Essent Group Ltd (ESNT - Free Report) reported first-quarter 2020 operating net income per share of $1.52 cents, which beat the Zacks Consensus Estimate by 23.6%. The bottom line increased 16.9% year over year.
Essent Group recorded total operating revenues of $229 million, which increased 13.9% year over year on higher net investment income (up 3.8%) and net premiums earned (up 16.1%).
Insurance in force increased 15.6% to $165.6 billion.
Persistency, the percentage of insurance remaining in force from one year prior, was 73.9% as of Mar 31, 2020, down 360 basis points (bps) year over year.
New insurance written was $13.5 billion, up 22.7% year over year.
Total expenses increased 2.6% year over year to $52.1 million.
In the quarter under review, loss ratio was 3.9%, which improved 100 basis points year over year.
Essent Group Ltd Price, Consensus and EPS Surprise
Essent Group had $31.1 million in cash, down 56.5% from 2019 end. Total stockholders' equity increased to $3.1 billion, up from nearly $3 billion at 2019 end.
Essent Group had $225 million of term debt outstanding as on Mar 31, 2020 and maintained $75 million of undrawn capacity under the revolving component of its credit facility.
Adjusted book value per share was $30.89 as of Mar 31, 2020.
Return on equity deteriorated 120 basis points to 19.6% at quarter end from 20.8% at 2019 end.
Combined risk-to-capital ratio of the U.S. mortgage insurance business, which includes statutory capital for both Essent Guaranty and Essent Guaranty of PA, was 11.7:1 as of Mar 31, 2020.
Operating cash flow was $163 million in the reported quarter.
The board of directors of Essent Group announced a quarterly cash dividend of 16 cents per share. The dividend will be paid out on Jun 12, 2020, to shareholders of record as of Jun 2.
Essent Group currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Insurance Releases
Among other players from the insurance industry that have reported first-quarter earnings so far, the bottom line of Brown & Brown, Inc. (BRO - Free Report) beat the Zacks Consensus Estimate while that of RLI Corp. (RLI - Free Report) and Travelers Companies (TRV - Free Report) missed the same.
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