The headline beat is tempered by a declining net income trend due to a normalizing credit environment. Monitor the next quarterly loss provision and persistency rate; if defaults continue to rise from historically low levels, credit headwinds could pressure the stock despite strong buyback support.
Price Chart
Executive Summary
Essent Group Ltd. reported Q2 2026 EPS of $2.08, a 18.4% beat vs consensus of $1.76, on total revenues of $362.7M (vs consensus $340.3M). Net income fell 2.9% YoY to $189.7M due to a higher loss provision, though this was driven by normalizing credit conditions and an expanding reinsurance book. The mortgage insurance segment continued to generate strong cash flow, supporting aggressive share buybacks ($348M YTD) and a 12.9% 12-month growth in book value per share inclusive of dividends.
Key Financial Metrics
Key Facts
- Diluted EPS of $2.08 beat the $1.76 consensus by $0.32 (18.4%)
- Total revenues of $362.7M, up 13.6% YoY, but consensus was $340.3M
- Net income of $189.7M, down 2.9% YoY vs $195.3M, reflecting a normalized loss provision of $49.0M (Q2 2025: $17.1M)
- Mortgage NIW jumped 12.7% YoY to $14.1B; refinance share rose to 12.6% from 7.4% a year ago
- Year-to-date share repurchases of 5.8M shares for $348M; shares outstanding down 10.8% YoY
- Book value per share grew 10.6% YoY to $63.01; BVPS inclusive of dividends grew 12.9%
- PMIERs sufficiency ratio remained strong at 172%, with $1.51B of excess available assets
Financial Impact
EPS surprise of $0.32 (18.4%) vs consensus, revenue beat of $22.4M (6.6%)
Risk Factors
- Net income declined 2.9% YoY; loss provision more than doubled to $49.0M as credit normalizes from trough levels
- Persistency declined to 84.0% from 85.8% a year ago, pressuring in-force premium volume
- Weighted average credit score on NIW slipped to 751 from 753, indicating slightly looser underwriting
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001448893-26-000022 |
| Document: esnt-20260807.htm | 0001448893-26-000022 |
| Document: 0001448893-26-000022-index-headers.html | 0001448893-26-000022 |
| Document: 0001448893-26-000022-index.html | 0001448893-26-000022 |
| Document: 0001448893-26-000022.txt | 0001448893-26-000022 |
| 8-K Data (Synthetic) | 0001448893-26-000022 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 17, 2026 5w ago | Insider Cluster | $67.19 $64.70 | ▲ +3.71% | ▲ +3.91% | $66.70 (+0.73%) |
Sep 14, 2026 6w ago | 144 | $68.80 $61.68 | ▼ −10.35% | ▼ −12.61% | $66.70 (−3.05%) |
Sep 14, 2026 6w ago | 144 | $68.80 $61.68 | ▼ −10.35% | ▼ −12.61% | $66.70 (−3.05%) |
Aug 25, 2026 8w ago | Insider Cluster | $69.59 $64.26 | ▲ +7.66% | ▲ +7.80% | $66.70 (+4.15%) |
Aug 24, 2026 9w ago | 144 | $68.47 $65.70 | ▼ −4.05% | ▼ −5.36% | $66.70 (−2.59%) |
Aug 20, 2026 9w ago | Insider Cluster | $68.07 $66.47 | ▼ −2.35% | ▼ −3.37% | $66.70 (−2.01%) |
Aug 7, 2026 11w ago | 8-K | $68.72 $69.18 | ▲ +0.67% | ▲ +1.07% | $66.70 (−2.94%) |
Jul 20, 2026 14w ago | Insider Cluster | $65.48 $69.58 | ▲ +6.26% | ▲ +3.70% | $66.70 (+1.86%) |
Jul 2, 2026 16w ago | Insider Cluster | $64.53 $66.73 | ▼ −3.41% | ▼ −2.56% | $66.70 (−3.36%) |
Jun 26, 2026 17w ago | 144 | $64.83 $65.75 | ▲ +1.42% | ▲ +1.70% | $66.70 (+2.88%) |
US Market Status
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