Essent Group Reports $729.4 Million Net Income and $1.24 Billion Revenue for 2024

Essent Group Ltd. (ESNT) reported net income of $729.4 million for the year ended December 31, 2024, compared to $696.4 million in 2023. Total revenues increased to $1.24 billion in 2024 from $1.11 billion in 2023, driven by increases in net premiums earned and net investment income. The increase in net investment income reflects a larger investment portfolio and higher average yields due to rising interest rates. The company's provision for losses and loss adjustment expenses increased to $81.2 million in 2024 from $31.5 million in 2023, primarily due to an increase in new mortgage insurance defaults, partially offset by cure activity for prior year defaults. The increase in defaults included a significant number of hurricane-related defaults.

Significant changes compared to the previous year include a 5% increase in net premiums earned in the mortgage insurance segment and a rise in net investment income. The company's persistency rate, a key indicator of revenue sustainability, was 85.7% at the end of 2024. The company also noted that its top ten customers generated 50.2% of its new insurance written (NIW) in 2024, up from 39.9% in 2023. One customer accounted for over 10% of consolidated revenue in 2024. The company's title insurance operations, established through acquisitions in 2023, contributed $66.2 million in net premiums earned during 2024.

Strategic developments included the completion of an underwritten public offering of $500 million of 6.25% Senior Notes due 2029 in July 2024. Proceeds were used to repay borrowings under an existing credit facility. The company also amended and restated its credit agreement, increasing its revolving credit facility borrowing capacity to $500 million. In addition, the company repurchased 1,859,695 common shares at a cost of $102.7 million during 2024 under a share repurchase plan. In February 2025, the board approved an additional $500 million share repurchase authorization.

Key operational developments included a total of 625 employees as of December 31, 2024. The company's U.S. mortgage insurance portfolio totaled approximately $243.6 billion in force at year-end 2024. The company's geographic diversification was highlighted, with no single state or metropolitan statistical area accounting for more than 12.5% of its insurance in force. The company also detailed its risk management framework, including its loan life cycle risk management process, modeling and analytics, and reinsurance strategies. The company's financial strength ratings were noted as A3 (positive outlook) by Moody's, A- (stable outlook) by S&P, and A (Excellent, stable outlook) by A.M. Best.

The company's outlook anticipates continued quarterly dividend declarations at a materially comparable level to those paid in 2024. However, the company acknowledges several risk factors, including competition, economic conditions, claims experience, regulatory changes, and market risks affecting its investment portfolio. The company also highlighted the uncertainties surrounding GSE reform and the potential impact of changes to the GSEs' charters on its business. The company stated that it expects incurred losses and claims to increase as its portfolio matures.