Financial Performance - Net premiums earned for the three months ended March 31, 2025, were $245,848 thousand, slightly up from $245,590 thousand in the same period of 2024, indicating a growth of 0.1%[19] - Total revenues rose to $317,558 thousand for Q1 2025, compared to $298,357 thousand in Q1 2024, marking an increase of 6.4%[19] - Net income for Q1 2025 was $175,433 thousand, down from $181,719 thousand in Q1 2024, representing a decrease of 3.5%[19] - The company reported a comprehensive income of $247,171 thousand for Q1 2025, compared to $159,953 thousand in Q1 2024, reflecting a significant increase of 54.4%[19] - Total revenues for the three months ended March 31, 2025, were $317.56 million, compared to $298.36 million for the same period in 2024, representing an increase of approximately 6.4%[182] - Net premiums earned remained largely unchanged at $245.85 million for the three months ended March 31, 2025, compared to $245.59 million for the same period in 2024[183] - Basic earnings per share (EPS) for Q1 2025 was $1.71, slightly down from $1.72 in Q1 2024[97] - Diluted EPS for Q1 2025 was $1.69, compared to $1.70 in the same period last year[97] Assets and Equity - Total assets increased to $7,204,711 thousand as of March 31, 2025, compared to $7,111,649 thousand at December 31, 2024, reflecting a growth of 1.3%[17] - Total stockholders' equity rose to $5,659,306 thousand as of March 31, 2025, compared to $5,603,658 thousand at December 31, 2024, reflecting an increase of 1.0%[17] - Cash at the end of the period increased to $208,066 thousand from $164,255 thousand at the end of Q1 2024, a rise of 26.6%[23] - As of March 31, 2025, total investments available for sale amounted to $5,882.359 million, with an amortized cost of $6,153.624 million, reflecting unrealized losses of $282.386 million[40] - Total assets at fair value as of March 31, 2025, amounted to $5,882,359 thousand, compared to $5,876,721 thousand at the end of 2024[109] Investment Performance - The net investment income for the three months ended March 31, 2025, was $58.2 million, compared to $52.1 million for the same period in 2024, reflecting an increase of approximately 11.5%[51] - The gross investment income for the three months ended March 31, 2025, was $60.0 million, compared to $53.4 million in 2024, marking an increase of approximately 12.3%[51] - Income from other invested assets turned to a profit of $7.4 million in Q1 2025 compared to a loss of $1.9 million in Q1 2024[185] - The company maintains a diversified investment portfolio, with corporate debt securities making up 41.7% of total corporate debt as of March 31, 2025[40] Loss Reserves and Claims - The reserve for losses and LAE increased to $356,653 thousand as of March 31, 2025, compared to $328,866 thousand at December 31, 2024, an increase of 8.4%[17] - The provision for losses and loss adjustment expenses (LAE) increased to $31.29 million for the three months ended March 31, 2025, from $9.91 million in the same period of 2024[182] - The total reserves for losses and LAE at the end of Q1 2025 were $338.1 million, compared to $253.6 million at the end of Q1 2024, reflecting a 33.4% increase[197] - The number of claims paid increased to 153 in Q1 2025, with total claims paid amounting to $6.33 million, up from 123 claims and $3.61 million in Q1 2024[201] Dividends and Share Buybacks - The company declared dividends totaling $31,869 thousand in Q1 2025, compared to $29,906 thousand in Q1 2024, an increase of 6.5%[21] - The company acquired treasury stock amounting to $168,850 thousand in Q1 2025, compared to $13,552 thousand in Q1 2024, indicating a significant increase in share buybacks[23] - Essent Re paid dividends of $100 million and $37.5 million to its parent in the three months ended March 31, 2025 and 2024, respectively, with total equity of $1.8 billion as of March 31, 2025[94] Business Segments and Operations - The company has one reportable business segment, which is Mortgage Insurance, and it operates primarily through its subsidiary Essent Guaranty[32] - The mortgage insurance segment provides private mortgage insurance and reinsurance for U.S. residential properties, with a focus on credit risk management solutions[32] - Total revenues for the Mortgage Insurance segment were $288.9 million for the three months ended March 31, 2025, compared to $274.7 million for the same period in 2024, reflecting an increase of approximately 5.2%[131] - The loss ratio for the Mortgage Insurance segment was 13.1% for the three months ended March 31, 2025, compared to 4.1% for the same period in 2024, indicating a significant increase in losses relative to premiums earned[131] Regulatory and Economic Environment - The company is currently evaluating the impact of recently issued accounting standards on its consolidated financial statements, including ASU 2023-09 and ASU 2024-03[37][38] - The Federal Reserve reduced the target federal funds rate by 100 basis points since September 2024, impacting mortgage interest rates and potentially affecting the company's loss estimates[70] - The corporate income tax enacted in Bermuda will result in a new 15% corporate income tax starting January 1, 2025, but the company expects to qualify for a five-year exemption[144][145] - The company anticipates that legislative and regulatory developments will significantly impact its results and future success in the housing finance industry[142] Future Outlook - The company expects incurred losses and claims to increase as a greater amount of its insurance portfolio reaches the anticipated period of highest claim frequency[159] - The company expects the ultimate number of hurricane-related defaults to be less than non-hurricane-related defaults, with reserves for these defaults remaining materially unchanged as of March 31, 2025[68] - The company anticipates that as it continues to add new customers, its expenses will also continue to increase in line with the level of mortgage insurance and title insurance policies issued[170]

Essent Group (ESNT) Q1 2025 Earnings Call May 09, 2025 10:00 AM ET Company Participants Philip Stefano - Vice President, Investor RelationsMark Casale - Chairman and CEODavid Weinstock - CFO & Senior VPBose George - Managing DirectorGeoffrey Dunn - Partner Conference Call Participants Richard Shane - AnalystTerry Ma - Senior Equity Research AnalystMihir Bhatia - Analyst Operator and thank you for standing by. My name is Regina, and I will be your conference operator today. At this time, I would like to welc ...

Essent Group (ESNT) Q1 2025 Earnings Call May 09, 2025 10:00 AM ET Speaker0 and thank you for standing by. My name is Regina, and I will be your conference operator today. At this time, I would like to welcome everyone to the Essent Group Limited First Quarter Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. I would now like to turn the conference over to Phil Stefano, Investor Relations. P ...

Essent Group (ESNT) came out with quarterly earnings of $1.69 per share, beating the Zacks Consensus Estimate of $1.66 per share. This compares to earnings of $1.70 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 1.81%. A quarter ago, it was expected that this mortgage insurance and reinsurance holding company would post earnings of $1.67 per share when it actually produced earnings of $1.58, delivering a surprise of -5.39%.Ov ...

INVESTOR PRESENTATION 1Q25 ESSENT GROUP LTD. NYSE: ESNT May 9, 2025 o In April, Essent entered into two excess of loss transactions, effective July 1 of each year, with panels of highly rated third- party reinsurers covering 20% of all eligible policies written by Essent Guaranty, Inc. in calendar years 2025 and 2026. ESSENT GROUP LTD. | NYSE: ESNT © 2025 Essent Group Ltd. All rights reserved. | essentgroup.com | 1 Disclaimer This presentation may include "forward-looking statements" which are subject to kn ...

Exhibit 99.1 Essent Group Ltd. Announces First Quarter 2025 Results and Declares Quarterly Dividend HAMILTON, Bermuda--(BUSINESS WIRE)--May 9, 2025--Essent Group Ltd. (NYSE: ESNT) today reported net income for the quarter ended March 31, 2025 of $175.4 million or $1.69 per diluted share, compared to $181.7 million or $1.70 per diluted share for the quarter ended March 31, 2024. Essent also announced today that its Board of Directors has declared a quarterly cash dividend of $0.31 per common share. The divid ...

Essent Group Ltd. ESNT will release earnings results for the first quarter, before the opening bell on Friday, May 9.Analysts expect the Hamilton, Bermuda-based company to report quarterly earnings at $1.65 per share, down from $1.70 per share in the year-ago period. Essent Group projects to report quarterly revenue at $310.79 million, compared to $298.36 million a year earlier, according to data from Benzinga Pro.On Feb. 14, Essent Group posted weaker-than-expected earnings for the fourth quarter.Essent Gr ...

Core Viewpoint - The market anticipates a year-over-year decline in earnings for Essent Group despite higher revenues, with the actual results being crucial for stock price movement [1][2]. Company Summary - Essent Group is expected to report quarterly earnings of $1.66 per share, reflecting a -2.4% change year-over-year, while revenues are projected to be $311.24 million, an increase of 4.3% from the previous year [3]. - The consensus EPS estimate has been revised down by 0.29% over the last 30 days, indicating a bearish sentiment among analysts regarding the company's earnings prospects [4][10]. - The Most Accurate Estimate for Essent Group is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -3.81%, combined with a Zacks Rank of 4, making it challenging to predict an earnings beat [11][10]. Earnings Surprise History - In the last reported quarter, Essent Group was expected to post earnings of $1.67 per share but delivered only $1.58, resulting in a surprise of -5.39% [12]. - Over the past four quarters, the company has beaten consensus EPS estimates twice [13]. Industry Comparison - In the Zacks Insurance - Property and Casualty industry, Palomar is expected to report earnings of $1.59 per share, indicating a year-over-year increase of +45.9%, with revenues projected at $171.76 million, up 48.7% from the previous year [17]. - Palomar's consensus EPS estimate has been revised up by 1.3% in the last 30 days, leading to a positive Earnings ESP of 6.29%, suggesting a likely earnings beat [18].

Financial Performance - For Q4 2024, Essent Group reported net income of $167.9 million, or $1.58 per diluted share, a decrease from $175.4 million, or $1.64 per diluted share in Q4 2023[1]. - Full year 2024 net income increased to $729.4 million, or $6.85 per diluted share, compared to $696.4 million, or $6.50 per diluted share in 2023, representing a 4.3% increase in earnings per share[1]. - Net income for Q4 2024 was $167,900,000, down 4.3% from $176,175,000 in Q3 2024[18]. - The company reported a basic earnings per share of $1.60 for Q4 2024, a decrease from $1.67 in Q3 2024[18]. - Return on average equity for 2024 was 13.6%, down from 14.6% in 2023[16]. - The return on average equity (annualized) was 11.9% in Q4 2024, down from 12.8% in Q3 2024[18]. - The loss ratio for the year ended December 31, 2024, was reported at 16.6%, significantly higher than 7.9% in 2023[55]. - The expense ratio increased to 28.7% for the year ended December 31, 2024, compared to 27.0% in 2023[55]. - The combined ratio for the year ended December 31, 2024, was 45.3%, up from 34.9% in 2023, indicating a decline in operational efficiency[55]. Insurance Metrics - New insurance written in Q4 2024 was $12.2 billion, down from $12.5 billion in Q3 2024 but up from $8.8 billion in Q4 2023[9]. - The total New Insurance Written (NIW) for the three months ended December 31, 2024, was $12,220,968, a significant increase from $8,769,160 for the same period in 2023, representing a growth of 39.8%[25]. - The percentage of NIW by credit score shows that 47.1% of new insurance was written for borrowers with a credit score of 760 and above, up from 42.3% in the previous year[25]. - The NIW for purchase transactions constituted 88.3% in Q4 2024, a notable increase from 98.7% in Q4 2023, while refinance transactions rose to 11.7% from 1.3%[25]. - The total Insurance in Force (IIF) as of December 31, 2024, was $243,645,423, compared to $239,078,262 at the end of 2023, marking a year-over-year increase of 1.5%[27]. - The average insurance in force at the end of Q4 2024 was $243,236,830,000, an increase from $242,065,632,000 in Q3 2024[21]. - The percentage of loans in default increased to 2.27% in Q4 2024, up from 1.95% in Q3 2024[21]. - The cumulative cure rate decreased to 23% as of December 31, 2024, compared to 62% in the previous quarter[42]. Investment Performance - Net investment income for the full year 2024 was $222.1 million, reflecting a 19% increase from 2023[9]. - The total investments available for sale increased to $5,876,721,000 as of December 31, 2024, compared to $5,263,739,000 at the end of December 2023[46]. - Total investments available for sale increased to $5,876,721 thousand as of December 31, 2024, up from $5,263,739 thousand in 2023, representing a growth of 11.6%[47]. - The pre-tax investment income yield for the year ended December 31, 2024, was 3.74%[47]. - Corporate debt securities represented 30.3% of total investments available for sale as of December 31, 2024, up from 24.6% a year earlier[46]. Shareholder Actions - Essent repurchased over 2 million common shares for approximately $118 million during Q4 2024 and January 2025[9]. - The Board approved a $500 million share repurchase authorization effective through year-end 2026[9]. Risk and Default Metrics - The U.S. mortgage insurance provision for losses and loss adjustment expenses was $37.2 million in Q4 2024, including $8 million related to defaults from Hurricanes Helene and Milton[9]. - The default rate as of December 31, 2024, was reported at 2.27%, an increase from 1.80% at the end of December 2023[44]. - The average amount paid per claim increased to $42,000 in the December 2024 quarter, up from $32,000 in the previous quarter[42]. - The total amount paid for claims in the December 2024 quarter was $7,740,000, compared to $5,749,000 in the previous quarter[42]. - The percentage of policies in default with two missed payments was 36% as of December 31, 2024, compared to 34% a year earlier[44]. Capital and Assets - Total assets as of December 31, 2024, were $7.11 billion, up from $6.43 billion in 2023[16]. - Combined statutory capital for U.S. Mortgage Insurance Subsidiaries reached $3,594,381 thousand as of December 31, 2024, compared to $3,376,117 thousand in 2023, reflecting an increase of 6.5%[49]. - The combined net risk in force rose to $35,159,976 thousand as of December 31, 2024, from $34,549,500 thousand in 2023, indicating a growth of 1.8%[49]. - Holding company net cash and investments available for sale increased to $1,052,900 thousand as of December 31, 2024, from $693,507 thousand in 2023, marking a substantial increase of 51.8%[47].

Financial Performance - For the year ended December 31, 2024, the company generated new insurance written (NIW) of approximately $45.6 billion, a decrease of 4.4% from $47.7 billion in 2023 and a significant decline of 27.8% from $63.1 billion in 2022[30]. - The U.S. residential mortgage origination volume in 2024 was estimated at $1.78 trillion, with $1.29 trillion in purchase originations and $0.49 trillion in refinancing originations[36]. - The company’s U.S. mortgage insurance subsidiary, Essent Guaranty, Inc., holds financial strength ratings of A3 (Moody's), A- (S&P), and A (AM Best), indicating strong financial stability[30]. - The U.S. mortgage insurance portfolio in force as of December 31, 2024, totals $243,645,423 thousand, reflecting a 1.5% increase from $239,078,262 thousand in 2023[64]. - The top ten customers generated 50.2% of new insurance written (NIW) on a flow basis in 2024, up from 39.9% in 2023[90]. Market Presence - As of December 31, 2024, the company had approximately $243.6 billion of private mortgage insurance in force, indicating a stable market presence[30]. - Private mortgage insurance represented an estimated 41% of the total insured market in 2024, covering 17% of the total U.S. mortgage origination volume[40]. - The private mortgage insurance industry has more than doubled its share of the total insured market since 2009, reflecting a recovery from the financial crisis[40]. - The GSEs held or guaranteed approximately $6.7 trillion, or 46.9%, of all U.S. residential mortgage debt outstanding as of September 30, 2024[34]. - The U.S. residential mortgage market had over $14.2 trillion of debt outstanding as of September 30, 2024, highlighting the scale of the market[33]. Risk Management - The company has established risk management controls to reduce financial volatility and has a risk management framework that encompasses major risks including mortgage and title insurance portfolios[104][105]. - The company continues to monitor and assess the impact of economic conditions on defaults, with servicers expected to adhere to established protocols to mitigate risks[83]. - The weighted average life of the U.S. mortgage insurance portfolio was 33.3 months as of December 31, 2024, with expectations of increased defaults as the portfolio seasons[86]. - The company expects favorable default rates and losses compared to historical experiences due to improved underwriting practices since the 2007-2008 financial crisis[86]. - The company utilizes a credit risk rule engine to ensure prudent risk acquisition and adequate return on capital through established underwriting guidelines[107]. Default and Delinquency - As of December 31, 2024, 18,439 insured loans were in default, representing approximately 2.27% of the total policies in force, an increase from 14,819 loans in default (1.80%) as of December 31, 2023[87]. - The number of loans in default increased by 3,620 during 2024, including 2,119 defaults identified as hurricane-related defaults[87]. - The gross risk in force (RIF) by FICO score indicates that loans with a score of 760 and above represent 40.3% of the total RIF in 2024, compared to 40.2% in 2023[67]. - The gross RIF by LTV shows that 56.3% of the total RIF is in the 90.01% to 95.00% range in 2024, an increase from 55.0% in 2023[69]. Investment Strategy - The investment portfolio represents 88.8% of total assets as of December 31, 2024, focusing on capital preservation and generating investment income[133]. - The company has adopted an investment policy with specific limits on asset sectors, credit ratings, and geographic concentration, reviewed quarterly by the board's investment committee[134]. - The current investment strategy emphasizes selecting fixed income securities and maintaining liquidity to meet financial obligations[135]. - As of December 31, 2024, substantially all investments available for sale were managed by external asset managers[136]. - The company allocates a small percentage of its portfolio to limited partnership investments in real estate, consumer credit, and traditional venture capital and private equity investments[137]. Title Insurance Operations - The company’s title insurance operations were established through acquisitions of Agents National Title Insurance Company and Boston National Title, expanding its service offerings[27]. - Title insurance policies are essential for real estate transactions, providing protection against title defects and typically covering the mortgage loan balance or property purchase price[119]. - The title insurance industry is influenced by macroeconomic factors such as GDP growth, interest rates, and housing market dynamics, affecting overall revenues[116]. - The company has expanded its title insurance operations through acquisitions, including Agents National Title Insurance Company and Boston National Title[113]. Regulatory Environment - The Gramm-Leach-Bliley Act imposes privacy and data security requirements on financial institutions, including obligations to protect consumers' nonpublic personal information[152]. - The Dodd-Frank Act amended certain provisions of the Truth In Lending Act and the Real Estate Settlement Procedures Act, impacting the company's business prospects[160]. - The Consumer Financial Protection Bureau regulates the offering and provision of consumer financial products, including residential mortgages, under Federal law[161]. - The QM Rule establishes that a loan is deemed a qualified mortgage if the annual percentage rate does not exceed the average prime offer rate by 1.5 percentage points or more[162]. - The Dodd-Frank Act requires a securitizer to retain at least 5% of the risk associated with securitized mortgage loans, unless the loan is a qualified residential mortgage or insured by specified Federal agencies[164]. Workforce and Corporate Structure - As of December 31, 2024, the company had a total of 625 employees, with 618 based in the U.S. and 7 in Bermuda[201]. - Approximately 67% of the workforce comprises women and minorities as of December 31, 2024[207]. - The company emphasizes a diverse and inclusive workforce to enhance its business operations[206]. - The company invests significantly in employee development and training programs[204]. - The company is organized as a limited liability company under the laws of Bermuda since July 1, 2008[208]. Competitive Landscape - The private mortgage insurance industry is facing intense competition, with six private mortgage insurers currently approved to write business for the GSEs[212]. - Alternatives to private mortgage insurance, such as government-supported programs, may reduce demand for private mortgage insurance products[218]. - The ability to write new mortgage insurance business is dependent on the origination volume of low down payment mortgages, which may decline due to various factors[224]. - Government-supported mortgage insurance programs may increase their market share, affecting the competitive position of private mortgage insurers[219]. - The company's insurance writing capacity could be adversely affected if lenders and investors opt for alternatives to private mortgage insurance[216].