Essent

🇧🇲 NYSE:ESNT

Feb 14

•

Dec 31, 2024

Essent Q4 2024 Earnings Report

Key Takeaways

Essent reported a revenue increase of 5.98% year-over-year, driven by a strong rise in investment income. However, net income declined due to higher loss provisions. Operating margin decreased as underwriting expenses rose.

Revenue increased by 5.98% YoY to $315,027,000.

Net income declined 4.25% YoY due to higher provisions for losses.

Operating margin fell to 38.0%, down from 42.1% YoY.

Investment income grew by 11.8% YoY, contributing to overall revenue growth.

Total Revenue

$315M

Previous year: $297M

+6.0%

EPS

$1.58

Previous year: $1.64

-3.7%

Operating Margin

38%

Previous year: 42.1%

-9.7%

Gross Margin

77.6%

Previous year: 78.1%

-0.6%

Provision for Losses

$41M

Previous year: $19.6M

+108.6%

Cash and Equivalents

$131M

Previous year: $142M

-7.3%

Total Assets

$7.11B

Previous year: $6.43B

+10.7%

Essent Revenue

Essent EPS

Essent Revenue by Segment

Essent Revenue by Geographic Location

Forward Guidance

Essent expects stable revenue growth in 2025, supported by investment income and strong credit performance. However, higher claims and macroeconomic factors remain risks.

Positive Outlook

Projected revenue growth of 3% in FY 2025.
Investment income expected to remain strong.
Continued capital returns through share repurchases and dividends.
Stable credit performance in the mortgage insurance portfolio.
Expansion of reinsurance partnerships to manage risk effectively.

Challenges Ahead

Potential for increased mortgage defaults due to economic conditions.
Higher loss provisions may continue into 2025.
Rising interest rates could impact mortgage demand.
Regulatory changes may affect the mortgage insurance market.
Potential volatility in investment income due to market fluctuations.