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

Rhea-AI Summary

Essent Group reported net income of $181.7 million or $1.70 per diluted share for the first quarter of 2024, up from $170.8 million or $1.59 per diluted share in the same period last year. The Board of Directors declared a quarterly cash dividend of $0.28 per common share payable on June 10, 2024. The company highlighted strong credit performance, investment income growth, and the successful integration of the title business. Essent also entered into a quota share reinsurance transaction and received positive ratings from major agencies.

Positive

• Net income increased to $181.7 million or $1.70 per diluted share in Q1 2024.

• Board of Directors declared a quarterly dividend of $0.28 per common share.

• Strong credit performance and investment income growth were noted.

• Successful integration of the title business contributed to growth.

• Entered into a quota share reinsurance transaction for eligible policies.

• Received positive ratings from S&P and Moody's.

Negative

• None.

Insights

Financial Analyst

Essent Group Ltd.'s announcement of increased net income year-over-year from $170.8 million to $181.7 million reflects a sound financial standing. The earnings per share (EPS) growth from $1.59 to $1.70 demonstrates the company's profitability and efficiency in capital utilization. A quarterly dividend declaration is a sign of management's confidence in ongoing operations and their commitment to returning value to shareholders. However, a slight decrease in new insurance written from $12.9 billion to $8.3 billion year-over-year might signal a shrinking market share or a more conservative underwriting approach in response to market conditions. The credit rating upgrades by S&P and Moody's are indicative of a robust financial profile and may lower borrowing costs and facilitate business growth. These factors, combined with a stable insurance in force, provide a mixed yet predominantly positive outlook for the company's future performance.

Insurance Industry Analyst

The quota share reinsurance transaction outlined by Essent Group Ltd. is a strategic move to mitigate risk exposure, which can be seen as a prudent action in managing potential losses from claims. This type of agreement is common in the insurance industry to balance risk distribution. The increase in net investment income by 20% year-over-year indicates shrewd investment strategies, likely contributing to the overall profitability of the firm. Attention should be given to the insurance in force, which remained relatively stable. This metric is important as it represents potential future revenue streams from premiums. However, the decrease in new insurance written may warrant scrutiny from investors as it could impact long-term growth if the trend continues.

Market Research Analyst

Considering the broader economic context in which Essent Group operates, the sound financial results and positive ratings outlook may reflect an industry outperforming in an otherwise uncertain economic climate. Strong performance in mortgage insurance and reinsurance operations, along with the integration of the title business, signals diversification and potential resilience against sector-specific downturns. Nonetheless, Essent's performance should be considered within the context of industry benchmarks and macroeconomic factors such as interest rates and housing market trends, which may have a significant impact on future results.

HAMILTON, Bermuda--(BUSINESS WIRE)-- Essent Group Ltd. (NYSE: ESNT) today reported net income for the quarter ended March 31, 2024 of $181.7 million or $1.70 per diluted share, compared to $170.8 million or $1.59 per diluted share for the quarter ended March 31, 2023.

Essent also announced today that its Board of Directors has declared a quarterly cash dividend of $0.28 per common share. The dividend is payable on June 10, 2024, to shareholders of record on May 31, 2024.

“We are pleased with our financial results in the first quarter, as our high-quality portfolio and consumer resilience have translated to favorable credit performance, and the current rate environment has benefited investment income and persistency,” said Mark A. Casale, Chairman and Chief Executive Officer. “The Essent franchise continues to grow, propelled by the strong performance of our mortgage insurance and reinsurance operations, and integration of the title business.”

Financial Highlights:

• New insurance written for the first quarter of 2024 was $8.3 billion, compared to $8.8 billion in the fourth quarter of 2023 and $12.9 billion in the first quarter of 2023.
• Insurance in force as of March 31, 2024 was $238.5 billion, compared to $239.1 billion as of December 31, 2023 and $231.5 billion as of March 31, 2023.
• Net investment income for the first quarter of 2024 was $52.1 million, up 20% from the first quarter of 2023.
• During the first quarter of 2024, we entered into a quota share reinsurance transaction with a panel of highly rated third-party reinsurers. The quota share agreement covers 15% of all eligible policies written by Essent Guaranty, Inc. in the calendar year 2024.
• On January 8, 2024, S&P Global Ratings raised its long-term financial strength and issuer credit ratings on Essent Guaranty, Inc. and Essent Reinsurance Ltd. to ‘A-’ from ‘BBB+’, with a stable outlook.
• On March 27, 2024, Moody’s Ratings affirmed the A3 insurance financial strength rating of Essent Guaranty, Inc. and raised the outlook to positive from stable.

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, 2023 filed with the Securities and Exchange Commission on February 16, 2024, as subsequently updated through other reports we file with the Securities and Exchange Commission. Any forward-looking information presented herein is made only as of the date of this press release, and we do not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

About the Company:

Essent Group Ltd. (NYSE: ESNT) is a Bermuda-based holding company (collectively with its subsidiaries, “Essent”) 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.

Source: Essent Group Ltd.

Essent Group Ltd. and Subsidiaries
Financial Results and Supplemental Information (Unaudited)
Quarter Ended March 31, 2024
Exhibit A		Condensed Consolidated Statements of Comprehensive Income (Unaudited)
Exhibit B		Condensed Consolidated Balance Sheets (Unaudited)
Exhibit C		Consolidated Historical Quarterly Data
Exhibit D		U.S. Mortgage Insurance Portfolio Historical Quarterly Data
Exhibit E		New Insurance Written - U.S. Mortgage Insurance Portfolio
Exhibit F		Insurance in Force and Risk in Force - U.S. Mortgage Insurance Portfolio
Exhibit G		Other Risk in Force
Exhibit H		U.S. Mortgage Insurance Portfolio Vintage Data
Exhibit I		U.S. Mortgage Insurance Portfolio Reinsurance Vintage Data
Exhibit J		U.S. Mortgage Insurance Portfolio Geographic Data
Exhibit K		Rollforward of Defaults and Reserve for Losses and LAE - U.S. Mortgage Insurance Portfolio
Exhibit L		Detail of Reserves by Default Delinquency - U.S. Mortgage Insurance Portfolio
Exhibit M		Investments Available for Sale
Exhibit N		U.S. Mortgage Insurance Company Capital
Exhibit O		Ratios and Reconciliation of Non-GAAP Financial Measures

					Exhibit A
Essent Group Ltd. and Subsidiaries
Condensed Consolidated Statements of Comprehensive Income (Unaudited)
	Three Months Ended March 31,
(In thousands, except per share amounts)	2024				2023
Revenues:
Direct premiums written	$	268,931			$	239,491
Ceded premiums		(30,391	)			(33,591	)
Net premiums written		238,540				205,900
Decrease in unearned premiums		7,050				5,358
Net premiums earned		245,590				211,258
Net investment income		52,085				43,236
Realized investment gains (losses), net		(1,140	)			(488	)
Income (loss) from other invested assets		(1,915	)			(2,702	)
Other income		3,737				4,942
Total revenues		298,357				256,246
Losses and expenses:
Provision (benefit) for losses and LAE		9,913				(180	)
Other underwriting and operating expenses		57,349				48,195
Premiums retained by agents		9,491				—
Interest expense		7,862				6,936
Total losses and expenses		84,615				54,951
Income before income taxes		213,742				201,295
Income tax expense		32,023				30,468
Net income	$	181,719			$	170,827
Earnings per share:
Basic	$	1.72			$	1.60
Diluted		1.70				1.59
Weighted average shares outstanding:
Basic		105,697				106,943
Diluted		106,770				107,585
Net income	$	181,719			$	170,827
Other comprehensive income (loss):
Change in unrealized appreciation (depreciation) of investments		(21,766	)			58,753
Total other comprehensive income (loss)		(21,766	)			58,753
Comprehensive income	$	159,953			$	229,580

					Exhibit B
Essent Group Ltd. and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)
	March 31,				December 31,
(In thousands, except per share amounts)	2024				2023
Assets
Investments
Fixed maturities available for sale, at fair value	$	4,172,237			$	4,335,008
Short-term investments available for sale, at fair value		1,196,837				928,731
Total investments available for sale		5,369,074				5,263,739
Other invested assets		279,625				277,226
Total investments		5,648,699				5,540,965
Cash		164,255				141,787
Accrued investment income		35,817				35,689
Accounts receivable		68,932				63,266
Deferred policy acquisition costs		8,980				9,139
Property and equipment		43,751				41,304
Prepaid federal income tax		467,183				470,646
Goodwill and intangible assets, net		72,271				72,826
Other assets		55,095				51,051
Total assets	$	6,564,983			$	6,426,673
Liabilities and Stockholders' Equity
Liabilities
Reserve for losses and LAE	$	267,324			$	260,095
Unearned premium reserve		133,235				140,285
Net deferred tax liability		368,955				362,753
Credit facility borrowings, net of deferred costs		422,184				421,920
Other accrued liabilities		147,131				139,070
Total liabilities		1,338,829				1,324,123
Commitments and contingencies
Stockholders' Equity
Common shares, $0.015 par value:
Authorized - 233,333; issued and outstanding - 106,742 shares in 2024 and 106,597 shares in 2023		1,601				1,599
Additional paid-in capital		1,293,424				1,299,869
Accumulated other comprehensive loss		(302,262	)			(280,496	)
Retained earnings		4,233,391				4,081,578
Total stockholders' equity		5,226,154				5,102,550
Total liabilities and stockholders' equity	$	6,564,983			$	6,426,673
Return on average equity (1)		14.1	%			14.6	%
(1) The 2024 return on average equity is calculated by dividing annualized year-to-date 2024 net income by average equity. The 2023 return on average equity is calculated by dividing full year 2023 net income by average equity.

																		Exhibit C
Essent Group Ltd. and Subsidiaries
Supplemental Information
Consolidated Historical Quarterly Data
		2024				2023
Selected Income Statement Data		March 31				December 31				September 30				June 30				March 31
(In thousands, except per share amounts)
Revenues:
Net premiums earned:
U.S. Mortgage Insurance Portfolio		$	212,479			$	211,083			$	209,351			$	195,502			$	196,565
GSE and other risk share			17,826				17,166				16,850				17,727				14,693
Title insurance			15,285				17,365				20,604				—				—
Net premiums earned			245,590				245,614				246,805				213,229				211,258
Net investment income			52,085				50,581				47,072				45,250				43,236
Realized investment (losses) gains, net			(1,140	)			(4,892	)			(235	)			(1,589	)			(488	)
(Loss) income from other invested assets			(1,915	)			(421	)			(3,143	)			(4,852	)			(2,702	)
Other income (loss) (1)			3,737				6,395				5,609				8,090				4,942
Total revenues			298,357				297,277				296,108				260,128				256,246
Losses and expenses:
Provision (benefit) for losses and LAE			9,913				19,640				10,822				1,260				(180	)
Other underwriting and operating expenses			57,349				55,248				54,814				42,174				48,195
Premiums retained by agents			9,491				11,475				13,175				—				—
Interest expense			7,862				7,953				7,854				7,394				6,936
Total losses and expenses			84,615				94,316				86,665				50,828				54,951
Income before income taxes			213,742				202,961				209,443				209,300				201,295
Income tax expense (2)			32,023				27,594				31,484				37,067				30,468
Net income		$	181,719			$	175,367			$	177,959			$	172,233			$	170,827
Earnings per share:
Basic		$	1.72			$	1.66			$	1.68			$	1.62			$	1.60
Diluted			1.70				1.64				1.66				1.61				1.59
Weighted average shares outstanding:
Basic			105,697				105,733				105,979				106,249				106,943
Diluted			106,770				106,823				107,025				107,093				107,585
Book value per share		$	48.96			$	47.87			$	44.98			$	44.24			$	43.18
Return on average equity (annualized)			14.1	%			14.2	%			14.9	%			14.7	%			15.0	%
Credit Facility
Borrowings outstanding		$	425,000			$	425,000			$	425,000			$	425,000			$	425,000
Undrawn committed capacity		$	400,000			$	400,000			$	400,000			$	400,000			$	400,000
Weighted average interest rate (end of period)			7.06	%			7.11	%			7.07	%			6.87	%			6.52	%
Debt-to-capital			7.52	%			7.69	%			8.12	%			8.24	%			8.38	%
(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 March 31, 2024, December 31, 2023, September 30, 2023, June 30, 2023 and March 31, 2023, were ($1,902), $412, ($898), $2,726, and ($368), respectively.
(2) Income tax expense for the quarters ended March 31, 2024, December 31, 2023, September 30, 2023, June 30, 2023 and March 31, 2023 includes ($1,041), ($1,132), ($763), ($888) and ($368), respectively, of discrete tax (benefit) expense associated with realized and unrealized gains and losses. Income tax expense for the quarter ended March 31, 2024 also includes ($616) of excess tax benefits associated with the vesting of common shares and common share units. Income tax expense for the quarter ended December 31, 2023 also includes a $2,731 net benefit associated with the recognition of a deferred tax asset for unrealized losses on the investment portfolios of Essent Group and Essent Re upon the enactment of the Bermuda Corporate Income Tax. Income tax expense for the quarter ended June 30, 2023 also includes $5,295 of net discrete tax expense associated with prior year tax returns.

			Exhibit D
Essent Group Ltd. and Subsidiaries
Supplemental Information
U.S. Mortgage Insurance Portfolio Historical Quarterly Data
			2024				2023
Other Data:			March 31				December 31				September 30				June 30				March 31
($ in thousands)
U.S. Mortgage Insurance Portfolio
New insurance written			$	8,323,544			$	8,769,160			$	12,505,823			$	13,498,080			$	12,893,789
New risk written				2,289,508				2,409,340				3,458,467				3,726,513				3,548,015
Average insurance in force			$	238,595,268			$	239,005,961			$	237,270,093			$	233,484,941			$	228,885,174
Insurance in force (end of period)			$	238,477,402			$	239,078,262			$	238,661,612			$	235,649,884			$	231,537,417
Gross risk in force (end of period) (1)			$	64,247,810			$	64,061,374			$	63,605,057			$	62,403,400			$	60,879,979
Risk in force (end of period)			$	54,686,533			$	54,591,590			$	53,920,308			$	53,290,643			$	51,469,312
Policies in force				815,752				822,012				825,248				821,690				815,751
Weighted average coverage (2)				26.9	%			26.8	%			26.7	%			26.5	%			26.3	%
Annual persistency				86.9	%			86.9	%			86.6	%			85.8	%			84.4	%
Loans in default (count)				13,992				14,819				13,391				12,480				12,773
Percentage of loans in default				1.72	%			1.80	%			1.62	%			1.52	%			1.57	%
U.S. Mortgage Insurance Portfolio premium rate:
Base average premium rate (3)				0.41	%			0.40	%			0.40	%			0.40	%			0.40	%
Single premium cancellations (4)				—	%			—	%			—	%			—	%			—	%
Gross average premium rate				0.41	%			0.40	%			0.40	%			0.40	%			0.40	%
Ceded premiums				(0.05	%)			(0.05	%)			(0.05	%)			(0.07	%)			(0.06	%)
Net average premium rate				0.36	%			0.35	%			0.35	%			0.33	%			0.34	%
(1) Gross risk in force includes risk ceded under third-party reinsurance.
(2) Weighted average coverage is calculated by dividing end of period gross risk in force by end of period insurance in force.
(3) Base average premium rate is calculated by dividing annualized base premiums earned by average insurance in force for the period.
(4) Single premium cancellations is calculated by dividing annualized premiums on the cancellation of non-refundable single premium policies by average insurance in force for the period.

													Exhibit E
Essent Group Ltd. and Subsidiaries
Supplemental Information - U.S. Mortgage Insurance Portfolio
New Insurance Written: Flow
NIW by Credit Score
	Three Months Ended
	March 31, 2024						December 31, 2023						March 31, 2023
($ in thousands)
>=760	$	3,596,600		43.2	%		$	3,708,316		42.3	%		$	4,847,058		37.7	%
740-759		1,410,446		16.9				1,531,800		17.5				2,397,982		18.6
720-739		1,244,648		15.0				1,333,537		15.2				2,204,844		17.1
700-719		1,140,430		13.7				1,256,250		14.3				2,002,892		15.5
680-699		563,419		6.8				581,913		6.6				1,100,815		8.5
<=679		368,001		4.4				357,344		4.1				340,198		2.6
Total	$	8,323,544		100.0	%		$	8,769,160		100.0	%		$	12,893,789		100.0	%
Weighted average credit score		747						747						745
NIW by LTV
	Three Months Ended
	March 31, 2024						December 31, 2023						March 31, 2023
($ in thousands)
85.00% and below	$	559,899		6.7	%		$	642,636		7.3	%		$	963,009		7.5	%
85.01% to 90.00%		1,732,131		20.8				1,871,854		21.3				2,685,828		20.8
90.01% to 95.00%		4,517,655		54.3				4,660,032		53.1				7,430,113		57.6
95.01% and above		1,513,859		18.2				1,594,638		18.3				1,814,839		14.1
Total	$	8,323,544		100.0	%		$	8,769,160		100.0	%		$	12,893,789		100.0	%
Weighted average LTV		93	%					93	%					93	%
NIW by Product
	Three Months Ended
	March 31, 2024						December 31, 2023						March 31, 2023
Single Premium policies				2.0	%					2.5	%					4.1	%
Monthly Premium policies				98.0						97.5						95.9
				100.0	%					100.0	%					100.0	%
NIW by Purchase vs. Refinance
	Three Months Ended
	March 31, 2024						December 31, 2023						March 31, 2023
Purchase				97.4	%					98.7	%					98.6	%
Refinance				2.6						1.3						1.4
				100.0	%					100.0	%					100.0	%

																	Exhibit F
Essent Group Ltd. and Subsidiaries
Supplemental Information
Insurance in Force and Risk in Force - U.S. Mortgage Insurance Portfolio
Portfolio by Credit Score
IIF by FICO score		March 31, 2024						December 31, 2023						March 31, 2023
($ in thousands)
>=760		$	96,712,431		40.6	%		$	97,085,244		40.6	%		$	94,560,292		40.8	%
740-759			41,477,680		17.4				41,490,720		17.4				39,870,193		17.2
720-739			37,342,339		15.7				37,435,781		15.7				35,950,319		15.5
700-719			32,023,895		13.4				31,932,469		13.4				30,103,007		13.0
680-699			19,664,999		8.2				19,780,944		8.3				19,338,187		8.4
<=679			11,256,058		4.7				11,353,104		4.6				11,715,419		5.1
Total		$	238,477,402		100.0	%		$	239,078,262		100.0	%		$	231,537,417		100.0	%
Weighted average credit score			746						746						746
Gross RIF by FICO score		March 31, 2024						December 31, 2023						March 31, 2023
($ in thousands)
>=760		$	25,806,552		40.2	%		$	25,752,549		40.2	%		$	24,613,214		40.4	%
740-759			11,326,253		17.6				11,268,607		17.6				10,612,582		17.4
720-739			10,206,055		15.9				10,179,683		15.9				9,602,368		15.8
700-719			8,757,648		13.6				8,687,001		13.6				8,017,430		13.2
680-699			5,321,802		8.3				5,330,894		8.3				5,126,581		8.4
<=679			2,829,500		4.4				2,842,640		4.4				2,907,804		4.8
Total		$	64,247,810		100.0	%		$	64,061,374		100.0	%		$	60,879,979		100.0	%
Portfolio by LTV
IIF by LTV		March 31, 2024						December 31, 2023						March 31, 2023
($ in thousands)
85.00% and below		$	18,397,395		7.7	%		$	19,869,776		8.3	%		$	23,502,232		10.2	%
85.01% to 90.00%			62,218,749		26.1				62,973,580		26.3				63,478,244		27.3
90.01% to 95.00%			120,666,455		50.6				119,764,184		50.1				112,184,833		48.5
95.01% and above			37,194,803		15.6				36,470,722		15.3				32,372,108		14.0
Total		$	238,477,402		100.0	%		$	239,078,262		100.0	%		$	231,537,417		100.0	%
Weighted average LTV			93	%					93	%					92	%
Gross RIF by LTV		March 31, 2024						December 31, 2023						March 31, 2023
($ in thousands)
85.00% and below		$	2,188,074		3.4	%		$	2,364,232		3.7	%		$	2,793,895		4.6	%
85.01% to 90.00%			15,329,091		23.9				15,494,172		24.2				15,529,427		25.5
90.01% to 95.00%			35,556,840		55.3				35,260,761		55.0				32,929,489		54.1
95.01% and above			11,173,805		17.4				10,942,209		17.1				9,627,168		15.8
Total		$	64,247,810		100.0	%		$	64,061,374		100.0	%		$	60,879,979		100.0	%
Portfolio by Loan Amortization Period
IIF by Loan Amortization Period		March 31, 2024						December 31, 2023						March 31, 2023
($ in thousands)
FRM 30 years and higher		$	232,753,590		97.6	%		$	232,995,380		97.5	%		$	224,230,607		96.8	%
FRM 20-25 years			1,473,431		0.6				1,685,700		0.7				2,364,623		1.0
FRM 15 years			1,359,795		0.6				1,505,759		0.6				2,214,448		1.0
ARM 5 years and higher			2,890,586		1.2				2,891,423		1.2				2,727,739		1.2
Total		$	238,477,402		100.0	%		$	239,078,262		100.0	%		$	231,537,417		100.0	%

																			Exhibit G
Essent Group Ltd. and Subsidiaries
Supplemental Information
Other Risk in Force
			2024				2023
($ in thousands)			March 31				December 31				September 30				June 30				March 31
GSE and other risk share (1):
Risk in Force			$	2,307,267			$	2,244,944			$	2,247,393			$	2,276,702			$	2,098,033
Reserve for losses and LAE			$	32			$	29			$	54			$	55			$	65
Weighted average credit score				750				749				749				749				749
Weighted average LTV				82	%			82	%			82	%			83	%			83	%
(1) GSE and other risk share includes GSE risk share and other reinsurance transactions. Essent Reinsurance Ltd. ("Essent Re") provides insurance or reinsurance relating to the risk in force on loans in reference pools acquired by Freddie Mac and Fannie Mae.

																							Exhibit H
Essent Group Ltd. and Subsidiaries
Supplemental Information
U.S. Mortgage Insurance Portfolio Vintage Data
March 31, 2024
								Insurance in Force
Year	Original Insurance Written ($ in thousands)		Remaining Insurance in Force ($ in thousands)		% Remaining of Original Insurance		Number of Policies in Force	Weighted Average Coupon		% Purchase		>90% LTV		>95% LTV		FICO < 700		FICO >= 760		Incurred Loss Ratio (Inception to Date) (1)		Number of Loans in Default	Percentage of Loans in Default
2010 - 2014	$	60,668,851	$	1,337,665	2.2	%	8,083	4.29	%	70.1	%	57.2	%	7.3	%	13.4	%	45.5	%	2.4	%	318	3.93	%
2015		26,193,656		1,192,019	4.6		7,166	4.25		81.6		70.1		5.3		18.3		39.0		2.3		265	3.70
2016		34,949,319		2,778,784	8.0		16,341	3.91		87.2		80.1		12.9		16.3		41.7		2.1		492	3.01
2017		43,858,322		4,511,284	10.3		27,229	4.28		91.3		73.9		21.5		20.6		37.3		3.2		1,052	3.86
2018		47,508,525		5,331,200	11.2		30,191	4.80		94.9		72.6		26.4		21.8		32.5		4.2		1,297	4.30
2019		63,569,183		11,776,711	18.5		56,634	4.23		88.7		70.3		25.4		19.0		35.3		4.0		1,726	3.05
2020		107,944,065		43,791,803	40.6		170,192	3.20		70.0		58.7		13.6		10.8		45.5		2.9		2,324	1.37
2021		84,218,250		58,766,271	69.8		193,329	3.09		87.5		64.2		15.9		13.8		40.4		6.6		3,172	1.64
2022		63,061,262		55,899,907	88.6		159,736	5.08		97.9		65.6		11.3		12.6		39.6		19.7		2,477	1.55
2023		47,666,852		44,842,520	94.1		124,984	6.65		98.8		72.5		18.3		11.0		39.1		15.9		867	0.69
2024 (through March 31)		8,323,544		8,249,238	99.1		21,867	6.74		97.4		72.6		18.3		11.2		43.0		0.8		2	0.01
Total	$	587,961,829	$	238,477,402	40.6		815,752	4.51		89.4		66.2		15.6		13.0		40.6		4.5		13,992	1.72
(1) Incurred loss ratio is calculated by dividing the sum of case reserves and cumulative amount paid for claims by cumulative net premiums earned.

																										Exhibit I
Essent Group Ltd. and Subsidiaries
Supplemental Information
U.S. Mortgage Insurance Portfolio Reinsurance Vintage Data
March 31, 2024
($ in thousands)
Insurance Linked Notes (1)
																						Earned Premiums Ceded
Deal Name	Vintage		Remaining Insurance in Force		Remaining Risk in Force			Original Reinsurance in Force			Remaining Reinsurance in Force			Losses Ceded to Date			Original First Layer Retention		Remaining First Layer Retention			Year-to-Date				Reduction in PMIERs Minimum Required Assets (3)
Radnor Re 2021-1	Aug. 2020 - Mar. 2021		$	29,772,296	$	7,817,502		$	557,911		$	280,941		$	—		$	278,956	$	278,416		$	2,325			$	203,407
Radnor Re 2021-2	Apr. 2021 - Sep. 2021			34,555,672		9,408,534			439,407			322,709			—			279,415		278,709			3,674				265,684
Radnor Re 2022-1	Oct. 2021 - Jul. 2022			30,751,105		8,334,892			237,868			219,606			—			303,761		302,892			3,917				202,037
Radnor Re 2023-1	Aug. 2022 - Jun. 2023			30,145,794		8,250,148			281,462			281,462			—			281,463		281,463			3,478				266,826
Total			$	125,224,867	$	33,811,076		$	1,516,648		$	1,104,718		$	—		$	1,143,595	$	1,141,480		$	13,394	(5)		$	937,954

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			Year-to-Date			Reduction in PMIERs Minimum Required Assets (3)
XOL 2019-1	Jan. 2018 - Dec. 2018	$	5,274,449	$	1,385,510		$	118,650		$	76,144		$	—		$	253,643	$	245,590		$	620		$	—
XOL 2020-1	Jan. 2019 - Dec. 2019		6,574,279		1,728,344			55,102			35,024			—			215,605		212,934			280			—
XOL 2022-1	Oct. 2021 - Dec. 2022		68,954,857		18,681,548			141,992			141,992			—			507,114		504,904			1,593			138,049
XOL 2023-1	Jan. 2023 - Dec. 2023		39,984,013		11,066,581			36,627			36,627			—			366,270		366,270			434			35,262
Total		$	120,787,598	$	32,861,983		$	352,371		$	289,787		$	—		$	1,342,632	$	1,329,698		$	2,927		$	173,311

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			Year-to-Date				Year-to-Date			Year-to-Date			Reduction in PMIERs Minimum Required Assets (3)
Sep. 2019 - Dec. 2020	(4)		$	48,738,950	$	12,911,516		$	10,961,149		$	2,867,129		$	(181	)		$	2,381		$	4,224		$	171,243
Jan. 2022 - Dec. 2022	20%			55,847,902		15,138,856			11,169,580			3,027,771			1,724				1,905			5,344			228,999
Jan. 2023 - Dec. 2023	17.5%			39,871,067		11,039,038			6,977,437			1,931,832			1,441				1,366			4,310			142,961
Jan. 2024 - Dec. 2024	15%			8,237,311		2,266,932			1,235,597			340,040			—				101			216			23,466
Total			$	152,695,230	$	41,356,342		$	30,343,763		$	8,166,772		$	2,984			$	5,753		$	14,094		$	566,669
(1) Reinsurance provided by unaffiliated special purpose insurers through the issuance of mortgage insurance-linked notes ("ILNs").
(2) Reinsurance provided by panels of reinsurers.
(3) Represents the reduction in Essent Guaranty, Inc.'s Minimum Required Assets based on our interpretation of the PMIERs.
(4) Reinsurance coverage on 40% of eligible single premium policies and 20% of all other eligible policies.
(5) Excludes ($24) of benefit in ceded premium on ILN's retired as of March 31, 2024.

							Exhibit J
Essent Group Ltd. and Subsidiaries
Supplemental Information
U.S. Mortgage Insurance Portfolio Geographic Data
IIF by State
	March 31, 2024			December 31, 2023			March 31, 2023
CA	12.9	%		13.0	%		13.2	%
FL	11.3			11.1			10.4
TX	10.6			10.5			10.5
CO	4.1			4.1			4.2
AZ	3.8			3.7			3.6
GA	3.5			3.4			3.2
WA	3.5			3.5			3.4
NC	2.9			2.9			2.7
VA	2.7			2.8			3.0
IL	2.7			2.8			3.0
All Others	42.0			42.2			42.8
Total	100.0	%		100.0	%		100.0	%
Gross RIF by State
	March 31, 2024			December 31, 2023			March 31, 2023
CA	12.8	%		12.8	%		13.0	%
FL	11.6			11.4			10.7
TX	10.9			10.9			10.8
CO	4.1			4.0			4.1
AZ	3.8			3.8			3.7
GA	3.6			3.4			3.3
WA	3.4			3.5			3.4
NC	2.9			2.9			2.8
VA	2.7			2.7			2.9
IL	2.7			2.7			2.9
All Others	41.5			41.9			42.4
Total	100.0	%		100.0	%		100.0	%

																			Exhibit K
Essent Group Ltd. and Subsidiaries
Supplemental Information
Rollforward of Defaults and Reserve for Losses and LAE
U.S. Mortgage Insurance Portfolio
Rollforward of Insured Loans in Default
		Three Months Ended
			2024				2023
			March 31				December 31				September 30				June 30				March 31
Beginning default inventory				14,819				13,391				12,480				12,773				13,433
Plus: new defaults (A)				8,260				9,007				7,953				6,575				7,015
Less: cures				(8,951	)			(7,418	)			(6,902	)			(6,761	)			(7,574	)
Less: claims paid				(123	)			(148	)			(129	)			(96	)			(94	)
Less: rescissions and denials, net				(13	)			(13	)			(11	)			(11	)			(7	)
Ending default inventory				13,992				14,819				13,391				12,480				12,773
(A) New defaults remaining as of March 31, 2024				5,425				3,139				1,897				1,119				663
Cure rate (1)				34	%			65	%			76	%			83	%			91	%
Total amount paid for claims (in thousands)			$	3,605			$	3,411			$	2,956			$	1,890			$	1,959
Average amount paid per claim (in thousands)			$	29			$	23			$	23			$	20			$	21
Severity				65	%			54	%			66	%			58	%			59	%
Rollforward of Reserve for Losses and LAE
		Three Months Ended
			2024				2023
($ in thousands)			March 31				December 31				September 30				June 30				March 31
Reserve for losses and LAE at beginning of period			$	245,402			$	226,617			$	216,888			$	215,957			$	216,390
Less: Reinsurance recoverables				24,005				20,656				17,958				16,357				14,618
Net reserve for losses and LAE at beginning of period				221,397				205,961				198,930				199,600				201,772
Add provision for losses and LAE occurring in:
Current period			$	39,396			$	38,922			$	35,609			$	31,377			$	32,693
Prior years				(30,062	)			(19,912	)			(25,533	)			(30,107	)			(32,864	)
Incurred losses and LAE during the period				9,334				19,010				10,076				1,270				(171	)
Deduct payments for losses and LAE occurring in:
Current period				1				330				156				31				—
Prior years				3,735				3,244				2,889				1,909				2,001
Loss and LAE payments during the period				3,736				3,574				3,045				1,940				2,001
Net reserve for losses and LAE at end of period				226,995				221,397				205,961				198,930				199,600
Plus: Reinsurance recoverables				26,570				24,005				20,656				17,958				16,357
Reserve for losses and LAE at end of period			$	253,565			$	245,402			$	226,617			$	216,888			$	215,957
(1) The cure rate is calculated by dividing new defaults remaining as of the reporting date by the original number of new defaults reported in the quarterly period and subtracting that percentage from 100%.

										Exhibit L
Essent Group Ltd. and Subsidiaries
Supplemental Information
Detail of Reserves by Default Delinquency
U.S. Mortgage Insurance Portfolio
		March 31, 2024
		Number of Policies in Default		Percentage of Policies in Default		Amount of Reserves		Percentage of Reserves		Defaulted RIF		Reserves as a Percentage of Defaulted RIF
($ in thousands)
Missed Payments:
Three payments or less		6,527		47	%	$	42,354	18	%	$	482,151	9	%
Four to eleven payments		5,440		39			104,123	45			426,513	24
Twelve or more payments		1,883		13			80,025	34			130,816	61
Pending claims		142		1			7,382	3			8,351	88
Total case reserves		13,992		100	%		233,884	100	%	$	1,047,831	22	%
IBNR							17,541
LAE							2,140
Total reserves for losses and LAE						$	253,565
Average reserve per default:
Case						$	16.7
Total						$	18.1
Default Rate		1.72	%
		December 31, 2023
		Number of Policies in Default		Percentage of Policies in Default		Amount of Reserves		Percentage of Reserves		Defaulted RIF		Reserves as a Percentage of Defaulted RIF
($ in thousands)
Missed Payments:
Three payments or less		7,288		49	%	$	44,607	20	%	$	527,419	8	%
Four to eleven payments		5,421		37			97,424	43			417,876	23
Twelve or more payments		1,984		13			78,540	35			132,257	59
Pending claims		126		1			5,550	2			6,302	88
Total case reserves		14,819		100	%		226,121	100	%	$	1,083,854	21	%
IBNR							16,959
LAE							2,322
Total reserves for losses and LAE						$	245,402
Average reserve per default:
Case						$	15.3
Total						$	16.6
Default Rate		1.80	%
		March 31, 2023
		Number of Policies in Default		Percentage of Policies in Default		Amount of Reserves		Percentage of Reserves		Defaulted RIF		Reserves as a Percentage of Defaulted RIF
($ in thousands)
Missed Payments:
Three payments or less		5,366		42	%	$	31,080	16	%	$	366,993	8	%
Four to eleven payments		5,106		40			78,125	39			363,299	22
Twelve or more payments		2,188		17			85,517	43			130,520	66
Pending claims		113		1			4,386	2			5,004	88
Total case reserves		12,773		100	%		199,108	100	%	$	865,816	23	%
IBNR							14,933
LAE							1,916
Total reserves for losses and LAE						$	215,957
Average reserve per default:
Case						$	15.6
Total						$	16.9
Default Rate		1.57	%

												Exhibit M
Essent Group Ltd. and Subsidiaries
Supplemental Information
Investments Available for Sale
Investments Available for Sale by Asset Class
Asset Class		March 31, 2024							December 31, 2023
($ in thousands)		Fair Value				Percent			Fair Value			Percent
U.S. Treasury securities		$	1,036,787			19.3	%		$	996,382		18.9	%
U.S. agency securities			1,573			0.1				7,195		0.1
U.S. agency mortgage-backed securities			787,285			14.7				821,346		15.6
Municipal debt securities			539,678			10.1				547,258		10.5
Non-U.S. government securities			66,395			1.2				67,447		1.3
Corporate debt securities			1,219,160			22.7				1,297,055		24.7
Residential and commercial mortgage securities			506,780			9.4				517,940		9.8
Asset-backed securities			522,352			9.7				564,995		10.7
Money market funds			689,064			12.8				444,121		8.4
Total investments available for sale		$	5,369,074			100.0	%		$	5,263,739		100.0	%
Investments Available for Sale by Credit Rating
Rating (1)		March 31, 2024							December 31, 2023
($ in thousands)		Fair Value				Percent			Fair Value			Percent
Aaa		$	2,523,003			53.9	%		$	2,561,363		53.2	%
Aa1			107,659			2.3				104,474		2.2
Aa2			281,505			6.0				291,501		6.0
Aa3			198,316			4.2				208,882		4.3
A1			368,360			7.9				377,188		7.8
A2			285,058			6.1				329,423		6.8
A3			269,390			5.8				253,081		5.3
Baa1			199,880			4.3				220,901		4.6
Baa2			210,558			4.5				226,449		4.7
Baa3			160,219			3.4				166,121		3.4
Below Baa3			76,062			1.6				80,235		1.7
Total (2)		$	4,680,010			100.0	%		$	4,819,618		100.0	%
(1) Based on ratings issued by Moody's, if available. S&P or Fitch rating utilized if Moody's not available.
(2) Excludes $689,064 and $444,121 of money market funds at March 31, 2024 and December 31, 2023, respectively.
Investments Available for Sale by Duration and Book Yield
Effective Duration		March 31, 2024							December 31, 2023
($ in thousands)		Fair Value				Percent			Fair Value			Percent
< 1 Year		$	2,074,776			38.6	%		$	1,892,074		35.9	%
1 to < 2 Years			359,920			6.7				371,583		7.1
2 to < 3 Years			496,204			9.2				538,775		10.2
3 to < 4 Years			364,968			6.8				402,668		7.6
4 to < 5 Years			422,678			7.9				376,722		7.2
5 or more Years			1,650,528			30.8				1,681,917		32.0
Total investments available for sale		$	5,369,074			100.0	%		$	5,263,739		100.0	%
Pre-tax investment income yield:
Three months ended March 31, 2024			3.67	%

Holding company net cash and investments available for sale:
($ in thousands)
As of March 31, 2024		$	720,419
As of December 31, 2023		$	693,507

																				Exhibit N
Essent Group Ltd. and Subsidiaries
Supplemental Information
U.S. Mortgage Insurance Company Capital
				2024				2023
				March 31				December 31				September 30				June 30				March 31
($ in thousands)
U.S. Mortgage Insurance Subsidiaries:
Combined statutory capital (1)				$	3,453,553			$	3,376,117			$	3,309,522			$	3,243,086			$	3,207,102
Combined net risk in force (2)				$	34,463,082			$	34,549,500			$	34,203,678			$	34,019,643			$	33,038,825
Risk-to-capital ratios: (3)
	Essent Guaranty, Inc.			10.3:1				10.6:1				10.7:1				10.8:1				10.6:1
	Essent Guaranty of PA, Inc.			0.4:1				0.4:1				0.5:1				0.5:1				0.5:1
	Combined (4)			10.0:1				10.2:1				10.3:1				10.5:1				10.3:1
Essent Guaranty, Inc. PMIERs Data (5):
	Available Assets			$	3,464,119			$	3,379,936			$	3,318,179			$	3,245,481			$	3,226,436
	Minimum Required Assets				1,999,928				1,985,545				1,910,659				1,991,741				1,917,769
	PMIERs excess Available Assets			$	1,464,191			$	1,394,391			$	1,407,520			$	1,253,740			$	1,308,667
	PMIERs sufficiency ratio (6)				173	%			170	%			174	%			163	%			168	%
Essent Reinsurance Ltd.:
Stockholder's equity (GAAP basis)				$	1,793,005			$	1,758,665			$	1,684,122			$	1,633,763			$	1,573,013
Net risk in force (2)				$	22,271,316			$	22,043,926			$	21,739,419			$	21,327,762			$	20,305,111
(1) Combined statutory capital equals the sum of statutory capital of Essent Guaranty, Inc. plus Essent Guaranty of PA, Inc., after eliminating the impact of intercompany transactions. Statutory capital is computed based on accounting practices prescribed or permitted by the Pennsylvania Insurance Department and the National Association of Insurance Commissioners Accounting Practices and Procedures Manual.
(2) Net risk in force represents total risk in force, net of reinsurance ceded and net of exposures on policies for which loss reserves have been established.
(3) The risk-to-capital ratio is calculated as the ratio of net risk in force to statutory capital.
(4) The combined risk-to-capital ratio equals the sum of the net risk in force of Essent Guaranty, Inc. and Essent Guaranty of PA, Inc. divided by the combined statutory capital.
(5) Data is based on our interpretation of the PMIERs as of the dates indicated.
(6) PMIERs sufficiency ratio is calculated by dividing Available Assets by Minimum Required Assets.

																Exhibit O
Essent Group Ltd. and Subsidiaries
Supplemental Information
Ratios and Reconciliation of Non-GAAP Financial Measures
	2024			2023
	March 31			December 31				September 30				June 30				March 31
Loss Ratio (1)	4.0	%			7.9	%			4.4	%			0.6	%		(0.1	)%
Expense Ratio (2)	27.1	%			27.0	%			27.3	%			19.8	%		22.8	%
Combined Ratio	31.1	%			34.9	%			31.7	%			20.4	%		22.7	%
Underwriting Margin (3)	68.9	%			65.1	%			68.3	%			79.6	%		77.3	%
We believe that loss, expense and combined ratios are important measures of our financial performance. As a result of the July 1, 2023 acquisition of Agents National Title and Boston National Title (collectively "Title"), the consolidated loss, expense and combined ratios ("Consolidated Ratios") for the three months ended March 31, 2024 lack comparability with periods prior to the acquisition. In order to provide investors with more comparative information to prior periods, Essent has prepared the table below to reconcile the Consolidated Ratios to ratios excluding title, as shown below. Ratios excluding title are financial measures that are not calculated under standards or rules that comprise accounting principles generally accepted in the United States (GAAP) and are referred to as non-GAAP measures. Ratios excluding title are measures used to monitor our results and should not be viewed as a substitute for those measures determined in accordance with GAAP.   The following table sets forth the reconciliation of the loss, expense and combined ratios excluding title to the most comparable GAAP amount for the three months ended March 31, 2024, in accordance with Regulation G:
				Three Months Ended March 31, 2024
				Consolidated				Title				Excluding Title
($ in thousands)
Revenues:
Net premiums earned				$	245,590			$	15,285			$	230,305
Net investment income					52,085				751				51,334
Realized investment losses, net					(1,140	)			—				(1,140	)
(Loss) income from other invested assets					(1,915	)			—				(1,915	)
Settlement services (4)					1,424				1,424				—
Other income					2,313				408				1,905
Total revenues					298,357				17,868				280,489
Losses and expenses:
Provision (benefit) for losses and LAE					9,913				576				9,337
Other underwriting and operating expenses					57,349				11,810				45,539
Premiums retained by agents					9,491				9,491				—
Interest expense					7,862				—				7,862
Total losses and expenses					84,615				21,877				62,738
Loss ratio (1)					4.0	%			3.4	%			4.1	%
Expense ratio (2)					27.1	%			127.5	%			19.8	%
Combined ratio					31.1	%			130.9	%			23.9	%
Underwriting Margin (3)					68.9	%			(30.9	%)			76.1	%
(1) Loss ratio is calculated by dividing the provision for losses and LAE by the sum of net premiums earned and settlement services revenue, if applicable.
(2) Expense ratio is calculated by dividing the sum of other underwriting and operating expenses and premiums retained by agents by the sum of net premiums earned and settlement services revenue, if applicable.
(3) Calculated as the inverse of the combined ratio.
(4) Settlement services revenue is included in "Other income" within Exhibit A and Exhibit C.

 

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Media Contact

610.230.0556

media@essentgroup.com

Investor Relations Contact

Philip Stefano

Vice President, Investor Relations

855-809-ESNT

ir@essentgroup.com

Source: Essent Group Ltd.

FAQ

What was Essent Group 's net income for the first quarter of 2024?

Essent Group 's net income for Q1 2024 was $181.7 million or $1.70 per diluted share.

When is Essent Group 's quarterly cash dividend payable?

The quarterly cash dividend of $0.28 per common share is payable on June 10, 2024.

What was the new insurance written for the first quarter of 2024?

New insurance written for Q1 2024 was $8.3 billion.

Which third-party reinsurers were involved in the quota share reinsurance transaction with Essent Group ?

A panel of highly rated third-party reinsurers was involved in the quota share reinsurance transaction.

What were the upgraded ratings from S&P Global Ratings for Essent Guaranty, Inc. and Essent Reinsurance ?

S&P Global Ratings raised the long-term financial strength and issuer credit ratings on Essent Guaranty, Inc. and Essent Reinsurance to 'A-' from 'BBB+'.