Essent Group profit falls $135m
The net income of Essent Group Ltd, the mortgage insurer and reinsurer based in Bermuda, fell by $135 million year-over-year in fiscal 2023, the company reported today.
Full-year net income was $696.4 million, or $6.50 per diluted share, compared with $831.4 million, or $7.72 per diluted share, for 2022.
Essent reported net income for the fourth quarter of $175.4 million, or $1.64 per diluted share, compared with $147.4 million, or $1.37 per diluted share, for the fourth quarter of 2022.
“We are pleased with our fourth-quarter and full-year 2023 financial results, which benefited from favourable credit performance and higher interest rates,” said Mark A. Casale, the chairman and chief executive.
“Our results continue to demonstrate the earning power of our business and provide us with attractive levels of operating cashflows, indicating the overall strength and stability of our franchise.”
New insurance written for the fourth quarter was $8.8 billion, compared with $12.5 billion in the third quarter of 2023 and $13 billion in the fourth quarter of 2022.
Insurance in force as of December 31, 2023, was $239.1 billion, compared with $238.7 billion as of September 30, 2023, and $227.1 billion as of December 31, 2022.
Net investment income for the quarter was $50.6 million, up 34 per cent from the fourth quarter of 2022.
In 2023, net investment income was $186.1 million, up 50 per cent from 2022.
On January 8, the company said, S&P Global Ratings raised its long-term financial strength and issuer credit ratings on Essent Guaranty Inc and Essent Reinsurance Ltd to “A-” from “BBB+”, with a stable outlook.
Essent’s board of directors have declared a quarterly cash dividend of $0.28 per common share, payable on March 22 to shareholders of record on March 13.
Essent Group Ltd is a Bermuda-based holding company that serves the housing finance industry by offering private mortgage insurance, reinsurance, risk management products and title insurance and settlement services to mortgage lenders, borrowers and investors to support home ownership.
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