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Mar 31, 2023

Essent Q1 2023 Earnings Report

Essent's Q1 2023 financial results benefited from rising interest rates and favorable credit performance.

Key Takeaways

Essent Group Ltd. reported a net income of $170.8 million for the quarter ended March 31, 2023, with diluted earnings per share of $1.59. The company's results were positively influenced by rising interest rates and strong credit performance. The Board of Directors has declared a quarterly cash dividend of $0.25 per common share.

Essent's first quarter 2023 financial results benefited from rising interest rates and favorable credit performance.

New insurance written for the first quarter of 2023 was $12.9 billion.

Insurance in force as of March 31, 2023 was $231.5 billion.

The combined ratio for the first quarter of 2023 was 22.7%.

Total Revenue
$256M
Previous year: $265M
-3.2%
EPS
$1.59
Previous year: $1.59
+0.0%
Expense Ratio
22.8%
Previous year: 18.9%
+20.6%
Combined Ratio
22.7%
Previous year: -30.7%
-173.9%
New Insurance Written
$12.9B
Previous year: $12.8B
+0.8%
Gross Profit
$211M
Previous year: $199M
+5.8%
Cash and Equivalents
$68.6M
Previous year: $204M
-66.3%
Free Cash Flow
$184M
Previous year: $180M
+2.5%
Total Assets
$5.93B
Previous year: $5.59B
+6.1%

Essent

Essent

Forward Guidance

The press release includes forward-looking statements which are subject to known and unknown risks and uncertainties, many of which may be beyond the company's control.

Challenges Ahead

  • Changes in or to Fannie Mae and Freddie Mac
  • Failure to continue to meet the mortgage insurer eligibility requirements of the GSEs
  • Competition for customers
  • Lenders or investors seeking alternatives to private mortgage insurance
  • Deteriorating economic conditions (including inflation, rising interest rates and other adverse economic trends)