NYSE$ESNT

Essent Group · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Reported strong earnings and robust returns due to focus on optimizing unit economics and favorable credit performance. Increased quarterly dividend to $0.23 per share.

Essent Group Ltd. reported a net income of $178.1 million for the quarter ended September 30, 2022, a decrease compared to $205.4 million for the same quarter in 2021. The Board of Directors has declared a quarterly cash dividend of $0.23 per common share.

  • New insurance written for the third quarter was $17.1 billion, compared to $23.6 billion in the third quarter of 2021.
  • Insurance in force as of September 30, 2022 was $222.5 billion, compared to $208.2 billion as of September 30, 2021.
  • The combined ratio for the third quarter was 22.3%, compared to 15.9% in the third quarter of 2021.
  • Essent Guaranty, Inc. obtained $237.9 million of fully collateralized excess of loss reinsurance coverage.

Headline financials

Total Revenue

$262M

Previous: $284M-7.7%
EPS (adj)

$1.66

Previous: $1.84-9.8%
New Insurance Written

$17.1B

Previous: $23.6B-27.5%
Insurance in Force

$223B

Previous: $208B+6.9%
Expense Ratio

20.3%

Previous: 19.3%+5.2%
Combined Ratio

22.3%

Previous: 15.9%+40.3%
Capital Expenditures

-$2.51M

Previous: -$1.7M-48.1%
Free Cash Flow

$176M

Previous: $204M-13.8%
Net Income

$178M

Previous: $205M-13.3%
Operating Income

$257M

Previous: $278M-7.5%
Gross Profit

$262M

Previous: $284M-7.7%
Cash & Equivalents

$79.5M

Previous: $65.8M+20.7%
Total Assets

$5.56B

Previous: $5.59B-0.6%
Stock-Based Comp

$4.7M

Previous: $5.51M-14.7%

Revenue & EPS history

Essent · Revenue · Quarterly

$262M

Q3 2022-7.7%vs Q3 2021
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Forward guidance

This press release may include “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 2022

Historical avgQ3 2022

+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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