Essent Group Ltd. (ESNT): Business Model Canvas [Dec-2025 Updated]

You're digging into how a major mortgage insurer actually turns risk into reliable profit, and honestly, the key to this business is their disciplined 'Buy, Manage, and Distribute' approach. It's built on a rock-solid foundation: statutory capital of $3.7 billion for Essent Guaranty as of June 30, 2025, which underpins a massive $248.8 billion Insurance in Force portfolio. They use their proprietary EssentEDGE technology to price that mortgage credit risk, then efficiently offload a portion through reinsurance, all while generating income from their float-like the $177.3 million in net investment income they booked through September 30, 2025. This model lets them serve lenders needing to insure low down-payment loans while keeping their own risk exposure managed. Below, we map out the nine essential building blocks of this operation.

Essent Group Ltd. (ESNT) - Canvas Business Model: Key Partnerships

You're looking at how Essent Group Ltd. manages its massive credit risk exposure, and the partnerships are where the real action is. This isn't a solo operation; it's a carefully constructed web of counterparties that lets Essent Guaranty, Inc. write private mortgage insurance (PMI) nationwide.

Government-Sponsored Enterprises (GSEs) like Fannie Mae and Freddie Mac

Essent Guaranty, Inc. must maintain a strong relationship here because they are approved by Fannie Mae and Freddie Mac and licensed across all 50 states and the District of Columbia. Any change in the GSEs' requirements, whether through legislation or a shift in their business practices, represents a near-term risk you need to watch closely. The entire business hinges on meeting their eligibility requirements to keep that flow of new insurance written coming in.

Highly-rated third-party reinsurers for risk transfer programs

This is where Essent actively manages its tail risk, using its Bermuda-based subsidiary, Essent Reinsurance Ltd., as a key hub. As of March 31, 2025, a staggering 97% of Insurance in Force (IIF) was subject to reinsurance protection. Essent Re itself holds strong ratings, specifically A (Excellent) by AM Best and A- by S&P as of March 31, 2025, with a GAAP equity of $1.8 billion at that date. The risk transfer structure is layered, using several types of agreements:

• Excess of Loss (XOL): As of March 31, 2025, there were five active XOL deals, covering $1.1 billion in Risk In Force ceded to reinsurers. Further strengthening this, in the second quarter of 2025, Essent entered into two XOL transactions covering 20% of all eligible policies written in calendar years 2025 and 2026, effective July 1st of each year.
• Quota Share (QS): As of March 31, 2025, five active QS programs were in place, ceding $9.0 billion in Risk In Force. In February 2025, Essent entered into two forward quota share transactions covering 25% of the risk of all eligible policies written in 2025 and 2026. Also, in January 2025, a QS agreement was signed covering 25% of all eligible new insurance written for 2026.

Credit quality on the counterparty side is improving; Moody's upgraded Essent Guaranty, Inc. to A2 from A3 on August 6, 2025.

Major national and regional mortgage lending institutions (over 1,000 nationwide)

Essent Group Ltd. provides credit protection to lenders, allowing them to offer more financing. While the exact count of over 1,000 nationwide isn't in the latest filings, the title insurance platform, Essent Title Insurance, Inc., is strategically positioned to target small to mid-sized lenders. The core MI business relies on a broad base of lender partners to generate new business. For context, Essent's total Insurance in Force (IIF) as of September 30, 2025, stood at $248.8 billion.

Network of title insurance agents for Essent Title Insurance

Essent Title Insurance, Inc. uses a network of title insurance agents to issue its products, leveraging acquisitions to build this platform. Essent paid $100 million to acquire Agents National Title and Boston National Title. The acquired entities bring licensing across many states; Boston National Title was licensed in 40 states plus D.C., and Agents National Title was licensed in 44 states. As of September 2025, the Essent Title Insurance entity reported annual revenue of $7.5 million.

Capital markets investors for Insurance-Linked Notes (ILN)

Capital markets investors are a key source of private capital for risk transfer via Insurance-Linked Notes (ILN) issued through Radnor Re. As of March 31, 2025, Essent had executed ten (10) ILN issuances since 2018. At that same date, there were five active ILN deals, with $342 million in Risk In Force remaining with these investors. This partnership type is critical for diversifying risk away from traditional reinsurance panels.

Here's a quick look at the scale of the ILN and Reinsurance risk transfer as of March 31, 2025:

Partnership Type	Number of Active Deals	Risk In Force (RIF)
Insurance-Linked Notes (ILN)	5	$342 million
Excess of Loss (XOL) Reinsurance	5	$1.1 billion
Quota Share (QS) Reinsurance	5	$9.0 billion

Finance: draft 13-week cash view by Friday.

Essent Group Ltd. (ESNT) - Canvas Business Model: Key Activities

You're looking at the core engine room of Essent Group Ltd., the activities that actually generate and protect the capital. It's about taking risk, managing that risk, investing the resulting float, and returning capital to you, the shareholder.

Underwriting and pricing mortgage credit risk using EssentEDGE

The primary activity is underwriting mortgage credit risk, which is refined by the proprietary EssentEDGE platform. This platform uses cloud-based machine learning to blend proprietary risk metrics with traditional credit factors for refined pricing. The scale of the business being underwritten is substantial, as shown by the flow of new business and the total book size.

Key metrics reflecting this activity as of late 2025 include:

• U.S. Mortgage Insurance in force as of September 30, 2025, stood at $248.8 billion.
• New insurance written for the first quarter of 2025 was $9.9 billion.
• The portfolio persistency rate remained strong at 86% for the third quarter of 2025.
• The default rate on the U.S. Mortgage Insurance portfolio at September 30, 2025, was 2.29%.
• Mortgage Insurance net premium earned for the third quarter of 2025 was reported as $232 million by one source, and $246.3 million by another.

Programmatic reinsurance execution to distribute risk

Essent Group Ltd. actively distributes risk through programmatic reinsurance, leveraging its subsidiary, Essent Reinsurance Ltd. This keeps the risk exposure manageable and accesses third-party capital. The reinsurance structure is quite comprehensive across the in-force book.

Here's a look at the reinsurance structure and recent transactions:

Reinsurance Metric	Value/Detail	Date/Period
% IIF With Reinsurance Protection	97%	As of March 31, 2025
Affiliate Quota Share Net Risk In Force	$21.3 billion	As of March 31, 2025
Third Party Reinsurance Risk In Force	$2.2 billion	As of March 31, 2025
Quota Share Coverage on New Business	25% of risk for 2025 and 2026	Agreements entered in Q1 2025
Excess of Loss Coverage on New Business	20% of risk for 2025 and 2026	Agreements entered in April 2025

Essent Reinsurance Ltd.'s GAAP equity was $1.8 billion at March 31, 2025. That's a solid capital base supporting these risk transfer activities.

Managing a large investment portfolio (float) for income generation

The premiums collected, net of claims and reinsurance costs, form the investment portfolio, or float, which Essent Group Ltd. manages for income. This is a significant component of the overall earnings picture. You see the direct impact in the quarterly investment income figures.

The investment portfolio activity shows:

• Total Investments as of June 30, 2025, amounted to $6.3 Billion.
• Net investment income for the first quarter of 2025 was $58.2 million.
• This Q1 2025 investment income represented a 12% increase compared to the first quarter of 2024.
• The annualized yield for investments available for sale was 3.8% for 1Q25.

Providing title insurance and settlement services

While mortgage insurance is the core, Essent Group Ltd. also engages in providing title insurance and settlement services through Essent Title Insurance, Inc. This activity helps diversify revenue, though it remains a smaller portion of the overall business.

The scale of this segment relative to the core business is clear: premiums earned from Essent Title Insurance were only about 7% of the total earned from the other business divisions, based on early 2025 context.

Capital management, including a $500 million share repurchase authorization

Capital management is a highly visible key activity, demonstrating management's confidence in the firm's cash flows and valuation. This involves returning capital via dividends and aggressively buying back stock.

The latest capital return actions include:

• A new $500 million share repurchase authorization approved in November 2025, valid through the end of 2027.
• Year-to-date through October 31, 2025, the company repurchased nearly 9 million shares for over $500 million.
• The Q3 2025 quarterly cash dividend declared was $0.31 per common share.

For context on the buyback pace, year-to-date through July 31, 2025, Essent repurchased 6.8 million common shares for $387 million under the existing authorization.

Finance: draft 13-week cash view by Friday.

Essent Group Ltd. (ESNT) - Canvas Business Model: Key Resources

You're looking at the core assets that make Essent Group Ltd. tick, the things they absolutely must own or control to make their business model work. For a mortgage insurer, this boils down to regulatory capital, the sheer volume of risk they manage, and the proprietary tech that helps them price that risk intelligently. It's all about having the financial muscle and the smarts to back up the promises made on every policy.

Financial Strength and Capital Base

The foundation of Essent Group Ltd.'s ability to pay claims rests on the capital held by its primary operating subsidiary, Essent Guaranty, Inc. This capital acts as the ultimate buffer against unexpected losses in the mortgage portfolio. You need to see these numbers to trust the long-tail risk management.

Here are the key financial capacity figures:

• Statutory capital of Essent Guaranty, Inc. as of June 30, 2025: $3.7 billion.
• Insurance in Force (IIF) portfolio as of September 30, 2025: $248.8 billion.
• The risk-to-capital ratio for Essent Guaranty as of September 30, 2025, stood at 8.9 to one.
• Excess available assets under the U.S. PMIERs (Private Mortgage Insurer Eligibility Requirements) at September 30, 2025, totaled $1.6 billion.

The quality of the balance sheet is reinforced by external validation through credit ratings. Moody's Ratings upgraded the insurance financial strength rating of Essent Guaranty, Inc. to A2 from A3 on August 6, 2025.

This strength is further supported by a robust reinsurance structure, which is a critical non-tangible resource for managing tail risk. As of June 30, 2025, 97% of the Insurance in Force (IIF) was subject to reinsurance protection.

Proprietary Technology and Intellectual Property

Essent Group Ltd. relies heavily on its technology to maintain a competitive edge in pricing and risk selection. This isn't just off-the-shelf software; it's a core asset.

The proprietary EssentEDGE risk-based pricing engine is central to their underwriting strategy. This next-generation platform uses machine learning technology at its core. It moves beyond simple rate cards by blending traditional credit factors with advanced analytics and sophisticated modeling to evaluate more than 400 unique credit factors in seconds. This capability allows Essent Group Ltd. to deliver MI pricing that more accurately reflects a borrower's specific credit profile, helping to shape the portfolio toward a desired risk and return profile.

Human Capital and Expertise

The sophisticated models and capital management strategies require deep institutional knowledge. The experienced underwriting and risk management teams are the people who build, maintain, and interpret the data flowing through EssentEDGE and manage the complex reinsurance programs.

Key personnel mentioned in regulatory filings as of September 30, 2025, include:

Role	Name
CEO	Mark Anthony Casale
President	Christopher Gerard Curran
SVP/CFO	David Bruce Weinstock
SVP/CLO/Secretary	Mary Lourdes Gibbons

The risk management function is also evidenced by the structure of their reinsurance agreements, including forward quota share transactions covering 25% of eligible new insurance written for 2025 and 2026, and excess-of-loss agreements covering 20% of eligible policies for the same period.

Essent Group Ltd. (ESNT) - Canvas Business Model: Value Propositions

You're looking at the core benefits Essent Group Ltd. delivers to its partners and the market, which is the engine of their business model. It's all about managing risk while keeping the housing market flowing.

Mitigating mortgage credit risk for lenders and investors

The primary value here is absorbing the potential loss when a mortgage goes bad. Essent Group Ltd. provides credit protection to lenders and mortgage investors by covering a portion of the unpaid principal balance of a mortgage and related expenses if a default occurs. This capital support is what lets lenders feel secure enough to extend credit.

The scale of this risk mitigation is substantial, as shown by the portfolio size. As of September 30, 2025, Essent Group Ltd. had $248.8 billion in insurance in force (IIF). This is up from $243.0 billion as of September 30, 2024. The company's net margin for the third quarter of 2025 was reported at 55.63%, indicating strong profitability from the risks they underwrite.

Facilitating homeownership for borrowers with low down payments (less than 20%)

By taking on the lender's risk, Essent Group Ltd. directly enables access to financing for borrowers who don't have a full 20% down payment saved up. This is a critical function in the U.S. housing finance industry. The volume of new business they are insuring shows this value proposition in action.

New insurance written for the third quarter of 2025 totaled $12.2 billion. For the first quarter of 2025, new insurance written was $9.9 billion. This activity supports the market, even if new volume slowed slightly from the $12.5 billion written in the second quarter of 2025.

Stable, cost-efficient risk transfer via programmatic reinsurance

Essent Group Ltd. doesn't hold all this risk itself; they use a 'Buy, Manage & Distribute' model that relies heavily on programmatic reinsurance to keep their capital structure efficient and stable. This is how they manage franchise volatility, especially during economic downturns. They transfer a significant portion of their exposure to highly rated third-party reinsurers.

The effectiveness of this strategy is clear in the coverage metrics. As of March 31, 2025, 97% of the Insurance in Force (IIF) was subject to reinsurance protection. This is a slight increase from the 96% reported as of September 30, 2024. The amount of risk ceded via quota share treaties was substantial; as of March 31, 2025, $9.0 billion of Risk in Force (RIF) had been ceded.

Here's a quick look at the structure of that risk transfer as of the first quarter of 2025:

Risk Transfer Mechanism	Amount / Coverage	Date Reference
IIF Subject to Reinsurance Protection	97%	March 31, 2025
RIF Ceded via Quota Share Treaties	$9.0 billion	March 31, 2025
ILN/XOL Reinsurance Coverage Access	$1.5 billion	March 31, 2025
Quota Share Coverage on 2025/2026 New Business	25%	Q1 2025 Agreements

Comprehensive product suite: MI, reinsurance, and title services

Essent Group Ltd. offers more than just primary mortgage insurance (PMI). Their full suite provides multiple touchpoints for risk management within the housing finance ecosystem. They use their three primary operating companies to deliver this breadth of service. If onboarding takes 14+ days, churn risk rises, but a full suite helps lock in partners.

The offerings include:

• Private mortgage insurance (PMI) for lenders.
• Reinsurance, including through Essent Reinsurance Ltd..
• Title insurance and settlement services via Essent Title Insurance, Inc..
• Contract underwriting and IT services.

The title insurance segment, while smaller, diversifies the revenue base; premiums earned from Essent Title Insurance were about 7% of the total earned from other business divisions at the end of 2024.

Best-in-class customer service and quick policy delivery

Essent Group Ltd. aims to be a trusted, best-in-class partner to the housing finance industry. This commitment is reflected in how their reports are received by users, suggesting efficiency in their interactions, which is key for lenders needing quick policy turnaround.

The company provides customer support-related services as part of its operations. Based on user feedback aggregated on one platform, Essent Group Ltd. reports have an aggregate usefulness score of 4.8 / 5.0 based on 107 reviews. This suggests a high degree of satisfaction with the information and service they provide to their partners.

Finance: draft 13-week cash view by Friday.

Essent Group Ltd. (ESNT) - Canvas Business Model: Customer Relationships

You're looking at how Essent Group Ltd. keeps its lender partners and the broader housing finance industry engaged. The relationship focus is on being a trusted partner, which shows up in how they manage risk and service delivery.

Dedicated account management and field organization support

Essent Group Ltd. provides customer support-related services alongside its core insurance offerings. The company also offers information technology maintenance and development services. The structure supports the ongoing service needs of its partners.

Long-term, collaborative relationships with lender partners

The relationships with lender partners are heavily supported by risk-sharing mechanisms, which solidify long-term collaboration. For instance, Essent entered into quota share reinsurance agreements in January 2025 covering 25% of all eligible new insurance written for calendar years 2025 and 2026. Also, in April 2025, two excess of loss transactions were entered into, providing coverage on 20% of all eligible policies written in 2025 and 2026, effective July 1st of each year. The overall mortgage insurance portfolio in force as of September 30, 2025, stood at $248.8 billion. The persistency rate, a key indicator of ongoing customer satisfaction, was reported at 85.7% at the end of Q4 2025, down from 86.6% in Q3 2025. The weighted average FICO for the insurance in force portfolio was seven forty six as of June 30, 2025.

The nature of these relationships can be seen in the scale of business and risk mitigation:

• Insurance in Force (IIF) as of March 31, 2025: $244.7 billion.
• New Insurance Written (NIW) for Q1 2025: $9.9 billion.
• Mortgage Insurance Combined Ratio for Q3 2025: 33.9%.
• Portfolio Default Rate as of September 30, 2025: 2.29%.

Automated, self-service tools for rate quoting and policy ordering

Essent Group Ltd. supports its partners with tools designed for efficiency in the origination process. While specific usage metrics for automated rate quoting tools aren't public, the focus on efficiency is implied by the overall business model serving the U.S. housing finance industry.

Advisory and contract underwriting services for customers

Essent Group Ltd. explicitly provides contract underwriting services. Furthermore, Essent Reinsurance Ltd. offers underwriting and surveillance services to reinsurers writing mortgage risk. The title insurance segment, Essent Title Insurance, Inc., contributes premiums that represent about 7% of the total premiums earned across other business divisions.

The relationship with the investment community, another critical stakeholder group, is managed through capital deployment:

Metric	Value/Amount	Period/Date
Book Value Per Share Growth (Annualized)	12%	Last five years through Q2 2025
Book Value Per Share (Q4 2024)	$53.36	End of Q4 2024
Book Value Per Share Growth (Annualized)	14.4%	Last two years through Q3 2025
Shares Repurchased YTD	8.7 million shares	Through October 31, 2025
Share Repurchase Cost YTD	$501 million	Through October 31, 2025
Quarterly Dividend Per Share	$0.31	Q3 2025

The company also has a new share repurchase authorization of $500 million approved through 2027.

Essent Group Ltd. (ESNT) - Canvas Business Model: Channels

Direct integration with financial institutions' Loan Origination Systems (LOS)

This channel relies on seamless technical connections to process private mortgage insurance (PMI) requests directly within the lender's workflow. The scale of this activity is reflected in the overall mortgage insurance in force (IIF) managed by Essent Guaranty, Inc. As of September 30, 2025, the total Insurance in Force stood at $248.8 billion.

The core of the MI business, which flows through these direct LOS integrations, is measured by premiums. Net premiums earned for the third quarter of 2025 were $246.3 million, representing a 1% year-on-year decline.

Essent Online and web-based insurance application platforms

Essent Group Ltd. supports its direct and agent channels with digital tools. The company developed the proprietary credit engine EssentEDGE®, which is a cloud-based platform used for mortgage insurance pricing and risk management.

Additionally, the company offers the Essentials Learning Platform, a web-based resource for training and accessing tools. The volume processed through these digital interfaces contributes significantly to the overall MI production, with new insurance written in the third quarter of 2025 totaling $12.2 billion.

Essent Title's network of title insurance agents

The title insurance segment, operated through Essent Title Insurance, Inc., uses a network of independent agents to deliver services. This channel's scale is shown by its revenue contribution. For the first quarter of 2025, Essent Title Insurance generated revenue of $12.2 million.

The company provides these agents with innovative tools to streamline underwriting and accelerate closings.

Direct sales force targeting mortgage lenders and servicers

The direct sales force engages key mortgage lenders and servicers to secure primary MI business. This effort is crucial for maintaining and growing market share. In 2024, Essent Group Ltd.'s share of new insurance written was 15.4%, down from 17% in 2023.

The effectiveness of the sales channels is reflected in the quarterly new business volume:

• New insurance written in Q3 2025: $12.2 billion.
• New insurance written in Q2 2025: $12.5 billion.
• New insurance written in Q1 2025: $9.9 billion.

The overall financial performance tied to these channels in the latest reported quarter includes a trailing 12-month revenue of $1.29B as of September 30, 2025, and a Q3 2025 GAAP profit of $1.67 per diluted share.

The following table summarizes key financial and operational metrics relevant to the throughput across Essent Group Ltd.'s channels as of late 2025:

Metric	Value	Period End Date	Channel Relevance
Trailing 12-Month Revenue	$1.29B	September 30, 2025	Overall Business Volume
Insurance in Force (IIF)	$248.8 billion	September 30, 2025	Direct LOS Integration Scale
New Insurance Written (NIW)	$12.2 billion	Q3 2025	Direct Sales Force Effectiveness
Net Premiums Earned	$246.3 million	Q3 2025	Web-Based/Digital Platform Throughput
Essent Title Revenue	$12.2 million	Q1 2025	Title Agent Network Scale
Book Value Per Share	$58.86	September 30, 2025	Underlying Financial Strength

The combined ratio across the mortgage insurance segment for the third quarter of 2025 was 33.9%, showing underwriting efficiency across the policies generated via these distribution methods.

Essent Group Ltd. (ESNT) - Canvas Business Model: Customer Segments

The customer segments for Essent Group Ltd. are defined by the entities that directly purchase or benefit from its Private Mortgage Insurance (PMI), reinsurance, and title services.

Mortgage Lenders (banks, credit unions, non-bank originators)

Mortgage Lenders are the direct purchasers of Private Mortgage Insurance from Essent Guaranty, Inc. This insurance is critical for them to originate home loans where the borrower's down payment is less than 20 percent, enabling compliance with secondary market requirements.

Mortgage Investors (GSEs and private capital markets)

Mortgage Investors, particularly the Government-Sponsored Enterprises (GSEs) like Fannie Mae and Freddie Mac, are a primary driver for Essent Group Ltd.'s business. The federal charters of the GSEs require that mortgages purchased exceeding 80 percent Loan-to-Value (LTV) must have approved mortgage insurance protection. Essent Group Ltd.'s Insurance in Force as of September 30, 2025, stood at $248.8 billion. New insurance written for the third quarter of 2025 totaled $12.2 billion.

Third-Party Reinsurers seeking mortgage credit risk exposure

Essent Reinsurance Ltd. actively engages with highly rated third-party reinsurers to distribute credit risk. This is a key part of Essent Group Ltd.'s strategy to manage its capital position. Specific arrangements in 2025 included:

• Agreements entered into in January 2025 covering 25 percent of the risk of all eligible policies written by Essent Guaranty, Inc. in calendar years 2025 and 2026.
• Two excess of loss transactions entered into in April 2025 providing coverage on 20 percent of all eligible new insurance written for calendar years 2025 and 2026.
• Essent Re is an active participant in GSE and other risk share business with $2.2 billion Risk In Force.

Homebuyers (indirectly, those requiring Private Mortgage Insurance)

While not a direct customer paying Essent Group Ltd. for services, homebuyers requiring PMI are the ultimate beneficiaries of the product, as the insurance allows them access to financing with lower down payments. Industry-wide, approximately 80M U.S. households have a mortgage, with approximately $1.5 Trillion of residential debt insured by Private MI as of August 2025.

The relationship between Essent Group Ltd. and its primary customer groups can be summarized by the flow of risk and capital:

Customer Segment	Primary Interaction/Metric	Associated 2025 Financial/Statistical Data
Mortgage Lenders	Origination of low down payment loans	New insurance written in Q3 2025: $12.2 billion
Mortgage Investors (GSEs)	Requirement for MI on high LTV loans	Insurance in Force as of September 30, 2025: $248.8 billion
Third-Party Reinsurers	Risk transfer agreements	Quota Share reinsurance covering 25 percent of 2025 new business risk
Homebuyers (Indirect)	Access to mortgages with <20% down payment	Total U.S. Mortgaged Households (Industry): ~80M

Essent Group Ltd. (ESNT) - Canvas Business Model: Cost Structure

You're looking at the cost side of Essent Group Ltd.'s business as of late 2025, specifically drawing from the reported figures through the third quarter of 2025. For an insurance and reinsurance operation, the costs are heavily weighted toward potential claims and managing the risk portfolio.

Significant provision for losses and loss adjustment expenses

The provision for losses and loss adjustment expenses (LAE) is a direct reflection of current and expected claim activity. For the third quarter ended September 30, 2025, this cost was significant, driven by seasonal default increases.

• Q3 2025 Provision for losses and LAE: $\$44.922$ million.
• Q2 2025 Provision for losses and LAE: $\$17.055$ million.
• Provision for losses and LAE for the nine months ended September 30, 2025, totaled approximately $\$93.264$ million (calculated from Q1, Q2, and Q3 2025 figures).

Reinsurance costs for risk transfer transactions

Essent Group Ltd. actively uses reinsurance to manage its risk exposure, which involves direct costs like ceding commissions and the financial impact of derivative agreements. The cost structure here is dynamic due to ongoing risk transfer deals.

Reinsurance Cost Component (Q1 2025)	Amount (USD Millions)
Ceded Premiums Written	$(\mathbf{\$34.123})$
Net Favorable Change in Fair Value of Embedded Derivatives (Q1 2025)	$(\mathbf{\$0.150})$

Note that ceded premiums are a reduction in the net premium earned, effectively an offset to revenue, but represent the cost of transferring risk. The company also entered quota share agreements in Q1 2025 and excess of loss transactions in April 2025 to cover portions of the 2025 and 2026 new insurance written.

Technology and data analytics investment for EssentEDGE

While Essent Group Ltd. emphasizes its investment in the proprietary credit engine, EssentEDGE®, for underwriting and risk management, specific dollar amounts allocated solely to this technology investment are not explicitly broken out in the standard quarterly expense line items. This investment is embedded within the broader operating expenses.

General operating expenses (salaries, IT, customer support)

These expenses cover the day-to-day running of the business, including personnel costs, which are significant for a service-oriented financial firm. We can look at the components of underwriting and operating expenses for Q3 2025.

• Q3 2025 Compensation and benefits: $\$29.176$ million.
• Q3 2025 Other underwriting and operating expenses: $\$31.287$ million.
• For the first nine months of 2025, Total other underwriting and operating expenses were approximately $\$193.387$ million (sum of Q1, Q2, and Q3 figures).

The Mortgage Insurance segment's expense ratio for Q3 2025 was $14.8\%$ of net premiums earned and settlement services revenue.

Capital return costs (dividends and share repurchases)

Essent Group Ltd. maintains a consistent approach to returning capital to shareholders through dividends and aggressive share repurchases, which is a major cash outflow category.

Capital Return Activity	Amount / Rate
Q3 2025 Declared Quarterly Dividend	$\$0.31$ per common share
Share Repurchases Year-to-Date (through October 31, 2025)	$\$501$ million
Share Repurchases in Q2 2025 (approximate)	$\$328.5$ million
New Share Repurchase Authorization (Approved November 2025)	$\$500$ million (through year-end 2027)

The company's commitment to capital return is evident in the new authorization, which follows significant repurchases earlier in 2025.

Essent Group Ltd. (ESNT) - Canvas Business Model: Revenue Streams

When you look at Essent Group Ltd.'s revenue streams, you're seeing the core of a mortgage insurance powerhouse, supplemented by smart capital deployment. The primary engine, as expected for an insurer, is the premium collected on policies written.

For the third quarter ending September 30, 2025, the Net premiums earned came in at $246.3 million. That's the bread and butter of the operation. Looking at the longer nine-month period ending the same date, the cumulative Net premiums earned reached approximately $740.989 million (reported as $740,989 thousand in filings). This core insurance business remains the most significant component of Essent Group Ltd.'s top line.

The second major component, which has been particularly strong given the recent rate environment, is investment income. For the nine months ended September 30, 2025, Net investment income was reported at $177.3 million. Just for the third quarter alone, that income stream contributed $59.8 million. This income comes from investing the float-the premiums collected before claims are paid out-in assets like fixed-income securities.

To give you the full picture of the top line as of that date, the Trailing Twelve Month (TTM) revenue was $1.29 billion as of September 30, 2025. For context, the total revenue for the third quarter of 2025 was $311.83 million, and the revenue for the nine months ending September 30, 2025, was $948.53 million.

Here's a quick summary of those key financial figures:

Metric	Period	Amount
Net Premiums Earned	Q3 2025	$246.3 million
Net Investment Income	9 Months Ended Sep 30, 2025	$177.3 million
Total Revenue	Q3 2025	$311.83 million
Trailing Twelve Month Revenue	As of Sep 30, 2025	$1.29 billion

Beyond the primary insurance and investment income, Essent Group Ltd. diversifies its revenue through its other operating subsidiaries. These represent the third and fourth key streams, though specific 2025 dollar amounts for these segments aren't as prominently broken out in the headline results as premiums and investment income.

The other revenue-generating activities include:

• Reinsurance premiums from third-party business, generated through its Bermuda-based subsidiary, Essent Reinsurance Ltd.
• Title insurance and settlement services fees, handled by Essent Title Insurance, Inc.

Honestly, while the reinsurance and title fee income are important for diversification, the historical data suggests that Net premiums earned has consistently made up the vast majority of the total revenue, often accounting for over 80% of the top line in prior periods. So, the health of the core mortgage insurance business dictates the overall revenue picture.

Finance: draft 13-week cash view by Friday.