Essent Group Ltd.ESNT
Essent Group Ltd. Segments Disclosure
Segment Reporting
We have two reportable business segments: Mortgage Insurance and Reinsurance. Our Mortgage Insurance segment offers private mortgage insurance for mortgages secured by residential properties located in the United States. We provide private mortgage insurance on residential first-lien mortgage loans (“mortgage insurance”) through our mortgage insurance subsidiary, Essent Guaranty, Inc., which we refer to as "Essent Guaranty", and also offer other credit risk management solutions, including contract underwriting, to our customers.
Our Reinsurance segment primarily reinsures U.S. mortgage risk in the GSE credit risk transfer market and provides underwriting consulting services to third-party reinsurers ("GSE and other risk share") through our wholly owned, Bermuda-based subsidiary, Essent Reinsurance Ltd., which we refer to as "Essent Re".
Prior to December 31, 2025, we disclosed one reportable segment, Mortgage Insurance, which was comprised of "U.S. mortgage insurance" and "GSE and other mortgage risk share." Our mortgage insurance business and GSE and other mortgage risk share business each represented operating segments that were aggregated and disclosed as one reportable segment based on their shared economic characteristics and the similarities between the two operating segments. In the fourth quarter of 2025, Essent Re entered the Lloyd's of London market to reinsure certain property and casualty risks beginning in the first quarter of 2026. Considering the expansion of business and types of risks reinsured at Essent Re, our Chief Operating Decision Maker began to assess the performance of all third-party reinsurance as an operating segment as of December 31, 2025. To reflect this change, the GSE and other mortgage risk share operating segment is no longer aggregated with mortgage insurance and all third-party reinsurance is now disclosed as a separate reportable segment: Reinsurance. All prior period segment information has been recast to conform to the new segment presentation.
In addition, our "Corporate & Other" category is used to reconcile our reportable segments to consolidated results and includes business activities associated with our title insurance operations, income and losses from holding company treasury operations, as well as general corporate operating expenses not attributable to our operating segments. Our title insurance operations are an operating segment that does not meet the quantitative thresholds of a separate reportable segment.
We allocate corporate management and support expenses to operating segments based on their percentage of total operating segment revenues, which approximates the estimated percentage of management time and resources spent on each operating segment. We view our borrowings as holding company capital and liquidity and as such, all interest expense is included in Corporate & Other.
Our senior management team, including our President & Chief Executive Officer (Essent's chief operating decision maker or "CODM"), uses income (loss) before income taxes as the primary measure to evaluate the financial performance of the operating segments and to allocate resources to those segments, including capital allocations and assessing headcount. The CODM also assesses the profitability of our Mortgage Insurance and Reinsurance segments through analysis of the loss ratio, expense ratio and combined ratio. We do not manage our segments by assets.
Segment Information: Profit & Loss
The following tables reconcile the components of reportable segment profit and loss to consolidated profit and loss. Within the tables, we have disclosed significant segment expenses at a level of disaggregation that coincides with what is regularly provided to the CODM. Other underwriting and operating expenses in our reportable segments include software, professional fees, travel, and occupancy costs. The accounting policies of our operating segments are the same as those described in the summary of significant accounting policies. We do not have inter-segment transactions.
Year Ended December 31, 2025 | ||||||||||||||||||||||||||||||||
(In thousands) | Mortgage Insurance | Reinsurance | Total Reportable Segments | Corporate & Other | Consolidated | |||||||||||||||||||||||||||
| Revenues: | ||||||||||||||||||||||||||||||||
| Net premiums earned | $ | 866,743 | $ | 60,609 | $ | 927,352 | $ | 56,366 | $ | 983,718 | ||||||||||||||||||||||
| Net investment income | 174,358 | 20,271 | 194,629 | 41,888 | 236,517 | |||||||||||||||||||||||||||
Realized investment gains (losses), net | (870) | 6 | (864) | (59) | (923) | |||||||||||||||||||||||||||
Income from other invested assets | 8,267 | — | 8,267 | 9,319 | 17,586 | |||||||||||||||||||||||||||
| Other income | 5,111 | 8,708 | 13,819 | 10,218 | 24,037 | |||||||||||||||||||||||||||
| Total revenues | 1,053,609 | 89,594 | 1,143,203 | 117,732 | 1,260,935 | |||||||||||||||||||||||||||
| Losses and expenses: | ||||||||||||||||||||||||||||||||
Provision for losses and LAE | 145,373 | 310 | 145,683 | 3,654 | 149,337 | |||||||||||||||||||||||||||
Compensation and benefits | 64,392 | 4,547 | 68,939 | 61,011 | 129,950 | |||||||||||||||||||||||||||
Premium and other taxes | 23,596 | 52 | 23,648 | 2,181 | 25,829 | |||||||||||||||||||||||||||
Ceding commission | (28,669) | 1,410 | (27,259) | — | (27,259) | |||||||||||||||||||||||||||
| Other underwriting and operating expenses | 42,570 | 4,136 | 46,706 | 81,814 | 128,520 | |||||||||||||||||||||||||||
Net operating expenses before allocations | 101,889 | 10,145 | 112,034 | 145,006 | 257,040 | |||||||||||||||||||||||||||
Corporate expense allocations | 38,077 | 1,491 | 39,568 | (39,568) | — | |||||||||||||||||||||||||||
Operating expenses after allocations | 139,966 | 11,636 | 151,602 | 105,438 | 257,040 | |||||||||||||||||||||||||||
Interest expense | — | — | — | 32,696 | 32,696 | |||||||||||||||||||||||||||
Income (loss) before income taxes | $ | 768,270 | $ | 77,648 | $ | 845,918 | $ | (24,056) | $ | 821,862 | ||||||||||||||||||||||
Loss ratio (1) | 16.8 | % | 0.5 | % | 15.7 | % | ||||||||||||||||||||||||||
Expense ratio (2) | 16.1 | 19.2 | 16.3 | |||||||||||||||||||||||||||||
Combined ratio | 32.9 | % | 19.7 | % | 32.0 | % | ||||||||||||||||||||||||||
(1) Loss ratio is calculated by dividing the provision (benefit) for losses and LAE by net premiums earned. | ||||||||||||||||||||||||||||||||
(2) Expense ratio is calculated by dividing operating expenses after allocations by net premiums earned. | ||||||||||||||||||||||||||||||||
Year Ended December 31, 2024 | ||||||||||||||||||||||||||||||||
(In thousands) | Mortgage Insurance | Reinsurance | Total Reportable Segments | Corporate & Other | Consolidated | |||||||||||||||||||||||||||
| Revenues: | ||||||||||||||||||||||||||||||||
| Net premiums earned | $ | 855,793 | $ | 68,883 | $ | 924,676 | $ | 66,206 | $ | 990,882 | ||||||||||||||||||||||
| Net investment income | 164,469 | 18,872 | 183,341 | 38,729 | 222,070 | |||||||||||||||||||||||||||
Realized investment losses, net | (2,343) | — | (2,343) | (7) | (2,350) | |||||||||||||||||||||||||||
Income from other invested assets | 7,171 | — | 7,171 | 204 | 7,375 | |||||||||||||||||||||||||||
| Other income | 4,896 | 9,256 | 14,152 | 10,775 | 24,927 | |||||||||||||||||||||||||||
| Total revenues | 1,029,986 | 97,011 | 1,126,997 | 115,907 | 1,242,904 | |||||||||||||||||||||||||||
| Losses and expenses: | ||||||||||||||||||||||||||||||||
| Provision for losses and LAE | 75,156 | 26 | 75,182 | 6,038 | 81,220 | |||||||||||||||||||||||||||
| Compensation and benefits | 67,985 | 4,171 | 72,156 | 64,236 | 136,392 | |||||||||||||||||||||||||||
| Premium and other taxes | 22,951 | 56 | 23,007 | 1,497 | 24,504 | |||||||||||||||||||||||||||
| Ceding commission | (25,144) | 896 | (24,248) | — | (24,248) | |||||||||||||||||||||||||||
| Other underwriting and operating expenses | 41,168 | 3,661 | 44,829 | 89,397 | 134,226 | |||||||||||||||||||||||||||
| Net operating expenses before allocations | 106,960 | 8,784 | 115,744 | 155,130 | 270,874 | |||||||||||||||||||||||||||
| Corporate expense allocations | 43,003 | 784 | 43,787 | (43,787) | — | |||||||||||||||||||||||||||
| Operating expenses after allocations | 149,963 | 9,568 | 159,531 | 111,343 | 270,874 | |||||||||||||||||||||||||||
| Interest expense | — | — | — | 35,319 | 35,319 | |||||||||||||||||||||||||||
| Income (loss) before income taxes | $ | 804,867 | $ | 87,417 | $ | 892,284 | $ | (36,793) | $ | 855,491 | ||||||||||||||||||||||
Loss ratio (1) | 8.8 | % | — | % | 8.1 | % | ||||||||||||||||||||||||||
Expense ratio (2) | 17.5 | 13.9 | 17.3 | |||||||||||||||||||||||||||||
| Combined ratio | 26.3 | % | 13.9 | % | 25.4 | % | ||||||||||||||||||||||||||
(1) Loss ratio is calculated by dividing the provision (benefit) for losses and LAE by net premiums earned. | ||||||||||||||||||||||||||||||||
(2) Expense ratio is calculated by dividing operating expenses after allocations by net premiums earned. | ||||||||||||||||||||||||||||||||
Year Ended December 31, 2023 | ||||||||||||||||||||||||||||||||
(In thousands) | Mortgage Insurance | Reinsurance | Total Reportable Segments | Corporate & Other | Consolidated | |||||||||||||||||||||||||||
| Revenues: | ||||||||||||||||||||||||||||||||
| Net premiums earned | $ | 812,501 | $ | 66,436 | $ | 878,937 | $ | 37,969 | $ | 916,906 | ||||||||||||||||||||||
| Net investment income | 142,186 | 17,682 | 159,868 | 26,271 | 186,139 | |||||||||||||||||||||||||||
Realized investment losses, net | (6,392) | — | (6,392) | (812) | (7,204) | |||||||||||||||||||||||||||
Loss from other invested assets | (490) | — | (490) | (10,628) | (11,118) | |||||||||||||||||||||||||||
| Other income | 7,208 | 13,484 | 20,692 | 4,344 | 25,036 | |||||||||||||||||||||||||||
| Total revenues | 955,013 | 97,602 | 1,052,615 | 57,144 | 1,109,759 | |||||||||||||||||||||||||||
| Losses and expenses: | ||||||||||||||||||||||||||||||||
Provision (benefit) for losses and LAE | 30,166 | (46) | 30,120 | 1,422 | 31,542 | |||||||||||||||||||||||||||
| Compensation and benefits | 65,003 | 3,993 | 68,996 | 45,902 | 114,898 | |||||||||||||||||||||||||||
| Premium and other taxes | 22,495 | 49 | 22,544 | (376) | 22,168 | |||||||||||||||||||||||||||
| Ceding commission | (21,757) | 431 | (21,326) | — | (21,326) | |||||||||||||||||||||||||||
| Other underwriting and operating expenses | 42,292 | 2,676 | 44,968 | 64,373 | 109,341 | |||||||||||||||||||||||||||
| Net operating expenses before allocations | 108,033 | 7,149 | 115,182 | 109,899 | 225,081 | |||||||||||||||||||||||||||
| Corporate expense allocations | 46,709 | 565 | 47,274 | (47,274) | — | |||||||||||||||||||||||||||
| Operating expenses after allocations | 154,742 | 7,714 | 162,456 | 62,625 | 225,081 | |||||||||||||||||||||||||||
| Interest expense | — | — | — | 30,137 | 30,137 | |||||||||||||||||||||||||||
| Income (loss) before income taxes | $ | 770,105 | $ | 89,934 | $ | 860,039 | $ | (37,040) | $ | 822,999 | ||||||||||||||||||||||
| Loss ratio (1) | 3.7 | % | (0.1) | % | 3.4 | % | ||||||||||||||||||||||||||
| Expense ratio (2) | 19.0 | 11.6 | 18.5 | |||||||||||||||||||||||||||||
| Combined ratio | 22.7 | % | 11.5 | % | 21.9 | % | ||||||||||||||||||||||||||
(1) Loss ratio is calculated by dividing the provision (benefit) for losses and LAE by net premiums earned. | ||||||||||||||||||||||||||||||||
(2) Expense ratio is calculated by dividing operating expenses after allocations by net premiums earned. | ||||||||||||||||||||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 18, 2026 | Showing above |
| 2024 | Feb 19, 2025 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.