Is Essent Group (ESNT) stock halal?
Screened against AAOIFI Shari’ah Standard 21
No. Essent Group (ESNT) does not pass the AAOIFI Shari’ah Standard 21 screen. Its main business is conventional banking, lending or insurance (SEC industry code 6351 (Surety Insurance)), which AAOIFI Shari’ah Standard 21 excludes (3/4/1). Last checked 18 September 2026.
Essent Group is not compliant under Halal / Islamic guidelines
AAOIFI Shari’ah Standard 21 Financial Audit
Figures from the latest annual report (the SEC filing or, for European companies, the ESEF annual report, where one exists, checked against Yahoo Finance) and a 36-month average market value.
| Test | Standard Limit | Actual Figure | Status |
|---|---|---|---|
| Main business | — | — | Fail |
| Interest-bearing debt | 30% | 9.32% | Pass |
| Cash and interest-bearing investments | 30% | 232.11% | Review |
| Prohibited income | 5% | 91.64% | Review |
| Not just cash and debts | 90% | 166.32% | Review |
Key Findings & Observations
- Its main business is conventional banking, lending or insurance (SEC industry code 6351 (Surety Insurance)), which AAOIFI Shari’ah Standard 21 excludes (3/4/1).Source: Business check
- The cash and interest-bearing investments test couldn’t be settled: The figures give 2.3% and 232.1%, on either side of the limit. Includes long-term investments that may be shares in other companies.Source: AAOIFI Shari'ah Standard 21
- The prohibited income test couldn’t be settled: Only an upper estimate is available, and it is over the limit. Interest income is not reported, so we assume all cash, investments and receivables earned 10%, which is more than they could have.Source: AAOIFI Shari'ah Standard 21
- The not just cash and debts test couldn’t be settled: The figures give 1.7% and 166.3%, on either side of the limit.Source: AAOIFI Shari'ah Standard 21
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Frequently Asked Questions about Essent Group Ltd. (ESNT)
Is Essent Group (ESNT) stock halal?▾
No. Essent Group (ESNT) does not pass the AAOIFI Shari’ah Standard 21 screen. Its main business is conventional banking, lending or insurance (SEC industry code 6351 (Surety Insurance)), which AAOIFI Shari’ah Standard 21 excludes (3/4/1). Last checked 18 September 2026.
What is Essent Group's debt ratio under Islamic finance standards?▾
Under AAOIFI Shari’ah Standard 21, interest-bearing debt must stay under 30% of a company's 36-month average market value. Essent Group's ratio is about 9.3%.
How much dividend purification is required for Essent Group (ESNT) stock?▾
Essent Group does not pass the screen, so purification does not apply: the standard does not permit holding it.
Does Essent Group operate in prohibited business activities?▾
AAOIFI Shari’ah Standard 21 excludes companies whose main business is prohibited, such as alcohol, pork, gambling, conventional interest-based finance and adult entertainment. Essent Group's main business is checked against these. For companies that file with the US SEC, revenue by division is also read from the filing, so a division in a prohibited business is counted. Where the check cannot be settled, the result is shown as Needs Review rather than guessed.
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