Essent Group Ltd. (ESNT) has reported 40.93 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $62.69 million, or $0.68 a share in the quarter, compared with $44.48 million, or $0.48 a share for the same period last year.
Revenue during the quarter grew 29.65 percent to $126.37 million from $97.48 million in the previous year period. Net premium earned for the quarter jumped 30.67 percent or $27.41 million to $116.79 million. During the quarter, the company has written premium worth $116.41 million on net basis, up 18.26 percent or $17.98 million.
Total expenses move up
Benefits, losses and expenses for the quarter were at $39.07 million, or 33.45 percent of premium earned from $33.83 million or 37.85 percent of premium earned in the last year period. Operating income for the quarter was $87.30 million, compared with $63.65 million in the previous year period.
Net investment income was at $8.22 million for the quarter, up 47.85 percent or $2.66 million from year-ago period. The company has recorded a gain on investments of $0.44 million in the quarter compared with a gain of $0.79 million for the previous year period.
"2016 was another successful year for Essent as we continued growing a high credit quality and profitable mortgage insurance portfolio," said Mark Casale, chairman and chief executive officer. "We remain optimistic about our prospects heading into 2017, as the underlying fundamentals of housing are strong and the real estate cycle remains in expansion mode."
Liabilities outpace assets growth
Total assets increased 28.17 percent or $413.90 million to $1,883 million on Dec. 31, 2016. On the other hand, total liabilities were at $539.22 million as on Dec. 31, 2016, up 54.13 percent or $189.37 million from year-ago.
Return on assets stood at 3.33 percent in the quarter, up 0.30 from 3.03 percent in the last year period. At the same time, return on equity was at 4.66 percent in the quarter, up 0.69 from 3.97 percent in the last year period.
Investments increase substantially
Investments stood at $1,615.10 million as on Dec. 31, 2016, up 26.51 percent or $338.47 million from year-ago. Meanwhile, yield on investments went up 7 basis points to 0.51 percent in the quarter.
Total debt was at $100 million as on Dec. 31, 2016. Shareholders equity stood at $1,343.77 million as on Dec. 31, 2016, up 20.06 percent or $224.53 million from year-ago. As a result, debt to equity ratio was at 0.07 percent in the quarter.
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