HAMILTON, Bermuda - Essent Group Ltd . (NYSE: NYSE:ESNT) announced a stable financial performance for the third quarter of 2024, with net income reported at $176.2 million, or $1.65 per diluted share. This figure is slightly down from the $178.0 million, or $1.66 per diluted share, reported in the same quarter of the previous year.
The company also declared a quarterly cash dividend of $0.28 per common share, payable on December 11, 2024, to shareholders of record as of December 2, 2024.
Mark A. Casale, Chairman and Chief Executive Officer, expressed satisfaction with the third-quarter results, attributing the strong returns and growing book value per share to the company's operational model and the favorable effects of interest rates on persistency, as well as growth in the investment portfolio.
Key financial highlights include the consistency of new insurance written at $12.5 billion for the third quarter of 2024, mirroring both the previous quarter and the same quarter in 2023. The insurance in force as of September 30, 2024, stood at $243.0 billion, showing a slight increase from $240.7 billion as of June 30, 2024, and $238.7 billion as of September 30, 2023.
The net investment income for the nine months ended September 30, 2024, saw a significant increase of 22% from the comparable period in 2023, totaling $165.5 million.
In September, Essent closed its 10th mortgage insurance-linked note transaction, Radnor Re 2024-1, which provides $363 million of collateralized reinsurance coverage for new insurance written from July 2023 through July 2024.
Management will discuss these results in a conference call scheduled for 10:00 AM Eastern time today.
This article is based on a press release statement from Essent Group Ltd.
In other recent news, eSentire, a cybersecurity firm, is being considered for sale by its owners, including investment firms Warburg Pincus, Caisse de dépôt et placement du Québec (CDPQ), and Georgian. The sale could potentially value the company at around $1 billion, inclusive of debt. Evercore, an investment bank, has been engaged to assist with the potential sale process, which is expected to attract interest from other private equity entities.
Meanwhile, Essent Group, a mortgage insurance firm, has seen its shares target upgraded by RBC Capital Markets, driven by high reserve releases. The firm has noted Essent's continued strength, citing low default levels and significant reserve releases. RBC Capital Markets also anticipates that Essent Group will continue its share buyback program in the near term.
In addition, Essent Group reported a considerable increase in net income for the second quarter of 2024, rising to $204 million from the previous year's $172 million. The company's US mortgage insurance in force also saw a slight uptick, reaching $241 billion. These developments are supported by the company's robust credit profile, exemplified by a weighted average FICO score of 746.
These are the recent developments for the companies.
InvestingPro Insights
Essent Group Ltd.'s (NYSE: ESNT) solid financial performance in Q3 2024 is further supported by data from InvestingPro. The company's P/E ratio of 8.63 indicates that it's trading at a low earnings multiple, which aligns with one of the InvestingPro Tips suggesting that ESNT is "Trading at a low P/E ratio relative to near-term earnings growth." This could be attractive for value investors considering the company's stable financial results.
The company's dividend declaration is particularly noteworthy when viewed alongside InvestingPro data. ESNT boasts a dividend yield of 1.87% and has shown impressive dividend growth of 12% over the last twelve months. An InvestingPro Tip highlights that Essent "Has raised its dividend for 5 consecutive years," underscoring the company's commitment to shareholder returns, which is consistent with the quarterly cash dividend announcement in the article.
Moreover, ESNT's revenue growth of 15.09% over the last twelve months and a strong gross profit margin of 90.72% reflect the company's operational efficiency mentioned by CEO Mark A. Casale. These metrics, combined with the InvestingPro Tip that "Analysts predict the company will be profitable this year," reinforce the positive outlook for Essent Group.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights, with 7 more tips available for ESNT on the platform.
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