Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that mea ...

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].