Net premiums written surged 65% year-over-year to $394.7 million.
Mortgage insurance loss ratio increased from 14.1% to 17.4%.
Repurchased 2.6 million shares for $157 million in the first quarter.
Strategic expansion into property and casualty reinsurance starting January 2026.
The Q1 2026 filing presents a company at a crossroads between aggressive expansion and maturing risk. On one hand, Essent is successfully scaling its operations and returning significant capital to shareholders, with net premiums written increasing substantially. On the other hand, the rise in loss provisions and the deterioration of the combined ratio indicate that the cost of this growth may be higher than previously anticipated. The transition into P&C reinsurance adds a new layer of complexity and risk that will be critical to monitor. Ultimately, the investment thesis hinges on whether the operational scale and diversification can outpace the natural seasoning of the mortgage portfolio. While the current liquidity position remains strong, the shift toward higher reserves per default and the introduction of off-balance sheet volatility suggest a transition from a low-risk growth phase to a more volatile maturity phase. Investors must weigh the attractive dividend and buyback yield against the potential for increased claims and regulatory capital surcharges.