Why Essent Group Stock Slid by Nearly 8% Today

Essent Group's stock fell nearly 8% after the company reported Q3 2026 earnings that missed analyst expectations. While revenue grew 20% year-over-year to $374 million, net income declined to $1.82 per share, missing the consensus estimate of $1.85. The decline was driven by increased loss provisions and operating expenses, coupled with a rising mortgage default rate that climbed to 2.75% from 2.5% in the previous quarter. Additionally, new mortgage insurance written dipped slightly to $12.1 billion from $12.2 billion year-over-year.