Essent Group reported second-quarter revenue of $362.7 million, beating analyst estimates of $330.8 million and growing 13.6% year on year, while adjusted earnings per share of $2.08 exceeded the consensus of $1.76 by 18.4%. The mortgage insurer benefited from an 84% persistency rate, supported by nearly half its portfolio having mortgage rates below 5.5%, which stabilized premiums and cash flows. Investment income rose, with other invested assets contributing $19.4 million, and the company saw a 10% increase in premium for new insurance written by targeting higher debt-to-income and loan-to-value segments. CEO Mark Casale highlighted the "Buy, Manage & Distribute" model and noted that the persistent high-rate environment supports existing business but limits new originations, while strategic expansion in reinsurance and title offers long-term growth optionality.
Essent Group LtdBeat Q2 revenue and EPS estimates, with strong persistency and investment income.
