Essent Group (ESNT) Q1 2025 earnings summary

Executive summary

• Net income for Q1 2025 was $175.4 million ($1.69 per diluted share), with annualized ROE of 12.5%, and book value per share rising to $55.22 at March 31, 2025.

• The company maintained strong capital and liquidity, with shareholders' equity at $5.7 billion and robust investment yields.

• Board approved a $0.31 quarterly dividend and repurchased 3.9 million shares for $218 million YTD through April 30.

• Portfolio credit quality remains high, with a weighted average FICO of 746–751 and LTV of 93%.

• Management remains constructive on long-term housing demand despite near-term headwinds.

Financial highlights

• Total revenue for Q1 2025 was $318 million, with net income of $175.4 million and diluted EPS of $1.69.

• Insurance in force reached $244.7 billion, up from $238.5 billion a year ago.

• Net investment income rose to $58.2 million, up 12% year-over-year.

• Book value per share increased to $55.22 from $48.96 year-over-year.

• Net premiums earned were $245.8 million, with an average net premium rate of 0.36%.

Outlook and guidance

• Long-term outlook remains positive, with pent-up housing demand and favorable demographics supporting future growth.

• Persistency rates are expected to remain high due to elevated mortgage rates.

• 97% of insurance in force is protected by reinsurance, mitigating volatility.

• Bermuda's new corporate income tax is not expected to materially affect the effective tax rate until at least 2030.