NYSE$ESNT

Essent Group · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Essent's financial performance reflected a positive operating environment and ongoing strength in credit performance, with net income of $205.4 million and increased quarterly dividend.

Essent Group Ltd. reported a strong third quarter with net income of $205.4 million, or $1.84 per diluted share, compared to $124.5 million, or $1.11 per diluted share, for the same quarter last year. The Board of Directors has also declared a quarterly cash dividend of $0.19 per common share.

  • Insurance in force as of September 30, 2021, was $208.2 billion, compared to $190.8 billion as of September 30, 2020.
  • New insurance written for the third quarter was $23.6 billion, compared to $36.7 billion in the third quarter of 2020.
  • The combined ratio for the third quarter was 15.9%, compared to 41.6% in the third quarter of 2020.
  • The percentage of loans in default as of September 30, 2021 was 2.47%, compared to 4.54% as of September 30, 2020.

Headline financials

Total Revenue

$284M

Previous: $243M+16.7%
EPS (adj)

$1.84

Previous: $1.11+65.8%
New Insurance Written

$23.6B

Previous: $36.7B-35.7%
Insurance in Force

$208B

Previous: $191B+9.1%
Provision for Losses and LAE

-$7.5M

Previous: $55.3M-113.6%
Expense Ratio

19.3%

Previous: 16.7%+15.6%
Combined Ratio

15.9%

Previous: 41.6%-61.8%
Capital Expenditures

-$1.7M

Previous: -$1.35M-25.2%
Free Cash Flow

$204M

Previous: $123M+65.3%
Net Income

$205M

Previous: $125M+64.9%
Operating Income

$278M

Previous: $238M+16.6%
Gross Profit

$284M

Previous: $243M+16.7%
Cash & Equivalents

$65.8M

Previous: $119M-44.5%
Total Assets

$5.59B

Previous: $5.11B+9.4%
Stock-Based Comp

$5.51M

Previous: $4.57M+20.7%

Revenue & EPS history

Essent · Revenue · Quarterly

$284M

Q3 2021+16.7%vs Q3 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Forward guidance

This press release includes forward-looking statements which are subject to known and unknown risks and uncertainties, many of which may be beyond our control.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2021

Historical avgQ3 2021

+0.9%

Avg return

Earnings day

+0.6%

Avg return

5 days after

+1.3%

Avg return

30 days after

65%

32 / 49 earnings

Positive

+7.2%

Q2 2014

Best reaction

-9.8%

Q3 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.1%-2.7%-6.8%
Q4 2025-6.4%-6.7%-11.5%
Q3 2025+0.6%+1.2%+1.8%
Q1 2025-0.4%-0.4%-1.5%
Q4 2024-2.6%+0.3%-4.3%
Q3 2024-9.8%-6.0%-3.7%
Q2 2024-4.4%-4.2%+5.0%
Q1 2024+2.7%+3.2%+4.5%
Q4 2023+0.3%-1.3%+2.0%
Q3 2023+2.7%+1.8%+2.6%
Q2 2023+4.1%+3.0%-0.7%
Q1 2023+5.0%+6.3%+12.6%
Q4 2022+2.5%+3.1%-6.1%
Q3 2022+0.9%-2.4%+3.5%
Q2 2022+0.2%+0.4%-8.8%
Q1 2022-0.7%-2.3%+2.1%
Q4 2021-0.5%+2.3%-10.5%
Q3 2021+1.6%-0.2%-9.8%
Q2 2021+2.4%+3.6%+1.3%
Q1 2021-2.5%-6.8%-4.1%
Q4 2020-0.2%-0.3%+0.3%
Q3 2020+5.2%+3.1%+9.4%
Q2 2020+4.0%+3.7%+3.7%
Q1 2020-1.2%-11.5%+30.4%
Q4 2019-5.1%-9.0%-27.6%
Q3 2019+1.3%+2.8%+2.4%
Q2 2019-1.2%+1.3%+6.9%
Q1 2019+1.7%-2.4%-2.0%
Q4 2018+0.8%+4.7%+3.8%
Q3 2018-3.0%-3.5%-13.3%
Q2 2018+5.3%+7.3%+13.4%
Q1 2018+5.5%+4.1%+2.6%
Q4 2017+3.1%+9.4%+9.8%
Q3 2017-0.5%+1.3%+11.4%
Q2 2017+5.9%+1.7%+1.6%
Q1 2017-5.4%-0.2%-0.5%
Q4 2016+1.7%+0.4%-3.1%
Q3 2016+4.8%+8.5%+20.9%
Q2 2016+6.9%+10.5%+11.8%
Q1 2016+4.8%
Q4 2015+1.4%
Q3 2015+2.4%
Q2 2015-5.7%
Q1 2015+3.0%
Q4 2014+0.6%
Q3 2014+0.2%
Q2 2014+7.2%
Q1 2014+3.8%
Q4 2013-2.4%
Q3 2013
Q2 2013
Q1 2013
Q4 2012
Q3 2012

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