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Segment Reporting
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
We have one reportable business segment: Mortgage Insurance. Our Mortgage Insurance segment offers private mortgage insurance and reinsurance for mortgages secured by residential properties located in the United States. We provide private mortgage insurance on residential first-lien mortgage loans (“U.S. mortgage insurance”) through our U.S. mortgage insurance subsidiary, Essent Guaranty, and also offer other credit risk management solutions, including contract underwriting, to our customers. Through our Bermuda-based reinsurance subsidiary, Essent Re, we reinsure U.S. mortgage risk primarily through the GSE credit risk transfer market (“GSE and other risk share”) and provide underwriting consulting services to third-party reinsurers. Our U.S. mortgage insurance business and GSE and other risk share business each represent operating segments that we have aggregated as one reportable segment based on their shared economic characteristics and the similarities between the two operating segments.
In addition, our "Corporate & Other" category is used to reconcile our reportable segment 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 segment 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 the Mortgage Insurance segment 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, 2024

(In thousands)
Mortgage Insurance
Corporate & Other
Consolidated
Revenues:   
Net premiums earned$924,676 $66,206 $990,882 
Net investment income183,341 38,729 222,070 
Realized investment (losses) gains, net(2,343)(7)(2,350)
Income (loss) from other invested assets7,171 204 7,375 
Other income14,152 10,775 24,927 
Total revenues1,126,997 115,907 1,242,904 
Losses and expenses:   
Provision (benefit) for losses and LAE
75,182 6,038 81,220 
Compensation and benefits
72,156 64,236 136,392 
Premium and other taxes
23,007 1,497 24,504 
Ceding commission
(24,248)— (24,248)
Other underwriting and operating expenses44,829 89,397 134,226 
Net operating expenses before allocations
115,744 155,130 270,874 
Corporate expense allocations
43,787 (43,787)— 
Operating expenses after allocations
159,531 111,343 270,874 
Interest expense
— 35,319 35,319 
Income (loss) before income taxes
$892,284 $(36,793)$855,491 
Loss ratio (1)
8.1 %
Expense ratio (2)
17.3 %
Combined ratio
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
Corporate & Other
Consolidated
Revenues:
Net premiums earned$878,937 $37,969 $916,906 
Net investment income159,868 26,271 186,139 
Realized investment (losses) gains, net(6,392)(812)(7,204)
Income (loss) from other invested assets(490)(10,628)(11,118)
Other income20,692 4,344 25,036 
Total revenues1,052,615 57,144 1,109,759 
Losses and expenses:
Provision (benefit) for losses and LAE30,120 1,422 31,542 
Compensation and benefits68,996 45,902 114,898 
Premium and other taxes22,544 (376)22,168 
Ceding commission(21,326)— (21,326)
Other underwriting and operating expenses44,968 64,373 109,341 
Net operating expenses before allocations115,182 109,899 225,081 
Corporate expense allocations47,274 (47,274)— 
Operating expenses after allocations162,456 62,625 225,081 
Interest expense— 30,137 30,137 
Income (loss) before income taxes$860,039 $(37,040)$822,999 
Loss ratio (1)
3.4 %
Expense ratio (2)
18.5 %
Combined ratio
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.
 
Year Ended December 31, 2022
Summary of Profit & Loss
(In thousands)
Mortgage Insurance
Corporate & Other
Consolidated
Revenues:   
Net premiums earned$842,527 $— $842,527 
Net investment income112,285 12,124 124,409 
Realized investment (losses) gains, net(1,829)(11,343)(13,172)
Income (loss) from other invested assets33,142 (4,466)28,676 
Other income18,384 — 18,384 
Total revenues1,004,509 (3,685)1,000,824 
Losses and expenses:   
Provision (benefit) for losses and LAE
(174,704)— (174,704)
Compensation and benefits
66,410 33,892 100,302 
Premium and other taxes
20,977 — 20,977 
Ceding commission
(17,516)— (17,516)
Other underwriting and operating expenses41,634 26,336 67,970 
Net operating expenses before allocations
111,505 60,228 171,733 
Corporate expense allocations
48,100 (48,100)— 
Operating expenses after allocations
159,605 12,128 171,733 
Interest expense
— 15,608 15,608 
Income (loss) before income tax expense
$1,019,608 $(31,421)$988,187 
Loss ratio (1)
(20.7)%
Expense ratio (2)
18.9 %
Combined ratio
(1.8)%
(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.