JPMorgan Raises Essent Group (ESNT) Target as Policy Risk Clouds Consumer Finance

Company Overview - Essent Group Ltd. is a Bermuda-based holding company that provides private mortgage insurance, reinsurance, title insurance, and settlement services for mortgage lenders, borrowers, and investors [5]. Financial Performance - In Q3 2025, Essent reported a net income of $164 million, with diluted earnings per share (EPS) of $1.67 [3]. - The company's US mortgage insurance in force increased to $249 billion, reflecting a 2% growth from the previous year, while persistency remained strong at 86% [3]. Shareholder Returns - Chairman and CEO Mark Casale emphasized Essent's robust capital position, noting that the company repurchased nearly 9 million shares for over $500 million year-to-date through October 31 [4]. - A new share repurchase authorization of $500 million has been announced, which will be effective through year-end 2027, alongside a Q4 dividend of $0.31 per share [4]. Market Outlook - JPMorgan analyst Richard Shane raised the price target for Essent Group to $66 from $65, maintaining a Neutral rating, amid updated ratings and price targets across the consumer finance sector [2]. - The analyst highlighted potential volatility in the sector due to President Trump's proposal to cap credit card interest rates at 10% for one year, which could significantly impact issuer profitability and consumer credit access [2].