Essent .(ESNT) - 2024 Q4 - Annual Results

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].