Essent Group Ltd. (ESNT) SEC Filings & Earnings Calls

Exposure to housing market downturn and GSE policy changes.

“Forward-looking statements mention risks from changes in GSEs, competition, and economic conditions.”

Increasing default rate and loss provision

“Default rate increased to 2.53% at June 30, 2026 from 2.12% at June 30, 2025; provision for losses increased to $29.4M from $15.3M YoY”

P&C reinsurance loss ratio uncertainty

“Property and casualty ultimate losses are estimated on premiums earned and the average loss ratios for property and casualty reinsurance are inherently higher” · word for word

Elevated mortgage rates suppressing origination volumes

“Mortgage interest rates, however, remain elevated, which has reduced home buying and mortgage refinance activity resulting in lower volumes of mortgage originations, NIW and title insurance and settlement service transactions.” · word for word

Aging book of insurance entering high-claim-frequency period

“As of March 31, 2026, 51% of our IIF relates to business written before January 1, 2023 and was at least three years old. As such, we expect incurred losses and claims to increase as a greater amount of this book of insurance is entering its anticipated period of highest claim frequency.” · word for word

Hurricane-related defaults increasing loss provisions

“Loans in default increased by 3,620 in the year ended December 31, 2024, including 2,119 defaults we identified as hurricane-related defaults.” · word for word

New P&C reinsurance business carries higher loss ratios

“Property and casualty ultimate losses are estimated on premiums earned and the average loss ratios for property and casualty reinsurance are inherently higher than loss ratios on the reinsurance of GSE-sponsored mortgage risk share transactions.” · word for word

Exposure to housing market downturn and GSE policy changes.

“Risk factors include changes to Fannie Mae and Freddie Mac, decline in low down payment mortgage originations, and deteriorating economic conditions.”

Elevated Interest Rates and Home Prices Impacting Origination Volume

“Despite a challenging origination environment marked by elevated interest rates and home prices, our credit quality remains exceptionally strong.” · word for word

Higher Defaults Expected in 2025

“The Compensation Committee also considered the probability of a variety of other potentially adverse economic conditions in 2025 such as higher unemployment and a slowdown in overall economic growth that could ultimately manifest in higher levels of defaults in our mortgage insurance portfolio than we have experienced in the last several years.”

Elevated Default Rate

“Percentage of loans in default 2.50 % as of December 31, 2025, compared to 2.27 % as of December 31, 2024.” · word for word

Hurricane-Related Defaults

“Loans in default increased by 3,620 in the year ended December 31, 2024, including 2,119 defaults we identified as hurricane-related defaults.” · word for word

Customer Concentration

“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.” · word for word

Dependence on GSEs and mortgage market conditions.

“changes in or to Fannie Mae and Freddie Mac” · word for word

Exposure to housing market downturn and mortgage default risk.

“Mortgage insurance business; credit trends favorable but subject to economic conditions.”

Default Cycle Risk

“As of September 30, 2025, 45% of our IIF relates to business written since January 1, 2023 and was less than three years old. Although the claims experience on new insurance written by us to date has been favorable, we expect incurred losses and claims to increase as a greater amount of this book of insurance reaches its anticipated period of highest claim f” · word for word

Hurricane Loss Exposure

“Loans in default at December 31, 2024 included 2,119 defaults that we identified as hurricane-related defaults. 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.” · word for word

Regulatory Capital Change

“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.” · word for word