Essent Group Q3 Earnings Call Highlights

Impact · against what's priced in

ESNT shows signs of peaking quarterly profitability, with rising default rates (2.75%) and a slide in persistency (83.3%) offsetting growth in its reinsurance segment. While the $500 million buyback authorization is a positive signal of capital strength, it is countered by accelerating provisions for loss, which jumped 76% over Q2.

ESNT−0.10

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In context

The company's net income declined from $2.08 per share in Q2 to $1.82 in Q3, driven by a jump in the mortgage insurance provision for loss to $51.7 million as default rates rose to 2.75%. These headwinds are partially mitigated by a new $500 million share repurchase authorization and strong growth in the reinsurance segment.

• share repurchase▲200%
• earnings
• dividends
• rates
• ESNT
• default rates
• housing market
• investment income
• mortgage insurance