In This Article:
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Net Income: $176 million for Q3 2024, compared to $178 million a year ago.
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Earnings Per Share (EPS): $1.65 per diluted share for Q3 2024, compared to $1.66 a year ago.
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Return on Average Equity: 13% annualized for Q3 2024.
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US Mortgage Insurance in Force: $243 billion as of September 30, 2024, a 2% increase from a year ago.
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Persistency Rate: Approximately 87% for the 12-month period.
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Net Premiums Earned: $249 million for Q3 2024.
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Net Investment Income: $57.3 million for Q3 2024, a 2% increase from the previous quarter.
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Provision for Losses and Loss Adjustment Expense: $30.7 million for Q3 2024.
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Default Rate: 1.95% on the US mortgage insurance portfolio as of September 30, 2024.
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Cash and Investments: $6.4 billion as of September 30, 2024.
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GAAP Equity: $5.6 billion as of September 30, 2024.
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Debt-to-Capital Ratio: 8.1% as of September 30, 2024.
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PMIERs Sufficiency Ratio: 186% as of September 30, 2024.
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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
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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.
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The company's US mortgage insurance in force increased by 2% year-over-year to $243 billion, indicating growth in its core business.
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Essent Group Ltd (NYSE:ESNT) maintained a high persistency rate of approximately 87%, which supports stable revenue streams.
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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%.
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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
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Net income for the third quarter of 2024 slightly decreased compared to the same period last year, from $178 million to $176 million.
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Higher mortgage and interest rates have reduced overall mortgage originations, impacting potential growth in new business.
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The default rate on the US mortgage insurance portfolio increased to 1.95%, up from 1.71% in the previous quarter.
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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.
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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.