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In compliance with new financial disclosure requirements, Essent Group Ltd ., a Bermuda-based surety insurance provider with a market capitalization of $6.03 billion, has released unaudited historical segment information for each quarter of 2024. This disclosure, made public today, follows the adoption of Accounting Standards Update No. 2023-07 by the Financial Accounting Standards Board (FASB) in November 2023, which mandates public entities to report significant expenses of their segments. According to InvestingPro analysis, the company maintains strong financial health with an impressive gross profit margin of 84.62% and robust revenue growth of 12% over the last twelve months.
The company, listed on the New York Stock Exchange under the ticker (NYSE:ESNT), had previously provided annual segment data in its 2024 Form 10-K, as noted in Footnote 18: Segment Reporting. With the current fiscal year underway, Essent Group will continue to offer quarterly and year-to-date segment information in its upcoming Forms 10-Q and 10-K. The company’s strong operational efficiency is reflected in its conservative debt management, with a debt-to-equity ratio of just 0.09 and a healthy current ratio of 3.94.
Investors and analysts can refer to Exhibit 99.1 of the current report on Form 8-K for detailed segment performance throughout 2024. The exhibit supplements the company’s Annual Report for the year ended December 31, 2024, filed with the Securities and Exchange Commission on February 19, 2025.
This latest report, submitted on March 27, 2025, emphasizes the company’s commitment to enhanced transparency in its financial reporting. Essent Group’s provision of this segment information adheres to the FASB’s directive for retrospective application of the new segment reporting guidance.
The information, including the supplemental exhibit, is furnished under the Securities Exchange Act of 1934 and is not considered filed for liability purposes. It also shall not be deemed incorporated by reference into any future filings under the Securities Act of 1933 or the Exchange Act, unless specifically referenced in such filings.
This move to provide more detailed financial data reflects the ongoing changes in accounting standards aimed at giving stakeholders a clearer view of a company’s operations. Essent Group’s disclosure is based on a press release statement and aligns with the industry’s move towards greater financial disclosure. InvestingPro analysis suggests the stock is currently undervalued, trading at a P/E ratio of 8.36, with analysts projecting continued profitability. For deeper insights into Essent Group’s valuation and comprehensive financial analysis, investors can access the detailed Pro Research Report, available exclusively on InvestingPro along with reports on 1,400+ other top US stocks.
In other recent news, Essent Group Ltd reported its fourth-quarter 2024 earnings, showing an earnings per share (EPS) of $1.58, which missed the forecasted $1.65. Despite the EPS miss, the company slightly exceeded revenue expectations, posting $315.03 million against a forecast of $313.64 million. Essent’s net income for the quarter was $168 million, a decrease from $175 million in the same period the previous year. The company’s book value per share increased by 11% to $63.36, supported by a 20% rise in net investment income to $222 million. Essent Group also announced an 11% increase in its quarterly dividend to $0.31 per share and approved a $500 million share repurchase authorization. Analysts from firms like Barclays (LON:BARC) and KeyBancorp discussed potential impacts on the company’s performance, such as increased mortgage defaults and challenges in the insurance market. Essent continues to focus on capital efficiency and reinsurance strategies, with approximately 97% of its portfolio covered by some form of reinsurance.
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