Essent Group (ESNT) Q4 2023 earnings summary

Executive summary

• Q4 2023 net income was $175.4M, or $1.64 per diluted share, vs. $147.4M, or $1.37, YoY.

• FY2023 revenue was $1,109.8M and net income was $696.4M, or $6.50 per diluted share, vs. $831.4M, or $7.72, in FY2022.

• Favorable credit performance and higher interest rates supported results; management also cited strong operating cash flows and franchise stability.

Financial highlights

• Q4 revenue was $297.3M vs. $230.0M YoY; FY revenue was $1,109.8M vs. $1,000.8M.

• Q4 net premiums earned were $245.6M vs. $207.3M YoY; FY net premiums earned were $916.9M vs. $842.5M.

• Net investment income rose 34% YoY to $50.6M in Q4 and 50% to $186.1M for FY2023.

• Q4 NIW was $8.8B vs. $12.5B in Q3 and $13.0B YoY; FY NIW was $47.7B vs. $63.1B in 2022.

• IIF was $239.1B at year-end vs. $238.7B at Q3-end and $227.1B a year earlier; book value per share was $47.87 vs. $41.44 at year-end 2022.

Outlook and guidance

• Quarterly dividend increased to $0.28 per common share for 2024, payable March 22, 2024, to holders of record March 13, 2024.