Essent .(US:ESNT)2021-11-07 09:46Company Overview - Essent Group Ltd is a leading specialty insurer in the U.S housing finance industry, offering mortgage insurance and reinsurance[4] - The company has transformed its business model to a "Buy, Manage & Distribute" approach, utilizing programmatic reinsurance[4] - EssentEDGE®, a dynamic pricing platform, allows for precise credit selection and granular pricing[4] Financial Performance - As of September 30, 2021, Essent's total Insurance In Force (IIF) reached $208.2 billion[4] - The combined risk-to-capital ratio was 10.5:1 as of September 30, 2021[4] - Net income for the quarter was $205.4 million, including income from other invested assets of $39.5 million[5] - The combined ratio was 15.9% and the annualized ROE was 19.9%[5] - Shareholders' equity stood at $4.2 billion[5] - Book value per share has an annualized growth rate of 21.4% from December 31, 2013[7] Market Position and Strategy - Essent maintains a strong market position with an average annual NIW market share of approximately 16% from 2016 through 2020[12] - The company utilizes Credit Risk Transfer (CRT) to manage housing cycles and diversify capital sources[17] - As of September 30, 2021, Essent has access to $2.4 billion in ILN/XOL reinsurance coverage, protecting 75% of its IIF[23] Capital and Liquidity - As of September 30, 2021, GAAP Equity was $4.2 billion[25] - Available liquidity was $513 million in net cash and investments at Essent Group Ltd and Essent US Holdings, Inc[25] - The company maintains conservative financial leverage below 10%[25]