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

November 01, 2024 at 06:30 AM EDT

Essent Group Ltd. (NYSE: ESNT) today reported net income for the quarter ended September 30, 2024 of $176.2 million or $1.65 per diluted share, compared to $178.0 million or $1.66 per diluted share for the quarter ended September 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 December 11, 2024, to shareholders of record on December 2, 2024.

“We are pleased with our third quarter financial results, as we continue to generate high quality earnings,” said Mark A. Casale, Chairman and Chief Executive Officer. “Our results continue to benefit from the impact of interest rates on persistency and the growth in our investment portfolio. Our performance for the quarter demonstrates the strength of our operating model in producing strong returns and growing book value per share.”

Financial Highlights:

New insurance written for the third quarter of 2024 was $12.5 billion, consistent with the second quarter of 2024 and the third quarter of 2023.

Insurance in force as of September 30, 2024 was $243.0 billion, compared to $240.7 billion as of June 30, 2024 and $238.7 billion as of September 30, 2023.

Net investment income for the nine months ended September 30, 2024 was $165.5 million, up 22% from the comparable period in 2023.

In September, Essent closed its 10^th mortgage insurance-linked note transaction, Radnor Re 2024-1, which provides $363 million of collateralized reinsurance coverage for new insurance written from July 2023 through July 2024.

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 September 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 September 30,						Nine Months Ended September 30,
(In thousands, except per share amounts)		2024			2023			2024			2023
Revenues:
Direct premiums written	$	277,754		$	270,868		$	819,595		$	759,526
Ceded premiums		(34,789	)		(30,294	)		(92,524	)		(103,431	)
Net premiums written		242,965			240,574			727,071			656,095
Decrease in unearned premiums		5,971			6,231			19,346			15,197
Net premiums earned		248,936			246,805			746,417			671,292
Net investment income		57,340			47,072			165,511			135,558
Realized investment gains (losses), net		68			(235	)		(2,236	)		(2,312	)
Income (loss) from other invested assets		2,820			(3,143	)		486			(10,697	)
Other income		7,414			5,609			17,699			18,641
Total revenues		316,578			296,108			927,877			812,482

Losses and expenses:
Provision for losses and LAE		30,666			10,822			40,245			11,902
Other underwriting and operating expenses		57,259			54,814			170,595			145,183
Premiums retained by agents		9,622			13,175			29,328			13,175
Interest expense		11,457			7,854			27,168			22,184
Total losses and expenses		109,004			86,665			267,336			192,444

Income before income taxes		207,574			209,443			660,541			620,038
Income tax expense		31,399			31,484			99,038			99,019
Net income	$	176,175		$	177,959		$	561,503		$	521,019


Earnings per share:
Basic	$	1.67		$	1.68		$	5.32		$	4.90
Diluted		1.65			1.66			5.26			4.86

Weighted average shares outstanding:
Basic		105,266			105,979			105,539			106,387
Diluted		106,554			107,025			106,700			107,232

Net income	$	176,175		$	177,959		$	561,503		$	521,019

Other comprehensive income (loss):
Change in unrealized appreciation (depreciation) of investments		117,358			(76,248	)		90,217			(53,593	)
Total other comprehensive income (loss)		117,358			(76,248	)		90,217			(53,593	)
Comprehensive income	$	293,533		$	101,711		$	651,720		$	467,426

				Exhibit B

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


	September 30,			December 31,
(In thousands, except per share amounts)		2024			2023
*Assets*
Investments
Fixed maturities available for sale, at fair value	$	4,919,868		$	4,335,008
Short-term investments available for sale, at fair value		1,030,631			928,731
Total investments available for sale		5,950,499			5,263,739
Other invested assets		294,931			277,226
Total investments		6,245,430			5,540,965
Cash		109,306			141,787
Accrued investment income		40,453			35,689
Accounts receivable		54,394			63,266
Deferred policy acquisition costs		9,491			9,139
Property and equipment		41,221			41,304
Prepaid federal income tax		494,356			470,646
Goodwill and acquired intangible assets, net		69,907			72,826
Other assets		61,981			51,051
Total assets	$	7,126,539		$	6,426,673

*Liabilities and Stockholders' Equity*
Liabilities
Reserve for losses and LAE	$	288,316		$	260,095
Unearned premium reserve		120,939			140,285
Net deferred tax liability		410,761			362,753
Senior notes due 2029, net		493,673			—
Credit facility borrowings, net		—			421,920
Other accrued liabilities		171,865			139,070
Total liabilities		1,485,554			1,324,123

Commitments and contingencies

Stockholders' Equity
Common shares, $0.015 par value:
Authorized - 233,333; issued and outstanding - 106,204 shares in 2024 and 106,597 shares in 2023		1,593			1,599
Additional paid-in capital		1,276,572			1,299,869
Accumulated other comprehensive loss		(190,279	)		(280,496	)
Retained earnings		4,553,099			4,081,578
Total stockholders' equity		5,640,985			5,102,550

Total liabilities and stockholders' equity	$	7,126,539		$	6,426,673

Return on average equity (1)		13.9	%		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	September 30			June 30			March 31			December 31			September 30
(In thousands, except per share amounts)
Revenues:
Net premiums earned:
U.S. Mortgage Insurance Portfolio	$	214,119		$	217,513		$	212,479		$	211,083		$	209,351
GSE and other risk share		17,130			17,745			17,826			17,166			16,850
Title insurance		17,687			16,633			15,285			17,365			20,604
Net premiums earned		248,936			251,891			245,590			245,614			246,805
Net investment income		57,340			56,086			52,085			50,581			47,072
Realized investment gains (losses), net		68			(1,164	)		(1,140	)		(4,892	)		(235	)
Income (loss) from other invested assets		2,820			(419	)		(1,915	)		(421	)		(3,143	)
Other income (1)		7,414			6,548			3,737			6,395			5,609
Total revenues		316,578			312,942			298,357			297,277			296,108

Losses and expenses:
Provision (benefit) for losses and LAE		30,666			(334	)		9,913			19,640			10,822
Other underwriting and operating expenses		57,259			55,987			57,349			55,248			54,814
Premiums retained by agents		9,622			10,215			9,491			11,475			13,175
Interest expense		11,457			7,849			7,862			7,953			7,854
Total losses and expenses		109,004			73,717			84,615			94,316			86,665

Income before income taxes		207,574			239,225			213,742			202,961			209,443
Income tax expense (2)		31,399			35,616			32,023			27,594			31,484
Net income	$	176,175		$	203,609		$	181,719		$	175,367		$	177,959

Earnings per share:
Basic	$	1.67		$	1.93		$	1.72		$	1.66		$	1.68
Diluted		1.65			1.91			1.70			1.64			1.66

Weighted average shares outstanding:
Basic		105,266			105,657			105,697			105,733			105,979
Diluted		106,554			106,778			106,770			106,823			107,025

Book value per share	$	53.11		$	50.58		$	48.96		$	47.87		$	44.98
Return on average equity (annualized)		12.8	%		15.4	%		14.1	%		14.2	%		14.9	%

Borrowings outstanding	$	500,000		$	425,000		$	425,000		$	425,000		$	425,000
Undrawn committed capacity	$	500,000		$	400,000		$	400,000		$	400,000		$	400,000
Weighted average interest rate (end of period)		6.25	%		7.07	%		7.06	%		7.11	%		7.07	%
Debt-to-capital		8.14	%		7.32	%		7.52	%		7.69	%		8.12	%

(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 September 30, 2024, June 30, 2024, March 31, 2024, December 31, 2023, and September 30, 2023, were ($1,173), $732, ($1,902), $412, and ($898), respectively.
(2) Income tax expense for the quarters ended September 30, 2024, June 30, 2024, March 31, 2024, December 31, 2023, and September 30, 2023 includes $475, $556, ($1,041), ($1,132), and ($763), 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.


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


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

U.S. Mortgage Insurance Portfolio
New insurance written	$	12,513,695		$	12,503,125		$	8,323,544		$	8,769,160		$	12,505,823
New risk written		3,437,465			3,449,623			2,289,508			2,409,340			3,458,467

Average insurance in force	$	242,065,632		$	239,538,571		$	238,595,268		$	239,005,961		$	237,270,093
Insurance in force (end of period)	$	242,976,043		$	240,669,165		$	238,477,402		$	239,078,262		$	238,661,612
Gross risk in force (end of period) (1)	$	66,237,992		$	65,269,064		$	64,247,810		$	64,061,374		$	63,605,057
Risk in force (end of period)	$	55,915,640		$	55,521,538		$	54,686,533		$	54,591,590		$	53,920,308
Policies in force		815,507			814,237			815,752			822,012			825,248
Weighted average coverage (2)		27.3	%		27.1	%		26.9	%		26.8	%		26.7	%
Annual persistency		86.6	%		86.7	%		86.9	%		86.9	%		86.6	%

Loans in default (count)		15,906			13,954			13,992			14,819			13,391
Percentage of loans in default		1.95	%		1.71	%		1.72	%		1.80	%		1.62	%

U.S. Mortgage Insurance Portfolio premium rate:
Base average premium rate (3)		0.41	%		0.41	%		0.41	%		0.40	%		0.40	%
Single premium cancellations (4)		—	%		—	%		—	%		—	%		—	%
Gross average premium rate		0.41	%		0.41	%		0.41	%		0.40	%		0.40	%
Ceded premiums		(0.06	%)		(0.05	%)		(0.05	%)		(0.05	%)		(0.05	%)
Net average premium rate		0.35	%		0.36	%		0.36	%		0.35	%		0.35	%


(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										Nine Months Ended
	September 30, 2024					September 30, 2023					September 30, 2024					September 30, 2023
($ in thousands)
>=760	$	5,339,574		42.7	%	$	5,212,343		41.8	%	$	14,387,356		43.2	%	$	15,473,191		39.8	%
740-759		2,141,817		17.1			2,205,066		17.6			5,717,289		17.1			7,031,821		18.1
720-739		1,764,319		14.1			1,911,320		15.3			4,828,718		14.5			6,310,564		16.2
700-719		1,622,450		13.0			1,867,510		14.9			4,348,047		13.0			5,892,704		15.1
680-699		918,116		7.3			891,471		7.1			2,351,589		7.1			3,024,347		7.8
<=679		727,419		5.8			418,113		3.3			1,707,365		5.1			1,165,065		3.0
Total	$	12,513,695		100.0	%	$	12,505,823		100.0	%	$	33,340,364		100.0	%	$	38,897,692		100.0	%

Weighted average credit score		747					747					747					746



NIW by LTV
	Three Months Ended										Nine Months Ended
	September 30, 2024					September 30, 2023					September 30, 2024					September 30, 2023
($ in thousands)
85.00% and below	$	836,186		6.7	%	$	849,250		6.7	%	$	2,250,434		6.7	%	$	2,801,011		7.2	%
85.01% to 90.00%		2,415,504		19.3			2,445,924		19.6			6,571,300		19.7			7,951,062		20.4
90.01% to 95.00%		6,616,174		52.9			6,614,050		52.9			18,008,682		54.0			21,383,696		55.0
95.01% and above		2,645,831		21.1			2,596,599		20.8			6,509,948		19.6			6,761,923		17.4
Total	$	12,513,695		100.0	%	$	12,505,823		100.0	%	$	33,340,364		100.0	%	$	38,897,692		100.0	%

Weighted average LTV		93	%				93	%				93	%				93	%



NIW by Product
	Three Months Ended										Nine Months Ended
	September 30, 2024					September 30, 2023					September 30, 2024					September 30, 2023
Single Premium policies				1.4	%				2.8	%				1.5	%				3.8	%
Monthly Premium policies				98.6					97.2					98.5					96.2
				100.0	%				100.0	%				100.0	%				100.0	%



NIW by Purchase vs. Refinance
	Three Months Ended										Nine Months Ended
	September 30, 2024					September 30, 2023					September 30, 2024					September 30, 2023
Purchase				97.0	%				99.0	%				97.4	%				98.8	%
Refinance				3.0					1.0					2.6					1.2
				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	September 30, 2024					June 30, 2024					September 30, 2023
($ in thousands)
>=760	$	98,553,455		40.6	%	$	97,668,435		40.6	%	$	97,027,348		40.7	%
740-759		42,377,559		17.4			41,915,598		17.4			41,362,480		17.3
720-739		37,947,254		15.6			37,678,804		15.7			37,297,809		15.6
700-719		32,685,044		13.5			32,331,564		13.4			31,674,346		13.3
680-699		19,890,335		8.2			19,751,956		8.2			19,850,176		8.3
<=679		11,522,396		4.7			11,322,808		4.7			11,449,453		4.8
Total	$	242,976,043		100.0	%	$	240,669,165		100.0	%	$	238,661,612		100.0	%

Weighted average credit score		746					746					746

Gross RIF by FICO score	September 30, 2024					June 30, 2024					September 30, 2023
($ in thousands)
>=760	$	26,614,399		40.2	%	$	26,238,140		40.2	%	$	25,594,262		40.1	%
740-759		11,715,485		17.7			11,525,987		17.7			11,165,727		17.6
720-739		10,485,311		15.8			10,362,021		15.9			10,090,889		15.9
700-719		9,044,551		13.7			8,899,342		13.6			8,568,811		13.5
680-699		5,451,406		8.2			5,382,312		8.2			5,327,434		8.4
<=679		2,926,840		4.4			2,861,262		4.4			2,857,934		4.5
Total	$	66,237,992		100.0	%	$	65,269,064		100.0	%	$	63,605,057		100.0	%

Portfolio by LTV
IIF by LTV	September 30, 2024					June 30, 2024					September 30, 2023
($ in thousands)
85.00% and below	$	15,555,555		6.4	%	$	16,927,111		7.0	%	$	21,226,685		8.9	%
85.01% to 90.00%		61,262,960		25.2			61,774,991		25.7			63,374,562		26.6
90.01% to 95.00%		125,919,529		51.8			123,414,332		51.3			118,461,030		49.6
95.01% and above		40,237,999		16.6			38,552,731		16.0			35,599,335		14.9
Total	$	242,976,043		100.0	%	$	240,669,165		100.0	%	$	238,661,612		100.0	%

Weighted average LTV		93	%				93	%				93	%

Gross RIF by LTV	September 30, 2024					June 30, 2024					September 30, 2023
($ in thousands)
85.00% and below	$	1,845,584		2.8	%	$	2,010,864		3.1	%	$	2,525,753		4.0	%
85.01% to 90.00%		15,120,025		22.8			15,238,201		23.3			15,566,095		24.5
90.01% to 95.00%		37,149,222		56.1			36,405,573		55.8			34,848,762		54.8
95.01% and above		12,123,161		18.3			11,614,426		17.8			10,664,447		16.7
Total	$	66,237,992		100.0	%	$	65,269,064		100.0	%	$	63,605,057		100.0	%

Portfolio by Loan Amortization Period
IIF by Loan Amortization Period	September 30, 2024					June 30, 2024					September 30, 2023
($ in thousands)
FRM 30 years and higher	$	237,628,900		97.8	%	$	235,138,420		97.7	%	$	232,186,999		97.3	%
FRM 20-25 years		1,199,947		0.5			1,322,021		0.5			1,910,610		0.8
FRM 15 years		1,191,749		0.5			1,276,780		0.5			1,719,467		0.7
ARM 5 years and higher		2,955,447		1.2			2,931,944		1.3			2,844,536		1.2
Total	$	242,976,043		100.0	%	$	240,669,165		100.0	%	$	238,661,612		100.0	%

													Exhibit G

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

	2024									2023
($ in thousands)	September 30			June 30			March 31			December 31			September 30
GSE and other risk share (1):
Risk in Force	$	2,254,726		$	2,304,885		$	2,307,267		$	2,244,944		$	2,247,393
Reserve for losses and LAE	$	37		$	33		$	32		$	29		$	54

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

(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
September 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	$	1,010,190	1.7	%	5,566	4.28	%	66.0	%	49.5	%	1.1	%	10.1	%	49.3	%	2.4	%	248	4.46	%
2015		26,193,656		870,740	3.3		5,028	4.29		76.8		60.9		5.7		18.1		40.0		2.2		235	4.67
2016		34,949,319		2,357,912	6.7		14,050	3.93		86.4		78.0		13.7		16.4		41.3		2.1		450	3.20
2017		43,858,322		3,784,941	8.6		23,293	4.30		90.8		80.4		23.8		21.4		36.4		3.1		1,037	4.45
2018		47,508,525		4,857,991	10.2		27,818	4.80		95.1		74.0		27.1		21.9		32.3		4.2		1,314	4.72
2019		63,569,183		10,717,480	16.9		52,219	4.24		89.1		71.7		25.7		18.9		35.1		3.7		1,687	3.23
2020		107,944,065		37,929,239	35.1		150,176	3.20		72.1		62.5		14.6		10.8		45.5		2.8		2,452	1.63
2021		84,218,250		53,029,350	63.0		177,048	3.10		89.0		66.1		16.6		13.8		40.4		6.1		3,420	1.93
2022		63,061,262		53,154,263	84.3		153,151	5.09		98.1		66.0		11.4		12.6		39.6		17.4		3,091	2.02
2023		47,666,852		43,012,414	90.2		121,053	6.64		98.8		72.8		18.6		11.0		38.7		18.1		1,732	1.43
2024 (through September 30)		33,340,364		32,251,523	96.7		86,105	6.84		97.4		73.8		20.0		12.4		42.4		10.1		240	0.28
Total	$	612,978,649	$	242,976,043	39.6		815,507	4.79		91.2		68.4		16.6		12.9		40.6		4.6		15,906	1.95

(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
September 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	$	25,750,186	$	6,963,249	$	557,911	$	220,532	$	—	$	278,956	$	277,985	$	2,091	$	6,564		$	160,822
Radnor Re 2021-2	Apr. 2021 - Sep. 2021		31,287,234		8,616,211		439,407		286,439		—		279,415		277,195		3,715		10,952			215,335
Radnor Re 2022-1	Oct. 2021 - Jul. 2022		28,815,017		7,856,567		237,868		191,938		—		303,761		301,278		3,825		11,478			176,583
Radnor Re 2023-1	Aug. 2022 - Jun. 2023		28,989,426		7,941,539		281,462		281,462		—		281,463		281,089		3,705		10,657			266,826
Radnor Re 2024-1	Jul. 2023 - Jul. 2024		30,359,933		8,387,056		363,366		363,366		—		256,495		256,495		472		472			363,366
Total		$	145,201,796	$	39,764,622	$	1,880,014	$	1,343,737	$	—	$	1,400,090	$	1,394,042	$	13,808	$	40,123	(5)	$	1,182,932


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	$	4,811,623	$	1,266,631	$	118,650	$	76,144	$	—	$	253,643	$	244,294	$	641	$	1,868	$	—
XOL 2020-1	Jan. 2019 - Aug. 2019		6,026,073		1,591,126		55,102		30,592		—		215,605		212,208		263		809		—
XOL 2022-1	Oct. 2021 - Dec. 2022		65,149,106		17,727,315		141,992		141,992		—		507,114		500,886		1,611		4,797		138,001
XOL 2023-1	Jan. 2023 - Dec. 2023		38,402,550		10,637,649		36,627		36,627		—		366,270		366,141		439		1,306		35,232
XOL 2024-1	Jan. 2024 - Dec. 2024		32,177,995		8,864,366		46,537		46,537		—		265,931		265,931		528		528		44,765
Total		$	146,567,347	$	40,087,087	$	398,908	$	331,892	$	—	$	1,608,563	$	1,589,460	$	3,482	$	9,308	$	217,998

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	)	$	42,414,942	$	11,536,848	$	9,585,777	$	2,572,717	$	645	$	(146	)	$	2,719	$	7,364	$	4,646	$	12,450	$	141,312
Jan. 2022 - Dec. 2022	20	%		53,084,698		14,433,907		10,616,940		2,886,781		2,261		3,516			1,850		5,634		5,776		14,221		212,195
Jan. 2023 - Dec. 2023	17.5	%		38,282,838		10,608,139		6,699,497		1,856,424		2,031		4,492			1,330		4,045		4,825		12,987		143,807
Jan. 2024 - Dec. 2024	15	%		32,205,363		8,872,008		4,830,804		1,330,801		557		717			793		1,302		2,263		3,515		94,807
Total			$	165,987,841	$	45,450,902	$	31,733,018	$	8,646,723	$	5,494	$	8,579		$	6,692	$	18,345	$	17,510	$	43,173	$	592,121

(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 ($11) and ($80) of benefit in ceded premium on retired ILNs for the three and nine months ended September 30, 2024, respectively.

					Exhibit J

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


IIF by State
	September 30, 2024		June 30, 2024		September 30, 2023
CA	12.5	%	12.7	%	13.0	%
FL	11.8		11.6		11.0
TX	10.9		10.8		10.5
CO	4.1		4.1		4.1
AZ	3.8		3.8		3.7
GA	3.7		3.6		3.4
WA	3.4		3.4		3.4
NC	3.0		3.0		2.8
OH	2.6		2.6		2.6
IL	2.6		2.7		2.8
All Others	41.6		41.7		42.7
Total	100.0	%	100.0	%	100.0	%



Gross RIF by State
	September 30, 2024		June 30, 2024		September 30, 2023
CA	12.5	%	12.6	%	12.9	%
FL	12.0		11.8		11.3
TX	11.2		11.1		10.8
CO	4.0		4.1		4.0
AZ	3.9		3.8		3.8
GA	3.8		3.7		3.5
WA	3.4		3.4		3.4
NC	3.0		3.0		2.9
OH	2.6		2.5		2.6
IL	2.5		2.6		2.8
All Others	41.1		41.4		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
	September 30			June 30			March 31			December 31			September 30
Beginning default inventory		13,954			13,992			14,819			13,391			12,480
Plus: new defaults (A)		9,984			8,119			8,260			9,007			7,953
Less: cures		(7,819	)		(7,956	)		(8,951	)		(7,418	)		(6,902	)
Less: claims paid		(182	)		(183	)		(123	)		(148	)		(129	)
Less: rescissions and denials, net		(31	)		(18	)		(13	)		(13	)		(11	)
Ending default inventory		15,906			13,954			13,992			14,819			13,391

(A) New defaults remaining as of September 30, 2024		7,189			3,198			1,665			1,309			806
Cure rate (1)		28	%		61	%		80	%		85	%		90	%

Total amount paid for claims (in thousands)	$	5,749		$	5,566		$	3,605		$	3,411		$	2,956
Average amount paid per claim (in thousands)	$	32		$	30		$	29		$	22		$	23
Severity		58	%		60	%		65	%		62	%		66	%

Rollforward of Reserve for Losses and LAE
	Three Months Ended
	2024									2023
($ in thousands)	September 30			June 30			March 31			December 31			September 30
Reserve for losses and LAE at beginning of period	$	246,107		$	253,565		$	245,402		$	226,617		$	216,888
Less: Reinsurance recoverables		26,022			26,570			24,005			20,656			17,958
Net reserve for losses and LAE at beginning of period		220,085			226,995			221,397			205,961			198,930
Add provision for losses and LAE occurring in:
Current period		51,649			30,653			39,396			38,922			35,609
Prior years		(21,836	)		(31,880	)		(30,062	)		(19,912	)		(25,533	)
Incurred losses and LAE during the period		29,813			(1,227	)		9,334			19,010			10,076
Deduct payments for losses and LAE occurring in:
Current period		637			478			1			330			156
Prior years		5,202			5,205			3,735			3,244			2,889
Loss and LAE payments during the period		5,839			5,683			3,736			3,574			3,045
Net reserve for losses and LAE at end of period		244,059			220,085			226,995			221,397			205,961
Plus: Reinsurance recoverables		30,867			26,022			26,570			24,005			20,656
Reserve for losses and LAE at end of period	$	274,926		$	246,107		$	253,565		$	245,402		$	226,617

(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

	September 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	8,293		52	%	$	53,849	21	%	$	627,505	9	%
Four to eleven payments	5,498		35			104,223	41			437,515	24
Twelve or more payments	1,980		12			86,821	35			144,396	60
Pending claims	135		1			8,620	3			9,692	89
Total case reserves	15,906		100	%		253,513	100	%	$	1,219,108	21	%
IBNR						19,013
LAE						2,400
Total reserves for losses and LAE					$	274,926

Average reserve per default:
Case					$	15.9
Total					$	17.3

Default Rate	1.95	%


	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	%


	September 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	6,383		48	%	$	38,412	18	%	$	448,039	9	%
Four to eleven payments	4,877		36			87,025	42			369,711	24
Twelve or more payments	1,989		15			77,369	37			126,317	61
Pending claims	142		1			6,076	3			6,924	88
Total case reserves	13,391		100	%		208,882	100	%	$	950,991	22	%
IBNR						15,666
LAE						2,069
Total reserves for losses and LAE					$	226,617

Average reserve per default:
Case					$	15.6
Total					$	16.9

Default Rate	1.62	%

								Exhibit M

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

Investments Available for Sale by Asset Class
Asset Class	September 30, 2024					December 31, 2023
($ in thousands)	Fair Value			Percent		Fair Value		Percent
U.S. Treasury securities	$	709,807		11.9	%	$	996,382	18.9	%
U.S. agency securities		—		—			7,195	0.1
U.S. agency mortgage-backed securities		1,051,308		17.7			821,346	15.6
Municipal debt securities		577,647		9.8			547,258	10.5
Non-U.S. government securities		72,971		1.2			67,447	1.3
Corporate debt securities		1,704,388		28.6			1,297,055	24.7
Residential and commercial mortgage securities		503,980		8.5			517,940	9.8
Asset-backed securities		548,076		9.2			564,995	10.7
Money market funds		782,322		13.1			444,121	8.4
Total investments available for sale	$	5,950,499		100.0	%	$	5,263,739	100.0	%

Investments Available for Sale by Credit Rating
Rating (1)	September 30, 2024					December 31, 2023
($ in thousands)	Fair Value			Percent		Fair Value		Percent
Aaa	$	2,541,407		49.2	%	$	2,561,363	53.2	%
Aa1		103,522		2.0			104,474	2.2
Aa2		286,304		5.5			291,501	6.0
Aa3		247,669		4.7			208,882	4.3
A1		510,486		9.9			377,188	7.8
A2		391,018		7.6			329,423	6.8
A3		424,218		8.2			253,081	5.3
Baa1		227,741		4.4			220,901	4.6
Baa2		200,539		3.9			226,449	4.7
Baa3		158,288		3.1			166,121	3.4
Below Baa3		76,985		1.5			80,235	1.7
Total (2)	$	5,168,177		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 $782,322 and $444,121 of money market funds at September 30, 2024 and December 31, 2023, respectively.

Investments Available for Sale by Duration and Book Yield
Effective Duration	September 30, 2024					December 31, 2023
($ in thousands)	Fair Value			Percent		Fair Value		Percent
< 1 Year	$	1,829,657		30.7	%	$	1,892,074	35.9	%
1 to < 2 Years		501,569		8.4			371,583	7.1
2 to < 3 Years		506,047		8.5			538,775	10.2
3 to < 4 Years		499,816		8.4			402,668	7.6
4 to < 5 Years		417,500		7.0			376,722	7.2
5 or more Years		2,195,910		37.0			1,681,917	32.0
Total investments available for sale	$	5,950,499		100.0	%	$	5,263,739	100.0	%

Pre-tax investment income yield:
Three months ended		3.81	%
Nine months ended September 30, 2024		3.77	%

Holding company net cash and investments available for sale:
($ in thousands)
As of September 30, 2024	$	991,151
As of December 31, 2023	$	693,507

													Exhibit N

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

	2024									2023
	September 30			June 30			March 31			December 31			September 30
($ in thousands)
U.S. Mortgage Insurance Subsidiaries:
Combined statutory capital (1)	$	3,584,580		$	3,530,462		$	3,453,553		$	3,376,117		$	3,309,522

Combined net risk in force (2)	$	34,893,957		$	34,812,227		$	34,463,082		$	34,549,500		$	34,203,678

Risk-to-capital ratios: (3)
Essent Guaranty, Inc.	10.0:1			10.2:1			10.3:1			10.6:1			10.7:1
Essent Guaranty of PA, Inc.	0.3:1			0.3:1			0.4:1			0.4:1			0.5:1
Combined (4)	9.7:1			9.9:1			10.0:1			10.2:1			10.3:1

Essent Guaranty, Inc. PMIERs Data (5):
Available Assets	$	3,598,725		$	3,513,609		$	3,464,119		$	3,379,936		$	3,318,179
Minimum Required Assets		1,903,473			2,052,135			1,999,928			1,985,545			1,910,659
PMIERs excess Available Assets	$	1,695,252		$	1,461,474		$	1,464,191		$	1,394,391		$	1,407,520
PMIERs sufficiency ratio (6)		189	%		171	%		173	%		170	%		174	%

Essent Reinsurance Ltd.:
Stockholder's equity (GAAP basis)	$	1,826,901		$	1,793,777		$	1,793,005		$	1,758,665		$	1,684,122

Net risk in force (2)	$	23,003,846		$	22,770,165		$	22,271,316		$	22,043,926		$	21,739,419


(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
	September 30			June 30			March 31			December 31			September 30
Loss Ratio (1)		12.2	%		(0.1	)%		4.0	%		7.9	%		4.4	%
Expense Ratio (2)		26.5	%		26.1	%		27.1	%		27.0	%		27.3	%
Combined Ratio		38.7	%		26.0	%		31.1	%		34.9	%		31.7	%

Underwriting Margin (3)		61.3	%		74.0	%		68.9	%		65.1	%		68.3	%

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 nine months ended September 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 nine months ended September 30, 2024 in accordance with Regulation G:

	Three Months Ended September 30, 2024									Nine Months Ended September 30, 2024
	Consolidated			Title			Excluding Title			Consolidated			Title			Excluding Title
($ in thousands)
Revenues:
Net premiums earned	$	248,936		$	17,687		$	231,249		$	746,417		$	49,604		$	696,813
Net investment income		57,340			809			56,531			165,511			2,365			163,146
Realized investment gains (losses), net		68			—			68			(2,236	)		—			(2,236	)
Income from other invested assets		2,820			—			2,820			486			—			486
Settlement services (4)		3,237			3,237			—			6,074			6,074			—
Other income		4,177			473			3,704			11,625			1,354			10,271
Total revenues		316,578			22,206			294,372			927,877			59,397			868,480

Losses and expenses:
Provision for losses and LAE		30,666			850			29,816			40,245			2,317			37,928
Other underwriting and operating expenses (5)		57,259			14,845			42,414			170,595			39,564			131,031
Premiums retained by agents		9,622			9,622			—			29,328			29,328			—
Interest expense		11,457			—			11,457			27,168			—			27,168
Total losses and expenses		109,004			25,317			83,687			267,336			71,209			196,127

Loss ratio (1)		12.2	%		4.1	%		12.9	%		5.3	%		4.2	%		5.4	%
Expense ratio (2)		26.5	%		116.9	%		18.3	%		26.6	%		123.7	%		18.8	%
Combined ratio		38.7	%		121.0	%		31.2	%		31.9	%		127.9	%		24.2	%

Underwriting Margin (3)		61.3	%		(21.0	%)		68.8	%		68.1	%		(27.9	%)		75.8	%

(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/20241101625309/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

Please Enable Cookies

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

Contacts