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Essent Group 4Q20 Earnings Analysis


Essent Group Stock Analysis

Catalysts

  • Rising demand for housing with limited supply

  • Record Low Mortgage rate further increases demand for mortgages and consequently mortgage insurance

  • Asset price inflation - further increase in housing prices

  • Management considering buybacks and increased dividends

  • Best financial metric in industry and gaining market share at fast rate

Essent Group Stock Analysis

Financial Analysis


  • Net Insurance Written (NIW) of $29.6 billion in 4Q20 vs $36.7 billion in 3Q20

  • NIW of $107.9 billion in FY20 vs $63.6 billion in FY19

  • Revenues of $247 million in 4Q20 vs $228 million in 4Q19

  • Revenues of $955 million in FY20 vs $8.67 million in FY19

  • Premiums of $862 million in FY20 vs $777 million in FY19

  • Net income of $123 million in 4Q20 vs $146 million in 4Q19

  • Net income of $413 million in FY20 vs net income of $555 million in FY19

Essent Group Stock Analysis
  • Assets of $5.20 billion, liabilities of $1.34 billion and book value of $3.86 billion

  • Investments of $4.56 billion vs $3.35 billion in 4Q19

    • Yield of 2.11%

    • Almost all investment graded with 36% Aaa

Essent Group Stock Analysis

Essent Group Stock analysis

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