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Mar 31, 2020

Essent Q1 2020 Earnings Report

Essent reported strong financial results despite facing a challenging business environment due to COVID-19.

Key Takeaways

Essent Group Ltd. reported a net income of $149.5 million, or $1.52 per diluted share, for the quarter ended March 31, 2020, compared to $127.7 million, or $1.30 per diluted share, for the quarter ended March 31, 2019. The company's Board of Directors has declared a quarterly cash dividend of $0.16 per common share.

Insurance in force as of March 31, 2020, was $165.6 billion, compared to $164.0 billion as of December 31, 2019.

New insurance written for the first quarter was $13.5 billion, compared to $15.8 billion in the fourth quarter of 2019.

Net premiums earned for the first quarter were $206.5 million, compared to $207.7 million in the fourth quarter of 2019.

The combined ratio for the first quarter was 24.2%, compared to 25.1% in the fourth quarter of 2019.

Total Revenue
$229M
Previous year: $201M
+14.1%
EPS
$1.52
Previous year: $1.3
+16.9%
Expense Ratio
20.3%
Previous year: 23.1%
-12.1%
Combined Ratio
24.2%
Previous year: 27.1%
-10.7%
New Insurance Written
$13.5B
Gross Profit
$187M
Previous year: $159M
+17.2%
Cash and Equivalents
$31.1M
Previous year: $40.5M
-23.3%
Free Cash Flow
$163M
Previous year: $138M
+18.2%
Total Assets
$4.19B
Previous year: $3.35B
+24.9%

Essent

Essent

Essent Revenue by Segment

Forward Guidance

Essent is focused on facing a challenging business environment as a result of COVID-19, believing its operating model, strong balance sheet, capital, and liquidity will allow it to navigate these times effectively.

Revenue & Expenses

Visualization of income flow from segment revenue to net income