Financial Data and Key Metrics Changes - For Q1 2025, the company reported net income of $175 million, a decrease from $182 million a year ago [6] - Diluted earnings per share were $1.69, compared to $1.70 in the same quarter last year [6] - The annualized return on average equity was 12% for the quarter [6] - Consolidated cash and investments as of March 31 were $6.4 billion, with a new money yield over 5% [9] - The annualized investment yield for Q1 was 3.8% [10] Business Line Data and Key Metrics Changes - The U.S. mortgage insurance in force was $245 billion, a 3% increase year-over-year [9] - The mortgage insurance net premium earned for Q1 was $234 million, including $15.5 million from Essent Re [14] - The average base premium rate for the U.S. mortgage insurance portfolio was 41 basis points, consistent with the previous quarter [15] - The default rate on the U.S. mortgage insurance portfolio was 2.19%, down from 2.27% at the end of Q4 2024 [16] Market Data and Key Metrics Changes - The company noted challenges for lenders due to lower originations from higher rates and affordability issues [6][7] - The persistency rate for the mortgage insurance portfolio was 86%, flat from the previous quarter [9] Company Strategy and Development Direction - The company aims to balance a conservative balance sheet while preserving optionality for strategic growth opportunities and optimizing shareholder returns [10] - The management believes that favorable demographic trends and current affordability issues are creating pent-up demand for housing [5] - The company is focused on maintaining strong unit economics and is valuation sensitive regarding share buybacks [11][59] Management's Comments on Operating Environment and Future Outlook - Management expressed a constructive long-term outlook for housing, despite near-term headwinds to consumer spending and economic growth [5] - The management highlighted the importance of income growth to unlock housing supply and indicated that the average age of first-time homeowners is 38, suggesting pent-up demand [29] - The company is well-positioned to navigate the current environment due to the strength of its operating model [21] Other Important Information - The Board approved a common dividend of $0.31 for Q2 2025 [10] - The company repurchased nearly 4 million shares for over $200 million year-to-date through April 30 [11] - The PMIERs sufficiency ratio was strong at 172% with $1.5 billion in excess available assets [18] Q&A Session Summary Question: Affordability cycle for homeownership - Management noted uncertainty in the affordability cycle but indicated that the quality of borrowers remains strong due to current conditions [25][26] Question: Managing risk amid macro uncertainty - Management stated that pricing adjustments are made based on micro factors and that they are in a wait-and-see mode regarding macroeconomic impacts [37][39] Question: Buybacks in Q1 versus April - The company repurchased 2.8 million shares for $157 million in Q1 and 1.1 million shares for $61 million in April [46] Question: Changes in unit economics over the last few years - Management indicated that unit economics have remained strong, with pricing increases observed in 2022 [55][56] Question: Update on the title business - Management expressed confidence in the title business, noting it is positioned for growth when interest rates decline [66][68] Question: Dividend flows from underwriting companies - Management indicated that they will continue to maximize dividends from both entities, subject to credit conditions [75][79]

Financial Data and Key Metrics Changes - For Q1 2025, the company reported net income of $175 million, a decrease from $182 million a year ago, with diluted earnings per share of $1.69 compared to $1.70 a year ago [5][11] - The annualized return on average equity was 12% for the quarter [5] - Consolidated cash and investments as of March 31 were $6.4 billion, with a new money yield over 5% [7][8] - The annualized investment yield for Q1 was 3.8% [8] Business Line Data and Key Metrics Changes - The U.S. mortgage insurance in force was $245 billion, a 3% increase year-over-year [7] - The mortgage insurance net premium earned for Q1 was $234 million, including $15.5 million from Essent Re [13] - The average base premium rate for the U.S. mortgage insurance portfolio was 41 basis points, consistent with the previous quarter [14] - The default rate on the U.S. mortgage insurance portfolio was 2.19%, down from 2.27% at the end of Q4 2024 [15] Market Data and Key Metrics Changes - The twelve-month persistency rate as of March 31 was 86%, unchanged from the previous quarter [7] - The weighted average FICO score of the insurance in force was 746, with a weighted average original LTV of 93% [7] Company Strategy and Development Direction - The company aims to balance a conservative balance sheet while preserving optionality for strategic growth opportunities and optimizing shareholder returns [8] - The management believes that favorable demographic trends and current affordability issues are creating pent-up demand for housing [4] - The company is focused on maintaining strong unit economics and is valuation sensitive regarding share buybacks [10][56] Management's Comments on Operating Environment and Future Outlook - Management expressed a constructive long-term outlook for housing, despite anticipating near-term headwinds to consumer spending and economic growth [4] - The company is well-positioned to navigate the current environment due to the strength of its operating model and high credit quality of its insured portfolio [4][20] - Management noted that the average age of first-time homeowners is 38, indicating significant pent-up demand for housing [27] Other Important Information - The Board approved a common dividend of $0.31 for Q2 2025 [9] - The company repurchased nearly 4 million shares for over $200 million year-to-date through April 30 [10][19] - The PMIER sufficiency ratio was strong at 172% with $1.5 billion in excess available assets [17] Q&A Session Summary Question: Thoughts on affordability cycle for homeownership - Management noted uncertainty in the affordability cycle but highlighted that the quality of borrowers remains strong due to current economic conditions [23][24] Question: Managing risk amid macro uncertainty - Management indicated that pricing adjustments have been made in certain markets, but a wait-and-see approach is being taken regarding macroeconomic impacts [35][36] Question: Credit loss expectations - Management confirmed that the default rate is expected to remain within the 2% to 3% range, with current rates at the lower end of that spectrum [38] Question: Buyback details - The company repurchased 2.8 million shares for $157 million in Q1 and an additional 1.1 million shares for $61 million in April [43][44] Question: Dividend flows from underwriting companies - Management stated that dividends will continue from both entities, subject to credit conditions remaining stable [72][74]

Financial Performance - Net income for 1Q25 was $1754 million, compared to $1679 million in 4Q24[5] - Annualized ROE increased to 125% in 1Q25 from 119% in 4Q24[5] - Shareholders' equity reached $57 billion in 1Q25, up from $56 billion in 4Q24[5] - The combined ratio improved to 318% in 1Q25 from 338% in 4Q24[5] - Book value per share grew to $5522 in Mar-25, with an annualized growth rate of 183% since December 31, 2013[11] Portfolio and Risk Management - U S Mortgage Insurance In Force (IIF) increased to $2447 billion in 1Q25 from $2436 billion in 4Q24[5] - New Insurance Written (NIW) was $99 billion in 1Q25, compared to $122 billion in 4Q24[5] - The portfolio default rate decreased to 219% in 1Q25 from 227% in 4Q24[6] - 97% of IIF is subject to reinsurance protection as of March 31, 2025[6,33,36] - Risk-to-capital ratio improved to 96:1 in 1Q25 from 98:1 in 4Q24[6] Capital Distribution - The company repurchased 39 million common shares for $218 million year-to-date through April 30th[9] - A quarterly dividend of $031 per common share was approved for 2Q25[9]