XML 32 R22.htm IDEA: XBRL DOCUMENT
v3.25.3

Segment Reporting | 9 Months Ended
--- | ---
Sep. 30, 2025
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 mortgage risk share”) and provide underwriting consulting services to third-party reinsurers. Our U.S. mortgage insurance business and GSE and other mortgage 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 and 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. As of September 30, 2025 and December 31, 2024, all goodwill is assigned to our Title operating segment, which is included in our Corporate & Other category. Goodwill was $48.8 million at both September 30, 2025 and December 31, 2024. Goodwill decreased by $1.2 million during the nine months ended September 30, 2024 as a result of measurement period adjustments. Segment Information: Profit & Loss The following table reconciles the components of reportable segment profit and loss to consolidated profit and loss for the periods presented. 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 in our Form 10-K. We do not have inter-segment transactions.
|  | Three Months Ended September 30, 2025 |  | Three Months Ended September 30, 2024
(In thousands) |  | Mortgage Insurance |  | Corporate & Other |  | Consolidated |  | Mortgage Insurance |  | Corporate & Other |  | Consolidated
Revenues: |  |  |  |  |  |  |  |  |  |  |  |
Net premiums earned |  | $ | 231,628 |  |  | $ | 14,704 |  |  | $ | 246,332 |  |  | $ | 231,249 |  |  | $ | 17,687 |  |  | $ | 248,936 |
Net investment income |  | 49,568 |  |  | 10,227 |  |  | 59,795 |  |  | 46,241 |  |  | 11,099 |  |  | 57,340 |
Realized investment gains (losses), net |  | (427) |  |  | 2 |  |  | (425) |  |  | 73 |  |  | (5) |  |  | 68 |
Income (loss) from other invested assets |  | (605) |  |  | 2,375 |  |  | 1,770 |  |  | 3,132 |  |  | (312) |  |  | 2,820 |
Other income |  | 2,391 |  |  | 1,967 |  |  | 4,358 |  |  | 3,706 |  |  | 3,708 |  |  | 7,414 |
Total revenues |  | 282,555 |  |  | 29,275 |  |  | 311,830 |  |  | 284,401 |  |  | 32,177 |  |  | 316,578 |
Losses and expenses: |  |  |  |  |  |  |  |  |  |  |  |
Provision for losses and LAE |  | 44,177 |  |  | 745 |  |  | 44,922 |  |  | 29,816 |  |  | 850 |  |  | 30,666 |
Compensation and benefits |  | 16,568 |  |  | 12,608 |  |  | 29,176 |  |  | 17,656 |  |  | 16,136 |  |  | 33,792 |
Premium and other taxes |  | 6,018 |  |  | (88) |  |  | 5,930 |  |  | 5,863 |  |  | 432 |  |  | 6,295 |
Ceding commission |  | (6,942) |  |  | 47 |  |  | (6,895) |  |  | (6,433) |  |  | — |  |  | (6,433) |
Other underwriting and operating expenses |  | 10,949 |  |  | 20,338 |  |  | 31,287 |  |  | 10,798 |  |  | 22,429 |  |  | 33,227 |
Net operating expenses before allocations |  | 26,593 |  |  | 32,905 |  |  | 59,498 |  |  | 27,884 |  |  | 38,997 |  |  | 66,881 |
Corporate expense allocations |  | 7,583 |  |  | (7,583) |  |  | — |  |  | 10,672 |  |  | (10,672) |  |  | — |
Operating expenses after allocations |  | 34,176 |  |  | 25,322 |  |  | 59,498 |  |  | 38,556 |  |  | 28,325 |  |  | 66,881 |
Interest expense |  | — |  |  | 8,251 |  |  | 8,251 |  |  | — |  |  | 11,457 |  |  | 11,457 |
Income (loss) before income taxes |  | $ | 204,202 |  |  | $ | (5,043) |  |  | $ | 199,159 |  |  | $ | 216,029 |  |  | $ | (8,455) |  |  | $ | 207,574 |
Loss ratio (1) |  | 19.1 | % |  |  |  |  |  | 12.9 | % |  |  |  |
Expense ratio (2) |  | 14.8 | % |  |  |  |  |  | 16.7 | % |  |  |  |
Combined ratio |  | 33.9 | % |  |  |  |  |  | 29.6 | % |  |  |  |
(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. |  |  |  |
|  | Nine Months Ended September 30, 2025 |  | Nine Months Ended September 30, 2024
(In thousands) |  | Mortgage Insurance |  | Corporate & Other |  | Consolidated |  | Mortgage Insurance |  | Corporate & Other |  | Consolidated
Revenues: |  |  |  |  |  |  |  |  |  |  |  |
Net premiums earned |  | $ | 699,165 |  |  | $ | 41,824 |  |  | $ | 740,989 |  |  | $ | 696,813 |  |  | $ | 49,604 |  |  | $ | 746,417 |
Net investment income |  | 146,090 |  |  | 31,204 |  |  | 177,294 |  |  | 137,150 |  |  | 28,361 |  |  | 165,511 |
Realized investment losses, net |  | (652) |  |  | (83) |  |  | (735) |  |  | (2,223) |  |  | (13) |  |  | (2,236) |
Income (loss) from other invested assets |  | 6,223 |  |  | 7,421 |  |  | 13,644 |  |  | 4,246 |  |  | (3,760) |  |  | 486 |
Other income |  | 10,415 |  |  | 6,924 |  |  | 17,339 |  |  | 10,268 |  |  | 7,431 |  |  | 17,699 |
Total revenues |  | 861,241 |  |  | 87,290 |  |  | 948,531 |  |  | 846,254 |  |  | 81,623 |  |  | 927,877 |
Losses and expenses: |  |  |  |  |  |  |  |  |  |  |  |
Provision for losses and LAE |  | 90,258 |  |  | 3,006 |  |  | 93,264 |  |  | 37,928 |  |  | 2,317 |  |  | 40,245 |
Compensation and benefits |  | 53,251 |  |  | 46,336 |  |  | 99,587 |  |  | 54,119 |  |  | 47,746 |  |  | 101,865 |
Premium and other taxes |  | 17,592 |  |  | 1,736 |  |  | 19,328 |  |  | 17,039 |  |  | 928 |  |  | 17,967 |
Ceding commission |  | (20,360) |  |  | 47 |  |  | (20,313) |  |  | (17,701) |  |  | — |  |  | (17,701) |
Other underwriting and operating expenses |  | 33,714 |  |  | 61,071 |  |  | 94,785 |  |  | 33,050 |  |  | 64,742 |  |  | 97,792 |
Net operating expenses before allocations |  | 84,197 |  |  | 109,190 |  |  | 193,387 |  |  | 86,507 |  |  | 113,416 |  |  | 199,923 |
Corporate expense allocations |  | 29,838 |  |  | (29,838) |  |  | — |  |  | 33,130 |  |  | (33,130) |  |  | — |
Operating expenses after allocations |  | 114,035 |  |  | 79,352 |  |  | 193,387 |  |  | 119,637 |  |  | 80,286 |  |  | 199,923 |
Interest expense |  | — |  |  | 24,547 |  |  | 24,547 |  |  | — |  |  | 27,168 |  |  | 27,168 |
Income (loss) before income taxes |  | $ | 656,948 |  |  | $ | (19,615) |  |  | $ | 637,333 |  |  | $ | 688,689 |  |  | $ | (28,148) |  |  | $ | 660,541 |
Loss ratio (1) |  | 12.9 | % |  |  |  |  |  | 5.4 | % |  |  |  |
Expense ratio (2) |  | 16.3 | % |  |  |  |  |  | 17.2 | % |  |  |  |
Combined ratio |  | 29.2 | % |  |  |  |  |  | 22.6 | % |  |  |  |
(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. |  |  |  |

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-31 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-15 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-42 Reference 7: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 48 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-48 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 270 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (i) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482964/270-10-50-1 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (ee) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 Reference 11: http://fasb.org/us-gaap/role/ref/otherTransitionRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 Reference 12: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 54 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-54 Reference 13: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 47 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-47 Reference 14: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 54 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-54 Reference 15: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 47 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-47 Reference 16: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 54 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-54 Reference 17: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 47 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-47 Reference 18: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-22 Reference 19: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-34 Reference 20: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26C -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-26C Reference 21: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26B -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-26B Reference 22: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-40 Reference 23: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/280/tableOfContent Reference 24: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-26 Reference 25: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-41 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration