Essent Group Ltd. reported significant financial developments in its third quarter and nine months ended September 30, 2024, reflecting a robust performance in the private mortgage insurance sector. The company achieved total revenues of $316.6 million for Q3 2024, an increase from $296.1 million in Q3 2023. For the nine months, total revenues rose to $927.9 million, compared to $812.5 million in the same period last year. This growth was driven by a 1% increase in net premiums written for Q3, totaling $243.0 million, and an 11% increase for the nine months, reaching $727.1 million.
Net premiums earned also saw a positive trend, with Q3 2024 figures at $248.9 million, up from $246.8 million in Q3 2023, and nine-month earnings rising to $746.4 million from $671.3 million. The net investment income for Q3 2024 was $57.3 million, a notable increase from $47.1 million in the prior year, contributing to a nine-month total of $165.5 million, compared to $135.6 million in 2023.
Despite these gains, the company faced increased total losses and expenses, which rose to $109.0 million in Q3 2024 from $86.7 million in Q3 2023, and to $267.3 million for the nine months, up from $192.4 million. Consequently, net income for Q3 2024 was $176.2 million, slightly down from $178.0 million in Q3 2023, while net income for the nine months increased to $561.5 million from $521.0 million.
Essent Group's total assets grew to $7.1 billion as of September 30, 2024, up from $6.4 billion at the end of 2023, with total stockholders' equity rising to $5.6 billion from $5.1 billion. The company’s investment portfolio also expanded, with total investments reaching $6.2 billion, compared to $5.5 billion at the end of 2023.
Strategically, Essent Group completed the acquisition of Agents National Title Holding Company and Boston National Holdings LLC on July 1, 2023, for $92.6 million. This acquisition contributed $59.4 million in revenue for the nine months ended September 30, 2024, although it also incurred pre-tax net losses of $11.8 million.
The company anticipates increased defaults in areas affected by recent hurricanes, with approximately 12.5% of its total insurance in force in impacted counties. Additionally, the Federal Reserve's recent rate cuts may influence mortgage interest rates and home sale activity, potentially affecting future performance. As of September 30, 2024, Essent Group maintained a strong financial position, with compliance to regulatory requirements and a solid capital surplus across its subsidiaries.
About Essent Group Ltd.
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