Essent Group Ltd Q2 2023 Presentation
INVESTOR PRESENTATION 2Q23
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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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 private mortgage insurance, reinsurance, risk management products and title insurance and settlement services 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
Recent Developments
- In May, we successfully executed a tender offer and retired
$637M of outstanding notes for two seasoned Radnor Re ILN deals that provided no regulatory or economic capital credit. - On
July 1, 2023 , we completed the previously announced acquisition ofAgents National Title Holding Company andBoston National Holdings LLC for$92.6 million . - In July, we priced our ninth Radnor Re ILN transaction, selling
$281M of notes covering risk written fromAugust 2022 throughJune 2023 .
1Q23 |
2Q23 |
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IIF ($B) |
|
|
NIW ($B) |
|
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Portfolio Default Rate |
1.57% |
1.52% |
Net Income ($M) |
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Combined Ratio |
22.7% |
20.4% |
Annualized ROE |
15.0% |
14.7% |
Shareholders' Equity ($B) |
|
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PMIERs Sufficiency Ratio |
168% |
163% |
% IIF With Reinsurance Protection |
96% |
97% |
Risk-To-Capital Ratio(1) |
10.3:1 |
10.5:1 |
Capital Distribution To Shareholders
- In conjunction with our 2Q23 earnings release, we announced Board approval of a quarterly dividend of
$0.25 per common share, payable during 3Q23. - Year-to-datethrough July 31st, we repurchased approximately 1.1 million common shares for
$46 million .
1 The combined risk-to-capital ratio equals the net risk in force of
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Delivering Shareholder Value
BOOK VALUE PER SHARE GROWTH
Annualized growth rate of 19.2% since
Dec-13 |
Dec-14 |
Dec-15 |
Dec-16 |
Dec-17 |
Dec-18 |
Dec-19 |
Dec-20 |
Dec-21 |
Dec-22 |
Jun-23 |
Strong Cash Flows
& Earnings
Programmatic
Reinsurance
Protection
Steadily Increasing
Dividends
Management
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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
Essent Title
2010
2013
20142018
2019
2021
2023
2009 |
2023+ |
25+ years Experienced Management Team
Essent Advantage |
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Strong |
Conservative |
Highly |
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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Attachments
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