Essent Group Q4 net income falls on drop in new mortgage insurance written

Overview

• Bermuda mortgage insurer's Q4 net income decreased yr/yr

• Mortgage insurance new insurance written declined in Q4 2025

• Company repurchased 9.9 mln shares, retiring nearly 10% of shares

Outlook

• Essent did not provide specific financial guidance for future quarters or the full year

Result Drivers

• CAPITAL MANAGEMENT - Essent emphasized its strong capital position and returned nearly $700 mln to shareholders through dividends and repurchases in 2025

• REINSURANCE EXPANSION - Essent Re entered into new quota share agreements to reinsure property and casualty risks, effective Q1 2026

• MORTGAGE INSURANCE - New insurance written for Q4 2025 was $11.8 bln, down from $12.2 bln in Q3 2025 and Q4 2024

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the property & casualty insurance peer group is "buy."

• Wall Street's median 12-month price target for Essent Group Ltd is $69.00, about 5.1% above its February 12 closing price of $65.64

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release: ID:nGNX7ShmJK

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