Essent Group reports Q2 net income of $195.3 million

HAMILTON, Bermuda - Essent Group Ltd. (NYSE:ESNT), currently trading at an attractive P/E ratio of 8.2 and showing strong financial health according to InvestingPro analysis, reported net income of $195.3 million or $1.93 per diluted share for the second quarter ended June 30, 2025, compared to $203.6 million or $1.91 per diluted share for the same period in 2024.

The mortgage insurance provider also announced a quarterly cash dividend of $0.31 per common share, payable on September 10, 2025, to shareholders of record on August 29, 2025. The company has maintained dividend payments for seven consecutive years, with a current dividend yield of 2.17% and impressive 10.7% dividend growth over the last twelve months.

New insurance written for the second quarter was $12.5 billion, unchanged from the second quarter of 2024 but up from $9.9 billion in the first quarter of 2025. Insurance in force increased to $246.8 billion as of June 30, 2025, compared to $240.7 billion a year earlier.

Net investment income for the first half of 2025 rose 9% to $117.5 million compared to the same period in 2024.

The company’s financial position was strengthened by Moody’s Ratings upgrading the insurance financial strength rating of Essent Guaranty, Inc. to A2 from A3 on August 6, 2025. The senior unsecured debt rating of Essent Group Ltd. was also upgraded to Baa2 from Baa3, with a stable outlook.

During the second quarter, Essent entered into two excess of loss reinsurance agreements with third-party reinsurers, covering 20% of eligible policies written by Essent Guaranty, Inc. in calendar years 2025 and 2026.

The company has been active in repurchasing shares, buying back 6.8 million common shares for $387 million year-to-date through July 31, with $260 million remaining under the $500 million repurchase plan authorized in February 2025.

Chairman and CEO Mark A. Casale noted in the press release statement that the quarterly results "reflect continued strength in credit, elevated portfolio persistency and increased investment income," adding that the company’s "resilient operating model" continues to drive earnings and growth in book value per share. With an impressive gross profit margin of 82.9% and return on equity of 13%, InvestingPro analysis reveals 6 additional key insights about Essent’s performance and future prospects, available in the comprehensive Pro Research Report.

In other recent news, Essent Group reported first-quarter results that exceeded analysts’ expectations. The company’s performance in the first quarter was stronger than anticipated, which is noteworthy for investors. In addition to its financial results, Essent Group announced the expansion of its Board of Directors with the appointment of David Benson and April Galda Joyce. Benson brings extensive experience from his previous roles at the Federal National Mortgage Association and other financial institutions. These developments reflect Essent Group’s efforts to enhance its strategic growth and leadership within the mortgage insurance sector.

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