Essent Group (ESNT) has reported 46.28 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $59.71 million, or $0.65 a share in the quarter, compared with $40.82 million, or $0.44 a share for the same period last year. Revenue during the quarter surged 32.18 percent to $121.25 million from $91.74 million in the previous year period. Net premium earned for the quarter jumped 32.39 percent or $27.11 million to $110.80 million. During the quarter, the company has written premium worth $115.89 million on net basis, up 18.89 percent or $18.41 million.
Total expenses move upBenefits, losses and expenses for the quarter were at $37.81 million, or 34.13 percent of premium earned from $32.11 million or 38.36 percent of premium earned in the last year period. Operating income for the quarter was $83.44 million, compared with $59.63 million in the previous year period. Net investment income was at $6.78 million for the quarter, up 27.41 percent or $1.46 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 $0.55 million for the previous year period.
"We had another strong quarter of operating performance and producing high quality and growing earnings for our shareholders," said Mark Casale, chairman and chief executive officer. "We grew insurance in force 25% year over year, which drove year over year growth in quarterly net income of 46% while also producing a 17.6% annualized return on average equity for the nine month period ended September 30, 2016."
Liabilities outpace assets growthTotal assets increased 28.74 percent or $405.79 million to $1,817.73 million on Sep. 30, 2016. On the other hand, total liabilities were at $507.51 million as on Sep. 30, 2016, up 51.18 percent or $171.82 million from year-ago. Return on assets stood at 3.28 percent in the quarter, up 0.39 from 2.89 percent in the last year period. At the same time, return on equity was at 4.56 percent in the quarter, up 0.76 from 3.79 percent in the last year period.
Investments increase substantiallyInvestments stood at $1,582.16 million as on Sep. 30, 2016, up 27.54 percent or $341.64 million from year-ago. Meanwhile, yield on investments was almost stable at 0.43 percent in the quarter, when compared with the last year period. Total debt was at $50 million as on Sep. 30, 2016. Shareholders equity stood at $1,310.22 million as on Sep. 30, 2016, up 21.74 percent or $233.98 million from year-ago. As a result, debt to equity ratio was at 0.04 percent in the quarter.
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