Essent Group Ltd. · NYSE:ESNT
Essent — Q2 2015 Earnings Presentation
8 slides from Essent's earnings presentation, 2015
Slide 1: Essent Second Quarter 2015 Earnings Presentation
Essent Second Quarter 2015 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 $57.4B as of June 30, 2015 •
Slide 4: Financial Results
$18.2 $34.3 $22.3 $40.3 $23.5 $44.8 $23.6 $50.3 Financial Results $24.5 $60.3 EXPENSES ($M) $25.7 $67.8 $27.5 $75.0 NET PREMIUMS EARNED ($M) $27.1 $78.4 OTHER UNDERWRITING & OPERATING $17.9 $19.4 $23.5 $29.7 $38.8 $44.0 PRE-TAX INCOME ($M) $50.5 $54.6 3
Slide 5: Insurance In Force and New Insurance Written
Insurance In Force and New Insurance Written $ 57.4 $ 53.3 $ 50.8 $ 46.4 $ 39.4 $ 34.8 $ 28.2 $ 32.0 $ 6.4 $ 8.8 $ 6.5 $ 7.3 $ 4.5 $ 5.9 $ 5.3 $ 3.6 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 New Insurance Written ($B) Insurance In Force ($B) 4
Slide 6: Underwriting Expenses
Underwriting Expenses 60% $30 .0 $27.5 $27.1 $25.7 $24.5 $23.5 $23.6 $25 .0 $22.3 40% $18.2 $20 .0 $15 .0 20% $10 .0 $5. 0 0% $0. 0 Underwriting Expense ($M) Expense Ratio(1) Combined Ratio(2) (1) Expense ratio is calculated by dividing other underwriting and operating expenses by net premiums earne
Slide 7: In Force Portfolio
In Force Portfolio $57.4 BILLION AS OF JUNE 30, 2015 IIF BY VINTAGE IIF by FICO Score IIF BY LTV 680‐699 7.4% 90.01‐95.00% 2014 51.5% 37.8% 2015 700+ 21.7% 88.4% Below <=90.00% 2013 2011 2012 680 46.3% 27.1% and 4.2% >=95.01% 11.5% prior 2.2% 1.9% $39.4 BILLION AS OF JUNE 30, 2014 IIF BY VINTAGE IIF
Slide 8: Capital and Equity
$1, 200.0 Capital and Equity 20. 0:1 $1,027.8 18.1:1 $1, 000.0 $996.0 $955.7 16.5:1 16.1:1 16.2:1 16.2:1 16.1:1 15.8:1 15.3:1 $80 0.0 $816.4 15. 0:1 $794.9 $768.0 $747.9 $740.1 $722.1 $705.9 $664.2 $60 0.0 $599.9 10. 0:1 $528.2 $469.4 $40 0.0 $388.0 $373.6 5.0 :1 $20 0.0 0.0 :1 $0. 0 (1) Consolidate