Q4 2025 Essent Group Ltd Earnings Call Transcript
Key Points
- Essent Group Ltd (ESNT) reported a strong net income of $155 million for Q4 2025, contributing to a full-year net income of $690 million.
- The company achieved a return on average equity of 12% for the full year 2025.
- Essent Group Ltd (ESNT) increased its book value per share by 13% year-over-year, reaching $60.31 as of December 30, 2025.
- The mortgage insurance in force grew to $248 billion, marking a 2% increase compared to the previous year.
- Essent Group Ltd (ESNT) successfully executed a reinsurance strategy, with 98% of its mortgage insurance portfolio subject to reinsurance, enhancing capital resources and risk management.
- The company's mortgage insurance net premium earned for Q4 2025 was $213 million, with a slight decrease in the average net premium rate by 1 basis point from the previous quarter.
- The default rate on the mortgage insurance portfolio increased to 2.5% at the end of Q4 2025, up from 2.29% in the previous quarter.
- Operating expenses for the mortgage insurance segment increased to $34.3 million in Q4 2025, resulting in a higher expense ratio of 16.1%.
- Essent Group Ltd (ESNT) anticipates modest growth in earned premium and insurance in force due to higher mortgage rates and a smaller origination market.
- The company's title operations are unlikely to have a substantial impact on earnings unless there is a significant decrease in mortgage rates.
Hello and thank you for standing by. My name is Tiffany and I will be your conference operator today. At this time, I would like to welcome everyone to the Essence Group Limited 4th quarter earnings call.
All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session.
If you would like to ask a question during that time, simply press star, then the number one on your telephone keypad.
I would now like to turn the call over to Phil Stefano, Investor Relations. Phil, please go ahead.
Thank you, Tiffany. Good morning, everyone, and welcome to our call. Joining me today are Marc Cassau, Chairman and CEO, and David Weinstock, Chief Financial Officer. Also on hand for the Q&A portion of the call is Chris Karen, President of Essen Guarantee.
Our press release, which contains Essen's financial results for the 4th quarter and full year 2025, was issued earlier today and is available on our website
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
