Essent Group Ltd. (NYSE:ESNT) Q4 2019 Earnings Conference Call - Final Transcript

Feb 14, 2020 • 10:00 am ET


Essent Group Ltd. (NYSE:ESNT) Q4 2019 Earnings Conference Call - Final Transcript


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Lawrence E. McAlee

in December. As of December 31st, 2019, the combined U.S. mortgage insurance business statutory capital was $2.3 billion, with a risk-to-capital ratio of 12.6:1. The risk-to-capital ratio reflects a reduction in risk in force associated with the affiliate quota share with Essent Re and $2.5 billion reduction for reinsurance provided by third parties.

Also Essent Guaranty's available assets exceeded its minimum required assets as computed under PMIERs by $840 million. Finally, at the end of the fourth quarter, Essent Re had GAAP equity of $939 million, supporting $10.3 billion of net risk in force.

Now let me turn the call back over to Mark.

Mark A. Casale

Thanks, Larry. In closing, Essent had another strong quarter, as the operating and credit environments were favorable, and we remain pleased with progress in transitioning our operating model. The combination of EssentEDGE on the front end and reinsurance in the back-end is a key component in building a more sustainable franchise. Looking forward, we will continue to take advantage of positive secular trends, while also mitigating against the cyclical nature of our business with the use of reinsurance. Heading into 2020, Essent is well positioned, and we remain positive about our business and prospects.

Now let's get to your questions, operator?