Essent Group Ltd. Announces Second Quarter 2023 Results and Declares Quarterly Dividend

8/4/23 6:30:00 AM ET

Property-Casualty Insurers

Finance

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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.

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Date	Price Target	Rating	Analyst
10/7/2025	$65.00	Overweight → Neutral	Analyst
7/7/2025	$67.00	Outperform → Mkt Perform	Keefe Bruyette
4/8/2025	$60.00	Neutral → Overweight	Analyst
1/6/2025	$69.00 → $58.00	Overweight → Equal Weight	Barclays
8/5/2024	$65.00 → $70.00	Mkt Perform → Outperform	Keefe Bruyette
4/3/2024	$58.00 → $61.00	Overweight → Neutral	JP Morgan
12/6/2023	$54.00	Neutral	UBS
11/15/2023	$60.00	Overweight	Barclays

Essent Group Ltd. Announces Second Quarter 2023 Results and Declares Quarterly Dividend

Crush Q1 2026 with the Best AI Superconnector

Recent Analyst Ratings for
$ESNT

$ESNT
SEC Filings

SEC Form 10-K filed by Essent Group Ltd.

Amendment: SEC Form SCHEDULE 13G/A filed by Essent Group Ltd.

Essent Group Ltd. filed SEC Form 8-K: Other Events, Financial Statements and Exhibits

$ESNT
Press Releases

Essent Group Ltd. Announces Martin P. Connor Has Joined Board of Directors

Essent Group Ltd. Announces Fourth Quarter & Full Year 2025 Results and Increases Quarterly Dividend

Essent Group Ltd. Schedules Fourth Quarter Earnings Conference Call for February 13, 2026

$ESNT
Analyst Ratings

Essent Group downgraded by Analyst with a new price target

Essent Group downgraded by Keefe Bruyette with a new price target

Essent Group upgraded by Analyst with a new price target

$ESNT
Insider Trading

SEC Form 3 filed by new insider Connor Martin P.

SVP and Chief Risk Officer Bhasin Vijay was granted 13,739 shares and returned 724 shares to the company, increasing direct ownership by 7% to 209,937 units (SEC Form 4)

Pres., Essent Guaranty, Inc. Curran Christopher G was granted 19,845 shares and returned 1,045 shares to the company, increasing direct ownership by 6% to 308,262 units (SEC Form 4)

$ESNT
Leadership Updates

Essent Group Ltd. Announces the Promotion of David B. Weinstock to Chief Financial Officer

Essent Announces the Promotion of Christopher G. Curran to President of Essent Guaranty, Inc.

$ESNT
Financials

Essent Group Ltd. Announces Fourth Quarter & Full Year 2025 Results and Increases Quarterly Dividend

Essent Group Ltd. Schedules Fourth Quarter Earnings Conference Call for February 13, 2026

Essent Group Ltd. Announces Third Quarter 2025 Results and Declares Quarterly Dividend

$ESNT
Large Ownership Changes

SEC Form SC 13G/A filed by Essent Group Ltd. (Amendment)

SEC Form SC 13G/A filed by Essent Group Ltd. (Amendment)

SEC Form SC 13G/A filed by Essent Group Ltd. (Amendment)

Essent Group Ltd. Announces Second Quarter 2023 Results and Declares Quarterly Dividend

Crush Q1 2026 with the Best AI Superconnector

Recent Analyst Ratings for $ESNT

$ESNT SEC Filings

SEC Form 10-K filed by Essent Group Ltd.

Amendment: SEC Form SCHEDULE 13G/A filed by Essent Group Ltd.

Essent Group Ltd. filed SEC Form 8-K: Other Events, Financial Statements and Exhibits

$ESNT Press Releases

Essent Group Ltd. Announces Martin P. Connor Has Joined Board of Directors

Essent Group Ltd. Announces Fourth Quarter & Full Year 2025 Results and Increases Quarterly Dividend

Essent Group Ltd. Schedules Fourth Quarter Earnings Conference Call for February 13, 2026

$ESNT Analyst Ratings

Essent Group downgraded by Analyst with a new price target

Essent Group downgraded by Keefe Bruyette with a new price target

Essent Group upgraded by Analyst with a new price target

$ESNT Insider Trading

SEC Form 3 filed by new insider Connor Martin P.

SVP and Chief Risk Officer Bhasin Vijay was granted 13,739 shares and returned 724 shares to the company, increasing direct ownership by 7% to 209,937 units (SEC Form 4)

Pres., Essent Guaranty, Inc. Curran Christopher G was granted 19,845 shares and returned 1,045 shares to the company, increasing direct ownership by 6% to 308,262 units (SEC Form 4)

$ESNT Leadership Updates

Essent Group Ltd. Announces the Promotion of David B. Weinstock to Chief Financial Officer

Essent Announces the Promotion of Christopher G. Curran to President of Essent Guaranty, Inc.

$ESNT Financials

Essent Group Ltd. Announces Fourth Quarter & Full Year 2025 Results and Increases Quarterly Dividend

Essent Group Ltd. Schedules Fourth Quarter Earnings Conference Call for February 13, 2026

Essent Group Ltd. Announces Third Quarter 2025 Results and Declares Quarterly Dividend

$ESNT Large Ownership Changes

SEC Form SC 13G/A filed by Essent Group Ltd. (Amendment)

SEC Form SC 13G/A filed by Essent Group Ltd. (Amendment)

SEC Form SC 13G/A filed by Essent Group Ltd. (Amendment)

Recent Analyst Ratings for
$ESNT

$ESNT
SEC Filings

$ESNT
Press Releases

$ESNT
Analyst Ratings

$ESNT
Insider Trading

$ESNT
Leadership Updates

$ESNT
Financials

$ESNT
Large Ownership Changes