Essent Group (ESNT) Q4 2024 earnings summary

Executive summary

• Reported Q4 2024 net income of $167.9M, down from $175M a year ago; full-year 2024 net income was $729.4M, up from $696.4M in 2023.

• Board increased quarterly dividend to $0.31/share and approved a $500M share repurchase authorization through 2026.

• Insurance in force at year-end 2024 was $243.6B, up from $239.1B at year-end 2023.

• Management cited strong credit quality, resilience in housing and labor markets, and favorable consumer trends as key drivers.

• Entered two new quota share reinsurance agreements in January 2025, covering 25% of eligible new insurance for 2025 and 2026.

Financial highlights

• Book value per share at year-end 2024 was $53.36, up from $47.87 a year earlier.

• Q4 2024 EPS was $1.68, up from $1.64 a year ago; full-year EPS was $6.85.

• Net investment income for 2024 was $222.1M, a 19% increase year-over-year.

• Combined ratio for 2024 was 35.2%; Q4 2024 combined ratio was 45.3%.

• Loss reserves increased to $329M at year-end 2024 from $260M at year-end 2023.

Outlook and guidance

• Management expects continued strong returns and book value growth, supported by stable cash flows and balanced capital management.

• Persistency rates expected to remain high with elevated mortgage rates; default rates may rise if unemployment increases.

• Title operations are not expected to materially impact earnings in the near term; longer-term view remains positive.

• Annual effective tax rate for 2025 estimated at 15.5%.

• No specific core expense guidance for 2025; expect expenses to remain relatively flat year-over-year.