Start here if you're new
what it is
Essent sells insurance to mortgage lenders, so lenders get paid first if a borrower defaults.
how it gets paid
Last year Essent made $1.3B in revenue. primary mortgage insurance was the main engine at $1.12B, or 86% of sales.
why it's growing
Revenue grew 1.5% last year. EPS of $5.29 mattered most because it showed how hard quarterly profit can swing in this model versus the steadier full-year EPS base of $6.85.
what just happened
Revenue hit $949M and EPS reached $5.29, far above the year-ago quarter.
At a glance
A balance sheet — strong enough to weather a downturn
70/100 earnings predictability — reasonably predictable
9.3x trailing p/e — the market's not buying it — or you found a deal
2.4% dividend yield — cash in your pocket every quarter
12.0% return on capital — nothing to write home about
xvary composite: 72/100 — average
What they do
Essent sells insurance to mortgage lenders, so lenders get paid first if a borrower defaults.
This business wins because lenders do not buy charm. They buy claims-paying confidence. Essent has $243.6 billion of insurance in force, which means you are trusting it on a mortgage pile about 49 times its roughly $5 billion market value. In insurance, scale → more policies spread risk → so what: a big book can price steadier when housing gets weird.
How they make money
$1.3B
annual revenue · their business grew +1.5% last year
primary mortgage insurance
$1.12B
pool mortgage insurance
$0.08B
master policy mortgage insurance
$0.04B
title and settlement services
$0.03B
underwriting and support services
$0.03B
The products that matter
insures new home loans
Primary Mortgage Insurance
$866.7M · 67% of mix shown
This is the core engine. It produced $866.7M and grew 3.6% over the last five years, which tells you the business is durable but not fast-growing.
core profit pool
sells and manages risk
Reinsurance & Other
$288.3M · 22% of mix shown
At $288.3M, this piece helps spread risk and adds diversification, but it is still far smaller than the core mortgage insurance book.
secondary lever
title checks and coverage
Title Insurance & Services
$145M · 11% of mix shown
This segment is expected to contribute about $145M in 2026. That is real, but it is not yet large enough to change the whole thesis on its own.
small diversification
Key numbers
9.3x
trailing p/e
P/E → price divided by trailing earnings → so what: you are paying $9.30 for each $1 of trailing profit.
$243.6B
insurance in force
This is the mortgage balance Essent stands behind. Bigger insured volume means more premium income, but also bigger exposure if defaults rise.
$45.6B
new insurance written
This is fresh business sold in 2024. New volume is tomorrow's premium stream.
12.0%
return on capital
Return on capital → profit earned on the money used in the business → so what: Essent turns each $1 of capital into $0.12 of annual profit.
Financial health
A
strength
- balance sheet grade A — very strong financial position
- risk rank 3 — safer than 50% of stocks
- price stability 80 / 100
- long-term debt $494M (8% of capital)
A — among the top-rated companies for balance sheet quality.
Total return vs. market
Return history isn't available for ESNT right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Revenue hit $949M and EPS reached $5.29, far above the year-ago quarter.
That quarter was much hotter than the full-year picture. Annual revenue was $1.3B, up just 1.5%, so you are looking at a business with lumpy quarterly results on top of a steadier insurance engine.
$325M
revenue
$5.29
eps
$243.6B
insurance in force
the number that mattered
EPS of $5.29 mattered most because it showed how hard quarterly profit can swing in this model versus the steadier full-year EPS base of $6.85.
source: company earnings report, 2026
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What could go wrong
the #1 risk is a slowdown in low-down-payment mortgage originations.
high
Housing turnover stalls
Essent gets paid when lenders want protection on new low-down-payment mortgages. If purchase activity slows, the $866.7M primary mortgage insurance business feels it first.
core exposure: 67% of the mix shown here
high
Credit quality deteriorates
This business exists because borrowers are putting down less than 20%. When defaults rise, mortgage insurers discover very quickly whether underwriting was conservative enough.
the balance sheet is A-rated, but insurance losses can still compress earnings
med
The diversification story stays small
Title Insurance & Services is expected to be about $145M in 2026. That is only 11% of the mix shown here, so it cannot offset a weak core business on its own.
small side businesses do not rescue a slowing core
med
Cheap can stay cheap
A 9.3x P/E looks inexpensive until you remember revenue grew just 1.5% last year and the core business only 3.6% over five years.
value without reacceleration can become a waiting room
If housing activity weakens, the pressure lands on the $866.7M primary mortgage insurance segment first, and that is still 67% of the business mix shown on this page.
source: institutional data · regulatory filings · risk analysis
Pay attention to
capital return
$500M share repurchase authorization
At 9.3x earnings, buybacks are one of the few ways management can create obvious per-share value without waiting for housing to speed up.
next catalyst
Q1 2026 earnings report
You want to see whether the dividend hike came alongside steady underwriting and whether the title segment is still building from the current $145M expectation.
core trend
Primary mortgage insurance growth
Five-year growth of 3.6% is fine, not exciting. If that number slips, the cheap multiple stops looking like an opportunity and starts looking accurate.
governance
Board declassification in 2026
This is not the whole story, but better governance can matter when investors are judging capital return discipline and downside protection.
Analyst rankings
earnings predictability
70 / 100
in human-speak, analysts see a business that is usually steady but still exposed to housing and credit-cycle surprises.
balance sheet grade
A
Strong balance sheet. Plain English: distress is not the main problem here. Growth is.
source: institutional data
Institutional activity
institutional ownership data for ESNT is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$64
current price
n/a
target midpoint · n/a from current
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