On this page of StockholderLetter.com we present the latest annual shareholder letter from Essent Group Ltd. — ticker symbol ESNT. Reading current and past ESNT letters to shareholders can bring important insights into the investment thesis.
2025 ANNUAL REPORT
To Our Shareholders, I am pleased to report that Essent delivered strong nancial results in 2025, underscoring the resilience of our business model and our ability to generate consistent, high-quality earnings across market cycles. In 2025, we earned $690.0 million, or $6.90 per diluted share, and generated a 12.1% return on average equity. We ended the year with a robust capital position, including GAAP equity of $5.8 billion, a PMIERs sufficiency ratio of 169%, and 98% of mortgage insurance in force (IIF) subject to some form of reinsurance. The strength of our franchise, our approach to risk management, and our commitment to operating efficiency position Essent well for the future. As we look ahead to 2026, our priorities remain clear: to maintain the strength of our core business, to return capital to shareholders in a value-accretive fashion, to invest prudently in complementary opportunities, and to continue creating durable value for our customers, employees, and shareholders. Mortgage Insurance Disciplined Underwriting, High-Quality Portfolio Our Mortgage Insurance (MI) segment continues to be the primary driver of Essent s financial performance. Despite a challenging origination environment marked by elevated interest rates and home prices, our credit quality remains exceptionally strong. In 2025, we wrote $46.6 billion of new insurance written (NIW) with a weighted-average FICO score of 754, and we ended the year with $248.4 billion of insurance in force, representing approximately 2% year-over-year growth. Our portfolio default rate was 2.50% at year-end, reflecting normal seasonality and the continued aging of our high-quality insured portfolio. In a constrained origination market, we have maintained discipline while distinguishing Essent through a conservative balance sheet and an efficient expense structure. This approach not only supports consistent earnings, but also enables us to invest in adjacent businesses that can complement the core MI franchise over time. Reinsurance Capital Ef ciency and Strategic Diversi cation Our reinsurance platform, Essent Re, continues to generate attractive returns through profitable GSE risk-share transactions and by providing advisory services to reinsurer clients through Essent Agency. In addition, Essent Re serves as a vehicle for capital efficiency, tax optimization, and potential long-term diversification. In the fourth quarter of 2025, Essent Re entered the Lloyd s of London market through quota share agreements backed by Funds at Lloyd s, providing reinsurance exposure to a well-diversified property and casualty (P&C) portfolio. This represents an initial investment in Essent Re s strategic expansion into the P&C industry, with the sector offering a large addressable market and opportunities for supplemental revenue and earnings. The buildout of the Essent Re team and underwriting platform is well underway, including the hiring of our new Chief Underwriting Officer at the beginning of 2026. ESSENT GROUP 2025 ANNUAL REPORT | 1
Capital & Equity ($ millions) 3Q-24 4Q-24 Combined Statutory Capital(1) 2Q-25 $5,756.7 9.1:1 3Q-25 $3,572.9 $3,732.5 $5,672.8 1Q-25 8.9:1 $5,739.0 9.2:1 $3,714.1 $3,594.4 $3,584.6 3,530.5 2Q-24 Consolidated GAAP Equity 9.6:1 $3,642.4 $5,641.0 $5,379.8 3,453.6 $5,226.2 1Q-24 9.8:1 9.7:1 $5,659.3 9.9:1 $5,603.7 10.0:1 4Q-25 Combined Risk to Capital Ratio(1) (1) Prior to December 31, 2024, the statutory capital and risk-to-capital ratio represent combined metrics for the U.S. insurance subsidiaries Essent Guaranty, Inc. and Essent Guaranty of PA, Inc. Essent Guaranty of PA, Inc. provided reinsurance to Essent Guaranty, Inc. on certain policies originated prior to April 1, 2019. Effective December 31, 2024, Essent Guaranty of PA commuted its outstanding risk in force back to Essent Guaranty and surrendered its insurance license. The statutory capital and risk-to-capital ratio as of and subsequent to December 31, 2024 are for Essent Guaranty only. $12.5 $8.3 1Q-24 $12.5 2Q-24 New Insurance Written $12.2 3Q-24 $12.5 $9.9 4Q-24 1Q-25 $12.2 2Q-25 $248.4 $248.8 $246.8 $244.7 $243.6 $243.0 $240.7 $238.5 Mortgage Insurance In Force and New Insurance Written ($ billions) $11.8 3Q-25 4Q-25 Insurance in Force Net Premiums Earned and Net Income ($ millions) 15.4% 14.1% 13.8% 1Q-24 Net Premiums Earned 2Q-24 Net Income 12.5% 4Q-24 1Q-25 2Q-25 Return on Average Equity (Annualized) Additional Financial Highlights For Full Year 2025 Net premiums earned were $983.7 million, compared to $990.9 million for 2024 Mortgage Insurance expense ratio of 16.1%(1), compared to 17.5% for 2024 Percentage of Mortgage Insurance loans in default were 2.50%, compared to 2.27% at the end of 2024 Mortgage Insurance combined ratio of 32.9%, compared to 26.3% for 2024 (1) Expense ratio is calculated by dividing operating expenses by net premiums earned. 10.8% $164.2 $242.7 $246.3 $195.3 $248.8 $175.4 $245.8 $167.9 $176.2 3Q-24 11.5% 3Q-25 $155.0 11.9% $244.5 $248.9 $203.6 $251.9 $181.7 $245.6 12.8% 4Q-25
Essent s strong capital position and liquidity provide flexibility to support both investments in our business and returning capital to our shareholders. Title Insurance Modernizing the Platform, Positioning for Market Recovery Our title insurance operations made meaningful progress in 2025 as we continued to strengthen operational capabilities and pursue new avenues for growth. We advanced the development of our new transaction management system, which will modernize our platform and is scheduled for full production readiness by year-end 2026. We also continued to leverage our lender relationships and deepen collaboration between the MI and title sales teams, positioning our title insurance operations to benefit as purchase and refinance market volume ultimately normalizes. Investment Portfolio Preserving Capital, Growing Income and Yield Our investment strategy remains centered on capital preservation and the generation of stable, recurring income. At year end, 60% of our high-quality fixedincome portfolio carried a credit rating of Aaa to Aa3. Our yield on cash and investments available-for-sale was 3.8% for 2025, with a new-money yield of approximately 5% throughout the year. We also continued to execute our alternative investment strategy, stacking investments to enhance diversification and improve portfolio yield. As our investment portfolio continues to grow, we expect investment income to become an increasingly significant contributor to Essent s overall earnings profile. Capital and Shareholder Returns Disciplined Allocation, Enhanced Returns Essent s strong capital position and liquidity provide flexibility to support both investments in our business and returning capital to our shareholders. In 2025, we returned approximately $700 million to shareholders and ended the year with $1.3 billion of cash and investments at the holding companies. During the year, we repurchased 9.9 million shares for $576 million, retiring nearly 10% of shares outstanding at year-end 2024, at an average price equal to 97% of year-end 2025 book value per share. In February 2026, we announced a 13% increase in our quarterly dividend to $0.35 per share, reflecting confidence in the durability and stability of our cash flows. We continue to believe that long-term success is best measured by growth in book value per share. Since our IPO, Essent has delivered compound annual growth in book value per share of approximately 18%, a result of disciplined capital allocation and consistent operating performance. Being a Responsible Corporate Citizen In 2025, we proudly published our annual Corporate Responsibility Report, providing a comprehensive overview of our initiatives and progress. This year, we demonstrated our commitment by contributing over $1 million to more than 40 charitable organizations. Our philanthropic efforts were strategically focused on strengthening our communities through three key program pillars: Housing, Health, and Education. We believe that our dedication to being a responsible corporate citizen and creating a positive social impact is essential to building long-term, sustainable value for our shareholders. Closing Thank you for your continued confidence in Essent. We value your support and are excited about the opportunities ahead. With a strong foundation, a disciplined strategy, and a clear focus on value creation, we are confident in Essent s ability to continue fulfilling our mission of supporting affordable and sustainable homeownership and delivering long-term returns for our shareholders. Mark A. Casale Chairman and Chief Executive Officer March 2026 ESSENT GROUP 2025 ANNUAL REPORT | 3
Strength In Numbers. STRONG BALANCE SHEET EXCEPT WHERE NOTED, DATA AND RATINGS ARE AS OF DECEMBER 31, 2025 FINANCIAL STRENGTH1 Essent Guaranty, Inc. Essent Guaranty, Inc. & Essent Reinsurance Ltd. MOODY S: AM BEST: A (Excellent) A- A2 HIGH QUALITY MORTGAGE INSURANCE PORTFOLIO $248.4 BILLION 87.6 7.8% 4.6 <680 BY FICO 2 4% 9. BY LTV 3.3 Million homebuyers Essent MI has helped become successful homeowners Essent Guaranty, Inc. RISK-TO-CAPITAL 9.1:1 ROBUST REINSURANCE PROTECTION Access to Excess of Loss Reinsurance of $1.3B REINSURANCE PROTECTION ON 98% OF INSURED PORTFOLIO PMIERs Credit from Quota Share Reinsurance Treaties of $734M 680-699 700+ HIGH QUALITY PORTFOLIO OF CASH & INVESTMENTS Investment Grade Securities2 17.5% 53 S&P: Credit Rating of Aaa to Aa32 U.S Government & Agency Securities, Money Market Funds or Cash 90.00% 90.01%-95.00% 95.01% 99% 60% 35% .1 % STRONG CAPITAL & LIQUIDITY $5.8 BILLION $6.6 BILLION $1.4 BILLION $1.3 BILLION $500 MILLION 8% DEBT-TO-CAPITAL RATIO Of GAAP Equity Cash and Investments at the Holding Companies 1 Consolidated Cash & Investments Undrawn Credit Facility Capacity (an Additional Source of Liquidity) For more information, visit "Understanding Credit Ratings" in the Ratings section at moodys.com, the "Rating Methodologies" section at web.ambest.com and "Understanding Credit Ratings" at spglobal.com. 2 Excess U.S. PMIERs Capital Based on ratings issued by Moody's, if available. S&P or Fitch rating utilized if Moody's not available. Percentages exclude money market funds, cash and Other Invested Assets.
 • shareholder letter icon 3/26/2026 Letter Continued (Full PDF)
 • stockholder letter icon 4/6/2023 ESNT Stockholder Letter
 • stockholder letter icon 3/29/2024 ESNT Stockholder Letter
 • stockholder letter icon 3/25/2025 ESNT Stockholder Letter
 • stockholder letter icon More "Insurance Brokers" Category Stockholder Letters
 • Benford's Law Stocks icon ESNT Benford's Law Stock Score = 87


ESNT Shareholder/Stockholder Letter Transcript:

2025
ANNUAL
REPORT

To Our Shareholders,
I am pleased to report that Essent delivered strong
    nancial results in 2025, underscoring the resilience of 
our business model and our ability to generate consistent, 
high-quality earnings across market cycles. 
In 2025, we earned $690.0 million, or $6.90 per diluted
share, and generated a 12.1% return on average equity.
We ended the year with a robust capital position, including
GAAP equity of $5.8 billion, a PMIERs sufficiency ratio of
169%, and 98% of mortgage insurance in force (IIF)
subject to some form of reinsurance.
The strength of our franchise, our approach to risk
management, and our commitment to operating
efficiency position Essent well for the future. As we
look ahead to 2026, our priorities remain clear: to
maintain the strength of our core business, to return
capital to shareholders in a value-accretive fashion, to
invest prudently in complementary opportunities, and
to continue creating durable value for our customers,
employees, and shareholders.
Mortgage Insurance   Disciplined Underwriting,
High-Quality Portfolio
Our Mortgage Insurance (MI) segment continues to be
the primary driver of Essent   s financial performance.
Despite a challenging origination environment marked
by elevated interest rates and home prices, our
credit quality remains exceptionally strong. In 2025,
we wrote $46.6 billion of new insurance written (NIW)
with a weighted-average FICO score of 754, and we
ended the year with $248.4 billion of insurance in force,
representing approximately 2% year-over-year growth.
Our portfolio default rate was 2.50% at year-end,
reflecting normal seasonality and the continued aging
of our high-quality insured portfolio.
In a constrained origination market, we have
maintained discipline while distinguishing Essent
through a conservative balance sheet and an efficient
expense structure. This approach not only supports
consistent earnings, but also enables us to invest in
adjacent businesses that can complement the core
MI franchise over time.
Reinsurance   Capital Ef   ciency and
Strategic Diversi   cation
Our reinsurance platform, Essent Re, continues
to generate attractive returns through profitable GSE
risk-share transactions and by providing advisory
services to reinsurer clients through Essent Agency.
In addition, Essent Re serves as a vehicle for
capital efficiency, tax optimization, and potential
long-term diversification.
In the fourth quarter of 2025, Essent Re entered
the Lloyd   s of London market through quota share
agreements backed by Funds at Lloyd   s, providing
reinsurance exposure to a well-diversified property
and casualty (P&C) portfolio. This represents an
initial investment in Essent Re   s strategic expansion
into the P&C industry, with the sector offering a
large addressable market and opportunities for
supplemental revenue and earnings. The buildout
of the Essent Re team and underwriting platform is
well underway, including the hiring of our new Chief
Underwriting Officer at the beginning of 2026.
ESSENT GROUP

2025 ANNUAL REPORT
| 1

Capital & Equity ($ millions)
3Q-24
4Q-24
Combined Statutory Capital(1)
2Q-25
$5,756.7
9.1:1
3Q-25
$3,572.9
$3,732.5
$5,672.8
1Q-25
8.9:1
$5,739.0
9.2:1
$3,714.1
$3,594.4
$3,584.6
3,530.5
2Q-24
Consolidated GAAP Equity
9.6:1
$3,642.4
$5,641.0
$5,379.8
3,453.6
$5,226.2
1Q-24
9.8:1
9.7:1
$5,659.3
9.9:1
$5,603.7
10.0:1
4Q-25
Combined Risk to Capital Ratio(1)
(1) Prior to December 31, 2024, the statutory capital and risk-to-capital ratio represent combined metrics for the U.S. insurance subsidiaries Essent Guaranty, Inc. and Essent Guaranty of PA, Inc. Essent
Guaranty of PA, Inc. provided reinsurance to Essent Guaranty, Inc. on certain policies originated prior to April 1, 2019. Effective December 31, 2024, Essent Guaranty of PA commuted its outstanding
risk in force back to Essent Guaranty and surrendered its insurance license. The statutory capital and risk-to-capital ratio as of and subsequent to December 31, 2024 are for Essent Guaranty only.
$12.5
$8.3
1Q-24
$12.5
2Q-24
New Insurance Written
$12.2
3Q-24
$12.5
$9.9
4Q-24
1Q-25
$12.2
2Q-25
$248.4
$248.8
$246.8
$244.7
$243.6
$243.0
$240.7
$238.5
Mortgage Insurance In Force and New Insurance Written ($ billions)
$11.8
3Q-25
4Q-25
Insurance in Force
Net Premiums Earned and Net Income ($ millions)
15.4%
14.1%
13.8%
1Q-24
Net Premiums Earned
2Q-24
Net Income
12.5%
4Q-24
1Q-25
2Q-25
Return on Average Equity (Annualized)
Additional Financial Highlights For Full Year 2025
    Net premiums earned were $983.7 million, compared to $990.9 million for 2024
    Mortgage Insurance expense ratio of 16.1%(1), compared to 17.5% for 2024
    Percentage of Mortgage Insurance loans in default were 2.50%, compared to 2.27% at the end of 2024
    Mortgage Insurance combined ratio of 32.9%, compared to 26.3% for 2024
(1) Expense ratio is calculated by dividing operating expenses by net premiums earned.
10.8%
$164.2
$242.7
$246.3
$195.3
$248.8
$175.4
$245.8
$167.9
$176.2
3Q-24
11.5%
3Q-25
$155.0
11.9%
$244.5
$248.9
$203.6
$251.9
$181.7
$245.6
12.8%
4Q-25

    Essent   s strong capital position and liquidity provide flexibility to 
support both investments in our business and returning capital 
to our shareholders.   
Title Insurance     Modernizing the Platform,
Positioning for Market Recovery
Our title insurance operations made meaningful progress
in 2025 as we continued to strengthen operational
capabilities and pursue new avenues for growth. We
advanced the development of our new transaction
management system, which will modernize our platform
and is scheduled for full production readiness by
year-end 2026. We also continued to leverage
our lender relationships and deepen collaboration
between the MI and title sales teams, positioning our
title insurance operations to benefit as purchase and
refinance market volume ultimately normalizes.
Investment Portfolio     Preserving Capital, Growing
Income and Yield
Our investment strategy remains centered on capital
preservation and the generation of stable, recurring
income. At year end, 60% of our high-quality fixedincome portfolio carried a credit rating of Aaa to Aa3.
Our yield on cash and investments available-for-sale was
3.8% for 2025, with a new-money yield of approximately
5% throughout the year. We also continued to execute
our alternative investment strategy, stacking investments
to enhance diversification and improve portfolio yield. As
our investment portfolio continues to grow, we expect
investment income to become an increasingly significant
contributor to Essent   s overall earnings profile.
Capital and Shareholder Returns     Disciplined
Allocation, Enhanced Returns
Essent   s strong capital position and liquidity provide
flexibility to support both investments in our business
and returning capital to our shareholders. In 2025, we
returned approximately $700 million to shareholders
and ended the year with $1.3 billion of cash and
investments at the holding companies. During the year,
we repurchased 9.9 million shares for $576 million,
retiring nearly 10% of shares outstanding at year-end
2024, at an average price equal to 97% of year-end
2025 book value per share. In February 2026, we
announced a 13% increase in our quarterly dividend to
$0.35 per share, reflecting confidence in the durability
and stability of our cash flows.
We continue to believe that long-term success is
best measured by growth in book value per share.
Since our IPO, Essent has delivered compound annual
growth in book value per share of approximately 18%,
a result of disciplined capital allocation and consistent
operating performance.
Being a Responsible Corporate Citizen
In 2025, we proudly published our annual Corporate
Responsibility Report, providing a comprehensive
overview of our initiatives and progress. This year, we
demonstrated our commitment by contributing over
$1 million to more than 40 charitable organizations.
Our philanthropic efforts were strategically focused
on strengthening our communities through three key
program pillars: Housing, Health, and Education. We
believe that our dedication to being a responsible
corporate citizen and creating a positive social impact
is essential to building long-term, sustainable value for
our shareholders.
Closing
Thank you for your continued confidence in Essent.
We value your support and are excited about the
opportunities ahead. With a strong foundation, a
disciplined strategy, and a clear focus on value creation,
we are confident in Essent   s ability to continue fulfilling
our mission of supporting affordable and sustainable
homeownership and delivering long-term returns for
our shareholders.
Mark A. Casale
Chairman and Chief Executive Officer
March 2026
ESSENT GROUP

2025 ANNUAL REPORT
| 3

Strength In Numbers.
STRONG BALANCE SHEET
EXCEPT WHERE NOTED, DATA AND RATINGS ARE AS OF DECEMBER 31, 2025
FINANCIAL STRENGTH1
Essent Guaranty, Inc.
Essent Guaranty, Inc. & Essent Reinsurance Ltd.
MOODY   S:
AM BEST:
A (Excellent) A-
A2
HIGH QUALITY MORTGAGE
INSURANCE PORTFOLIO
$248.4 BILLION
87.6
7.8%
4.6
<680
BY FICO
2
4%
9.
BY LTV
    3.3 Million
homebuyers Essent MI
has helped become
successful homeowners
Essent Guaranty, Inc.
RISK-TO-CAPITAL
9.1:1
ROBUST REINSURANCE PROTECTION
Access to
Excess of Loss
Reinsurance of
$1.3B
REINSURANCE
PROTECTION ON
98%
OF INSURED
PORTFOLIO
PMIERs Credit from
Quota Share
Reinsurance Treaties of
$734M
680-699
700+
HIGH QUALITY PORTFOLIO OF CASH & INVESTMENTS
Investment Grade
Securities2
17.5%
53
S&P:
Credit Rating of
Aaa to Aa32
U.S Government &
Agency Securities,
Money Market
Funds or Cash
   90.00%
90.01%-95.00%
   95.01%
99%
60%
35%
.1 %
STRONG CAPITAL & LIQUIDITY
$5.8 BILLION
$6.6 BILLION
$1.4 BILLION
$1.3 BILLION
$500 MILLION
8% DEBT-TO-CAPITAL
RATIO
Of GAAP Equity
Cash and Investments at the
Holding Companies
1
Consolidated Cash & Investments
Undrawn Credit Facility Capacity
(an Additional Source of Liquidity)
For more information, visit "Understanding Credit Ratings" in the Ratings section at
moodys.com, the "Rating Methodologies" section at web.ambest.com and
"Understanding Credit Ratings" at spglobal.com.
2
Excess U.S. PMIERs Capital
Based on ratings issued by Moody's, if available. S&P or Fitch rating utilized if Moody's not available.
Percentages exclude money market funds, cash and Other Invested Assets.


shareholder letter icon 3/26/2026 Letter Continued (Full PDF)
 

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