Essent Group Ltd. · NYSE:ESNT
Essent — Q4 2013 Earnings Presentation
8 slides from Essent's earnings presentation, Feb 19, 2014
Slide 1: Essent Fourth Quarter 2013 Earnings Presentation
Essent Fourth Quarter 2013 Earnings Presentation
Slide 2: Forward-looking statements
This presentation includes “forward-looking statements” which are subject to known and unknown risks and uncertainties, many of which may be beyond our control. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "plan," "seek," "comfortabl
Slide 3: Who Is Essent?
• Essent Group Ltd. is a Bermuda based holding company (NYSE: ESNT) • Pennsylvania domiciled mortgage insurance company, Essent Guaranty, Inc. is rated BBB+ by S&P and Baa2 by Moody’s • Bermuda domiciled reinsurance company • Operation centers in • Radnor, PA • Winston-Salem, NC • Irvine, CA • Total
Slide 4: Financial Results
Financial Results (1) Triad services platform fully depreciated by end of 2012. NET PREMIUMS EARNED ($M) OTHER UNDERWRITING & OPERATING EXPENSES ($M)(1) 3 1 PRE-TAX INCOME/(LOSS) ($M) $5.6 $7.9 $11.8 $16.5 $21.3 $27.5 $34.3 $40.3 $14.4 $14.5 $15.6 $16.5 $15.0 $15.6 $18.2 $22.3 ($7.7) ($5.2) ($2.4) $
Slide 5: Insurance In Force and New Insurance Written
Insurance In Force and New Insurance Written 4 $ 1.4 $ 2.2 $ 3.6 $ 4.0 $ 4.3 $ 5.9 $ 6.4 $ 4.5 $ 4.7 $ 6.8 $ 10.1 $ 13.6 $ 17.4 $ 22.6 $ 28.2 $ 32.0 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 New Insurance Written ($B) Insurance In-Force ($B)
Slide 6: Underwriting Expenses
Underwriting Expenses (1) Expense ratio is calculated by dividing other underwriting and operating expenses by net premiums earned. (2) Loss ratio plus expense ratio. 5 $14.4 $14.5 $15.6 $16.5 $15.0 $15.6 $18.2 $22.3 $0. 0 $5. 0 $10.0 $15.0 $20.0 $25.0 0% 50% 100% 150% 200% 250% 300% Underwriting Ex
Slide 7: In Force Portfolio
6 IIF by FICO Score IIF BY VINTAGE IIF BY LTV $32.0 BILLION AS OF DECEMBER 31, 2013 IIF by FICO Score IIF BY VINTAGE IIF BY LTV $13.6 BILLION AS OF DECEMBER 31, 2012 In Force Portfolio 2013 64.1% 2010 0.3% 2011 5.5% 2012 30.1% 700+ 93.2% 680-699 5.2% Below 680 1.6% 700+ 95.2% 680-699 3.9% Below 680
Slide 8: Capital and Equity
7 Capital and Equity (1) Represents combined metrics for Essent Guaranty, Inc. and Essent Guaranty of PA, Inc. $168.7 $170.1 $218.7 $219.1 $276.6 $371.2 $388.0 $722.1 $146.9 $150.1 $200.4 $203.6 $260.5 $356.2 $373.6 $469.4 7.4:1 10.6:1 11.9:1 15.8:1 15.7:1 15.0:1 18.1:1 16.5:1 $0. 0 $100.0 $200.0 $3