Essent Falls as Goldman, Soros Plan to Reduce Stakes in Insurer

Essent Group Ltd., the mortgage insurer backed by billionaire George Soros and Goldman Sachs Group Inc., fell the most since March after saying the company and its investors plan to sell more stock.

Essent dropped $1.19, or 5 percent, to $22.57 at 11:13 a.m. in New York. That compares with a price of $17 in an initial public offering in October 2013.

The insurer plans to sell 6 million shares, and investors including Goldman Sachs and Soros’s Valorina LLC may offer an additional 6 million, the Bermuda-based company said in a filing late yesterday. With the expiration of lock-up periods, investors will be able to unload additional holdings, the company said in a listing of “risk factors” in the document.

“As resale restrictions end, the market price of our common shares could decline if the holders of those shares sell them or are perceived by the market as intending to sell them,” according to the filing.

Valorina, which owns 7.55 million shares, can offer as many as 1.21 million of them in the upcoming sale, according to the filing. Goldman Sachs can offer a maximum of about 563,000 and will hold more than 5 million once the deal is completed.

Before it's here, it's on the Bloomberg Terminal.
LEARN MORE