Essent Group saw its profitability slip in the third quarter and the first three quarters of 2020 compared to the previous year, but said it was pleased with the resilience shown by the housing market, which it called “a bright spot in the economy.”
Essent reported net profit of $124.5 million for Q3 2020, compared to $144.6 million for Q3 2019. For the first nine months of the year (TYD) Essent made a profit of $289.4 million, down from $408.7 million for the same period in 2019.
Net written premiums were $222.2 million for Q3 2020, compared to $198.3 million for the same period in 2019. Net written premiums were $619.9 million YTD 2020, compared to $564.4 for the same period the previous year.
Essent’s combined ratio was 41.6 percent for Q3 2020 and 55.8 percent YTD 2020, compared to 25.3 percent and 25.7 percent, respectively, in 2019.
Mark Casale, chairman and chief executive officer at Essent, said Essent had seen a lower loss provision due to a decrease in the number of new COVID-19 default notices received on its insured portfolio.
“Although our outlook on the economy remains cautious, we are pleased with the resilience and strength that housing has demonstrated throughout the year which has been a bright spot in the economy and positive for high credit quality growth in our business,” he said.
Essent, Mark Casale, Results