Essent Group Ltd. · NYSE:ESNT
Essent — Q1 2014 Earnings Presentation
8 slides from Essent's earnings presentation, 2014
Slide 1: Essent First Quarter 2014 Earnings Presentation
Essent First Quarter 2014 Earnings Presentation
Slide 2: Disclaimer
Disclaimer 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,"
Slide 3: Who Is Essent?
Who Is Essent? • Essent Group Ltd. is a Bermuda-based holding company (NYSE: ESNT) • Essent Guaranty, Inc. is rated BBB+ by S&P and Baa2 by Moody’s • Operation centers in • Radnor, PA • Winston-Salem, NC • Irvine, CA • Bermuda domiciled reinsurance company • Total IIF of $34.8B as of March 31, 2014
Slide 4: Financial Results
Financial Results NET PREMIUMS EARNED ($M) PRE-TAX INCOME/(LOSS) ($M) $44.8 $40.3 $23.5 $16.5 $34.3 $11.8 $27.5 $7.9 $21.3 $19.4 $17.9 $13.4 $7.3 OTHER UNDERWRITING & OPERATING $1.4 EXPENSES ($M)(1) $23.5 ($5.2) $22.3 ($2.4) $18.2 $16.5 $15.6 $15.6 $15.0 $14.5 1 (1) Triad services platform fully dep
Slide 5: Insurance In Force and New Insurance Written
Insurance In Force and New Insurance Written $ 34.8 $ 32.0 $ 28.2 $ 22.6 $ 17.4 $ 13.6 $ 10.1 $ 6.8 $ 5.9 $ 6.4 $ 3.6 $ 4.0 $ 4.3 $ 4.5 $ 3.6 $ 2.2 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 New Insurance Written ($B) Insurance In-Force ($B) 4
Slide 6: Underwriting Expenses
Underwriting Expenses 200% $25 .0 $23.5 $22.3 180% 160% $20 .0 $18.2 140% $16.5 $15.6 $15.6 $14.5 $15.0 120% $15 .0 100% 80% $10 .0 60% 40% $5. 0 20% 0% $0. 0 Underwriting Expense ($M) Expense Ratio(1) Combined Ratio(2) (1) Expense ratio is calculated by dividing other underwriting and operating exp
Slide 7: In Force Portfolio
In Force Portfolio $34.8 BILLION AS OF MARCH 31, 2014 IIF BY VINTAGE IIF by FICO Score IIF BY LTV 680‐699 5.6% 2013 90.01‐95.00% 57.9% 48.2% 2014 700+ 10.3% 92.5% 2011 Below <=90.00% 2012 and 680 50.6% 26.7% >=95.01% prior 1.9% 5.1% 1.2% $17.4 BILLION AS OF MARCH 31, 2013 IIF BY VINTAGE IIF by FICO
Slide 8: Capital and Equity
Capital and Equity 20.0:1 $80 0.0 18.1:1 $740.1 18.0:1 $722.1 $70 0.0 16.5:1 16.0:1 15.8:1 15.7:1 16.1:1 15.0:1 $60 0.0 14.0:1 $528.2 $50 0.0 12.0:1 11.9:1 $469.4 10.6:1 10.0:1 $40 0.0 $388.0 $373.6 $371.2 $356.2 8.0 :1 $30 0.0 $276.6 $260.5 6.0 :1 $219.1 $218.7 $20 0.0 $203.6 $200.4 4.0 :1 $170.1 $