Essent Group Report Q2 Net Income Of $111.8M

August 5, 2018 | 0 Comments

Bermuda-based Essent Group Ltd. reported net income for the quarter ended June 30, 2018 of $111.8 million or $1.14 per diluted share, compared to $72.1 million or $0.77 per diluted share for the quarter ended June 30, 2017. As of June 30, 2018, Essent had insurance in force of $122.5 billion and consolidated stockholders’ equity of $2.1 billion.

“During the second quarter we continued to build a high credit quality and profitable mortgage insurance portfolio,” said Mark Casale, Chairman and Chief Executive Officer.

“The growth of our insurance in force coupled with our ability to utilize multiple forms of capital to insure risk in both the U.S. and Bermuda demonstrates that the Essent franchise is well positioned to play a significant role in the housing finance system while also producing high quality earnings and strong returns for our shareholders.”

Financial Highlights:

  • Insurance in force as of June 30, 2018 was $122.5 billion, compared to $95.5 billion as of June 30, 2017.
  • New insurance written for the second quarter was $12.9 billion, compared to $11.4 billion in the second quarter of 2017.
  • Net premiums earned for the second quarter were $157.0 million, compared to $126.6 million in the second quarter of 2017.
  • The expense ratio for the second quarter was 23.2%, compared to 28.2% in the second quarter of 2017.
  • The provision for losses and LAE for the second quarter was $1.8 million, consistent with the second quarter of 2017.
  • The percentage of loans in default as of June 30, 2018 was 0.64%, compared to 0.41% as of June 30, 2017.
  • The combined ratio for the second quarter was 24.4%, compared to 29.6% in the second quarter of 2017.
  • The consolidated balance of cash and investments at June 30, 2018 was $2.6 billion, including cash and investment balances at Essent Group Ltd. of $76.0 million.
  • The combined risk-to-capital ratio of the U.S. mortgage insurance business, which includes statutory capital for both Essent Guaranty, Inc. and Essent Guaranty of PA, Inc., was 14.0:1 as of June 30, 2018.
  • Essent Reinsurance Ltd. reinsured a total of $45.3 million of risk in the second quarter of 2018.
  • As of June 30, 2018, Essent Guaranty, Inc. had total PMIERs available assets of $1.74 billion, which compares to risk-based required assets under PMIERs of $1.35 billion.
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