$ESNT

Essent Group Ltd.

CIK:0001448893|SEC Filings

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Revenues:
Net premiums written	$ 307,285	$ 241,488	$ 701,954	$ 479,759
(Increase) decrease in unearned premiums	(30,521)	7,321	(165,097)	14,898
Net premiums earned	276,764	248,809	536,857	494,657
Net investment income	61,612	59,289	120,867	117,499
Realized investment gains (losses), net	(111)	(129)	(258)	(310)
Income from other invested assets	19,385	4,466	29,564	11,874
Other income	5,036	6,708	11,728	12,981
Total revenues	362,686	319,143	698,758	636,701
Losses and expenses:
Provision for losses and LAE	48,961	17,055	97,177	48,342
Other underwriting and operating expenses	75,258	62,765	148,241	133,889
Interest expense	8,148	8,148	16,296	16,296
Total losses and expenses	132,367	87,968	261,714	198,527
Income before income taxes	230,319	231,175	437,044	438,174
Income tax expense	40,605	35,836	75,531	67,402
Net income	$ 189,714	$ 195,339	$ 361,513	$ 370,772
Earnings per share:
Basic (in dollars per share)	$ 2.09	$ 1.95	$ 3.92	$ 3.65
Diluted (in dollars per share)	$ 2.08	$ 1.93	$ 3.89	$ 3.62
Weighted average shares outstanding:
Basic (in shares)	90,740	100,037	92,271	101,451
Diluted (in shares)	91,389	101,059	92,972	102,495
Other comprehensive income (loss):
Unrealized (depreciation) appreciation of investments, net of tax (benefit) expense of $231 and $2,070 in the three months ended June 30, 2026 and 2025, and ($7,178) and $13,365 in the six months ended June 30, 2026 and 2025, respectively.	$ (2,726)	$ 16,580	$ (38,677)	$ 88,318
Total other comprehensive income (loss)	(2,726)	16,580	(38,677)	88,318
Comprehensive income	$ 186,988	$ 211,919	$ 322,836	$ 459,090

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Operating Activities
Net income	$ 361,513	$ 370,772
Adjustments to reconcile net income to net cash provided by operating activities:
Realized investment losses, net	258	310
Income from other invested assets	(29,564)	(11,874)
Distribution of income from other invested assets	6,513	3,327
Depreciation and amortization	2,433	2,714
Stock-based compensation expense	10,689	12,942
Amortization of premium on investment securities	6,247	7,007
Deferred income tax provision (benefit)	(8,253)	21,409
Change in:
Accrued investment income	(935)	(2,208)
Accounts receivable	(118,433)	3,786
Deferred policy acquisition costs	(59,310)	416
Prepaid federal income tax	17,100	(7,756)
Other assets	(45,015)	(2,147)
Reserve for losses and LAE	71,977	35,883
Unearned premium reserve	165,097	(13,601)
Other accrued liabilities	8,817	(9,876)
Net cash provided by operating activities	389,134	411,104
Investing Activities
Net change in short-term investments	24,597	180,990
Purchase of investments available for sale	(535,774)	(602,313)
Proceeds from maturity and paydowns of investments available for sale	463,945	414,860
Proceeds from sales of investments available for sale	74,313	6,226
Purchase of other invested assets	(39,976)	(48,617)
Return of investment from other invested assets	3,686	1,241
Purchase of property and equipment and capitalization of internal-use software	(1,790)	(963)
Net cash used in investing activities	(10,999)	(48,576)
Financing Activities
Treasury stock acquired	(362,665)	(339,362)
Dividends paid	(64,186)	(62,530)
Net cash used in financing activities	(426,851)	(401,892)
Net decrease in cash	(48,716)	(39,364)
Cash at beginning of year	123,049	131,480
Cash at end of period	74,333	92,116
Supplemental Disclosure of Cash Flow Information
Income tax payments	(73,525)	(53,737)
Interest payments	(15,625)	(15,625)
Noncash Transactions
Excise taxes payable for share repurchases	0	950
Property, equipment, and capitalized internal-use software costs included in other liabilities	98	0
Lease liabilities arising from obtaining right-of-use assets	$ 292	$ 4,294

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Investments
Total investments available for sale	$ 6,038,695	$ 6,104,085
Other invested assets	441,852	382,513
Total investments	6,480,547	6,486,598
Cash	74,333	123,049
Accrued investment income	48,306	47,371
Accounts receivable	169,772	51,267
Deferred policy acquisition costs	68,857	9,547
Property, equipment and software (at cost, less accumulated depreciation of $73,197 in 2026 and $71,466 in 2025)	47,753	49,189
Prepaid federal income tax	496,325	513,425
Goodwill and acquired intangible assets, net	77,451	78,153
Other assets	128,538	82,404
Total assets	7,591,882	7,441,003
Liabilities
Reserve for losses and LAE	518,799	446,822
Unearned premium reserve	256,827	91,730
Net deferred tax liability	449,738	465,351
Senior Notes due 2029, net	495,972	495,301
Other liabilities	207,145	185,072
Total liabilities	1,928,481	1,684,276
Commitments and contingencies (see Note 7)
Stockholders’ Equity
Common shares, $0.015 par value: Authorized - 233,333; issued and outstanding - 92,153 shares in 2026 and 95,456 shares in 2025	1,348	1,432
Additional paid-in capital	298,724	649,895
Accumulated other comprehensive loss	(190,662)	(151,985)
Retained earnings	5,553,991	5,257,385
Total stockholders’ equity	5,663,401	5,756,727
Total liabilities and stockholders’ equity	7,591,882	7,441,003
Fixed maturities
Investments
Total investments available for sale	5,414,809	5,455,593
Short-term investments
Investments
Total investments available for sale	$ 623,886	$ 648,492