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Dec 31, 2019

Essent Q4 2019 Earnings Report

Essent Group reported strong financial results for Q4 2019, marked by an increase in net income and a Moody's upgrade of their financial strength rating.

Key Takeaways

Essent Group Ltd. reported a net income of $147.0 million, or $1.49 per diluted share, for the quarter ended December 31, 2019, compared to $128.5 million, or $1.31 per diluted share, for the quarter ended December 31, 2018. The company's Board of Directors declared a quarterly cash dividend of $0.16 per common share.

Insurance in force as of December 31, 2019, was $164.0 billion, compared to $137.7 billion as of December 31, 2018.

New insurance written for the fourth quarter was $15.8 billion, compared to $11.4 billion in the fourth quarter of 2018.

Net premiums earned for the fourth quarter were $207.7 million, compared to $173.3 million in the fourth quarter of 2018.

The expense ratio for the fourth quarter was 19.9%, compared to 22.8% in the fourth quarter of 2018.

Total Revenue
$229M
Previous year: $193M
+18.5%
EPS
$1.49
Previous year: $1.31
+13.7%
Expense Ratio
19.9%
Previous year: 22.8%
-12.7%
Combined Ratio
25.1%
Previous year: 22.2%
+13.1%
New Insurance Written
$15.8B
Gross Profit
$702M
Previous year: $568M
+23.5%
Cash and Equivalents
$71.4M
Previous year: $64.9M
+9.9%
Free Cash Flow
$164M
Previous year: $138M
+18.7%
Total Assets
$3.87B
Previous year: $3.15B
+23.0%

Essent

Essent

Essent Revenue by Segment

Forward Guidance

Essent management expressed optimism about the company's future prospects, citing a favorable operating environment and strong credit performance. However, they also acknowledged potential risks and uncertainties that could impact their expectations.

Revenue & Expenses

Visualization of income flow from segment revenue to net income