Essent recently released its 10-Q report for the quarter ended March 31, 2026. Essent Group Ltd., through its subsidiaries, writes private mortgage insurance and reinsurance for U.S. mortgage lenders, borrowers and investors, and also provides title insurance and settlement services. The company operates in two segments, Mortgage Insurance and Reinsurance, and its mortgage insurance subsidiary is approved by Fannie Mae and Freddie Mac and licensed in all 50 states and the District of Columbia.
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Essent said its mortgage insurance business generated new insurance written of approximately $11.1 billion in the first quarter of 2026, up from approximately $9.9 billion in the first quarter of 2025. Its mortgage insurance portfolio had a persistency rate of 84.7% at March 31, 2026, and monthly premium policies accounted for 98% of new insurance written in the quarter, compared with 99% a year earlier.
Essent Re, its Bermuda-based reinsurance subsidiary, covered approximately $2.1 billion of GSE and other mortgage risk share transactions as of March 31, 2026. The company said Essent Re also reinsures Essent Guaranty’s new insurance written under a quota share agreement and began reinsuring certain property and casualty risks on January 1, 2026.
The company said elevated mortgage rates continued to reduce home buying and refinancing activity, which lowered mortgage originations, new insurance written, and title insurance and settlement transactions. At the same time, higher rates increased net investment income and supported persistency in the mortgage insurance book.
Essent reported 520 employees as of March 31, 2026. Its holding company and reinsurance business are domiciled in Bermuda, while its U.S. mortgage insurance and title insurance operations are headquartered in Radnor, Pennsylvania.
On the regulatory side, Essent noted that Bermuda’s Corporate Income Tax Act, effective January 1, 2025, imposes a 15% corporate income tax on in-scope entities, but said its Bermuda companies currently qualify for the limited international presence exception. The company also said that qualification remains subject to interpretation and future business decisions.
Essent said Hurricane Helene and Hurricane Milton caused property damage in several states in late 2024, and that the eventual impact on reserves will depend on how hurricane-related delinquencies perform and what ultimate losses are expected on those loans. It also said geopolitical tensions in the Middle East could affect interest rates, consumer behavior and future property and casualty losses in the reinsurance segment. As a result of these announcements, the company's shares have moved 2.52% on the market, and are now trading at a price of $63.13. For more information, read the company's full 10-Q submission here.
