Essent Group (0U95) AI Stock Analysis

Company Guidance

Management's guidance and forward-looking metrics included: P&C reinsurance written premium of approximately $320 million for 2026 (roughly half to be earned this year) with that P&C activity expected to run at a combined ratio in the high‑90s; mortgage insurance premium yield guided to about 40 basis points for the year (Q2 average base premium 40 bps; average net premium 35 bps; Q2 MI premium earned $216M); Q3 common dividend of $0.35 per share and continued buybacks (year‑to‑date through July 31 repurchased nearly 6.0M shares for ≈$350M; Q2 repurchases 3.2M for $191M); holding company liquidity and capital optionality (consolidated cash & investments $6.6B; GAAP equity $5.7B; $1.1B cash/investments at holding companies; $500M undrawn revolver capacity; $500M senior notes outstanding; debt‑to‑capital 8%; access to $1.0B excess‑of‑loss reinsurance); Essent Guaranty statutory metrics and dividend capacity (statutory capital $3.7B; risk‑to‑capital 8.5:1; PMIERs sufficiency 172% with $1.5B excess available assets; $2.7B contingency reserves; as of July 1 can pay an additional $302M of ordinary dividends in 2026); portfolio and performance pointers that frame guidance (Insurance‑in‑Force ≈$250B with 12‑month persistency 84%; weighted average credit score 747; original weighted average LTV 93%; Q2 default rate 2.53%; Q2 net income $190M or $2.08 diluted; Q2 annualized aggregate investment yield 4.9%; other invested assets ≈$450M or ~7% of the portfolio; trailing 12‑month operating cash flow $834M).