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Mar 31, 2025
Essent Q1 2025 Earnings Report
Reported net income of $175.4 million and diluted earnings per share of $1.69 for the first quarter of 2025
Key Takeaways
Essent Group Ltd. reported a slight decrease in net income and EPS in Q1 2025 compared to the previous year, primarily due to higher losses and expenses. However, the company saw an increase in total revenues, driven by higher net investment income and net premiums earned. New insurance written and insurance in force continued to grow.
Net income for Q1 2025 was $175.4 million, a decrease from $181.7 million in Q1 2024.
Diluted EPS was $1.69 in Q1 2025, slightly down from $1.70 in Q1 2024.
Total revenues increased to $317.6 million in Q1 2025 from $298.4 million in Q1 2024.
New insurance written in Q1 2025 was $9.9 billion, a significant increase from $8.3 billion in Q1 2024.
Revenue by Segment
Forward Guidance
Essent is confident in its ability to continue to generate high-quality earnings and grow book value per share, benefiting from favorable credit performance, elevated portfolio persistency, and higher investment income. The company also entered into reinsurance transactions and repurchased common shares.
Positive Outlook
- Continued favorable credit performance.
- Elevated portfolio persistency.
- Higher investment income.
- Ability to continue to generate high-quality earnings.
- Ability to grow book value per share.
Challenges Ahead
- Potential changes to Fannie Mae and Freddie Mac.
- Failure to continue to meet mortgage insurer eligibility requirements of the GSEs.
- Competition for customers or the loss of a significant customer.
- Lenders or investors seeking alternatives to private mortgage insurance.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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