Q2 2024 Essent Group Ltd Earnings Call Transcript
Key Points
- Essent Group Ltd (ESNT) reported a net income of $204 million for Q2 2024, up from $172 million a year ago.
- The company's US mortgage insurance in force increased by 2% year-over-year to $241 billion.
- Essent Group Ltd (ESNT) maintains a strong balance sheet with $5.4 billion in GAAP equity and $1.2 billion of available holding company liquidity.
- The company successfully closed a $500 million senior notes offering and upsized its revolving credit facility to $500 million, enhancing financial flexibility.
- Essent Re continues to show strong earnings, driven by third-party business related to GSE, CRT, and MGA services.
- Affordability remains a challenge for consumers due to higher rates and prices.
- The Title business is still in the 'Control' phase and is not expected to have a meaningful impact on earnings in the near term.
- The default rate on the US mortgage insurance portfolio was 1.71% as of June 30, 2024.
- Operating expenses for the second quarter were $56 million, including $12.9 million of Title expenses.
- The company's debt-to-capital ratio increased to approximately 8.5% after the senior note issuance and term loan repayment.
Thank you for standing by. My name is Amy and I'll be your conference operator for today. I would like to welcome everyone to the Essent Group second-quarter 2024 earnings call. (Operator Instructions)
It is now my pleasure to turn the call over to Phil Stefano, Investor Relations. You may begin your conference.
Thank you, Amy. Good morning, everyone, and welcome to our call. Joining me today are Mark Casale, Chairman and CEO; and David Weinstock, Chief Financial Officer. Also on hand for the Q&A portion of the call is Chris Curran, President of Essent Guaranty.
Our press release, which contains Essent's financial results for the second quarter of 2024 was issued earlier today and is available on our website at essentgroup.com. Our press release includes non-GAAP financial measures that may be discussed during today's call. A complete description of these measures and the reconciliation to GAAP may be found in Exhibit O of our press release.
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