ESNT 10-K & 10-Q changes, risk factors and insider trading

Our U.S. mortgage insurance business depends on our relationships with our largest lending customers. Our top ten customers generated 50.2%59.3% of our NIW during year ended December 31, 2024,2025, compared to 39.9%50.2% and 41.6%39.9% for the years ended December 31, 20232024 and 2022,2023, respectively. For the year ended December 31, 2024,2025, one customer represented more than 10% of our consolidated revenues. Maintaining our business relationships and business volumes with our largest lending customers remains critical to the success of our business.

We believe that, based upon our experience and industry data, claims incidence for mortgage insurance is generally highest in the third through sixth years after loan origination. Although the claims experience on NIW by us since we began to write coverage in 2010 has been relatively favorable to date, we expect incurred losses and claims to increase as a greater amount of this book of insurance reaches its anticipated period of highest claim frequency. As a result of the significant decrease in our persistency rate largely as a result of a high level of refinancings in 2020 and 2021 triggered by historically low interest rates precipitated by the economic impacts of the COVID-19 pandemic, approximately 91%93% of our aggregate insurance in force as of December 31, 20242025 corresponds to policies we have written since January 1, 2020. The actual default rate and the average reserve per default that we experience as our portfolio matures is difficult to predict, particularly in light of the consequences of the COVID-19 pandemic, and is dependent on the specific characteristics of our current in-force book (including the credit score of the borrower, the loan-to-value ratio of the mortgage, geographic concentrations, etc.), as well as the profile of new business we write in the future. In addition, the default rate and the average reserve per default will be affected by future macroeconomic factors such as housing prices, interest rates and employment as well as the impacts of the COVID-19 pandemic. Incurred losses and claims could be further increased in the future in the event of general economic weakness or decreases in housing values. An increase in the number or size of claims, compared to what we anticipate, could adversely affect our results of operations or financial conditions.

As part of our overall investment strategy, we also allocate a relatively small percentage of our portfolio to limited partnership investments in real estate, consumer credit and traditional venture capital and private equity investments. Fluctuations in the fair value of these entities may increase the volatility of our reported results of operations.

We establish reserves for our mortgage-related insurance and reinsurance businesses using estimated claim rates and claim amounts in estimating the ultimate loss on delinquent loans. The estimated claim rates and claim amounts represent our best estimates of what we will actually pay on the loans in default as of the reserve date. Our mortgage insurance master policy provides us the right to rescind or deny claims under certain circumstances. Our reserve calculations do not currently include any estimate for claim rescissions, but we may be required to do so at some later time to ensure that our reserves meet the requirements of accounting principles generally accepted in the United States.

The establishment of loss reserves for mortgage-related risk is subject to inherent uncertainty and requires judgment by management. Our estimates of claim rates and claim sizes will be strongly influenced by prevailing economic conditions, such as current rates or trends in unemployment, housing price appreciation and/or interest rates, and our best judgments as to the future values or trends of these macroeconomic factors. If prevailing economic conditions deteriorate suddenly and/or unexpectedly, our estimates of loss reserves could be materially understated, which may adversely impact our financial condition and operating results. Changes to our estimates could result in a material impact to our results of operations, even in a stable economic environment, and there can be no assurance that actual claims paid by us will not be substantially different than our loss reserves.

The U.S. mortgage insurance industry faces litigation risk in the ordinary course of operations, including the risk of class action lawsuits and administrative enforcement by Federal and state agencies. Consumers are bringing a growing number of lawsuits against home mortgage lenders and settlement service providers. Mortgage insurers have been involved in class action litigation alleging violations of Section 8 of the Real Estate Settlement Procedures Act of 1974, or RESPA, and the Fair Credit Reporting Act, or FCRA. Section 8 of RESPA generally precludes mortgage insurers from paying referral fees to mortgage lenders for the referral of mortgage insurance business. This limitation also can prohibit providing services or products to mortgage lenders free of charge, charging fees for services that are lower than their reasonable or fair market value and paying fees for services that mortgage lenders provide that are higher than their reasonable or fair market value, in exchange for the referral of mortgage insurance business services. Violations of the referral fee limitations of RESPA may be enforced by the CFPB, HUD, the Department of Justice, state attorneys general and state insurance commissioners, as well as by private litigants in class actions. In the past, a number of lawsuits have challenged the actions of private mortgage insurers under RESPA, alleging that the insurers have violated the referral fee prohibition by entering into captive reinsurance arrangements or providing products or services to mortgage lenders at improperly reduced prices in return for the referral of mortgage insurance, including the provision of contract underwriting services. In addition to these private lawsuits, other private mortgage insurance companies have received civil investigative demands from, and entered into consent orders with, the CFPB as part of its investigation to determine whether mortgage lenders and mortgage insurance providers engaged in acts or practices in connection with their captive mortgage insurance arrangements in violation of RESPA, the Consumer Financial Protection Act and the Dodd-Frank Act. The CFPB’s ruling in its enforcement order against PHH Corporation for alleged RESPA violations stemming from captive mortgage insurance arrangements was overturned on appeal by a panel of the U.S. Court of Appeals for the D.C. Circuit, a decision affirmed in January 2018 by the D.C. Circuit en banc. Although we did not participate in the practices that were the subject of the CFPB consent orders or the PHH case, the private mortgage insurance industry and our insurance subsidiaries are subject to substantial Federal and state regulation. Increased Federal or state regulatory scrutiny could lead to new legal precedents, new regulations or new practices, or regulatory actions or investigations, which could adversely affect our financial condition and operating results.

Essent Group Ltd. and Essent Re and its subsidiaries intend to operate their business in a manner that will not cause them to be treated as engaged in a trade or business in the United States and, thus, will not be required to pay U.S. Federal income and branch profits taxes. However, our foreign subsidiaries are or could become subject to U.S. excise taxes on (re)insurance premium, and on stock repurchases,premium as well as U.S. withholding taxes on certain U.S. source investment income, and dividends paid from U.S. subsidiaries from U.S. earnings and profits. Because there is uncertainty as to the activities which constitute being engaged in a trade or business in the United States, there can be no assurances that the U.S. Internal Revenue Service (the "IRS") will not contend successfully that Essent Group Ltd. or its non-U.S. subsidiaries are engaged in a trade or business in the United States. In addition, Section 845 of the Internal Revenue Code of 1986, as amended (the "Code"), was amended in 2004 to permit the IRS to reallocate, recharacterize or adjust items of income, deduction or certain other items related to a reinsurance contract between related parties to reflect the proper "amount, source or character" for each item (in contrast to prior law, which only covered "source and character"). Any U.S. Federal income and branch profits taxes levied upon earnings from our Bermuda operations could materially adversely affect our shareholders' equity and earnings.

If the RPII (determined on a gross basis) of Essent Re were to equal or exceed 20% of Essent Re's gross insurance income in any taxable year and direct or indirect policyholders (and persons related to those policyholders) own directly or indirectly through entities 20% or more of the voting power or value of the Company, then a U.S. Person who owns any shares of Essent Re (directly or indirectly through non-U.S. entities) on the last day of the taxable year on which it is an RPII CFC would be required to include in its income for U.S. Federal income tax purposes such person's pro rata share of Essent Re's RPII for the entire taxable year, determined as if such RPII were distributed proportionately only to U.S. Persons at that date regardless of whether such income is distributed, in which case your investment could be materially adversely affected. In addition, any RPII that is includible in the income of a U.S. tax-exempt organization may be treated as unrelated business taxable income. The amount of RPII earned by a non-U.S. insurance subsidiary (generally, premium and related investment income from the indirect or direct insurance or reinsurance of any direct or indirect U.S. holder of shares or any person related to such holder) will depend on a number of factors, including the identity of persons directly or indirectly insured or reinsured by the company. We do not expect gross RPII of Essent Re to equal or exceed 20% of its gross insurance income in any taxable year for the foreseeable future, but we cannot be certain that this will be the case because some of the factors which determine the extent of RPII may be beyond our control. Further, recently proposed regulations were published which could, if finalized in their current form, substantially expand the definition of RPII to include insurance income of Essent Re related to affiliate reinsurance transactions. These regulations would apply to taxable years beginning after the date the regulations are finalized. Although we cannot predict whether, when or in what form the proposed regulations might be finalized, the proposed regulations, if finalized in their current form, could limit our ability to execute affiliate reinsurance transactions that would otherwise be undertaken for non-tax business reasons in the future as that could increase the risk that gross RPII could constitute 20% or more of the gross insurance income of Essent Re in a particular taxable year, which could result in such RPII being taxable to U.S. persons that own our shares.

We believe that the dividends paid on the common shares should qualify as "qualified dividend income" if, as is intended, our common shares remain listed on a national securities exchange and Essent Group Ltd. is not a PFIC. Qualified dividend income received by non-corporate U.S. Persons is generally eligible for long-term capital gain rates. There has been proposed legislation before the U.S. Senate and House of Representatives that would exclude shareholders of certain foreign corporations from this advantageous tax treatment. If such legislation were to become law, non-corporate U.S. Persons would no longer qualify for the reduced tax rate on the dividends paid by us.

The base erosion anti-abuse tax or “BEAT” that could make certain levels of affiliate reinsurance between United States and non-U.S. members of our group economically unfeasible. Although we are not currently impacted by BEAT, there can be no assurance that changes to future taxable income calculations or future changes to BEAT will not have a negative impact on us. Future legislation adverse to the Company's effective tax rate may also extend beyond changes to the BEAT. In addition, the Inflation Reduction Act of 2022 (“IRA”) introduced, among other tax provisions, the Corporate Alternative Minimum Tax (“CAMT”) and a federal excise tax (“FET”) of 1% on certain stock repurchases. Companies are not subject to the CAMT if itthey doesdo not meet a certain net income threshold on a trailing 3-year average calculation. Based on such calculations, the Company is not currently subject to the CAMT. Management will continue to monitor the applicability of CAMT. Generally,Final theTreasury ExciseRegulations Taxwere issued on certainNovember stock24, repurchases2025 appliesregarding to U.S.-domiciled companies. Proposed regulations issued in 2024, which may apply retroactively if finalized in their present form, provide in part that a foreign-parented MNC’sthe stock repurchase isFET. Those regulations confirm that we are not subject to the FETtax ifas itcurrently isenacted; fundedhowever, byfuture itslegislative U.S affiliate with a principal purpose of avoiding the FET. The Proposed Regulations provide that the determination of whether a funding by a U.S. affiliate has a principal purpose of avoiding the FET is based on all the facts and circumstances. Final regulations were also issued in 2024 which provide several procedural rules relatedchanges to the paymentstock ofrepurchase theFET taxcould andcause relatedus compliance obligations. The Company mayto become subject to the FET on stock repurchases in 2025 and future years based on facts and circumstances regarding sources and uses of Essent Group Ltd capital under the Proposed Regulations.it.

Essent Group Ltd. (collectively with its subsidiaries, “Essent”) serves the housing finance industry by offering private mortgage insurance and reinsurance, title insurance and settlement services to mortgage lenders, borrowers and investors to support homeownership. We have onetwo reportable segmentsegments: Mortgage Insurance.Insurance and Reinsurance.

Essent Guaranty, Inc., our wholly-owned mortgage insurance subsidiary which we refer to as ("Essent Guaranty,Guaranty"), is approved by Fannie Mae and Freddie Mac and licensed to write coverage in all 50 states and the District of Columbia. For the years ended December 31, 2024,2025, 20232024 and 2022,2023, our mortgage insurance operations generated new insurance written, or NIW, of approximately $45.6$46.6 billion, $47.7$45.6 billion and $63.1$47.7 billion, respectively. As of December 31, 2024,2025, we had approximately $243.6$248.4 billion of mortgage insurance in force. The financial strength ratings of Essent Guaranty are A3A2 with a positivestable outlook by Moody's Investors Service, Inc. ("Moody's"), A- with a stable outlook by S&P Global Ratings ("S&P") and A (Excellent) with a stable outlook by A.M. Best Company ("AM Best").

Through our wholly-owned Bermuda-based subsidiary, Essent Reinsurance Ltd.,Ltd. which we refer to as ("Essent Re"), we reinsure U.S. mortgage risk in the GSE credit risk transfer market and provide underwriting consulting services to third-party reinsurers. As of December 31, 2024,2025, Essent Re provided insurance or reinsurance relating to GSE risk share and other reinsurance transactions covering approximately $2.2$2.3 billion of risk. Essent Re also reinsures Essent Guaranty's NIW under a quota share reinsurance agreement. The insurer financial strength ratings of Essent Re are A- with a stable outlook by S&P and A (Excellent) with a stable outlook by A.M. Best.

We have a highly experienced, talented team with 625514 employees as of December 31, 2024.2025. Our holding company and reinsurance business are domiciled in Bermuda. Our U.S. mortgage insurance and title insurance operations are headquartered in Radnor, Pennsylvania.

The Federal Reserve increased the target federal funds rate several times during 2022 and 2023 in an effort to reduce consumer price inflation. As a result of progress on inflation, the Federal Reserve has reduced the target federal funds rate by 100 basis points sincein September2024 2024.and by another 75 basis points during 2025. Mortgage interest rates, however, remain elevated, which has reduced home buying and mortgage refinance activity resulting in lower volumes of mortgage originations, NIW and title insurance and settlement service transactions. Higher interest rates have also resulted in increases in our net investment income generated by our investment portfolio and the persistency of our mortgage insurance in force.

In January 2025, several wildfires caused property damage in Southern California. As of January 31, 2025, ourOur insurance in force in areas with Federal Emergency Management Agency (FEMA) disaster declarations dueat tothe time of these wildfires was less than 0.1% of our total insurance in force. These wildfires did not have a material impact on our reserves.

On AugustJuly 16,4, 2022,2025, a budget reconciliation package known as the “InflationOne ReductionBig Beautiful Bill Act of 2022”2025 (IRA“OBBBA”), was enacted,enacted which,which amongincludes other things, provides for a corporate alternative minimumboth tax and annon-tax excise tax on corporate stock repurchases.provisions. Based on our current analysis of the provisions, wethe doOBBBA did not expect the IRA to have a material impact on our financial position or results of operations. As the IRS issues additional guidance related to the IRA, we will evaluate any potential impact to our consolidated financial statements.

On December 27, 2023, the Government of Bermuda enacted the Corporate Income Tax Act 2023 (CIT). Starting January 1, 2025, the CIT will result inimposes a new 15% corporate income tax on in-scope entities that are resident in Bermuda or that have a Bermuda permanent establishment, without regard to any assurances that had previously been given pursuant to the Exempted Undertakings Tax Protection Act 1966.

TheAlthough our annual revenue meets the CIT alsothreshold includesfor various"in-scope" transitional provisions and elections that we are in the process of evaluating. In particular, we believe that, based on their current structure and operations,(€750M), our Bermuda companies willare benot eligible"in toscope" electbecause of a five-yearstatutory exception for entities having “limited international presence” exemptionor under"LIP". We currently meet the CIT.criteria Wefor intendthe LIP exception, which is available to makeour thisBermuda electioncompanies withinfor a period of five years, or when the timeframeLIP requiredcriteria under Bermuda law, and therefore do not expect the CIT to have a material impact upon our effective tax rate until weare no longer meet the exemption criteria, or January 1, 2030, the fifth anniversary of the inception date of the tax,met, whichever may occuris sooner. The LIP exemption criteria are subject to interpretation of existing Bermuda law, as well as any related new regulations that may be issued by the Government of Bermuda. NoAlso, future strategic business decisions could impact qualification for the LIP exception. Accordingly, no assurances can be made that we will continue meeting suchthe LIP exception criteria forduring the entirefour years remaining in our five-year exemption period.

Premiums associated with our U.S. mortgage insurance business are based on insurance in force, or IIF, during all or a portion of a period. A change in the average IIF during a period causes premiums to increase or decrease as compared to prior periods. Average net premium rates in effect during a given period will also cause premiums to differ when compared to earlier periods. IIF at the end of a reporting period is a function of the IIF at the beginning of such reporting period plus NIW less policy cancellations (including claims paid) during the period. As a result, premiums are generally influenced by:

Mortgage insurance premiums are paid either on a monthly installment basis ("monthly premiums"), in a single payment at origination ("single premiums"), or in some cases as an annual premium. For monthly premiums, we receive a monthly premium payment which is recorded as net premiums earned in the month the coverage is provided. Monthly premium payments are based on the original mortgage amount rather than the amortized loan balance. Net premiums written may be in excess of net premiums earned due to single premium policies. For single premiums, we receive a single premium payment at origination, which is recorded as "unearned premium" and earned over the estimated life of the policy, which ranges from 36 to 156 months depending on the term of the underlying mortgage and loan-to-value ratio at date of origination. If single premium policies are cancelled due to repayment of the underlying loan and the premium is non-refundable, the remaining unearned premium balance is immediately recognized as earned premium revenue. Substantially all of our single premium policies in force as of December 31, 20242025 were non-refundable. Premiums collected on annual policies are recognized as net premiums earned on a straight-line basis over the year of coverage. For both of the years ended December 31, 20242025 and 2023,2024, monthly premium policies comprised 99% and 97% of our NIW, respectively.NIW.

Premiums associated with our GSE and other risk sharereinsurance transactions are based on the level of risk in force and premium rates on the transactions.

The percentage of IIF that remains on our books after any 12-month period is defined as our persistency rate. Because our insurance premiums are earned over the life of a policy, higher persistency rates can have a significant impact on our profitability. The persistency rate on our U.S. mortgage insurance portfolio was 85.7% at December 31, 2024.2025. Generally, higher prepayment speeds lead to lower persistency.

As part of our overall investment strategy, we also allocate a relatively small percentage of our portfolio to limited partnership investments in real estate, consumer credit and traditional venture capital and private equity investments. The results of these investing activities are reported in income from other invested assets. These investments are generally accounted for under the equity method or fair value using net asset value (or its equivalent) as a practical expedient. 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. Fluctuations in the fair value of these entities may increase the volatility of the Company’s reported results of operations.

•the distribution of claims over the life of a book. As of December 31, 2024,2025, 56%53% of our IIF relates to mortgage insurance business written sincebefore January 1, 20222023 and was lessat thanleast three years old. As a result, based on historical industry performance, we expect the number of defaults and claims we experience, as well as our provision for losses and loss adjustment expenses ("LAE"), to increase as our portfolio seasons. See "—Mortgage Insurance Earnings and Cash Flow Cycle" below.

Based upon our experience and industry data, claims incidence for mortgage insurance is generally highest in the third through sixth years after loan origination. As of December 31, 2024,2025, 56%53% of our IIF relates to business written sincebefore January 1, 20222023 and was lessat thanleast three years old. AlthoughAs the claims experience on new insurance written by us to date has been favorable,such, we expect incurred losses and claims to increase as a greater amount of this book of insurance reachesis entering its anticipated period of highest claim frequency. The actual default rate and the average reserve per default that we experience as our portfolio matures is difficult to predict and is dependent on the specific characteristics of our current in-force book (including the credit score of the borrower, the loan-to-value ratio of the mortgage, geographic concentrations, etc.), as well as the profile of new business we write in the future. In addition, the default rate and the average reserve per default will be affected by future macroeconomic factors such as housing prices, interest rates and employment.

The Federal Reserve increased the target federal funds rate several times during 2022 and 2023 in an effort to reduce consumer price inflation. As a result of subsequent reductions in inflation rates, the Federal Reserve has reduced the target federal funds rate by 100 basis points sincein September2024 2024.and by another 75 basis points during 2025. Mortgage interest rates, however, have remained elevated, which may lower home sale activity and affect the options available to delinquent borrowers. It is reasonably possible that our estimate of losses could change in the near term as a result of changes in the economic environment, the impact of elevated levels of consumer price inflation on home sale activity, housing inventory, and home prices.

In January 2025, several wildfires caused property damage in Southern California. As of January 31, 2025, ourOur insurance in force in areas with Federal Emergency Management Agency (FEMA) disaster declarations dueat tothe time of these wildfires was less than 0.1% of our total insurance in force. These wildfires did not have a material impact on our reserves.

Outward Reinsurance

Income taxes are incurred based on the amount of earnings or losses generated in the jurisdictions in which we operate and the applicable tax rates and regulations in those jurisdictions. Our U.S. insurance subsidiaries are generally not subject to income taxes in most states in which we operate; however, our non-insurance subsidiaries are subject to state income taxes. InExcept lieufor ofsix statestates, incomemost taxes,notably Florida, our insurance subsidiaries pay premium taxes thatin lieu of state income taxes. Premium taxes are recorded in other underwriting and operating expenses.

Essent Group Ltd. ("Essent Group") and its wholly-owned subsidiaries,subsidiary, Essent Re and Essent Agency (Bermuda) Ltd.,Re, are domiciled in Bermuda, and their income is currently not subject to a corporate income tax as of December 31, 2024.tax. See "—Legislative and Regulatory Developments—Bermuda Corporate Income Tax" above. UnderEssent Re reinsures U.S. mortgage risk in the GSE credit risk transfer market and provide underwriting consulting services to third-party reinsurers. Essent Re also reinsures Essent Guaranty's NIW under a quota share reinsurance agreement,agreement. The following table summarizes the quota share reinsurance coverage that Essent Re reinsureshas 25%provided ofto Essent Guaranty'sGuaranty for the respective NIW through December 31, 2020 and 35% of Essent Guaranty’s NIW after December 31, 2020. Essent Re also provides insurance and reinsurance to Freddie Mac and Fannie Mae.periods:

As discussed above, mortgage insurance premiums we collect and earn are generated based on our IIF, which is a function of our NIW and cancellations. The following table includes a summary of the change in our IIF for the years ended December 31, 2024,2025, 20232024 and 20222023 for our U.S. mortgage insurance portfolio. In addition, this table includes our RIF at the end of each period.

Our average net premium rate is calculated by dividing net premiums earned for our U.S. mortgage insurance portfolio by average insurance in force for the period and is dependent on a number of factors, including: (1) the risk characteristics and average coverage on the mortgages we insure; (2) the mix of monthly premiums compared to single premiums in our portfolio; (3) cancellations of non-refundable single premiums during the period; (4) changes to our pricing for NIW; and (5) premiums ceded under third-party reinsurance agreements. The following table presents the average net premium rate for our U.S. mortgage insurance portfolio:

The measure for assessing the impact of U.S. mortgage insurance policy cancellations on IIF is our persistency rate, defined as the percentage of IIF that remains on our books after any twelve-month period. See additional discussion regarding the impact of the persistency rate on our performance in "—Factors Affecting Our Results of Operations—Persistency and Business Mix."

The risk-to-capital ratio has historically been used as a measure of capital adequacy in the U.S. mortgage insurance industry and is calculated as a ratio of net risk in force to statutory capital. Net risk in force represents total risk in force net of reinsurance ceded and net of exposures on policies for which loss reserves have been established. Statutory capital for our U.S. insurance companies is computed based on accounting practices prescribed or permitted by the Pennsylvania Insurance Department. See additional discussion in "—Liquidity and Capital Resources—Insurance Company Capital."

As of December 31, 2024,2025, the net risk in force for Essent Guaranty was $35.2$32.5 billion and its statutory capital was $3.6 billion, resulting in a risk-to-capital ratio of 9.89.1:1. The amount of capital required varies in each jurisdiction in which we operate; however, generally, the maximum permitted risk-to-capital ratio is 25.0 to :1. State insurance regulators have continued to examine their respective capital rules to determine whether, in light of the 2007-2008 financial crisis, changes are needed to more accurately assess mortgage insurers' ability to withstand stressful economic conditions. As a result, the capital metrics under which they assess and measure capital adequacy may change in the future. Independent of the state regulator and GSE capital requirements, management continually assesses the risk of our insurance portfolio and current market and economic conditions to determine the appropriate levels of capital to support our business.

The increasedecrease in net premiums earned for 20242025 compared to 20232024 is primarily driven by increasesdecreases in net premiums earned in both our mortgage insurancereinsurance and title insurance operations in 2024.2025. For more information, see Net Premiums Written and Earned under “Results of Operations: Mortgage Insurance”, Net Premiums Earned under “Results of Operations: Reinsurance” and Net Premiums Earned under “Results of Operations: Corporate & Other”.

The increase in our consolidated net investment income to $236.5 million for the year ended December 31, 2025 as compared to $222.1 million for the year ended December 31, 2024 as compared to $186.1 million for the year ended December 31, 2023 was due to the increase in the weighted average balance of our investment portfolio, as well as an increase in the average yield on the investment portfolio. The average balance of cash and investments at amortized cost increased to $6.4 billion during the year ended December 31, 2025 from $6.1 billion during the year ended December 31, 2024 from $5.5 billion during the year ended December 31, 2023,2024, primarily as a result of investing cash flows generated from operations. The pre-tax investment income yield increased from 3.5% in the year ended December 31, 2023 to 3.7% in the year ended December 31, 2024 to 3.8% in the year ended December 31, 2025 primarily due to a general increase in investment yields due to increasing interest rates.

The pre-tax investment income yields are calculated based on amortized cost and exclude investment expenses. See "—Liquidity and Capital Resources" for further details of our investment portfolio.

Income from other invested assets for the year ended December 31, 20242025 was a gain of $7.4$17.6 million as compared to a lossgain of $11.1$7.4 million for the year ended December 31, 2023.2024. The increase in income from other invested assets for the year ended December 31, 20242025 as compared to the year ended December 31, 20232024 was primarily due to an increase in favorable fair value adjustments recorded during 2024.2025.

Other income was $24.0 million for the year ended December 31, 2025 compared to $24.9 million for the year ended December 31, 2024 compared to $25.0 million for the year ended December 31, 2023.2024. Other income within our Mortgage Insurance segment includes fair value adjustments on embedded derivatives contained in certain of our reinsurance agreements. In the year ended December 31, 20242025 we recorded a net unfavorable decrease in the fair value of the embedded derivatives of $2.1$1.6 million compared to a net favorableunfavorable increasedecrease of $1.9$2.1 million in the year ended December 31, 2023.2024.

The increasedecrease in underwriting and operating expenses for 20242025 compared to 20232024 was primarily due to an increasedecrease in compensation expense, including stock compensation, primarily due to increaseddecreased headcounts,headcount, as well as ana increasedecrease in other general operating expenses, both resulting from 12 months of title insurance operations in 2024.expenses. For more information, see “Results of Operations: Mortgage InsuranceInsurance,” “Results of Operations: Reinsurance” and “Results of Operations: Corporate & Other.”

For the years ended December 31, 20242025 and 2023,2024, we incurred interest expense of $35.3$32.7 million and $30.1$35.3 million, respectively. Interest expense increaseddecreased in 20242025 compared to 20232024 primarily due to an increase in the average outstanding borrowings during the period and a $3.2 million loss on debt extinguishment for the write-off of unamortized debt issuance costs,costs partiallyduring offset by a decrease in the weighted average interest rate.2024. On July 1, 2024, Essent Group issued $500 million of 6.25% senior notes and utilized the proceeds to repay all of the outstanding term loan borrowings under the Credit Facility. For the years ending December 31, 20242025 and 2023,2024, our borrowings carried a weighted average interest rate of 6.68%6.25% and 6.84%,6.68%, respectively. For the years ended December 31, 20242025 and 2023,2024, the average amount of borrowings outstanding was $462.5$500 million and $425.0$462.5 million, respectively.

Our subsidiaries in the United States file a consolidated U.S. Federal income tax return. Our income tax expense was $131.9 million for the year ended December 31, 2025 compared to $126.1 million for the year ended December 31, 2024 compared to $126.6 million for the year ended December 31, 2023.2024. The effective tax rate for the year ended December 31, 20242025 was 14.7%16.0% compared to 15.4%14.7% for the year ended December 31, 2023.2024. Our effective income tax rate reflects the amount of earnings or losses generated in the jurisdictions in which we operate, the applicable tax rates and regulations in those jurisdictions, and the impact of discrete items. The increase in our effective tax rate is primarily related to withholding taxes incurred on intercompany dividends paid by Essent US Holdings, Inc. to its parent company. For the year ended December 31, 2025, income tax expense includes $1.2 million of favorable adjustments related to prior year tax returns and $0.8 million of excess tax benefits associated with the vesting of common shares and common share units. For the year ended December 31, 2024, income tax expense includes $1.3 million of favorable adjustments related to prior year tax returns and $0.7 million of excess tax benefits associated with the vesting of common shares and common share units. For the year ended December 31, 2023, income tax expense includes $5.3 million of net expense associated with prior year tax returns and a $2.7 million net benefit for the deferred tax asset recognized for unrealized losses on the investment portfolios of Essent Group and Essent Re upon the enactment of the Bermuda Corporate Income Tax. See Note 12 to our consolidated financial statements.

For the year ended December 31, 2024,2025, our Mortgage Insurance segment reported income before income tax expense of $892.3$768.3 million, compared to income before income tax expense of $860.0$804.9 million for the year ended December 31, 2023.2024. The increasedecrease in our operating results in 20242025 over 20232024 was primarily due to an increase in the provision for losses and LAE, partially offset by an increase in net premiums earned and investment income,income partiallyand offseta by an increasedecrease in theoperating provision for lossesexpenses and LAE.corporate allocations.

Our Mortgage Insurance segment reported income before income tax expense of $1.0$770.1 billionmillion for the year ended December 31, 2022.2023. The decreaseincrease in our operating results in 20232024 compared to 20222023 was primarily due to an increase in the provision for losses and LAE, partially offset by increases in net premiums earned and net investment income.income, partially offset by increases in provision for losses and LAE.

Mortgage Insurance net premiums earned increased in the year ended December 31, 2025 by 1.3% compared to the year ended December 31, 2024. The increase in net premiums earned was primarily due to the increase in our average IIF from $241.6 billion in 2024 to $246.5 billion in 2025. Mortgage Insurance net premiums earned increased in the year ended December 31, 2024 by 5%5.3% compared to the year ended December 31, 2023. The increase in net premiums earned was due to the increase in our average IIF from $234.5 billion in 2023 to $241.6 billion in 2024. The average net premium rate was 0.35% for botheach of the three years ended December 31, 2024 and 2023.2025.

For the year ended December 31, 2024,2025, the Mortgage Insurance segment recorded a provision for losses of $75.2$145.4 million compared to a provision of $30.1$75.2 million for the year ended December 31, 2023.2024. The increase in the provision for losses was primarily due to an increase in new defaults reported as well as an increase in our average reserve per default, partially offset by cure activity for defaults reported in prior years. The increase in average reserve per default was due to aging of defaults remaining within the mortgage insurance portfolio as well as a reduction of hurricane-related defaults without a corresponding change in reserves for hurricane-related defaults. For the year ended December 31, 2023, we recorded a provision for losses of $30.2 million. The increase in the provision for losses in the year ended December 31, 2024 was primarily due to increasesan increase in new defaults reported, resulting in an increase in the provision for losses recorded for current year defaults, partially offset by cure activity for defaults reported in prior years. TheIn 2024, the increase in defaults was due in part to defaulted loans in the areas impacted by Hurricanes Helene and Milton. In 2024, loans in default increased by a total of 3,620, including 2,119 defaults we identified as hurricane-related defaults. For the year ended December 31, 2022, we recorded a benefit to the provision for losses of $174.7 million primarily due to a decrease in the estimate of ultimate loss for Early COVID Defaults as well as cure activity for defaults with reserves using our normal reserve methodology.

The following table presents a rollforward of insured loans in default for our U.S. mortgage insurance portfolio for the periods indicated:

The following table includes additional information about our loans in default as of the dates indicated for our U.S. mortgage insurance portfolio:

The following table provides a reconciliation of the beginning and ending U.S. mortgage insurance reserve balances for losses and LAE:

The following tables provide a detail of reserves and defaulted RIF by the number of missed payments and pending claims for our U.S. mortgage insurance portfolio:

During the year ended December 31, 2025, the provision for losses and LAE was $145.4 million, comprised of $224.3 million for current year losses, partially offset by $78.9 million of favorable prior years' loss development. During the year ended December 31, 2024, the provision for losses and LAE was $75.2 million, comprised of $171.9 million forof current year losses, partially offset by $96.8 million of favorable prior years' loss development. During the year ended December 31, 2023, the provision for losses and LAE was a benefit of $30.2 million, comprised of $138.6 million of current year losses, partially offset by $108.4 million of favorable prior years' loss development. During the year ended December 31, 2022, the provision for losses and LAE was a benefit of $174.7 million, comprised of $99.4 million of current year losses, offset by $272.8 million of favorable prior years' loss development. In each period, the favorable prior years' loss development was the result of a re-estimation of amounts ultimately to be paid on prior year defaults in the default inventory, including the impact of previously identified defaults that cured.

•Compensation and benefits decreased in 2025 compared to 2024 as a result of a decline in the number of average employees and increased in 2024 compared to 2023 and in 2023 compared to 2022 primarily due to increases in stock based compensation expense. Compensation and benefits includes salaries, wages and bonus, stock compensation expense, benefits and payroll taxes.

•Other expenses increased in 20232025 compared to 20222024 primarily as a result of increases in professional fees and software relatedsoftware-related expenses. Other expenses include professional fees, travel, marketing, hardware, software, rent, depreciation and amortization and other facilities expenses.

The following discussion should be read together with our audited consolidated financial statements and related notes included in our Annual Report on Form 10-K as of and for the year ended December 31, 2025 as filed with the Securities and Exchange Commission and referred to herein as the “Annual Report,” and our condensed consolidated financial statements and related notes as of and for the three and six months ended MarchJune 31,30, 2026 included in Part I, Item 1 of this Quarterly Report on Form 10-Q, which we refer to as the “Quarterly Report.” In addition to historical information, this discussion contains forward-looking statements that involve risks, uncertainties and assumptions that could cause actual results to differ materially from management’s expectations. Factors that could cause such differences are discussed in the sections entitled “Special Note Regarding Forward-Looking Statements” in this Quarterly Report and Part I, Item 1A “Risk Factors” in our Annual Report and Part II, Item 1A “Risk Factors” in this Quarterly Report. We are not undertaking any obligation to update any forward-looking statements or other statements we may make in the following discussion or elsewhere in this document even though these statements may be affected by events or circumstances occurring after the forward-looking statements or other statements were made.

Essent Guaranty, Inc., our wholly-owned mortgage insurance subsidiary which we refer to as "Essent Guaranty," is approved by Fannie Mae and Freddie Mac and licensed to write coverage in all 50 states and the District of Columbia. Our mortgage insurance operations generated new insurance written, or NIW, of approximately $11.1$14.1 billion and $25.2 billion for the three and six months ended MarchJune 31,30, 20262026, respectively, compared to approximately $9.9$12.5 billion and $22.5 billion for the three and six months ended MarchJune 31,30, 2025.2025, respectively. The financial strength ratings of Essent Guaranty are A2 with a stable outlook by Moody’s Ratings (“Moody's”), A- with a stable outlook by S&P Global Ratings (“S&P”) and A (Excellent) with a stable outlook by A.M. Best Ratings Services, Inc. ("AM Best").

Through our wholly-owned Bermuda-based subsidiary, Essent Reinsurance Ltd., which we refer to as "Essent Re", we reinsure U.S. mortgage risk in the GSE credit risk transfer market and also provide underwriting consulting services to third-party reinsurers. As of MarchJune 31,30, 2026, Essent Re provided insurance or reinsurance relating to GSE and other mortgage risk share transactions covering approximately $2.1 billion of risk. Essent Re also reinsures Essent Guaranty’s NIW under a quota share reinsurance agreement. Effective January 1, 2026, Essent Re began reinsuring certain property and casualty risks. The financial strength ratings of Essent Re are A- with a stable outlook by S&P and A (Excellent) with a stable outlook by AM Best.

We have a highly experienced, talented team with 520518 employees as of MarchJune 31,30, 2026. Our holding company and reinsurance business are domiciled in Bermuda. Our U.S. mortgage insurance and title insurance operations are headquartered in Radnor, Pennsylvania.

The Federal Reserve increased the target federal funds rate several times during 2022 and 2023 in an effort to reduce consumer price inflation. As a result of progress on inflation, the Federal Reserve reduced the target federal funds rate by 100 basis points in 2024 and by another 75 basis points during 2025. Mortgage interest rates, however, remainhave remained elevated, which has reduced home buying and mortgage refinance activity resulting in lower volumes of mortgage originations, NIW and title insurance and settlement service transactions. Higher interest rates have also resulted in increases in our net investment income generated by our investment portfolio and the persistency of our mortgage insurance in force.

Mortgage insurance premiums are paid either on a monthly installment basis (“monthly premiums”), in a single payment at origination (“single premiums”), or in some cases as an annual premium. For monthly premiums, we receive a monthly premium payment which is recorded as net premiums earned in the month the coverage is provided. Monthly premium payments are based on the original mortgage amount rather than the amortized loan balance. Net premiums written may be in excess of net premiums earned due to single premium policies. For single premiums, we receive a single premium payment at origination, which is recorded as “unearned premium” and earned over the estimated life of the policy, which ranges from 36 to 156 months depending on the term of the underlying mortgage and loan-to-value ratio at date of origination. If single premium policies are cancelled due to repayment of the underlying loan and the premium is non-refundable, the remaining unearned premium balance is immediately recognized as earned premium revenue. Substantially all of our single premium policies in force as of MarchJune 31,30, 2026 were non-refundable. Premiums collected on annual policies are recognized as net premiums earned on a straight-line basis over the year of coverage. For the threesix months ended MarchJune 31,30, 2026 and 2025, monthly premium policies comprised 98% and 99% of our NIW, respectively.

The percentage of IIF that remains on our books after any 12-month period is defined as our persistency rate. Because our insurance premiums are earned over the life of a policy, higher persistency rates can have a significant impact on our profitability. The persistency rate on our portfolio was 84.7%84.0% at MarchJune 31,30, 2026. Generally, higher prepayment speeds lead to lower persistency.

Our investment portfolio was predominantly comprised of investment-grade fixed income securities and money market funds as of MarchJune 31,30, 2026. The principal factors that influence investment income are the size of the investment portfolio and the yield on individual securities. As measured by amortized cost (which excludes changes in fair market value, such as from changes in interest rates), the size of our investment portfolio is mainly a function of increases in capital and cash generated from or used in operations which is impacted by net premiums received, investment earnings, net claim payments and expenses. Realized gains and losses are a function of the difference between the amount received on the sale of a security and the security’s amortized cost, as well as any provision for credit losses or impairments recognized in earnings. The amount received on the sale of fixed income securities is affected by the coupon rate of the security compared to the yield of comparable securities at the time of sale.

•credit quality of borrowers, including higher debt-to-income ratios and lower FICOcredit scores, which tend to increase incurred losses;

•the distribution of claims over the life of a book. As of MarchJune 31,30, 2026, 51%47% of our IIF relates to mortgage insurance business written before January 1, 2023 and was at least three years old. As a result, based on historical industry performance, we expect the number of defaults and claims we experience, as well as our provision for losses and loss adjustment expenses ("LAE"), to increase as our portfolio seasons. See “— Mortgage Insurance Earnings and Cash Flow Cycle” below.

Based upon our experience and industry data, claims incidence for mortgage insurance is generally highest in the third through sixth years after loan origination. As of MarchJune 31,30, 2026, 51%47% of our IIF relates to business written before January 1, 2023 and was at least three years old. As such, we expect incurred losses and claims to increase as a greater amount of this book of insurance is entering its anticipated period of highest claim frequency. The actual default rate and the average reserve per default that we experience as our portfolio matures is difficult to predict and is dependent on the specific characteristics of our current in-force book (including the credit score of the borrower, the loan-to-value ratio of the mortgage, geographic concentrations, etc.), as well as the profile of new business we write in the future. In addition, the default rate and the average reserve per default will be affected by future macroeconomic factors such as housing prices, interest rates and employment.

On September 26, 2024, Hurricane Helene made landfall and caused property damage in certain counties in Florida, Georgia, South Carolina, North Carolina, Tennessee and Virginia. On October 9, 2024, Hurricane Milton made landfall, causing damage in certain counties in Florida. Loans in default increased by 3,620 in the year ended December 31, 2024, including 2,119 defaults we identified as hurricane-related defaults. Based on prior industry experience, we expectexpected the ultimate number of hurricane-related defaults that result in claims willwould be less than the default-to-claim experience of non-hurricane-related defaults. In addition, under our master policy, our exposure may be limited on hurricane-related claims. For example, we are permitted to exclude a claim entirely where damage to the property underlying a mortgage was the proximate cause of the default and adjust a claim where the property underlying a mortgage in default is subject to unrestored physical damage. Accordingly, when establishing our loss reserves as of December 31, 2024, we applied a lower estimated claim rate to new default notices received in the fourth quarter of 2024 from the affected areas than the claim rate we apply to other notices in our default inventory. The impact on our reserves in future periods will be dependent upon the performance of the hurricane-related defaults and our expectations for the amount of ultimate losses on these delinquencies.

As more fully described in Note 4 to our condensed consolidated financial statements, at MarchJune 31,30, 2026, we had approximately $1.1$1.0 billion of excess of loss reinsurance covering NIW from January 1, 2019 through August 31, 2019 and August 1, 2020 through December 31, 2025 and quota share reinsurance on portions of our NIW effective September 1, 2019 through December 31, 2020 and January 1, 2022 through December 31, 2026. The impact on our reserves in future periods will be dependent upon the amount of delinquent notices received from loan servicers, the performance of defaults and our expectations for the amount of ultimate losses on these delinquencies.

Our most significant expense is compensation and benefits for our employees, which represented 50%41% and 45% of other underwriting and operating expenses for the three and six months ended MarchJune 31,30, 2026, compared to 56%49% and 53% for the three and six months ended MarchJune 31,30, 2025. Compensation and benefits expense includes base and incentive cash compensation, stock compensation expense, benefits and payroll taxes.

As discussed above, mortgage insurance premiums we collect and earn are generated based on our IIF, which is a function of our NIW and cancellations. The following table includes a summary of the change in our IIF for the three and six months ended MarchJune 31,30, 2026 and 2025 for our U.S. mortgage insurance portfolio. In addition, this table includes our RIF at the end of each period.

The following is a summary of our IIF at MarchJune 31,30, 2026 by vintage:

As of MarchJune 31,30, 2026, the net risk in force for Essent Guaranty was $31.8$31.1 billion and its statutory capital was $3.7 billion, resulting in a risk-to-capital ratio of 8.68.5:1. The amount of capital required varies in each jurisdiction in which we operate; however, generally, the maximum permitted risk-to-capital ratio is 25.0 to 1. State insurance regulators have continued to examine their respective capital rules to determine whether, in light of the 2007-2008 financial crisis, changes are needed to more accurately assess mortgage insurers' ability to withstand stressful economic conditions. As a result, the capital metrics under which they assess and measure capital adequacy may change in the future. Independent of the state regulator and GSE capital requirements, management continually assesses the risk of our insurance portfolio and current market and economic conditions to determine the appropriate levels of capital to support our business.

Net premiums earned for the three and six months ended MarchJune 31,30, 2026 increased compared to the three and six months ended MarchJune 31,30, 2025.2025, primarily due to property and casualty reinsurance assumed beginning January 1, 2026. For more information, see Net Premiums Written and Earned under “Results of Operations: Mortgage Insurance”, Net Premiums Written and Earned under “Results of Operations: Reinsurance” and Net Premiums Earned under “Results of Operations: Corporate & Other”.

The increase in net investment income for the three and six months ended MarchJune 31,30, 2026 as compared to the same periodperiods in 2025 was due to an increase in the pre-tax investment income yield.yield and an increase in the average balance of cash and available-for-sale investments. The pre-tax investment income yield on cash and available-for-sale investments increased from 3.77% in the three months ended March 31, 2025 to 3.80%3.85% for the three months ended MarchJune 31,30, 2025 to 3.99% for the three months ended June 30, 2026, and from 3.81% for the six months ended June 30, 2025 to 3.89% for the six months ended June 30, 2026, primarily due to a general increase in investment yields due to rising interest rates. The average cash and available-for-sale investment portfolio balance was $6.4 billion for both the three and six months ended MarchJune 31,30, 2026 and $6.3 billion for both the three and six months ended June 30, 2025, respectively. See “— Liquidity and Capital Resources” for further details of our investment portfolio.

Income from other invested assets for the three months ended MarchJune 31,30, 2026 was $10.2$19.4 million as compared to $7.4$4.5 million for the three months ended MarchJune 31,30, 2025. Income from other invested assets for the six months ended June 30, 2026 was $29.6 million as compared to $11.9 million for the six months ended June 30, 2025. The increase in income from other invested assets for the three and six months ended MarchJune 31,30, 2026 compared to the three and six months ended MarchJune 31,30, 2025 was primarily due to increased favorable fair value adjustments recorded.

Other income for the three months ended MarchJune 31,30, 2026 was $6.7$5.0 million as compared to $6.3$6.7 million for the three months ended MarchJune 31,30, 2025. Other income for the six months ended June 30, 2026 was $11.7 million as compared to $13.0 million for the six months ended June 30, 2025. Other income includes revenues associated with underwriting consulting services to third-party reinsurers, title settlement services and contract underwriting services, as well as changes in the fair value of our embedded derivatives associated with certain reinsurance contracts.

The increased provision for losses for the three and six months ended MarchJune 31,30, 2026 compared to the three and six months ended MarchJune 31,30, 2025 was primarily due to property and casualty reinsurance assumed beginning January 1, 2026 and an increase in the number of defaults as well as an increase in the average reserve per default due to aging of defaults remaining within the mortgage insurance portfolio. See “Results of Operations: Mortgage Insurance" and “Results of Operations: Reinsurance" for more information.

The increase in underwriting and operating expenses for the three and six months ended MarchJune 31,30, 2026 compared to the three and six months ended MarchJune 31,30, 2025 was primarily due to an increase in operating expenses in our Reinsurance segment, partially offset by decreases in operating expenses in our Mortgage Insurance segment and Corporate & Other category.segment. For more information, see “Results of Operations: Mortgage Insurance”, “Results of Operations: Reinsurance” and “Results of Operations: Corporate & Other.”

For the three monthsmonth periods ended MarchJune 31,30, 2026 and 2025, we incurred interest expense of $8.1 million.million, Inrespectively. bothFor the threesix month periods ended MarchJune 31,30, 2026 and 2025, thewe incurred interest expense of $16.3 million, respectively. The average amount of borrowings outstanding were $500 million at a weighted average interest rate of 6.25%.6.25% for all periods presented.

Our subsidiaries in the United States file a consolidated U.S. Federal income tax return. Our income tax expense was $34.9$40.6 million and $31.6$35.8 million for the three months ended MarchJune 31,30, 2026 and 2025, respectively and $75.5 million and $67.4 million for the six months ended June 30, 2026 and 2025, respectively. The provision for income taxes for the threesix months ended MarchJune 31,30, 2026 was calculated using an estimated annual effective tax rate of 17.2%17.3% compared to 15.4% for the threesix months ended MarchJune 31,30, 2025. The increase in our estimated annual effective tax rate is primarily related to estimated withholding taxes to be incurred on intercompany dividends by Essent US Holdings, Inc. to its parent company. For the threesix months ended MarchJune 31,30, 2026, income tax expense includes $2.4$6.4 million of discrete tax expense associated with realized and unrealized gains recognized during the period partially offset by $1.1 million excess tax benefits associated with the vesting of common shares and common share units. For the threesix months ended MarchJune 31,30, 2025, income tax expense includes $1.6$2.7 million of discrete tax expense associated with realized and unrealized gains recognized during the period partially offset by $0.7$0.8 million excess tax benefits associated with the vesting of common shares and common share units.

Three and Six Months Ended MarchJune 31,30, 2026 Compared to the Three and Six Months Ended MarchJune 31,30, 2025

For the three months ended MarchJune 31,30, 2026, our Mortgage Insurance segment reported income before income tax expense of $190.1$212.6 million, compared to income before income tax expense of $193.9$220.1 million for the three months ended MarchJune 31,30, 2025. For the six months ended June 30, 2026, our Mortgage Insurance segment reported income before income tax expense of $402.7 million, compared to income before income tax expense of $414.0 million for the six months ended June 30, 2025. The decrease in our operating results during the three and six months ended MarchJune 31,30, 2026 compared to the same periodperiods in 2025 was primarily due to an increase in the provision for losses and a decrease in net premiums earned, partially offset by an increase in income from other invested assets and a decrease in other underwriting and operating expenses.

Net premiums earned in the three and six months ended MarchJune 31,30, 2026 decreased compared to the three and six months ended MarchJune 31,30, 2025 due to a decrease in the average net premium rate partially offset by an increase in our average IIF.2025. The average net premium rate wasdecreased to 0.35% for the three months ended MarchJune 31,30, 2026 compared to 0.36% for the three months ended MarchJune 31,30, 2025 as a result of a decrease in the base premium rate. The average net premium rate decreased to 0.35% for the six months ended June 30, 2026 compared to 0.36% for the six months ended June 30, 2025 due to an increase in ceded premiums as a result of higher ceded losses under our third party quota share arrangements. Our average IIF increased from $244.0$245.7 billion for the three months ended MarchJune 31,30, 2025 to $247.8$248.5 billion for the three months ended MarchJune 31,30, 2026 and from $244.9 billion for the six months ended June 30, 2025 to $248.2 billion for the six months ended June 30, 2026.

The following table presents the components of the change in unearned premiums within our Mortgage Insurance segment for the following yearsperiods:

In the three months ended MarchJune 31,30, 2026 we recorded a provision for losses of $37.6$29.4 million compared to a provision of $30.7$15.3 million for the three months ended MarchJune 31,30, 2025. In the six months ended June 30, 2026 we recorded a provision for losses of $67.0 million compared to a provision of $46.0 million for the six months ended June 30, 2025. The increase in the provision for losses in the three and six months ended MarchJune 31,30, 2026 compared to the same periodperiods in 2025 was primarily due to an increase in the numberresult of defaults as well as an increase in our average reserve per default. The increase in average reserve per default was due to aging of defaults remaining within the mortgage insurance portfolio and an increase in the average RIF per default.

During the three months ended MarchJune 31,30, 2026, the Mortgage Insurance provision for losses and LAE was a provision of $37.6$29.4 million, comprised of $62.8$58.4 million of current year losses partially offset by $25.2$29.0 million of favorable prior years’ loss development. During the three months ended MarchJune 31,30, 2025, the provision for losses and LAE was $30.7$15.3 million, comprised of $48.9$45.1 million of current year losses offset by $18.2$29.8 million of favorable prior years’ loss development.

In bothall periods, the prior years’ loss development was the result of a re-estimation of amounts ultimately to be paid on prior year defaults in the default inventory, including the impact of previously identified defaults that cured.

•Compensation and benefits decreased during the three and six months ended MarchJune 31,30, 2026 compared to the same periodperiods in 2025 primarily due to a decrease in average number of employees during the current period. Compensation and benefits includes salaries, wages and bonus, stock compensation expense, benefits and payroll taxes. The first quarter of each year typically has higher compensation and benefits expense than the subsequent quarters due to payroll taxes on annual bonus payouts and vesting of nonvested stock and stock units, as well as higher stock-based compensation expense.

•Acquisition costs are net of ceding commissions earned on outward reinsurance. The change in acquisition costs during the three and six month periodperiods ended MarchJune 31,30, 2026 compared to the same periodperiods in 2025 resulted from increased ceding commission earned due to increased outward reinsurance of insurance in force under our outstanding quota share arrangements.

•Other expenses include professional fees, travel, marketing, hardware, software, rent, depreciation and amortization and other facilities expenses. The increase in other expenses for the three and six months ended June 30, 2026 compared to the same periods in 2025 was primarily attributable to increases in professional fees.

Reinsurance net premiums earned increased during the three and six month periodperiods ended MarchJune 31,30, 2026 compared to the same periodperiods in 2025 primarily due to premiums earned on the reinsurance of certain property and casualty risks, which Essent Re began writing effective January 1, 2026. Premiums earned also include premiums from Essent Re's participation in the GSE-sponsored mortgage risk share transactions.

The decrease in other income in Reinsurance for the three and six month periodperiods ended MarchJune 31,30, 2026 compared to the same periodperiods in 2025 was due to a decline in third party consulting service revenues.

In the three and six months ended MarchJune 31,30, 2026 we recorded a provision for losses of $9.9$18.7 million and $28.7 million, respectively, compared to a provision of $3$36 thousand and $39 thousand for the three and six months ended MarchJune 31,30, 2025.2025, respectively. The increase in provision for losses and loss adjustment expenses for the three and six month periodperiods ended MarchJune 31,30, 2026 primarily relates to loss provisions recorded for property and casualty premiums earned in the first quarter ofduring 2026. Property and casualty ultimate losses are estimated on premiums earned and the average loss ratios for property and casualty reinsurance are inherently higher than loss ratios on the reinsurance of GSE-sponsored mortgage risk share transactions. Reinsurance reserves as of MarchJune 31,30, 2026 and 2025 were $10.1$27.7 million and $52$88 thousand, respectively.

•Compensation and benefits increased for the three and six month periodperiods ended MarchJune 31,30, 2026 compared to the same periodperiods in 2025 is primarily due to an increase in headcount and incentive compensation. Compensation and benefits includes salaries, wages and bonus, stock compensation expense, benefits and payroll taxes.

•The increase in acquisition costs for the three and six month periodperiods ended MarchJune 31,30, 2026 compared to the same periodperiods in 2025 is primarily due to ceding and brokerage commissions and acquisition costs incurred on property and casualty risks that Essent Re began reinsuring effective January 1, 2026.

•Other expenses increased for the three and six month periodperiods ended MarchJune 31,30, 2026 compared to the same periodperiods in 2025 as a result of increased professional fees incurred with the reinsurance of property and casualty risks beginning in the first quarter of 2026. Other expenses include professional fees, travel, marketing, hardware, software, rent, depreciation and amortization and other facilities expenses.

Three and Six Months Ended MarchJune 31,30, 2026 Compared to the Three and Six Months Ended MarchJune 31,30, 2025

Net premiums earned reported in Corporate & Other relate to premiums earned by our title insurance operations. The increase in net premiums earned is due to an increase in title insurance policies issued in the three and six month periodperiods ended MarchJune 31,30, 2026 compared to the same periodperiods in 2025.

The provision for losses reported in Corporate & Other relates to loss provisions recorded by our title insurance operations. Title insurance reserves were $16.7$16.0 million at MarchJune 31,30, 2026 and $16.9 million at December 31, 2025.

•Compensation and benefits decreased in the threesix months ended MarchJune 31,30, 2026 compared to the same period in 2025 primarily due to decreases in the average number of employees and a decrease in stock based compensation expense. Compensation and benefits includes salaries, wages and bonus, stock compensation expense, benefits and payroll taxes.

•Premium taxes decreased during the threesix months ended MarchJune 31,30, 2026 compared to the same period in 2025 primarily due to $1.0 million of net expense associated with prior year premium tax returns incurred during the first quarter of 2025.

•Other expenses include title and settlement services direct costs, professional fees, travel, marketing, hardware, software, rent, depreciation and amortization and other facilities expenses. Other expenses also includes premiums retained by agents which represents the portion of title insurance premiums retained by our third-party agents pursuant to the terms of their respective agency contracts. Other expenses decreasedincreased in the three and six months ended MarchJune 31,30, 2026 compared to the same periodperiods in 2025 primarily due to decreases in software expenses partially offset by an increase in title expenses associated with an increase in title policies issued.

As of MarchJune 31,30, 2026, we had substantial liquidity with cash of $128.3$74.3 million, short-term investments of $623.0$623.9 million and fixed maturity investments of $5.4 billion. We also had $500 million available capacity under our Revolving Credit Facility. Cash and investments available for sale at the holding companies totaled $1.1 billion at MarchJune 31,30, 2026. In addition, Essent Guaranty is a member of the Federal Home Loan Bank of Pittsburgh (the “FHLBank”) and has access to secured borrowing capacity with the FHLBank to provide Essent Guaranty with supplemental liquidity. Essent Guaranty had no outstanding borrowings with the FHLBank at MarchJune 31,30, 2026.

Our U.S. insurance subsidiaries are subject to certain capital and dividend rules and regulations prescribed by jurisdictions in which they are authorized to operate and, in the case of Essent Guaranty, the GSEs. Under the insurance laws of the Commonwealth of Pennsylvania, the insurance subsidiaries may pay dividends during any twelve-month period in an amount equal to the greater of (i) 10% of the preceding year-end statutory policyholders' surplus or (ii) the preceding year’s statutory net income. The Pennsylvania statute also requires that, without the prior approval of the Pennsylvania Insurance Department, dividends and other distributions may only be paid out of positive unassigned surplus. At MarchJune 31,30, 2026, Essent Guaranty had unassigned surplus of approximately $329.5$301.9 million. As of MarchJune 31,30, 2026, Essent Guaranty could pay additional ordinary dividends in 2026 of $329.5$301.9 million.

Essent Re is subject to certain dividend restrictions as prescribed by the Bermuda Monetary Authority and under certain agreements with counterparties. Class 3B insurers must obtain the BMA's prior approval for a reduction by 15% or more of total statutory capital or for a reduction by 25% or more of total statutory capital and surplus as set forth in its previous year's statutory financial statements. In connection with a quota share reinsurance agreement with Essent Guaranty, Essent Re has agreed to maintain a minimum total equity of $100$100.0 million. As of MarchJune 31,30, 2026, Essent Re had total equity of $1.7$1.6 billion. In connection with its insurance and reinsurance activities, Essent Re is required to maintain assets in trusts for the benefit of its contractual counterparties. See Note 3 to our condensed consolidated financial statements. As of MarchJune 31,30, 2026, Essent Re could pay additional dividends in 2026 of $323.8$223.8 million without prior approval from the BMA.

At MarchJune 31,30, 2026, our insurance subsidiaries were in compliance with these rules, regulations and agreements.

Cash flowflows provided by operating activities totaled $192.0$389.1 million for the threesix months ended MarchJune 31,30, 2026, as compared to $221.6$411.1 million for the threesix months ended MarchJune 31,30, 2025. The decrease in cash flows provided by operating activities was due to the timing of certain premium collections and an increase in claims paidpaid, partially offset by a decrease in prepaid federal income taxes during the threesix months ended MarchJune 31,30, 2026 compared to the same period in 2025.

Cash flows providedused byin investing activities totaled $16.6$11.0 million for the threesix months ended MarchJune 31,30, 2026 compared to $55.5$48.6 million for the threesix months ended MarchJune 31,30, 2025. The decrease in cash flows providedused byin investing activities in the threesix months ended MarchJune 31,30, 2026 compared to threesix months ended MarchJune 31,30, 2025 werewas thelargely resultdue ofto an increase innet cash flows investedinflows from operationsavailable-for-sale and short-term investments, partially offset by a decrease in purchases of other invested assets.