Essent .(US:ESNT)2025-11-07 12:16Financial Performance - Net income for Q3 2025 was $164.2 million, or $1.67 per diluted share, a decrease from $176.2 million, or $1.65 per diluted share in Q3 2024[2] - Total revenues for Q3 2025 were $311.8 million, compared to $316.6 million in Q3 2024[14] - The net income for the quarter was $164,215,000, down from $195,339,000 in the previous quarter, representing a decline of 15.9%[18] - Total revenues for the quarter ended September 30, 2025, were $311,830,000, a decrease of 2.0% from $319,143,000 in the previous quarter[18] - The income before income tax expense for the consolidated segment was $199,159 thousand in September 2025, down from $231,175 thousand in June 2025, a decline of approximately 13.9%[61] Insurance Metrics - New insurance written in Q3 2025 was $12.2 billion, down from $12.5 billion in both Q2 2025 and Q3 2024[9] - The total New Insurance Written (NIW) was $12,233,252, a decrease from $12,513,695 for the same period in 2024, representing a decline of 2.2%[24] - The total Insurance in Force (IIF) as of September 30, 2025, was $248,808,341, compared to $242,976,043 in September 2024, reflecting an increase of 2.4%[26] - The total NIW for purchases was 90.5% in the three months ended September 30, 2025, down from 97.0% in the same period of 2024[24] - The total original insurance written from 2010 to 2025 reached $659.92 billion, with remaining insurance in force at $248.81 billion, representing 37.7% of original insurance[30] Investment Performance - Net investment income for the nine months ended September 30, 2025, was $177.3 million, up 7% from the same period in 2024[9] - The total investments available for sale reached $6,089,865,000 as of September 30, 2025, compared to $5,876,721,000 at the end of 2024[46] - The pre-tax investment income yield for the nine months ended September 30, 2025, was 3.83%[50] - Realized investment losses were recorded at $(425) thousand in September 2025, compared to $(129) thousand in June 2025, indicating a worsening in investment performance[61] Loss Provisions and Claims - The provision for losses and LAE increased to $44.9 million in Q3 2025 from $30.7 million in Q3 2024[14] - The provision for losses and LAE increased significantly to $44,922,000 from $17,055,000 in the previous quarter, marking a rise of 163.5%[18] - The total reserves for losses and LAE at the end of the period is $379,548,000, up from $345,952,000 at the end of the previous quarter[42] - The average amount paid per claim increased to $56,000 in Q3 2025 from $42,000 in Q2 2025[41] - The loss ratio for the Mortgage Insurance segment was 19.1% for the quarter ended September 30, 2025, compared to 12.9% for the same quarter in 2024, indicating an increase in claims relative to premiums earned[58] Capital and Reserves - The combined statutory capital for U.S. Mortgage Insurance subsidiaries was $3,732,465 thousand as of September 30, 2025, an increase from $3,584,580 thousand as of September 30, 2024, showing a growth of 4.1%[52] - The risk-to-capital ratio for Essent Guaranty, Inc. improved to 8.9:1 as of September 30, 2025, down from 10.0:1 as of September 30, 2024, indicating a stronger capital position[52] - The PMIERs sufficiency ratio was 177% as of September 30, 2025, compared to 189% a year earlier, reflecting a decrease in available assets relative to minimum required assets[52] Shareholder Returns - The company repurchased 8.7 million common shares for $501 million year-to-date through October 31, 2025[9] - A quarterly cash dividend of $0.31 per common share was declared, payable on December 10, 2025[2] - The book value per share increased to $58.86 from $56.98 in the previous quarter, reflecting a growth of 3.3%[18] Default and Performance Metrics - The percentage of loans in default rose to 2.29% from 2.12% in the previous quarter, indicating a deterioration in loan performance[21] - The default rate as of September 30, 2025, is 2.29%, with a 3+ month default rate of 1.49%[44] - As of September 30, 2025, the default inventory increased to 18,583 from 17,255 in the previous quarter, with new defaults of 10,357 reported[41] - The cure rate for new defaults as of September 30, 2025, is 26%, a significant decrease from 60% in the previous quarter[41]