Essent Group Ltd Q3 2022 Presentation
INVESTOR PRESENTATION 3Q22
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: the impact of COVID-19 and related economic conditions; 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 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) byA.M. Best , and BBB+ by S&P
2Q22 |
3Q22 |
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IIF ($B) |
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NIW ($B) |
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New Defaults (K) |
5.5 |
6.4 |
Portfolio Default Rate |
1.61% |
1.55% |
Net Income ($M) |
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Combined Ratio |
(16.2%) |
22.3% |
Annualized ROE |
21.8% |
16.6% |
Shareholders' Equity ($B) |
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PMIERs Sufficiency Ratio |
167% |
179% |
% IIF With Reinsurance Protection |
98% |
98% |
Risk-To-Capital Ratio(1) |
10.2:1 |
10.1:1 |
Recent Developments
- During the quarter, we closed our 8th Radnor Re ILN transaction, obtaining
$238 million of fully collateralized, excess-of-loss reinsurance coverage on our NIW fromOctober 2021 throughJuly 2022 - On
September 21st , AM Best affirmed its "A" financial strength rating ofEssent Guaranty, Inc. andEssent Reinsurance Ltd. and the long-term issuer credit rating of "a" of the operating subsidiaries ofEssent Group Ltd
Capital Distribution To Shareholders
- In conjunction with our 3Q22 earnings release, we announced Board approval of an increase of the quarterly dividend to
$0.23 per common share, payable during 4Q22
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 19.6% since
Dec-13 |
Dec-14 |
Dec-15 |
Dec-16 |
Dec-17 |
Dec-18 |
Dec-19 |
Dec-20 |
Dec-21 |
Sep-22 |
Strong Cash Flows |
Programmatic |
Steadily Increasing |
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Reinsurance |
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& Earnings |
Dividends |
Management |
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Protection |
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Key Milestones in
Launch |
IPO |
Launch of |
First CRT |
EssentEDGE® |
EssentEDGE® |
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of |
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Essent Re |
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Next Generation |
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Guaranty |
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completes |
Essent Re |
its first credit- |
launches |
A cloud-based AI |
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IPO; emerges |
completes first |
risk transfer |
proprietary |
pricing platform |
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obtains GSE |
as a key |
GSE risk share |
program |
innovative |
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approvals and |
player in |
deal and |
pricing |
Launch of |
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writes first MI |
future of MI |
reinsures |
platform |
EssentVentures |
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policy |
Guaranty |
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2010 |
2013 |
2014 |
2018 |
2019 |
2021 |
2009 |
2022+ |
Essent Advantage
25+ years |
Strong |
Conservative |
Highly |
Best in Class |
Experienced |
Efficient |
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Capital |
Financial |
Analytics & |
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Management |
Operating |
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Position |
Leverage |
Technologies |
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Team |
Platform |
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Attachments
Disclaimer
Essent Group Ltd. Announces Third Quarter 2022 Results and Increases Quarterly Dividend
Q3 2022 Supplement
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News