Underwriting profitability remains robust with a 37.3% combined ratio in 2026Q1, though revenue growth has slowed significantly to 1.7% compared to the 29.2% expansion observed in 2023Q4.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 |
|---|
| Revenue | 1.29B | 1.26B | 1.27B | 1.13B | 1.02B | 1.03B | 955.15M | 867.57M | 719.35M | 576.51M | 458.26M | 353.29M | 239.47M | 131.4M | 48.72M | 14.39M |
| Revenue Growth % | -0.91% | -0.49% | 12.03% | 11.07% | -0.99% | 7.68% | 10.1% | 20.6% | 24.78% | 25.8% | 29.71% | 47.53% | 82.24% | 169.73% | 238.59% | - |
| Medical Costs & Claims | 166.27M | 149.34M | 81.22M | 31.54M | -174.7M | 31.06M | 301.29M | 32.99M | 11.57M | 27.23M | 0 | 0 | 6.31M | 2.32M | 0 | 0 |
| Medical Cost Ratio % | 12.92% | 11.84% | 6.41% | 2.79% | -17.16% | 3.02% | 31.54% | 3.8% | 1.61% | 4.72% | 0% | 0% | 2.63% | 1.77% | 0% | 0% |
| Gross Profit | 1.12B | 1.11B | 1.19B | 1.1B | 1.19B | 997.45M | 653.86M | 834.58M | 707.78M | 549.28M | 458.26M | 353.29M | 233.16M | 129.08M | 48.72M | 14.39M |
| Gross Margin % | 87.08% | 88.16% | 93.59% | 97.21% | 117.16% | 96.98% | 68.46% | 96.2% | 98.39% | 95.28% | 100% | 100% | 97.37% | 98.23% | 100% | 100% |
| Gross Profit Growth % | - | -6.27% | 7.86% | -7.84% | 19.61% | 52.55% | -21.65% | 17.92% | 28.86% | 19.86% | 29.71% | 51.52% | 80.63% | 164.97% | 238.59% | - |
| Operating Expenses | 298.95M | 289.74M | 330.44M | 276.54M | 204.85M | 175.14M | 163.76M | 175.52M | 161.08M | 150.71M | 146.38M | 124.89M | 97.23M | 71.06M | 62.59M | 48.84M |
| OpEx / Revenue % | 23.23% | 22.98% | 26.08% | 24.45% | 20.12% | 17.03% | 17.15% | 20.23% | 22.39% | 26.14% | 31.94% | 35.35% | 40.6% | 54.07% | 128.48% | 339.44% |
| Depreciation & Amortization | 5.09M | 5.23M | 5.78M | 4.53M | 3.02M | 3.38M | 3.33M | 3.77M | 3.4M | 3.92M | 4.06M | 3.22M | 2.46M | 2.25M | 15.16M | 13.59M |
| Combined Ratio % | 36.15% | 34.82% | 32.49% | 27.24% | 2.96% | 20.05% | 48.69% | 24.03% | 24% | 30.87% | 31.94% | 35.35% | 43.24% | 55.84% | 128.48% | 339.44% |
| Operating Income | 821.59M | 821.86M | 855.49M | 823M | 988.19M | 822.31M | 490.1M | 659.06M | 546.7M | 398.57M | 311.88M | 228.4M | 135.93M | 58.03M | -13.88M | -34.45M |
| Operating Margin % | 63.85% | 65.18% | 67.51% | 72.76% | 97.04% | 79.95% | 51.31% | 75.97% | 76% | 69.13% | 68.06% | 64.65% | 56.76% | 44.16% | -28.48% | -239.44% |
| Operating Income Growth % | - | -3.93% | 3.95% | -16.72% | 20.17% | 67.79% | -25.64% | 20.55% | 37.17% | 27.79% | 36.55% | 68.03% | 134.25% | 518.18% | 59.72% | - |
| EBITDA | 826.68M | 827.1M | 861.27M | 827.52M | 991.21M | 825.69M | 493.42M | 662.83M | 550.1M | 402.49M | 315.95M | 231.62M | 138.39M | 60.28M | 1.28M | -20.86M |
| EBITDA Margin % | 64.24% | 65.59% | 67.97% | 73.16% | 97.34% | 80.28% | 51.66% | 76.4% | 76.47% | 69.81% | 68.95% | 65.56% | 57.79% | 45.87% | 2.63% | -144.97% |
| Interest Expense | 32.7M | 32.7M | 35.32M | 30.14M | 15.61M | 8.28M | 9.07M | 10.15M | 10.18M | 5.18M | 426K | 0 | 0 | 0 | 0 | 0 |
| Non-Operating Income | -32.7M | -32.7M | -35.32M | -30.14M | -15.61M | -8.28M | -9.07M | -10.15M | -10.18M | -5.18M | -426K | 0 | 0 | 0 | 1.28M | -20.86M |
| Pretax Income | 821.59M | 821.86M | 855.49M | 823M | 988.19M | 822.31M | 490.1M | 659.06M | 546.7M | 398.57M | 311.88M | 228.4M | 135.93M | 58.03M | -13.88M | -34.45M |
| Pretax Margin % | 63.85% | 65.18% | 67.51% | 72.76% | 97.04% | 79.95% | 51.31% | 75.97% | 76% | 69.13% | 68.06% | 64.65% | 56.76% | 44.16% | -28.48% | -239.44% |
| Income Tax | 135.25M | 131.89M | 126.09M | 126.61M | 156.83M | 140.53M | 77.06M | 103.35M | 79.34M | 18.82M | 89.28M | 71.07M | 47.43M | -7.39M | -333K | -895K |
| Effective Tax Rate % | 16.46% | 16.05% | 14.74% | 15.38% | 15.87% | 17.09% | 15.72% | 15.68% | 14.51% | 4.72% | 28.62% | 31.12% | 34.89% | -12.73% | 2.4% | 2.6% |
| Net Income | 686.34M | 689.97M | 729.4M | 696.39M | 831.35M | 681.78M | 413.04M | 555.71M | 467.36M | 379.75M | 222.61M | 157.33M | 88.5M | 65.41M | -13.54M | -33.55M |
| Net Margin % | 53.34% | 54.72% | 57.56% | 61.57% | 81.64% | 66.29% | 43.24% | 64.05% | 64.97% | 65.87% | 48.58% | 44.53% | 36.96% | 49.78% | -27.8% | -233.22% |
| Net Income Growth % | -5.09% | -5.41% | 4.74% | -16.23% | 21.94% | 65.06% | -25.67% | 18.9% | 23.07% | 70.59% | 41.49% | 77.78% | 35.29% | 583% | 59.64% | - |
| EPS (Diluted) | 7.26 | 6.90 | 6.85 | 6.50 | 7.72 | 6.11 | 3.88 | 5.66 | 4.77 | 3.99 | 2.41 | 1.72 | 1.03 | 0.70 | -0.35 | -0.87 |
| EPS Growth % | 2.78% | 0.73% | 5.38% | -15.8% | 26.35% | 57.47% | -31.45% | 18.66% | 19.55% | 65.56% | 40.12% | 66.99% | 47.14% | 300% | 59.77% | - |
| EPS (Basic) | - | 6.97 | 6.92 | 6.56 | 7.75 | 6.13 | 3.89 | 5.68 | 4.80 | 4.07 | 2.45 | 1.74 | 1.05 | 0.90 | -0.35 | -0.87 |
| Diluted Shares Outstanding | 94.57M | 100.02M | 106.55M | 107.13M | 107.65M | 111.56M | 106.38M | 98.23M | 97.97M | 95.21M | 92.25M | 91.74M | 85.6M | 18.1M | 38.45M | 38.45M |
Housing market volume sensitivity
As reported in financial statements, Essent's revenue growth has fluctuated significantly, moving from a 29.2% expansion in 2023Q4 to a 1.7% increase by 2026Q1, reflecting the broader challenges of a high-interest-rate environment suppressing new mortgage originations and limiting the company's ability to expand its insurance-in-force base.
The deceleration in top-line growth suggests that the company is struggling to offset the decline in new insurance written with its existing recurring premium base. Investors should monitor whether the recent pivot into title insurance can provide a meaningful revenue offset or if the core mortgage insurance segment remains overly tethered to volatile housing transaction volumes.
Based on the provided income statement data, Essent maintained a combined ratio of 37.3% in 2026Q1, demonstrating that the company continues to generate substantial underwriting profits despite the inherent volatility in loss ratios, which peaked at 17.9% in 2025Q4 before moderating in the most recent quarter.
The consistently low combined ratio indicates that the company's proprietary EssentEDGE pricing engine is effectively managing credit risk, allowing for significant margin capture. While the loss ratio shows periodic spikes, the overall underwriting performance remains robust, suggesting that the company's risk selection remains disciplined even as the macroeconomic environment shifts.
According to the historical loss data, the company experienced a notable anomaly in 2024Q2 where the loss ratio dropped to -0.1%, suggesting that significant reserve releases or favorable claim development may have temporarily inflated net income during that specific period compared to more normalized quarters.
The wide variance in quarterly loss ratios warrants further investigation into the company's reserving methodology and the extent to which current earnings are reliant on the release of prior-year provisions. Analysts should be cautious in extrapolating peak earnings periods, as these may be driven by accounting adjustments rather than purely organic underwriting improvements.
As evidenced by the company's low debt-to-equity ratio of 0.09%, Essent maintains a fortress balance sheet that provides significant flexibility, allowing the firm to navigate cyclical downturns without the leverage-related pressures that often constrain its more heavily indebted peers in the mortgage insurance sector.
This capital discipline appears to be a core component of the company's strategy, enabling it to return value to shareholders while maintaining a buffer against potential credit stress. The ability to operate with minimal debt suggests that management is prioritizing long-term solvency over aggressive, debt-fueled expansion, which may justify its premium valuation relative to competitors.
Quick answers to the most common questions about buying ESNT stock.
For fiscal year 2025, Essent Group Ltd. (ESNT) reported total revenue of $1.26B. This represents a 8663.8% increase compared to $14.4M in 2011.
Essent Group Ltd. (ESNT) is profitable, generating $690.0M in net income for the fiscal year ending 2025 with a net profit margin of 54.7%.
Essent Group Ltd. (ESNT) reported an operating income of $821.9M, resulting in an operating profit margin of 65.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Essent Group Ltd. (ESNT) generated $1.11B in gross profit for the year, representing a gross profit margin of 88.2%. This demonstrates the company's core pricing power and production efficiency.