Essent Group beats Q2 earnings expectations on strong credit performance

Published 08/08/2025, 11:42
 Essent Group beats Q2 earnings expectations on strong credit performance

HAMILTON, Bermuda - On Friday, Essent Group Ltd . (NYSE:ESNT) reported second quarter earnings that exceeded analyst expectations, driven by strong credit performance and increased investment income. The mortgage insurance provider posted earnings of $1.93 per diluted share, significantly above the analyst estimate of $1.72.

The company’s shares edged up 0.07% in after hours trading following the announcement.

Revenue for the quarter ended June 30, 2025, was supported by new insurance written of $12.5 billion, unchanged from the same period last year but up from $9.9 billion in the first quarter of 2025. The company’s insurance in force grew to $246.8 billion, a 2.5% increase from $240.7 billion in the second quarter of 2024.

Net income for the quarter was $195.3 million, slightly down from $203.6 million in the same period last year, while earnings per diluted share increased to $1.93 from $1.91 a year ago.

"We are pleased with our second quarter 2025 financial results, which reflect continued strength in credit, elevated portfolio persistency and increased investment income," said Mark A. Casale, Chairman and Chief Executive Officer.

The company maintained a strong credit profile with a weighted average credit score of 753 for new insurance written during the quarter, up from 748 a year earlier. Net investment income for the first half of 2025 rose 9% compared to the same period in 2024, reaching $117.5 million.

Essent’s board declared 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 been actively repurchasing shares, buying back 6.8 million common shares for $387 million year-to-date through July 31. Approximately $260 million remains under the $500 million repurchase plan authorized in February 2025.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.