Essent Group's Q3 Earnings Fall Short of Expectations, Shares Decline

NEW YORK - Essent Group Ltd. (NYSE:ESNT) reported third-quarter earnings that fell short of analysts' expectations, causing a 0.73% decline in shares during pre-market trading on Friday.
The mortgage insurance provider announced earnings of $1.65 per share, which was below the consensus estimate of $1.72. Revenue came in at $316.58 million, slightly below analysts' expectations of $316.92 million.
The company's net profit for the quarter was $176.2 million, showing a slight decrease from $178.0 million in the same period last year.
Chairman and CEO Mark A. Casale stated, "We are pleased with our third-quarter financial results, continuing to generate high-quality earnings." He added, "Our results continue to benefit from the impact of interest rates on continuity and growth in our investment portfolio."
New insurance written in the third quarter amounted to $12.5 billion, consistent with both the previous quarter and the same period last year. The total insurance in force rose to $243.0 billion, an increase from $238.7 billion in the same period last year.
The company's loss ratio increased from 4.4% in the third quarter of 2023 to 12.2% due to higher loss reserves.