Essent Group (ESNT) risk factors

Non-mortgage reinsurance now adds catastrophe, underwriting, reserving, and licensing risks, including Lloyd’s-market exposures.

Private mortgage insurance business depends heavily on relationships with large lenders and GSE policies. Revenues fluctuate based on low down payment origination volumes and interest rate shifts. Loss reserves are established only upon loan default rather than modeled ultimate losses. Operations are subject to extensive multi-jurisdictional regulation and complex international tax rules.