 2024 [11][12]. - Net investment income for the nine months ended September 30, 2025, was $177.3 million, up 7% from the same period in 2024 [8]. Insurance Metrics - New insurance written for Q3 2025 was $12.2 billion, a decrease from $12.5 billion in Q2 2025 and Q3 2024 [8]. - Insurance in force as of September 30, 2025, was $248.8 billion, compared to $246.8 billion as of June 30, 2025, and $243.0 billion as of September 30, 2024 [8][20]. - The company reported a weighted average credit score of 746 for its insurance portfolio as of September 30, 2025 [26]. Shareholder Returns - The Board of Directors declared a quarterly cash dividend of $0.31 per common share, payable on December 10, 2025, to shareholders of record on December 1, 2025 [1][2]. - Year-to-date through October 31, 2025, Essent repurchased 8.7 million common shares for $501 million, with a new $500 million share repurchase authorization approved for execution through year-end 2027 [8]. Ratings and Outlook - Moody's Ratings upgraded the insurance financial strength rating of Essent Guaranty, Inc. to A2 from A3 and the senior unsecured debt rating of Essent Group Ltd. to Baa2 from Baa3, with a stable outlook [8].

Core Insights - Essent Group Ltd. (NYSE:ESNT) is recognized among the 15 Dividend Growth Stocks with the highest growth rates [1] - Keefe Bruyette raised the price target for Essent Group from $67 to $71 while maintaining a Market Perform rating [3] - The company plays a crucial role in the US housing finance system by providing private mortgage insurance and is expanding into title insurance [2] Business Strategy - Essent Group focuses on maintaining strong partnerships with leading mortgage lenders and aligning with GSE regulations [4] - The company effectively manages credit risk through reinsurance and disciplined capital allocation [4] - Its broader strategy aims to preserve credit quality, enhance capital efficiency, and deliver solid returns to shareholders [4] Dividend Performance - Essent Group has increased its dividends for five consecutive years, with an average annual growth rate of nearly 14% [5] - The current quarterly dividend is $0.31 per share, resulting in a dividend yield of 2.04% as of October 30 [5]