Essent Group Ltd ( (ESNT) ) has released its Q4 earnings. Here is a breakdown of the information Essent Group Ltd presented to its investors.
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Essent Group Ltd., a Bermuda-based company, provides private mortgage insurance, reinsurance, and title insurance to support the housing finance industry. In its latest earnings report, Essent announced a net income of $167.9 million for the fourth quarter of 2024, a slight decrease from the previous year’s fourth quarter, while the full year 2024 net income increased to $729.4 million compared to 2023. The company declared a quarterly cash dividend increase to $0.31 per share.
Essent Group’s financial highlights reveal an increase in new insurance written, with $12.2 billion in the fourth quarter of 2024, compared to $8.8 billion in the same quarter of 2023. The insurance in force grew to $243.6 billion by the end of 2024. Notably, net investment income rose by 19% for the year. The company also repurchased over 2 million shares and announced a new $500 million share repurchase authorization.
Essent’s strategic moves include entering into forward quota share transactions with third-party reinsurers for 2025 and 2026, covering 25% of the risk of eligible policies. Additionally, the company’s provision for losses due to U.S. mortgage insurance was impacted by defaults related to Hurricanes Helene and Milton.
Looking ahead, Essent Group is confident in its ability to generate strong returns and grow its book value per share, as indicated by its increased dividend and share repurchase plans, positioning the company for continued stability and growth in the mortgage insurance market.
