Fri, May 9, 9:15 PM (9 days ago)
**Essent Group Ltd. (ESNT) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $317.6 million, up from $298.4 million in Q1 2024. - **Net Income:** $175.4 million, slightly down from $181.7 million in Q1 2024. - **Earnings per Share (EPS):** $1.71, down from $1.72 in Q1 2024. - **Cash Flow:** Operating cash flow was $221.6 million, up from $216.9 million in Q1 2024. - **Profit Margins:** Net margin was 55.2%, down from 60.9% in Q1 2024. - **Cash & Investments:** $6.4 billion in cash and investments, up from $5.8 billion in Q1 2024. **Key Metrics & Trends:** - **New Insurance Written (NIW):** $9.9 billion, up from $8.3 billion in Q1 2024. - **Insurance in Force (IIF):** $244.7 billion, up from $238.5 billion in Q1 2024. - **Persistency Rate:** 85.7%, indicating policy retention. - **Loss Ratio:** 13.1%, up from 4.1% in Q1 2024, due to increased defaults. - **Expense Ratio:** 18.7%, up from 18.2% in Q1 2024. - **Combined Ratio:** 31.8%, up from 22.3% in Q1 2024. **Uncertainties & Future Operations Impact:** - **Interest Rates:** Elevated rates may affect home sales and delinquencies. - **Natural Disasters:** Hurricanes and wildfires may impact claims and reserves. - **Regulatory Changes:** Updates to PMIERs and other regulations may affect capital requirements. - **Economic Conditions:** Inflation and employment trends may influence defaults and claims. **Management's Outlook:** - Essent Group expects to maintain compliance with regulatory capital requirements. - The company plans to continue investing in growth and innovation. - Management remains focused on managing risks and maintaining financial strength. **Conclusion:** Essent Group Ltd. reported a solid quarter with increased revenues and cash flow, but faced challenges with higher loss and expense ratios. The company is well-positioned to navigate uncertainties and continue its growth trajectory.