The EPS beat was entirely driven by aggressive buyback math (9.1% fewer shares), not operating improvement — net income actually declined 2.1% YoY. The 54% surge in loss provisions and the Reinsurance segment's loss ratio spike to 33.9% (from near zero) are watch items. Monitor the cure rate trajectory (30% in Q1 vs 89% a year ago) and the Reinsurance segment's underwriting discipline in coming quarters.
Price Chart
Executive Summary
Essent Group Ltd. reported Q1 2026 diluted EPS of $1.82, beating the $1.75 consensus estimate by 4.0%, on total revenues of $336.1M, which exceeded the $323.9M consensus by 3.8%. Net income was $171.8M, down slightly from $175.4M a year ago, but the EPS beat was driven by a 9.1% reduction in diluted share count from aggressive buybacks. The mortgage insurance combined ratio improved to 34.8% from 32.9% a year ago, though the Reinsurance segment saw a spike in loss ratio to 33.9% from near zero.
Key Financial Metrics
Key Facts
- Q1 2026 diluted EPS of $1.82 vs consensus $1.75 (beat by 4.0%)
- Total revenues of $336.1M vs consensus $323.9M (beat by 3.8%)
- Net income of $171.8M vs $175.4M in Q1 2025 (-2.1% YoY)
- Net premiums earned rose 5.8% YoY to $260.1M
- Provision for losses and LAE surged 54.1% YoY to $48.2M
- Diluted share count fell 9.1% YoY to 94.6M from 103.9M
- Book value per share rose to $61.20 from $60.31 at Dec 2025
- Quarterly dividend maintained at $0.35/share
- Year-to-date through April 30, repurchased ~3.5M shares for $214M+
- Mortgage insurance combined ratio improved to 34.8% from 32.9% YoY
Financial Impact
EPS beat of $0.07 vs consensus on revenue beat of $12.2M; net income down $3.6M YoY
Risk Factors
- Provision for losses surged 54% YoY to $48.2M, signaling credit deterioration
- Reinsurance segment loss ratio jumped to 33.9% from near zero a year ago
- Cure rate on defaults collapsed to 30% from 89% a year ago, indicating worsening credit quality
- Net income declined 2.1% YoY despite revenue growth — operating leverage is negative
- Aggressive buybacks ($214M+ YTD) reduce capital flexibility
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001448893-26-000013 |
| Document: esnt-20260508.htm | 0001448893-26-000013 |
| Document: 0001448893-26-000013-index-headers.html | 0001448893-26-000013 |
| Document: 0001448893-26-000013-index.html | 0001448893-26-000013 |
| Document: 0001448893-26-000013.txt | 0001448893-26-000013 |
| 8-K Data (Synthetic) | 0001448893-26-000013 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 17, 2026 5w ago | Insider Cluster | $67.19 $64.70 | ▲ +3.71% | ▲ +3.91% | $66.31 (+1.31%) |
Sep 14, 2026 6w ago | 144 | $68.80 $61.68 | ▼ −10.35% | ▼ −12.61% | $66.31 (−3.62%) |
Sep 14, 2026 6w ago | 144 | $68.80 $61.68 | ▼ −10.35% | ▼ −12.61% | $66.31 (−3.62%) |
Aug 25, 2026 9w ago | Insider Cluster | $69.59 $64.26 | ▲ +7.66% | ▲ +7.80% | $66.31 (+4.71%) |
Aug 24, 2026 9w ago | 144 | $68.47 $65.70 | ▼ −4.05% | ▼ −5.36% | $66.31 (−3.15%) |
Aug 20, 2026 9w ago | Insider Cluster | $68.07 $66.47 | ▼ −2.35% | ▼ −3.37% | $66.31 (−2.59%) |
Aug 7, 2026 11w ago | 8-K | $68.72 $69.18 | ▲ +0.67% | ▲ +1.07% | $66.31 (−3.51%) |
Jul 20, 2026 14w ago | Insider Cluster | $65.48 $69.58 | ▲ +6.26% | ▲ +3.70% | $66.31 (+1.27%) |
Jul 2, 2026 16w ago | Insider Cluster | $64.53 $66.73 | ▼ −3.41% | ▼ −2.56% | $66.31 (−2.76%) |
Jun 26, 2026 17w ago | 144 | $64.83 $65.75 | ▲ +1.42% | ▲ +1.70% | $66.31 (+2.28%) |
US Market Status
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