Essent Group Ltd Q1 2023 Presentation
INVESTOR PRESENTATION 1Q23
NYSE:
Disclaimer
This presentation may include "forward-looking statements" which are subject to known and unknown risks and uncertainties, many of which may be beyond our control. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "will," "should," "expect," "plan," "anticipate," "believe," "estimate," "predict," or "potential" or the negative thereof or variations thereon or similar terminology. Actual events, results and outcomes may differ materially from our expectations due to a variety of known and unknown risks, uncertainties and other factors. Although it is not possible to identify all of these risks and factors, they include, among others, the following: changes in or to
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© 2023 |
Essent Is A Leading Mortgage Insurer
Company Overview
Essent Group Ltd. is aBermuda -based holding company that went public in 2013, and is traded on theNew York Stock Exchange (NYSE:ESNT )- Two primary operating companies:
Essent Guaranty, Inc. (Radnor, PA ) andEssent Reinsurance Ltd. (Hamilton, Bermuda ) - Serves the
U.S. housing finance industry by offering mortgage insurance and reinsurance to support home ownership - Transformed business model from "Buy and Hold" to "Buy, Manage & Distribute" through use of programmatic reinsurance
- Developed risk-based pricing engine EssentEDGE®, and the next generation of EssentEDGE®, a cloud-based AI pricing platform
Essent Guaranty, Inc. is rated A3 by Moody's, A (Excellent) by
A.M. Best , and BBB+ by S&P
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4Q22 |
1Q23 |
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IIF ($B) |
|
|
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NIW ($B) |
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New Defaults (K) |
7.5 |
7.0 |
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Portfolio Default Rate |
1.66% |
1.57% |
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Net Income ($M) |
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Combined Ratio |
24.6% |
22.7% |
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Annualized ROE |
13.5% |
15.0% |
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Shareholders' Equity ($B) |
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PMIERs Sufficiency Ratio |
174% |
168% |
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% IIF With Reinsurance Protection |
98% |
96% |
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Risk-To-Capital Ratio(1) |
10.2:1 |
10.3:1 |
Recent Developments
- On
February 2 nd,Essent US Holdings entered into an agreement to acquire the title insurance operations from a subsidiary ofFinance of America Companies for$100 million .
Capital Distribution To Shareholders
- In conjunction with our 1Q23 earnings release, we announced Board approval of a quarterly dividend of
$0.25 per common share, payable during 2Q23. - Year-to-datethrough April 30th, we repurchased approximately 800K common shares for
$32 million .
1 The combined risk-to-capital ratio equals the net risk in force of
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© 2023 |
Delivering Shareholder Value
BOOK VALUE PER SHARE GROWTH
Annualized growth rate of 19.4% since
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Dec-13 |
Dec-14 |
Dec-15 |
Dec-16 |
Dec-17 |
Dec-18 |
Dec-19 |
Dec-20 |
Dec-21 |
Dec-22 |
Mar-23 |
Strong Cash Flows
& Earnings
Programmatic
Reinsurance
Protection
Steadily Increasing
Dividends
Management
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© 2023 |
Key Milestones in
Launch
of
Guaranty
IPO
Launch of
Essent Re
Essent Re completes first GSE risk share deal and reinsures
First CRT
EssentEDGE®
EssentEDGE® Next Generation
- cloud-basedAI pricing platform
Launch of EssentVentures
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2010 |
2013 |
2014 |
2018 |
2019 |
2021
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2009 |
2023+ |
25+ years Experienced Management Team
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Essent Advantage |
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Strong |
Conservative |
Highly |
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Efficient |
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Capital |
Financial |
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Operating |
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Position |
Leverage |
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Platform |
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Best in Class
Analytics &
Technologies
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© 2023 |
Attachments
Disclaimer


Essent Group Ltd. Announces First Quarter 2023 Results and Declares Quarterly Dividend
Q1 2023 Supplement
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