Essent Group Ltd. Announces Second Quarter 2024 Results and Declares Quarterly Dividend

August 02, 2024 at 06:30 AM EDT

Essent Group Ltd. (NYSE: ESNT) today reported net income for the quarter ended June 30, 2024 of $203.6 million or $1.91 per diluted share, compared to $172.2 million or $1.61 per diluted share for the quarter ended June 30, 2023.

Essent also announced today that its Board of Directors has declared a quarterly cash dividend of $0.28 per common share. The dividend is payable on September 10, 2024, to shareholders of record on August 30, 2024.

“We are pleased with our financial results in the second quarter, as our high-quality portfolio and resilience in the housing and labor markets translated to favorable credit performance, and the current rate environment continues to benefit investment income and persistency,” said Mark A. Casale, Chairman and Chief Executive Officer. “The Essent franchise achieved another milestone by closing on our inaugural senior debt offering on July 1. Combined with an amended and extended revolving credit facility, we now have over $1.3 billion in available holding company liquidity.”

Financial Highlights:

New insurance written for the second quarter of 2024 was $12.5 billion, compared to $8.3 billion in the first quarter of 2024 and $13.5 billion in the second quarter of 2023.
Insurance in force as of June 30, 2024 was $240.7 billion, compared to $238.5 billion as of March 31, 2024 and $235.6 billion as of June 30, 2023.
Net investment income for the first half of 2024 was $108.2 million, up 22% from the first half of 2023.
Effective July 1, 2024, we entered into an excess of loss transaction with a panel of highly rated third-party reinsurers covering 15% of all eligible policies written by Essent Guaranty, Inc. in calendar year 2024.
On July 1, 2024, Essent closed two transactions that represent approximately $1 billion in total debt capacity, comprised of $500 million of senior unsecured notes and a $500 million unsecured revolving credit facility.

Conference Call:

Essent management will hold a conference call at 10:00 AM Eastern time today to discuss its results. The conference call will be broadcast live over the Internet at http://ir.essentgroup.com/events-and-presentations/events/default.aspx. The call may also be accessed by dialing 888-330-2384 inside the U.S., or 240-789-2701 for international callers, using passcode 9824537 or by referencing Essent.

A replay of the webcast will be available on the Essent website approximately two hours after the live broadcast ends for a period of one year. A replay of the conference call will be available approximately two hours after the call ends for a period of two weeks, using the following dial-in numbers and passcode: 800-770-2030 inside the U.S., or 647-362-9199 for international callers, passcode 9824537.

In addition to the information provided in the Company's earnings news release, other statistical and financial information, which may be referred to during the conference call, will be available on Essent's website at http://ir.essentgroup.com/financials/quarterly-results/default.aspx.

Forward-Looking Statements:

This press release may include “forward-looking statements” which are subject to known and unknown risks and uncertainties, many of which may be beyond our control. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "will," “should,” “expect,” "plan," "anticipate," "believe," “estimate,” “predict,” or "potential" or the negative thereof or variations thereon or similar terminology. Actual events, results and outcomes may differ materially from our expectations due to a variety of known and unknown risks, uncertainties and other factors. Although it is not possible to identify all of these risks and factors, they include, among others, the following: changes in or to Fannie Mae and Freddie Mac (the “GSEs”), whether through Federal legislation, restructurings or a shift in business practices; failure to continue to meet the mortgage insurer eligibility requirements of the GSEs; competition for customers or the loss of a significant customer; lenders or investors seeking alternatives to private mortgage insurance; an increase in the number of loans insured through Federal government mortgage insurance programs; decline in the volume of low down payment mortgage originations; uncertainty of loss reserve estimates; decrease in the length of time our insurance policies are in force; deteriorating economic conditions; and other risks and factors described in Part I, Item 1A “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2023 filed with the Securities and Exchange Commission on February 16, 2024, as subsequently updated through other reports we file with the Securities and Exchange Commission. Any forward-looking information presented herein is made only as of the date of this press release, and we do not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

About the Company:

Essent Group Ltd. (NYSE: ESNT) is a Bermuda-based holding company (collectively with its subsidiaries, “Essent”) offering private mortgage insurance, reinsurance, and title insurance and settlement services to serve the housing finance industry. Additional information regarding Essent may be found at www.essentgroup.com.

Source: Essent Group Ltd.



Essent Group Ltd. and Subsidiaries
Financial Results and Supplemental Information (Unaudited)
Quarter Ended June 30, 2024


Exhibit A		Condensed Consolidated Statements of Comprehensive Income (Unaudited)
Exhibit B		Condensed Consolidated Balance Sheets (Unaudited)
Exhibit C		Consolidated Historical Quarterly Data
Exhibit D		U.S. Mortgage Insurance Portfolio Historical Quarterly Data
Exhibit E		New Insurance Written - U.S. Mortgage Insurance Portfolio
Exhibit F		Insurance in Force and Risk in Force - U.S. Mortgage Insurance Portfolio
Exhibit G		Other Risk in Force
Exhibit H		U.S. Mortgage Insurance Portfolio Vintage Data
Exhibit I		U.S. Mortgage Insurance Portfolio Reinsurance Vintage Data
Exhibit J		U.S. Mortgage Insurance Portfolio Geographic Data
Exhibit K		Rollforward of Defaults and Reserve for Losses and LAE - U.S. Mortgage Insurance Portfolio
Exhibit L		Detail of Reserves by Default Delinquency - U.S. Mortgage Insurance Portfolio
Exhibit M		Investments Available for Sale
Exhibit N		U.S. Mortgage Insurance Company Capital
Exhibit O		Ratios and Reconciliation of Non-GAAP Financial Measures

										Exhibit A

Essent Group Ltd. and Subsidiaries
Condensed Consolidated Statements of Comprehensive Income (Unaudited)


	Three Months Ended June 30,						Six Months Ended June 30,
(In thousands, except per share amounts)	2024			2023			2024			2023
Revenues:
Direct premiums written	$	272,910		$	249,167		$	541,841		$	488,658
Ceded premiums		(27,344	)		(39,546	)		(57,735	)		(73,137	)
Net premiums written		245,566			209,621			484,106			415,521
Decrease in unearned premiums		6,325			3,608			13,375			8,966
Net premiums earned		251,891			213,229			497,481			424,487
Net investment income		56,086			45,250			108,171			88,486
Realized investment gains (losses), net		(1,164	)		(1,589	)		(2,304	)		(2,077	)
Income (loss) from other invested assets		(419	)		(4,852	)		(2,334	)		(7,554	)
Other income		6,548			8,090			10,285			13,032
Total revenues		312,942			260,128			611,299			516,374

Losses and expenses:
Provision (benefit) for losses and LAE		(334	)		1,260			9,579			1,080
Other underwriting and operating expenses		55,987			42,174			113,336			90,369
Premiums retained by agents		10,215			—			19,706			—
Interest expense		7,849			7,394			15,711			14,330
Total losses and expenses		73,717			50,828			158,332			105,779

Income before income taxes		239,225			209,300			452,967			410,595
Income tax expense		35,616			37,067			67,639			67,535
Net income	$	203,609		$	172,233		$	385,328		$	343,060


Earnings per share:
Basic	$	1.93		$	1.62		$	3.65		$	3.22
Diluted		1.91			1.61			3.61			3.20

Weighted average shares outstanding:
Basic		105,657			106,249			105,677			106,594
Diluted		106,778			107,093			106,774			107,338

Net income	$	203,609		$	172,233		$	385,328		$	343,060

Other comprehensive income (loss):
Change in unrealized appreciation (depreciation) of investments		(5,375	)		(36,098	)		(27,141	)		22,655
Total other comprehensive income (loss)		(5,375	)		(36,098	)		(27,141	)		22,655
Comprehensive income	$	198,234		$	136,135		$	358,187		$	365,715

				Exhibit B

Essent Group Ltd. and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)


	June 30,			December 31,
(In thousands, except per share amounts)	2024			2023
*Assets*
Investments
Fixed maturities available for sale, at fair value	$	3,931,471		$	4,335,008
Short-term investments available for sale, at fair value		1,523,512			928,731
Total investments available for sale		5,454,983			5,263,739
Other invested assets		282,781			277,226
Total investments		5,737,764			5,540,965
Cash		197,402			141,787
Accrued investment income		35,534			35,689
Accounts receivable		56,974			63,266
Deferred policy acquisition costs		9,199			9,139
Property and equipment		42,905			41,304
Prepaid federal income tax		487,456			470,646
Goodwill and intangible assets, net		70,258			72,826
Other assets		55,253			51,051
Total assets	$	6,692,745		$	6,426,673

*Liabilities and Stockholders' Equity*
Liabilities
Reserve for losses and LAE	$	260,688		$	260,095
Unearned premium reserve		126,938			140,285
Net deferred tax liability		381,393			362,753
Credit facility borrowings, net of deferred costs		422,448			421,920
Other accrued liabilities		121,488			139,070
Total liabilities		1,312,955			1,324,123

Commitments and contingencies

Stockholders' Equity
Common shares, $0.015 par value:
Authorized - 233,333; issued and outstanding - 106,372 shares in 2024 and 106,597 shares in 2023		1,596			1,599
Additional paid-in capital		1,278,918			1,299,869
Accumulated other comprehensive loss		(307,637	)		(280,496	)
Retained earnings		4,406,913			4,081,578
Total stockholders' equity		5,379,790			5,102,550

Total liabilities and stockholders' equity	$	6,692,745		$	6,426,673

Return on average equity (1)		14.7	%		14.6	%

(1) The 2024 return on average equity is calculated by dividing annualized year-to-date 2024 net income by average equity. The 2023 return on average equity is calculated by dividing full year 2023 net income by average equity.

													Exhibit C
Essent Group Ltd. and Subsidiaries
Supplemental Information
Consolidated Historical Quarterly Data

	2024						2023
Selected Income Statement Data	June 30			March 31			December 31			September 30			June 30
(In thousands, except per share amounts)
Revenues:
Net premiums earned:
U.S. Mortgage Insurance Portfolio	$	217,513		$	212,479		$	211,083		$	209,351		$	195,502
GSE and other risk share		17,745			17,826			17,166			16,850			17,727
Title insurance		16,633			15,285			17,365			20,604			—
Net premiums earned		251,891			245,590			245,614			246,805			213,229
Net investment income		56,086			52,085			50,581			47,072			45,250
Realized investment (losses) gains, net		(1,164	)		(1,140	)		(4,892	)		(235	)		(1,589	)
(Loss) income from other invested assets		(419	)		(1,915	)		(421	)		(3,143	)		(4,852	)
Other income (loss) (1)		6,548			3,737			6,395			5,609			8,090
Total revenues		312,942			298,357			297,277			296,108			260,128

Losses and expenses:
Provision (benefit) for losses and LAE		(334	)		9,913			19,640			10,822			1,260
Other underwriting and operating expenses		55,987			57,349			55,248			54,814			42,174
Premiums retained by agents		10,215			9,491			11,475			13,175			—
Interest expense		7,849			7,862			7,953			7,854			7,394
Total losses and expenses		73,717			84,615			94,316			86,665			50,828

Income before income taxes		239,225			213,742			202,961			209,443			209,300
Income tax expense (2)		35,616			32,023			27,594			31,484			37,067
Net income	$	203,609		$	181,719		$	175,367		$	177,959		$	172,233

Earnings per share:
Basic	$	1.93		$	1.72		$	1.66		$	1.68		$	1.62
Diluted		1.91			1.70			1.64			1.66			1.61

Weighted average shares outstanding:
Basic		105,657			105,697			105,733			105,979			106,249
Diluted		106,778			106,770			106,823			107,025			107,093

Book value per share	$	50.58		$	48.96		$	47.87		$	44.98		$	44.24
Return on average equity (annualized)		15.4	%		14.1	%		14.2	%		14.9	%		14.7	%


Credit Facility
Borrowings outstanding	$	425,000		$	425,000		$	425,000		$	425,000		$	425,000
Undrawn committed capacity	$	400,000		$	400,000		$	400,000		$	400,000		$	400,000
Weighted average interest rate (end of period)		7.07	%		7.06	%		7.11	%		7.07	%		6.87	%
Debt-to-capital		7.32	%		7.52	%		7.69	%		8.12	%		8.24	%

(1) Other income includes net favorable (unfavorable) changes in the fair value of embedded derivatives associated with certain of our third-party reinsurance agreements, which for the quarters ended June 30, 2024, March 31, 2024, December 31, 2023, September 30, 2023, and June 30, 2023, were $732, ($1,902), $412, ($898), and $2,726, respectively.
(2) Income tax expense for the quarters ended June 30,2024, March 31, 2024, December 31, 2023, September 30, 2023, and June 30, 2023 includes $556, ($1,041), ($1,132), ($763), and ($888), respectively, of discrete tax expense (benefit) associated with realized and unrealized gains and losses. Income tax expense for the quarter ended March 31, 2024 also includes ($616) of excess tax benefits associated with the vesting of common shares and common share units. Income tax expense for the quarter ended December 31, 2023 also includes a $2,731 net benefit associated with the recognition of a deferred tax asset for unrealized losses on the investment portfolios of Essent Group and Essent Re upon the enactment of the Bermuda Corporate Income Tax. Income tax expense for the quarter ended June 30, 2023 also includes $5,295 of net discrete tax expense associated with prior year tax returns.

				Exhibit D
Essent Group Ltd. and Subsidiaries
Supplemental Information
U.S. Mortgage Insurance Portfolio Historical Quarterly Data


	2024						2023
Other Data:	June 30			March 31			December 31			September 30			June 30
($ in thousands)

U.S. Mortgage Insurance Portfolio
New insurance written	$	12,503,125		$	8,323,544		$	8,769,160		$	12,505,823		$	13,498,080
New risk written		3,449,623			2,289,508			2,409,340			3,458,467			3,726,513

Average insurance in force	$	239,538,571		$	238,595,268		$	239,005,961		$	237,270,093		$	233,484,941
Insurance in force (end of period)	$	240,669,165		$	238,477,402		$	239,078,262		$	238,661,612		$	235,649,884
Gross risk in force (end of period) (1)	$	65,269,064		$	64,247,810		$	64,061,374		$	63,605,057		$	62,403,400
Risk in force (end of period)	$	55,521,538		$	54,686,533		$	54,591,590		$	53,920,308		$	53,290,643
Policies in force		814,237			815,752			822,012			825,248			821,690
Weighted average coverage (2)		27.1	%		26.9	%		26.8	%		26.7	%		26.5	%
Annual persistency		86.7	%		86.9	%		86.9	%		86.6	%		85.8	%

Loans in default (count)		13,954			13,992			14,819			13,391			12,480
Percentage of loans in default		1.71	%		1.72	%		1.80	%		1.62	%		1.52	%

U.S. Mortgage Insurance Portfolio premium rate:
Base average premium rate (3)		0.41	%		0.41	%		0.40	%		0.40	%		0.40	%
Single premium cancellations (4)		—	%		—	%		—	%		—	%		—	%
Gross average premium rate		0.41	%		0.41	%		0.40	%		0.40	%		0.40	%
Ceded premiums		(0.05	%)		(0.05	%)		(0.05	%)		(0.05	%)		(0.07	%)
Net average premium rate		0.36	%		0.36	%		0.35	%		0.35	%		0.33	%


(1) Gross risk in force includes risk ceded under third-party reinsurance.
(2) Weighted average coverage is calculated by dividing end of period gross risk in force by end of period insurance in force.
(3) Base average premium rate is calculated by dividing annualized base premiums earned by average insurance in force for the period.
(4) Single premium cancellations is calculated by dividing annualized premiums on the cancellation of non-refundable single premium policies by average insurance in force for the period.

																Exhibit E

Essent Group Ltd. and Subsidiaries
Supplemental Information - U.S. Mortgage Insurance Portfolio
New Insurance Written: Flow


NIW by Credit Score
	Three Months Ended										Six Months Ended
	June 30, 2024					June 30, 2023					June 30, 2024					June 30, 2023
($ in thousands)
>=760	$	5,451,182		43.6	%	$	5,413,790		40.1	%	$	9,047,782		43.4	%	$	10,260,848		38.9	%
740-759		2,165,026		17.3			2,428,773		18.0			3,575,472		17.2			4,826,755		18.3
720-739		1,819,751		14.6			2,194,400		16.3			3,064,399		14.7			4,399,244		16.7
700-719		1,585,167		12.7			2,022,302		15.0			2,725,597		13.1			4,025,194		15.2
680-699		870,054		7.0			1,032,061		7.6			1,433,473		6.9			2,132,876		8.1
<=679		611,945		4.8			406,754		3.0			979,946		4.7			746,952		2.8
Total	$	12,503,125		100.0	%	$	13,498,080		100.0	%	$	20,826,669		100.0	%	$	26,391,869		100.0	%

Weighted average credit score		748					746					748					746



NIW by LTV
	Three Months Ended										Six Months Ended
	June 30, 2024					June 30, 2023					June 30, 2024					June 30, 2023
($ in thousands)
85.00% and below	$	854,349		6.8	%	$	988,752		7.3	%	$	1,414,248		6.8	%	$	1,951,761		7.4	%
85.01% to 90.00%		2,423,665		19.4			2,819,310		20.9			4,155,796		20.0			5,505,138		20.9
90.01% to 95.00%		6,874,853		55.0			7,339,533		54.4			11,392,508		54.7			14,769,646		55.9
95.01% and above		2,350,258		18.8			2,350,485		17.4			3,864,117		18.5			4,165,324		15.8
Total	$	12,503,125		100.0	%	$	13,498,080		100.0	%	$	20,826,669		100.0	%	$	26,391,869		100.0	%

Weighted average LTV		93	%				93	%				93	%				93	%



NIW by Product
	Three Months Ended										Six Months Ended
	June 30, 2024					June 30, 2023					June 30, 2024					June 30, 2023
Single Premium policies				1.3	%				4.3	%				1.6	%				4.1	%
Monthly Premium policies				98.7					95.7					98.4					95.9
				100.0	%				100.0	%				100.0	%				100.0	%



NIW by Purchase vs. Refinance
	Three Months Ended										Six Months Ended
	June 30, 2024					June 30, 2023					June 30, 2024					June 30, 2023
Purchase				97.8	%				98.8	%				97.6	%				98.7	%
Refinance				2.2					1.2					2.4					1.3
				100.0	%				100.0	%				100.0	%				100.0	%

														Exhibit F

Essent Group Ltd. and Subsidiaries
Supplemental Information
Insurance in Force and Risk in Force - U.S. Mortgage Insurance Portfolio


Portfolio by Credit Score
IIF by FICO score	June 30, 2024					March 31, 2024					June 30, 2023
($ in thousands)
>=760	$	97,668,435		40.6	%	$	96,712,431		40.6	%	$	95,925,520		40.8	%
740-759		41,915,598		17.4			41,477,680		17.4			40,733,799		17.3
720-739		37,678,804		15.7			37,342,339		15.7			36,791,104		15.6
700-719		32,331,564		13.4			32,023,895		13.4			30,970,132		13.1
680-699		19,751,956		8.2			19,664,999		8.2			19,667,866		8.3
<=679		11,322,808		4.7			11,256,058		4.7			11,561,463		4.9
Total	$	240,669,165		100.0	%	$	238,477,402		100.0	%	$	235,649,884		100.0	%

Weighted average credit score		746					746					746

Gross RIF by FICO score	June 30, 2024					March 31, 2024					June 30, 2023
($ in thousands)
>=760	$	26,238,140		40.2	%	$	25,806,552		40.2	%	$	25,138,762		40.3	%
740-759		11,525,987		17.7			11,326,253		17.6			10,922,780		17.5
720-739		10,362,021		15.9			10,206,055		15.9			9,896,425		15.9
700-719		8,899,342		13.6			8,757,648		13.6			8,319,353		13.3
680-699		5,382,312		8.2			5,321,802		8.3			5,248,349		8.4
<=679		2,861,262		4.4			2,829,500		4.4			2,877,731		4.6
Total	$	65,269,064		100.0	%	$	64,247,810		100.0	%	$	62,403,400		100.0	%

Portfolio by LTV
IIF by LTV	June 30, 2024					March 31, 2024					June 30, 2023
($ in thousands)
85.00% and below	$	16,927,111		7.0	%	$	18,397,395		7.7	%	$	22,427,649		9.5	%
85.01% to 90.00%		61,774,991		25.7			62,218,749		26.1			63,562,258		27.0
90.01% to 95.00%		123,414,332		51.3			120,666,455		50.6			115,768,826		49.1
95.01% and above		38,552,731		16.0			37,194,803		15.6			33,891,151		14.4
Total	$	240,669,165		100.0	%	$	238,477,402		100.0	%	$	235,649,884		100.0	%

Weighted average LTV		93	%				93	%				93	%

Gross RIF by LTV	June 30, 2024					March 31, 2024					June 30, 2023
($ in thousands)
85.00% and below	$	2,010,864		3.1	%	$	2,188,074		3.4	%	$	2,667,981		4.3	%
85.01% to 90.00%		15,238,201		23.3			15,329,091		23.9			15,583,198		25.0
90.01% to 95.00%		36,405,573		55.8			35,556,840		55.3			34,026,320		54.5
95.01% and above		11,614,426		17.8			11,173,805		17.4			10,125,901		16.2
Total	$	65,269,064		100.0	%	$	64,247,810		100.0	%	$	62,403,400		100.0	%

Portfolio by Loan Amortization Period
IIF by Loan Amortization Period	June 30, 2024					March 31, 2024					June 30, 2023
($ in thousands)
FRM 30 years and higher	$	235,138,420		97.7	%	$	232,753,590		97.6	%	$	228,745,641		97.1	%
FRM 20-25 years		1,322,021		0.5			1,473,431		0.6			2,124,690		0.9
FRM 15 years		1,276,780		0.5			1,359,795		0.6			1,953,448		0.8
ARM 5 years and higher		2,931,944		1.3			2,890,586		1.2			2,826,105		1.2
Total	$	240,669,165		100.0	%	$	238,477,402		100.0	%	$	235,649,884		100.0	%

													Exhibit G

Essent Group Ltd. and Subsidiaries
Supplemental Information
Other Risk in Force

	2024						2023
($ in thousands)	June 30			March 31			December 31			September 30			June 30
GSE and other risk share (1):
Risk in Force	$	2,304,885		$	2,307,267		$	2,244,944		$	2,247,393		$	2,276,702
Reserve for losses and LAE	$	33		$	32		$	29		$	54		$	55

Weighted average credit score		750			750			749			749			749
Weighted average LTV		82	%		82	%		82	%		82	%		83	%

(1) GSE and other risk share includes GSE risk share and other reinsurance transactions. Essent Reinsurance Ltd. ("Essent Re") provides insurance or reinsurance relating to the risk in force on loans in reference pools acquired by Freddie Mac and Fannie Mae.

																							Exhibit H

Essent Group Ltd. and Subsidiaries
Supplemental Information
U.S. Mortgage Insurance Portfolio Vintage Data
June 30, 2024


								Insurance in Force
Year	Original Insurance Written ($ in thousands)		Remaining Insurance in Force ($ in thousands)		% Remaining of Original Insurance		Number of Policies in Force	Weighted Average Coupon		% Purchase		>90% LTV		>95% LTV		FICO < 700		FICO >= 760		Incurred Loss Ratio (Inception to Date) (1)		Number of Loans in Default	Percentage of Loans in Default

2010 - 2014	$	60,668,851	$	1,047,692	1.7	%	5,772	4.28	%	66.1	%	49.8	%	1.2	%	10.3	%	49.0	%	2.4	%	252	4.37	%
2015		26,193,656		1,038,672	4.0		6,156	4.27		79.8		66.5		5.5		18.1		39.1		2.3		245	3.98
2016		34,949,319		2,570,524	7.4		15,203	3.92		86.8		79.2		13.3		16.3		41.6		2.0		427	2.81
2017		43,858,322		4,139,552	9.4		25,251	4.29		91.1		77.1		22.5		21.2		36.6		3.1		990	3.92
2018		47,508,525		5,073,930	10.7		28,900	4.80		95.1		73.3		26.7		21.8		32.4		4.1		1,257	4.35
2019		63,569,183		11,216,155	17.6		54,299	4.23		88.9		71.1		25.6		18.9		35.2		3.8		1,635	3.01
2020		107,944,065		40,789,474	37.8		159,965	3.20		71.0		60.5		14.0		10.9		45.5		2.6		2,153	1.35
2021		84,218,250		55,842,833	66.3		185,000	3.09		88.2		65.1		16.3		13.8		40.4		6.0		3,042	1.64
2022		63,061,262		54,555,338	86.5		156,491	5.08		98.0		65.8		11.4		12.6		39.6		16.8		2,598	1.66
2023		47,666,852		43,986,658	92.3		123,145	6.65		98.8		72.7		18.5		11.0		38.9		15.7		1,297	1.05
2024 (through June 30)		20,826,669		20,408,337	98.0		54,055	6.88		97.6		73.4		18.8		11.7		42.9		5.8		58	0.11
Total	$	600,464,954	$	240,669,165	40.1		814,237	4.66		90.3		67.3		16.0		12.9		40.6		4.3		13,954	1.71

(1) Incurred loss ratio is calculated by dividing the sum of case reserves and cumulative amount paid for claims by cumulative net premiums earned.

																					Exhibit I
Essent Group Ltd. and Subsidiaries
Supplemental Information
U.S. Mortgage Insurance Portfolio Reinsurance Vintage Data
June 30, 2024
($ in thousands)
Insurance Linked Notes (1)
																Earned Premiums Ceded
Deal Name	Vintage	Remaining Insurance in Force		Remaining Risk in Force		Original Reinsurance in Force		Remaining Reinsurance in Force		Losses Ceded to Date		Original First Layer Retention		Remaining First Layer Retention		Quarter-to-Date		Year-to-Date			Reduction in PMIERs Minimum Required Assets (3)
Radnor Re 2021-1	Aug. 2020 - Mar. 2021	$	27,796,132	$	7,390,779	$	557,911	$	250,732	$	—	$	278,956	$	278,227	$	2,148	$	4,473		$	174,722
Radnor Re 2021-2	Apr. 2021 - Sep. 2021		32,876,424		9,007,485		439,407		301,015		—		279,415		277,770		3,563		7,237			239,363
Radnor Re 2022-1	Oct. 2021 - Jul. 2022		29,790,115		8,096,398		237,868		209,409		—		303,761		302,032		3,736		7,653			192,656
Radnor Re 2023-1	Aug. 2022 - Jun. 2023		29,594,148		8,102,672		281,462		281,462		—		281,463		281,434		3,473		6,952			266,826
Total		$	120,056,819	$	32,597,334	$	1,516,648	$	1,042,618	$	—	$	1,143,595	$	1,139,463	$	12,920	$	26,315	(5)	$	873,567


Excess of Loss Reinsurance (2)
																Earned Premiums Ceded
Deal Name	Vintage	Remaining Insurance in Force		Remaining Risk in Force		Original Reinsurance in Force		Remaining Reinsurance in Force		Losses Ceded to Date		Original First Layer Retention		Remaining First Layer Retention		Quarter-to-Date		Year-to-Date		Reduction in PMIERs Minimum Required Assets (3)
XOL 2019-1	Jan. 2018 - Dec. 2018	$	5,024,587	$	1,321,732	$	118,650	$	76,144	$	—	$	253,643	$	244,991	$	607	$	1,227	$	—
XOL 2020-1	Jan. 2019 - Aug. 2019		6,290,687		1,658,671		55,102		32,770		—		215,605		212,557		267		547		—
XOL 2022-1	Oct. 2021 - Dec. 2022		67,094,902		18,213,963		141,992		141,992		—		507,114		502,788		1,593		3,186		137,802
XOL 2023-1	Jan. 2023 - Dec. 2023		39,252,349		10,868,626		36,627		36,627		—		366,270		366,154		434		868		35,310
Total		$	117,662,525	$	32,062,992	$	352,371	$	287,533	$	—	$	1,342,632	$	1,326,490	$	2,901	$	5,828	$	173,112

Quota Share Reinsurance (2)
										Losses Ceded						Ceding Commission				Earned Premiums Ceded
Year	Ceding Percentage	Remaining Insurance in Force		Remaining Risk in Force		Remaining Ceded Insurance in Force		Remaining Ceded Risk in Force		Quarter-to-Date			Year-to-Date			Quarter-to-Date		Year-to-Date		Quarter-to-Date		Year-to-Date		Reduction in PMIERs Minimum Required Assets (3)
Sep. 2019 - Dec. 2020	(4)	$	45,488,690	$	12,209,907	$	10,259,829	$	2,717,800	$	(609	)	$	(790	)	$	2,264	$	4,645	$	3,580	$	7,803	$	161,813
Jan. 2022 - Dec. 2022	20%		54,504,030		14,796,646		10,900,806		2,959,329		(469	)		1,255			1,879		3,784		3,101		8,445		218,858
Jan. 2023 - Dec. 2023	17.5%		39,137,562		10,840,618		6,849,073		1,897,108		1,020			2,461			1,349		2,715		3,852		8,163		143,367
Jan. 2024 - Dec. 2024	15%		20,388,139		5,620,923		3,058,221		843,138		159			159			407		508		1,035		1,252		58,872
Total		$	159,518,421	$	43,468,094	$	31,067,929	$	8,417,375	$	101		$	3,085		$	5,899	$	11,652	$	11,568	$	25,663	$	582,910

(1) Reinsurance provided by unaffiliated special purpose insurers through the issuance of mortgage insurance-linked notes ("ILNs").
(2) Reinsurance provided by panels of reinsurers.
(3) Represents the reduction in Essent Guaranty, Inc.'s Minimum Required Assets based on our interpretation of the PMIERs.
(4) Reinsurance coverage on 40% of eligible single premium policies and 20% of all other eligible policies.
(5) Excludes ($45) and ($71) of benefit in ceded premium on retired ILN's for the three and six months ended June 30, 2024, respectively.

					Exhibit J

Essent Group Ltd. and Subsidiaries
Supplemental Information
U.S. Mortgage Insurance Portfolio Geographic Data


IIF by State
	June 30, 2024		March 31, 2024		June 30, 2023
CA	12.7	%	12.9	%	13.1	%
FL	11.6		11.3		10.8
TX	10.8		10.6		10.5
CO	4.1		4.1		4.1
AZ	3.8		3.8		3.7
GA	3.6		3.5		3.3
WA	3.4		3.5		3.4
NC	3.0		2.9		2.8
IL	2.7		2.7		2.9
VA	2.7		2.7		2.9
All Others	41.6		42.0		42.5
Total	100.0	%	100.0	%	100.0	%



Gross RIF by State
	June 30, 2024		March 31, 2024		June 30, 2023
CA	12.6	%	12.8	%	13.0	%
FL	11.8		11.6		11.1
TX	11.1		10.9		10.8
CO	4.1		4.1		4.1
AZ	3.8		3.8		3.8
GA	3.7		3.6		3.4
WA	3.4		3.4		3.4
NC	3.0		2.9		2.8
IL	2.6		2.7		2.8
VA	2.6		2.7		2.8
All Others	41.3		41.5		42.0
Total	100.0	%	100.0	%	100.0	%

													Exhibit K

Essent Group Ltd. and Subsidiaries
Supplemental Information
Rollforward of Defaults and Reserve for Losses and LAE
U.S. Mortgage Insurance Portfolio

Rollforward of Insured Loans in Default
	Three Months Ended
	2024						2023
	June 30			March 31			December 31			September 30			June 30
Beginning default inventory		13,992			14,819			13,391			12,480			12,773
Plus: new defaults (A)		8,119			8,260			9,007			7,953			6,575
Less: cures		(7,956	)		(8,951	)		(7,418	)		(6,902	)		(6,761	)
Less: claims paid		(183	)		(123	)		(148	)		(129	)		(96	)
Less: rescissions and denials, net		(18	)		(13	)		(13	)		(11	)		(11	)
Ending default inventory		13,954			13,992			14,819			13,391			12,480

(A) New defaults remaining as of June 30, 2024		5,944			2,466			1,922			1,204			699
Cure rate (1)		27	%		70	%		79	%		85	%		89	%

Total amount paid for claims (in thousands)	$	5,566		$	3,605		$	3,411		$	2,956		$	1,890
Average amount paid per claim (in thousands)	$	30		$	29		$	23		$	23		$	20
Severity		60	%		65	%		54	%		66	%		58	%

Rollforward of Reserve for Losses and LAE
	Three Months Ended
	2024						2023
($ in thousands)	June 30			March 31			December 31			September 30			June 30
Reserve for losses and LAE at beginning of period	$	253,565		$	245,402		$	226,617		$	216,888		$	215,957
Less: Reinsurance recoverables		26,570			24,005			20,656			17,958			16,357
Net reserve for losses and LAE at beginning of period		226,995			221,397			205,961			198,930			199,600
Add provision for losses and LAE occurring in:
Current period	$	30,653		$	39,396		$	38,922		$	35,609		$	31,377
Prior years		(31,880	)		(30,062	)		(19,912	)		(25,533	)		(30,107	)
Incurred losses and LAE during the period		(1,227	)		9,334			19,010			10,076			1,270
Deduct payments for losses and LAE occurring in:
Current period		478			1			330			156			31
Prior years		5,205			3,735			3,244			2,889			1,909
Loss and LAE payments during the period		5,683			3,736			3,574			3,045			1,940
Net reserve for losses and LAE at end of period		220,085			226,995			221,397			205,961			198,930
Plus: Reinsurance recoverables		26,022			26,570			24,005			20,656			17,958
Reserve for losses and LAE at end of period	$	246,107		$	253,565		$	245,402		$	226,617		$	216,888



(1) The cure rate is calculated by dividing new defaults remaining as of the reporting date by the original number of new defaults reported in the quarterly period and subtracting that percentage from 100%.

									Exhibit L
Essent Group Ltd. and Subsidiaries
Supplemental Information
Detail of Reserves by Default Delinquency
U.S. Mortgage Insurance Portfolio

	June 30, 2024
	Number of Policies in Default		Percentage of Policies in Default		Amount of Reserves		Percentage of Reserves		Defaulted RIF		Reserves as a Percentage of Defaulted RIF
($ in thousands)
Missed Payments:
Three payments or less	7,024		50	%	$	43,396	19	%	$	525,876	8	%
Four to eleven payments	4,887		35			93,489	41			383,685	24
Twelve or more payments	1,908		14			82,529	37			135,616	61
Pending claims	135		1			7,562	3			8,540	89
Total case reserves	13,954		100	%		226,976	100	%	$	1,053,717	22	%
IBNR						17,023
LAE						2,108
Total reserves for losses and LAE					$	246,107

Average reserve per default:
Case					$	16.3
Total					$	17.6

Default Rate	1.71	%


	December 31, 2023
	Number of Policies in Default		Percentage of Policies in Default		Amount of Reserves		Percentage of Reserves		Defaulted RIF		Reserves as a Percentage of Defaulted RIF
($ in thousands)
Missed Payments:
Three payments or less	7,288		49	%	$	44,607	20	%	$	527,419	8	%
Four to eleven payments	5,421		37			97,424	43			417,876	23
Twelve or more payments	1,984		13			78,540	35			132,257	59
Pending claims	126		1			5,550	2			6,302	88
Total case reserves	14,819		100	%		226,121	100	%	$	1,083,854	21	%
IBNR						16,959
LAE						2,322
Total reserves for losses and LAE					$	245,402

Average reserve per default:
Case					$	15.3
Total					$	16.6

Default Rate	1.80	%


	June 30, 2023
	Number of Policies in Default		Percentage of Policies in Default		Amount of Reserves		Percentage of Reserves		Defaulted RIF		Reserves as a Percentage of Defaulted RIF
($ in thousands)
Missed Payments:
Three payments or less	5,581		45	%	$	33,864	17	%	$	388,012	9	%
Four to eleven payments	4,725		38			82,196	41			348,955	24
Twelve or more payments	2,045		16			78,236	39			123,903	63
Pending claims	129		1			5,680	3			6,687	85
Total case reserves	12,480		100	%		199,976	100	%	$	867,557	23	%
IBNR						14,998
LAE						1,914
Total reserves for losses and LAE					$	216,888

Average reserve per default:
Case					$	16.0
Total					$	17.4

Default Rate	1.52	%

								Exhibit M

Essent Group Ltd. and Subsidiaries
Supplemental Information
Investments Available for Sale

Investments Available for Sale by Asset Class
Asset Class	June 30, 2024					December 31, 2023
($ in thousands)	Fair Value			Percent		Fair Value		Percent
U.S. Treasury securities	$	999,176		18.3	%	$	996,382	18.9	%
U.S. agency securities		—		—			7,195	0.1
U.S. agency mortgage-backed securities		757,590		13.9			821,346	15.6
Municipal debt securities		524,396		9.7			547,258	10.5
Non-U.S. government securities		66,031		1.2			67,447	1.3
Corporate debt securities		1,151,976		21.1			1,297,055	24.7
Residential and commercial mortgage securities		498,987		9.1			517,940	9.8
Asset-backed securities		455,453		8.3			564,995	10.7
Money market funds		1,001,374		18.4			444,121	8.4
Total investments available for sale	$	5,454,983		100.0	%	$	5,263,739	100.0	%

Investments Available for Sale by Credit Rating
Rating (1)	June 30, 2024					December 31, 2023
($ in thousands)	Fair Value			Percent		Fair Value		Percent
Aaa	$	2,409,458		54.1	%	$	2,561,363	53.2	%
Aa1		95,534		2.1			104,474	2.2
Aa2		265,098		6.0			291,501	6.0
Aa3		187,946		4.1			208,882	4.3
A1		352,488		7.9			377,188	7.8
A2		253,728		5.7			329,423	6.8
A3		252,599		5.7			253,081	5.3
Baa1		207,665		4.7			220,901	4.6
Baa2		199,072		4.5			226,449	4.7
Baa3		158,219		3.6			166,121	3.4
Below Baa3		71,802		1.6			80,235	1.7
Total (2)	$	4,453,609		100.0	%	$	4,819,618	100.0	%

(1) Based on ratings issued by Moody's, if available. S&P or Fitch rating utilized if Moody's not available.
(2) Excludes $1,001,374 and $444,121 of money market funds at June 30, 2024 and December 31, 2023, respectively.

Investments Available for Sale by Duration and Book Yield
Effective Duration	June 30, 2024					December 31, 2023
($ in thousands)	Fair Value			Percent		Fair Value		Percent
< 1 Year	$	2,334,120		42.8	%	$	1,892,074	35.9	%
1 to < 2 Years		310,087		5.7			371,583	7.1
2 to < 3 Years		447,721		8.1			538,775	10.2
3 to < 4 Years		404,998		7.4			402,668	7.6
4 to < 5 Years		384,051		7.0			376,722	7.2
5 or more Years		1,574,006		29.0			1,681,917	32.0
Total investments available for sale	$	5,454,983		100.0	%	$	5,263,739	100.0	%

Pre-tax investment income yield:
Three months ended		3.84	%
Six months ended June 30, 2024		3.76	%

Holding company net cash and investments available for sale:
($ in thousands)
As of June 30, 2024	$	808,389
As of December 31, 2023	$	693,507

														Exhibit N

Essent Group Ltd. and Subsidiaries
Supplemental Information
U.S. Mortgage Insurance Company Capital

		2024						2023
		June 30			March 31			December 31			September 30			June 30
($ in thousands)
U.S. Mortgage Insurance Subsidiaries:
Combined statutory capital (1)		$	3,530,462		$	3,453,553		$	3,376,117		$	3,309,522		$	3,243,086

Combined net risk in force (2)		$	34,812,227		$	34,463,082		$	34,549,500		$	34,203,678		$	34,019,643

Risk-to-capital ratios: (3)
	Essent Guaranty, Inc.	10.2:1			10.3:1			10.6:1			10.7:1			10.8:1
	Essent Guaranty of PA, Inc.	0.3:1			0.4:1			0.4:1			0.5:1			0.5:1
	Combined (4)	9.9:1			10.0:1			10.2:1			10.3:1			10.5:1

Essent Guaranty, Inc. PMIERs Data (5):
	Available Assets	$	3,513,609		$	3,464,119		$	3,379,936		$	3,318,179		$	3,245,481
	Minimum Required Assets		2,052,135			1,999,928			1,985,545			1,910,659			1,991,741
	PMIERs excess Available Assets	$	1,461,474		$	1,464,191		$	1,394,391		$	1,407,520		$	1,253,740
	PMIERs sufficiency ratio (6)		171	%		173	%		170	%		174	%		163	%

Essent Reinsurance Ltd.:
Stockholder's equity (GAAP basis)		$	1,793,777		$	1,793,005		$	1,758,665		$	1,684,122		$	1,633,763

Net risk in force (2)		$	22,770,165		$	22,271,316		$	22,043,926		$	21,739,419		$	21,327,762


(1) Combined statutory capital equals the sum of statutory capital of Essent Guaranty, Inc. plus Essent Guaranty of PA, Inc., after eliminating the impact of intercompany transactions. Statutory capital is computed based on accounting practices prescribed or permitted by the Pennsylvania Insurance Department and the National Association of Insurance Commissioners Accounting Practices and Procedures Manual.
(2) Net risk in force represents total risk in force, net of reinsurance ceded and net of exposures on policies for which loss reserves have been established.
(3) The risk-to-capital ratio is calculated as the ratio of net risk in force to statutory capital.
(4) The combined risk-to-capital ratio equals the sum of the net risk in force of Essent Guaranty, Inc. and Essent Guaranty of PA, Inc. divided by the combined statutory capital.
(5) Data is based on our interpretation of the PMIERs as of the dates indicated.
(6) PMIERs sufficiency ratio is calculated by dividing Available Assets by Minimum Required Assets.

																Exhibit O
Essent Group Ltd. and Subsidiaries
Supplemental Information
Ratios and Reconciliation of Non-GAAP Financial Measures

	2024						2023
	June 30			March 31			December 31			September 30			June 30
Loss Ratio (1)		(0.1	)%		4.0	%		7.9	%		4.4	%		0.6	%
Expense Ratio (2)		26.1	%		27.1	%		27.0	%		27.3	%		19.8	%
Combined Ratio		26.0	%		31.1	%		34.9	%		31.7	%		20.4	%

Underwriting Margin (3)		74.0	%		68.9	%		65.1	%		68.3	%		79.6	%

We believe that loss, expense and combined ratios are important measures of our financial performance. As a result of the July 1, 2023 acquisition of Agents National Title and Boston National Title (collectively "Title"), the consolidated loss, expense and combined ratios ("Consolidated Ratios") for the three and six months ended June 30, 2024 lack comparability with periods prior to the acquisition. In order to provide investors with more comparative information to prior periods, Essent has prepared the table below to reconcile the Consolidated Ratios to ratios excluding Title, as shown below. Ratios excluding Title are financial measures that are not calculated under standards or rules that comprise accounting principles generally accepted in the United States (GAAP) and are referred to as non-GAAP measures. Ratios excluding Title are measures used to monitor our results and should not be viewed as a substitute for those measures determined in accordance with GAAP. The following table sets forth the reconciliation of the loss, expense and combined ratios excluding Title to the most comparable GAAP amount for the three and six months ended June 30, 2024 in accordance with Regulation G:

	Three Months Ended June 30, 2024									Six Months Ended June 30, 2024
	Consolidated			Title			Excluding Title			Consolidated			Title			Excluding Title
($ in thousands)
Revenues:
Net premiums earned	$	251,891		$	16,633		$	235,258		$	497,481		$	31,917		$	465,564
Net investment income		56,086			804			55,282			108,171			1,555			106,616
Realized investment losses, net		(1,164	)		—			(1,164	)		(2,304	)		—			(2,304	)
(Loss) income from other invested assets		(419	)		—			(419	)		(2,334	)		—			(2,334	)
Settlement services (4)		1,412			1,412			—			2,837			2,837			—
Other income		5,136			474			4,662			7,448			881			6,567
Total revenues		312,942			19,323			293,619			611,299			37,190			574,109

Losses and expenses:
Provision (benefit) for losses and LAE		(334	)		892			(1,226	)		9,579			1,467			8,112
Other underwriting and operating expenses (5)		55,987			12,909			43,078			113,336			24,719			88,617
Premiums retained by agents		10,215			10,215			—			19,706			19,706			—
Interest expense		7,849			—			7,849			15,711			—			15,711
Total losses and expenses		73,717			24,016			49,701			158,332			45,892			112,440

Loss ratio (1)		(0.1	%)		4.9	%		(0.5	%)		1.9	%		4.2	%		1.7	%
Expense ratio (2)		26.1	%		128.1	%		18.3	%		26.6	%		127.8	%		19.0	%
Combined ratio		26.0	%		133.0	%		17.8	%		28.5	%		132.0	%		20.7	%

Underwriting Margin (3)		74.0	%		(33.0	%)		82.2	%		71.5	%		(32.0	%)		79.3	%

(1) Loss ratio is calculated by dividing the provision for losses and LAE by the sum of net premiums earned and settlement services revenue, if applicable.
(2) Expense ratio is calculated by dividing the sum of other underwriting and operating expenses and premiums retained by agents by the sum of net premiums earned and settlement services revenue, if applicable.
(3) Calculated as the inverse of the combined ratio.
(4) Settlement services revenue is included in "Other income" within Exhibit A and Exhibit C.
(5) Title expenses reflect only direct expenses of Title operations and do not include corporate or centralized support expense allocations.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240802385122/en/

Contacts

Media Contact

610.230.0556

media@essentgroup.com

Investor Relations Contact

Philip Stefano

Vice President, Investor Relations

855-809-ESNT

ir@essentgroup.com

Search Hotels in Daly City

Find A Business

or Browse Listings

Essent Group Ltd. Announces Second Quarter 2024 Results and Declares Quarterly Dividend

Contacts