Essent .(US:ESNT)2026-02-13 12:02Financial Performance - For Q4 2025, Essent Group Ltd. reported net income of $155.0 million, or $1.60 per diluted share, a decrease from $167.9 million, or $1.58 per diluted share in Q4 2024[1] - For the full year 2025, net income was $690.0 million, or $6.90 per diluted share, compared to $729.4 million, or $6.85 per diluted share in 2024[1] - Total revenues for Q4 2025 were $312.4 million, compared to $315.0 million in Q4 2024[14] - Total revenues for the year ended December 31, 2025, reached $1,260,935,000, compared to $1,242,904,000 in 2024, indicating a year-over-year increase of 1.5%[23] - Net income for the quarter ended December 31, 2025, was $154,982,000, down from $164,215,000 in the previous quarter, reflecting a decrease of 7.5%[18] Shareholder Returns - The company returned nearly $700 million to shareholders in 2025 through dividends and share repurchases, retiring nearly 10% of outstanding shares[3] - The company repurchased 9.9 million common shares for $576 million in 2025[9] Insurance Operations - New insurance written for Q4 2025 was $11.8 billion, down from $12.2 billion in both Q3 2025 and Q4 2024[9] - As of December 31, 2025, mortgage insurance in force was $248.4 billion, slightly down from $248.8 billion as of September 30, 2025[9] - The loss ratio for the year ended December 31, 2025, was 16.8%, an increase from 8.8% in 2024, indicating a rise in claims relative to premiums earned[23][24] - The expense ratio for the year ended December 31, 2025, was 16.1%, slightly improved from 17.5% in 2024, showing better cost management relative to premiums earned[23][24] Asset Management - Total assets as of December 31, 2025, were $7.44 billion, an increase from $7.11 billion in 2024[16] - Cash and investments available for sale at the holding companies increased to $1,268,579,000 as of December 31, 2025, compared to $1,038,747,000 in the previous quarter, showing improved liquidity[18] - Total cash and investments increased to $6,609,647,000, up from $6,312,101,000 in the previous year, a growth of 4.7%[63] Investment Performance - The yield on cash and investments available for sale was 3.84% for the three months ended December 31, 2025, slightly up from 3.83% for the year ended December 31, 2025[67] - The aggregate yield on total cash and investments was 3.85% in 2025, down from 3.90% in 2024, suggesting a slight decrease in overall investment efficiency[67] - The return on other invested assets decreased to 4.15% in 2025 from 5.06% in 2024, indicating a decline in performance of these assets[67] Risk and Default Metrics - The percentage of loans in default increased to 2.50% in Q4 2025 from 2.27% in Q4 2024, reflecting a rise in loan defaults[35] - The default rate as of December 31, 2025, was 2.50%, compared to 2.27% in the previous year[55] - The average reserve per default increased to $21.3, up from $16.8 in the previous year[55] Future Outlook - The company entered the Lloyd's of London market to reinsure certain property and casualty risks starting in the first quarter of 2026, expanding its business operations[22] - The company anticipates a reduction in PMIERs minimum required assets, with a total of $733,954 expected[45] Geographic Distribution - The geographic distribution of insurance in force shows California at 12.1%, Florida at 12.0%, and Texas at 11.4% as of December 31, 2025[49] - The company’s geographic data indicates a slight decrease in the percentage of insurance in force in California from 12.5% in December 2024 to 12.1% in December 2025[49]