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Sep 30, 2020

Essent Q3 2020 Earnings Report

Essent reported an increase in third quarter earnings compared to the second quarter, driven by a lower loss provision due to a decrease in new COVID-19 default notices.

Key Takeaways

Essent Group Ltd. reported a net income of $124.5 million for the quarter ended September 30, 2020, a decrease compared to $144.6 million for the same quarter in 2019. The company's insurance in force grew to $190.8 billion, and new insurance written for the quarter was $36.7 billion. The Board of Directors has declared a quarterly cash dividend of $0.16 per common share.

Net income for Q3 2020 was $124.5 million, or $1.11 per diluted share, compared to $144.6 million, or $1.47 per diluted share in Q3 2019.

Insurance in force as of September 30, 2020, reached $190.8 billion, up from $161.0 billion as of September 30, 2019.

New insurance written in Q3 2020 totaled $36.7 billion, compared to $18.7 billion in Q3 2019.

The Board of Directors declared a quarterly cash dividend of $0.16 per common share.

Total Revenue
$243M
Previous year: $226M
+7.4%
EPS
$1.11
Previous year: $1.47
-24.5%
Expense Ratio
16.7%
Previous year: 20.4%
-18.1%
Combined Ratio
41.6%
Previous year: 25.3%
+64.4%
New Insurance Written
$36.7B
Gross Profit
$206M
Previous year: $185M
+11.4%
Cash and Equivalents
$119M
Previous year: $49.6M
+139.4%
Free Cash Flow
$202M
Previous year: $159M
+27.6%
Total Assets
$5.11B
Previous year: $3.72B
+37.2%

Essent

Essent

Essent Revenue by Segment

Forward Guidance

No specific forward guidance was provided in the report.

Revenue & Expenses

Visualization of income flow from segment revenue to net income