Essent Group Q1 2025 Results: Solid Earnings, Strong Capital

Essent Group (NYSE: ESNT) reported Q1 2025 net income of $175.4 million ($1.69 per diluted share), down slightly from $181.7 million ($1.70) a year ago. The board declared a $0.31/share dividend, payable June 10.

• New Insurance Written: $9.9B (vs. $8.3B in Q1 2024)
• Insurance in Force: $244.7B
• Net Investment Income: $58.2M, +12% YoY
• Loss Ratio: 13.1%; Expense Ratio: 18.7%
• ROE: 12.5%
• PMIERs Sufficiency: 172% with $1.52B excess assets
• Share Buybacks: 3.9M shares repurchased YTD for $218M

Reinsurance and solid credit performance supported earnings despite a sequential dip in NIW.

Essent Group Ltd. – 2024 historical quarterly segment information summary

Essent Group Ltd. published unaudited financial data for 2024, detailing quarterly results for its mortgage insurance segment, corporate and other category, and consolidated operations.

mortgage insurance segment
The mortgage insurance business remained the primary driver of profitability throughout the year.

- Net premiums earned ranged from $227.9 million in the fourth quarter to $235.3 million in the second quarter.
- Net investment income stayed stable around $46 million per quarter.
- Income before income tax peaked at $249.1 million in the second quarter and was $203.6 million in the fourth quarter.
- The loss ratio was lowest in the second quarter at -0.5% and highest in the fourth quarter at 16.3%.
- The expense ratio remained steady between 16.7% and 18.2%.
- The combined ratio was best in the second quarter at 16.2% and reached 33.8% in the fourth quarter due to higher loss provisions.

corporate & other
This segment includes title insurance operations, holding company activities, and non-operating corporate costs. It continued to report losses each quarter.

- Total revenues rose from $23.6 million in the first quarter to $34.3 million in the fourth quarter.
- Operating expenses after allocations increased from $25.0 million in the first quarter to $31.1 million in the fourth quarter.
- Loss before income tax remained relatively stable, ranging between $8.6 million and $9.9 million across the quarters.

consolidated results
Essent’s total company performance reflected solid earnings driven by its mortgage insurance business.

- Total revenues rose each quarter, ending at $315.0 million in the fourth quarter.
- Net premiums earned exceeded $244 million in every quarter.
- Income before income tax peaked in the second quarter at $239.2 million and ended at $195.0 million in the fourth quarter.
- The mortgage insurance segment's strong underwriting performance continued to support consolidated profitability despite losses in the corporate segment.

Essent’s 2024 financials highlight the consistency and strength of its mortgage insurance operations, while corporate and other activities had a modest negative impact on the bottom line.