Essent Group Ltd (ESNT) Q3 2024 Earnings Call Highlights: Resilient Performance Amid Market ...

In This Article:

  • Net Income: $176 million for Q3 2024, compared to $178 million a year ago.

  • Earnings Per Share (EPS): $1.65 per diluted share for Q3 2024, compared to $1.66 a year ago.

  • Return on Average Equity: 13% annualized for Q3 2024.

  • US Mortgage Insurance in Force: $243 billion as of September 30, 2024, a 2% increase from a year ago.

  • Persistency Rate: Approximately 87% for the 12-month period.

  • Net Premiums Earned: $249 million for Q3 2024.

  • Net Investment Income: $57.3 million for Q3 2024, a 2% increase from the previous quarter.

  • Provision for Losses and Loss Adjustment Expense: $30.7 million for Q3 2024.

  • Default Rate: 1.95% on the US mortgage insurance portfolio as of September 30, 2024.

  • Cash and Investments: $6.4 billion as of September 30, 2024.

  • GAAP Equity: $5.6 billion as of September 30, 2024.

  • Debt-to-Capital Ratio: 8.1% as of September 30, 2024.

  • PMIERs Sufficiency Ratio: 186% as of September 30, 2024.

  • Statutory Capital: $3.6 billion with a risk-to-capital ratio of 9.7:1 as of September 30, 2024.

Release Date: November 01, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Essent Group Ltd (NYSE:ESNT) reported a strong net income of $176 million for the third quarter of 2024, demonstrating the resilience of its business model.

  • The company's US mortgage insurance in force increased by 2% year-over-year to $243 billion, indicating growth in its core business.

  • Essent Group Ltd (NYSE:ESNT) maintained a high persistency rate of approximately 87%, which supports stable revenue streams.

  • The credit quality of the insurance portfolio remains robust with a weighted average FICO score of 746 and a low default rate of 1.95%.

  • The company successfully executed its 10th Radnor Re ILN transaction, securing $363 million in fully collateralized excess of loss coverage, enhancing its capital resources.

Negative Points

  • Net income for the third quarter of 2024 slightly decreased compared to the same period last year, from $178 million to $176 million.

  • Higher mortgage and interest rates have reduced overall mortgage originations, impacting potential growth in new business.

  • The default rate on the US mortgage insurance portfolio increased to 1.95%, up from 1.71% in the previous quarter.

  • Potential impacts from Hurricanes Helene and Milton could lead to an uptick in delinquencies in affected areas, although the ultimate financial impact may be muted.

  • The provision for losses and loss adjustment expenses increased significantly to $30.7 million in the third quarter, compared to a benefit in the previous quarter.

Waiting for permission
Allow microphone access to enable voice search

Try again.