Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Essent Group Ltd. Announces Second Quarter 2023 Results and Declares Quarterly Dividend By: Essent Group Ltd. via Business Wire August 04, 2023 at 06:30 AM EDT Essent Group Ltd. (NYSE: ESNT) today reported net income for the quarter ended June 30, 2023 of $172.2 million or $1.61 per diluted share, compared to $231.8 million or $2.16 per diluted share for the quarter ended June 30, 2022. Essent also announced today that its Board of Directors has declared a quarterly cash dividend of $0.25 per common share. The dividend is payable on September 11, 2023, to shareholders of record on September 1, 2023. “We are pleased with our second quarter 2023 financial results, which reflect the high quality of our portfolio and the resilience in housing and employment,” said Mark A. Casale, Chairman and Chief Executive Officer. “Our strong operational performance continues to demonstrate the earnings power of our business and provide us with attractive levels of excess capital, which we can then deploy in the best long-term interest of our shareholders.” Financial Highlights: New insurance written for the second quarter of 2023 was $13.5 billion, compared to $12.9 billion in the first quarter of 2023 and $20.1 billion in the second quarter of 2022. Insurance in force as of June 30, 2023 was $235.6 billion, compared to $231.5 billion as of March 31, 2023 and $215.9 billion as of June 30, 2022. The combined ratio for the second quarter of 2023 was 20.4%, compared to 22.7% in the first quarter of 2023 and (16.2)% in the second quarter of 2022. During the quarter, Essent successfully executed a consent and tender process on $637 million of outstanding notes from two seasoned ILN deals that provided no regulatory or economic capital credit. On July 1, 2023, Essent Group Ltd. completed its previously announced acquisition of Agents National Title Holding Company and Boston National Holdings LLC for $92.6 million. On July 27, 2023, Essent priced its 9th insurance-link note transaction, Radnor Re 2023-1, which provides $281.5 million of collateralized reinsurance coverage for NIW from August 2022 through June 2023. 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; lenders or investors seeking alternatives to private mortgage insurance; deteriorating economic conditions (including inflation, rising interest rates and other adverse economic trends); the impact of COVID-19 and related economic conditions; an increase in the number of loans insured through Federal government mortgage insurance programs, including those offered by the Federal Housing Administration; decline in new insurance written and franchise value due to loss of a significant customer; decline in the volume of low down payment mortgage originations; the definition of "Qualified Mortgage" reducing the size of the mortgage origination market or creating incentives to use government mortgage insurance programs; the definition of "Qualified Residential Mortgage" reducing the number of low down payment loans or lenders and investors seeking alternatives to private mortgage insurance; the implementation of the Basel III Capital Accord discouraging the use of private mortgage insurance; a decrease in the length of time that insurance policies are in force; uncertainty of loss reserve estimates; our non-U.S. operations becoming subject to U.S. Federal income taxation; becoming considered a passive foreign investment company for U.S. Federal income tax purposes; 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, 2022 filed with the Securities and Exchange Commission on February 17, 2023, 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”) which serves the housing finance industry by offering private mortgage insurance, reinsurance, risk management products and title insurance and settlement services to mortgage lenders, borrowers, and investors to support homeownership. Additional information regarding Essent may be found at www.essentgroup.com and www.essent.us. Source: Essent Group Ltd. Essent Group Ltd. and Subsidiaries Financial Results and Supplemental Information (Unaudited) Quarter Ended June 30, 2023 Exhibit A Condensed Consolidated Statements of Comprehensive Income (Unaudited) Exhibit B Condensed Consolidated Balance Sheets (Unaudited) Exhibit C Historical Quarterly Data Exhibit D New Insurance Written Exhibit E Insurance in Force and Risk in Force Exhibit F Other Risk in Force Exhibit G Portfolio Vintage Data Exhibit H Reinsurance Vintage Data Exhibit I Portfolio Geographic Data Exhibit J Rollforward of Defaults and Reserve for Losses and LAE Exhibit K Detail of Reserves by Default Delinquency Exhibit L Investments Available for Sale Exhibit M Insurance Company Capital 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) 2023 2022 2023 2022 Revenues: Direct premiums written $ 249,167 $ 232,660 $ 488,658 $ 452,914 Ceded premiums (39,546 ) (22,318 ) (73,137 ) (42,841 ) Net premiums written 209,621 210,342 415,521 410,073 Decrease in unearned premiums 3,608 1,669 8,966 17,268 Net premiums earned 213,229 212,011 424,487 427,341 Net investment income 45,250 29,339 88,486 54,019 Realized investment losses, net (1,589 ) (471 ) (2,077 ) (7,823 ) (Loss) income from other invested assets (4,852 ) 1,953 (7,554 ) 26,658 Other income 8,090 1,577 13,032 8,825 Total revenues 260,128 244,409 516,374 509,020 Losses and expenses: Provision (benefit) for losses and LAE 1,260 (76,199 ) 1,080 (183,057 ) Other underwriting and operating expenses 42,174 41,898 90,369 82,694 Interest expense 7,394 2,887 14,330 5,113 Total losses and expenses 50,828 (31,414 ) 105,779 (95,250 ) Income before income taxes 209,300 275,823 410,595 604,270 Income tax expense 37,067 44,054 67,535 98,334 Net income $ 172,233 $ 231,769 $ 343,060 $ 505,936 Earnings per share: Basic $ 1.62 $ 2.17 $ 3.22 $ 4.70 Diluted 1.61 2.16 3.20 4.69 Weighted average shares outstanding: Basic 106,249 106,921 106,594 107,540 Diluted 107,093 107,283 107,338 107,933 Net income $ 172,233 $ 231,769 $ 343,060 $ 505,936 Other comprehensive income (loss): Change in unrealized appreciation (depreciation) of investments (36,098 ) (134,268 ) 22,655 (337,274 ) Total other comprehensive income (loss) (36,098 ) (134,268 ) 22,655 (337,274 ) Comprehensive income $ 136,135 $ 97,501 $ 365,715 $ 168,662 Loss ratio 0.6 % (35.9 %) 0.3 % (42.8 %) Expense ratio 19.8 19.8 21.3 19.4 Combined ratio 20.4 % (16.2 %) 21.5 % (23.5 %) Exhibit B Essent Group Ltd. and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited) June 30, December 31, (In thousands, except per share amounts) 2023 2022 Assets Investments Fixed maturities available for sale, at fair value $ 4,438,554 $ 4,489,598 Short-term investments available for sale, at fair value 583,540 252,027 Total investments available for sale 5,022,094 4,741,625 Other invested assets 266,559 257,941 Total investments 5,288,653 4,999,566 Cash 68,101 81,240 Accrued investment income 36,099 33,162 Accounts receivable 62,692 57,399 Deferred policy acquisition costs 9,460 9,910 Property and equipment 31,324 19,571 Prepaid federal income tax 446,460 418,460 Other assets 40,526 104,489 Total assets $ 5,983,315 $ 5,723,797 Liabilities and Stockholders' Equity Liabilities Reserve for losses and LAE $ 216,943 $ 216,464 Unearned premium reserve 153,921 162,887 Net deferred tax liability 328,340 356,810 Credit facility borrowings, net of deferred costs 421,392 420,864 Other accrued liabilities 129,367 104,463 Total liabilities 1,249,963 1,261,488 Commitments and contingencies Stockholders' Equity Common shares, $0.015 par value: Authorized - 233,333; issued and outstanding - 106,988 shares in 2023 and 107,683 shares in 2022 1,605 1,615 Additional paid-in capital 1,309,834 1,350,377 Accumulated other comprehensive loss (360,135 ) (382,790 ) Retained earnings 3,782,048 3,493,107 Total stockholders' equity 4,733,352 4,462,309 Total liabilities and stockholders' equity $ 5,983,315 $ 5,723,797 Return on average equity (1) 14.9 % 19.1 % (1) The 2023 return on average equity is calculated by dividing annualized year-to-date 2023 net income by average equity. The 2022 return on average equity is calculated by dividing full year 2022 net income by average equity. Exhibit C Essent Group Ltd. and Subsidiaries Supplemental Information Historical Quarterly Data 2023 2022 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 $ 195,502 $ 196,565 $ 192,670 $ 194,272 $ 198,891 GSE and other risk share 17,727 14,693 14,582 13,662 13,120 Net premiums earned 213,229 211,258 207,252 207,934 212,011 Net investment income 45,250 43,236 37,796 32,594 29,339 Realized investment (losses) gains, net (1,589 ) (488 ) (5,524 ) 175 (471 ) (Loss) income from other invested assets (4,852 ) (2,702 ) (7,599 ) 9,617 1,953 Other income (loss) (1) 8,090 4,942 (1,888 ) 11,447 1,577 Total revenues 260,128 256,246 230,037 261,767 244,409 Losses and expenses: Provision (benefit) for losses and LAE 1,260 (180 ) 4,101 4,252 (76,199 ) Other underwriting and operating expenses 42,174 48,195 46,895 42,144 41,898 Interest expense 7,394 6,936 6,045 4,450 2,887 Total losses and expenses 50,828 54,951 57,041 50,846 (31,414 ) Income before income taxes 209,300 201,295 172,996 210,921 275,823 Income tax expense (2) 37,067 30,468 25,630 32,870 44,054 Net income $ 172,233 $ 170,827 $ 147,366 $ 178,051 $ 231,769 Earnings per share: Basic $ 1.62 $ 1.60 $ 1.38 $ 1.67 $ 2.17 Diluted 1.61 1.59 1.37 1.66 2.16 Weighted average shares outstanding: Basic 106,249 106,943 106,881 106,870 106,921 Diluted 107,093 107,585 107,419 107,337 107,283 Book value per share $ 44.24 $ 43.18 $ 41.44 $ 39.87 $ 39.67 Return on average equity (annualized) 14.7 % 15.0 % 13.5 % 16.6 % 21.8 % Other Data: Loss ratio (3) 0.6 % (0.1 )% 2.0 % 2.0 % (35.9 )% Expense ratio (4) 19.8 22.8 22.6 20.3 19.8 Combined ratio 20.4 % 22.7 % 24.6 % 22.3 % (16.2 )% 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) 6.87 % 6.52 % 6.02 % 4.39 % 2.92 % Debt-to-capital 8.24 % 8.38 % 8.70 % 9.01 % 9.05 % (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, 2023, March 31, 2023, December 31, 2022, September 30, 2022, and June 30, 2022 was $2,726, ($368), ($6,515), $5,177, and ($5,549), respectively. (2) Income tax expense for the quarters ended June 30, 2023, March 31, 2023, December 31, 2022, September 30, 2022, and June 30, 2022 includes $(888), ($368), ($4,122), $2,925, and ($299) respectively, of discrete tax (benefit) expense associated with realized and unrealized gains and losses. Income tax expense for the quarter ended June 30, 2023 also includes $5,295 of net discrete tax expense associated with prior year tax returns. (3) Loss ratio is calculated by dividing the provision for losses and LAE by net premiums earned. (4) Expense ratio is calculated by dividing other underwriting and operating expenses by net premiums earned. Exhibit C, continued Essent Group Ltd. and Subsidiaries Supplemental Information Historical Quarterly Data 2023 2022 Other Data, continued: June 30 March 31 December 31 September 30 June 30 ($ in thousands) U.S. Mortgage Insurance Portfolio Flow: New insurance written $ 13,498,080 $ 12,893,789 $ 13,011,432 $ 17,112,017 $ 20,096,135 New risk written 3,726,513 3,548,015 3,522,726 4,570,699 5,442,115 Bulk: New insurance written $ — $ — $ — $ — $ 196 New risk written — — — — 29 Total: New insurance written $ 13,498,080 $ 12,893,789 $ 13,011,432 $ 17,112,017 $ 20,096,331 New risk written $ 3,726,513 $ 3,548,015 $ 3,522,726 $ 4,570,669 $ 5,442,144 Average insurance in force $ 233,484,941 $ 228,885,174 $ 224,840,675 $ 219,280,350 $ 210,896,297 Insurance in force (end of period) $ 235,649,884 $ 231,537,417 $ 227,062,055 $ 222,542,569 $ 215,896,531 Gross risk in force (end of period) (5) $ 62,403,400 $ 60,879,979 $ 59,276,489 $ 57,743,091 $ 55,678,063 Risk in force (end of period) $ 53,290,643 $ 51,469,312 $ 49,903,626 $ 48,690,571 $ 47,289,910 Policies in force 821,690 815,751 808,596 800,745 789,652 Weighted average coverage (6) 26.5 % 26.3 % 26.1 % 25.9 % 25.8 % Annual persistency 85.8 % 84.4 % 82.1 % 77.9 % 73.4 % Loans in default (count) 12,480 12,773 13,433 12,435 12,707 Percentage of loans in default 1.52 % 1.57 % 1.66 % 1.55 % 1.61 % U.S. Mortgage Insurance Portfolio premium rate: Base average premium rate (7) 0.40 % 0.40 % 0.40 % 0.40 % 0.41 % Single premium cancellations (8) — % — % — % 0.01 % 0.01 % Gross average premium rate 0.40 % 0.40 % 0.40 % 0.41 % 0.42 % Ceded premiums (0.07 %) (0.06 %) (0.06 %) (0.06 %) (0.04 %) Net average premium rate 0.33 % 0.34 % 0.34 % 0.35 % 0.38 % (5) Gross risk in force includes risk ceded under third-party reinsurance. (6) Weighted average coverage is calculated by dividing end of period gross risk in force by end of period insurance in force. (7) Base average premium rate is calculated by dividing annualized base premiums earned by average insurance in force for the period. (8) 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 D Essent Group Ltd. and Subsidiaries Supplemental Information New Insurance Written: Flow NIW by Credit Score Three Months Ended Six Months Ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 ($ in thousands) >=760 $ 5,413,790 40.1 % $ 8,555,331 42.6 % $ 10,260,848 38.9 % $ 13,965,985 42.4 % 740-759 2,428,773 18.0 3,421,392 17.0 4,826,755 18.3 5,534,624 16.8 720-739 2,194,400 16.3 3,105,275 15.4 4,399,244 16.7 5,096,593 15.5 700-719 2,022,302 15.0 2,554,997 12.7 4,025,194 15.2 4,175,470 12.7 680-699 1,032,061 7.6 1,785,196 8.9 2,132,876 8.1 2,932,962 8.9 <=679 406,754 3.0 673,944 3.4 746,952 2.8 1,231,983 3.7 Total $ 13,498,080 100.0 % $ 20,096,135 100.0 % $ 26,391,869 100.0 % $ 32,937,617 100.0 % Weighted average credit score 746 747 746 747 NIW by LTV Three Months Ended Six Months Ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 ($ in thousands) 85.00% and below $ 988,752 7.3 % $ 1,675,255 8.3 % $ 1,951,761 7.4 % $ 2,937,293 8.9 % 85.01% to 90.00% 2,819,310 20.9 5,487,721 27.3 5,505,138 20.9 8,903,659 27.0 90.01% to 95.00% 7,339,533 54.4 10,874,315 54.1 14,769,646 55.9 17,290,570 52.5 95.01% and above 2,350,485 17.4 2,058,844 10.3 4,165,324 15.8 3,806,095 11.6 Total $ 13,498,080 100.0 % $ 20,096,135 100.0 % $ 26,391,869 100.0 % $ 32,937,617 100.0 % Weighted average LTV 93 % 93 % 93 % 93 % NIW by Product Three Months Ended Six Months Ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Single Premium policies 4.3 % 6.5 % 4.1 % 4.7 % Monthly Premium policies 95.7 93.5 95.9 95.3 100.0 % 100.0 % 100.0 % 100.0 % NIW by Purchase vs. Refinance Three Months Ended Six Months Ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Purchase 98.8 % 98.0 % 98.7 % 96.5 % Refinance 1.2 2.0 1.3 3.5 100.0 % 100.0 % 100.0 % 100.0 % Exhibit E Essent Group Ltd. and Subsidiaries Supplemental Information Insurance in Force and Risk in Force Portfolio by Credit Score IIF by FICO score June 30, 2023 March 31, 2023 June 30, 2022 ($ in thousands) >=760 $ 95,925,520 40.8 % $ 94,560,292 40.8 % $ 89,790,212 41.6 % 740-759 40,733,799 17.3 39,870,193 17.2 36,606,394 17.0 720-739 36,791,104 15.6 35,950,319 15.5 32,637,422 15.1 700-719 30,970,132 13.1 30,103,007 13.0 27,258,759 12.6 680-699 19,667,866 8.3 19,338,187 8.4 17,697,662 8.2 <=679 11,561,463 4.9 11,715,419 5.1 11,906,082 5.5 Total $ 235,649,884 100.0 % $ 231,537,417 100.0 % $ 215,896,531 100.0 % Weighted average credit score 746 746 746 Gross RIF by FICO score June 30, 2023 March 31, 2023 June 30, 2022 ($ in thousands) >=760 $ 25,138,762 40.3 % $ 24,613,214 40.4 % $ 22,956,271 41.2 % 740-759 10,922,780 17.5 10,612,582 17.4 9,540,921 17.1 720-739 9,896,425 15.9 9,602,368 15.8 8,545,969 15.3 700-719 8,319,353 13.3 8,017,430 13.2 7,107,888 12.8 680-699 5,248,349 8.4 5,126,581 8.4 4,601,675 8.3 <=679 2,877,731 4.6 2,907,804 4.8 2,925,339 5.3 Total $ 62,403,400 100.0 % $ 60,879,979 100.0 % $ 55,678,063 100.0 % Portfolio by LTV IIF by LTV June 30, 2023 March 31, 2023 June 30, 2022 ($ in thousands) 85.00% and below $ 22,427,649 9.5 % $ 23,502,232 10.2 % $ 25,510,400 11.8 % 85.01% to 90.00% 63,562,258 27.0 63,478,244 27.3 61,304,806 28.4 90.01% to 95.00% 115,768,826 49.1 112,184,833 48.5 98,938,435 45.8 95.01% and above 33,891,151 14.4 32,372,108 14.0 30,142,890 14.0 Total $ 235,649,884 100.0 % $ 231,537,417 100.0 % $ 215,896,531 100.0 % Weighted average LTV 93 % 92 % 92 % Gross RIF by LTV June 30, 2023 March 31, 2023 June 30, 2022 ($ in thousands) 85.00% and below $ 2,667,981 4.3 % $ 2,793,895 4.6 % $ 3,012,030 5.4 % 85.01% to 90.00% 15,583,198 25.0 15,529,427 25.5 14,868,579 26.7 90.01% to 95.00% 34,026,320 54.5 32,929,489 54.1 28,921,722 52.0 95.01% and above 10,125,901 16.2 9,627,168 15.8 8,875,732 15.9 Total $ 62,403,400 100.0 % $ 60,879,979 100.0 % $ 55,678,063 100.0 % Portfolio by Loan Amortization Period IIF by Loan Amortization Period June 30, 2023 March 31, 2023 June 30, 2022 ($ in thousands) FRM 30 years and higher $ 228,745,641 97.1 % $ 224,230,607 96.8 % $ 207,888,842 96.3 % FRM 20-25 years 2,124,690 0.9 2,364,623 1.0 3,114,962 1.4 FRM 15 years 1,953,448 0.8 2,214,448 1.0 3,222,801 1.5 ARM 5 years and higher 2,826,105 1.2 2,727,739 1.2 1,669,926 0.8 Total $ 235,649,884 100.0 % $ 231,537,417 100.0 % $ 215,896,531 100.0 % Exhibit F Essent Group Ltd. and Subsidiaries Supplemental Information Other Risk in Force 2023 2022 ($ in thousands) June 30 March 31 December 31 September 30 June 30 GSE and other risk share (1): Risk in Force $ 2,276,702 $ 2,098,033 $ 2,030,571 $ 2,026,895 $ 1,898,364 Reserve for losses and LAE $ 55 $ 65 $ 74 $ 102 $ 144 Weighted average credit score 749 749 749 748 748 Weighted average LTV 83 % 83 % 83 % 84 % 84 % (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 G Essent Group Ltd. and Subsidiaries Supplemental Information Portfolio Vintage Data June 30, 2023 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 $ 1,807,238 3.0 % 11,385 4.31 % 75.6 % 65.8 % 6.4 % 14.9 % 43.4 % 2.5 % 416 3.65 % 2015 26,193,656 1,649,738 6.3 9,997 4.19 84.7 75.8 4.5 17.4 39.6 2.6 367 3.67 2016 34,949,319 3,476,870 9.9 19,998 3.89 87.9 79.3 11.6 16.2 42.4 2.5 586 2.93 2017 43,858,322 5,316,345 12.1 31,404 4.27 91.3 70.7 20.4 20.4 37.9 3.5 1,134 3.61 2018 47,508,525 6,113,917 12.9 34,026 4.79 94.6 70.5 25.6 21.7 32.7 4.8 1,456 4.28 2019 63,569,183 13,481,766 21.2 63,599 4.22 87.9 67.6 24.3 18.7 35.6 4.9 1,845 2.90 2020 107,944,065 52,266,774 48.4 198,262 3.19 67.3 55.6 12.7 10.8 45.6 3.6 2,359 1.19 2021 84,218,250 66,928,946 79.5 216,319 3.08 85.7 61.9 15.0 13.9 40.5 7.5 2,799 1.29 2022 63,061,262 58,725,613 93.1 165,953 5.07 97.8 65.0 11.1 12.7 39.7 18.7 1,429 0.86 2023 (through June 30) 26,391,869 25,882,677 98.1 70,747 6.34 98.7 71.9 16.0 11.0 38.4 7.8 89 0.13 Total $ 558,363,302 $ 235,649,884 42.2 821,690 4.12 86.5 63.5 14.4 13.3 40.7 4.3 12,480 1.52 (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 H Essent Group Ltd. and Subsidiaries Supplemental Information Reinsurance Vintage Data June 30, 2023 ($ 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 2018-1 Jan. 2017 - Dec. 2017 $ — $ — $ — $ — $ — $ — $ — $ — $ 1,781 $ — Radnor Re 2019-1 Jan. 2018 - Dec. 2018 6,031,462 1,568,566 473,184 21,467 — 253,643 247,780 9,948 13,447 — Radnor Re 2019-2 Jan. 2015 - Dec. 2016 — — — — — — — — 220 — Radnor Re 2020-1 Jan. 2019 - Aug. 2019 7,496,071 1,939,751 495,889 52,691 — 215,605 214,221 3,497 5,871 — Radnor Re 2021-1 Aug. 2020 - Mar. 2021 35,742,003 9,110,919 557,911 374,172 — 278,956 278,827 2,984 6,178 289,810 Radnor Re 2021-2 Apr. 2021 - Sep. 2021 39,179,542 10,503,842 439,407 384,452 — 279,415 279,297 4,121 8,274 331,024 Radnor Re 2022-1 Oct. 2021 - Jul. 2022 32,744,576 8,818,357 237,868 237,868 — 303,761 303,761 4,306 8,521 218,839 Total $ 121,193,654 $ 31,941,435 $ 2,204,259 $ 1,070,650 $ — $ 1,331,380 $ 1,323,886 $ 24,856 $ 44,292 $ 839,673 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 2018-1 Jan. 2017 - Dec. 2017 $ 5,200,346 $ 1,369,342 $ 165,167 $ 65,983 $ — $ 678,283 $ 421,003 $ 309 $ 664 $ — XOL 2019-1 Jan. 2018 - Dec. 2018 6,031,462 1,568,566 118,650 76,144 — 253,643 247,780 (4 ) 621 1,234 — XOL 2020-1 Jan. 2019 - Dec. 2019 7,496,071 1,939,751 55,102 41,162 — 215,605 214,221 (4 ) 311 628 — XOL 2022-1 Oct. 2021 - Dec. 2022 72,971,240 19,674,482 141,992 141,992 — 507,114 507,114 1,615 3,169 138,395 Total $ 91,699,119 $ 24,552,141 $ 480,911 $ 325,281 $ — $ 1,654,645 $ 1,390,118 $ 2,856 $ 5,695 $ 138,395 (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) First layer retentions shown are ILN retention levels as a result of overlapping coverage within the vintage. 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 (5 ) $ 57,938,827 $ 14,951,010 $ 12,929,459 $ 3,298,284 $ (1,015 ) $ (1,744 ) $ 2,785 $ 5,712 $ 4,138 $ 8,824 $ 198,708 Jan. 2022 - Dec. 2023 20 % 58,669,337 15,850,694 11,733,867 3,170,139 2,388 4,881 1,959 3,938 6,110 12,364 227,761 Jan. 2023 - Dec. 2023 17.5 % 25,838,027 7,133,730 4,521,655 1,248,403 304 332 611 776 1,586 1,962 88,320 Total $ 142,446,191 $ 37,935,434 $ 29,184,981 $ 7,716,826 $ 1,677 $ 3,469 $ 5,355 $ 10,426 $ 11,834 $ 23,150 $ 514,789 (5) Reinsurance coverage on 40% of eligible single premium policies and 20% of all other eligible policies. Exhibit I Essent Group Ltd. and Subsidiaries Supplemental Information Portfolio Geographic Data IIF by State June 30, 2023 March 31, 2023 June 30, 2022 CA 13.1 % 13.2 % 13.2 % FL 10.8 10.4 10.0 TX 10.5 10.5 10.2 CO 4.1 4.2 4.2 AZ 3.7 3.6 3.4 WA 3.4 3.4 3.5 GA 3.3 3.2 3.1 IL 2.9 3.0 3.2 VA 2.9 3.0 3.1 NJ 2.9 2.9 3.1 All Others 42.4 42.6 43.0 Total 100.0 % 100.0 % 100.0 % Gross RIF by State June 30, 2023 March 31, 2023 June 30, 2022 CA 13.0 % 13.0 % 13.0 % FL 11.1 10.7 10.3 TX 10.8 10.8 10.6 CO 4.1 4.1 4.1 AZ 3.8 3.7 3.4 WA 3.4 3.4 3.4 GA 3.4 3.3 3.2 IL 2.8 2.9 3.1 VA 2.8 2.9 3.0 NJ 2.8 2.8 2.9 All Others 42.0 42.4 43.0 Total 100.0 % 100.0 % 100.0 % Exhibit J 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 2023 2022 June 30 March 31 December 31 September 30 June 30 Beginning default inventory 12,773 13,433 12,435 12,707 14,923 Plus: new defaults (A) 6,575 7,015 7,505 6,448 5,495 Less: cures (6,761 ) (7,574 ) (6,425 ) (6,642 ) (7,639 ) Less: claims paid (96 ) (94 ) (73 ) (68 ) (65 ) Less: rescissions and denials, net (11 ) (7 ) (9 ) (10 ) (7 ) Ending default inventory 12,480 12,773 13,433 12,435 12,707 (A) New defaults remaining as of June 30, 2023 4,876 2,343 1,797 1,104 559 Cure rate (1) 26 % 67 % 76 % 83 % 90 % Total amount paid for claims (in thousands) $ 1,890 $ 1,959 $ 1,441 $ 1,261 $ 1,137 Average amount paid per claim (in thousands) $ 20 $ 21 $ 20 $ 19 $ 17 Severity 58 % 59 % 46 % 47 % 50 % Rollforward of Reserve for Losses and LAE Three Months Ended 2023 2022 ($ in thousands) June 30 March 31 December 31 September 30 June 30 Reserve for losses and LAE at beginning of period $ 215,957 $ 216,390 $ 212,392 $ 209,829 $ 292,818 Less: Reinsurance recoverables 16,357 14,618 13,244 13,657 19,335 Net reserve for losses and LAE at beginning of period 199,600 201,772 199,148 196,172 273,483 Add provision for losses and LAE occurring in: Current period 31,377 32,693 36,141 20,144 18,720 Prior years (30,107 ) (32,864 ) (32,012 ) (15,850 ) (94,809 ) Incurred losses and LAE during the period 1,270 (171 ) 4,129 4,294 (76,089 ) Deduct payments for losses and LAE occurring in: Current period 31 — 113 30 80 Prior years 1,909 2,001 1,392 1,288 1,142 Loss and LAE payments during the period 1,940 2,001 1,505 1,318 1,222 Net reserve for losses and LAE at end of period 198,930 199,600 201,772 199,148 196,172 Plus: Reinsurance recoverables 17,958 16,357 14,618 13,244 13,657 Reserve for losses and LAE at end of period $ 216,888 $ 215,957 $ 216,390 $ 212,392 $ 209,829 (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 K Essent Group Ltd. and Subsidiaries Supplemental Information Detail of Reserves by Default Delinquency U.S. Mortgage Insurance Portfolio 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 % December 31, 2022 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 6,154 46 % $ 32,242 16 % $ 411,624 8 % Four to eleven payments 4,684 35 65,071 33 317,417 21 Twelve or more payments 2,474 18 98,291 49 147,247 67 Pending claims 121 1 3,815 2 4,860 78 Total case reserves 13,433 100 % 199,419 100 % $ 881,148 23 % IBNR 14,956 LAE 2,015 Total reserves for losses and LAE $ 216,390 Average reserve per default: Case $ 14.8 Total $ 16.1 Default Rate 1.66 % June 30, 2022 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 4,036 32 % $ 18,653 10 % $ 250,303 7 % Four to eleven payments 4,741 37 59,753 31 304,764 20 Twelve or more payments 3,849 30 111,442 57 236,440 47 Pending claims 81 1 3,568 2 3,574 100 Total case reserves 12,707 100 % 193,416 100 % $ 795,081 24 % IBNR 14,506 LAE 1,907 Total reserves for losses and LAE $ 209,829 Average reserve per default: Case $ 15.2 Total $ 16.5 Default Rate 1.61 % Exhibit L Essent Group Ltd. and Subsidiaries Supplemental Information Investments Available for Sale Investments Available for Sale by Asset Class Asset Class June 30, 2023 December 31, 2022 ($ in thousands) Fair Value Percent Fair Value Percent U.S. Treasury securities $ 643,586 12.8 % $ 556,438 11.7 % U.S. agency securities 9,671 0.2 49,058 1.0 U.S. agency mortgage-backed securities 810,108 16.1 783,743 16.5 Municipal debt securities 600,162 12.0 602,690 12.8 Non-U.S. government securities 50,553 1.0 62,399 1.3 Corporate debt securities 1,349,221 26.9 1,414,321 29.8 Residential and commercial mortgage securities 510,350 10.2 511,824 10.8 Asset-backed securities 634,910 12.6 624,561 13.2 Money market funds 413,533 8.2 136,591 2.9 Total investments available for sale $ 5,022,094 100.0 % $ 4,741,625 100.0 % Investments Available for Sale by Credit Rating Rating (1) June 30, 2023 December 31, 2022 ($ in thousands) Fair Value Percent Fair Value Percent Aaa $ 2,251,533 48.9 % $ 2,122,599 46.2 % Aa1 113,007 2.5 111,262 2.4 Aa2 305,630 6.6 325,241 7.1 Aa3 230,676 5.0 232,500 5.0 A1 401,624 8.7 396,095 8.6 A2 313,849 6.8 410,163 8.9 A3 263,496 5.7 268,928 5.8 Baa1 237,699 5.2 236,793 5.1 Baa2 241,926 5.2 221,308 4.8 Baa3 161,797 3.5 187,117 4.1 Below Baa3 87,324 1.9 93,028 2.0 Total (2) $ 4,608,561 100.0 % $ 4,605,034 100.0 % (1) Based on ratings issued by Moody's, if available. S&P or Fitch rating utilized if Moody's not available. (2) Excludes $413,533 and $136,591 of money market funds at June 30, 2023 and December 31, 2022, respectively. Investments Available for Sale by Duration and Book Yield Effective Duration June 30, 2023 December 31, 2022 ($ in thousands) Fair Value Percent Fair Value Percent < 1 Year $ 1,511,281 30.1 % $ 1,245,839 26.3 % 1 to < 2 Years 545,993 10.9 534,038 11.3 2 to < 3 Years 408,377 8.1 511,701 10.8 3 to < 4 Years 529,277 10.5 525,683 11.1 4 to < 5 Years 395,775 7.9 400,540 8.4 5 or more Years 1,631,391 32.5 1,523,824 32.1 Total investments available for sale $ 5,022,094 100.0 % $ 4,741,625 100.0 % Pre-tax investment income yield: Three months ended 3.46 % 3.03 % Six months ended June 30, 2023 3.42 % Holding company net cash and investments available for sale: ($ in thousands) As of June 30, 2023 $ 739,525 As of December 31, 2022 $ 685,178 Exhibit M Essent Group Ltd. and Subsidiaries Supplemental Information Insurance Company Capital 2023 2022 June 30 March 31 December 31 September 30 June 30 ($ in thousands) U.S. Mortgage Insurance Subsidiaries: Combined statutory capital (1) $ 3,243,086 $ 3,207,102 $ 3,178,151 $ 3,128,681 $ 3,062,438 Combined net risk in force (2) $ 34,019,643 $ 33,038,825 $ 32,265,701 $ 31,736,095 $ 31,221,406 Risk-to-capital ratios: (3) Essent Guaranty, Inc. 10.8:1 10.6:1 10.5:1 10.5:1 10.6:1 Essent Guaranty of PA, Inc. 0.5:1 0.5:1 0.6:1 0.6:1 0.6:1 Combined (4) 10.5:1 10.3:1 10.2:1 10.1:1 10.2:1 Essent Guaranty, Inc. PMIERs Data (5): Available Assets $ 3,245,481 $ 3,226,436 $ 3,191,047 $ 3,147,545 $ 3,120,098 Minimum Required Assets 1,991,741 1,917,769 1,832,363 1,759,182 1,869,524 PMIERs excess Available Assets $ 1,253,740 $ 1,308,667 $ 1,358,684 $ 1,388,363 $ 1,250,574 PMIERs sufficiency ratio (6) 163 % 168 % 174 % 179 % 167 % Essent Reinsurance Ltd.: Stockholder's equity (GAAP basis) $ 1,633,763 $ 1,573,013 $ 1,478,772 $ 1,397,287 $ 1,380,067 Net risk in force (2) $ 21,327,762 $ 20,305,111 $ 19,454,046 $ 18,694,500 $ 17,758,801 (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. View source version on businesswire.com: https://www.businesswire.com/news/home/20230804672391/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 Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
Essent Group Ltd. Announces Second Quarter 2023 Results and Declares Quarterly Dividend By: Essent Group Ltd. via Business Wire August 04, 2023 at 06:30 AM EDT Essent Group Ltd. (NYSE: ESNT) today reported net income for the quarter ended June 30, 2023 of $172.2 million or $1.61 per diluted share, compared to $231.8 million or $2.16 per diluted share for the quarter ended June 30, 2022. Essent also announced today that its Board of Directors has declared a quarterly cash dividend of $0.25 per common share. The dividend is payable on September 11, 2023, to shareholders of record on September 1, 2023. “We are pleased with our second quarter 2023 financial results, which reflect the high quality of our portfolio and the resilience in housing and employment,” said Mark A. Casale, Chairman and Chief Executive Officer. “Our strong operational performance continues to demonstrate the earnings power of our business and provide us with attractive levels of excess capital, which we can then deploy in the best long-term interest of our shareholders.” Financial Highlights: New insurance written for the second quarter of 2023 was $13.5 billion, compared to $12.9 billion in the first quarter of 2023 and $20.1 billion in the second quarter of 2022. Insurance in force as of June 30, 2023 was $235.6 billion, compared to $231.5 billion as of March 31, 2023 and $215.9 billion as of June 30, 2022. The combined ratio for the second quarter of 2023 was 20.4%, compared to 22.7% in the first quarter of 2023 and (16.2)% in the second quarter of 2022. During the quarter, Essent successfully executed a consent and tender process on $637 million of outstanding notes from two seasoned ILN deals that provided no regulatory or economic capital credit. On July 1, 2023, Essent Group Ltd. completed its previously announced acquisition of Agents National Title Holding Company and Boston National Holdings LLC for $92.6 million. On July 27, 2023, Essent priced its 9th insurance-link note transaction, Radnor Re 2023-1, which provides $281.5 million of collateralized reinsurance coverage for NIW from August 2022 through June 2023. 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; lenders or investors seeking alternatives to private mortgage insurance; deteriorating economic conditions (including inflation, rising interest rates and other adverse economic trends); the impact of COVID-19 and related economic conditions; an increase in the number of loans insured through Federal government mortgage insurance programs, including those offered by the Federal Housing Administration; decline in new insurance written and franchise value due to loss of a significant customer; decline in the volume of low down payment mortgage originations; the definition of "Qualified Mortgage" reducing the size of the mortgage origination market or creating incentives to use government mortgage insurance programs; the definition of "Qualified Residential Mortgage" reducing the number of low down payment loans or lenders and investors seeking alternatives to private mortgage insurance; the implementation of the Basel III Capital Accord discouraging the use of private mortgage insurance; a decrease in the length of time that insurance policies are in force; uncertainty of loss reserve estimates; our non-U.S. operations becoming subject to U.S. Federal income taxation; becoming considered a passive foreign investment company for U.S. Federal income tax purposes; 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, 2022 filed with the Securities and Exchange Commission on February 17, 2023, 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”) which serves the housing finance industry by offering private mortgage insurance, reinsurance, risk management products and title insurance and settlement services to mortgage lenders, borrowers, and investors to support homeownership. Additional information regarding Essent may be found at www.essentgroup.com and www.essent.us. Source: Essent Group Ltd. Essent Group Ltd. and Subsidiaries Financial Results and Supplemental Information (Unaudited) Quarter Ended June 30, 2023 Exhibit A Condensed Consolidated Statements of Comprehensive Income (Unaudited) Exhibit B Condensed Consolidated Balance Sheets (Unaudited) Exhibit C Historical Quarterly Data Exhibit D New Insurance Written Exhibit E Insurance in Force and Risk in Force Exhibit F Other Risk in Force Exhibit G Portfolio Vintage Data Exhibit H Reinsurance Vintage Data Exhibit I Portfolio Geographic Data Exhibit J Rollforward of Defaults and Reserve for Losses and LAE Exhibit K Detail of Reserves by Default Delinquency Exhibit L Investments Available for Sale Exhibit M Insurance Company Capital 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) 2023 2022 2023 2022 Revenues: Direct premiums written $ 249,167 $ 232,660 $ 488,658 $ 452,914 Ceded premiums (39,546 ) (22,318 ) (73,137 ) (42,841 ) Net premiums written 209,621 210,342 415,521 410,073 Decrease in unearned premiums 3,608 1,669 8,966 17,268 Net premiums earned 213,229 212,011 424,487 427,341 Net investment income 45,250 29,339 88,486 54,019 Realized investment losses, net (1,589 ) (471 ) (2,077 ) (7,823 ) (Loss) income from other invested assets (4,852 ) 1,953 (7,554 ) 26,658 Other income 8,090 1,577 13,032 8,825 Total revenues 260,128 244,409 516,374 509,020 Losses and expenses: Provision (benefit) for losses and LAE 1,260 (76,199 ) 1,080 (183,057 ) Other underwriting and operating expenses 42,174 41,898 90,369 82,694 Interest expense 7,394 2,887 14,330 5,113 Total losses and expenses 50,828 (31,414 ) 105,779 (95,250 ) Income before income taxes 209,300 275,823 410,595 604,270 Income tax expense 37,067 44,054 67,535 98,334 Net income $ 172,233 $ 231,769 $ 343,060 $ 505,936 Earnings per share: Basic $ 1.62 $ 2.17 $ 3.22 $ 4.70 Diluted 1.61 2.16 3.20 4.69 Weighted average shares outstanding: Basic 106,249 106,921 106,594 107,540 Diluted 107,093 107,283 107,338 107,933 Net income $ 172,233 $ 231,769 $ 343,060 $ 505,936 Other comprehensive income (loss): Change in unrealized appreciation (depreciation) of investments (36,098 ) (134,268 ) 22,655 (337,274 ) Total other comprehensive income (loss) (36,098 ) (134,268 ) 22,655 (337,274 ) Comprehensive income $ 136,135 $ 97,501 $ 365,715 $ 168,662 Loss ratio 0.6 % (35.9 %) 0.3 % (42.8 %) Expense ratio 19.8 19.8 21.3 19.4 Combined ratio 20.4 % (16.2 %) 21.5 % (23.5 %) Exhibit B Essent Group Ltd. and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited) June 30, December 31, (In thousands, except per share amounts) 2023 2022 Assets Investments Fixed maturities available for sale, at fair value $ 4,438,554 $ 4,489,598 Short-term investments available for sale, at fair value 583,540 252,027 Total investments available for sale 5,022,094 4,741,625 Other invested assets 266,559 257,941 Total investments 5,288,653 4,999,566 Cash 68,101 81,240 Accrued investment income 36,099 33,162 Accounts receivable 62,692 57,399 Deferred policy acquisition costs 9,460 9,910 Property and equipment 31,324 19,571 Prepaid federal income tax 446,460 418,460 Other assets 40,526 104,489 Total assets $ 5,983,315 $ 5,723,797 Liabilities and Stockholders' Equity Liabilities Reserve for losses and LAE $ 216,943 $ 216,464 Unearned premium reserve 153,921 162,887 Net deferred tax liability 328,340 356,810 Credit facility borrowings, net of deferred costs 421,392 420,864 Other accrued liabilities 129,367 104,463 Total liabilities 1,249,963 1,261,488 Commitments and contingencies Stockholders' Equity Common shares, $0.015 par value: Authorized - 233,333; issued and outstanding - 106,988 shares in 2023 and 107,683 shares in 2022 1,605 1,615 Additional paid-in capital 1,309,834 1,350,377 Accumulated other comprehensive loss (360,135 ) (382,790 ) Retained earnings 3,782,048 3,493,107 Total stockholders' equity 4,733,352 4,462,309 Total liabilities and stockholders' equity $ 5,983,315 $ 5,723,797 Return on average equity (1) 14.9 % 19.1 % (1) The 2023 return on average equity is calculated by dividing annualized year-to-date 2023 net income by average equity. The 2022 return on average equity is calculated by dividing full year 2022 net income by average equity. Exhibit C Essent Group Ltd. and Subsidiaries Supplemental Information Historical Quarterly Data 2023 2022 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 $ 195,502 $ 196,565 $ 192,670 $ 194,272 $ 198,891 GSE and other risk share 17,727 14,693 14,582 13,662 13,120 Net premiums earned 213,229 211,258 207,252 207,934 212,011 Net investment income 45,250 43,236 37,796 32,594 29,339 Realized investment (losses) gains, net (1,589 ) (488 ) (5,524 ) 175 (471 ) (Loss) income from other invested assets (4,852 ) (2,702 ) (7,599 ) 9,617 1,953 Other income (loss) (1) 8,090 4,942 (1,888 ) 11,447 1,577 Total revenues 260,128 256,246 230,037 261,767 244,409 Losses and expenses: Provision (benefit) for losses and LAE 1,260 (180 ) 4,101 4,252 (76,199 ) Other underwriting and operating expenses 42,174 48,195 46,895 42,144 41,898 Interest expense 7,394 6,936 6,045 4,450 2,887 Total losses and expenses 50,828 54,951 57,041 50,846 (31,414 ) Income before income taxes 209,300 201,295 172,996 210,921 275,823 Income tax expense (2) 37,067 30,468 25,630 32,870 44,054 Net income $ 172,233 $ 170,827 $ 147,366 $ 178,051 $ 231,769 Earnings per share: Basic $ 1.62 $ 1.60 $ 1.38 $ 1.67 $ 2.17 Diluted 1.61 1.59 1.37 1.66 2.16 Weighted average shares outstanding: Basic 106,249 106,943 106,881 106,870 106,921 Diluted 107,093 107,585 107,419 107,337 107,283 Book value per share $ 44.24 $ 43.18 $ 41.44 $ 39.87 $ 39.67 Return on average equity (annualized) 14.7 % 15.0 % 13.5 % 16.6 % 21.8 % Other Data: Loss ratio (3) 0.6 % (0.1 )% 2.0 % 2.0 % (35.9 )% Expense ratio (4) 19.8 22.8 22.6 20.3 19.8 Combined ratio 20.4 % 22.7 % 24.6 % 22.3 % (16.2 )% 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) 6.87 % 6.52 % 6.02 % 4.39 % 2.92 % Debt-to-capital 8.24 % 8.38 % 8.70 % 9.01 % 9.05 % (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, 2023, March 31, 2023, December 31, 2022, September 30, 2022, and June 30, 2022 was $2,726, ($368), ($6,515), $5,177, and ($5,549), respectively. (2) Income tax expense for the quarters ended June 30, 2023, March 31, 2023, December 31, 2022, September 30, 2022, and June 30, 2022 includes $(888), ($368), ($4,122), $2,925, and ($299) respectively, of discrete tax (benefit) expense associated with realized and unrealized gains and losses. Income tax expense for the quarter ended June 30, 2023 also includes $5,295 of net discrete tax expense associated with prior year tax returns. (3) Loss ratio is calculated by dividing the provision for losses and LAE by net premiums earned. (4) Expense ratio is calculated by dividing other underwriting and operating expenses by net premiums earned. Exhibit C, continued Essent Group Ltd. and Subsidiaries Supplemental Information Historical Quarterly Data 2023 2022 Other Data, continued: June 30 March 31 December 31 September 30 June 30 ($ in thousands) U.S. Mortgage Insurance Portfolio Flow: New insurance written $ 13,498,080 $ 12,893,789 $ 13,011,432 $ 17,112,017 $ 20,096,135 New risk written 3,726,513 3,548,015 3,522,726 4,570,699 5,442,115 Bulk: New insurance written $ — $ — $ — $ — $ 196 New risk written — — — — 29 Total: New insurance written $ 13,498,080 $ 12,893,789 $ 13,011,432 $ 17,112,017 $ 20,096,331 New risk written $ 3,726,513 $ 3,548,015 $ 3,522,726 $ 4,570,669 $ 5,442,144 Average insurance in force $ 233,484,941 $ 228,885,174 $ 224,840,675 $ 219,280,350 $ 210,896,297 Insurance in force (end of period) $ 235,649,884 $ 231,537,417 $ 227,062,055 $ 222,542,569 $ 215,896,531 Gross risk in force (end of period) (5) $ 62,403,400 $ 60,879,979 $ 59,276,489 $ 57,743,091 $ 55,678,063 Risk in force (end of period) $ 53,290,643 $ 51,469,312 $ 49,903,626 $ 48,690,571 $ 47,289,910 Policies in force 821,690 815,751 808,596 800,745 789,652 Weighted average coverage (6) 26.5 % 26.3 % 26.1 % 25.9 % 25.8 % Annual persistency 85.8 % 84.4 % 82.1 % 77.9 % 73.4 % Loans in default (count) 12,480 12,773 13,433 12,435 12,707 Percentage of loans in default 1.52 % 1.57 % 1.66 % 1.55 % 1.61 % U.S. Mortgage Insurance Portfolio premium rate: Base average premium rate (7) 0.40 % 0.40 % 0.40 % 0.40 % 0.41 % Single premium cancellations (8) — % — % — % 0.01 % 0.01 % Gross average premium rate 0.40 % 0.40 % 0.40 % 0.41 % 0.42 % Ceded premiums (0.07 %) (0.06 %) (0.06 %) (0.06 %) (0.04 %) Net average premium rate 0.33 % 0.34 % 0.34 % 0.35 % 0.38 % (5) Gross risk in force includes risk ceded under third-party reinsurance. (6) Weighted average coverage is calculated by dividing end of period gross risk in force by end of period insurance in force. (7) Base average premium rate is calculated by dividing annualized base premiums earned by average insurance in force for the period. (8) 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 D Essent Group Ltd. and Subsidiaries Supplemental Information New Insurance Written: Flow NIW by Credit Score Three Months Ended Six Months Ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 ($ in thousands) >=760 $ 5,413,790 40.1 % $ 8,555,331 42.6 % $ 10,260,848 38.9 % $ 13,965,985 42.4 % 740-759 2,428,773 18.0 3,421,392 17.0 4,826,755 18.3 5,534,624 16.8 720-739 2,194,400 16.3 3,105,275 15.4 4,399,244 16.7 5,096,593 15.5 700-719 2,022,302 15.0 2,554,997 12.7 4,025,194 15.2 4,175,470 12.7 680-699 1,032,061 7.6 1,785,196 8.9 2,132,876 8.1 2,932,962 8.9 <=679 406,754 3.0 673,944 3.4 746,952 2.8 1,231,983 3.7 Total $ 13,498,080 100.0 % $ 20,096,135 100.0 % $ 26,391,869 100.0 % $ 32,937,617 100.0 % Weighted average credit score 746 747 746 747 NIW by LTV Three Months Ended Six Months Ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 ($ in thousands) 85.00% and below $ 988,752 7.3 % $ 1,675,255 8.3 % $ 1,951,761 7.4 % $ 2,937,293 8.9 % 85.01% to 90.00% 2,819,310 20.9 5,487,721 27.3 5,505,138 20.9 8,903,659 27.0 90.01% to 95.00% 7,339,533 54.4 10,874,315 54.1 14,769,646 55.9 17,290,570 52.5 95.01% and above 2,350,485 17.4 2,058,844 10.3 4,165,324 15.8 3,806,095 11.6 Total $ 13,498,080 100.0 % $ 20,096,135 100.0 % $ 26,391,869 100.0 % $ 32,937,617 100.0 % Weighted average LTV 93 % 93 % 93 % 93 % NIW by Product Three Months Ended Six Months Ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Single Premium policies 4.3 % 6.5 % 4.1 % 4.7 % Monthly Premium policies 95.7 93.5 95.9 95.3 100.0 % 100.0 % 100.0 % 100.0 % NIW by Purchase vs. Refinance Three Months Ended Six Months Ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Purchase 98.8 % 98.0 % 98.7 % 96.5 % Refinance 1.2 2.0 1.3 3.5 100.0 % 100.0 % 100.0 % 100.0 % Exhibit E Essent Group Ltd. and Subsidiaries Supplemental Information Insurance in Force and Risk in Force Portfolio by Credit Score IIF by FICO score June 30, 2023 March 31, 2023 June 30, 2022 ($ in thousands) >=760 $ 95,925,520 40.8 % $ 94,560,292 40.8 % $ 89,790,212 41.6 % 740-759 40,733,799 17.3 39,870,193 17.2 36,606,394 17.0 720-739 36,791,104 15.6 35,950,319 15.5 32,637,422 15.1 700-719 30,970,132 13.1 30,103,007 13.0 27,258,759 12.6 680-699 19,667,866 8.3 19,338,187 8.4 17,697,662 8.2 <=679 11,561,463 4.9 11,715,419 5.1 11,906,082 5.5 Total $ 235,649,884 100.0 % $ 231,537,417 100.0 % $ 215,896,531 100.0 % Weighted average credit score 746 746 746 Gross RIF by FICO score June 30, 2023 March 31, 2023 June 30, 2022 ($ in thousands) >=760 $ 25,138,762 40.3 % $ 24,613,214 40.4 % $ 22,956,271 41.2 % 740-759 10,922,780 17.5 10,612,582 17.4 9,540,921 17.1 720-739 9,896,425 15.9 9,602,368 15.8 8,545,969 15.3 700-719 8,319,353 13.3 8,017,430 13.2 7,107,888 12.8 680-699 5,248,349 8.4 5,126,581 8.4 4,601,675 8.3 <=679 2,877,731 4.6 2,907,804 4.8 2,925,339 5.3 Total $ 62,403,400 100.0 % $ 60,879,979 100.0 % $ 55,678,063 100.0 % Portfolio by LTV IIF by LTV June 30, 2023 March 31, 2023 June 30, 2022 ($ in thousands) 85.00% and below $ 22,427,649 9.5 % $ 23,502,232 10.2 % $ 25,510,400 11.8 % 85.01% to 90.00% 63,562,258 27.0 63,478,244 27.3 61,304,806 28.4 90.01% to 95.00% 115,768,826 49.1 112,184,833 48.5 98,938,435 45.8 95.01% and above 33,891,151 14.4 32,372,108 14.0 30,142,890 14.0 Total $ 235,649,884 100.0 % $ 231,537,417 100.0 % $ 215,896,531 100.0 % Weighted average LTV 93 % 92 % 92 % Gross RIF by LTV June 30, 2023 March 31, 2023 June 30, 2022 ($ in thousands) 85.00% and below $ 2,667,981 4.3 % $ 2,793,895 4.6 % $ 3,012,030 5.4 % 85.01% to 90.00% 15,583,198 25.0 15,529,427 25.5 14,868,579 26.7 90.01% to 95.00% 34,026,320 54.5 32,929,489 54.1 28,921,722 52.0 95.01% and above 10,125,901 16.2 9,627,168 15.8 8,875,732 15.9 Total $ 62,403,400 100.0 % $ 60,879,979 100.0 % $ 55,678,063 100.0 % Portfolio by Loan Amortization Period IIF by Loan Amortization Period June 30, 2023 March 31, 2023 June 30, 2022 ($ in thousands) FRM 30 years and higher $ 228,745,641 97.1 % $ 224,230,607 96.8 % $ 207,888,842 96.3 % FRM 20-25 years 2,124,690 0.9 2,364,623 1.0 3,114,962 1.4 FRM 15 years 1,953,448 0.8 2,214,448 1.0 3,222,801 1.5 ARM 5 years and higher 2,826,105 1.2 2,727,739 1.2 1,669,926 0.8 Total $ 235,649,884 100.0 % $ 231,537,417 100.0 % $ 215,896,531 100.0 % Exhibit F Essent Group Ltd. and Subsidiaries Supplemental Information Other Risk in Force 2023 2022 ($ in thousands) June 30 March 31 December 31 September 30 June 30 GSE and other risk share (1): Risk in Force $ 2,276,702 $ 2,098,033 $ 2,030,571 $ 2,026,895 $ 1,898,364 Reserve for losses and LAE $ 55 $ 65 $ 74 $ 102 $ 144 Weighted average credit score 749 749 749 748 748 Weighted average LTV 83 % 83 % 83 % 84 % 84 % (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 G Essent Group Ltd. and Subsidiaries Supplemental Information Portfolio Vintage Data June 30, 2023 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 $ 1,807,238 3.0 % 11,385 4.31 % 75.6 % 65.8 % 6.4 % 14.9 % 43.4 % 2.5 % 416 3.65 % 2015 26,193,656 1,649,738 6.3 9,997 4.19 84.7 75.8 4.5 17.4 39.6 2.6 367 3.67 2016 34,949,319 3,476,870 9.9 19,998 3.89 87.9 79.3 11.6 16.2 42.4 2.5 586 2.93 2017 43,858,322 5,316,345 12.1 31,404 4.27 91.3 70.7 20.4 20.4 37.9 3.5 1,134 3.61 2018 47,508,525 6,113,917 12.9 34,026 4.79 94.6 70.5 25.6 21.7 32.7 4.8 1,456 4.28 2019 63,569,183 13,481,766 21.2 63,599 4.22 87.9 67.6 24.3 18.7 35.6 4.9 1,845 2.90 2020 107,944,065 52,266,774 48.4 198,262 3.19 67.3 55.6 12.7 10.8 45.6 3.6 2,359 1.19 2021 84,218,250 66,928,946 79.5 216,319 3.08 85.7 61.9 15.0 13.9 40.5 7.5 2,799 1.29 2022 63,061,262 58,725,613 93.1 165,953 5.07 97.8 65.0 11.1 12.7 39.7 18.7 1,429 0.86 2023 (through June 30) 26,391,869 25,882,677 98.1 70,747 6.34 98.7 71.9 16.0 11.0 38.4 7.8 89 0.13 Total $ 558,363,302 $ 235,649,884 42.2 821,690 4.12 86.5 63.5 14.4 13.3 40.7 4.3 12,480 1.52 (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 H Essent Group Ltd. and Subsidiaries Supplemental Information Reinsurance Vintage Data June 30, 2023 ($ 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 2018-1 Jan. 2017 - Dec. 2017 $ — $ — $ — $ — $ — $ — $ — $ — $ 1,781 $ — Radnor Re 2019-1 Jan. 2018 - Dec. 2018 6,031,462 1,568,566 473,184 21,467 — 253,643 247,780 9,948 13,447 — Radnor Re 2019-2 Jan. 2015 - Dec. 2016 — — — — — — — — 220 — Radnor Re 2020-1 Jan. 2019 - Aug. 2019 7,496,071 1,939,751 495,889 52,691 — 215,605 214,221 3,497 5,871 — Radnor Re 2021-1 Aug. 2020 - Mar. 2021 35,742,003 9,110,919 557,911 374,172 — 278,956 278,827 2,984 6,178 289,810 Radnor Re 2021-2 Apr. 2021 - Sep. 2021 39,179,542 10,503,842 439,407 384,452 — 279,415 279,297 4,121 8,274 331,024 Radnor Re 2022-1 Oct. 2021 - Jul. 2022 32,744,576 8,818,357 237,868 237,868 — 303,761 303,761 4,306 8,521 218,839 Total $ 121,193,654 $ 31,941,435 $ 2,204,259 $ 1,070,650 $ — $ 1,331,380 $ 1,323,886 $ 24,856 $ 44,292 $ 839,673 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 2018-1 Jan. 2017 - Dec. 2017 $ 5,200,346 $ 1,369,342 $ 165,167 $ 65,983 $ — $ 678,283 $ 421,003 $ 309 $ 664 $ — XOL 2019-1 Jan. 2018 - Dec. 2018 6,031,462 1,568,566 118,650 76,144 — 253,643 247,780 (4 ) 621 1,234 — XOL 2020-1 Jan. 2019 - Dec. 2019 7,496,071 1,939,751 55,102 41,162 — 215,605 214,221 (4 ) 311 628 — XOL 2022-1 Oct. 2021 - Dec. 2022 72,971,240 19,674,482 141,992 141,992 — 507,114 507,114 1,615 3,169 138,395 Total $ 91,699,119 $ 24,552,141 $ 480,911 $ 325,281 $ — $ 1,654,645 $ 1,390,118 $ 2,856 $ 5,695 $ 138,395 (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) First layer retentions shown are ILN retention levels as a result of overlapping coverage within the vintage. 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 (5 ) $ 57,938,827 $ 14,951,010 $ 12,929,459 $ 3,298,284 $ (1,015 ) $ (1,744 ) $ 2,785 $ 5,712 $ 4,138 $ 8,824 $ 198,708 Jan. 2022 - Dec. 2023 20 % 58,669,337 15,850,694 11,733,867 3,170,139 2,388 4,881 1,959 3,938 6,110 12,364 227,761 Jan. 2023 - Dec. 2023 17.5 % 25,838,027 7,133,730 4,521,655 1,248,403 304 332 611 776 1,586 1,962 88,320 Total $ 142,446,191 $ 37,935,434 $ 29,184,981 $ 7,716,826 $ 1,677 $ 3,469 $ 5,355 $ 10,426 $ 11,834 $ 23,150 $ 514,789 (5) Reinsurance coverage on 40% of eligible single premium policies and 20% of all other eligible policies. Exhibit I Essent Group Ltd. and Subsidiaries Supplemental Information Portfolio Geographic Data IIF by State June 30, 2023 March 31, 2023 June 30, 2022 CA 13.1 % 13.2 % 13.2 % FL 10.8 10.4 10.0 TX 10.5 10.5 10.2 CO 4.1 4.2 4.2 AZ 3.7 3.6 3.4 WA 3.4 3.4 3.5 GA 3.3 3.2 3.1 IL 2.9 3.0 3.2 VA 2.9 3.0 3.1 NJ 2.9 2.9 3.1 All Others 42.4 42.6 43.0 Total 100.0 % 100.0 % 100.0 % Gross RIF by State June 30, 2023 March 31, 2023 June 30, 2022 CA 13.0 % 13.0 % 13.0 % FL 11.1 10.7 10.3 TX 10.8 10.8 10.6 CO 4.1 4.1 4.1 AZ 3.8 3.7 3.4 WA 3.4 3.4 3.4 GA 3.4 3.3 3.2 IL 2.8 2.9 3.1 VA 2.8 2.9 3.0 NJ 2.8 2.8 2.9 All Others 42.0 42.4 43.0 Total 100.0 % 100.0 % 100.0 % Exhibit J 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 2023 2022 June 30 March 31 December 31 September 30 June 30 Beginning default inventory 12,773 13,433 12,435 12,707 14,923 Plus: new defaults (A) 6,575 7,015 7,505 6,448 5,495 Less: cures (6,761 ) (7,574 ) (6,425 ) (6,642 ) (7,639 ) Less: claims paid (96 ) (94 ) (73 ) (68 ) (65 ) Less: rescissions and denials, net (11 ) (7 ) (9 ) (10 ) (7 ) Ending default inventory 12,480 12,773 13,433 12,435 12,707 (A) New defaults remaining as of June 30, 2023 4,876 2,343 1,797 1,104 559 Cure rate (1) 26 % 67 % 76 % 83 % 90 % Total amount paid for claims (in thousands) $ 1,890 $ 1,959 $ 1,441 $ 1,261 $ 1,137 Average amount paid per claim (in thousands) $ 20 $ 21 $ 20 $ 19 $ 17 Severity 58 % 59 % 46 % 47 % 50 % Rollforward of Reserve for Losses and LAE Three Months Ended 2023 2022 ($ in thousands) June 30 March 31 December 31 September 30 June 30 Reserve for losses and LAE at beginning of period $ 215,957 $ 216,390 $ 212,392 $ 209,829 $ 292,818 Less: Reinsurance recoverables 16,357 14,618 13,244 13,657 19,335 Net reserve for losses and LAE at beginning of period 199,600 201,772 199,148 196,172 273,483 Add provision for losses and LAE occurring in: Current period 31,377 32,693 36,141 20,144 18,720 Prior years (30,107 ) (32,864 ) (32,012 ) (15,850 ) (94,809 ) Incurred losses and LAE during the period 1,270 (171 ) 4,129 4,294 (76,089 ) Deduct payments for losses and LAE occurring in: Current period 31 — 113 30 80 Prior years 1,909 2,001 1,392 1,288 1,142 Loss and LAE payments during the period 1,940 2,001 1,505 1,318 1,222 Net reserve for losses and LAE at end of period 198,930 199,600 201,772 199,148 196,172 Plus: Reinsurance recoverables 17,958 16,357 14,618 13,244 13,657 Reserve for losses and LAE at end of period $ 216,888 $ 215,957 $ 216,390 $ 212,392 $ 209,829 (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 K Essent Group Ltd. and Subsidiaries Supplemental Information Detail of Reserves by Default Delinquency U.S. Mortgage Insurance Portfolio 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 % December 31, 2022 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 6,154 46 % $ 32,242 16 % $ 411,624 8 % Four to eleven payments 4,684 35 65,071 33 317,417 21 Twelve or more payments 2,474 18 98,291 49 147,247 67 Pending claims 121 1 3,815 2 4,860 78 Total case reserves 13,433 100 % 199,419 100 % $ 881,148 23 % IBNR 14,956 LAE 2,015 Total reserves for losses and LAE $ 216,390 Average reserve per default: Case $ 14.8 Total $ 16.1 Default Rate 1.66 % June 30, 2022 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 4,036 32 % $ 18,653 10 % $ 250,303 7 % Four to eleven payments 4,741 37 59,753 31 304,764 20 Twelve or more payments 3,849 30 111,442 57 236,440 47 Pending claims 81 1 3,568 2 3,574 100 Total case reserves 12,707 100 % 193,416 100 % $ 795,081 24 % IBNR 14,506 LAE 1,907 Total reserves for losses and LAE $ 209,829 Average reserve per default: Case $ 15.2 Total $ 16.5 Default Rate 1.61 % Exhibit L Essent Group Ltd. and Subsidiaries Supplemental Information Investments Available for Sale Investments Available for Sale by Asset Class Asset Class June 30, 2023 December 31, 2022 ($ in thousands) Fair Value Percent Fair Value Percent U.S. Treasury securities $ 643,586 12.8 % $ 556,438 11.7 % U.S. agency securities 9,671 0.2 49,058 1.0 U.S. agency mortgage-backed securities 810,108 16.1 783,743 16.5 Municipal debt securities 600,162 12.0 602,690 12.8 Non-U.S. government securities 50,553 1.0 62,399 1.3 Corporate debt securities 1,349,221 26.9 1,414,321 29.8 Residential and commercial mortgage securities 510,350 10.2 511,824 10.8 Asset-backed securities 634,910 12.6 624,561 13.2 Money market funds 413,533 8.2 136,591 2.9 Total investments available for sale $ 5,022,094 100.0 % $ 4,741,625 100.0 % Investments Available for Sale by Credit Rating Rating (1) June 30, 2023 December 31, 2022 ($ in thousands) Fair Value Percent Fair Value Percent Aaa $ 2,251,533 48.9 % $ 2,122,599 46.2 % Aa1 113,007 2.5 111,262 2.4 Aa2 305,630 6.6 325,241 7.1 Aa3 230,676 5.0 232,500 5.0 A1 401,624 8.7 396,095 8.6 A2 313,849 6.8 410,163 8.9 A3 263,496 5.7 268,928 5.8 Baa1 237,699 5.2 236,793 5.1 Baa2 241,926 5.2 221,308 4.8 Baa3 161,797 3.5 187,117 4.1 Below Baa3 87,324 1.9 93,028 2.0 Total (2) $ 4,608,561 100.0 % $ 4,605,034 100.0 % (1) Based on ratings issued by Moody's, if available. S&P or Fitch rating utilized if Moody's not available. (2) Excludes $413,533 and $136,591 of money market funds at June 30, 2023 and December 31, 2022, respectively. Investments Available for Sale by Duration and Book Yield Effective Duration June 30, 2023 December 31, 2022 ($ in thousands) Fair Value Percent Fair Value Percent < 1 Year $ 1,511,281 30.1 % $ 1,245,839 26.3 % 1 to < 2 Years 545,993 10.9 534,038 11.3 2 to < 3 Years 408,377 8.1 511,701 10.8 3 to < 4 Years 529,277 10.5 525,683 11.1 4 to < 5 Years 395,775 7.9 400,540 8.4 5 or more Years 1,631,391 32.5 1,523,824 32.1 Total investments available for sale $ 5,022,094 100.0 % $ 4,741,625 100.0 % Pre-tax investment income yield: Three months ended 3.46 % 3.03 % Six months ended June 30, 2023 3.42 % Holding company net cash and investments available for sale: ($ in thousands) As of June 30, 2023 $ 739,525 As of December 31, 2022 $ 685,178 Exhibit M Essent Group Ltd. and Subsidiaries Supplemental Information Insurance Company Capital 2023 2022 June 30 March 31 December 31 September 30 June 30 ($ in thousands) U.S. Mortgage Insurance Subsidiaries: Combined statutory capital (1) $ 3,243,086 $ 3,207,102 $ 3,178,151 $ 3,128,681 $ 3,062,438 Combined net risk in force (2) $ 34,019,643 $ 33,038,825 $ 32,265,701 $ 31,736,095 $ 31,221,406 Risk-to-capital ratios: (3) Essent Guaranty, Inc. 10.8:1 10.6:1 10.5:1 10.5:1 10.6:1 Essent Guaranty of PA, Inc. 0.5:1 0.5:1 0.6:1 0.6:1 0.6:1 Combined (4) 10.5:1 10.3:1 10.2:1 10.1:1 10.2:1 Essent Guaranty, Inc. PMIERs Data (5): Available Assets $ 3,245,481 $ 3,226,436 $ 3,191,047 $ 3,147,545 $ 3,120,098 Minimum Required Assets 1,991,741 1,917,769 1,832,363 1,759,182 1,869,524 PMIERs excess Available Assets $ 1,253,740 $ 1,308,667 $ 1,358,684 $ 1,388,363 $ 1,250,574 PMIERs sufficiency ratio (6) 163 % 168 % 174 % 179 % 167 % Essent Reinsurance Ltd.: Stockholder's equity (GAAP basis) $ 1,633,763 $ 1,573,013 $ 1,478,772 $ 1,397,287 $ 1,380,067 Net risk in force (2) $ 21,327,762 $ 20,305,111 $ 19,454,046 $ 18,694,500 $ 17,758,801 (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. View source version on businesswire.com: https://www.businesswire.com/news/home/20230804672391/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
Essent Group Ltd. (NYSE: ESNT) today reported net income for the quarter ended June 30, 2023 of $172.2 million or $1.61 per diluted share, compared to $231.8 million or $2.16 per diluted share for the quarter ended June 30, 2022. Essent also announced today that its Board of Directors has declared a quarterly cash dividend of $0.25 per common share. The dividend is payable on September 11, 2023, to shareholders of record on September 1, 2023. “We are pleased with our second quarter 2023 financial results, which reflect the high quality of our portfolio and the resilience in housing and employment,” said Mark A. Casale, Chairman and Chief Executive Officer. “Our strong operational performance continues to demonstrate the earnings power of our business and provide us with attractive levels of excess capital, which we can then deploy in the best long-term interest of our shareholders.” Financial Highlights: New insurance written for the second quarter of 2023 was $13.5 billion, compared to $12.9 billion in the first quarter of 2023 and $20.1 billion in the second quarter of 2022. Insurance in force as of June 30, 2023 was $235.6 billion, compared to $231.5 billion as of March 31, 2023 and $215.9 billion as of June 30, 2022. The combined ratio for the second quarter of 2023 was 20.4%, compared to 22.7% in the first quarter of 2023 and (16.2)% in the second quarter of 2022. During the quarter, Essent successfully executed a consent and tender process on $637 million of outstanding notes from two seasoned ILN deals that provided no regulatory or economic capital credit. On July 1, 2023, Essent Group Ltd. completed its previously announced acquisition of Agents National Title Holding Company and Boston National Holdings LLC for $92.6 million. On July 27, 2023, Essent priced its 9th insurance-link note transaction, Radnor Re 2023-1, which provides $281.5 million of collateralized reinsurance coverage for NIW from August 2022 through June 2023. 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; lenders or investors seeking alternatives to private mortgage insurance; deteriorating economic conditions (including inflation, rising interest rates and other adverse economic trends); the impact of COVID-19 and related economic conditions; an increase in the number of loans insured through Federal government mortgage insurance programs, including those offered by the Federal Housing Administration; decline in new insurance written and franchise value due to loss of a significant customer; decline in the volume of low down payment mortgage originations; the definition of "Qualified Mortgage" reducing the size of the mortgage origination market or creating incentives to use government mortgage insurance programs; the definition of "Qualified Residential Mortgage" reducing the number of low down payment loans or lenders and investors seeking alternatives to private mortgage insurance; the implementation of the Basel III Capital Accord discouraging the use of private mortgage insurance; a decrease in the length of time that insurance policies are in force; uncertainty of loss reserve estimates; our non-U.S. operations becoming subject to U.S. Federal income taxation; becoming considered a passive foreign investment company for U.S. Federal income tax purposes; 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, 2022 filed with the Securities and Exchange Commission on February 17, 2023, 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”) which serves the housing finance industry by offering private mortgage insurance, reinsurance, risk management products and title insurance and settlement services to mortgage lenders, borrowers, and investors to support homeownership. Additional information regarding Essent may be found at www.essentgroup.com and www.essent.us. Source: Essent Group Ltd. Essent Group Ltd. and Subsidiaries Financial Results and Supplemental Information (Unaudited) Quarter Ended June 30, 2023 Exhibit A Condensed Consolidated Statements of Comprehensive Income (Unaudited) Exhibit B Condensed Consolidated Balance Sheets (Unaudited) Exhibit C Historical Quarterly Data Exhibit D New Insurance Written Exhibit E Insurance in Force and Risk in Force Exhibit F Other Risk in Force Exhibit G Portfolio Vintage Data Exhibit H Reinsurance Vintage Data Exhibit I Portfolio Geographic Data Exhibit J Rollforward of Defaults and Reserve for Losses and LAE Exhibit K Detail of Reserves by Default Delinquency Exhibit L Investments Available for Sale Exhibit M Insurance Company Capital 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) 2023 2022 2023 2022 Revenues: Direct premiums written $ 249,167 $ 232,660 $ 488,658 $ 452,914 Ceded premiums (39,546 ) (22,318 ) (73,137 ) (42,841 ) Net premiums written 209,621 210,342 415,521 410,073 Decrease in unearned premiums 3,608 1,669 8,966 17,268 Net premiums earned 213,229 212,011 424,487 427,341 Net investment income 45,250 29,339 88,486 54,019 Realized investment losses, net (1,589 ) (471 ) (2,077 ) (7,823 ) (Loss) income from other invested assets (4,852 ) 1,953 (7,554 ) 26,658 Other income 8,090 1,577 13,032 8,825 Total revenues 260,128 244,409 516,374 509,020 Losses and expenses: Provision (benefit) for losses and LAE 1,260 (76,199 ) 1,080 (183,057 ) Other underwriting and operating expenses 42,174 41,898 90,369 82,694 Interest expense 7,394 2,887 14,330 5,113 Total losses and expenses 50,828 (31,414 ) 105,779 (95,250 ) Income before income taxes 209,300 275,823 410,595 604,270 Income tax expense 37,067 44,054 67,535 98,334 Net income $ 172,233 $ 231,769 $ 343,060 $ 505,936 Earnings per share: Basic $ 1.62 $ 2.17 $ 3.22 $ 4.70 Diluted 1.61 2.16 3.20 4.69 Weighted average shares outstanding: Basic 106,249 106,921 106,594 107,540 Diluted 107,093 107,283 107,338 107,933 Net income $ 172,233 $ 231,769 $ 343,060 $ 505,936 Other comprehensive income (loss): Change in unrealized appreciation (depreciation) of investments (36,098 ) (134,268 ) 22,655 (337,274 ) Total other comprehensive income (loss) (36,098 ) (134,268 ) 22,655 (337,274 ) Comprehensive income $ 136,135 $ 97,501 $ 365,715 $ 168,662 Loss ratio 0.6 % (35.9 %) 0.3 % (42.8 %) Expense ratio 19.8 19.8 21.3 19.4 Combined ratio 20.4 % (16.2 %) 21.5 % (23.5 %) Exhibit B Essent Group Ltd. and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited) June 30, December 31, (In thousands, except per share amounts) 2023 2022 Assets Investments Fixed maturities available for sale, at fair value $ 4,438,554 $ 4,489,598 Short-term investments available for sale, at fair value 583,540 252,027 Total investments available for sale 5,022,094 4,741,625 Other invested assets 266,559 257,941 Total investments 5,288,653 4,999,566 Cash 68,101 81,240 Accrued investment income 36,099 33,162 Accounts receivable 62,692 57,399 Deferred policy acquisition costs 9,460 9,910 Property and equipment 31,324 19,571 Prepaid federal income tax 446,460 418,460 Other assets 40,526 104,489 Total assets $ 5,983,315 $ 5,723,797 Liabilities and Stockholders' Equity Liabilities Reserve for losses and LAE $ 216,943 $ 216,464 Unearned premium reserve 153,921 162,887 Net deferred tax liability 328,340 356,810 Credit facility borrowings, net of deferred costs 421,392 420,864 Other accrued liabilities 129,367 104,463 Total liabilities 1,249,963 1,261,488 Commitments and contingencies Stockholders' Equity Common shares, $0.015 par value: Authorized - 233,333; issued and outstanding - 106,988 shares in 2023 and 107,683 shares in 2022 1,605 1,615 Additional paid-in capital 1,309,834 1,350,377 Accumulated other comprehensive loss (360,135 ) (382,790 ) Retained earnings 3,782,048 3,493,107 Total stockholders' equity 4,733,352 4,462,309 Total liabilities and stockholders' equity $ 5,983,315 $ 5,723,797 Return on average equity (1) 14.9 % 19.1 % (1) The 2023 return on average equity is calculated by dividing annualized year-to-date 2023 net income by average equity. The 2022 return on average equity is calculated by dividing full year 2022 net income by average equity. Exhibit C Essent Group Ltd. and Subsidiaries Supplemental Information Historical Quarterly Data 2023 2022 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 $ 195,502 $ 196,565 $ 192,670 $ 194,272 $ 198,891 GSE and other risk share 17,727 14,693 14,582 13,662 13,120 Net premiums earned 213,229 211,258 207,252 207,934 212,011 Net investment income 45,250 43,236 37,796 32,594 29,339 Realized investment (losses) gains, net (1,589 ) (488 ) (5,524 ) 175 (471 ) (Loss) income from other invested assets (4,852 ) (2,702 ) (7,599 ) 9,617 1,953 Other income (loss) (1) 8,090 4,942 (1,888 ) 11,447 1,577 Total revenues 260,128 256,246 230,037 261,767 244,409 Losses and expenses: Provision (benefit) for losses and LAE 1,260 (180 ) 4,101 4,252 (76,199 ) Other underwriting and operating expenses 42,174 48,195 46,895 42,144 41,898 Interest expense 7,394 6,936 6,045 4,450 2,887 Total losses and expenses 50,828 54,951 57,041 50,846 (31,414 ) Income before income taxes 209,300 201,295 172,996 210,921 275,823 Income tax expense (2) 37,067 30,468 25,630 32,870 44,054 Net income $ 172,233 $ 170,827 $ 147,366 $ 178,051 $ 231,769 Earnings per share: Basic $ 1.62 $ 1.60 $ 1.38 $ 1.67 $ 2.17 Diluted 1.61 1.59 1.37 1.66 2.16 Weighted average shares outstanding: Basic 106,249 106,943 106,881 106,870 106,921 Diluted 107,093 107,585 107,419 107,337 107,283 Book value per share $ 44.24 $ 43.18 $ 41.44 $ 39.87 $ 39.67 Return on average equity (annualized) 14.7 % 15.0 % 13.5 % 16.6 % 21.8 % Other Data: Loss ratio (3) 0.6 % (0.1 )% 2.0 % 2.0 % (35.9 )% Expense ratio (4) 19.8 22.8 22.6 20.3 19.8 Combined ratio 20.4 % 22.7 % 24.6 % 22.3 % (16.2 )% 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) 6.87 % 6.52 % 6.02 % 4.39 % 2.92 % Debt-to-capital 8.24 % 8.38 % 8.70 % 9.01 % 9.05 % (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, 2023, March 31, 2023, December 31, 2022, September 30, 2022, and June 30, 2022 was $2,726, ($368), ($6,515), $5,177, and ($5,549), respectively. (2) Income tax expense for the quarters ended June 30, 2023, March 31, 2023, December 31, 2022, September 30, 2022, and June 30, 2022 includes $(888), ($368), ($4,122), $2,925, and ($299) respectively, of discrete tax (benefit) expense associated with realized and unrealized gains and losses. Income tax expense for the quarter ended June 30, 2023 also includes $5,295 of net discrete tax expense associated with prior year tax returns. (3) Loss ratio is calculated by dividing the provision for losses and LAE by net premiums earned. (4) Expense ratio is calculated by dividing other underwriting and operating expenses by net premiums earned. Exhibit C, continued Essent Group Ltd. and Subsidiaries Supplemental Information Historical Quarterly Data 2023 2022 Other Data, continued: June 30 March 31 December 31 September 30 June 30 ($ in thousands) U.S. Mortgage Insurance Portfolio Flow: New insurance written $ 13,498,080 $ 12,893,789 $ 13,011,432 $ 17,112,017 $ 20,096,135 New risk written 3,726,513 3,548,015 3,522,726 4,570,699 5,442,115 Bulk: New insurance written $ — $ — $ — $ — $ 196 New risk written — — — — 29 Total: New insurance written $ 13,498,080 $ 12,893,789 $ 13,011,432 $ 17,112,017 $ 20,096,331 New risk written $ 3,726,513 $ 3,548,015 $ 3,522,726 $ 4,570,669 $ 5,442,144 Average insurance in force $ 233,484,941 $ 228,885,174 $ 224,840,675 $ 219,280,350 $ 210,896,297 Insurance in force (end of period) $ 235,649,884 $ 231,537,417 $ 227,062,055 $ 222,542,569 $ 215,896,531 Gross risk in force (end of period) (5) $ 62,403,400 $ 60,879,979 $ 59,276,489 $ 57,743,091 $ 55,678,063 Risk in force (end of period) $ 53,290,643 $ 51,469,312 $ 49,903,626 $ 48,690,571 $ 47,289,910 Policies in force 821,690 815,751 808,596 800,745 789,652 Weighted average coverage (6) 26.5 % 26.3 % 26.1 % 25.9 % 25.8 % Annual persistency 85.8 % 84.4 % 82.1 % 77.9 % 73.4 % Loans in default (count) 12,480 12,773 13,433 12,435 12,707 Percentage of loans in default 1.52 % 1.57 % 1.66 % 1.55 % 1.61 % U.S. Mortgage Insurance Portfolio premium rate: Base average premium rate (7) 0.40 % 0.40 % 0.40 % 0.40 % 0.41 % Single premium cancellations (8) — % — % — % 0.01 % 0.01 % Gross average premium rate 0.40 % 0.40 % 0.40 % 0.41 % 0.42 % Ceded premiums (0.07 %) (0.06 %) (0.06 %) (0.06 %) (0.04 %) Net average premium rate 0.33 % 0.34 % 0.34 % 0.35 % 0.38 % (5) Gross risk in force includes risk ceded under third-party reinsurance. (6) Weighted average coverage is calculated by dividing end of period gross risk in force by end of period insurance in force. (7) Base average premium rate is calculated by dividing annualized base premiums earned by average insurance in force for the period. (8) 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 D Essent Group Ltd. and Subsidiaries Supplemental Information New Insurance Written: Flow NIW by Credit Score Three Months Ended Six Months Ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 ($ in thousands) >=760 $ 5,413,790 40.1 % $ 8,555,331 42.6 % $ 10,260,848 38.9 % $ 13,965,985 42.4 % 740-759 2,428,773 18.0 3,421,392 17.0 4,826,755 18.3 5,534,624 16.8 720-739 2,194,400 16.3 3,105,275 15.4 4,399,244 16.7 5,096,593 15.5 700-719 2,022,302 15.0 2,554,997 12.7 4,025,194 15.2 4,175,470 12.7 680-699 1,032,061 7.6 1,785,196 8.9 2,132,876 8.1 2,932,962 8.9 <=679 406,754 3.0 673,944 3.4 746,952 2.8 1,231,983 3.7 Total $ 13,498,080 100.0 % $ 20,096,135 100.0 % $ 26,391,869 100.0 % $ 32,937,617 100.0 % Weighted average credit score 746 747 746 747 NIW by LTV Three Months Ended Six Months Ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 ($ in thousands) 85.00% and below $ 988,752 7.3 % $ 1,675,255 8.3 % $ 1,951,761 7.4 % $ 2,937,293 8.9 % 85.01% to 90.00% 2,819,310 20.9 5,487,721 27.3 5,505,138 20.9 8,903,659 27.0 90.01% to 95.00% 7,339,533 54.4 10,874,315 54.1 14,769,646 55.9 17,290,570 52.5 95.01% and above 2,350,485 17.4 2,058,844 10.3 4,165,324 15.8 3,806,095 11.6 Total $ 13,498,080 100.0 % $ 20,096,135 100.0 % $ 26,391,869 100.0 % $ 32,937,617 100.0 % Weighted average LTV 93 % 93 % 93 % 93 % NIW by Product Three Months Ended Six Months Ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Single Premium policies 4.3 % 6.5 % 4.1 % 4.7 % Monthly Premium policies 95.7 93.5 95.9 95.3 100.0 % 100.0 % 100.0 % 100.0 % NIW by Purchase vs. Refinance Three Months Ended Six Months Ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Purchase 98.8 % 98.0 % 98.7 % 96.5 % Refinance 1.2 2.0 1.3 3.5 100.0 % 100.0 % 100.0 % 100.0 % Exhibit E Essent Group Ltd. and Subsidiaries Supplemental Information Insurance in Force and Risk in Force Portfolio by Credit Score IIF by FICO score June 30, 2023 March 31, 2023 June 30, 2022 ($ in thousands) >=760 $ 95,925,520 40.8 % $ 94,560,292 40.8 % $ 89,790,212 41.6 % 740-759 40,733,799 17.3 39,870,193 17.2 36,606,394 17.0 720-739 36,791,104 15.6 35,950,319 15.5 32,637,422 15.1 700-719 30,970,132 13.1 30,103,007 13.0 27,258,759 12.6 680-699 19,667,866 8.3 19,338,187 8.4 17,697,662 8.2 <=679 11,561,463 4.9 11,715,419 5.1 11,906,082 5.5 Total $ 235,649,884 100.0 % $ 231,537,417 100.0 % $ 215,896,531 100.0 % Weighted average credit score 746 746 746 Gross RIF by FICO score June 30, 2023 March 31, 2023 June 30, 2022 ($ in thousands) >=760 $ 25,138,762 40.3 % $ 24,613,214 40.4 % $ 22,956,271 41.2 % 740-759 10,922,780 17.5 10,612,582 17.4 9,540,921 17.1 720-739 9,896,425 15.9 9,602,368 15.8 8,545,969 15.3 700-719 8,319,353 13.3 8,017,430 13.2 7,107,888 12.8 680-699 5,248,349 8.4 5,126,581 8.4 4,601,675 8.3 <=679 2,877,731 4.6 2,907,804 4.8 2,925,339 5.3 Total $ 62,403,400 100.0 % $ 60,879,979 100.0 % $ 55,678,063 100.0 % Portfolio by LTV IIF by LTV June 30, 2023 March 31, 2023 June 30, 2022 ($ in thousands) 85.00% and below $ 22,427,649 9.5 % $ 23,502,232 10.2 % $ 25,510,400 11.8 % 85.01% to 90.00% 63,562,258 27.0 63,478,244 27.3 61,304,806 28.4 90.01% to 95.00% 115,768,826 49.1 112,184,833 48.5 98,938,435 45.8 95.01% and above 33,891,151 14.4 32,372,108 14.0 30,142,890 14.0 Total $ 235,649,884 100.0 % $ 231,537,417 100.0 % $ 215,896,531 100.0 % Weighted average LTV 93 % 92 % 92 % Gross RIF by LTV June 30, 2023 March 31, 2023 June 30, 2022 ($ in thousands) 85.00% and below $ 2,667,981 4.3 % $ 2,793,895 4.6 % $ 3,012,030 5.4 % 85.01% to 90.00% 15,583,198 25.0 15,529,427 25.5 14,868,579 26.7 90.01% to 95.00% 34,026,320 54.5 32,929,489 54.1 28,921,722 52.0 95.01% and above 10,125,901 16.2 9,627,168 15.8 8,875,732 15.9 Total $ 62,403,400 100.0 % $ 60,879,979 100.0 % $ 55,678,063 100.0 % Portfolio by Loan Amortization Period IIF by Loan Amortization Period June 30, 2023 March 31, 2023 June 30, 2022 ($ in thousands) FRM 30 years and higher $ 228,745,641 97.1 % $ 224,230,607 96.8 % $ 207,888,842 96.3 % FRM 20-25 years 2,124,690 0.9 2,364,623 1.0 3,114,962 1.4 FRM 15 years 1,953,448 0.8 2,214,448 1.0 3,222,801 1.5 ARM 5 years and higher 2,826,105 1.2 2,727,739 1.2 1,669,926 0.8 Total $ 235,649,884 100.0 % $ 231,537,417 100.0 % $ 215,896,531 100.0 % Exhibit F Essent Group Ltd. and Subsidiaries Supplemental Information Other Risk in Force 2023 2022 ($ in thousands) June 30 March 31 December 31 September 30 June 30 GSE and other risk share (1): Risk in Force $ 2,276,702 $ 2,098,033 $ 2,030,571 $ 2,026,895 $ 1,898,364 Reserve for losses and LAE $ 55 $ 65 $ 74 $ 102 $ 144 Weighted average credit score 749 749 749 748 748 Weighted average LTV 83 % 83 % 83 % 84 % 84 % (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 G Essent Group Ltd. and Subsidiaries Supplemental Information Portfolio Vintage Data June 30, 2023 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 $ 1,807,238 3.0 % 11,385 4.31 % 75.6 % 65.8 % 6.4 % 14.9 % 43.4 % 2.5 % 416 3.65 % 2015 26,193,656 1,649,738 6.3 9,997 4.19 84.7 75.8 4.5 17.4 39.6 2.6 367 3.67 2016 34,949,319 3,476,870 9.9 19,998 3.89 87.9 79.3 11.6 16.2 42.4 2.5 586 2.93 2017 43,858,322 5,316,345 12.1 31,404 4.27 91.3 70.7 20.4 20.4 37.9 3.5 1,134 3.61 2018 47,508,525 6,113,917 12.9 34,026 4.79 94.6 70.5 25.6 21.7 32.7 4.8 1,456 4.28 2019 63,569,183 13,481,766 21.2 63,599 4.22 87.9 67.6 24.3 18.7 35.6 4.9 1,845 2.90 2020 107,944,065 52,266,774 48.4 198,262 3.19 67.3 55.6 12.7 10.8 45.6 3.6 2,359 1.19 2021 84,218,250 66,928,946 79.5 216,319 3.08 85.7 61.9 15.0 13.9 40.5 7.5 2,799 1.29 2022 63,061,262 58,725,613 93.1 165,953 5.07 97.8 65.0 11.1 12.7 39.7 18.7 1,429 0.86 2023 (through June 30) 26,391,869 25,882,677 98.1 70,747 6.34 98.7 71.9 16.0 11.0 38.4 7.8 89 0.13 Total $ 558,363,302 $ 235,649,884 42.2 821,690 4.12 86.5 63.5 14.4 13.3 40.7 4.3 12,480 1.52 (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 H Essent Group Ltd. and Subsidiaries Supplemental Information Reinsurance Vintage Data June 30, 2023 ($ 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 2018-1 Jan. 2017 - Dec. 2017 $ — $ — $ — $ — $ — $ — $ — $ — $ 1,781 $ — Radnor Re 2019-1 Jan. 2018 - Dec. 2018 6,031,462 1,568,566 473,184 21,467 — 253,643 247,780 9,948 13,447 — Radnor Re 2019-2 Jan. 2015 - Dec. 2016 — — — — — — — — 220 — Radnor Re 2020-1 Jan. 2019 - Aug. 2019 7,496,071 1,939,751 495,889 52,691 — 215,605 214,221 3,497 5,871 — Radnor Re 2021-1 Aug. 2020 - Mar. 2021 35,742,003 9,110,919 557,911 374,172 — 278,956 278,827 2,984 6,178 289,810 Radnor Re 2021-2 Apr. 2021 - Sep. 2021 39,179,542 10,503,842 439,407 384,452 — 279,415 279,297 4,121 8,274 331,024 Radnor Re 2022-1 Oct. 2021 - Jul. 2022 32,744,576 8,818,357 237,868 237,868 — 303,761 303,761 4,306 8,521 218,839 Total $ 121,193,654 $ 31,941,435 $ 2,204,259 $ 1,070,650 $ — $ 1,331,380 $ 1,323,886 $ 24,856 $ 44,292 $ 839,673 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 2018-1 Jan. 2017 - Dec. 2017 $ 5,200,346 $ 1,369,342 $ 165,167 $ 65,983 $ — $ 678,283 $ 421,003 $ 309 $ 664 $ — XOL 2019-1 Jan. 2018 - Dec. 2018 6,031,462 1,568,566 118,650 76,144 — 253,643 247,780 (4 ) 621 1,234 — XOL 2020-1 Jan. 2019 - Dec. 2019 7,496,071 1,939,751 55,102 41,162 — 215,605 214,221 (4 ) 311 628 — XOL 2022-1 Oct. 2021 - Dec. 2022 72,971,240 19,674,482 141,992 141,992 — 507,114 507,114 1,615 3,169 138,395 Total $ 91,699,119 $ 24,552,141 $ 480,911 $ 325,281 $ — $ 1,654,645 $ 1,390,118 $ 2,856 $ 5,695 $ 138,395 (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) First layer retentions shown are ILN retention levels as a result of overlapping coverage within the vintage. 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 (5 ) $ 57,938,827 $ 14,951,010 $ 12,929,459 $ 3,298,284 $ (1,015 ) $ (1,744 ) $ 2,785 $ 5,712 $ 4,138 $ 8,824 $ 198,708 Jan. 2022 - Dec. 2023 20 % 58,669,337 15,850,694 11,733,867 3,170,139 2,388 4,881 1,959 3,938 6,110 12,364 227,761 Jan. 2023 - Dec. 2023 17.5 % 25,838,027 7,133,730 4,521,655 1,248,403 304 332 611 776 1,586 1,962 88,320 Total $ 142,446,191 $ 37,935,434 $ 29,184,981 $ 7,716,826 $ 1,677 $ 3,469 $ 5,355 $ 10,426 $ 11,834 $ 23,150 $ 514,789 (5) Reinsurance coverage on 40% of eligible single premium policies and 20% of all other eligible policies. Exhibit I Essent Group Ltd. and Subsidiaries Supplemental Information Portfolio Geographic Data IIF by State June 30, 2023 March 31, 2023 June 30, 2022 CA 13.1 % 13.2 % 13.2 % FL 10.8 10.4 10.0 TX 10.5 10.5 10.2 CO 4.1 4.2 4.2 AZ 3.7 3.6 3.4 WA 3.4 3.4 3.5 GA 3.3 3.2 3.1 IL 2.9 3.0 3.2 VA 2.9 3.0 3.1 NJ 2.9 2.9 3.1 All Others 42.4 42.6 43.0 Total 100.0 % 100.0 % 100.0 % Gross RIF by State June 30, 2023 March 31, 2023 June 30, 2022 CA 13.0 % 13.0 % 13.0 % FL 11.1 10.7 10.3 TX 10.8 10.8 10.6 CO 4.1 4.1 4.1 AZ 3.8 3.7 3.4 WA 3.4 3.4 3.4 GA 3.4 3.3 3.2 IL 2.8 2.9 3.1 VA 2.8 2.9 3.0 NJ 2.8 2.8 2.9 All Others 42.0 42.4 43.0 Total 100.0 % 100.0 % 100.0 % Exhibit J 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 2023 2022 June 30 March 31 December 31 September 30 June 30 Beginning default inventory 12,773 13,433 12,435 12,707 14,923 Plus: new defaults (A) 6,575 7,015 7,505 6,448 5,495 Less: cures (6,761 ) (7,574 ) (6,425 ) (6,642 ) (7,639 ) Less: claims paid (96 ) (94 ) (73 ) (68 ) (65 ) Less: rescissions and denials, net (11 ) (7 ) (9 ) (10 ) (7 ) Ending default inventory 12,480 12,773 13,433 12,435 12,707 (A) New defaults remaining as of June 30, 2023 4,876 2,343 1,797 1,104 559 Cure rate (1) 26 % 67 % 76 % 83 % 90 % Total amount paid for claims (in thousands) $ 1,890 $ 1,959 $ 1,441 $ 1,261 $ 1,137 Average amount paid per claim (in thousands) $ 20 $ 21 $ 20 $ 19 $ 17 Severity 58 % 59 % 46 % 47 % 50 % Rollforward of Reserve for Losses and LAE Three Months Ended 2023 2022 ($ in thousands) June 30 March 31 December 31 September 30 June 30 Reserve for losses and LAE at beginning of period $ 215,957 $ 216,390 $ 212,392 $ 209,829 $ 292,818 Less: Reinsurance recoverables 16,357 14,618 13,244 13,657 19,335 Net reserve for losses and LAE at beginning of period 199,600 201,772 199,148 196,172 273,483 Add provision for losses and LAE occurring in: Current period 31,377 32,693 36,141 20,144 18,720 Prior years (30,107 ) (32,864 ) (32,012 ) (15,850 ) (94,809 ) Incurred losses and LAE during the period 1,270 (171 ) 4,129 4,294 (76,089 ) Deduct payments for losses and LAE occurring in: Current period 31 — 113 30 80 Prior years 1,909 2,001 1,392 1,288 1,142 Loss and LAE payments during the period 1,940 2,001 1,505 1,318 1,222 Net reserve for losses and LAE at end of period 198,930 199,600 201,772 199,148 196,172 Plus: Reinsurance recoverables 17,958 16,357 14,618 13,244 13,657 Reserve for losses and LAE at end of period $ 216,888 $ 215,957 $ 216,390 $ 212,392 $ 209,829 (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 K Essent Group Ltd. and Subsidiaries Supplemental Information Detail of Reserves by Default Delinquency U.S. Mortgage Insurance Portfolio 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 % December 31, 2022 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 6,154 46 % $ 32,242 16 % $ 411,624 8 % Four to eleven payments 4,684 35 65,071 33 317,417 21 Twelve or more payments 2,474 18 98,291 49 147,247 67 Pending claims 121 1 3,815 2 4,860 78 Total case reserves 13,433 100 % 199,419 100 % $ 881,148 23 % IBNR 14,956 LAE 2,015 Total reserves for losses and LAE $ 216,390 Average reserve per default: Case $ 14.8 Total $ 16.1 Default Rate 1.66 % June 30, 2022 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 4,036 32 % $ 18,653 10 % $ 250,303 7 % Four to eleven payments 4,741 37 59,753 31 304,764 20 Twelve or more payments 3,849 30 111,442 57 236,440 47 Pending claims 81 1 3,568 2 3,574 100 Total case reserves 12,707 100 % 193,416 100 % $ 795,081 24 % IBNR 14,506 LAE 1,907 Total reserves for losses and LAE $ 209,829 Average reserve per default: Case $ 15.2 Total $ 16.5 Default Rate 1.61 % Exhibit L Essent Group Ltd. and Subsidiaries Supplemental Information Investments Available for Sale Investments Available for Sale by Asset Class Asset Class June 30, 2023 December 31, 2022 ($ in thousands) Fair Value Percent Fair Value Percent U.S. Treasury securities $ 643,586 12.8 % $ 556,438 11.7 % U.S. agency securities 9,671 0.2 49,058 1.0 U.S. agency mortgage-backed securities 810,108 16.1 783,743 16.5 Municipal debt securities 600,162 12.0 602,690 12.8 Non-U.S. government securities 50,553 1.0 62,399 1.3 Corporate debt securities 1,349,221 26.9 1,414,321 29.8 Residential and commercial mortgage securities 510,350 10.2 511,824 10.8 Asset-backed securities 634,910 12.6 624,561 13.2 Money market funds 413,533 8.2 136,591 2.9 Total investments available for sale $ 5,022,094 100.0 % $ 4,741,625 100.0 % Investments Available for Sale by Credit Rating Rating (1) June 30, 2023 December 31, 2022 ($ in thousands) Fair Value Percent Fair Value Percent Aaa $ 2,251,533 48.9 % $ 2,122,599 46.2 % Aa1 113,007 2.5 111,262 2.4 Aa2 305,630 6.6 325,241 7.1 Aa3 230,676 5.0 232,500 5.0 A1 401,624 8.7 396,095 8.6 A2 313,849 6.8 410,163 8.9 A3 263,496 5.7 268,928 5.8 Baa1 237,699 5.2 236,793 5.1 Baa2 241,926 5.2 221,308 4.8 Baa3 161,797 3.5 187,117 4.1 Below Baa3 87,324 1.9 93,028 2.0 Total (2) $ 4,608,561 100.0 % $ 4,605,034 100.0 % (1) Based on ratings issued by Moody's, if available. S&P or Fitch rating utilized if Moody's not available. (2) Excludes $413,533 and $136,591 of money market funds at June 30, 2023 and December 31, 2022, respectively. Investments Available for Sale by Duration and Book Yield Effective Duration June 30, 2023 December 31, 2022 ($ in thousands) Fair Value Percent Fair Value Percent < 1 Year $ 1,511,281 30.1 % $ 1,245,839 26.3 % 1 to < 2 Years 545,993 10.9 534,038 11.3 2 to < 3 Years 408,377 8.1 511,701 10.8 3 to < 4 Years 529,277 10.5 525,683 11.1 4 to < 5 Years 395,775 7.9 400,540 8.4 5 or more Years 1,631,391 32.5 1,523,824 32.1 Total investments available for sale $ 5,022,094 100.0 % $ 4,741,625 100.0 % Pre-tax investment income yield: Three months ended 3.46 % 3.03 % Six months ended June 30, 2023 3.42 % Holding company net cash and investments available for sale: ($ in thousands) As of June 30, 2023 $ 739,525 As of December 31, 2022 $ 685,178 Exhibit M Essent Group Ltd. and Subsidiaries Supplemental Information Insurance Company Capital 2023 2022 June 30 March 31 December 31 September 30 June 30 ($ in thousands) U.S. Mortgage Insurance Subsidiaries: Combined statutory capital (1) $ 3,243,086 $ 3,207,102 $ 3,178,151 $ 3,128,681 $ 3,062,438 Combined net risk in force (2) $ 34,019,643 $ 33,038,825 $ 32,265,701 $ 31,736,095 $ 31,221,406 Risk-to-capital ratios: (3) Essent Guaranty, Inc. 10.8:1 10.6:1 10.5:1 10.5:1 10.6:1 Essent Guaranty of PA, Inc. 0.5:1 0.5:1 0.6:1 0.6:1 0.6:1 Combined (4) 10.5:1 10.3:1 10.2:1 10.1:1 10.2:1 Essent Guaranty, Inc. PMIERs Data (5): Available Assets $ 3,245,481 $ 3,226,436 $ 3,191,047 $ 3,147,545 $ 3,120,098 Minimum Required Assets 1,991,741 1,917,769 1,832,363 1,759,182 1,869,524 PMIERs excess Available Assets $ 1,253,740 $ 1,308,667 $ 1,358,684 $ 1,388,363 $ 1,250,574 PMIERs sufficiency ratio (6) 163 % 168 % 174 % 179 % 167 % Essent Reinsurance Ltd.: Stockholder's equity (GAAP basis) $ 1,633,763 $ 1,573,013 $ 1,478,772 $ 1,397,287 $ 1,380,067 Net risk in force (2) $ 21,327,762 $ 20,305,111 $ 19,454,046 $ 18,694,500 $ 17,758,801 (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. View source version on businesswire.com: https://www.businesswire.com/news/home/20230804672391/en/
Media Contact 610.230.0556 media@essentgroup.com Investor Relations Contact Philip Stefano Vice President, Investor Relations 855-809-ESNT ir@essentgroup.com