Essent Q2 Profit Slips as Loss Provisions Triple, Expenses Rise
ESNT sits 18% above its 52-week low of $55.34.
Summary
Essent's Q2 net income fell year-over-year as loss provisions nearly tripled to $49 million from $17 million, driven by higher claims in its mortgage insurance portfolio. Diluted EPS still rose to $2.08 from $1.93, aided by aggressive share buybacks that reduced the share count. New insurance written grew to $14.1 billion, signaling strong origination volume, but the sharp increase in losses raises questions about credit quality. This follows a pattern of insider selling in recent weeks, with the CEO and legal chief offloading shares under 10b5-1 plans. The stock trades near its 52-week high, leaving little room for disappointment if loss trends persist.
At the time of this announcement, ESNT was trading at $65.21 on NYSE in the Finance sector, with a market capitalization of approximately $6B. The 52-week trading range was $55.34 to $68.62. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Reuters.