Essent Group Ltd. Announces Fourth Quarter & Full Year 2022 Results and Increases Quarterly Dividend

Rhea-AI Summary

Essent Group Ltd. (NYSE: ESNT) reported a net income of $147.4 million or $1.37 per diluted share for Q4 2022, down from $181.0 million or $1.64 per diluted share in Q4 2021. Full year net income reached $831.4 million or $7.72 per diluted share, up from $681.8 million or $6.11 per diluted share in 2021. The company declared a quarterly cash dividend of $0.25 per share, payable on March 20, 2023. New insurance written for Q4 was $13.0 billion, compared to $17.1 billion in Q3 2022. The combined ratio rose to 24.6% in Q4 2022 from 17.4% in Q4 2021.

Positive

• Full year net income increased to $831.4 million in 2022 from $681.8 million in 2021.
• Quarterly dividend increased to $0.25 per share, payable March 20, 2023.
• Insurance in force as of December 31, 2022, reached $227.1 billion, up from $207.2 billion year-over-year.

Negative

• Q4 net income of $147.4 million declined compared to $181.0 million in Q4 2021.
• New insurance written decreased to $13.0 billion in Q4 2022 from $16.4 billion in Q4 2021.
• Combined ratio increased to 24.6% in Q4 2022 from 17.4% in Q4 2021.

HAMILTON, Bermuda--(BUSINESS WIRE)-- Essent Group Ltd. (NYSE: ESNT) today reported net income for the quarter ended December 31, 2022 of $147.4 million or $1.37 per diluted share, compared to $181.0 million or $1.64 per diluted share for the quarter ended December 31, 2021. For the full year 2022, net income was $831.4 million or $7.72 per diluted share, compared to $681.8 million or $6.11 per diluted share for 2021.

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 March 20, 2023, to shareholders of record on March 10, 2023.

“We are pleased with our fourth quarter and full year 2022 financial results, which reflect our continued focus on generating high-quality earnings and solid returns,” said Mark A. Casale, Chairman and Chief Executive Officer. “Our results reflect our focus on optimizing unit economics along with continued favorable credit performance. We remain committed to taking a measured approach to capital management. In connection with this, we are pleased to announce that our Board has approved an increase in our quarterly dividend to $0.25 per share.”

Financial Highlights:

• New insurance written for the fourth quarter of 2022 was $13.0 billion, compared to $17.1 billion in the third quarter of 2022 and $16.4 billion in the fourth quarter of 2021.
• Insurance in force as of December 31, 2022 was $227.1 billion, compared to $222.5 billion as of September 30, 2022 and $207.2 billion as of December 31, 2021.
• The combined ratio for the fourth quarter was 24.6%, compared to 22.3% in the third quarter of 2022 and 17.4% in the fourth quarter of 2021.
• During the fourth quarter of 2022, we entered into a quota share reinsurance transaction with a panel of highly rated third-party reinsurers. The quota share agreement covers 17.5% of all eligible policies written by Essent Guaranty, Inc. in the calendar year 2023.
• Last week, Essent US Holdings entered into an agreement to acquire the title insurance operations from a subsidiary of Finance of America Companies for $100 million.

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: the impact of COVID-19 and related economic conditions; 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); 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, 2021 filed with the Securities and Exchange Commission on February 16, 2022, 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, through its wholly-owned subsidiary, Essent Guaranty, Inc., offers private mortgage insurance for single-family mortgage loans in the United States. Essent provides private capital to mitigate mortgage credit risk, allowing lenders to make additional mortgage financing available to prospective homeowners. Headquartered in Radnor, Pennsylvania, Essent Guaranty, Inc. is licensed to write mortgage insurance in all 50 states and the District of Columbia, and is approved by Fannie Mae and Freddie Mac. Essent also offers mortgage-related insurance, reinsurance and advisory services through its Bermuda-based subsidiary, Essent Reinsurance Ltd. Essent is committed to supporting environmental, social and governance (“ESG”) initiatives that are relevant to the company and align with the companywide dedication to responsible corporate citizenship that positively impacts the community and people served. 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 and Year Ended December 31, 2022
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 December 31,								Year Ended December 31,
(In thousands, except per share amounts)	2022				2021				2022				2021
Revenues:
Direct premiums written	$	235,015			$	224,972			$	927,702			$	918,406
Ceded premiums		(34,289	)			(26,476	)			(107,673	)			(110,914	)
Net premiums written		200,726				198,496				820,029				807,492
Decrease in unearned premiums		6,526				18,825				22,498				65,051
Net premiums earned		207,252				217,321				842,527				872,543
Net investment income		37,796				23,661				124,409				88,765
Realized investment (losses) gains, net		(5,524	)			(191	)			(13,172	)			418
Income (loss) from other invested assets		(7,599	)			14,997				28,676				56,386
Other income		(1,888	)			1,128				18,384				10,398
Total revenues		230,037				256,916				1,000,824				1,028,510
Losses and expenses:
(Benefit) provision for losses and LAE		4,101				(3,433	)			(174,704	)			31,057
Other underwriting and operating expenses		46,895				41,232				171,733				166,857
Interest expense		6,045				2,095				15,608				8,282
Total losses and expenses		57,041				39,894				12,637				206,196
Income before income taxes		172,996				217,022				988,187				822,314
Income tax expense		25,630				36,035				156,834				140,531
Net income	$	147,366			$	180,987			$	831,353			$	681,783
Earnings per share:
Basic	$	1.38			$	1.65			$	7.75			$	6.13
Diluted		1.37				1.64				7.72				6.11
Weighted average shares outstanding:
Basic		106,881				109,550				107,205				111,164
Diluted		107,419				110,028				107,653				111,555
Net income	$	147,366			$	180,987			$	831,353			$	681,783
Other comprehensive (loss) income:
Change in unrealized (depreciation) appreciation of investments		40,787				(27,807	)			(433,497	)			(87,567	)
Total other comprehensive (loss) income		40,787				(27,807	)			(433,497	)			(87,567	)
Comprehensive income	$	188,153			$	153,180			$	397,856			$	594,216
Loss ratio		2.0	%			(1.6	%)			(20.7	%)			3.6	%
Expense ratio		22.6				19.0				20.4				19.1
Combined ratio		24.6	%			17.4	%			(0.4	%)			22.7	%

					Exhibit B
Essent Group Ltd. and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)
	December 31,				December 31,
(In thousands, except per share amounts)	2022				2021
Assets
Investments
Fixed maturities available for sale, at fair value	$	4,489,598			$	4,649,800
Short-term investments available for sale, at fair value		252,027				313,087
Total investments available for sale		4,741,625				4,962,887
Other invested assets		257,941				170,472
Total investments		4,999,566				5,133,359
Cash		81,240				81,491
Accrued investment income		33,162				26,546
Accounts receivable		57,399				46,157
Deferred policy acquisition costs		9,910				12,178
Property and equipment		19,571				11,921
Prepaid federal income tax		418,460				360,810
Other assets		104,489				49,712
Total assets	$	5,723,797			$	5,722,174
Liabilities and Stockholders' Equity
Liabilities
Reserve for losses and LAE	$	216,464			$	407,445
Unearned premium reserve		162,887				185,385
Net deferred tax liability		356,810				373,654
Credit facility borrowings, net of deferred costs		420,864				419,823
Other accrued liabilities		104,463				99,753
Total liabilities		1,261,488				1,486,060
Commitments and contingencies
Stockholders' Equity
Common shares, $0.015 par value:
Authorized - 233,333; issued and outstanding - 107,683 shares in 2022 and 109,377 shares in 2021		1,615				1,641
Additional paid-in capital		1,350,377				1,428,952
Accumulated other comprehensive income (loss)		(382,790	)			50,707
Retained earnings		3,493,107				2,754,814
Total stockholders' equity		4,462,309				4,236,114
Total liabilities and stockholders' equity	$	5,723,797			$	5,722,174
Return on average equity		19.1	%			16.8	%

																		Exhibit C
Essent Group Ltd. and Subsidiaries
Supplemental Information
Historical Quarterly Data
		2022																2021
Selected Income Statement Data		December 31				September 30				June 30				March 31				December 31
(In thousands, except per share amounts)
Revenues:
Net premiums earned:
U.S. Mortgage Insurance Portfolio		$	192,670			$	194,272			$	198,891			$	203,312			$	205,877
GSE and other risk share			14,582				13,662				13,120				12,018				11,444
Net premiums earned			207,252				207,934				212,011				215,330				217,321
Net investment income			37,796				32,594				29,339				24,680				23,661
Realized investment (losses) gains, net			(5,524	)			175				(471	)			(7,352	)			(191	)
Income (loss) from other invested assets			(7,599	)			9,617				1,953				24,705				14,997
Other income (loss) (1)			(1,888	)			11,447				1,577				7,248				1,128
Total revenues			230,037				261,767				244,409				264,611				256,916
Losses and expenses:
(Benefit) provision for losses and LAE			4,101				4,252				(76,199	)			(106,858	)			(3,433	)
Other underwriting and operating expenses			46,895				42,144				41,898				40,796				41,232
Interest expense			6,045				4,450				2,887				2,226				2,095
Total losses and expenses			57,041				50,846				(31,414	)			(63,836	)			39,894
Income before income taxes			172,996				210,921				275,823				328,447				217,022
Income tax expense (2)			25,630				32,870				44,054				54,280				36,035
Net income		$	147,366			$	178,051			$	231,769			$	274,167			$	180,987
Earnings per share:
Basic		$	1.38			$	1.67			$	2.17			$	2.53			$	1.65
Diluted			1.37				1.66				2.16				2.52				1.64
Weighted average shares outstanding:
Basic			106,881				106,870				106,921				108,166				109,550
Diluted			107,419				107,337				107,283				108,590				110,028
Book value per share		$	41.44			$	39.87			$	39.67			$	38.98			$	38.73
Return on average equity (annualized)			13.5	%			16.6	%			21.8	%			26.0	%			17.2	%
Other Data:
Loss ratio (3)			2.0	%			2.0	%			(35.9	%)			(49.6	%)			(1.6	%)
Expense ratio (4)			22.6				20.3				19.8				18.9				19.0
Combined ratio			24.6	%			22.3	%			(16.2	%)			(30.7	%)			17.4	%
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)			6.02	%			4.39	%			2.92	%			1.99	%			1.79	%
Debt-to-capital			8.70	%			9.01	%			9.05	%			9.16	%			9.12	%
(1) For each of the three month periods noted, Other income includes net favorable (unfavorable) changes in the fair value of embedded derivatives associated with certain of our third-party reinsurance agreements as follows: December 31, 2022: ($6,515); September 30, 2022: $5,177; June 30, 2022: ($5,549); March 31, 2022: $4,365; December 31, 2021: ($2,931).
(2) Income tax expense for the quarter ended December 31, 2021 includes $2,473 of discrete tax expense associated with an increase in the estimate of our beginning of the year deferred state income tax liability. Income tax expense for the quarters ended December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022 and December 31, 2021 includes ($4,122), $2,925, ($299), $7,002 and $1,759, respectively, of discrete tax (benefit) expense associated with realized and unrealized gains and losses.
(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
		2022																2021
Other Data, continued:		December 31				September 30				June 30				March 31				December 31
($ in thousands)
U.S. Mortgage Insurance Portfolio
Flow:
New insurance written		$	13,011,432			$	17,112,017			$	20,096,135			$	12,841,482			$	16,379,082
New risk written			3,522,726				4,570,699				5,442,115				3,438,016				4,331,531
Bulk:
New insurance written		$	—			$	—			$	196			$	—			$	416
New risk written			—				—				29				—				41
Total:
New insurance written		$	13,011,432			$	17,112,017			$	20,096,331			$	12,841,482			$	16,379,498
New risk written		$	3,522,726			$	4,570,669			$	5,442,144			$	3,438,016			$	4,331,572
Average insurance in force		$	224,840,675			$	219,280,350			$	210,896,297			$	206,631,135			$	207,388,906
Insurance in force (end of period)		$	227,062,055			$	222,542,569			$	215,896,531			$	206,842,996			$	207,190,544
Gross risk in force (end of period) (5)		$	59,276,489			$	57,743,091			$	55,678,063			$	52,847,985			$	52,554,246
Risk in force (end of period)		$	49,903,626			$	48,690,571			$	47,289,910			$	45,261,164			$	45,273,383
Policies in force			808,596				800,745				789,652				774,002				785,119
Weighted average coverage (6)			26.1	%			25.9	%			25.8	%			25.5	%			25.4	%
Annual persistency			82.1	%			77.9	%			73.4	%			69.1	%			65.4	%
Loans in default (count)			13,433				12,435				12,707				14,923				16,963
Percentage of loans in default			1.66	%			1.55	%			1.61	%			1.93	%			2.16	%
U.S. Mortgage Insurance Portfolio premium rate:
Base average premium rate (7)			0.40	%			0.40	%			0.41	%			0.41	%			0.42	%
Single premium cancellations (8)			—	%			0.01	%			0.01	%			0.02	%			0.03	%
Gross average premium rate			0.40	%			0.41	%			0.42	%			0.43	%			0.45	%
Ceded premiums			(0.06	%)			(0.06	%)			(0.04	%)			(0.04	%)			(0.05	%)
Net average premium rate			0.34	%			0.35	%			0.38	%			0.39	%			0.40	%
(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												Year Ended
	December 31, 2022						December 31, 2021						December 31, 2022						December 31, 2021
($ in thousands)
>=760	$	4,761,917		36.6	%		$	6,643,740		40.6	%		$	25,704,025		40.8	%		$	34,422,627		40.9	%
740-759		2,428,164		18.7				2,833,379		17.3				10,927,903		17.3				13,691,394		16.3
720-739		2,301,392		17.7				2,472,738		15.1				10,186,558		16.2				12,789,715		15.2
700-719		1,919,146		14.6				2,170,829		13.2				8,371,867		13.2				11,499,406		13.6
680-699		1,138,743		8.8				1,504,268		9.2				5,548,687		8.8				7,359,569		8.7
<=679		462,070		3.6				754,128		4.6				2,322,026		3.7				4,455,123		5.3
Total	$	13,011,432		100.0	%		$	16,379,082		100.0	%		$	63,061,066		100.0	%		$	84,217,834		100.0	%
Weighted average credit score		744						745						746						745
NIW by LTV
	Three Months Ended												Year Ended
	December 31, 2022						December 31, 2021						December 31, 2022						December 31, 2021
($ in thousands)
85.00% and below	$	1,121,853		8.6	%		$	1,799,336		11.0	%		$	5,678,058		9.0	%		$	11,460,273		13.6	%
85.01% to 90.00%		3,075,304		23.6				4,372,552		26.7				16,732,649		26.5				23,565,227		28.0
90.01% to 95.00%		7,464,333		57.4				7,722,842		47.1				33,925,998		53.8				37,813,167		44.9
95.01% and above		1,349,942		10.4				2,484,352		15.2				6,724,361		10.7				11,379,167		13.5
Total	$	13,011,432		100.0	%		$	16,379,082		100.0	%		$	63,061,066		100.0	%		$	84,217,834		100.0	%
Weighted average LTV		93	%					92	%					93	%					92	%
NIW by Product
	Three Months Ended												Year Ended
	December 31, 2022						December 31, 2021						December 31, 2022						December 31, 2021
Single Premium policies				4.3	%					2.7	%					5.6	%					3.8	%
Monthly Premium policies				95.7						97.3						94.4						96.2
				100.0	%					100.0	%					100.0	%					100.0	%
NIW by Purchase vs. Refinance
	Three Months Ended												Year Ended
	December 31, 2022						December 31, 2021						December 31, 2022						December 31, 2021
Purchase				98.9	%					92.1	%					97.6	%					82.1	%
Refinance				1.1						7.9						2.4						17.9
				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		December 31, 2022						September 30, 2022						December 31, 2021
($ in thousands)
>=760		$	93,389,066		41.1	%		$	92,309,692		41.5	%		$	85,501,113		41.3	%
740-759			38,842,311		17.2				37,821,201		17.0				35,111,019		17.0
720-739			34,981,632		15.4				33,910,646		15.2				31,158,325		15.0
700-719			29,146,543		12.8				28,263,518		12.7				26,105,790		12.6
680-699			18,859,824		8.3				18,351,570		8.2				16,819,629		8.1
<=679			11,842,679		5.2				11,885,942		5.4				12,494,668		6.0
Total		$	227,062,055		100.0	%		$	222,542,569		100.0	%		$	207,190,544		100.0	%
Weighted average credit score			746						746						745
Gross RIF by FICO score		December 31, 2022						September 30, 2022						December 31, 2021
($ in thousands)
>=760		$	24,152,726		40.8	%		$	23,743,335		41.1	%		$	21,488,011		40.9	%
740-759			10,255,195		17.3				9,920,331		17.2				8,992,181		17.1
720-739			9,276,750		15.6				8,934,327		15.5				8,029,952		15.3
700-719			7,696,965		13.0				7,412,542		12.8				6,693,045		12.7
680-699			4,963,470		8.4				4,801,986		8.3				4,299,245		8.2
<=679			2,931,383		4.9				2,930,570		5.1				3,051,812		5.8
Total		$	59,276,489		100.0	%		$	57,743,091		100.0	%		$	52,554,246		100.0	%
Portfolio by LTV
IIF by LTV		December 31, 2022						September 30, 2022						December 31, 2021
($ in thousands)
85.00% and below		$	24,454,468		10.8	%		$	25,121,995		11.3	%		$	27,362,267		13.2	%
85.01% to 90.00%			63,436,445		27.8				62,963,331		28.3				59,567,378		28.7
90.01% to 95.00%			107,932,064		47.6				103,794,020		46.6				91,350,909		44.1
95.01% and above			31,239,078		13.8				30,663,223		13.8				28,909,990		14.0
Total		$	227,062,055		100.0	%		$	222,542,569		100.0	%		$	207,190,544		100.0	%
Weighted average LTV			92	%					92	%					92	%
Gross RIF by LTV		December 31, 2022						September 30, 2022						December 31, 2021
($ in thousands)
85.00% and below		$	2,903,877		4.9	%		$	2,975,898		5.2	%		$	3,200,124		6.1	%
85.01% to 90.00%			15,477,031		26.1				15,317,449		26.5				14,366,450		27.3
90.01% to 95.00%			31,642,669		53.4				30,388,328		52.6				26,592,162		50.6
95.01% and above			9,252,912		15.6				9,061,416		15.7				8,395,510		16.0
Total		$	59,276,489		100.0	%		$	57,743,091		100.0	%		$	52,554,246		100.0	%
Portfolio by Loan Amortization Period
IIF by Loan Amortization Period		December 31, 2022						September 30, 2022						December 31, 2021
($ in thousands)
FRM 30 years and higher		$	219,416,408		96.7	%		$	214,688,363		96.5	%		$	198,243,758		95.7	%
FRM 20-25 years			2,601,108		1.1				2,859,734		1.3				3,658,366		1.8
FRM 15 years			2,552,931		1.1				2,903,355		1.3				3,996,684		1.9
ARM 5 years and higher			2,491,608		1.1				2,091,117		0.9				1,291,736		0.6
Total		$	227,062,055		100.0	%		$	222,542,569		100.0	%		$	207,190,544		100.0	%

																		Exhibit F
Essent Group Ltd. and Subsidiaries
Supplemental Information
Other Risk in Force
		2022																2021
($ in thousands)		December 31				September 30				June 30				March 31				December 31
GSE and other risk share (1):
Risk in Force		$	2,030,571			$	2,026,895			$	1,898,364			$	1,888,437			$	1,788,918
Reserve for losses and LAE		$	74			$	102			$	144			$	254			$	1,349
Weighted average credit score			749				748				748				748				748
Weighted average LTV			83	%			84	%			84	%			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
December 31, 2022
														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		$	2,121,713		3.5	%			13,410		4.33	%		77.6	%		69.1	%		5.9	%		15.1	%		43.1	%		2.6	%		523		3.90	%
2015			26,193,656			1,917,056		7.3				11,486		4.18			85.5			76.1			4.3			17.6			39.3			2.7			425		3.70
2016			34,949,319			4,241,287		12.1				24,006		3.87			88.6			72.2			10.3			15.8			43.1			2.8			758		3.16
2017			43,858,322			5,953,785		13.6				34,592		4.26			91.1			68.9			19.9			20.1			38.2			4.0			1,432		4.14
2018			47,508,525			6,714,277		14.1				36,913		4.78			94.4			69.0			24.9			21.5			32.9			5.3			1,748		4.74
2019			63,569,183			14,742,465		23.2				68,798		4.22			87.3			66.7			23.8			18.7			35.7			5.8			2,158		3.14
2020			107,944,065			59,228,334		54.9				220,705		3.18			65.8			54.0			12.1			10.8			45.5			4.4			2,856		1.29
2021			84,218,250			71,533,600		84.9				228,943		3.07			84.4			60.6			14.6			13.9			40.4			7.9			2,750		1.20
2022			63,061,262			60,609,538		96.1				169,743		5.07			97.7			64.8			10.9			12.6			40.0			14.4			783		0.46
Total		$	531,971,433		$	227,062,055		42.7				808,596		3.83			83.8			61.3			13.8			13.5			41.1			4.3			13,433		1.66
(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
December 31, 2022
($ in thousands)
Excess of Loss Reinsurance								Original Reinsurance in Force									Remaining Reinsurance in Force																		Earned Premiums Ceded
Year		Remaining Insurance in Force			Remaining Risk in Force			ILN (1)			Other Reinsurance (2)			Total			ILN			Other Reinsurance			Total			Losses Ceded to Date			Original First Layer Retention			Remaining First Layer Retention			Quarter-to- Date			Year-to- Date			Reduction in PMIERs Minimum Required Assets (9)
2015 & 2016		$	5,931,479		$	1,610,997		$	333,844		$	—		$	333,844		$	41,764		$	—		$	41,764		$	—		$	208,111		$	206,843		$	389		$	2,852		$	—
2017			5,810,456			1,527,469			424,412			165,167			589,579			225,562			85,627			311,189			—			224,689			216,143			2,429			11,060			—
2018			6,620,816			1,708,129			473,184			118,650			591,834			325,537			76,144			401,681			—			253,643			248,675			3,873			14,425			—
2019 (3)			8,185,651			2,108,121			495,889			55,102			550,991			418,006			46,448			464,454			—			215,605			214,708			3,233			12,751			—
2019 & 2020 (4)			—			—			399,159			—			399,159			—			—			—			—			465,690			—			—			5,222			—
2020 & 2021 (5)			40,676,403			10,206,068			557,911			—			557,911			451,093			—			451,093			—			278,956			278,919			3,498			14,528			376,024
2021 (6)			41,455,845			11,027,751			439,407			—			439,407			410,778			—			410,778			—			279,415			279,400			4,250			17,080			368,047
2021 & 2022 (10)			75,406,975			20,284,551			—			141,992			141,992			—			141,992			141,992			—			507,114			507,114			1,610			3,295			138,300
2021 & 2022 (11)			33,815,842			9,079,729			237,868			—			237,868			237,868			—			237,868			—			303,761			303,761			4,563			5,131			218,839
Total		$	217,903,467		$	57,552,815		$	3,361,674		$	480,911		$	3,842,585		$	2,110,608		$	350,211		$	2,460,819		$	—		$	2,736,984		$	2,028,750	(12)	$	23,845		$	86,344		$	1,101,210

Quota Share Reinsurance
																	Losses Ceded								Ceding Commission						Earned Premiums Ceded
Year					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 (9)
2019 & 2020		(7	)		$	65,434,808		$	16,603,792		$	14,520,550		$	3,645,733		$	(703	)		$	(14,360	)		$	3,099		$	13,580		$	5,031		$	10,763		$	220,812
2022		(8	)			60,546,185			16,331,557			12,109,237			3,266,311			2,089				3,087				1,749			3,936			5,413			10,566			228,185
Total					$	125,980,993		$	32,935,349		$	26,629,787		$	6,912,044		$	1,386			$	(11,273	)		$	4,848		$	17,516		$	10,444		$	21,329		$	448,997
(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) Reinsurance coverage on new insurance written from January 1, 2019 through August 31, 2019.
(4) Reinsurance coverage on new insurance written from September 1, 2019 through July 31, 2020. This ILN was called during the third quarter of 2022.
(5) Reinsurance coverage on new insurance written from August 1, 2020 through March 31, 2021.
(6) Reinsurance coverage on new insurance written from April 1, 2021 through September 30, 2021.
(7) Reinsurance coverage on 40% of eligible single premium policies and 20% of all other eligible policies written from September 1, 2019 through December 31, 2020.
(8) Reinsurance coverage on 20% of all eligible policies written from January 1, 2022 through December 31, 2022.
(9) Represents the reduction in Essent Guaranty, Inc.'s Minimum Required Assets based on our interpretation of the PMIERs.
(10) Reinsurance coverage on 20% of all eligible policies written from October 1, 2021 through December 31, 2022.
(11) Reinsurance coverage on new insurance written from October 1, 2021 through July 31, 2022.
(12) The total remaining first layer retention differs from the sum of the individual reinsurance transactions as a result of overlapping coverage between certain transactions.

							Exhibit I
Essent Group Ltd. and Subsidiaries
Supplemental Information
Portfolio Geographic Data
IIF by State
	December 31, 2022			September 30, 2022			December 31, 2021
CA	13.2	%		13.2	%		13.1	%
TX	10.4			10.3			9.9
FL	10.2			10.1			9.7
CO	4.2			4.1			4.1
AZ	3.5			3.5			3.3
WA	3.4			3.4			3.7
GA	3.2			3.1			3.1
IL	3.1			3.1			3.3
VA	3.0			3.1			3.1
NJ	3.0			3.0			3.1
All Others	42.8			43.1			43.6
Total	100.0	%		100.0	%		100.0	%
Gross RIF by State
	December 31, 2022			September 30, 2022			December 31, 2021
CA	13.0	%		13.0	%		13.0	%
TX	10.7			10.6			10.2
FL	10.5			10.5			10.0
CO	4.1			4.1			4.0
AZ	3.6			3.5			3.3
WA	3.3			3.3			3.6
GA	3.2			3.2			3.1
IL	3.0			3.1			3.2
VA	3.0			3.0			3.0
NJ	2.9			2.9			3.0
All Others	42.7			42.8			43.6
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
		2022																2021
		December 31				September 30				June 30				March 31				December 31
Beginning default inventory			12,435				12,707				14,923				16,963				19,721
Plus: new defaults (A)			7,505				6,448				5,495				6,188				5,809
Less: cures			(6,425	)			(6,642	)			(7,639	)			(8,167	)			(8,514	)
Less: claims paid			(73	)			(68	)			(65	)			(55	)			(47	)
Less: rescissions and denials, net			(9	)			(10	)			(7	)			(6	)			(6	)
Ending default inventory			13,433				12,435				12,707				14,923				16,963
(A) New defaults remaining as of December 31, 2022			5,744				2,541				1,489				981				514
Cure rate (1)			23	%			61	%			73	%			84	%			91	%
Total amount paid for claims (in thousands)		$	1,441			$	1,261			$	1,137			$	826			$	992
Average amount paid per claim (in thousands)		$	20			$	19			$	17			$	15			$	21
Severity			46	%			47	%			50	%			35	%			45	%
Rollforward of Reserve for Losses and LAE
		Three Months Ended
		2022																2021
($ in thousands)		December 31				September 30				June 30				March 31				December 31
Reserve for losses and LAE at beginning of period		$	212,392			$	209,829			$	292,818			$	406,096			$	411,567
Less: Reinsurance recoverables			13,244				13,657				19,335				25,940				26,970
Net reserve for losses and LAE at beginning of period			199,148				196,172				273,483				380,156				384,597
Add provision for losses and LAE occurring in:
Current period			36,141				20,144				18,720				24,346				13,231
Prior years			(32,012	)			(15,850	)			(94,809	)			(130,114	)			(16,624	)
Incurred losses and LAE during the period			4,129				4,294				(76,089	)			(105,768	)			(3,393	)
Deduct payments for losses and LAE occurring in:
Current period			113				30				80				1				157
Prior years			1,392				1,288				1,142				904				891
Loss and LAE payments during the period			1,505				1,318				1,222				905				1,048
Net reserve for losses and LAE at end of period			201,772				199,148				196,172				273,483				380,156
Plus: Reinsurance recoverables			14,618				13,244				13,657				19,335				25,940
Reserve for losses and LAE at end of period		$	216,390			$	212,392			$	209,829			$	292,818			$	406,096
(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
	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	%
	December 31, 2021
	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	4,113		24	%	$	20,712	5	%	$	243,511	9	%
Four to eleven payments	5,459		32			77,822	21			349,494	22
Twelve or more payments	7,331		43			274,465	73			470,859	58
Pending claims	60		1			2,397	1			2,852	84
Total case reserves	16,963		100	%		375,396	100	%	$	1,066,716	35
IBNR						28,155
LAE						2,545
Total reserves for losses and LAE					$	406,096
Average reserve per default:
Case					$	22.1
Total					$	23.9
Default Rate	2.16	%

												Exhibit L
Essent Group Ltd. and Subsidiaries
Supplemental Information
Investments Available for Sale
Investments Available for Sale by Asset Class
Asset Class		December 31, 2022							December 31, 2021
($ in thousands)		Fair Value				Percent			Fair Value			Percent
U.S. Treasury securities		$	556,438			11.7	%		$	448,793		9.1	%
U.S. agency securities			49,058			1.0				5,504		0.1
U.S. agency mortgage-backed securities			783,743			16.5				1,008,863		20.3
Municipal debt securities			602,690			12.8				627,599		12.7
Non-U.S. government securities			62,399			1.3				79,743		1.6
Corporate debt securities			1,414,321			29.8				1,455,247		29.3
Residential and commercial mortgage securities			511,824			10.8				545,423		11.0
Asset-backed securities			624,561			13.2				581,703		11.7
Money market funds			136,591			2.9				210,012		4.2
Total investments available for sale		$	4,741,625			100.0	%		$	4,962,887		100.0	%
Investments Available for Sale by Credit Rating
Rating (1)		December 31, 2022							December 31, 2021
($ in thousands)		Fair Value				Percent			Fair Value			Percent
Aaa		$	2,226,951			46.9	%		$	2,412,273		48.6	%
Aa1			111,342			2.3				96,331		1.9
Aa2			327,742			6.9				354,951		7.2
Aa3			234,994			5.0				221,914		4.5
A1			421,752			8.9				263,820		5.3
A2			411,670			8.7				427,282		8.6
A3			268,928			5.7				274,525		5.5
Baa1			236,793			5.0				305,204		6.1
Baa2			221,308			4.7				274,011		5.5
Baa3			187,117			3.9				240,755		4.9
Below Baa3			93,028			2.0				91,821		1.9
Total investments available for sale		$	4,741,625			100.0	%		$	4,962,887		100.0	%
(1) Based on ratings issued by Moody's, if available. S&P or Fitch rating utilized if Moody's not available.
Investments Available for Sale by Duration and Book Yield
Effective Duration		December 31, 2022							December 31, 2021
($ in thousands)		Fair Value				Percent			Fair Value			Percent
< 1 Year		$	1,245,839			26.3	%		$	1,104,397		22.2	%
1 to < 2 Years			534,038			11.3				561,297		11.3
2 to < 3 Years			511,701			10.8				539,174		10.9
3 to < 4 Years			525,683			11.1				593,663		12.0
4 to < 5 Years			400,540			8.4				663,127		13.4
5 or more Years			1,523,824			32.1				1,501,229		30.2
Total investments available for sale		$	4,741,625			100.0	%		$	4,962,887		100.0	%
Pre-tax investment income yield:
Three months ended December 31, 2022			3.03	%
Year ended December 31, 2022			2.59	%

Holding company net cash and investments available for sale:
($ in thousands)
As of December 31, 2022		$	685,178
As of December 31, 2021		$	618,306

																		Exhibit M
Essent Group Ltd. and Subsidiaries
Supplemental Information
Insurance Company Capital
		2022																2021
		December 31				September 30				June 30				March 31				December 31
($ in thousands)
U.S. Mortgage Insurance Subsidiaries:
Combined statutory capital (1)		$	3,175,889			$	3,128,681			$	3,062,438			$	3,058,880			$	2,950,107
Combined net risk in force (2)		$	32,265,701			$	31,736,095			$	31,221,406			$	30,331,197			$	30,660,272
Risk-to-capital ratios: (3)
Essent Guaranty, Inc.		10.5:1				10.5:1				10.6:1				10.3:1				10.8:1
Essent Guaranty of PA, Inc.		0.6:1				0.6:1				0.6:1				0.7:1				0.8:1
Combined (4)		10.2:1				10.1:1				10.2:1				9.9:1				10.4:1
Essent Guaranty, Inc. PMIERs Data (5):
Available Assets		$	3,191,047			$	3,147,545			$	3,120,098			$	3,194,939			$	3,170,881
Minimum Required Assets			1,832,363				1,759,182				1,869,524				1,840,069				1,791,551
PMIERs excess Available Assets		$	1,358,684			$	1,388,363			$	1,250,574			$	1,354,870			$	1,379,330
PMIERs sufficiency ratio (6)			174	%			179	%			167	%			174	%			177	%
Essent Reinsurance Ltd.:
Stockholder's equity (GAAP basis)		$	1,478,772			$	1,397,287			$	1,380,067			$	1,330,840			$	1,301,937
Net risk in force (2)		$	19,454,046			$	18,694,500			$	17,758,801			$	16,527,587			$	15,997,129
(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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610.230.0556

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Investor Relations

Philip Stefano

Vice President, Investor Relations

855-809-ESNT

ir@essentgroup.com

Source: Essent Group Ltd.

FAQ

What is Essent Group's dividend amount for March 2023?

Essent Group has declared a quarterly cash dividend of $0.25 per share, payable on March 20, 2023.

When is Essent Group's dividend record date?

The record date for Essent Group's dividend is March 10, 2023.

How did Essent Group's Q4 2022 net income compare to Q4 2021?

Essent Group's Q4 2022 net income was $147.4 million, lower than $181.0 million in Q4 2021.

What was Essent Group's new insurance written in Q4 2022?

Essent Group's new insurance written for Q4 2022 was $13.0 billion.

What is the combined ratio reported by Essent Group for Q4 2022?

Essent Group reported a combined ratio of 24.6% for Q4 2022.