XML 20 R10.htm IDEA: XBRL DOCUMENT v3.25.3
Investments
 9 Months Ended
Sep. 30, 2025
Investments, Debt and Equity Securities [Abstract]  
Investments Investments
 
Investments available for sale consist of the following:
September 30, 2025 (In thousands)Amortized
Cost		Unrealized
Gains		Unrealized
Losses		Fair
Value
U.S. Treasury securities$388,029 $1,890 $(7,128)$382,791 
U.S. agency mortgage-backed securities1,256,150 5,455 (82,914)1,178,691 
Municipal debt securities(1)646,318 4,757 (37,986)613,089 
Non-U.S. government securities71,725 20 (8,603)63,142 
Corporate debt securities (2)1,970,553 16,814 (56,447)1,930,920 
Residential and commercial mortgage securities488,453 1,095 (26,204)463,344 
Asset-backed securities821,935 3,815 (7,938)817,812 
Money market funds640,076 — — 640,076 
Total investments available for sale$6,283,239 $33,846 $(227,220)$6,089,865 
December 31, 2024 (In thousands)Amortized
Cost		Unrealized
Gains		Unrealized
Losses		Fair
Value
U.S. Treasury securities$561,853 $325 $(14,888)$547,290 
U.S. agency mortgage-backed securities1,249,259 42 (123,865)1,125,436 
Municipal debt securities (1)631,015 1,596 (49,110)583,501 
Non-U.S. government securities81,631 — (11,833)69,798 
Corporate debt securities (2)1,887,647 1,064 (105,665)1,783,046 
Residential and commercial mortgage securities519,613 527 (42,054)478,086 
Asset-backed securities642,395 601 (11,037)631,959 
Money market funds657,605 — — 657,605 
Total investments available for sale$6,231,018 $4,155 $(358,452)$5,876,721 

 September 30,December 31,
(1) The following table summarizes municipal debt securities as of :20252024
Special revenue bonds81.3%83.3%
General obligation bonds18.7 16.7 
Total100.0%100.0%

 September 30,December 31,
(2) The following table summarizes corporate debt securities as of :20252024
Financial41.9%41.8%
Consumer, non-cyclical16.5 15.1 
Industrial8.3 8.2 
Utilities8.2 8.7 
Technology6.5 6.4 
Consumer, cyclical6.0 6.3 
Communications5.0 5.7 
Energy4.9 5.1 
Basic Materials2.7 2.7 
Total100.0%100.0%
The amortized cost and fair value of investments available for sale at September 30, 2025, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Because most U.S. agency mortgage-backed securities, residential and commercial mortgage securities and asset-backed securities provide for periodic payments throughout their lives, they are listed below in separate categories.
 
(In thousands)Amortized
Cost		Fair
Value
U.S. Treasury securities:  
Due in 1 year$140,056 $137,943 
Due after 1 but within 5 years210,066 209,870 
Due after 5 but within 10 years23,405 22,195 
Due after 10 years14,502 12,783 
Subtotal388,029 382,791 
Municipal debt securities:  
Due in 1 year19,761 19,689 
Due after 1 but within 5 years90,903 89,416 
Due after 5 but within 10 years148,128 142,643 
Due after 10 years387,526 361,341 
Subtotal646,318 613,089 
Non-U.S. government securities:
Due in 1 year6,075 6,028 
Due after 1 but within 5 years25,922 25,520 
Due after 5 but within 10 years7,691 6,780 
Due after 10 years32,037 24,814 
Subtotal71,725 63,142 
Corporate debt securities:  
Due in 1 year150,218 149,673 
Due after 1 but within 5 years631,054 618,712 
Due after 5 but within 10 years998,984 996,383 
Due after 10 years190,297 166,152 
Subtotal1,970,553 1,930,920 
U.S. agency mortgage-backed securities1,256,150 1,178,691 
Residential and commercial mortgage securities488,453 463,344 
Asset-backed securities821,935 817,812 
Money market funds640,076 640,076 
Total investments available for sale$6,283,239 $6,089,865 

The components of realized investment (losses) gains, net on the condensed consolidated statements of comprehensive income were as follows:
 
 Three Months Ended September 30,Nine Months Ended September 30,
(In thousands)2025202420252024
Realized gross gains$40 $360 $59 $415 
Realized gross losses(425)(292)(754)(2,128)
Impairment loss(40)— (40)(523)
 
The fair value of investments available for sale in an unrealized loss position and the related unrealized losses for which no allowance for credit loss has been recorded were as follows:
 
 Less than 12 months12 months or moreTotal
September 30, 2025 (In thousands)Fair
Value		Gross
Unrealized
Losses		Fair
Value		Gross
Unrealized
Losses		Fair
Value		Gross
Unrealized
Losses
U.S. Treasury securities$15,373 $(97)$206,912 $(7,031)$222,285 $(7,128)
U.S. agency mortgage-backed securities122,399 (1,534)654,260 (81,380)776,659 (82,914)
Municipal debt securities111,110 (2,420)286,020 (35,566)397,130 (37,986)
Non-U.S. government securities— — 57,173 (8,603)57,173 (8,603)
Corporate debt securities152,570 (1,704)746,781 (54,743)899,351 (56,447)
Residential and commercial mortgage securities
42,064 (950)365,795 (25,254)407,859 (26,204)
Asset-backed securities103,130 (1,636)141,166 (6,302)244,296 (7,938)
Total$546,646 $(8,341)$2,458,107 $(218,879)$3,004,753 $(227,220)
 
 Less than 12 months12 months or moreTotal
December 31, 2024 (In thousands)Fair
Value		Gross
Unrealized
Losses		Fair
Value		Gross
Unrealized
Losses		Fair
Value		Gross
Unrealized
Losses
U.S. Treasury securities$141,789 $(1,620)$279,143 $(13,268)$420,932 $(14,888)
U.S. agency mortgage-backed securities476,695 (13,028)629,036 (110,837)1,105,731 (123,865)
Municipal debt securities204,810 (5,688)282,312 (43,422)487,122 (49,110)
Non-U.S. government securities4,146 (262)65,652 (11,571)69,798 (11,833)
Corporate debt securities898,449 (25,547)725,148 (80,118)1,623,597 (105,665)
Residential and commercial mortgage securities
39,931 (1,168)421,891 (40,886)461,822 (42,054)
Asset-backed securities188,475 (2,701)164,683 (8,336)353,158 (11,037)
Total$1,954,295 $(50,014)$2,567,865 $(308,438)$4,522,160 $(358,452)
 
At September 30, 2025 and December 31, 2024, we held 1,807 and 2,481 individual investment securities, respectively, that were in an unrealized loss position. We assess our intent to sell these securities and whether we will be required to sell these securities before the recovery of their amortized cost basis when determining whether to record an impairment on the securities in an unrealized loss position. In assessing whether the decline in the fair value at September 30, 2025 of any of these securities resulted from a credit loss or other factors, we made inquiries of our investment managers to determine that each issuer was current on its scheduled interest and principal payments. We reviewed the credit rating of these securities noting that approximately 99% of the securities at September 30, 2025 had investment-grade ratings. We concluded that gross unrealized losses noted above were primarily associated with the changes in interest rates subsequent to purchase rather than due to credit impairment. There was less than $40 thousand of impairments recorded in the three and nine months ended September 30, 2025 and $0.5 million recorded during the three and nine months ended September 30, 2024, due to our intent to sell securities in an unrealized loss position.

The Company's other invested assets at September 30, 2025 and December 31, 2024 totaled $370.1 million and $303.9 million, respectively. Other invested assets are principally comprised of limited partnership interests which are generally accounted for under the equity method or fair value using net asset value (or its equivalent) as a practical expedient. Our proportionate share of earnings or losses or changes in fair value are reported in income from other invested assets on the condensed consolidated statements of comprehensive income. For entities accounted for under the equity method that follow industry-specific guidance for investment companies, our proportionate share of earnings or losses includes changes in the fair value of the underlying assets of these entities. Due to the timing of receiving financial information from these partnerships, the results are generally reported on a one month or quarter lag.
Other invested assets that are accounted for at fair value using the net asset value (or its equivalent) as a practical expedient totaled $178.1 million as of September 30, 2025 and $171.7 million as of December 31, 2024. The majority of these investments were in limited partnerships invested primarily in real estate and technology. At September 30, 2025, maximum future funding commitments were $42.5 million. For limited partnership investments that have a contractual expiration date, we expect the liquidation of the underlying assets to occur over the next one to nine years. For certain of these investments, the Company does not have the contractual option to redeem but receives distributions based on the liquidation of the underlying assets. In addition, the Company generally does not have the ability to sell or transfer these investments without consent from the general partner of individual limited partnerships.

The fair value of investments deposited with insurance regulatory authorities to meet statutory requirements was $8.7 million at September 30, 2025 and $9.3 million at December 31, 2024. In connection with its insurance and reinsurance activities, Essent Re is required to maintain assets in trusts for the benefit of its contractual counterparties. The fair value of the investments on deposit in these trusts was $1.0 billion at September 30, 2025 and $983.5 million at December 31, 2024. Essent Guaranty is also required to maintain assets on deposit for the benefit of the sponsor of a fixed income investment commitment. The fair value of the assets on deposit was $5.1 million at September 30, 2025 and $9.3 million at December 31, 2024.

Net investment income consists of: 
 Three Months Ended September 30,Nine Months Ended September 30,
(In thousands)2025202420252024
Fixed maturities$54,940 $44,828 $162,372 $136,485 
Short-term investments6,540 13,786 20,088 32,759 
Gross investment income61,480 58,614 182,460 169,244 
Investment expenses(1,685)(1,274)(5,166)(3,733)
Net investment income$59,795 $57,340 $177,294 $165,511