10q10k10q10k.net

What changed in Essent Group Ltd.'s 10-K — 2024 vs 2025

vs

Paragraph-level year-over-year comparison of Essent Group Ltd.'s 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+390 added−379 removedSource: 10-K (2026-02-18) vs 10-K (2025-02-19)

Top changes in Essent Group Ltd.'s 2025 10-K

390 paragraphs added · 379 removed · 315 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

107 edited+21 added−14 removed250 unchanged
Biggest changeRIF refers to the product of the coverage percentage applied to the unpaid principal balance of mortgage loans that we insure directly. 6 Portfolio by Credit Score December 31, IIF by FICO score ($ in thousands) 2024 2023 >=760 $ 99,221,741 40.7 % $ 97,085,244 40.6 % 740-759 42,574,390 17.5 41,490,720 17.4 720-739 37,953,625 15.6 37,435,781 15.7 700-719 32,657,660 13.4 31,932,469 13.4 680-699 19,772,912 8.1 19,780,944 8.3 11,465,095 4.7 11,353,104 4.6 Total $ 243,645,423 100.0 % $ 239,078,262 100.0 % December 31, Gross RIF(1) by FICO score ($ in thousands) 2024 2023 >=760 $ 26,860,197 40.3 % $ 25,752,549 40.2 % 740-759 11,799,832 17.7 11,268,607 17.6 720-739 10,512,364 15.8 10,179,683 15.9 700-719 9,067,640 13.6 8,687,001 13.6 680-699 5,440,776 8.2 5,330,894 8.3 2,932,708 4.4 2,842,640 4.4 Total $ 66,613,517 100.0 % $ 64,061,374 100.0 % _______________________________________________________________________________ (1) Gross RIF includes risk ceded under third-party reinsurance.
Biggest changePortfolio by Credit Score December 31, IIF by FICO score ($ in thousands) 2025 2024 >=760 $ 104,062,334 41.9 % $ 99,221,741 40.7 % 740-759 43,225,016 17.4 42,574,390 17.5 720-739 37,671,181 15.2 37,953,625 15.6 700-719 32,473,548 13.1 32,657,660 13.4 680-699 19,357,527 7.8 19,772,912 8.1 11,566,791 4.6 11,465,095 4.7 Total $ 248,356,397 100.0 % $ 243,645,423 100.0 % December 31, Gross RIF(1) by FICO score ($ in thousands) 2025 2024 >=760 $ 28,228,907 41.4 % $ 26,860,197 40.3 % 740-759 11,997,094 17.6 11,799,832 17.7 720-739 10,452,268 15.4 10,512,364 15.8 700-719 9,049,840 13.3 9,067,640 13.6 680-699 5,357,151 7.9 5,440,776 8.2 2,968,187 4.4 2,932,708 4.4 Total $ 68,053,447 100.0 % $ 66,613,517 100.0 % _______________________________________________________________________________ (1) Gross RIF includes risk ceded under third-party reinsurance. 6 Portfolio by LTV December 31, IIF by LTV ($ in thousands) 2025 2024 85.00% and below $ 14,736,797 5.9 % $ 14,738,289 6.0 % 85.01% to 90.00% 58,288,674 23.5 60,636,883 24.9 90.01% to 95.00% 131,950,396 53.1 127,152,954 52.2 95.01% and above 43,380,530 17.5 41,117,297 16.9 Total $ 248,356,397 100.0 % $ 243,645,423 100.0 % December 31, Gross RIF (1) by LTV ($ in thousands) 2025 2024 85.00% and below $ 1,727,701 2.5 % $ 1,745,933 2.6 % 85.01% to 90.00% 14,312,312 21.0 14,961,779 22.5 90.01% to 95.00% 38,906,277 57.2 37,510,076 56.3 95.01% and above 13,107,157 19.3 12,395,729 18.6 Total $ 68,053,447 100.0 % $ 66,613,517 100.0 % _______________________________________________________________________________ (1) Gross RIF includes risk ceded under third-party reinsurance.
During the fourth quarter of 2024, certain regions of the U.S. experienced hurricanes which have impacted our insured U.S. mortgage insurance portfolio’s performance. On September 26, 2024, Hurricane Helene made landfall and caused property damage in certain counties in Florida, Georgia, South Carolina, North Carolina, Tennessee and Virginia.
During the fourth quarter of 2024, certain regions of the U.S. experienced hurricanes which have impacted our insured mortgage insurance portfolio’s performance. On September 26, 2024, Hurricane Helene made landfall and caused property damage in certain counties in Florida, Georgia, South Carolina, North Carolina, Tennessee and Virginia.
Our loss mitigation staff is also actively engaged with servicers and the GSEs with regard to appropriate servicing and loss mitigation practices. Customers, Sales and Marketing Our mortgage insurance customers consist of originators of residential mortgage loans, such as regulated depository institutions, mortgage banks, credit unions and other lenders.
Our loss mitigation staff is also actively engaged with servicers and the GSEs with regard to appropriate servicing and loss mitigation practices. Mortgage Insurance Customers, Sales and Marketing Our mortgage insurance customers consist of originators of residential mortgage loans, such as regulated depository institutions, mortgage banks, credit unions and other lenders.
Underwriting We have established mortgage insurance underwriting guidelines that we believe protect our balance sheet and result in the insurance of high quality business. Most applications for mortgage insurance are submitted to us electronically, and we rely upon the lender's representations that the data submitted is true and correct when making our insurance decision.
Mortgage Insurance Underwriting We have established mortgage insurance underwriting guidelines that we believe protect our balance sheet and result in the insurance of high quality business. Most applications for mortgage insurance are submitted to us electronically, and we rely upon the lender's representations that the data submitted is true and correct when making our insurance decision.
In general, state regulation of our U.S. insurance businesses relates to: • licenses to transact business; • producer licensing; • approval of policy forms; • approval of premium rates; • limits on insurable loans; • quarterly, annual and other reports on our financial condition; • the basis upon which assets and liabilities must be stated; • requirements regarding contingency reserves; • minimum capital levels and adequacy ratios; • credit for reinsurance; • limitations on the types of investment instruments which may be held in our investment portfolio; 19 • special deposits of securities; • limits on dividends payable; • advertising compliance; • establishment of reserves; • claims handling; • privacy, data protection and cybersecurity; • the use of artificial intelligence (AI); • hazardous financial condition; and • enterprise risk management.
In general, state regulation of our U.S. insurance businesses relates to: • licenses to transact business; • producer licensing; • approval of policy forms; • approval of premium rates; • limits on insurable loans; • quarterly, annual and other reports on our financial condition; • the basis upon which assets and liabilities must be stated; • requirements regarding contingency reserves; • minimum capital levels and adequacy ratios; • credit for reinsurance; 19 • limitations on the types of investment instruments which may be held in our investment portfolio; • special deposits of securities; • limits on dividends payable; • advertising compliance; • establishment of reserves; • claims handling; • privacy, data protection and cybersecurity; • the use of artificial intelligence (AI); • hazardous financial condition; and • enterprise risk management.
It is reasonably possible that these new privacy laws will prompt other state and federal regulators to move forward with new privacy regulations that could impact our businesses or our customers' businesses. The NAIC’s Privacy Protections (H) Working Group (PPWG) is developing revisions to the NAIC's Privacy of 21 Consumer Financial and Health Information Regulation (“Model 672”).
It is reasonably possible that these new privacy laws will prompt other state and federal regulators to move forward with new privacy regulations that could impact our businesses or our customers' businesses. The NAIC’s Privacy Protections (H) Working Group (the "PPWG") is developing revisions to the NAIC's Privacy of 21 Consumer Financial and Health Information Regulation (“Model 672”).
See "Risk Factors—Risks Relating to Regulation and Litigation— Legislative or regulatory actions or decisions to change the role of the GSEs in the U.S. housing market generally, or changes to the charters of the GSEs with regard to the use of credit 24 enhancements generally and private mortgage insurance specifically, could reduce our revenues or adversely affect our profitability and returns " and "— Changes in the business practices of the GSEs, including actions or decisions to decrease or discontinue the use of mortgage insurance or changes in the GSEs' eligibility requirements for mortgage insurers, could reduce our revenues or adversely affect our profitability and returns.
See 24 "Risk Factors—Risks Relating to Regulation and Litigation— Legislative or regulatory actions or decisions to change the role of the GSEs in the U.S. housing market generally, or changes to the charters of the GSEs with regard to the use of credit enhancements generally and private mortgage insurance specifically, could reduce our revenues or adversely affect our profitability and returns " and "— Changes in the business practices of the GSEs, including actions or decisions to decrease or discontinue the use of mortgage insurance or changes in the GSEs' eligibility requirements for mortgage insurers, could reduce our revenues or adversely affect our profitability and returns.
We continue to upgrade and enhance our systems and technology, including: 17 • investing in new customer-facing technology that enables our customers to transact business faster and easier, whether over an internet browser or through direct system-to-system interfacing with our customers' loan origination and servicing systems; • integrating our platform with third-party technology providers used by our customers in their loan origination process and for ordering mortgage insurance and provide title closing services; • supporting a business rules engine that automatically enforces our eligibility guidelines and pricing rules at the time the mortgage insurance application is submitted; • implementing advanced business process management software that focuses on improving our underwriting productivity and that may also be used to improve our quality assurance and loss management functions; • deploying commercially available software combined with proprietary solutions to support title closing and settlement services; and • development of a title insurance production system.
We continue to upgrade and enhance our systems and technology, including: • investing in new customer-facing technology that enables our customers to transact business faster and easier, whether over an internet browser or through direct system-to-system interfacing with our customers' loan origination and servicing systems; • integrating our platform with third-party technology providers used by our customers in their loan origination process and for ordering mortgage insurance and provide title closing services; • supporting a business rules engine that automatically enforces our eligibility guidelines and pricing rules at the time the mortgage insurance application is submitted; • implementing advanced business process management software that focuses on improving our underwriting productivity and that may also be used to improve our quality assurance and loss management functions; • deploying commercially available software combined with proprietary solutions to support title closing and settlement services; and • development of a title insurance production system.
See "Risk Factors—Risks Relating to Regulation and Litigation— Our business prospects and operating 22 results could be adversely impacted if, and to the extent that, the Consumer Financial Protection Bureau's ("CFPB") rule defining a qualified mortgage ("QM") reduces the size of the origination market or creates incentives to use government mortgage insurance programs." Qualified Residential Mortgage Regulations—Risk Retention Requirements The Dodd-Frank Act generally requires an issuer of an asset-backed security or a person who organizes and initiates an asset-backed transaction (a "securitizer") to retain at least 5% of the risk associated with securitized mortgage loans, although in some cases the retained risk may be allocated between the securitizer and the mortgage originator.
See "Risk Factors—Risks Relating to Regulation and Litigation— Our business prospects and operating results could be adversely impacted if, and to the extent that, the Consumer Financial Protection Bureau's ("CFPB") rule defining a qualified mortgage ("QM") reduces the size of the origination market or creates incentives to use government mortgage insurance programs." Qualified Residential Mortgage Regulations—Risk Retention Requirements The Dodd-Frank Act generally requires an issuer of an asset-backed security or a person who organizes and initiates an asset-backed transaction (a "securitizer") to retain at least 5% of the risk associated with securitized mortgage loans, although in some cases the retained risk may be allocated between the securitizer and the mortgage originator.
In addition to these private lawsuits, other 23 private mortgage insurance companies have received "Civil Investigative Demands" from, and entered into consent orders with, the CFPB as part of its investigation to determine whether mortgage lenders and mortgage insurance providers engaged in acts or practices in connection with their captive mortgage insurance arrangements in violation of the RESPA, the Consumer Financial Protection Act and the Dodd-Frank Act.
In addition to these private lawsuits, other private mortgage insurance companies have received "Civil Investigative Demands" from, and entered into consent orders with, the CFPB as part of its investigation to determine whether mortgage lenders and mortgage insurance providers engaged in acts or practices in connection with their captive mortgage insurance arrangements in violation of the RESPA, the Consumer Financial Protection Act and the Dodd-Frank Act.
Our surveillance protocol maintains oversight over customer and vendor activities, industry dynamics, production trends and portfolio 14 performance. The portfolio management process also involves loss mitigation aimed to reduce both frequency and severity of non-performing risk. See "—Defaults and Claims" above. Modeling and Analytics Our risk management professionals are supported by substantial data analysis and sophisticated risk models.
Our surveillance protocol maintains oversight over customer and vendor activities, industry dynamics, production trends and portfolio performance. The portfolio management process also involves loss mitigation aimed to reduce both frequency and severity of non-performing risk. See "—Defaults and Claims" above. Modeling and Analytics Our risk management professionals are supported by substantial data analysis and sophisticated risk models.
The insurance holding company laws and regulations of Pennsylvania, the state in which both of our U.S. insurance subsidiaries are domiciled as of January 1, 2025, regulate, among other things, certain transactions between Essent Group Ltd., our insurance subsidiaries and/or other parties affiliated with us and certain transactions involving our common shares, including transactions that constitute a change of control of Essent Group Ltd. and, consequently, a change of control of our insurance subsidiaries.
The insurance holding company laws and regulations of Pennsylvania, the state in which both of our U.S. insurance subsidiaries are domiciled as of January 1, 2025, regulate, among other things, certain transactions between Essent Group, our insurance subsidiaries and/or other parties affiliated with us and certain transactions involving our common shares, including transactions that constitute a change of control of Essent Group and, consequently, a change of control of our insurance subsidiaries.
Under the terms of our contract underwriting agreements with customers and subject to contractual limitations on liability, we agree to indemnify the customer against losses incurred in the event that we make an underwriting error which materially restricts or impairs the saleability of a loan, results in a material reduction in the value of a loan or results in the customer being required to repurchase a loan.
Under the terms of our contract underwriting agreements with customers and subject to contractual limitations on liability, we agree to indemnify the customer against losses incurred in the event that we make an underwriting error which materially restricts or impairs the saleability of a loan, results in a material reduction in the value of a loan or results in the 5 customer being required to repurchase a loan.
Title insurance policies generally are issued on the basis of a preliminary title report or commitment, which is typically prepared after a search of one or more of public records, maps, documents and prior title policies to ascertain 15 the existence of easements, restrictions, rights of way, conditions, encumbrances or other matters affecting the title to, or use of, real property.
Title insurance policies generally are issued on the basis of a preliminary title report or commitment, which is typically prepared after a search of one or more of public records, maps, documents and prior title policies to ascertain the existence of easements, restrictions, rights of way, conditions, encumbrances or other matters affecting the title to, or use of, real property.
In the past, a number of lawsuits have challenged the actions of private mortgage insurers under RESPA, alleging that the insurers have violated the referral fee prohibition by entering into captive reinsurance arrangements or providing products or services to mortgage lenders at improperly reduced prices in return for the referral of mortgage insurance, including the provision of contract underwriting services.
In the past, a number of lawsuits have challenged the actions of private mortgage insurers under RESPA, alleging that the insurers have violated the referral fee prohibition by entering into captive reinsurance 23 arrangements or providing products or services to mortgage lenders at improperly reduced prices in return for the referral of mortgage insurance, including the provision of contract underwriting services.
We assign national account managers to each of the national lenders, providing a point of communication between us and the customer's senior management team. These professionals are responsible for the development and execution of sales and marketing strategies aimed at growing customer volumes and ensuring each customer's needs are understood and helping them to pursue their strategies.
We assign national account managers to each of the national lenders, providing a point of communication between us and the customer's senior management team. These professionals are responsible for the development and execution of sales and marketing strategies aimed at growing customer volumes and ensuring each customer's needs are understood and helping them 11 to pursue their strategies.
Primary mortgage insurance is typically offered to customers on individual loans at the time of origination on a flow (i.e., loan-by-loan) basis, but 4 can also be written in bulk transactions (in which each loan in a portfolio of loans is insured in a single transaction). A substantial majority of our policies are primary mortgage insurance.
Primary mortgage insurance is typically offered to customers on individual loans at the time of origination on a flow (i.e., loan-by-loan) basis, but can also be written in bulk transactions (in which each loan in a portfolio of loans is insured in a single transaction). A substantial majority of our policies are primary mortgage insurance.
The policy acquisition process involves the establishment of underwriting guidelines, pricing schedules and aggregate risk limits. See "—Underwriting" above. These guidelines and schedules are coded in our credit risk rule engine which is utilized to screen each loan underwritten, and are constructed to ensure prudent risk acquisition with adequate return on capital.
The policy acquisition process involves the establishment of underwriting guidelines, pricing schedules and aggregate risk limits. See "—Underwriting" above. These guidelines and schedules are coded in our credit risk rule engine which is utilized to 16 screen each loan underwritten, and are constructed to ensure prudent risk acquisition with adequate return on capital.
For a description of limits on dividends payable to Essent Group Ltd. from our U.S. insurance subsidiaries, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources" and Note 11 to our consolidated financial statements entitled "Dividends Restrictions" included elsewhere in this Annual Report.
For a description of limits on dividends payable to Essent Group from our U.S. insurance subsidiaries, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources" and Note 11 to our consolidated financial statements entitled "Dividends Restrictions" included elsewhere in this Annual Report.
Based on prior industry experience, we expect the ultimate number of hurricane-related defaults that result in claims will be less than the default-to-claim experience of non-hurricane-related defaults. 11 Claims Defaulted mortgages that are not cured result in claims. The insured customer must acquire title to the property before submitting a claim.
Based on prior industry experience, we expect the ultimate number of hurricane-related defaults that result in claims will be less than the default-to-claim experience of non-hurricane-related defaults. Claims Defaulted mortgages that are not cured result in claims. The insured customer must acquire title to the property before submitting a claim.
This time lag has increased in recent years as the industry has experienced a slowdown in foreclosures (and, consequently, a slowdown in claims submitted to mortgage insurers) largely due to foreclosure moratoriums imposed by various government entities and lenders and increased scrutiny within the mortgage servicing industry on the foreclosure process.
This time lag has increased in recent years as the 10 industry has experienced a slowdown in foreclosures (and, consequently, a slowdown in claims submitted to mortgage insurers) largely due to foreclosure moratoriums imposed by various government entities and lenders and increased scrutiny within the mortgage servicing industry on the foreclosure process.
We have an experienced team that maintains the course materials so that they are relevant and current and who facilitate training sessions for our customers. 12 We have an experienced team of national and regional account managers strategically deployed nationwide that markets our mortgage insurance products and support services.
We have an experienced team that maintains the course materials so that they are relevant and current and who facilitate training sessions for our customers. We have an experienced team of national and regional account managers strategically deployed nationwide that markets our mortgage insurance products and support services.
The Insurance Act imposes on Bermuda insurance companies solvency and liquidity standards as well as auditing and reporting requirements. Certain significant aspects of the Bermuda insurance regulatory framework are set forth below. Classification of Insurers The Insurance Act distinguishes between insurers carrying on long-term business, insurers carrying on special purpose business and insurers carrying on general business.
The Insurance Act imposes on Bermuda insurance companies solvency and liquidity standards as well as auditing and reporting requirements. Certain significant aspects of the Bermuda insurance regulatory framework are set forth below. Classification of Insurers 25 The Insurance Act distinguishes between insurers carrying on long-term business, insurers carrying on special purpose business and insurers carrying on general business.
In order to facilitate this process, we establish direct connections to the origination and servicing systems of our customers and servicers, which may require a significant upfront investment. We also provide our customers secure access to our web-based mortgage insurance ordering and servicing systems to facilitate transactions.
In order to facilitate this process, we establish direct connections to the origination and servicing systems of our customers and 17 servicers, which may require a significant upfront investment. We also provide our customers secure access to our web-based mortgage insurance ordering and servicing systems to facilitate transactions.
As a result, we believe that the QM regulations have a direct impact on establishing a subset of borrowers who can meet the regulatory standards and directly affect the willingness of lenders and mortgage investors to extend mortgage credit and therefore the size of the residential mortgage market.
As a result, we believe that the QM regulations have a direct impact on establishing a subset of borrowers who can meet the regulatory standards and directly 22 affect the willingness of lenders and mortgage investors to extend mortgage credit and therefore the size of the residential mortgage market.
There are six classifications of insurers carrying on general business 25 (Classes 1, 2, 3, 3A, 3B, and 4) with Class 1 insurers subject to the lightest regulation and Class 4 insurers subject to the strictest regulation.
There are six classifications of insurers carrying on general business (Classes 1, 2, 3, 3A, 3B, and 4) with Class 1 insurers subject to the lightest regulation and Class 4 insurers subject to the strictest regulation.
We maintain U.S. mortgage insurance underwriting centers in Radnor, Pennsylvania and Winston-Salem, North Carolina, and employ additional underwriters who are based remotely throughout the United States. We believe that the geographical distribution of our underwriting staff allows us to make underwriting determinations across different time zones and to best serve customers across the United States.
We maintain mortgage insurance underwriting centers in Radnor, Pennsylvania and Winston-Salem, North Carolina, and employ additional underwriters who are based remotely throughout the United States. We believe that the geographical distribution of our underwriting staff allows us to make underwriting determinations across different time zones and to best serve customers across the United States.
We believe that our “do the right thing” culture has enabled us to achieve our approximately 95% retention rate over the past 5 years (excluding our recently acquired title and settlement services operations). We design compelling job opportunities, aligned with our mission, in a fast-paced, results-driven work environment.
We believe that our “do the right thing” culture has enabled us to achieve our approximately 90% retention rate over the past 5 years (excluding our recently acquired title and settlement services operations). We design compelling job opportunities, aligned with our mission, in a fast-paced, results-driven work environment.
The loss of any of our larger customers could have a material adverse impact on us and our business. See "Risk Factors—Risks Relating to the Operation of Our Business— Our revenues, profitability and returns would decline if we lose a significant customer ." We seek to maintain strong institutional relationships with all of our U.S. mortgage insurance customers.
The loss of any of our larger customers could have a material adverse impact on us and our business. See "Risk Factors—Risks Relating to the Operation of Our Business— Our revenues, profitability and returns would decline if we lose a significant customer ." We seek to maintain strong institutional relationships with all of our mortgage insurance customers.
The indemnification may be in the form of monetary or other remedies, subject to per loan and annual limitations. See "Risk Factors—Risks Relating to the Operation of Our Business— We face risks associated with our contract underwriting business." Our U.S. Mortgage Insurance Portfolio All of our U.S. mortgage insurance policies in force were written since May 2010.
The indemnification may be in the form of monetary or other remedies, subject to per loan and annual limitations. See "Risk Factors—Risks Relating to the Operation of Our Business— We face risks associated with our contract underwriting business." Our Mortgage Insurance Portfolio All of our mortgage insurance policies in force were written since May 2010.
Investment Portfolio Our investment portfolio, including cash, comprises the largest single component of our balance sheet, representing 88.8% of our total assets at December 31, 2024. Our primary objectives with respect to our investment portfolio are to preserve capital, generate investment income and maintain sufficient liquidity to cover operating expenses and pay future insurance claims.
INVESTMENT PORTFOLIO Our investment portfolio, including cash, comprises the largest single component of our balance sheet, representing 88.8% of our total assets at December 31, 2025. Our primary objectives with respect to our investment portfolio are to preserve capital, generate investment income and maintain sufficient liquidity to cover operating expenses and pay future insurance claims.
Our U.S. mortgage insurance policies are issued through one of two programs: • Delegated Underwriting. We delegate to eligible customers the ability to underwrite the loans based on agreed-upon underwriting guidelines. To perform delegated underwriting, customers must be approved by our risk management group. See "—Risk Management—Loan Life Cycle Risk Management" below.
Our mortgage insurance policies are issued through one of two programs: • Delegated Underwriting. We delegate to eligible customers the ability to underwrite the loans based on agreed-upon underwriting guidelines. To perform delegated underwriting, customers must be approved by our risk management group. See "—Risk Management—Loan Life Cycle Risk Management" below.
Reinsurance We proactively manage our risk exposure and capital in part through the use of third-party reinsurance arrangements.
Outward Reinsurance We proactively manage our risk exposure and capital in part through the use of third-party reinsurance arrangements.
We engage external asset managers to assist with the trading, investment research, investment due diligence and portfolio allocation within the guidelines that we have set. Substantially all of our investments available for sale were managed by external managers as of December 31, 2024.
We engage external asset managers to assist with the trading, investment research, investment due diligence and portfolio allocation within the guidelines that we have set. Substantially all of our investments available for sale were managed by external managers as of December 31, 2025.
We are parties to several types of reinsurance arrangements: • fully collateralized excess of loss reinsurance coverage on U.S. mortgage insurance policies that we have already issued with special purpose insurers funding such reinsurance obligations through the issuance of mortgage insurance-linked notes; • excess of loss reinsurance arrangements with third party reinsurers on U.S. mortgage insurance policies that we have already issued; and • quota share reinsurance arrangements in which third party reinsurers agree to prospectively reinsure a pro rata portion of the risk on U.S. mortgage insurance policies that we write.
We are parties to several types of reinsurance arrangements: • fully collateralized excess of loss reinsurance coverage on mortgage insurance policies that we have already issued with special purpose insurers funding such reinsurance obligations through the issuance of mortgage insurance-linked notes; • excess of loss reinsurance arrangements with third party reinsurers on mortgage and title insurance policies that we have already issued; and • quota share reinsurance arrangements in which third party reinsurers agree to prospectively reinsure a pro rata portion of the risk on mortgage insurance policies that we write.
We believe that our risk management framework encompasses the major risks we face, including our mortgage and title insurance portfolios, investment risk, liquidity risk and regulatory compliance risk, among others. The majority of our risk analysis is directed toward the risks embedded in our U.S. mortgage insurance portfolio.
We believe that our risk management framework encompasses the major risks we face, including our mortgage and title insurance portfolios, investment risk, liquidity risk and regulatory compliance risk, among others. The majority of our risk analysis is directed toward the risks embedded in our mortgage insurance portfolio.
The PMIERs also include enhanced operational performance expectations and define remedial actions that apply should an approved insurer fail to comply with these requirements. As of December 31, 2024, Essent Guaranty was in compliance with the PMIERs.
The PMIERs also include enhanced operational performance expectations and define remedial actions that apply should an approved insurer fail to comply with these requirements. As of December 31, 2025, Essent Guaranty was in compliance with the PMIERs.
As of December 31, 2024, only three states accounted for greater than 5% of our portfolio, as measured by either IIF or Gross RIF, and three metropolitan statistical areas accounted for greater than 3% of our portfolio, as measured by either IIF or Gross RIF.
As of December 31, 2025, only three states accounted for greater than 5% of our portfolio, as measured by either IIF or Gross RIF, and three metropolitan statistical areas accounted for greater than 3% of our portfolio, as measured by either IIF or Gross RIF.
Our investments are subject to market-wide risks and fluctuations in value, as well as risks inherent in particular securities. As of December 31, 2024, predominantly all of our investment securities were rated investment-grade.
Our investments are subject to market-wide risks and fluctuations in value, as well as risks inherent in particular securities. As of December 31, 2025, predominantly all of our investment securities were rated investment-grade.
Mortgage Market The U.S. residential mortgage market is one of the largest in the world, with over $14.2 trillion of debt outstanding as of September 30, 2024, and includes a range of private and government-sponsored participants. Private industry participants include mortgage banks, mortgage brokers, commercial, regional and investment banks, savings institutions, credit unions, REITs, mortgage insurers and other financial institutions.
Mortgage Market The U.S. residential mortgage market is one of the largest in the world, with over $14.6 trillion of debt outstanding as of September 30, 2025, and includes a range of private and government-sponsored participants. Private industry participants include mortgage banks, mortgage brokers, commercial, regional and investment banks, savings institutions, credit unions, REITs, mortgage insurers and other financial institutions.
See "—Our Products and Services—Mortgage Insurance—Master Policy" above. Fannie Mae and Freddie Mac maintain coordinated Private Mortgage Insurer Eligibility Requirements (PMIERs). The PMIERs represent the standards by which private mortgage insurers are eligible to provide mortgage insurance on loans owned or guaranteed by Fannie Mae and Freddie Mac.
See "—Mortgage Insurance—Private Mortgage Insurance—Master Policy" above. Fannie Mae and Freddie Mac maintain coordinated Private Mortgage Insurer Eligibility Requirements (the "PMIERs"). The PMIERs represent the standards by which private mortgage insurers are eligible to provide mortgage insurance on loans owned or guaranteed by Fannie Mae and Freddie Mac.
Underwriting The search and examination function is performed by an independent agent, or directly produced by the underwriter, and the agent is responsible to ensure that the search and examination is completed.
Title Insurance Underwriting The search and examination function is performed by an independent agent, or directly produced by the underwriter, and the agent is responsible to ensure that the search and examination is completed.
The financial strength ratings of our U.S. mortgage insurance subsidiary, Essent Guaranty, Inc., are A3 with a positive outlook by Moody's Investors Service, Inc. (Moody's), A- with a stable outlook by S&P Global Ratings (S&P), and A (Excellent) with a stable outlook by A.M. Best Company (AM Best).
The financial strength ratings of our U.S. mortgage insurance subsidiary, Essent Guaranty, Inc., are A2 with a stable outlook by Moody's Investors Service, Inc. (Moody's), A- with a stable outlook by S&P Global Ratings (S&P), and A (Excellent) with a stable outlook by A.M. Best Company (AM Best).
Corporate & Other Overview Corporate & Other activities include business activities associated with our title insurance operations, income and losses from holding company treasury operations, as well as general corporate operating expenses not attributable or allocated to our Mortgage Insurance segment.
CORPORATE & OTHER Overview Corporate & Other activities include business activities associated with our title insurance operations, income and losses from holding company treasury operations, as well as general corporate operating expenses not attributable or allocated to our Mortgage Insurance and Reinsurance segments.
See "Risk Factors—Risks Relating to Regulation and Litigation— The implementation of the Basel rules may discourage the use of mortgage insurance ." Bermuda Insurance Regulation The Insurance Act 1978 of Bermuda and related regulations, as amended, or the Insurance Act, regulates the insurance business of our Bermuda-based reinsurance subsidiary, Essent Reinsurance Ltd., and provides that no person may carry on any insurance business in or from within Bermuda unless registered as an insurer under the Insurance Act by the Bermuda Monetary Authority (BMA).
See "Risk Factors—Risks Relating to Regulation and Litigation— The implementation of the Basel rules may discourage the use of mortgage insurance ." Bermuda Insurance Regulation The Insurance Act 1978 of Bermuda and related regulations, as amended, or the Insurance Act, regulates the reinsurance business of Essent Re, and provides that no person may carry on any insurance business in or from within Bermuda unless registered as an insurer under the Insurance Act by the Bermuda Monetary Authority (BMA).
Paul-Bloomington MN-WI 1.7 1.8 Chicago-Naperville-Schaumburg, IL 1.7 1.9 All Others 75.9 76.2 Total 100.0 % 100.0 % 9 December 31, 2024 2023 Gross RIF by Metropolitan Statistical Area Phoenix-Mesa-Chandler AZ 3.2 % 3.2 % Houston-Pasadena-The Woodlands TX 3.1 3.0 Denver-Aurora-Centennial CO 3.0 2.7 Dallas-Plano-Irving, TX 2.6 2.6 Los Angeles-Long Beach-Glendale, CA 2.5 2.5 Riverside-San Bernardino-Ontario CA 2.3 2.5 Atlanta-Sandy Springs-Roswell, GA 2.3 2.1 Chicago-Naperville-Schaumburg, IL 1.9 1.8 Minneapolis-St.
Paul-Bloomington MN-WI 1.8 1.7 Chicago-Naperville-Schaumburg, IL 1.6 1.7 All Others 75.8 75.9 Total 100.0 % 100.0 % December 31, 2025 2024 Gross RIF by Metropolitan Statistical Area Phoenix-Mesa-Chandler AZ 3.3 % 3.2 % Dallas-Plano-Irving, TX 3.3 3.0 Houston-Pasadena-The Woodlands TX 3.2 3.1 Riverside-San Bernardino-Ontario CA 2.5 2.5 Denver-Aurora-Centennial CO 2.5 2.6 Atlanta-Sandy Springs-Roswell, GA 2.3 2.3 Los Angeles-Long Beach-Glendale, CA 2.2 2.3 Orlando-Kissimmee-Sanford FL 1.9 1.9 Minneapolis-St.
The following data presents information on our direct U.S. mortgage insurance portfolio. Insurance in Force by Policy Year The following table sets forth our U.S. mortgage insurance in force, or IIF, as of December 31, 2024, by year of policy origination. IIF refers to the unpaid principal balance of mortgage loans that we insure directly.
The following data presents information on our direct mortgage insurance portfolio. Insurance in Force by Policy Year The following table sets forth our mortgage insurance in force, or IIF, as of December 31, 2025, by year of policy origination. IIF refers to the unpaid principal balance of mortgage loans that we insure directly.
Competition The title insurance and settlement services market is also highly competitive. Competitors in the industry include Fidelity National Financial, Inc., First American Financial Corporation, Old Republic International Corporation and Stewart Title Guaranty Company as well as a number of smaller title insurance operations. Numerous agency operations also provide aggressive competition.
Competitors in the title insurance and settlement services industry include Fidelity National Financial, Inc., First American Financial Corporation, Old Republic International Corporation and Stewart Title Guaranty Company as well as a number of smaller title insurance operations. Numerous agency operations also provide aggressive competition.
Consequently, we expect that the default rate and losses on the business we have underwritten to date will be favorable in comparison to the default rate and losses historically experienced by mortgage insurers.
Consequently, we expect that the default rate and losses on the business we have underwritten to date will be favorable in comparison to the default rate and losses historically experienced by mortgage insurers prior to the financial crisis.
We seek to ensure that our employees properly underwrite our loans through quality assurance sampling, loan performance monitoring and training. As of December 31, 2024, approximately 26% of our insurance in force had been originated on a non-delegated basis, compared to 27% as of December 31, 2023.
We seek to ensure that our employees properly underwrite our loans through quality assurance sampling, loan performance monitoring and training. As of December 31, 2025, 12 approximately 24% of our insurance in force had been originated on a non-delegated basis, compared to 26% as of December 31, 2024.
As of December 31, 2024, approximately 74% of our insurance in force had been originated on a delegated basis, compared to 73% as of December 31, 2023. See "Risk Factors—Risks Relating to the Operation of Our Business— Our delegated underwriting program may subject our mortgage insurance business to unanticipated claims ." 13 • Non-Delegated Underwriting.
As of December 31, 2025, approximately 76% of our insurance in force had been originated on a delegated basis, compared to 74% as of December 31, 2024. See "Risk Factors—Risks Relating to the Operation of Our Business— Our delegated underwriting program may subject our mortgage insurance business to unanticipated claims ." • Non-Delegated Underwriting.
As of December 31, 2024, we had a total of 625 employees, including 618 employees based in our Radnor, PA, Winston-Salem, NC, New York, NY, Reston, VA, Pittsburgh, PA, Columbia, MO and Charlotte, NC locations, or remotely throughout the United States, and 7 employees located in Hamilton, Bermuda.
As of December 31, 2025, we had a total of 514 employees, including 507 employees based in our Radnor, PA, Winston-Salem, NC, New York, NY, Reston, VA, Pittsburgh, PA, Columbia, MO and Charlotte, NC locations, or remotely throughout the United States, and 7 employees located in Hamilton, Bermuda.
The weighted average life of our U.S. mortgage insurance portfolio was 33.3 months as of December 31, 2024. It is possible, however, that our level of defaults may increase as our portfolio seasons. We believe that, since the 2007-2008 financial crisis, underwriting practices in the industry have improved substantially and the quality of mortgage loans originated has been high.
The weighted average life of our mortgage insurance portfolio was 38 months as of December 31, 2025. It is possible, however, that our level of defaults may increase as our portfolio seasons. We believe that, since the 2007-2008 financial crisis, underwriting practices in the industry have improved substantially and the quality of mortgage loans originated has been high.
The private mortgage insurance industry, however, has more than doubled its share of the total insured market since 2009, leading to higher private mortgage insurance penetration of the total mortgage origination market. In 2024, private mortgage insurance represented an estimated 41% of the total insured market and covered 17% of the total U.S. mortgage origination volume.
The private mortgage insurance industry, however, has more than doubled its share of the total insured market since 2009, leading to higher private mortgage insurance penetration of the total mortgage origination market. In 2025, private mortgage insurance represented an estimated 40% of the total insured market and covered 15% of the total U.S. mortgage origination volume.
See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Factors Affecting Our Results of Operations—Net Premiums Written and Earned" and "—Key Performance Indicators—Average Net Premium Rate." Premium payments for primary mortgage insurance coverage are typically made by the borrower.
See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Factors Affecting Our Results of Operations—Net Premiums Written and Earned" and "—Key Performance Indicators—Average Net Premium Rate." Premium payments for primary mortgage insurance coverage are typically made by the borrower. Mortgage insurance paid directly by the borrower is referred to as borrower-paid mortgage insurance ("BPMI").
GSE guidelines generally provide that a borrower meeting certain conditions may require the mortgage servicer to cancel mortgage insurance coverage upon the borrower's request when the principal balance of the loan is 80% or less of the property's current value.
The insured may cancel mortgage insurance coverage at any time at their option or upon mortgage repayment. GSE guidelines generally provide that a borrower meeting certain conditions may require the mortgage servicer to cancel mortgage insurance coverage upon the borrower's request when the principal balance of the loan is 80% or less of the property's current value.
According to the Federal Reserve, the GSEs held or guaranteed approximately $6.7 trillion, or 46.9%, of all U.S. residential mortgage debt outstanding as of September 30, 2024.
According to the Federal Reserve, the GSEs held or guaranteed approximately $6.7 trillion, or 45.7%, of all U.S. residential mortgage debt outstanding as of September 30, 2025.
Paul-Bloomington MN-WI 1.7 1.7 Orlando-Kissimmee-Sanford FL 1.7 1.8 All Others 75.7 76.1 Total 100.0 % 100.0 % Defaults and Claims Defaults The default and claim cycle for a mortgage insurance policy begins with receipt of a default notice from the servicer.
Paul-Bloomington MN-WI 1.7 1.7 Tampa, FL 1.7 1.6 All Others 75.4 75.8 Total 100.0 % 100.0 % Mortgage Insurance Defaults and Claims Defaults The default and claim cycle for a mortgage insurance policy begins with receipt of a default notice from the servicer.
From 2005 through 2024, an average of 30.2% of total annual U.S. mortgage origination volume utilized mortgage insurance. Mortgage insurance industry volumes are influenced by total mortgage originations and the mix between purchase and refinancing originations. Historically, mortgage insurance utilization has been meaningfully higher in purchase originations compared to refinancing originations.
From 2006 through 2025, an average of 32.0% of total annual U.S. mortgage origination volume utilized mortgage insurance. Mortgage insurance industry volumes are influenced by total mortgage originations and the mix between purchase and refinancing originations. Historically, mortgage insurance utilization has been meaningfully higher in purchase originations compared to refinancing originations.
ITEM 1. BUSINESS General Overview We serve the housing finance industry by providing private mortgage insurance and reinsurance, and title insurance and settlement services to mortgage lenders, borrowers and investors to support homeownership. We conduct our operations through one primary business segment: Mortgage Insurance.
ITEM 1. BUSINESS OUR COMPANY We serve the housing finance industry by providing private mortgage insurance and reinsurance, and title insurance and settlement services to mortgage lenders, borrowers and investors to support homeownership. We conduct our operations through two primary business segments: Mortgage Insurance and Reinsurance.
The GSE-sponsored mortgage CRT programs, which include the use of front and back-end transactions with reinsurers, have to date included approximately 25 unique (re)insurers that regularly participate in CRT transactions in addition to funded credit investors. These GSE-sponsored mortgage CRT transactions continue to create opportunities for reinsurers and capital markets participants.
The GSE-sponsored mortgage CRT programs, which include the use of front and back-end transactions with reinsurers, have to date included approximately 25 unique (re)insurers that regularly participate in CRT transactions in addition to funded credit investors.
Our top ten customers generated 50.2% of our NIW on a flow basis during the year ended December 31, 2024, compared to 39.9% and 41.6% for the years ended December 31, 2023 and 2022, respectively. For the years ended December 31, 2024, 2023 and 2022, revenue from one customer, United Wholesale Mortgage, exceeded 10% of our consolidated revenue.
Our top ten customers generated 59.3% of our NIW on a flow basis during the year ended December 31, 2025, compared to 50.2% and 39.9% for the years ended December 31, 2024 and 2023, respectively. For the years ended December 31, 2025, 2024 and 2023, revenue from one customer exceeded 10% of our consolidated revenue.
Private mortgage insurers are impacted indirectly by Federal laws and regulations affecting mortgage originators and lenders, purchasers of mortgage loans, such as the GSEs, and governmental insurers such as the FHA and the VA.
Federal Mortgage-Related Laws and Regulations Certain Federal laws directly or indirectly affect private mortgage insurers and title insurers. Private mortgage insurers are impacted indirectly by Federal laws and regulations affecting mortgage originators and lenders, purchasers of mortgage loans, such as the GSEs, and governmental insurers such as the FHA and the VA.
Mortgage insurance paid directly by the borrower is referred to as borrower-paid mortgage insurance, or "BPMI." If the borrower is not required to pay the premium, then the premium is paid by the lender, who may recover the premium through an increase in the note rate on the mortgage or higher origination fees.
If the borrower is not required to pay the premium, then the premium is paid by the lender, who may recover the premium through an increase in the note rate on the mortgage or higher origination fees. Loans for which premiums are paid by the lender are referred to as lender-paid mortgage insurance ("LPMI").
Our annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K and other information filed by us with the SEC are available, without charge, on our Internet web site, http://www.essentgroup.com, as soon as reasonably practicable after they are filed electronically with the SEC.
Our annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K and other information filed by us with the SEC are available, without charge, on our website as soon as reasonably practicable after they are filed electronically with the SEC.
Private mortgage insurance satisfies the GSEs' credit protection requirements for low down payment loans. Essent and other private mortgage insurers provide credit protection to lenders and mortgage investors, supporting a robust secondary mortgage market in the United States by covering a portion of the unpaid principal balance of a mortgage and certain related expenses in the event of a default.
Essent and other private mortgage insurers provide credit protection to lenders and mortgage investors, supporting a robust secondary mortgage market in the United States by covering a portion of the unpaid principal balance of a mortgage and certain related expenses in the event of a default.
Our reinsurance operations include participation in credit risk transfer (CRT) transactions sponsored by Fannie Mae and Freddie Mac, which over the past decade have reduced their exposure to mortgage risk by shifting a portion of that risk to the private sector through capital markets offerings and reinsurance vehicles. Competition The private mortgage insurance industry is highly competitive.
Historically, our reinsurance operations have consisted largely on participation in credit risk transfer ("CRT") transactions sponsored by Fannie Mae and Freddie Mac, which over the past decade have reduced their exposure to mortgage risk by shifting a portion of that risk to the private sector through capital markets offerings and reinsurance vehicles.
Top Ten States December 31, 2024 2023 IIF by State CA 12.5 % 13.0 % FL 11.9 11.1 TX 11.1 10.5 CO 4.1 4.1 AZ 3.8 3.7 GA 3.7 3.4 WA 3.4 3.5 NC 3.0 2.9 NY 2.6 2.5 OH 2.6 2.6 All Others 41.3 42.7 Total 100.0 % 100.0 % 8 December 31, 2024 2023 Gross RIF by State CA 12.4 % 12.8 % FL 12.1 11.4 TX 11.4 10.9 CO 4.0 4.0 AZ 3.9 3.8 GA 3.8 3.4 WA 3.4 3.5 NC 3.0 2.9 OH 2.5 2.6 MI 2.5 2.5 All Others 41.0 42.2 Total 100.0 % 100.0 % Top Ten Metropolitan Statistical Areas December 31, 2024 2023 IIF by Metropolitan Statistical Area Phoenix-Mesa-Chandler AZ 3.2 % 3.1 % Houston-Pasadena-The Woodlands TX 3.0 3.0 Dallas-Plano-Irving, TX 3.0 2.6 Denver-Aurora-Centennial CO 2.6 2.7 Riverside-San Bernardino-Ontario CA 2.5 2.5 Los Angeles-Long Beach-Glendale, CA 2.4 2.5 Atlanta-Sandy Springs-Roswell, GA 2.2 2.0 Orlando-Kissimmee-Sanford FL 1.8 1.7 Minneapolis-St.
The following tables provide detail of the IIF and Gross RIF in our top ten most concentrated states and our top ten most concentrated U.S. metropolitan statistical areas as of December 31, 2025 and 2024. 7 Top Ten States December 31, 2025 2024 IIF by State CA 12.1 % 12.5 % FL 12.0 11.9 TX 11.4 11.1 AZ 4.0 3.8 CO 4.0 4.1 GA 3.9 3.7 WA 3.4 3.4 NC 3.2 3.0 MI 2.6 2.5 NY 2.6 2.6 All Others 40.8 41.4 Total 100.0 % 100.0 % December 31, 2025 2024 Gross RIF by State FL 12.3 % 12.1 % CA 12.1 12.4 TX 11.6 11.4 AZ 4.1 3.9 CO 3.9 4.0 GA 3.9 3.8 WA 3.4 3.4 NC 3.2 3.0 MI 2.6 2.5 UT 2.6 2.5 All Others 40.3 41.0 Total 100.0 % 100.0 % 8 Top Ten Metropolitan Statistical Areas December 31, 2025 2024 IIF by Metropolitan Statistical Area Phoenix-Mesa-Chandler AZ 3.3 % 3.2 % Dallas-Plano-Irving, TX 3.2 3.0 Houston-Pasadena-The Woodlands TX 3.1 3.0 Denver-Aurora-Centennial CO 2.5 2.6 Riverside-San Bernardino-Ontario CA 2.4 2.5 Atlanta-Sandy Springs-Roswell, GA 2.3 2.2 Los Angeles-Long Beach-Glendale, CA 2.2 2.4 Orlando-Kissimmee-Sanford FL 1.8 1.8 Minneapolis-St.
We also compete with investors willing to hold credit risk on their own balance sheets without credit enhancement and, in some markets, with alternative forms of credit enhancement such as structured finance products and derivatives.
We also compete with investors willing to hold credit risk on their own balance sheets without credit enhancement and, in some markets, with alternative forms of credit enhancement such as structured finance products and derivatives. Competition in the reinsurance industry varies significantly on the basis of product and geography.
The mortgage market in 2024 continued to be substantially and negatively impacted by elevated mortgage interest rates precipitated in large part by actions of the Federal Reserve commencing in 2022 that were intended to combat inflation.
The mortgage market in 2025 continued to be substantially and negatively impacted by elevated mortgage interest rates, precipitated in large part by actions of the Federal Reserve commencing in 2022 that were intended to combat inflation, as well as high housing prices and constrained supply.
A title insurance policy indemnifies the named insured and certain successors in interest against certain title defects, liens and encumbrances existing as of the date of the policy and not specifically excepted from its provisions.
The beneficiaries of title insurance policies generally are real estate owners and mortgage lenders. A title insurance policy indemnifies the named insured and certain successors in interest against certain title defects, liens and encumbrances existing as of the date of the policy and not specifically excepted from its provisions.
As of December 31, 2024, 18,439 of our insured loans, representing approximately 2.27% of our aggregate U.S. mortgage insurance policies in force, were in default status, compared to 14,819 loans in default as of December 31, 2023 and 13,433 loans in default as of December 31, 2022.
As of December 31, 2025, 20,210 of our insured loans, representing approximately 2.50% of our aggregate mortgage insurance policies in force, were in default status, compared to 18,439 loans in default as of December 31, 2024 and 14,819 loans in default as of December 31, 2023.
As of December 31, 2024, substantially all of our policies are monthly or single premium policies. In general, we may not terminate mortgage insurance coverage except in the event there is non-payment of premiums or certain material violations of our mortgage insurance policies. The insured may cancel mortgage insurance coverage at any time at their option or upon mortgage repayment.
As of December 31, 2025, substantially all of our policies are monthly or single premium policies. 4 In general, we may not terminate mortgage insurance coverage except in the event there is non-payment of premiums or certain material violations of our mortgage insurance policies.
Before a closing takes place, however, the title insurer or agent typically provides an update to the commitment to discover any adverse matters affecting title and, if any are found, works to eliminate them so that the title insurer or agent issues the title policy subject only to those exceptions to coverage which are acceptable to the title insurer, the owner and the owner’s lender.
Before a closing takes place, however, the title insurer or agent typically provides an update to the commitment to discover any adverse matters affecting title and, if any are found, works to eliminate them so that the title insurer or agent issues the title policy subject only to those exceptions to coverage which are acceptable to the title insurer, the owner and the owner’s lender. 14 Title and Settlement Services Customers, Sales and Marketing We market and distribute our title and settlement services to customers primarily to the residential sector of the real estate industry.
The most recent FHA report to Congress dated November 15, 2024 on the financial status of the FHA Mutual Mortgage Insurance Fund (MMIF) showed the capital reserve ratio of the MMIF Forward Portfolio at 10.9%, above the Congressionally mandated required minimum level of 2%.
The most recent FHA report to Congress on the financial status of the FHA Mutual Mortgage Insurance Fund (MMIF) showed the capital reserve ratio of the MMIF Forward Portfolio at 11.0% as of September 30, 2025, above the Congressionally mandated required minimum level of 2%.
In 2024, total U.S. residential mortgage origination volume was estimated to be $1.78 trillion, comprised of $1.29 trillion of purchase originations and $0.49 trillion of refinancing originations.
In 2025, total U.S. residential mortgage origination volume was estimated to be $2.05 trillion, comprised of $1.36 trillion of purchase originations and $0.69 trillion of refinancing originations.
Industry revenues are also driven by factors affecting the volume of real estate closings, such as the state of the economy, the availability of mortgage funding, and changes in interest rates, which affect demand for new mortgage loans and refinancing transactions.
Industry revenues are also driven by factors affecting the volume of real estate closings, such as the state of the economy, the availability of mortgage funding, and changes in interest rates, which affect demand for new mortgage loans and refinancing transactions. 13 Title Insurance Industry Title insurance plays a key role in the U.S. economy by insuring the secure transfer of real estate and facilitating the growth of homeownership.
Claim losses generally result from errors made in the title search and examination process, from fraud, forgery and hidden defects such as incapacity, missing heirs of the property, closing-related errors, etc. 16 The closing or settlement function, sometimes called an escrow in the western states, is, depending on the local custom in the region, performed by a lawyer, an escrow company or a title insurance company or agent, generally referred to as a “settlement agent.” Once documentation has been prepared and signed, and any required mortgage lender payoff demands are obtained, the transaction closes.
The closing or settlement function, sometimes called an escrow in the western states, is, depending on the local custom in the region, performed by a lawyer, an escrow company or a title insurance company or agent, generally referred to as a “settlement agent.” Once documentation has been prepared and signed, and any required mortgage lender payoff demands are obtained, the transaction closes.
State regulations are principally designed for the protection of the public and our insured policyholders, rather than for the benefit of investors. Although their scope varies, state insurance laws generally grant broad supervisory powers to agencies or to officials to examine insurance companies and to enforce rules or to exercise discretion affecting almost every significant aspect of the insurance business.
Although their scope varies, state insurance laws generally grant broad supervisory powers to agencies or to officials to examine insurance companies and to enforce rules or to exercise discretion affecting almost every significant aspect of the insurance business.
This operating segment was established upon our acquisitions of Agents National Title Insurance Company (renamed Essent Title Insurance, Inc. effective January 1, 2025), a title insurance underwriter, and Boston National Title, a national title agency, on July 1, 2023. Our title insurance operations are included in "Corporate and Other" within our segment-related disclosures.
This operating segment was established upon our acquisitions of Agents National Title Insurance Company (renamed Essent Title Insurance, Inc. effective January 1, 2025), a Pennsylvania-domiciled title insurance underwriter licensed in 45 states and the District of Columbia, and Boston National Title, a national title agency, on July 1, 2023.

… 62 more changes not shown on this page.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

62 edited+20 added−7 removed268 unchanged
Biggest changeBecause we establish loss reserves only upon a loan default rather than based on estimates of our ultimate losses on risk in force, losses may have a disproportionate adverse effect on our earnings in certain periods. In accordance with industry practice and statutory accounting rules applicable to mortgage guaranty insurance companies, we establish loss reserves only for loans in default.
Biggest changeAn increase in the number or size of claims, compared to what we anticipate, could adversely affect our results of operations or financial conditions. Because we establish loss reserves only upon a loan default rather than based on estimates of our ultimate losses on risk in force, losses may have a disproportionate adverse effect on our earnings in certain periods.
Some of the factors that could negatively affect the market price of our common shares include: • actual or anticipated variations in our quarterly operating results; • changes in our earnings estimates or publication of research reports about us or the real estate industry; • changes in market valuations of similar companies; • any indebtedness we incur in the future; 49 • changes in credit markets and interest rates; • changes in government policies, laws and regulations; • changes impacting Fannie Mae, Freddie Mac or Ginnie Mae; • additions to or departures of our key management personnel; • actions by shareholders; • speculation in the press or investment community; • strategic actions by us or our competitors; • changes in our credit ratings; • the availability of third-party reinsurance for the insurance coverage that we write; • general market and economic conditions; • our failure to meet, or the lowering of, our earnings estimates or those of any securities analysts; and • price and volume fluctuations in the stock market generally.
Some of the factors that could negatively affect the market price of our common shares include: • actual or anticipated variations in our quarterly operating results; • changes in our earnings estimates or publication of research reports about us or the real estate industry; • changes in market valuations of similar companies; • any indebtedness we incur in the future; • changes in credit markets and interest rates; • changes in government policies, laws and regulations; • changes impacting Fannie Mae, Freddie Mac or Ginnie Mae; • additions to or departures of our key management personnel; • actions by shareholders; • speculation in the press or investment community; • strategic actions by us or our competitors; • changes in our credit ratings; • the availability of third-party reinsurance for the insurance coverage that we write; • general market and economic conditions; • our failure to meet, or the lowering of, our earnings estimates or those of any securities analysts; and • price and volume fluctuations in the stock market generally.
Alternatives to private mortgage insurance include, but are not limited to: 30 • lenders and other investors holding mortgages in their portfolios and self-insuring; • investors using other risk mitigation techniques in conjunction with reduced levels of private mortgage insurance coverage, or accepting credit risk without credit enhancement; • mortgage sellers retaining at least a 10% participation in a loan or mortgage sellers agreeing to repurchase or replace a loan upon an event of default; and • lenders originating mortgages using "piggyback structures" which avoid private mortgage insurance, such as a first mortgage with an 80% loan-to-value ratio and a second mortgage with a 10%, 15% or 20% loan-to-value ratio (referred to as 80-10-10, 80-15-5 or 80-20 loans, respectively) rather than a first mortgage with a 90%, 95% or 100% loan-to-value ratio that has private mortgage insurance.
Alternatives to private mortgage insurance include, but are not limited to: • lenders and other investors holding mortgages in their portfolios and self-insuring; • investors using other risk mitigation techniques in conjunction with reduced levels of private mortgage insurance coverage, or accepting credit risk without credit enhancement; • mortgage sellers retaining at least a 10% participation in a loan or mortgage sellers agreeing to repurchase or replace a loan upon an event of default; and • lenders originating mortgages using "piggyback structures" which avoid private mortgage insurance, such as a first mortgage with an 80% loan-to-value ratio and a second mortgage with a 10%, 15% or 20% loan-to-value ratio (referred to as 80-10-10, 80-15-5 or 80-20 loans, respectively) rather than a first mortgage with a 90%, 95% or 100% loan-to-value ratio that has private mortgage insurance.
The CFPB's final rule defining what constitutes a QM, which we refer to as the "QM Rule," a loan is deemed to be a QM if, among other factors: • the term of the loan is less than or equal to 30 years; 39 • there are no negative amortization, interest only or balloon features; • the lender properly documents the loan in accordance with the requirements; • the total "points and fees" do not exceed certain thresholds, generally 3% of the total loan amount; and • the total debt-to-income ratio of the borrower does not exceed 43%.
The CFPB's final rule defining what constitutes a QM, which we refer to as the "QM Rule," a loan is deemed to be a QM if, among other factors: • the term of the loan is less than or equal to 30 years; • there are no negative amortization, interest only or balloon features; • the lender properly documents the loan in accordance with the requirements; • the total "points and fees" do not exceed certain thresholds, generally 3% of the total loan amount; and • the total debt-to-income ratio of the borrower does not exceed 43%.
Under this program, a customer could commit us to insure a material number of loans with unacceptable risk profiles before we discover the problem and terminate that customer's delegated underwriting authority or pursue other rights that may be available to us, such as our rights to rescind coverage or deny claims, which rights are limited by the terms of our master policy.
Under this program, a customer could commit us to insure a material number of loans with unacceptable risk profiles before we discover the problem and terminate that customer's delegated underwriting authority or pursue other rights 35 that may be available to us, such as our rights to rescind coverage or deny claims, which rights are limited by the terms of our master policy.
However, the BMA has pursuant to its statement of June 1, 46 2005 given its general permission under the Exchange Control Act 1972 (and related regulations) for the issue and free transfer of our common shares to and among persons who are non-residents of Bermuda for exchange control purposes as long as the shares are listed on an appointed stock exchange, which includes the New York Stock Exchange.
However, the BMA has pursuant to its statement of June 1, 2005 given its general permission under the Exchange Control Act 1972 (and related regulations) for the issue and free transfer of our common shares to and among persons who are non-residents of Bermuda for exchange control purposes as long as the shares are listed on an appointed stock exchange, which includes the New York Stock Exchange.
The growth of these programs and the perception that some of these risk-sharing structures have beneficial features in comparison to private mortgage insurance (e.g. lower costs, reduced counterparty risk due to collateral on hand or more diversified insurance 31 exposures) may create increased competition for mortgage insurance going forward on loans traditionally sold to the GSEs with private mortgage insurance.
The growth of these programs and the perception that some of these risk-sharing structures have beneficial features in comparison to private mortgage insurance (e.g. lower costs, reduced counterparty risk due to collateral on hand or more diversified insurance exposures) may create increased competition for mortgage insurance going forward on loans traditionally sold to the GSEs with private mortgage insurance.
Although our portfolio consists predominantly of investment-grade fixed income securities and complies with applicable regulatory requirements, the success of our investment activity and the 34 value of our portfolio is affected by general economic conditions, which may adversely affect the markets for credit and interest-rate-sensitive securities, including the extent and timing of investor participation in these markets and the level and volatility of interest rates.
Although our portfolio consists predominantly of investment-grade fixed income securities and complies with applicable regulatory requirements, the success of our investment activity and the value of our portfolio is affected by general economic conditions, which may adversely affect the markets for credit and interest-rate-sensitive securities, including the extent and timing of investor participation in these markets and the level and volatility of interest rates.
In December 2017, the Basel Committee published final revisions to the Basel III capital framework (“Basel IV”), which were generally targeted for implementation by each participating country by January 1, 2022 but have been delayed. In July 2023, the Federal banking agencies issued a Notice of Public Rulemaking (NPR) known as the "Basel III Endgame".
In December 2017, the Basel Committee published final revisions to the Basel III capital framework (“Basel IV”), which were generally targeted for implementation by each participating country by January 1, 2022 but have been delayed. 39 In July 2023, the Federal banking agencies issued a Notice of Public Rulemaking (NPR) known as the "Basel III Endgame".
Existing U.S. tax law could have an adverse impact on us or holders of our common shares if future changes to the business causes the Company to exceed certain thresholds. The base erosion anti-abuse tax or “BEAT” that could make certain levels of affiliate reinsurance between United States and non-U.S. members of our group economically unfeasible.
Existing U.S. tax law could have an adverse impact on us or holders of our common shares if future changes to the business causes the Company to exceed certain thresholds. The base erosion anti-abuse tax or “BEAT” could make certain levels of affiliate reinsurance between United States and non-U.S. members of our group economically unfeasible.
Any future changes to these rules, and/or new interpretations by relevant jurisdictions of these occurrences could materially adversely affect our tax position, which could have a material adverse effect on our results of operations and financial condition. U.S. tax-exempt organizations who own our shares may recognize unrelated business taxable income.
Any future changes to these rules, and/or new interpretations by relevant jurisdictions of these occurrences could materially 43 adversely affect our tax position, which could have a material adverse effect on our results of operations and financial condition. U.S. tax-exempt organizations who own our shares may recognize unrelated business taxable income.
Reduced tax rates for qualified dividend income may not be available in the future. We believe that the dividends paid on the common shares should qualify as "qualified dividend income" if, as is intended, our common shares remain listed on a national securities exchange and Essent Group is not a PFIC. Qualified dividend income received by non-corporate U.S.
Reduced tax rates for qualified dividend income may not be available in the future. We believe that the dividends paid on the common shares should qualify as "qualified dividend income" if, as is intended, our common shares remain listed on a national securities exchange and Essent Group Ltd. is not a PFIC. Qualified dividend income received by non-corporate U.S.
In addition, our board of directors may limit a shareholder's voting rights when it deems it appropriate to do so to (i) avoid the existence of any 9.5% U.S. Shareholder; and (ii) avoid certain material adverse legal or regulatory consequences to us, any of our subsidiaries or any direct or indirect shareholder or its affiliates.
In addition, our board of directors may limit a shareholder's voting rights when it deems it appropriate to do so to 45 (i) avoid the existence of any 9.5% U.S. Shareholder; and (ii) avoid certain material adverse legal or regulatory consequences to us, any of our subsidiaries or any direct or indirect shareholder or its affiliates.
Further, the integration of the operations and personnel of acquired businesses may prove more difficult than anticipated, which may result in failure to achieve financial objectives associated with the acquisition or a diversion of management attention. Such events may also have unintended consequences on ratings assigned by the rating agencies to us.
Further, the integration of the operations and personnel of acquired businesses may prove more difficult than anticipated, which may result in failure to achieve financial objectives associated with the acquisition or a diversion of management attention. Such events may also have unintended consequences on 47 ratings assigned by the rating agencies to us.
If in the future Essent Reinsurance Ltd. becomes subject to any insurance laws of the United States or any state thereof or of any other jurisdiction, we cannot assure you that Essent Re would be in compliance with such laws or that complying with such laws would not have a significant and negative effect on our business.
If in the future Essent Reinsurance Ltd. becomes subject to any insurance laws of the 40 United States or any state thereof or of any other jurisdiction, we cannot assure you that Essent Re would be in compliance with such laws or that complying with such laws would not have a significant and negative effect on our business.
U.S. Persons who dispose of our shares may be subject to U.S. Federal income taxation at the rates applicable to dividends on a portion of such disposition. 43 Section 1248 of the Code in conjunction with the RPII rules provides that if a U.S. Person disposes of shares in a non-U.S. corporation that earns insurance income in which U.S.
U.S. Persons who dispose of our shares may be subject to U.S. Federal income taxation at the rates applicable to dividends on a portion of such disposition. Section 1248 of the Code in conjunction with the RPII rules provides that if a U.S. Person disposes of shares in a non-U.S. corporation that earns insurance income in which U.S.
In addition, the default rate and the average reserve per default will be affected by future macroeconomic factors such as housing prices, interest rates and employment as well as the impacts of the COVID-19 pandemic. Incurred losses and claims could be further increased in the future in the event of general economic weakness or decreases in housing values.
In addition, the default rate and the average reserve per default will be affected by future macroeconomic factors such as housing prices, interest rates and employment as well as the impacts of the COVID-19 pandemic. Incurred 31 losses and claims could be further increased in the future in the event of general economic weakness or decreases in housing values.
Increased Federal or state regulatory scrutiny could lead to new legal precedents, new regulations or new practices, or regulatory actions or investigations, which could adversely affect our financial condition and operating results. Risks Relating to Taxes and Our Corporate Structure We and our non-U.S. subsidiaries may become subject to U.S. Federal income and branch profits taxation.
Increased Federal or state regulatory scrutiny could lead to 41 new legal precedents, new regulations or new practices, or regulatory actions or investigations, which could adversely affect our financial condition and operating results. Risks Relating to Taxes and Our Corporate Structure We and our non-U.S. subsidiaries may become subject to U.S. Federal income and branch profits taxation.
We may also seek to reinsure part of our risk in force with third-party reinsurers in order to obtain reinsurance credit and capital 48 relief under insurance laws applicable to us and the regulations of the GSEs. Potential investors, lenders or reinsurers may be unable to provide us with financing or reinsurance that is attractive to us.
We may also seek to reinsure part of our risk in force with third-party reinsurers in order to obtain reinsurance credit and capital relief under insurance laws applicable to us and the regulations of the GSEs. Potential investors, lenders or reinsurers may be unable to provide us with financing or reinsurance that is attractive to us.
If we were a Delaware company, we would need prior approval from our board of directors or a supermajority of our shareholders to enter into a 47 business combination with an interested shareholder for a period of three years from the time the person became an interested shareholder, unless we opted out of the relevant Delaware statute.
If we were a Delaware company, we would need prior approval from our board of directors or a supermajority of our shareholders to enter into a business combination with an interested shareholder for a period of three years from the time the person became an interested shareholder, unless we opted out of the relevant Delaware statute.
These loss events are unpredictable and may require us to increase our loss reserves and could adversely affect our financial performance. 37 We may not be able to collect all amounts due to us from reinsurers and reinsurance coverage may not be available to us in the future at commercially reasonable rates or at all.
These loss events are unpredictable and may require us to increase our loss reserves and could adversely affect our financial performance. We may not be able to collect all amounts due to us from reinsurers and reinsurance coverage may not be available to us in the future at commercially reasonable rates or at all.
Interested Directors: Bermuda law provides that if a director has an interest in a material contract or proposed material contract with us or any of our subsidiaries or has a material interest in any person that is a party to such a contract, the director must disclose the nature of that interest at the first opportunity either at a meeting of directors or in writing to the board.
Interested Directors: Bermuda law provides that if a director has an interest in a material contract or proposed material contract with us or any of our subsidiaries or has a material interest in any person that is a party to such a contract, the director 46 must disclose the nature of that interest at the first opportunity either at a meeting of directors or in writing to the board.
For further information, see Note 11 to our consolidated financial statements entitled "Dividends Restrictions" included elsewhere in this Annual Report. 45 Our ability to pay dividends is dependent on our receipt of dividends and other funds from our subsidiaries. Essent Group Ltd. is a holding company.
For further information, see Note 11 to our consolidated financial statements entitled "Dividends Restrictions" included elsewhere in this Annual Report. Our ability to pay dividends is dependent on our receipt of dividends and other funds from our subsidiaries. Essent Group Ltd. is a holding company.
Our decision to issue such securities will depend on market conditions and other factors beyond our control, and we cannot predict or estimate the amount, timing or nature of our future offerings. ITEM 1B. UNRESOLVED STAFF COMMENTS Not applicable. 50
Our decision to issue such securities will depend on market conditions and other factors beyond our control, and we cannot predict or estimate the amount, timing or nature of our future offerings. ITEM 1B. UNRESOLVED STAFF COMMENTS Not applicable.
If real estate transaction volumes decline, as they have in the past several years in large part due to elevated interest and mortgage rates, we could experience less demand for our title 36 insurance and settlement services.
If real estate transaction volumes decline, as they have in the past several years in large part due to elevated interest and mortgage rates, we could experience less demand for our title insurance and settlement services.
Our delegation of loss mitigation decisions to the GSEs is subject to cancellation but exercise of our cancellation rights may have an adverse impact on our relationship with the GSEs and lenders. 35 Our delegated underwriting program may subject our mortgage insurance business to unanticipated claims.
Our delegation of loss mitigation decisions to the GSEs is subject to cancellation but exercise of our cancellation rights may have an adverse impact on our relationship with the GSEs and lenders. Our delegated underwriting program may subject our mortgage insurance business to unanticipated claims.
If one or more of these analysts ceases coverage of our Company or fails to publish reports on us regularly, demand for our shares could decrease, which could cause our share price or trading volume to decline.
If one or more of these analysts ceases coverage of our 49 Company or fails to publish reports on us regularly, demand for our shares could decrease, which could cause our share price or trading volume to decline.
From time to time, we could experience large losses or an overall worsening of our loss payment experience in regard to the frequency or severity of claims that require us to record additional charges to our claims loss reserve.
From time to time, we could experience large losses or an overall worsening of our loss payment experience in regard to the frequency or 36 severity of claims that require us to record additional charges to our claims loss reserve.
As a result, it is uncertain what role the GSEs, the FHFA, the government and private capital, including private mortgage insurance, will play in the U.S. housing finance system in the future or the impact and timing of any such changes on the market and our business. 38 Changes in the business practices of the GSEs, including actions or decisions to decrease or discontinue the use of mortgage insurance or changes in the GSEs' eligibility requirements for mortgage insurers, could reduce our revenues or adversely affect our profitability and returns.
As a result, it is uncertain what role the GSEs, the FHFA, the government and private capital, including private mortgage insurance, will play in the U.S. housing finance system in the future or the impact and timing of any such changes on the market and our business. 37 Changes in the business practices of the GSEs, including actions or decisions to decrease or discontinue the use of mortgage insurance or changes in the GSEs' eligibility requirements for mortgage insurers, could reduce our revenues or adversely affect our profitability and returns.
Any ineffectiveness in our controls or procedures could have a material adverse effect on our business. We have a risk management framework designed to assess and monitor our risks.
Any ineffectiveness in our controls or procedures could have a material adverse effect on our business. 48 We have a risk management framework designed to assess and monitor our risks.
For the year ended December 31, 2024, one customer represented more than 10% of our consolidated revenues. Maintaining our business relationships and business volumes with our largest lending customers remains critical to the success of our business. Our master policies do not, and by law cannot, require our customers to do business with us.
For the year ended December 31, 2025, one customer represented more than 10% of our consolidated revenues. Maintaining our business relationships and business volumes with our largest lending customers remains critical to the success of our business. Our master policies do not, and by law cannot, require our customers to do business with us.
The estimated claim rates and claim amounts represent our best estimates of what we will actually pay on the loans in default as of the reserve date. Our master policy provides us the right to rescind or deny claims under certain circumstances.
The estimated claim rates and claim amounts represent our best estimates of what we will actually pay on the loans in default as of the reserve date. Our mortgage insurance master policy provides us the right to rescind or deny claims under certain circumstances.
The mortgage insurance industry is, and as a participant in that industry we are, subject to litigation and regulatory risk generally. The U.S. mortgage insurance industry faces litigation risk in the ordinary course of operations, including the risk of class action lawsuits and administrative enforcement by Federal and state agencies.
The mortgage insurance industry is, and as a participant in that industry we are, subject to litigation and regulatory risk generally. The mortgage insurance industry faces litigation risk in the ordinary course of operations, including the risk of class action lawsuits and administrative enforcement by Federal and state agencies.
The Department of the Treasury and the FHFA placed the GSEs into conservatorship in September 2008, putting regulatory and operational control of the GSEs under the auspices of the FHFA. Although we believe the FHFA's conservatorship was intended to be temporary, the GSEs have remained in conservatorship for over 16 years.
The Department of the Treasury and the FHFA placed the GSEs into conservatorship in September 2008, putting regulatory and operational control of the GSEs under the auspices of the FHFA. Although we believe the FHFA's conservatorship was intended to be temporary, the GSEs have remained in conservatorship for over 17 years.
Our reserve calculations do not currently include any estimate for claim rescissions, but we may be required to do so at some later time to ensure that our reserves meet the requirements of accounting principles generally accepted in the United States. The establishment of loss reserves is subject to inherent uncertainty and requires judgment by management.
Our reserve calculations do not currently include any estimate for claim rescissions, but we may be required to do so at some later time to ensure that our reserves meet the requirements of accounting principles generally accepted in the United States. The establishment of loss reserves for mortgage-related risk is subject to inherent uncertainty and requires judgment by management.
Factors that could cause the FHA or other government-supported mortgage insurance programs to maintain or increase their share of the mortgage insurance market include: • a reduction in the premiums charged for government mortgage insurance or a loosening of underwriting guidelines; • past and potential future capital constraints in the private mortgage insurance industry; • increases in premium rates or tightening of underwriting guidelines by private mortgage insurers based on past loan performance or other risk concerns; • increased levels of loss mitigation activity by private mortgage insurers on older vintage portfolios when compared to the more limited loss mitigation activities of government insurance programs; • imposition of additional loan level delivery fees by the GSEs on loans that require mortgage insurance; • increases in GSE guaranty fees and the difference in the spread between Fannie Mae mortgage-backed securities and Ginnie Mae mortgage-backed securities; • the perceived operational ease of using government insurance compared to the products of private mortgage insurers; • differences in the enforcement of program requirements by the FHA relative to the enforcement of policy terms by private entities; • the implementation of new or the amendment of current regulations under the Dodd-Frank Act (particularly with respect to the Qualified Mortgage and Qualified Residential Mortgage rules) and the Basel III Endgame, which may be more favorable to the FHA than to private mortgage insurers (see "Risks Related to Regulation and Litigation —Our business prospects and operating results could be adversely impacted if, and to the extent that, the Consumer Financial Protection Bureau's ("CFPB") rule defining a qualified mortgage ("QM") reduces the size of the origination market or creates incentives to use government mortgage insurance programs ", "Risks Related to Regulation and Litigation— The amount of insurance we write could be adversely affected by the implementation of the Dodd-Frank Act's risk retention requirements and the definition of Qualified Residential Mortgage ("QRM") " and "Risks Related to Regulation and Litigation— The implementation of the Basel rules discourage the use of mortgage insurance "); and • increases in FHA loan limits above GSE loan limits.
Factors that could cause the FHA or other government-supported mortgage insurance programs to maintain or increase their share of the mortgage insurance market include: • a reduction in the premiums charged for government mortgage insurance or a loosening of underwriting guidelines; • past and potential future capital constraints in the private mortgage insurance industry; • increases in premium rates or tightening of underwriting guidelines by private mortgage insurers based on past loan performance or other risk concerns; • increased levels of loss mitigation activity by private mortgage insurers on older vintage portfolios when compared to the more limited loss mitigation activities of government insurance programs; • imposition of additional loan level delivery fees by the GSEs on loans that require mortgage insurance; • increases in GSE guaranty fees and the difference in the spread between Fannie Mae mortgage-backed securities and Ginnie Mae mortgage-backed securities; • the perceived operational ease of using government insurance compared to the products of private mortgage insurers; • differences in the enforcement of program requirements by the FHA relative to the enforcement of policy terms by private entities; • the implementation of new or the amendment of current regulations under the Dodd-Frank Act (particularly with respect to the Qualified Mortgage and Qualified Residential Mortgage rules) and the Basel III Endgame, which may be more favorable to the FHA than to private mortgage insurers (see "Risks Related to Regulation and Litigation —Our business prospects and operating results could be adversely impacted if, and to the extent that, the Consumer Financial Protection Bureau's ("CFPB") rule defining a qualified mortgage ("QM") reduces the size of the origination market or creates incentives to use government mortgage insurance programs ", "Risks Related to Regulation and Litigation— The amount of insurance we write could be adversely affected by the implementation of the Dodd-Frank Act's risk retention requirements and the definition of Qualified Residential Mortgage ("QRM") " and "Risks Related to Regulation and Litigation— The implementation of the Basel rules discourage the use of mortgage insurance "); and • increases in FHA loan limits above GSE loan limits. 30 Further, at the direction of the FHFA, the GSEs may continue to consider new, and to pursue existing, credit risk sharing programs.
As a result of the significant decrease in our persistency rate largely as a result of a high level of refinancings in 2020 and 2021 triggered by historically low interest rates precipitated by the economic impacts of the COVID-19 pandemic, approximately 91% of our aggregate insurance in force as of December 31, 2024 corresponds to policies we have written since January 1, 2020.
As a result of the significant decrease in our persistency rate largely as a result of a high level of refinancings in 2020 and 2021 triggered by historically low interest rates precipitated by the economic impacts of the COVID-19 pandemic, approximately 93% of our aggregate insurance in force as of December 31, 2025 corresponds to policies we have written since January 1, 2020.
In addition, the Inflation Reduction Act of 2022 (“IRA”) introduced, among other tax provisions, the Corporate Alternative Minimum Tax (“CAMT”) and a federal excise tax (“FET”) of 1% on certain stock repurchases. Companies are not subject to the CAMT if it does not meet a certain net income threshold on a trailing 3-year average calculation.
In addition, the Inflation Reduction Act of 2022 (“IRA”) introduced, among other tax provisions, the Corporate Alternative Minimum Tax (“CAMT”) and a federal excise tax (“FET”) of 1% on certain stock repurchases. Companies are not subject to the CAMT if they do not meet a certain net income threshold on a trailing 3-year average calculation.
As a result, the length of time mortgage insurance policies remains in force, which is also generally referred to as persistency, is a significant determinant of our revenues. A lower level of persistency could reduce our future revenues. Our annual persistency rate was 85.7%, 86.9% and 82.1% at December 31, 2024, 2023 and 2022, respectively.
As a result, the length of time mortgage insurance policies remains in force, which is also generally referred to as persistency, is a significant determinant of our revenues. A lower level of persistency could reduce our future revenues. Our annual persistency rate was 85.7%, 85.7% and 86.9% at December 31, 2025, 2024 and 2023, respectively.
However, our foreign subsidiaries are or could become subject to U.S. excise taxes on (re)insurance premium, and on stock repurchases, as well as U.S. withholding taxes on certain U.S. source investment income, and dividends 42 paid from U.S. subsidiaries from U.S. earnings and profits.
However, our foreign subsidiaries are or could become subject to U.S. excise taxes on (re)insurance premium as well as U.S. withholding taxes on certain U.S. source investment income, and dividends paid from U.S. subsidiaries from U.S. earnings and profits.
Future revisions to these eligibility requirements could negatively impact our ability to write mortgage insurance at our current levels, generate the returns we anticipate from our business or otherwise participate in the private mortgage insurance market at all. See "Business—Regulation—Direct U.S. Regulation—GSE Qualified Mortgage Insurer Requirements" above.
Future revisions to these eligibility requirements could negatively impact our ability to write mortgage insurance at our current levels, generate the returns we anticipate from our business or otherwise participate in the private mortgage insurance market at all. See "Business—Regulation—Direct U.S.
Further, recently proposed regulations were published which could, if finalized in their current form, substantially expand the definition of RPII to include insurance income of Essent Re related to affiliate reinsurance transactions. These regulations would apply to taxable years beginning after the date the regulations are finalized.
Further, proposed regulations could, if finalized in their current form, substantially expand the definition of RPII to include insurance income of Essent Re related to affiliate reinsurance transactions. These regulations 42 would apply to taxable years beginning after the date the regulations are finalized.
Our business prospects and operating results could be adversely impacted if, and to the extent that, the Consumer Financial Protection Bureau's ("CFPB") rule defining a qualified mortgage ("QM") reduces the size of the origination market or creates incentives to use government mortgage insurance programs.
Regulation—GSE Qualified Mortgage Insurer Requirements" above. 38 Our business prospects and operating results could be adversely impacted if, and to the extent that, the Consumer Financial Protection Bureau's ("CFPB") rule defining a qualified mortgage ("QM") reduces the size of the origination market or creates incentives to use government mortgage insurance programs.
Because loss reserve estimates are subject to uncertainties and are based on assumptions that may be volatile, ultimate losses may be substantially different than our loss reserves. We establish reserves using estimated claim rates and claim amounts in estimating the ultimate loss on delinquent loans.
Because loss reserve estimates are subject to uncertainties and are based on assumptions that may be volatile, ultimate losses may be substantially different than our loss reserves. We establish reserves for our mortgage-related insurance and reinsurance businesses using estimated claim rates and claim amounts in estimating the ultimate loss on delinquent loans.
Our revenues, profitability and returns would decline if we lose a significant customer. Our U.S. mortgage insurance business depends on our relationships with our largest lending customers. Our top ten customers generated 50.2% of our NIW during year ended December 31, 2024, compared to 39.9% and 41.6% for the years ended December 31, 2023 and 2022, respectively.
Our revenues, profitability and returns would decline if we lose a significant customer. Our mortgage insurance business depends on our relationships with our largest lending customers. Our top ten customers generated 59.3% of our NIW during year ended December 31, 2025, compared to 50.2% and 39.9% for the years ended December 31, 2024 and 2023, respectively.
Shareholder or if there is RPII, and certain exceptions do not apply, and the tax-exempt organization owns any of our shares. Although we do not believe that any U.S. Persons should be allocated such insurance income, we cannot be certain that this will be the case.
Shareholder or if there is RPII, and certain exceptions do not apply, and the tax-exempt organization owns any of our shares. Although we do not believe that any U.S. Persons should be allocated such insurance income, we cannot be certain that this will be the case. U.S. tax-exempt investors are advised to consult their own tax advisors.
The factors affecting the persistency of our mortgage insurance portfolio include: • the level of current mortgage interest rates compared to the mortgage interest rates on the insurance in force, which affects the incentives of borrowers we have insured to refinance; • the amount of equity in a home, as homeowners with more equity in their homes can generally more readily move to a new residence or refinance their existing mortgage; • the rate at which homeowners sell their existing homes and move to new locations, generally referred to as housing turnover, with more rapid economic growth and stronger job markets tending to increase housing turnover; • the mortgage insurance cancellation policies of mortgage investors along with the current values of the homes underlying the mortgages in the insurance in force; and • the cancellation of borrower-paid mortgage insurance mandated by law based on the amortization schedule of the loan, which generally occurs sooner the lower the note rate of the insured loan. 33 If interest rates rise, persistency is likely to increase, which may extend the average life of our insured portfolio and result in higher levels of future claims as more loans remain outstanding.
The factors affecting the persistency of our mortgage insurance portfolio include: • the level of current mortgage interest rates compared to the mortgage interest rates on the insurance in force, which affects the incentives of borrowers we have insured to refinance; • the amount of equity in a home, as homeowners with more equity in their homes can generally more readily move to a new residence or refinance their existing mortgage; • the rate at which homeowners sell their existing homes and move to new locations, generally referred to as housing turnover, with more rapid economic growth and stronger job markets tending to increase housing turnover; • the mortgage insurance cancellation policies of mortgage investors along with the current values of the homes underlying the mortgages in the insurance in force; and 32 • the cancellation of borrower-paid mortgage insurance mandated by law based on the amortization schedule of the loan, which generally occurs sooner the lower the note rate of the insured loan.
Moreover, under Pennsylvania law, dividends and other distributions may only be paid out of unassigned surplus unless approved by the Commissioner. Our primary U.S. operating subsidiary, Essent Guaranty, Inc., had unassigned surplus of approximately $396.6 million as of December 31, 2024, and paid to its parent, Essent US Holdings, Inc., dividends totaling $165.5 million in 2024.
Moreover, under Pennsylvania law, dividends and other distributions may only be paid out of unassigned surplus unless approved by the Commissioner. Our primary U.S. operating subsidiary, Essent Guaranty, Inc., had unassigned surplus of approximately $245.8 million as of December 31, 2025, and paid to its parent, Essent US Holdings, Inc., dividends totaling $495.0 million in 2025.
U.S. tax-exempt investors are advised to consult their own tax advisors. 44 There is the potential foreign bank account reporting and reporting of "Specified Foreign Financial Assets." U.S. Persons holding our common shares should consider their possible obligation to file a FinCEN Form 114, Report of Foreign Bank and Financial Accounts with respect to their shares.
There is the potential foreign bank account reporting and reporting of "Specified Foreign Financial Assets." U.S. Persons holding our common shares should consider their possible obligation to file a FinCEN Form 114, Report of Foreign Bank and Financial Accounts with respect to their shares.
Changes to our estimates could result in a material impact to our results of operations, even in a stable economic environment, and there can be no assurance that actual claims paid by us will not be substantially different than our loss reserves. A downgrade in our financial strength ratings may adversely affect the amount of business that we write.
Changes to our estimates could result in a material impact to our results of operations, even in a stable economic environment, and there can be no assurance that actual claims paid by us will not be substantially different than our loss reserves. Our results could be adversely affected by catastrophic events.
Sales of substantial amounts of our common shares in the public market, or the perception that these sales could occur, could cause the market price of our common shares to decline. As of February 14, 2025, we had 103,835,368 outstanding common shares.
Sales of substantial amounts of our common shares in the public market, or the perception that these sales could occur, could cause the market price of our common shares to decline. As of February 13, 2026, we had 94,542,845 outstanding common shares.
The timing, scope, and content of any such proposed rulemaking and any potential impact it may have, as well as whether any new guidelines will be proposed or finalized in the United States in response to Basel IV remains uncertain due to changes resulting from the Trump Administration and the Federal Reserve. 40 Our operating insurance and reinsurance subsidiaries are subject to regulation in various jurisdictions, and material changes in the regulation of their operations could adversely affect us.
The timing, scope, and content of any such proposed rulemaking and any potential impact it may have, as well as whether any new guidelines will be proposed or finalized in the United States in response to Basel IV remains uncertain due to changes resulting from the Trump Administration and the Federal Reserve.
Reserves are established for reported insurance losses and loss adjustment expenses based on when notices of default on insured mortgage loans are received. Reserves are also established for estimated losses incurred in connection with defaults that have not yet been reported. We establish reserves using estimated claim rates and claim amounts in estimating the ultimate loss.
Reserves are also established for estimated losses incurred in connection with defaults that have not yet been reported. We establish reserves using estimated claim rates and claim amounts in estimating the ultimate loss.
We may be forced to change our investments or investment policies depending upon regulatory, economic and market conditions, and our existing or anticipated financial condition and operating requirements, including the tax position, of our business. Our investment objectives may not be achieved.
Fluctuations in the fair value of these entities may increase the volatility of our reported results of operations. 33 We may be forced to change our investments or investment policies depending upon regulatory, economic and market conditions, and our existing or anticipated financial condition and operating requirements, including the tax position, of our business.
We depend on our investments as a source of revenue, and a prolonged period of low investment yields would have an adverse impact on our revenues and could adversely affect our operating results.
We depend on our investments as a source of revenue, and a prolonged period of low investment yields would have an adverse impact on our revenues and could adversely affect our operating results. As part of our overall investment strategy, we also allocate a percentage of our portfolio to limited partnership investments and traditional venture capital and private equity investments.
In addition, our inability to comply with insurance statutes and regulations could significantly and adversely affect our financial condition and results of operations by limiting our ability to conduct business as well as subject us to penalties and fines. 41 Because Essent Re is a Bermuda company, it is subject to changes in Bermuda law and regulation that may have an adverse impact on our operations, including through the imposition of tax liability or increased regulatory supervision.
Because Essent Re is a Bermuda company, it is subject to changes in Bermuda law and regulation that may have an adverse impact on our operations, including through the imposition of tax liability or increased regulatory supervision.
Our insurance and reinsurance subsidiaries are subject to government regulation in each of the jurisdictions in which they are licensed or authorized to do business. Governmental agencies have broad administrative power to regulate many aspects of the insurance business, which may include trade and claim practices, accounting methods, premium rates, marketing practices, advertising, policy forms, and capital adequacy.
Governmental agencies have broad administrative power to regulate many aspects of the insurance business, which may include trade and claim practices, accounting methods, premium rates, marketing practices, advertising, policy forms, and capital adequacy. These agencies are concerned primarily with the protection of policyholders rather than shareholders.
Government-supported mortgage insurance programs include, but are not limited to federal mortgage insurance programs, including those offered by the FHA and VA, and state-supported mortgage insurance funds, including, but not limited to, those funds supported by the states of California and New York.
We compete for business with alternatives to private mortgage insurance, consisting primarily of government-supported mortgage insurance programs as well as home purchase or refinancing alternatives that do not use any form of mortgage insurance. 29 Government-supported mortgage insurance programs include, but are not limited to federal mortgage insurance programs, including those offered by the FHA and VA, and state-supported mortgage insurance funds, including, but not limited to, those funds supported by the states of California and New York.
Our holding company structure and certain regulatory and other constraints, including adverse business performance, could negatively impact our liquidity and potentially require us to raise more capital. Essent Group Ltd. serves as the holding company for our insurance and other subsidiaries and does not have any significant operations of its own.
Essent Group Ltd. serves as the holding company for our insurance and other subsidiaries and does not have any significant operations of its own.
The amount of insurance we may be able to write could be adversely affected if lenders and investors select alternatives to private mortgage insurance. We compete for business with alternatives to private mortgage insurance, consisting primarily of government-supported mortgage insurance programs as well as home purchase or refinancing alternatives that do not use any form of mortgage insurance.
The amount of insurance we may be able to write could be adversely affected if lenders and investors select alternatives to private mortgage insurance.
Further, at the direction of the FHFA, the GSEs may continue to consider new, and to pursue existing, credit risk sharing programs. These programs have included the use of structured finance vehicles and off-shore reinsurance.
These programs have included the use of structured finance vehicles and off-shore reinsurance.
Based on such calculations, the Company is not currently subject to the CAMT. Management will continue to monitor the applicability of CAMT. Generally, the Excise Tax on certain stock repurchases applies to U.S.-domiciled companies.
Based on such calculations, the Company is not currently subject to the CAMT. Management will continue to monitor the applicability of CAMT. Final Treasury Regulations were issued on November 24, 2025 regarding the stock repurchase FET.
Removed
Although the claims experience on NIW by us since we began to write coverage in 2010 has been relatively favorable to date, we expect incurred losses and claims to increase as a greater amount of this book of insurance reaches its anticipated period of highest claim frequency.
Added
In accordance with industry practice and statutory accounting rules applicable to mortgage guaranty insurance companies, we establish loss reserves only for loans in default. Reserves are established for reported insurance losses and loss adjustment expenses based on when notices of default on insured mortgage loans are received.
Removed
An increase in the number or size of claims, compared to what we anticipate, could 32 adversely affect our results of operations or financial conditions.
Added
If interest rates rise, persistency is likely to increase, which may extend the average life of our insured portfolio and result in higher levels of future claims as more loans remain outstanding.
Removed
As part of our overall investment strategy, we also allocate a relatively small percentage of our portfolio to limited partnership investments in real estate, consumer credit and traditional venture capital and private equity investments. Fluctuations in the fair value of these entities may increase the volatility of our reported results of operations.
Added
Through our reinsurance arrangements with participants in the Lloyd’s insurance markets we are exposed to, and to the extent that we enter into new non-mortgage reinsurance arrangements in the future we may be further exposed to, unpredictable catastrophic events, including, but not limited to, weather-related and other natural catastrophes, as well as political unrest, geopolitical uncertainty and instability, acts of terrorism and wars, pandemics and communicable diseases, and cyber-risks.
Removed
These agencies are concerned primarily with the protection of policyholders rather than shareholders.
Added
We cannot predict or eliminate our exposure to these loss events, and as a result, our operating results may be significantly affected by the frequency and severity of such events. Furthermore, the frequency and/or severity of catastrophic events may be impacted in the future by the continued effects of climate change.
Removed
Proposed regulations issued in 2024, which may apply retroactively if finalized in their present form, provide in part that a foreign-parented MNC’s stock repurchase is subject to the FET if it is funded by its U.S affiliate with a principal purpose of avoiding the FET.
Added
Climate change and resulting changes in global temperatures, weather patterns, and sea levels may both increase the frequency and severity of natural catastrophes and the resulting losses in the future and impact our risk modeling assumptions. We cannot predict the impact that changing climate conditions, if any, may have on our results of operations or our financial condition.
Removed
The Proposed Regulations provide that the determination of whether a funding by a U.S. affiliate has a principal purpose of avoiding the FET is based on all the facts and circumstances. Final regulations were also issued in 2024 which provide several procedural rules related to the payment of the tax and related compliance obligations.
Added
Additionally, we cannot predict how legal, regulatory and/or social responses to concerns around global climate change and the resulting impact on various sectors of the economy may impact our business.
Removed
The Company may become subject to the FET on stock repurchases in 2025 and future years based on facts and circumstances regarding sources and uses of Essent Group Ltd capital under the Proposed Regulations.
Added
The occurrence, or nonoccurrence, of catastrophic events, the frequency and severity of which are inherently unpredictable, may cause significant volatility in our quarterly and annual financial results and may materially adversely affect our financial condition, results of operations and cash flows.
Added
Underwriting risks and reserving for losses in our non-mortgage reinsurance business are based on actuarially determined methods and assumptions, which are subject to inherent uncertainties. The success of our non-mortgage reinsurance businesses is dependent upon our ability to assess accurately the risks associated with the businesses that we reinsure.
Added
We establish reserves for losses and loss adjustment expenses in our non-mortgage reinsurance business which represent estimates based on actuarial and statistical projections, at a given point in time, of our expectations of the ultimate future settlement and administration costs of losses incurred.
Added
We utilize actuarial models as well as available historical insurance industry loss ratio experience and loss development patterns to assist in the establishment of loss reserves.
Added
Most or all of these factors are not directly quantifiable, particularly on a prospective basis, and the effects of these and unforeseen factors could negatively impact our ability to accurately assess the risks of the reinsurance policies that we write. Changes in the assumptions used could lead to an increase in our estimate of ultimate losses in the future.

… 9 more changes not shown on this page.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

4 edited+0 added−1 removed12 unchanged
Biggest changeAlthough we have implemented what we believe to be an appropriate information security program to protect against, detect, mitigate, and respond to cybersecurity risks, there can be no assurance that such risks, including incidents, may be prevented or timely detected.
Biggest changeIn addition, we maintain an internal information security committee comprised of cross-departmental company executives and IT leaders to ensure that we maintain strong governance mechanisms and to ensure compliance with our security policies and procedures. 50 Although we have implemented what we believe to be an appropriate information security program to protect against, detect, mitigate, and respond to cybersecurity risks, there can be no assurance that such risks, including incidents, may be prevented or timely detected.
Our CIO has over 25 years of experience serving Fortune 500 companies in the area of information technology, including over 20 years in mortgage and financial services, with roles ranging from overseeing application development and delivery to enhance risk management capability and improve operational efficiency to 51 information technology strategy, architecture, delivery, and management.
Our CIO has over 25 years of experience serving Fortune 500 companies in the area of information technology, including over 20 years in mortgage and financial services, with roles ranging from overseeing application development and delivery to enhance risk management capability and improve operational efficiency to information technology strategy, architecture, delivery, and management.
See “Risk Factors—Risks Relating to the Operation of Our Business— The security of our information technology systems may be compromised and confidential information, including non-public personal information that we maintain, could be improperly disclosed ." Cybersecurity Governance Our board of directors, led by the board’s technology, innovation and operations committee, actively oversees our information security program, with our management, inlcluding the CIO and CISO, providing the board and that committee with regular updates (including at each of the three meetings held by that committee in 2024) and reporting on our IT strategy, including information security strategies and initiatives, event preparedness and incremental improvement efforts.
See “Risk Factors—Risks Relating to the Operation of Our Business— The security of our information technology systems may be compromised and confidential information, including non-public personal information that we maintain, could be improperly disclosed ." Cybersecurity Governance Our board of directors, led by the board’s technology, innovation and operations committee, actively oversees our information security program, with our management, including the CIO and CISO, providing the board and that committee with regular updates (including at each of the three meetings held by that committee in 2025) and reporting on our IT strategy, including information security strategies and initiatives, event preparedness and incremental improvement efforts.
During the year ended December 31, 2024, we did not experience any material cybersecurity incidents, including cybersecurity incidents that materially affected or are reasonably likely to materially affect the Company, our business strategy, results of operations, or financial condition.
During the year ended December 31, 2025, we did not experience any material cybersecurity incidents, including cybersecurity incidents that materially affected or are reasonably likely to materially affect the Company, our business strategy, results of operations, or financial condition.
Removed
In addition, we maintain an internal information security committee comprised of cross-departmental company executives and IT leaders to ensure that we maintain strong governance mechanisms and to ensure compliance with our security policies and procedures.

Item 2. Properties

Properties — owned and leased real estate

2 edited+0 added−0 removed0 unchanged
Biggest changeITEM 2. PROPERTIES We lease office facilities in Radnor, Pennsylvania for the headquarters of our U.S. mortgage insurance business and title and settlement services operations, with additional offices in North Carolina, Pennsylvania, Missouri, New York and Virginia for our U.S.-based operations, and we lease office facilities in Bermuda for our holding company headquarters and reinsurance company.
Biggest changeITEM 2. PROPERTIES We lease office facilities in Radnor, Pennsylvania for the headquarters of our mortgage insurance business and title and settlement services operations, with additional offices in North Carolina, Pennsylvania, Missouri, New York and Virginia for our U.S.-based operations, and we lease office facilities in Bermuda for our holding company headquarters and reinsurance company.
We believe our current facilities are adequate for our current needs and that suitable additional space will be available as and when needed. ITEM 3. LEGAL PROCEEDINGS We are not currently subject to any material legal proceedings. ITEM 4. MINE SAFETY DISCLOSURES Not applicable. 52 PART II
We believe our current facilities are adequate for our current needs and that suitable additional space will be available as and when needed. ITEM 3. LEGAL PROCEEDINGS We are not currently subject to any material legal proceedings. ITEM 4. MINE SAFETY DISCLOSURES Not applicable. 51 PART II

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

6 edited+1 added−0 removed4 unchanged
Biggest changePeriod ($ in thousands, except per share amounts) Total Number of Shares Purchased Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (1) October 1 - October 31, 2024 4,579 $ 63.82 — November 1 - November 30, 2024 279,318 $ 55.92 279,318 December 1 - December 31, 2024 918,874 $ 54.89 917,974 Total 1,202,771 1,197,292 $ 147,279 _______________________________________________________________________________ (1) As of December 31, 2024, the Company was authorized to purchase up to $250 million of its common shares, announced in October 2023, of which $102.7 million had been utilized.
Biggest changePeriod ($ in thousands, except per share amounts) Total Number of Shares Purchased Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (1) October 1 - October 31, 2025 840,295 $ 60.29 837,259 November 1 - November 30, 2025 623,208 $ 61.51 623,208 December 1 - December 31, 2025 585,493 $ 61.88 585,493 Total 2,048,996 2,045,960 $ 571,647 _______________________________________________________________________________ (1) During the three months ended December 31, 2025, the Company repurchased 2,045,960 common shares at a total cost of $125.0 million.
For information on Essent Group's ability to pay dividends, see Item 7 "Management's Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources." Performance Graph The following performance graph compares, for the period from January 1, 2020 through December 31, 2024, the cumulative total shareholder return of an investment in (i) our common shares, (ii) the S&P 500 and (iii) a composite peer group selected by us consisting of Arch Capital Group Ltd., Enact Holdings, Inc.
For information on Essent Group's ability to pay dividends, see Item 7 "Management's Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources." Performance Graph The following performance graph compares, for the period from January 1, 2021 through December 31, 2025, the cumulative total shareholder return of an investment in (i) our common shares, (ii) the S&P 500 and (iii) a composite peer group selected by us consisting of Arch Capital Group Ltd., Enact Holdings, Inc.
ITEM 5. MARKET FOR THE COMPANY'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Our common shares trade on the New York Stock Exchange (NYSE) under the symbol "ESNT." As of February 14, 2025, we had approximately 9 holders of record of our common shares. We have paid a quarterly dividend since September 2019.
ITEM 5. MARKET FOR THE COMPANY'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Our common shares trade on the New York Stock Exchange (NYSE) under the symbol "ESNT." As of February 13, 2026, we had approximately 9 holders of record of our common shares. We have paid a quarterly dividend since September 2019.
A dividend of $0.28 per share for each of the first, second, third and fourth quarters of 2024 was declared and paid, and a dividend of $0.31 per share had been declared by our board of directors with a record date of March 14, 2025 and a payment date of March 24, 2025.
A dividend of $0.31 per share for each of the first, second, third and fourth quarters of 2025 was declared and paid, and a dividend of $0.35 per share had been declared by our board of directors with a record date of March 13, 2026 and a payment date of March 23, 2026.
Such returns are based on historical results and are not intended to suggest future performance. 12/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2024 S&P 500 $116.26 $147.52 $118.84 $147.64 $182.05 Peer Index $84.99 $113.20 $162.19 $199.04 $251.24 ESNT $85.81 $93.15 $82.70 $116.74 $124.72 The performance graph and related information shall not be deemed "soliciting material" or to be "filed" with the Securities and Exchange Commission for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or the Exchange Act, or otherwise subject to the liabilities under that Section, and shall not be deemed to be incorporated by reference into any future filing under the Securities Act of 1933, as amended, or the Exchange Act, except to the extent that we specifically incorporate it by reference into such filing. 53 Issuer Purchase of Equity Securities The table below sets forth information regarding repurchases of our common shares during the three months ended December 31, 2024.
Such returns are based on historical results and are not intended to suggest future performance. 12/31/2021 12/31/2022 12/31/2023 12/31/2024 12/31/2025 S&P 500 $126.89 $102.22 $126.99 $156.59 $182.25 Peer Index $133.45 $190.84 $235.38 $297.26 $324.57 ESNT $109.17 $97.63 $138.77 $149.12 $185.84 The performance graph and related information shall not be deemed "soliciting material" or to be "filed" with the Securities and Exchange Commission for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or the Exchange Act, or otherwise subject to the liabilities under that Section, and shall not be deemed to be incorporated by reference into any future filing under the Securities Act of 1933, as amended, or the Exchange Act, except to the extent that we specifically incorporate it by reference into such filing. 52 Issuer Purchase of Equity Securities The table below sets forth information regarding repurchases of our common shares during the three months ended December 31, 2025.
The remaining $147.3 million in the table represents the amount available to repurchase shares under the share repurchase plan as of December 31, 2024. In January 2025, we repurchased 918,464 shares for $51.8 million. In February 2025, our Board approved an additional $500 million share repurchase authorization that runs through year-end 2026. ITEM 6. [RESERVED] 54
In February 2025, the Board of Directors approved a $500 million share repurchase authorization that runs through year-end 2026, of which approximately $72 million remained available to be repurchased as of December 31, 2025. In November 2025, our Board approved an additional $500 million share repurchase authorization that runs through year-end 2027.
Added
The remaining $572 million in the table represents the amount available to repurchase shares under the February 2025 and November 2025 share repurchase authorizations as of December 31, 2025. In January 2026, we repurchased 713,402 shares for $44.4 million, leaving approximately $527.2 million remaining for repurchases as of January 31, 2026. ITEM 6. [RESERVED] 53

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

132 edited+33 added−42 removed106 unchanged
Biggest changeThe following table presents a rollforward of insured loans in default for our U.S. mortgage insurance portfolio for the periods indicated: Year Ended December 31, 2024 2023 2022 Beginning default inventory 14,819 13,433 16,693 Plus: new defaults 37,499 30,550 25,636 Less: cures (33,134) (28,655) (28,873) Less: claims paid (671) (467) (261) Less: rescissions and denials, net (74) (42) (32) Ending default inventory 18,439 14,819 13,433 The following table includes additional information about our loans in default as of the dates indicated for our U.S. mortgage insurance portfolio: As of December 31, 2024 2023 Case reserves (in thousands) (1) $ 285,944 $ 226,121 Total reserves (in thousands) (1) $ 310,156 $ 245,402 Ending default inventory 18,439 14,819 Average case reserve per default (in thousands) $ 15.5 $ 15.3 Average total reserve per default (in thousands) $ 16.8 $ 16.6 Default rate 2.27 % 1.80 % Claims received included in ending default inventory 164 126 _______________________________________________________________________________ (1) The U.S. mortgage insurance portfolio reserves exclude reserves on GSE and other risk share risk in force at Essent Re of $51 thousand and $29 thousand as of December 31, 2024 and 2023, respectively. 66 The following table provides a reconciliation of the beginning and ending U.S. mortgage insurance reserve balances for losses and LAE: Year Ended December 31, (In thousands) 2024 2023 2022 Reserve for losses and LAE at beginning of year $ 245,402 $ 216,390 $ 406,096 Less: Reinsurance recoverables 24,004 14,618 25,940 Net reserve for losses and LAE at beginning of year 221,398 201,772 380,156 Add provision for losses and LAE occurring in: Current year 171,907 138,601 99,351 Prior years (96,751) (108,437) (272,785) Incurred losses and LAE during the current year 75,156 30,164 (173,434) Deduct payments for losses and LAE occurring in: Current year 2,687 517 224 Prior years 20,366 10,021 4,726 Loss and LAE payments during the current year 23,053 10,538 4,950 Net reserve for losses and LAE at end of period 273,501 221,398 201,772 Plus: Reinsurance recoverables 36,655 24,004 14,618 Reserve for losses and LAE at end of period $ 310,156 $ 245,402 $ 216,390 _______________________________________________________________________ (1) The U.S. mortgage insurance portfolio reserves exclude reserves on GSE and other risk share risk in force at Essent Re of $51 thousand, $29 thousand, and $0.1 million as of December 31, 2024, 2023 and 2022, respectively. 67 The following tables provide a detail of reserves and defaulted RIF by the number of missed payments and pending claims for our U.S. mortgage insurance portfolio: As of December 31, 2024 ($ in thousands) Number of Policies in Default Percentage of Policies in Default Amount of Reserves Percentage of Reserves Defaulted RIF Reserves as a Percentage of Defaulted RIF Missed payments: Two payments 6,691 36 % $ 32,672 11 % $ 522,644 6 % Three payments 3,154 17 26,278 9 250,696 10 Four to eleven payments 6,408 35 122,551 43 515,600 24 Twelve or more payments 2,022 11 93,269 33 153,376 61 Pending claims 164 1 11,174 4 12,478 90 Total case reserves (1) 18,439 100 % 285,944 100 % $ 1,454,794 20 IBNR 21,446 LAE 2,766 Total reserves for losses and LAE (1) $ 310,156 _______________________________________________________________________________ (1) The U.S. mortgage insurance portfolio reserves exclude reserves on GSE and other risk share risk in force at Essent Re of $51 thousand.
Biggest changeThe following table presents a rollforward of insured loans in default for our mortgage insurance portfolio for the periods indicated: Year Ended December 31, 2025 2024 2023 Beginning default inventory 18,439 14,819 13,433 Plus: new defaults 40,076 37,499 30,550 Less: cures (37,321) (33,134) (28,655) Less: claims paid (899) (671) (467) Less: rescissions and denials, net (85) (74) (42) Ending default inventory 20,210 18,439 14,819 64 The following table includes additional information about our loans in default as of the dates indicated for our mortgage insurance portfolio: As of December 31, 2025 2024 Case reserves (in thousands) $ 396,817 $ 285,944 Total reserves (in thousands) $ 429,610 $ 310,156 Ending default inventory 20,210 18,439 Average case reserve per default (in thousands) $ 19.6 $ 15.5 Average total reserve per default (in thousands) $ 21.3 $ 16.8 Default rate 2.50 % 2.27 % Claims received included in ending default inventory 313 164 The following table provides a reconciliation of the beginning and ending mortgage insurance reserve balances for losses and LAE: Year Ended December 31, (In thousands) 2025 2024 2023 Reserve for losses and LAE at beginning of year $ 310,156 $ 245,402 $ 216,390 Less: Reinsurance recoverables 36,655 24,004 14,618 Net reserve for losses and LAE at beginning of year 273,501 221,398 201,772 Add provision for losses and LAE occurring in: Current year 224,261 171,907 138,603 Prior years (78,888) (96,751) (108,437) Incurred losses and LAE during the current year 145,373 75,156 30,166 Deduct payments for losses and LAE occurring in: Current year 3,567 2,687 517 Prior years 41,817 20,366 10,023 Loss and LAE payments during the current year 45,384 23,053 10,540 Net reserve for losses and LAE at end of period 373,490 273,501 221,398 Plus: Reinsurance recoverables 56,120 36,655 24,004 Reserve for losses and LAE at end of period $ 429,610 $ 310,156 $ 245,402 65 The following tables provide a detail of reserves and defaulted RIF by the number of missed payments and pending claims for our mortgage insurance portfolio: As of December 31, 2025 ($ in thousands) Number of Policies in Default Percentage of Policies in Default Amount of Reserves Percentage of Reserves Defaulted RIF Reserves as a Percentage of Defaulted RIF Missed payments: Two payments 6,892 34 % $ 40,876 10 % $ 545,198 7 % Three payments 3,002 15 32,458 8 246,194 13 Four to eleven payments 7,261 36 163,087 41 615,449 26 Twelve or more payments 2,742 13 139,036 35 224,248 62 Pending claims 313 2 21,360 6 23,797 90 Total case reserves 20,210 100 % 396,817 100 % $ 1,654,886 24 IBNR 29,761 LAE 3,032 Total reserves for losses and LAE $ 429,610 As of December 31, 2024 ($ in thousands) Number of Policies in Default Percentage of Policies in Default Amount of Reserves Percentage of Reserves Defaulted RIF Reserves as a Percentage of Defaulted RIF Missed payments: Two payments 6,691 36 % $ 32,672 11 % $ 522,644 6 % Three payments 3,154 17 26,278 9 250,696 10 Four to eleven payments 6,408 35 122,551 43 515,600 24 Twelve or more payments 2,022 11 93,269 33 153,376 61 Pending claims 164 1 11,174 4 12,478 90 Total case reserves 18,439 100 % 285,944 100 % $ 1,454,794 20 IBNR 21,446 LAE 2,766 Total reserves for losses and LAE $ 310,156 During the year ended December 31, 2025, the provision for losses and LAE was $145.4 million, comprised of $224.3 million for current year losses, partially offset by $78.9 million of favorable prior years' loss development.
The amount of capital required varies in each jurisdiction in which we operate; however, generally, the maximum permitted risk-to-capital ratio is 25.0 to 1. State insurance regulators have continued to examine their respective capital rules to determine whether, in light of the 2007-2008 financial crisis, changes are needed to more accurately assess mortgage insurers' ability to withstand stressful economic conditions.
The amount of capital required varies in each jurisdiction in which we operate; however, generally, the maximum permitted risk-to-capital ratio is 25.0:1. State insurance regulators have continued to examine their respective capital rules to determine whether, in light of the 2007-2008 financial crisis, changes are needed to more accurately assess mortgage insurers' ability to withstand stressful economic conditions.
During the year ended December 31, 2024, the provision for losses and LAE was $75.2 million, comprised of $171.9 million for current year losses, partially offset by $96.8 million of favorable prior years' loss development.
During the year ended December 31, 2024, the provision for losses and LAE was $75.2 million, comprised of $171.9 million of current year losses, partially offset by $96.8 million of favorable prior years' loss development.
This pattern generally occurs because relatively few of the claims that a book will ultimately experience typically occur in the first few years of the book, when premium revenue is highest, while subsequent years are affected by declining premium revenues, as the number of insured loans decreases (primarily due to loan prepayments), and by increasing losses.
This pattern generally occurs because relatively few of the claims that a book will ultimately experience typically occur in the first few years of the book, when premium revenue is 59 highest, while subsequent years are affected by declining premium revenues, as the number of insured loans decreases (primarily due to loan prepayments), and by increasing losses.
The actual default rate and the average reserve per default that we experience as our portfolio matures is difficult to predict and is dependent on the specific characteristics of our current in-force book (including the credit score of the borrower, the loan-to-value ratio of the mortgage, geographic concentrations, etc.), as well as the profile of new business we write in the future.
The actual default rate and the average reserve per default that we experience as our portfolio matures is difficult to predict and is dependent on the specific characteristics of our current in-force book (including the credit score of the borrower, the loan-to-value ratio of the mortgage, geographic 57 concentrations, etc.), as well as the profile of new business we write in the future.
The PMIERs represent the standards by which private mortgage insurers are eligible to provide mortgage insurance on loans owned or guaranteed by Fannie Mae and Freddie Mac. The PMIERs include financial strength requirements incorporating a risk-based framework that require approved insurers to have a sufficient level of liquid assets from which to pay claims.
The PMIERs represent the standards by which private mortgage insurers are eligible to provide mortgage insurance on loans owned 74 or guaranteed by Fannie Mae and Freddie Mac. The PMIERs include financial strength requirements incorporating a risk-based framework that require approved insurers to have a sufficient level of liquid assets from which to pay claims.
See "Results of Operations: Mortgage Insurance - Provision for Losses and Loss Adjustment Expenses" for a 78 discussion of this estimate and Note 6 to our consolidated financial statements a sensitivity of the key assumption for this estimate. Income Taxes Deferred income tax assets and liabilities are determined using the asset and liability (or balance sheet) method.
See "Results of Operations: Mortgage Insurance - Provision for Losses and Loss Adjustment Expenses" for a discussion of this estimate and Note 6 to our consolidated financial statements a sensitivity of the key assumption for this estimate. Income Taxes Deferred income tax assets and liabilities are determined using the asset and liability (or balance sheet) method.
As more fully described in Note 5 to our consolidated financial statements, the premiums ceded under certain reinsurance contracts with unaffiliated third parties varies based on changes in market interest rates. Under GAAP, these contracts contain 57 embedded derivatives that are accounted for separately as freestanding derivatives.
As more fully described in Note 5 to our consolidated financial statements, the premiums ceded under certain reinsurance contracts with unaffiliated third parties varies based on changes in market interest rates. Under GAAP, these contracts contain embedded derivatives that are accounted for separately as freestanding derivatives.
Other expenses include professional fees, travel, marketing, hardware, software, rent, depreciation and amortization and other facilities expenses. Other expenses also includes premiums retained by agents which represents the portion of title insurance premiums retained by our third-party agents pursuant to the terms of their respective agency contracts.
Other expenses include professional fees, travel, marketing, hardware, software, rent, depreciation and amortization and other facilities expenses. Other expenses also include premiums retained by agents which represents the portion of title insurance premiums retained by our third-party agents pursuant to the terms of their respective agency contracts.
Mortgage insurance premiums are paid either on a monthly installment basis ("monthly premiums"), in a single payment at origination ("single premiums"), or in some cases as an annual premium. For monthly premiums, we receive a monthly premium payment which is recorded as net premiums earned in the month the coverage is provided.
Mortgage insurance premiums are paid either on a monthly installment basis ("monthly premiums"), in a single payment at origination ("single premiums"), or in some cases as an annual premium. For monthly premiums, we receive a monthly 55 premium payment which is recorded as net premiums earned in the month the coverage is provided.
The increase in the provision for losses in 2024 was primarily due to an increase in title insurance policies issued and related title premium for the full year 2024 as compared to the six months subsequent to the acquisition of the title insurance operations as well as recent industry experience and trends.
The increase in the provision for losses in 2024 compared to 2023 was primarily due to an increase in title insurance policies issued and related title premium for the full year 2024 as compared to the six months subsequent to the acquisition of the title insurance operations as well as recent industry experience and trends.
Losses incurred are also generally affected by the characteristics of our insured loans, such as the loan amount, loan-to-value ratio, the percentage of coverage on the insured loan and the credit quality of the borrower.
Losses incurred are also generally affected by the characteristics of our insured loans, such as the loan amount, loan-to-value ratio, the percentage of coverage on the insured loan and the credit quality of the 78 borrower.
Essent Guaranty has entered into reinsurance agreements that provide excess of loss reinsurance coverage for new defaults on portfolios of mortgage insurance policies issued from January 1, 2018 through August 31, 2019 and August 1, 2020 through December 31, 2024. The aggregate excess of loss reinsurance coverages decrease over a ten-year period as the underlying covered mortgages amortize.
Essent Guaranty has entered into reinsurance agreements that provide excess of loss reinsurance coverage for new defaults on portfolios of mortgage insurance policies issued from January 1, 2018 through August 31, 2019 and August 1, 2020 through December 31, 2025. The aggregate excess of loss reinsurance coverages decrease over a ten-year period as the underlying covered mortgages amortize.
See additional discussion regarding the impact of the persistency rate on our performance in "—Factors Affecting Our Results of Operations—Persistency and Business Mix." Risk-to-Capital The risk-to-capital ratio has historically been used as a measure of capital adequacy in the U.S. mortgage insurance industry and is calculated as a ratio of net risk in force to statutory capital.
See additional discussion regarding the impact of the persistency rate on our performance in "—Factors Affecting Our Results of Operations—Persistency and Business Mix." Risk-to-Capital The risk-to-capital ratio has historically been used as a measure of capital adequacy in the mortgage insurance industry and is calculated as a ratio of net risk in force to statutory capital.
In addition, Essent Guaranty is a member of the Federal Home Loan Bank of Pittsburgh (the “FHLBank”) and has access to secured borrowing capacity with the FHLBank to provide Essent Guaranty with supplemental liquidity. Essent Guaranty had no outstanding borrowings with the FHLBank at December 31, 2024.
In addition, Essent Guaranty is a member of the Federal Home Loan Bank of Pittsburgh (the “FHLBank”) and has access to secured borrowing capacity with the FHLBank to provide Essent Guaranty with supplemental liquidity. Essent Guaranty had no outstanding borrowings with the FHLBank at December 31, 2025.
If single premium policies are cancelled due to repayment of the underlying loan and the premium is non-refundable, the remaining unearned premium balance is immediately recognized as earned premium revenue. Substantially all of our single premium policies in force as of December 31, 2024 were non-refundable.
If single premium policies are cancelled due to repayment of the underlying loan and the premium is non-refundable, the remaining unearned premium balance is immediately recognized as earned premium revenue. Substantially all of our single premium policies in force as of December 31, 2025 were non-refundable.
During the years ended December 31, 2024, 2023 and 2022, the unrealized losses recorded in the investment portfolio principally resulted from fluctuations in market interest rates and credit spreads. Each issuer was current on its scheduled interest and principal payments.
During the years ended December 31, 2025, 2024 and 2023, the unrealized losses recorded in the investment portfolio principally resulted from fluctuations in market interest rates and credit spreads. Each issuer was current on its scheduled interest and principal payments.
Expenses Provision for Losses The increased provision for losses for 2024 compared to 2023 was primarily driven by an increase in new mortgage insurance defaults, which impacted our mortgage insurance reserves. See “Results of Operations: Mortgage Insurance" for more information.
Expenses Provision for Losses The increased provision for losses for 2025 compared to 2024 was primarily driven by an increase in new mortgage insurance defaults, which impacted our mortgage insurance reserves. See “Results of Operations: Mortgage Insurance" for more information.
Net Investment Income Our investment portfolio was predominantly comprised of investment-grade fixed income securities and money market funds as of December 31, 2024. The principal factors that influence investment income are the size of the investment portfolio and the yield on individual securities.
Net Investment Income Our investment portfolio was predominantly comprised of investment-grade fixed income securities and money market funds as of December 31, 2025. The principal factors that influence investment income are the size of the investment portfolio and the yield on individual securities.
Pursuant to the FAST Act Modernization and Simplification of Regulation S-K, discussions related to the changes in the consolidated results of operations for the year ended December 31, 2023 compared to the year ended December 31, 2022 have been omitted.
Pursuant to the FAST Act Modernization and Simplification of Regulation S-K, discussions related to the changes in the consolidated results of operations for the year ended December 31, 2024 compared to the year ended December 31, 2023 have been omitted.
Persistency Rate The measure for assessing the impact of U.S. mortgage insurance policy cancellations on IIF is our persistency rate, defined as the percentage of IIF that remains on our books after any twelve-month period.
Persistency Rate The measure for assessing the impact of mortgage insurance policy cancellations on IIF is our persistency rate, defined as the percentage of IIF that remains on our books after any twelve-month period.
Starting January 1, 2025, the CIT will result in a new 15% corporate income tax on in-scope entities that are resident in Bermuda or that have a Bermuda permanent establishment, without regard to any assurances that had previously been given pursuant to the Exempted Undertakings Tax Protection Act 1966.
Starting January 1, 2025, the CIT imposes a new 15% corporate income tax on in-scope entities that are resident in Bermuda or that have a Bermuda permanent establishment, without regard to any assurances that had previously been given pursuant to the Exempted Undertakings Tax Protection Act 1966.
Compensation and benefits includes salaries, wages and bonus, stock compensation expense, benefits and payroll taxes. • Premium taxes increased from 2022 to 2023 and from 2023 to 2024 primarily due to an increase in premiums written. • The increases in ceding commission from 2022 to 2023 and 2023 to 2024 results from increases in the amount of reinsured insurance in force under our outstanding quota share arrangements. • Other expenses increased in 2023 compared to 2022 primarily as a result of increases in professional fees and software related expenses.
Compensation and benefits includes salaries, wages and bonus, stock compensation expense, benefits and payroll taxes. • Premium taxes increased from 2023 to 2024 and from 2024 to 2025 primarily due to an increase in premiums written. • The increases in ceding commission from 2023 to 2024 and 2024 to 2025 results from increases in the amount of reinsured insurance in force under our outstanding quota share arrangements. • Other expenses increased in 2025 compared to 2024 primarily as a result of increases in software-related expenses.
Key Performance Indicators Insurance In Force As discussed above, mortgage insurance premiums we collect and earn are generated based on our IIF, which is a function of our NIW and cancellations. The following table includes a summary of the change in our IIF for the years ended December 31, 2024, 2023 and 2022 for our U.S. mortgage insurance portfolio.
Key Performance Indicators Insurance In Force As discussed above, mortgage insurance premiums we collect and earn are generated based on our IIF, which is a function of our NIW and cancellations. The following table includes a summary of the change in our IIF for the years ended December 31, 2025, 2024 and 2023 for our mortgage insurance portfolio.
As of December 31, 2024, our estimated off-balance sheet maximum exposure to loss from the Radnor Re entities was $0.2 million, representing the estimated net present value of investment earnings on the assets in the reinsurance trusts. See Note 5 to our consolidated financial statements for additional information.
As of December 31, 2025, our estimated off-balance sheet maximum exposure to loss from the Radnor Re entities was $0.1 million, representing the estimated net present value of investment earnings on the assets in the reinsurance trusts. See Note 5 to our consolidated financial statements for additional information.
During the year ended December 31, 2023, the provision for losses and LAE was a benefit of $30.2 million, comprised of $138.6 million of current year losses, offset by $108.4 million of favorable prior years' loss development.
During the year ended December 31, 2023, the provision for losses and LAE was $30.2 million, comprised of $138.6 million of current year losses, partially offset by $108.4 million of favorable prior years' loss development.
Net Premiums Written and Earned Mortgage Insurance net premiums earned increased in the year ended December 31, 2024 by 5% compared to the year ended December 31, 2023. The increase in net premiums earned was due to the increase in our average IIF from $234.5 billion in 2023 to $241.6 billion in 2024.
Mortgage Insurance net premiums earned increased in the year ended December 31, 2024 by 5.3% compared to the year ended December 31, 2023. The increase in net premiums earned was due to the increase in our average IIF from $234.5 billion in 2023 to $241.6 billion in 2024.
However, with regulatory approval, a mortgage insurance company may make early withdrawals from the contingency reserve when incurred losses exceed 35% of net premiums earned in a calendar year. During the year ended December 31, 2024, no capital contributions were made to our U.S. mortgage insurance subsidiaries and Essent Guaranty paid dividends to Essent US Holdings, Inc. totaling $165.5 million.
However, with regulatory approval, a mortgage insurance company may make early withdrawals from the contingency reserve when incurred losses exceed 35% of net premiums earned in a calendar year. During the year ended December 31, 2025, no capital contributions were made to our U.S. mortgage insurance subsidiaries and Essent Guaranty paid dividends to Essent US Holdings, Inc. totaling $495.0 million.
Financial Strength Ratings The insurer financial strength ratings of Essent Guaranty, our principal mortgage insurance subsidiary, are A3 with a positive outlook by Moody's, A- with a stable outlook by S&P and A (Excellent) with a stable outlook by A.M. Best.
Financial Strength Ratings The insurer financial strength ratings of Essent Guaranty, our principal mortgage insurance subsidiary, are A2 with a stable outlook by Moody's, A- with a stable outlook by S&P and A (Excellent) with a stable outlook by A.M. Best.
For more information, see Net Premiums Written and Earned under “Results of Operations: Mortgage Insurance” and Net Premiums Earned under “Results of Operations: Corporate & Other”.
For more information, see Net Premiums Written and Earned 61 under “Results of Operations: Mortgage Insurance”, Net Premiums Earned under “Results of Operations: Reinsurance” and Net Premiums Earned under “Results of Operations: Corporate & Other”.
Overview Essent Group Ltd. (collectively with its subsidiaries, “Essent”) serves the housing finance industry by offering private mortgage insurance and reinsurance, title insurance and settlement services to mortgage lenders, borrowers and investors to support homeownership. We have one reportable segment: Mortgage Insurance.
Overview Essent Group Ltd. (collectively with its subsidiaries, “Essent”) serves the housing finance industry by offering private mortgage insurance and reinsurance, title insurance and settlement services to mortgage lenders, borrowers and investors to support homeownership. We have two reportable segments: Mortgage Insurance and Reinsurance.
As more fully described in Note 5 to our consolidated financial statements, at December 31, 2024, we had approximately $1.6 billion of excess of loss reinsurance covering NIW from January 1, 2018 through August 31, 2019 and August 1, 2020 through December 31, 2024 and quota share reinsurance on portions of our NIW effective September 1, 2019 through 59 December 31, 2020 and January 1, 2022 through December 31, 2024.
As more fully described in Note 5 to our consolidated financial statements, at December 31, 2025, we had approximately $1.3 billion of excess of loss reinsurance covering NIW from January 1, 2018 through August 31, 2019 and August 1, 2020 through December 31, 2025 and quota share reinsurance on portions of our NIW effective September 1, 2019 through December 31, 2020 and January 1, 2022 through December 31, 2025.
At December 31, 2024, our insurance subsidiaries were in compliance with these rules, regulations and agreements.
At December 31, 2025, our insurance subsidiaries were in compliance with these rules, regulations and agreements.
Essent Guaranty, Inc., our wholly-owned mortgage insurance subsidiary which we refer to as "Essent Guaranty," is approved by Fannie Mae and Freddie Mac and licensed to write coverage in all 50 states and the District of Columbia.
Essent Guaranty, Inc., our wholly-owned mortgage insurance subsidiary ("Essent Guaranty"), is approved by Fannie Mae and Freddie Mac and licensed to write coverage in all 50 states and the District of Columbia.
We recorded impairments of $0.5 million, $0.2 million and $12.7 million in the years ended December 31, 2024, 2023, and 2022, respectively. The impairments resulted from our intent to sell these securities subsequent to the reporting date.
We recorded impairments of $0.0 million, $0.5 million and $0.2 million in the years ended December 31, 2025, 2024, and 2023, respectively. The impairments resulted from our intent to sell these securities subsequent to the reporting date.
The pre-tax investment income yield increased from 3.5% in the year ended December 31, 2023 to 3.7% in the year ended December 31, 2024 primarily due to a general increase in investment yields due to increasing interest rates. 63 The pre-tax investment income yields are calculated based on amortized cost and exclude investment expenses.
The pre-tax investment income yield increased from 3.7% in the year ended December 31, 2024 to 3.8% in the year ended December 31, 2025 primarily due to a general increase in investment yields due to increasing interest rates. The pre-tax investment income yields are calculated based on amortized cost and exclude investment expenses.
In connection with a quota share reinsurance agreement with Essent Guaranty, Essent Re has agreed to maintain a minimum total equity of $100 million. As of December 31, 2024, Essent Re had total equity of $1.8 billion.
In connection with a quota share reinsurance agreement with Essent Guaranty, Essent Re has agreed to maintain a minimum total equity of $100 million. As of December 31, 2025, Essent Re had total equity of $1.7 billion.
The following table presents the average net premium rate for our U.S. mortgage insurance portfolio: Year Ended December 31, 2024 2023 2022 Base average premium rate 0.41 % 0.40 % 0.41 % Single premium cancellations — — 0.01 Gross average premium rate 0.41 0.40 0.42 Ceded premiums (0.06) (0.05) (0.05) Net average premium rate 0.35 % 0.35 % 0.37 % The continued use of third-party reinsurance along with changes to the level of future cancellations of non-refundable single premium policies and mix of IIF may reduce our average net premium rate in future periods.
The following table presents the average net premium rate for our mortgage insurance portfolio: Year Ended December 31, 2025 2024 2023 Base average premium rate 0.41 % 0.41 % 0.40 % Single premium cancellations — — — Gross average premium rate 0.41 0.41 0.40 Ceded premiums (0.06) (0.06) (0.05) Net average premium rate 0.35 % 0.35 % 0.35 % 60 The continued use of third-party reinsurance along with changes to the level of future cancellations of non-refundable single premium policies and mix of IIF may reduce our average net premium rate in future periods.
The increase in the provision for losses in 2024 was primarily due to increases in new defaults reported, resulting in an increase in the provision for losses recorded for current year defaults, partially offset by cure activity for defaults reported in prior years.
The increase in the provision for losses in the year ended December 31, 2024 was primarily due to an increase in new defaults reported, resulting in an increase in the provision for losses recorded for current year defaults, partially offset by cure activity for defaults reported in prior years.
The Pennsylvania statute also requires that, without the prior approval of the Pennsylvania Insurance Department, dividends and other distributions may only be paid out of positive unassigned surplus. At December 31, 2024, Essent Guaranty, had unassigned surplus of approximately $396.6 million. As of January 1, 2025, Essent Guaranty has dividend capacity of $396.6 million.
The Pennsylvania statute also requires that, without the prior approval of the Pennsylvania Insurance Department, dividends and other distributions may only be paid out of positive unassigned surplus. At December 31, 2025, Essent Guaranty, had unassigned surplus of approximately $245.8 million. As of January 1, 2026, Essent Guaranty has dividend capacity of $245.8 million.
Income from Other Invested Assets As part of our overall investment strategy, we also allocate a relatively small percentage of our portfolio to limited partnership investments in real estate, consumer credit and traditional venture capital and private equity investments. The results of these investing activities are reported in income from other invested assets.
Income from Other Invested Assets As part of our overall investment strategy, we also allocate a percentage of our portfolio to limited partnership investments and traditional venture capital and private equity investments. The results of these investing activities are reported in income from other invested assets.
In connection with its insurance and reinsurance activities, Essent Re is required to maintain assets in trusts for the benefit of its contractual counterparties. See Note 3 to our consolidated financial statements. As of January 1, 2025, Essent Re has dividend capacity of $441.9 million.
In connection with its insurance and reinsurance activities, Essent Re is required to maintain assets in trusts for the benefit of its contractual counterparties. See Note 3 to our consolidated financial statements. As of January 1, 2026, Essent Re has dividend capacity of $423.0 million.
Current Developments The Federal Reserve increased the target federal funds rate several times during 2022 and 2023 in an effort to reduce consumer price inflation. As a result of progress on inflation, the Federal Reserve has reduced the target federal funds rate by 100 basis points since September 2024.
Current Developments The Federal Reserve increased the target federal funds rate several times during 2022 and 2023 in an effort to reduce consumer price inflation. As a result of progress on inflation, the Federal Reserve reduced the target federal funds rate by 100 basis points in 2024 and by another 75 basis points during 2025.
The average balance of investments at amortized cost increased to $6.1 billion during the year ended December 31, 2024 from $5.5 billion during the year ended December 31, 2023, primarily as a result of investing cash flows generated from operations.
The average balance of cash and investments at amortized cost increased to $6.4 billion during the year ended December 31, 2025 from $6.1 billion during the year ended December 31, 2024, primarily as a result of investing cash flows generated from operations.
As a result of subsequent reductions in inflation rates, the Federal Reserve has reduced the target federal funds rate by 100 basis points since September 2024. Mortgage interest rates, however, have remained elevated, which may lower home sale activity and affect the options available to delinquent borrowers.
As a result of subsequent reductions in inflation rates, the Federal Reserve reduced the target federal funds rate by 100 basis points in 2024 and by another 75 basis points during 2025. Mortgage interest rates, however, have remained elevated, which may lower home sale activity and affect the options available to delinquent borrowers.
See "—Liquidity and Capital Resources" for further details of our investment portfolio. Income (Loss) from Other Invested Assets Income from other invested assets for the year ended December 31, 2024 was a gain of $7.4 million as compared to a loss of $11.1 million for the year ended December 31, 2023.
See "Liquidity and Capital Resources" for further details of our investment portfolio. Income (Loss) from Other Invested Assets Income from other invested assets for the year ended December 31, 2025 was a gain of $17.6 million as compared to a gain of $7.4 million for the year ended December 31, 2024.
Stockholders' equity increased primarily due to net income generated in 2024, partially offset by an increase in accumulated other comprehensive loss related to an increase in our net unrealized investment losses and by dividends paid and the repurchase of common shares under our share repurchase plan.
Stockholders' equity increased primarily due to net income generated in 2025 and a decrease in accumulated other comprehensive loss related to a decrease in our net unrealized investment losses, partially offset by dividends paid and the repurchase of common shares under our share repurchase plan.
As of December 31, 2024, we had substantial liquidity, with cash of $131.5 million, short-term investments of $764.0 million and fixed maturity investments of $5.1 billion. We also had $500 million of available capacity under our Revolving Credit Facility. Holding company net cash and investments available for sale totaled $1.1 billion at December 31, 2024.
As of December 31, 2025, we had substantial liquidity, with cash of $123.0 million, short-term investments of $648.5 million and fixed maturity investments of $5.5 billion. We also had $500 million of available capacity under our Revolving Credit Facility. Holding company net cash and investments available for sale totaled $1.3 billion at December 31, 2025.
We have a highly experienced, talented team with 625 employees as of December 31, 2024. Our holding company and reinsurance business are domiciled in Bermuda. Our U.S. mortgage insurance and title insurance operations are headquartered in Radnor, Pennsylvania.
We have a highly experienced, talented team with 514 employees as of December 31, 2025. Our holding company and reinsurance business are domiciled in Bermuda. Our mortgage insurance and title insurance operations are headquartered in Radnor, Pennsylvania.
For the year ended December 31, 2024, income tax expense includes $1.3 million of favorable adjustments related to prior year tax returns and $0.7 million of excess tax benefits associated with the vesting of common shares and common share units.
For the year ended December 31, 2025, income tax expense includes $1.2 million of favorable adjustments related to prior year tax returns and $0.8 million of excess tax benefits associated with the vesting of common shares and common share units.
See additional discussion in "—Liquidity and Capital Resources—Insurance Company Capital." As of December 31, 2024, the net risk in force for Essent Guaranty was $35.2 billion and its statutory capital was $3.6 billion, resulting in a risk-to-capital ratio of 9.8:1.
See additional discussion in "—Liquidity and Capital Resources—Insurance Company Capital." As of December 31, 2025, the net risk in force for Essent Guaranty was $32.5 billion and its statutory capital was $3.6 billion, resulting in a risk-to-capital ratio of 9.1:1.
Our most significant expense is compensation and benefits for our employees, which represented 60%, 58% and 59% of other underwriting and operating expenses for the years ended December 31, 2024, 2023 and 2022, respectively. Compensation and benefits expense includes base and incentive cash compensation, stock compensation expense, benefits and payroll taxes.
Our most significant expense is compensation and benefits for our employees, which represented 51%, 50% and 51% of other underwriting and operating expenses for the years ended December 31, 2025, 2024 and 2023, respectively. Compensation and benefits expense includes base and incentive cash compensation, stock compensation expense, benefits and payroll taxes.
Compensation and benefits includes salaries, wages and bonus, stock compensation expense, benefits and payroll taxes. • Premium and other taxes within Corporate & Other are related to our title insurance operations. • Other expenses increased in 2024 compared to 2023 and in 2023 compared to 2022 primarily as a result of title and settlement services direct cost incurred and increases in professional fees.
Compensation and benefits includes salaries, wages and bonus, stock compensation expense, benefits and payroll taxes. • Premium and other taxes within Corporate & Other are related to our title insurance operations. • Other expenses decreased in 2025 compared to 2024 as a result of a decrease in title and settlement services direct cost incurred due to a decline in transactions and increased in 2024 compared to 2023 primarily as a result of increased title and settlement services direct cost incurred and increases in professional fees as a result of a full year of title insurance operations in 2024.
Concurrently, on July 1, 2024, the Fourth Amended and Restated Credit Agreement (the “Revolving Credit Agreement”) became effective, providing for an effective increase in the Company’s revolving credit facility borrowing capacity from $400 million to $500 million.
Concurrently, on July 1, 2024, the Fourth Amended and Restated Credit Agreement (the “Revolving Credit Agreement”) became effective, providing for an effective increase in the Company’s revolving credit facility borrowing capacity from $400 million to $500 million. See Note 7 to our consolidated financial statements.
The increase in our operating results in 2024 over 2023 was primarily due to an increase in net premiums earned and investment income, partially offset by an increase in the provision for losses and LAE. Our Mortgage Insurance segment reported income before income tax expense of $1.0 billion for the year ended December 31, 2022.
Our Mortgage Insurance segment reported income before income tax expense of $770.1 million for the year ended December 31, 2023. The increase in our operating results in 2024 compared to 2023 was primarily due to increases in net premiums earned and net investment income, partially offset by increases in provision for losses and LAE.
S&P or Fitch Ratings ("Fitch") rating utilized if Moody's not available. (2) Excludes $657,605 and $444,121 of money market funds at December 31, 2024 and December 31, 2023, respectively.
S&P or Fitch Ratings ("Fitch") rating utilized if Moody's not available. (2) Excludes $648,492 and $657,605 of money market funds at December 31, 2025 and December 31, 2024, respectively.
The increase in investments was primarily due to investing net cash flows from operations during the year ended December 31, 2024 partially offset by an increase in our net unrealized investment losses. 75 Investments Available for Sale by Asset Class Asset Class December 31, 2024 December 31, 2023 ($ in thousands) Fair Value Percent Fair Value Percent U.S.
The increase in investments was primarily due to investing net cash flows from operations during the year ended December 31, 2025 as well as a decrease in our net unrealized investment losses. 75 Investments Available for Sale by Asset Class Asset Class December 31, 2025 December 31, 2024 ($ in thousands) Fair Value Percent Fair Value Percent U.S.
During the years ended December 31, 2024 and 2023, Essent US Holdings made capital contributions totaling $24.5 million and $38.1 million to its title insurance subsidiary, respectively.
During the years ended December 31, 2025 and 2024, Essent US Holdings made capital contributions totaling $3.2 million and $24.5 million to its title insurance subsidiary, respectively.
As of December 31, 2024, Essent Guaranty, our GSE-approved mortgage insurance company, was in compliance with the PMIERs. As of December 31, 2024, Essent Guaranty's Available Assets were $3.6 billion or 178% of its Minimum Required Assets were $2.0 billion based on our interpretation of the PMIERs.
As of December 31, 2025, Essent Guaranty, our GSE-approved mortgage insurance company, was in compliance with the PMIERs. As of December 31, 2025, Essent Guaranty's Available Assets were $3.5 billion or 169% of its $2.1 billion of Minimum Required Assets based on our interpretation of the PMIERs.
For the years ended December 31, 2024, 2023 and 2022, our mortgage insurance operations generated new insurance written, or NIW, of approximately $45.6 billion, $47.7 billion and $63.1 billion, respectively. As of December 31, 2024, we had approximately $243.6 billion of mortgage insurance in force.
For the years ended December 31, 2025, 2024 and 2023, our mortgage insurance operations generated new insurance written, or NIW, of approximately $46.6 billion, $45.6 billion and $47.7 billion, respectively. As of December 31, 2025, we had approximately $248.4 billion of mortgage insurance in force.
Premiums retained by agents increased in 2024 compared to 2023 due to a full year of title insurance operations in 2024, partially offset by decreased utilization of third party agents for insurance premiums written during 2024.
Premiums retained by agents decreased in 2025 as a result of a decrease in title insurance policies issued compared to 2024 and increased in 2024 compared to 2023 due to a full year of title insurance operations in 2024, partially offset by decreased utilization of third party agents for insurance premiums written during 2024.
Investments As of December 31, 2024, investments totaled $6.2 billion compared to $5.5 billion as of December 31, 2023. In addition, our total cash was $131.5 million as of December 31, 2024, compared to $141.8 million as of December 31, 2023.
Investments As of December 31, 2025, investments totaled $6.5 billion compared to $6.2 billion as of December 31, 2024. In addition, our total cash was $123.0 million as of December 31, 2025, compared to $131.5 million as of December 31, 2024.
The increase in income from other invested assets for the year ended December 31, 2024 as compared to the year ended December 31, 2023 was primarily due to favorable fair value adjustments recorded during 2024. Other Income Other income was $24.9 million for the year ended December 31, 2024 compared to $25.0 million for the year ended December 31, 2023.
The increase in income from other invested assets for the year ended December 31, 2025 as compared to the year ended December 31, 2024 was primarily due to an increase in favorable fair value adjustments recorded during 2025.
Cash Flows The following table summarizes our consolidated cash flows from operating, investing and financing activities: Year Ended December 31, (In thousands) 2024 2023 2022 Net cash provided by operating activities $ 861,532 $ 763,001 $ 588,817 Net cash used in investing activities (706,926) (525,569) (398,872) Net cash used in financing activities (164,913) (176,885) (190,196) Net (decrease) increase in cash $ (10,307) $ 60,547 $ (251) Operating Activities Cash flow provided by operating activities totaled $861.5 million for the year ended December 31, 2024, as compared to $763.0 million for the year ended December 31, 2023 and $588.8 million for the year ended December 31, 2022.
Cash Flows The following table summarizes our consolidated cash flows from operating, investing and financing activities: Year Ended December 31, (In thousands) 2025 2024 2023 Net cash provided by operating activities $ 856,053 $ 861,532 $ 763,001 Net cash used in investing activities (154,738) (706,926) (525,569) Net cash used in financing activities (709,746) (164,913) (176,885) Net (decrease) increase in cash $ (8,431) $ (10,307) $ 60,547 Operating Activities Cash flow provided by operating activities totaled $856.1 million for the year ended December 31, 2025, as compared to $861.5 million for the year ended December 31, 2024 and $763.0 million for the year ended December 31, 2023.
Based upon our experience and industry data, claims incidence for mortgage insurance is generally highest in the third through sixth years after loan origination. As of December 31, 2024, 56% of our IIF relates to business written since January 1, 2022 and was less than three years old.
Based upon our experience and industry data, claims incidence for mortgage insurance is generally highest in the third through sixth years after loan origination. As of December 31, 2025, 53% of our IIF relates to business written before January 1, 2023 and was at least three years old.
The increase in cash flow from operations of $98.5 million in 2024 compared to 2023 was primarily due to increases in net premiums written and investment income and a decrease in income tax and interest payments, partially offset by an increase in operating expenses paid in the year ended December 31, 2024.
The increase in cash flow from operations of $98.5 million in 2024 compared to 2023 was primarily due to increases in net premiums written and investment income and a decrease in income tax and interest payments, partially offset by an increase in operating expenses paid in the year ended December 31, 2024. 72 Investing Activities Cash flow used in investing activities totaled $154.7 million for the year ended December 31, 2025, $706.9 million for the year ended December 31, 2024 and $525.6 million for the year ended December 31, 2023.
For more information, see “Results of Operations: Mortgage Insurance” and “Results of Operations: Corporate & Other.” Interest Expense For the years ended December 31, 2024 and 2023, we incurred interest expense of $35.3 million and $30.1 million, respectively.
For more information, see “Results of Operations: Mortgage Insurance,” “Results of Operations: Reinsurance” and “Results of Operations: Corporate & Other.” Interest Expense For the years ended December 31, 2025 and 2024, we incurred interest expense of $32.7 million and $35.3 million, respectively.
While the Company and all of its subsidiaries are expected to have sufficient liquidity to meet all their respective expected obligations, additional capital may be required to meet any new capital requirements that are adopted by regulatory authorities or the GSEs, to respond to changes in the business or economic environment, to provide additional capital related to the growth 71 of our risk in force in our mortgage insurance portfolio, or to fund new business initiatives.
Management believes that the Company has sufficient liquidity available both at its holding companies and in its insurance and other operating subsidiaries to meet its operating cash needs and obligations and committed capital expenditures for the next 12 months. 71 While the Company and all of its subsidiaries are expected to have sufficient liquidity to meet all their respective expected obligations, additional capital may be required to meet any new capital requirements that are adopted by regulatory authorities or the GSEs, to respond to changes in the business or economic environment, to provide additional capital related to the growth of our risk in force in our mortgage insurance portfolio, or to fund new business initiatives.
During the year ended December 31, 2024 Essent Re paid dividends totaling $300 million to Essent Group. During the year ended December 31, 2023, Essent Re paid $60 million in dividends to Essent Group. As of December 31, 2024, Essent Re had total stockholders’ equity of $1.8 billion and net risk in force of $23.3 billion.
During the year ended December 31, 2024, Essent Re paid $300 million in dividends to Essent Group. As of December 31, 2025, Essent Re had total stockholders’ equity of $1.7 billion and net risk in force of $25.9 billion.
Revenue from underwriting consulting services to third-party reinsurers is also dependent upon the level of premiums associated with the transactions underwritten for these customers. Revenues from title settlement services and contract underwriting are also dependent upon the number of loans processed for these customers.
Revenue from underwriting consulting services to third-party reinsurers is also dependent upon the level of premiums associated with the transactions underwritten for these customers.
Other expenses include professional fees, travel, marketing, hardware, software, rent, depreciation and amortization and other facilities expenses. 69 Results of Operations: Corporate & Other Year Ended December 31, Summary of Operations (In thousands) 2024 2023 2022 Revenues: Net premiums earned $ 66,206 $ 37,969 $ — Net investment income 38,729 26,271 12,124 Realized investment gains (losses), net (7) (812) (11,343) Income (loss) from other invested assets 204 (10,628) (4,466) Other income 10,775 4,344 — Total revenues 115,907 57,144 (3,685) Losses and expenses: Provision for losses and LAE 6,038 1,422 — Other underwriting and operating expenses 155,130 109,899 60,228 Interest expense 35,319 30,137 15,608 Total losses and expenses before allocations 196,487 141,458 75,836 Corporate expense allocations (43,787) (47,274) (48,100) Total losses and expenses after allocations 152,700 94,184 27,736 Income (loss) before income taxes $ (36,793) $ (37,040) $ (31,421) Net Premiums Earned Net premiums earned reported in Corporate & Other relate to premiums earned by our title insurance operations.
Other expenses include professional fees, travel, marketing, hardware, software, rent, depreciation and amortization and other facilities expenses. 69 Results of Operations: Corporate & Other Year Ended December 31, Summary of Operations (In thousands) 2025 2024 2023 Revenues: Net premiums earned $ 56,366 $ 66,206 $ 37,969 Net investment income 41,888 38,729 26,271 Realized investment losses, net (59) (7) (812) Income (loss) from other invested assets 9,319 204 (10,628) Other income 10,218 10,775 4,344 Total revenues 117,732 115,907 57,144 Losses and expenses: Provision for losses and LAE 3,654 6,038 1,422 Other underwriting and operating expenses 145,006 155,130 109,899 Interest expense 32,696 35,319 30,137 Total losses and expenses before allocations 181,356 196,487 141,458 Corporate expense allocations (39,568) (43,787) (47,274) Total losses and expenses after allocations 141,788 152,700 94,184 Loss before income taxes $ (24,056) $ (36,793) $ (37,040) Net Premiums Earned Net premiums earned reported in Corporate & Other relate to premiums earned by our title insurance operations.
Net Investment Income Our consolidated net investment income was derived from the following sources for the periods indicated: Year Ended December 31, (In thousands) 2024 2023 Fixed maturities $ 186,345 $ 178,829 Short-term investments 40,856 13,651 Gross investment income 227,201 192,480 Investment expenses (5,131) (6,341) Net investment income $ 222,070 $ 186,139 The increase in our consolidated net investment income to $222.1 million for the year ended December 31, 2024 as compared to $186.1 million for the year ended December 31, 2023 was due to the increase in the weighted average balance of our investment portfolio, as well as an increase in the average yield on the investment portfolio.
Net Investment Income Our consolidated net investment income was derived from the following sources for the periods indicated: Year Ended December 31, (In thousands) 2025 2024 Fixed maturities $ 216,991 $ 186,345 Short-term investments 26,680 40,856 Gross investment income 243,671 227,201 Investment expenses (7,154) (5,131) Net investment income $ 236,517 $ 222,070 The increase in our consolidated net investment income to $236.5 million for the year ended December 31, 2025 as compared to $222.1 million for the year ended December 31, 2024 was due to the increase in the weighted average balance of our investment portfolio, as well as an increase in the average yield on the investment portfolio.
Other Underwriting and Operating Expenses Our other underwriting and operating expenses include components that are substantially fixed, as well as expenses that generally increase or decrease in line with the level of mortgage insurance NIW, title insurance policies issued and settlement services provided.
For additional information regarding reinsurance, see Note 5 to our consolidated financial statements. 58 Other Underwriting and Operating Expenses Our other underwriting and operating expenses include components that are substantially fixed, as well as expenses that generally increase or decrease in line with the level of mortgage insurance NIW, title insurance policies issued and settlement services provided.
See Note 12 to our consolidated financial statements. At December 31, 2024 and 2023, we concluded that it was more likely than not that our deferred tax assets would be realized.
At December 31, 2025 and 2024, we concluded that it was more likely than not that our deferred tax assets would be realized.
In connection with the acquisition of our mortgage insurance platform, we entered into a services agreement with Triad Guaranty Inc. and its wholly-owned subsidiary, Triad Guaranty Insurance Corporation, which we refer to collectively as "Triad," to provide certain information technology maintenance and development and customer support-related services.
Revenues from title settlement services and contract underwriting are also dependent upon the number of loans processed for these customers. 56 In connection with the acquisition of our mortgage insurance platform, we entered into a services agreement with Triad Guaranty Inc. and its wholly-owned subsidiary, Triad Guaranty Insurance Corporation, which we refer to collectively as "Triad," to provide certain information technology maintenance and development and customer support-related services.
The decrease in our operating results in 2023 compared to 2022 was primarily due to an increase in the provision for losses and LAE, partially offset by increases in net premiums earned and net investment income.
The decrease in our operating results in 2025 over 2024 was primarily due to an increase in the provision for losses and LAE, partially offset by an increase in net premiums earned and investment income and a decrease in operating expenses and corporate allocations.
The financial strength ratings of Essent Guaranty are A3 with a positive outlook by Moody's Investors Service, Inc. ("Moody's"), A- with a stable outlook by S&P Global Ratings ("S&P") and A (Excellent) with a stable outlook by A.M. Best Company ("AM Best").
The financial strength ratings of Essent Guaranty are A2 with a stable outlook by Moody's Investors Service, Inc. ("Moody's"), A- with a stable outlook by S&P Global Ratings ("S&P") and A (Excellent) with a stable outlook by A.M. Best Company ("AM Best"). Through our wholly-owned Bermuda-based subsidiary, Essent Reinsurance Ltd.
Premiums collected on annual policies are recognized as net premiums 56 earned on a straight-line basis over the year of coverage. For the years ended December 31, 2024 and 2023, monthly premium policies comprised 99% and 97% of our NIW, respectively.
Premiums collected on annual policies are recognized as net premiums earned on a straight-line basis over the year of coverage. For both of the years ended December 31, 2025 and 2024, monthly premium policies comprised 99% of our NIW. Premiums associated with our reinsurance transactions are based on the level of risk in force and premium rates on the transactions.
Our income tax expense was $126.1 million for the year ended December 31, 2024 compared to $126.6 million for the year ended December 31, 2023. The effective tax rate for the year ended December 31, 2024 was 14.7% compared to 15.4% for the year ended December 31, 2023.
Federal income tax return. Our income tax expense was $131.9 million for the year ended December 31, 2025 compared to $126.1 million for the year ended December 31, 2024. The effective tax rate for the year ended December 31, 2025 was 16.0% compared to 14.7% for the year ended December 31, 2024.
Year Ended December 31, ($ in thousands) 2024 2023 2022 IIF, beginning of period $ 239,078,262 $ 227,062,055 $ 207,190,544 NIW 45,561,332 47,666,852 63,061,262 Cancellations (40,994,171) (35,650,645) (43,189,751) IIF, end of period $ 243,645,423 $ 239,078,262 $ 227,062,055 Average IIF during the period $ 241,571,892 $ 234,518,135 $ 215,485,518 RIF, end of period $ 56,477,150 $ 54,591,590 $ 49,903,626 The following is a summary of our IIF at December 31, 2024 by vintage: ($ in thousands) $ % 2024 $ 43,370,993 17.8 % 2023 41,118,618 16.9 2022 51,504,293 21.1 2021 50,162,523 20.6 2020 35,499,947 14.6 2019 and prior 21,989,049 9.0 $ 243,645,423 100.0 % 61 Average Net Premium Rate Our average net premium rate is calculated by dividing net premiums earned for our U.S. mortgage insurance portfolio by average insurance in force for the period and is dependent on a number of factors, including: (1) the risk characteristics and average coverage on the mortgages we insure; (2) the mix of monthly premiums compared to single premiums in our portfolio; (3) cancellations of non-refundable single premiums during the period; (4) changes to our pricing for NIW; and (5) premiums ceded under third-party reinsurance agreements.
Year Ended December 31, ($ in thousands) 2025 2024 2023 IIF, beginning of period $ 243,645,423 $ 239,078,262 $ 227,062,055 NIW 46,563,546 45,561,332 47,666,852 Cancellations (41,852,572) (40,994,171) (35,650,645) IIF, end of period $ 248,356,397 $ 243,645,423 $ 239,078,262 Average IIF during the period $ 246,521,637 $ 241,571,892 $ 234,518,135 RIF, end of period $ 56,519,839 $ 56,477,150 $ 54,591,590 The following is a summary of our IIF at December 31, 2025 by vintage: ($ in thousands) $ % 2025 $ 43,664,410 17.6 % 2024 37,940,873 15.3 2023 35,213,136 14.2 2022 45,373,683 18.3 2021 40,962,380 16.4 2020 and prior 45,201,915 18.2 $ 248,356,397 100.0 % Average Net Premium Rate Our average net premium rate is calculated by dividing net premiums earned for our mortgage insurance portfolio by average insurance in force for the period and is dependent on a number of factors, including: (1) the risk characteristics and average coverage on the mortgages we insure; (2) the mix of monthly premiums compared to single premiums in our portfolio; (3) cancellations of non-refundable single premiums during the period; (4) changes to our pricing for NIW; and (5) premiums ceded under third-party reinsurance agreements.

… 127 more changes not shown on this page.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

2 edited+0 added−0 removed9 unchanged
Biggest changeAt December 31, 2024, the effective duration of our investments available for sale was 3.9 years, which means that an instantaneous parallel shift (movement up or down) in the yield curve of 100 basis points would result in a change of 3.9% in fair value of our investments available for sale.
Biggest changeAt December 31, 2025, the effective duration of our investments available for sale was 4.0 years, which means that an instantaneous parallel shift (movement up or down) in the yield curve of 100 basis points would result in a change of 4.0% in fair value of our investments available for sale.
Excluding short-term investments, our investments available for sale effective duration was 4.3 years, which means that an instantaneous parallel shift (movement up or down) in the yield curve of 100 basis points would result in a change of 4.3% in fair value of our investments available for sale. 80
Excluding short-term investments, our investments available for sale effective duration was 4.4 years, which means that an instantaneous parallel shift (movement up or down) in the yield curve of 100 basis points would result in a change of 4.4% in fair value of our investments available for sale. 80

Other ESNT 10-K year-over-year comparisons