Bermuda's Essent Group Q2 profit slips on higher loss provision, expenses

Essent

07/08/2026 11:39

Overview
Bermuda mortgage insurer's Q2 net income declined yr/yr as losses and expenses rose
Diluted EPS rose to $2.08 from $1.93 as share count fell from buybacks
New insurance written grew to $14.1 bln from $12.5 bln a year earlier

Outlook
Essent Group did not provide specific guidance for the current quarter or full year in the press release 

Result Drivers
NEW INSURANCE WRITTEN - Co said growth in mortgage new insurance written to $14.1 bln contributed to premium revenue
HIGHER LOSSES - Provision for losses and LAE rose to $49 mln from $17 mln a year ago, contributing to lower net income
REINSURANCE PREMIUMS - Reinsurance net premiums written for the first half of 2026 were $248.8 mln, up from $30.6 mln in the first half of 2025

Company press release: ID:nGNXb9YYlG

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Direct Premiums Written
 
$342.40 mln
 
Q2 Net Income
 
$189.71 mln
 
Q2 Pretax Profit
 
$230.32 mln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the property & casualty insurance peer group is "buy."
Wall Street's median 12-month price target for Essent Group Ltd. is $68.00, about 3.8% above its August 6 closing price of $65.51
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 8 three months ago

Reuters Recommended Reads
Aug 5 - Mortgage insurer Enact's Q2 revenue edges past estimates
Aug 5 - Insurer Radian Group's Q2 revenue jumps 93%, beats estimates
Aug 6 - Reinsurance Group of America Q2 profit more than doubles on favorable claims

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)