Essent Group Ltd. reported its financial results for the first quarter of 2025, revealing total revenues of $317.6 million, a 6.4% increase from $298.4 million in the same period of 2024. The company's net premiums earned remained relatively stable at $245.8 million, compared to $245.6 million a year earlier. However, net income decreased to $175.4 million, down from $181.7 million in the prior year, resulting in diluted earnings per share of $1.69, slightly lower than $1.70 in the previous year.
The company experienced a notable increase in its provision for losses and loss adjustment expenses (LAE), which rose to $31.3 million from $9.9 million in the prior year. This increase was attributed to a rise in new defaults, partially offset by an increase in cures. The total reserve for losses and LAE at the end of the quarter was $356.7 million, compared to $267.3 million at the end of March 2024. The company’s insurance in force (IIF) increased to $244.7 billion, up from $238.5 billion a year earlier, reflecting a new insurance written (NIW) of approximately $9.9 billion for the quarter.
Strategically, Essent Group has expanded its operations through acquisitions, including the purchase of Agents National Title Insurance Company and Boston National Holdings LLC, which have allowed the company to offer title insurance products and services. As of March 31, 2025, the company employed 555 individuals, an increase from previous periods, reflecting its growth strategy. The company also reported a significant increase in net investment income, which rose to $58.2 million from $52.1 million, driven by a larger investment portfolio and higher yields.
Looking ahead, Essent Group anticipates continued challenges in the housing market due to elevated mortgage interest rates, which may impact mortgage origination volumes. The company remains focused on maintaining compliance with the Private Mortgage Insurer Eligibility Requirements (PMIERs) and managing its capital effectively. As of March 31, 2025, Essent Guaranty had available assets of $3.6 billion, significantly exceeding its minimum required assets of $2.1 billion, indicating a strong financial position to support future growth and operational needs.
About Essent Group Ltd.
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