Essent Group Ltd. Q4 2025 Earnings Call Summary

Performance was driven by positive credit trends and the benefit of higher interest rates on both persistency and investment income. Management attributes the 13% book value growth to a 'buy, manage, and distribute' model that prioritizes unit economics over volume. Persistency remains high at 86% because roughly 60% of the in-force portfolio has a note rate of 6% or lower, creating a 'lock-in' effect. The portfolio default rate increase is characterized as normal seasonality and the expected season ...