Essent Group Ltd. Announces Fourth Quarter & Full Year 2023 Results and Increases Quarterly Dividend

Rhea-AI Summary

Essent Group Ltd. (NYSE: ESNT) reported net income of $175.4 million for Q4 2023, up from $147.4 million in Q4 2022. Full-year net income was $696.4 million for 2023, down from $831.4 million in 2022. The Board declared a quarterly dividend of $0.28 per share. New insurance written for Q4 2023 was $8.8 billion. S&P upgraded Essent's ratings to 'A-'.

Positive

• Net income for Q4 2023 increased to $175.4 million compared to $147.4 million in Q4 2022.
• Full-year net income for 2023 decreased to $696.4 million from $831.4 million in 2022.
• The Board declared a quarterly cash dividend of $0.28 per common share.
• New insurance written for Q4 2023 was $8.8 billion.
• S&P upgraded Essent's ratings to 'A-'.

Negative

• None.

Insights

Financial Analyst

Essent Group Ltd.'s fourth-quarter financial performance, showcasing a net income increase from the previous year, suggests a resilient profit-generating capacity despite a decrease in net income for the full year 2023 compared to 2022. The upward trajectory in net investment income, with a significant 50% increase year over year, indicates a robust investment strategy that has capitalized on higher interest rates. This is a positive signal for investors, reflecting a potentially stronger balance sheet and improved interest income streams.

However, the reduction in new insurance written in the fourth quarter raises questions about market demand and growth prospects. Investors should consider whether this is a symptom of broader economic trends or specific to Essent's market positioning. The announced dividend could be seen as a commitment to returning value to shareholders, reinforcing the company's financial health and confidence in its cash flow stability.

Market Research Analyst

The upgrade of Essent's long-term financial strength and issuer credit ratings by S&P Global Ratings is a pivotal development that could influence investor confidence and market perception. An 'A-' rating places Essent in a favorable position compared to peers, potentially lowering borrowing costs and enhancing its competitive edge. The stable outlook attached to the rating further underscores the expectation of consistent performance, which is critical for long-term strategic planning and investment decisions.

Insurance Industry Expert

The slight increase in insurance in force from the previous quarter and the year-over-year growth indicates a steady expansion of Essent's coverage base, which is crucial for future revenue streams. This metric is fundamental for understanding the company's market share and risk exposure. It's important for stakeholders to assess the quality of the underlying insurance policies, as this will impact claims and profitability in the long run. The company's favorable credit performance, as noted by the CEO, is an indicator of sound risk management practices, which is essential for maintaining solvency and capital adequacy in the insurance industry.

HAMILTON, Bermuda--(BUSINESS WIRE)-- Essent Group Ltd. (NYSE: ESNT) today reported net income for the quarter ended December 31, 2023 of $175.4 million or $1.64 per diluted share, compared to $147.4 million or $1.37 per diluted share for the quarter ended December 31, 2022. For the full year 2023, net income was $696.4 million or $6.50 per diluted share, compared to $831.4 million or $7.72 per diluted share for 2022.

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 March 22, 2024, to shareholders of record on March 13, 2024.

“We are pleased with our fourth quarter and full year 2023 financial results, which benefited from favorable credit performance and higher interest rates,” said Mark A. Casale, Chairman and Chief Executive Officer. “Our results continue to demonstrate the earnings power of our business and provide us with attractive levels of operating cash flows, indicating the overall strength and stability of our franchise.”

Financial Highlights:

• New insurance written for the fourth quarter of 2023 was $8.8 billion, compared to $12.5 billion in the third quarter of 2023 and $13.0 billion in the fourth quarter of 2022.
• Insurance in force as of December 31, 2023 was $239.1 billion, compared to $238.7 billion as of September 30, 2023 and $227.1 billion as of December 31, 2022.
• Net investment income for the fourth quarter of 2023 was $50.6 million, up 34% from the fourth quarter of 2022. In 2023, net investment income was $186.1 million, up 50% from 2022.
• 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.

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.

Source: Essent Group Ltd.

Essent Group Ltd. and Subsidiaries
Financial Results and Supplemental Information (Unaudited)
Quarter and Year Ended December 31, 2023
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
Exhibit L			Detail of Reserves by Default Delinquency
Exhibit M			Investments Available for Sale
Exhibit N			U.S. Mortgage Insurance Company Capital
Exhibit O			Loss, Expense and Combined 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 December 31,								Year Ended December 31,
(In thousands, except per share amounts)		2023				2022				2023				2022
Revenues:
Direct premiums written	$	269,255			$	235,015			$	1,028,781			$	927,702
Ceded premiums		(31,068	)			(34,289	)			(134,499	)			(107,673	)
Net premiums written		238,187				200,726				894,282				820,029
Decrease in unearned premiums		7,427				6,526				22,624				22,498
Net premiums earned		245,614				207,252				916,906				842,527
Net investment income		50,581				37,796				186,139				124,409
Realized investment gains (losses), net		(4,892	)			(5,524	)			(7,204	)			(13,172	)
Income (loss) from other invested assets		(421	)			(7,599	)			(11,118	)			28,676
Other income (loss)		6,395				(1,888	)			25,036				18,384
Total revenues		297,277				230,037				1,109,759				1,000,824
Losses and expenses:
Provision (benefit) for losses and LAE		19,640				4,101				31,542				(174,704	)
Other underwriting and operating expenses		55,248				46,895				200,431				171,733
Premiums retained by agents		11,475				—				24,650				—
Interest expense		7,953				6,045				30,137				15,608
Total losses and expenses		94,316				57,041				286,760				12,637
Income before income taxes		202,961				172,996				822,999				988,187
Income tax expense		27,594				25,630				126,613				156,834
Net income	$	175,367			$	147,366			$	696,386			$	831,353
Earnings per share:
Basic	$	1.66			$	1.38			$	6.56			$	7.75
Diluted		1.64				1.37				6.50				7.72
Weighted average shares outstanding:
Basic		105,733				106,881				106,222				107,205
Diluted		106,823				107,419				107,129				107,653
Net income	$	175,367			$	147,366			$	696,386			$	831,353
Other comprehensive income (loss):
Change in unrealized appreciation (depreciation) of investments		155,887				40,787				102,294				(433,497	)
Total other comprehensive income (loss)		155,887				40,787				102,294				(433,497	)
Comprehensive income	$	331,254			$	188,153			$	798,680			$	397,856

					Exhibit B
Essent Group Ltd. and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)
	December 31,				December 31,
(In thousands, except per share amounts)		2023				2022
Assets
Investments
Fixed maturities available for sale, at fair value	$	4,335,008			$	4,489,598
Short-term investments available for sale, at fair value		928,731				252,027
Total investments available for sale		5,263,739				4,741,625
Other invested assets		277,226				257,941
Total investments		5,540,965				4,999,566
Cash		141,787				81,240
Accrued investment income		35,689				33,162
Accounts receivable		63,266				57,399
Deferred policy acquisition costs		9,139				9,910
Property and equipment		41,304				19,571
Prepaid federal income tax		470,646				418,460
Goodwill and intangible assets, net		72,826				—
Other assets		51,051				104,489
Total assets	$	6,426,673			$	5,723,797
Liabilities and Stockholders' Equity
Liabilities
Reserve for losses and LAE	$	260,095			$	216,464
Unearned premium reserve		140,285				162,887
Net deferred tax liability		362,753				356,810
Credit facility borrowings, net of deferred costs		421,920				420,864
Other accrued liabilities		139,070				104,463
Total liabilities		1,324,123				1,261,488
Commitments and contingencies
Stockholders' Equity
Common shares, $0.015 par value:
Authorized - 233,333; issued and outstanding - 106,597 shares in 2023 and 107,683 shares in 2022		1,599				1,615
Additional paid-in capital		1,299,869				1,350,377
Accumulated other comprehensive (loss) income		(280,496	)			(382,790	)
Retained earnings		4,081,578				3,493,107
Total stockholders' equity		5,102,550				4,462,309
Total liabilities and stockholders' equity	$	6,426,673			$	5,723,797
Return on average equity		14.6	%			19.1	%

																		Exhibit C
Essent Group Ltd. and Subsidiaries
Supplemental Information
Consolidated Historical Quarterly Data
		2023																2022
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		$	211,083			$	209,351			$	195,502			$	196,565			$	192,670
GSE and other risk share			17,166				16,850				17,727				14,693				14,582
Title Insurance			17,365				20,604				—				—				—
Net premiums earned			245,614				246,805				213,229				211,258				207,252
Net investment income			50,581				47,072				45,250				43,236				37,796
Realized investment gains (losses), net			(4,892	)			(235	)			(1,589	)			(488	)			(5,524	)
Income (loss) from other invested assets			(421	)			(3,143	)			(4,852	)			(2,702	)			(7,599	)
Other income (loss) (1)			6,395				5,609				8,090				4,942				(1,888	)
Total revenues			297,277				296,108				260,128				256,246				230,037
Losses and expenses:
Provision (benefit) for losses and LAE			19,640				10,822				1,260				(180	)			4,101
Other underwriting and operating expenses			55,248				54,814				42,174				48,195				46,895
Premiums retained by agents			11,475				13,175				—				—				—
Interest expense			7,953				7,854				7,394				6,936				6,045
Total losses and expenses			94,316				86,665				50,828				54,951				57,041
Income before income taxes			202,961				209,443				209,300				201,295				172,996
Income tax expense (2)			27,594				31,484				37,067				30,468				25,630
Net income		$	175,367			$	177,959			$	172,233			$	170,827			$	147,366
Earnings per share:
Basic		$	1.66			$	1.68			$	1.62			$	1.60			$	1.38
Diluted			1.64				1.66				1.61				1.59				1.37
Weighted average shares outstanding:
Basic			105,733				105,979				106,249				106,943				106,881
Diluted			106,823				107,025				107,093				107,585				107,419
Book value per share		$	47.87			$	44.98			$	44.24			$	43.18			$	41.44
Return on average equity (annualized)			14.2	%			14.9	%			14.7	%			15.0	%			13.5	%
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)			7.11	%			7.07	%			6.87	%			6.52	%			6.02	%
Debt-to-capital			7.69	%			8.12	%			8.24	%			8.38	%			8.70	%
(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 December 31, 2023, September 30, 2023, June 30, 2023, March 31, 2023, and December 31, 2022 was $412, ($898), $2,726, ($368), and ($6,515), respectively.
(2) Income tax expense for the quarters ended December 31, 2023, September 30, 2023, June 30, 2023, March 31, 2023 and December 31, 2022 includes ($1,132), ($763), ($888), ($368) and ($4,122), respectively, of discrete tax (benefit) expense associated with realized and unrealized gains and losses. 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
		2023																2022
Other Data, continued:		December 31				September 30				June 30				March 31				December 31
($ in thousands)
U.S. Mortgage Insurance Portfolio
New insurance written		$	8,769,160			$	12,505,823			$	13,498,080			$	12,893,789			$	13,011,432
New risk written			2,409,340				3,458,467				3,726,513				3,548,015				3,522,726
Average insurance in force		$	239,005,961			$	237,270,093			$	233,484,941			$	228,885,174			$	224,840,675
Insurance in force (end of period)		$	239,078,262			$	238,661,612			$	235,649,884			$	231,537,417			$	227,062,055
Gross risk in force (end of period) (1)		$	64,061,374			$	63,605,057			$	62,403,400			$	60,879,979			$	59,276,489
Risk in force (end of period)		$	54,591,590			$	53,920,308			$	53,290,643			$	51,469,312			$	49,903,626
Policies in force			822,012				825,248				821,690				815,751				808,596
Weighted average coverage (2)			26.8	%			26.7	%			26.5	%			26.3	%			26.1	%
Annual persistency			86.9	%			86.6	%			85.8	%			84.4	%			82.1	%
Loans in default (count)			14,819				13,391				12,480				12,773				13,433
Percentage of loans in default			1.80	%			1.62	%			1.52	%			1.57	%			1.66	%
U.S. Mortgage Insurance Portfolio premium rate:
Base average premium rate (3)			0.40	%			0.40	%			0.40	%			0.40	%			0.40	%
Single premium cancellations (4)			—	%			—	%			—	%			—	%			—	%
Gross average premium rate			0.40	%			0.40	%			0.40	%			0.40	%			0.40	%
Ceded premiums			(0.05	%)			(0.05	%)			(0.07	%)			(0.06	%)			(0.06	%)
Net average premium rate			0.35	%			0.35	%			0.33	%			0.34	%			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
New Insurance Written: Flow
NIW by Credit Score
	Three Months Ended												Year Ended
	December 31, 2023						December 31, 2022						December 31, 2023						December 31, 2022
($ in thousands)
>=760	$	3,708,316		42.3	%		$	4,761,917		36.6	%		$	19,181,507		40.2	%		$	25,704,025		40.8	%
740-759		1,531,800		17.5				2,428,164		18.7				8,563,621		18.0				10,927,903		17.3
720-739		1,333,537		15.2				2,301,392		17.7				7,644,101		16.0				10,186,558		16.2
700-719		1,256,250		14.3				1,919,146		14.6				7,148,954		15.0				8,371,867		13.2
680-699		581,913		6.6				1,138,743		8.8				3,606,260		7.6				5,548,687		8.8
<=679		357,344		4.1				462,070		3.6				1,522,409		3.2				2,322,026		3.7
Total	$	8,769,160		100.0	%		$	13,011,432		100.0	%		$	47,666,852		100.0	%		$	63,061,066		100.0	%
Weighted average credit score		747						744						746						746
NIW by LTV
	Three Months Ended												Year Ended
	December 31, 2023						December 31, 2022						December 31, 2023						December 31, 2022
($ in thousands)
85.00% and below	$	642,636		7.3	%		$	1,121,853		8.6	%		$	3,443,647		7.2	%		$	5,678,058		9.0	%
85.01% to 90.00%		1,871,854		21.3				3,075,304		23.6				9,822,916		20.6				16,732,649		26.5
90.01% to 95.00%		4,660,032		53.1				7,464,333		57.4				26,043,728		54.6				33,925,998		53.8
95.01% and above		1,594,638		18.3				1,349,942		10.4				8,356,561		17.6				6,724,361		10.7
Total	$	8,769,160		100.0	%		$	13,011,432		100.0	%		$	47,666,852		100.0	%		$	63,061,066		100.0	%
Weighted average LTV		93	%					93	%					93	%					93	%
NIW by Product
	Three Months Ended												Year Ended
	December 31, 2023						December 31, 2022						December 31, 2023						December 31, 2022
Single Premium policies				2.5	%					4.3	%					3.5	%					5.6	%
Monthly Premium policies				97.5						95.7						96.5						94.4
				100.0	%					100.0	%					100.0	%					100.0	%
NIW by Purchase vs. Refinance
	Three Months Ended												Year Ended
	December 31, 2023						December 31, 2022						December 31, 2023						December 31, 2022
Purchase				98.7	%					98.9	%					98.8	%					97.6	%
Refinance				1.3						1.1						1.2						2.4
				100.0	%					100.0	%					100.0	%					100.0	%

																	Exhibit F
Essent Group Ltd. and Subsidiaries
Supplemental Information
Insurance in Force and Risk in Force - U.S. Mortgage Insurance Portfolio
Portfolio by Credit Score
IIF by FICO score		December 31, 2023						September 30, 2023						December 31, 2022
($ in thousands)
>=760		$	97,085,244		40.6	%		$	97,027,348		40.7	%		$	93,389,066		41.1	%
740-759			41,490,720		17.4				41,362,480		17.3				38,842,311		17.2
720-739			37,435,781		15.7				37,297,809		15.6				34,981,632		15.4
700-719			31,932,469		13.4				31,674,346		13.3				29,146,543		12.8
680-699			19,780,944		8.3				19,850,176		8.3				18,859,824		8.3
<=679			11,353,104		4.6				11,449,453		4.8				11,842,679		5.2
Total		$	239,078,262		100.0	%		$	238,661,612		100.0	%		$	227,062,055		100.0	%
Weighted average credit score			746						746						746
Gross RIF by FICO score		December 31, 2023						September 30, 2023						December 31, 2022
($ in thousands)
>=760		$	25,752,549		40.2	%		$	25,594,262		40.1	%		$	24,152,726		40.8	%
740-759			11,268,607		17.6				11,165,727		17.6				10,255,195		17.3
720-739			10,179,683		15.9				10,090,889		15.9				9,276,750		15.6
700-719			8,687,001		13.6				8,568,811		13.5				7,696,965		13.0
680-699			5,330,894		8.3				5,327,434		8.4				4,963,470		8.4
<=679			2,842,640		4.4				2,857,934		4.5				2,931,383		4.9
Total		$	64,061,374		100.0	%		$	63,605,057		100.0	%		$	59,276,489		100.0	%
Portfolio by LTV
IIF by LTV		December 31, 2023						September 30, 2023						December 31, 2022
($ in thousands)
85.00% and below		$	19,869,776		8.3	%		$	21,226,685		8.9	%		$	24,454,468		10.8	%
85.01% to 90.00%			62,973,580		26.3				63,374,562		26.6				63,436,445		27.8
90.01% to 95.00%			119,764,184		50.1				118,461,030		49.6				107,932,064		47.6
95.01% and above			36,470,722		15.3				35,599,335		14.9				31,239,078		13.8
Total		$	239,078,262		100.0	%		$	238,661,612		100.0	%		$	227,062,055		100.0	%
Weighted average LTV			93	%					93	%					92	%
Gross RIF by LTV		December 31, 2023						September 30, 2023						December 31, 2022
($ in thousands)
85.00% and below		$	2,364,232		3.7	%		$	2,525,753		4.0	%		$	2,903,877		4.9	%
85.01% to 90.00%			15,494,172		24.2				15,566,095		24.5				15,477,031		26.1
90.01% to 95.00%			35,260,761		55.0				34,848,762		54.8				31,642,669		53.4
95.01% and above			10,942,209		17.1				10,664,447		16.7				9,252,912		15.6
Total		$	64,061,374		100.0	%		$	63,605,057		100.0	%		$	59,276,489		100.0	%
Portfolio by Loan Amortization Period
IIF by Loan Amortization Period		December 31, 2023						September 30, 2023						December 31, 2022
($ in thousands)
FRM 30 years and higher		$	232,995,380		97.5	%		$	232,186,999		97.3	%		$	219,416,408		96.7	%
FRM 20-25 years			1,685,700		0.7				1,910,610		0.8				2,601,108		1.1
FRM 15 years			1,505,759		0.6				1,719,467		0.7				2,552,931		1.1
ARM 5 years and higher			2,891,423		1.2				2,844,536		1.2				2,491,608		1.1
Total		$	239,078,262		100.0	%		$	238,661,612		100.0	%		$	227,062,055		100.0	%

																		Exhibit G
Essent Group Ltd. and Subsidiaries
Supplemental Information
Other Risk in Force
		2023																2022
($ in thousands)		December 31				September 30				June 30				March 31				December 31
GSE and other risk share (1):
Risk in Force		$	2,244,944			$	2,247,393			$	2,276,702			$	2,098,033			$	2,030,571
Reserve for losses and LAE		$	29			$	54			$	55			$	65			$	74
Weighted average credit score			749				749				749				749				749
Weighted average LTV			82	%			82	%			83	%			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
December 31, 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	$	1,432,521	2.4	%		8,762	4.31	%	71.2	%	59.2	%	7.3	%	14.6	%	44.4	%	2.5	%		379	4.33	%
2015		26,193,656		1,345,073	5.1			8,143	4.23		82.9		72.5		5.0		18.2		39.1		2.5			319	3.92
2016		34,949,319		3,015,806	8.6			17,568	3.90		87.6		80.8		12.4		16.0		42.2		2.2			545	3.10
2017		43,858,322		4,792,840	10.9			28,705	4.28		91.4		72.6		21.0		20.5		37.6		3.4			1,166	4.06
2018		47,508,525		5,570,630	11.7			31,331	4.79		94.9		72.0		26.2		21.7		32.6		4.5			1,498	4.78
2019		63,569,183		12,360,264	19.4			59,051	4.23		88.4		69.0		24.9		18.8		35.4		4.3			1,913	3.24
2020		107,944,065		46,454,833	43.0			178,941	3.19		69.0		57.5		13.3		10.8		45.6		3.1			2,511	1.40
2021		84,218,250		61,442,213	73.0			200,700	3.09		86.9		63.3		15.6		13.8		40.5		7.1			3,410	1.70
2022		63,061,262		56,943,590	90.3			162,074	5.07		97.9		65.4		11.2		12.6		39.7		20.1			2,456	1.52
2023		47,666,852		45,720,492	95.9			126,737	6.66		98.8		72.4		18.1		10.9		39.4		14.5			622	0.49
Total	$	579,638,285	$	239,078,262	41.2			822,012	4.41		88.5		65.3		15.3		13.0		40.6		4.4			14,819	1.80
(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
December 31, 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		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	(644	)		$	1,137		$	—
Radnor Re 2019-1		Jan. 2018 - Dec. 2018			—			—			—			—			—			—			—			(513	)			12,894			—
Radnor Re 2019-2		Jan. 2015 - Dec. 2016			—			—			—			—			—			—			—			(175	)			44			—
Radnor Re 2020-1		Jan. 2019 - Aug. 2019			6,887,869			1,797,683			495,889			2,350			—			215,605			213,230			748				6,536			—
Radnor Re 2021-1		Aug. 2020 - Mar. 2021			31,673,378			8,233,067			557,911			309,199			—			278,956			278,638			2,764				11,558			232,809
Radnor Re 2021-2		Apr. 2021 - Sep. 2021			35,958,961			9,735,395			439,407			339,890			—			279,415			279,051			3,898				16,059			276,777
Radnor Re 2022-1		Oct. 2021 - Jul. 2022			31,520,927			8,522,229			237,868			231,142			—			303,761			303,324			4,311				17,092			212,651
Radnor Re 2023-1		Aug. 2022 - Jun. 2023			30,639,242			8,380,934			281,462			281,462			—			281,463			281,463			3,641				6,759			266,826
Total				$	136,680,377		$	36,669,308		$	2,012,537		$	1,164,043		$	—		$	1,359,200		$	1,355,706		$	14,030			$	72,079		$	989,063

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		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	955		$	—
XOL 2019-1		Jan. 2018 - Dec. 2018			5,503,086			1,441,695			118,650			76,144			—			253,643			245,894			627			2,489			—
XOL 2020-1		Jan. 2019 - Dec. 2019			6,887,869			1,797,683			55,102			36,403			—			215,605			213,230	(4)		290			1,221			—
XOL 2022-1		Oct. 2021 - Dec. 2022			70,477,115			19,058,430			141,992			141,992			—			507,114			506,183			1,611			6,390			138,081
Total				$	82,868,070		$	22,297,808		$	315,744		$	254,539		$	—		$	976,362		$	965,220		$	2,528		$	11,055		$	138,081

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)			$	51,655,811		$	13,558,839		$	11,586,936		$	3,004,059		$	(164	)		$	(2,372	)		$	2,493		$	10,836		$	4,448		$	17,675		$	178,426
Jan. 2022 - Dec. 2022		20	%			56,890,266			15,401,694			11,378,053			3,080,339			2,258				9,731				1,921			7,801			5,908			24,554			233,244
Jan. 2023 - Dec. 2023		17.5	%			40,609,952			11,238,879			7,106,742			1,966,804			1,461				2,584				1,283			3,120			4,154			9,136			142,432
Total					$	149,156,029		$	40,199,412		$	30,071,731		$	8,051,202		$	3,555			$	9,943			$	5,697		$	21,757		$	14,510		$	51,365		$	554,102
(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.
(5) Reinsurance coverage on 40% of eligible single premium policies and 20% of all other eligible policies.

							Exhibit J
Essent Group Ltd. and Subsidiaries
Supplemental Information
U.S. Mortgage Insurance Portfolio Geographic Data
IIF by State
	December 31, 2023			September 30, 2023			December 31, 2022
CA	13.0	%		13.0	%		13.2	%
FL	11.1			11.0			10.2
TX	10.5			10.5			10.4
CO	4.1			4.1			4.2
AZ	3.7			3.7			3.5
WA	3.5			3.4			3.4
GA	3.4			3.4			3.2
NC	2.9			2.8			2.7
VA	2.8			2.8			3.0
IL	2.8			2.8			3.1
All Others	42.2			42.5			43.1
Total	100.0	%		100.0	%		100.0	%
Gross RIF by State
	December 31, 2023			September 30, 2023			December 31, 2022
CA	12.8	%		12.9	%		13.0	%
FL	11.4			11.3			10.5
TX	10.9			10.8			10.7
CO	4.0			4.0			4.1
AZ	3.8			3.8			3.6
WA	3.5			3.4			3.3
GA	3.4			3.5			3.2
NC	2.9			2.9			2.7
VA	2.7			2.8			3.0
IL	2.7			2.8			3.0
All Others	41.9			41.8			42.9
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
		2023																2022
		December 31				September 30				June 30				March 31				December 31
Beginning default inventory			13,391				12,480				12,773				13,433				12,435
Plus: new defaults (A)			9,007				7,953				6,575				7,015				7,505
Less: cures			(7,418	)			(6,902	)			(6,761	)			(7,574	)			(6,425	)
Less: claims paid			(148	)			(129	)			(96	)			(94	)			(73	)
Less: rescissions and denials, net			(13	)			(11	)			(11	)			(7	)			(9	)
Ending default inventory			14,819				13,391				12,480				12,773				13,433
(A) New defaults remaining as of December 31, 2023			6,514				3,000				1,772				1,056				730
Cure rate (1)			28	%			62	%			73	%			85	%			90	%
Total amount paid for claims (in thousands)		$	3,411			$	2,956			$	1,890			$	1,959			$	1,441
Average amount paid per claim (in thousands)		$	23			$	23			$	20			$	21			$	20
Severity			54	%			66	%			58	%			59	%			46	%
Rollforward of Reserve for Losses and LAE
		Three Months Ended
		2023																2022
($ in thousands)		December 31				September 30				June 30				March 31				December 31
Reserve for losses and LAE at beginning of period		$	226,617			$	216,888			$	215,957			$	216,390			$	212,392
Less: Reinsurance recoverables			20,656				17,958				16,357				14,618				13,244
Net reserve for losses and LAE at beginning of period			205,961				198,930				199,600				201,772				199,148
Add provision for losses and LAE occurring in:
Current period			38,922				35,609				31,377				32,693				36,141
Prior years			(19,912	)			(25,533	)			(30,107	)			(32,864	)			(32,012	)
Incurred losses and LAE during the period			19,010				10,076				1,270				(171	)			4,129
Deduct payments for losses and LAE occurring in:
Current period			330				156				31				—				113
Prior years			3,244				2,889				1,909				2,001				1,392
Loss and LAE payments during the period			3,574				3,045				1,940				2,001				1,505
Net reserve for losses and LAE at end of period			221,397				205,961				198,930				199,600				201,772
Plus: Reinsurance recoverables			24,005				20,656				17,958				16,357				14,618
Reserve for losses and LAE at end of period		$	245,402			$	226,617			$	216,888			$	215,957			$	216,390
(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
		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	%
		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	%

												Exhibit M
Essent Group Ltd. and Subsidiaries
Supplemental Information
Investments Available for Sale
Investments Available for Sale by Asset Class
Asset Class		December 31, 2023							December 31, 2022
($ in thousands)		Fair Value				Percent			Fair Value			Percent
U.S. Treasury securities		$	996,382			18.9	%		$	556,438		11.7	%
U.S. agency securities			7,195			0.1				49,058		1.0
U.S. agency mortgage-backed securities			821,346			15.6				783,743		16.5
Municipal debt securities			547,258			10.5				602,690		12.8
Non-U.S. government securities			67,447			1.3				62,399		1.3
Corporate debt securities			1,297,055			24.7				1,414,321		29.8
Residential and commercial mortgage securities			517,940			9.8				511,824		10.8
Asset-backed securities			564,995			10.7				624,561		13.2
Money market funds			444,121			8.4				136,591		2.9
Total investments available for sale		$	5,263,739			100.0	%		$	4,741,625		100.0	%
Investments Available for Sale by Credit Rating
Rating (1)		December 31, 2023							December 31, 2022
($ in thousands)		Fair Value				Percent			Fair Value			Percent
Aaa		$	2,561,363			53.2	%		$	2,122,599		46.2	%
Aa1			104,474			2.2				111,262		2.4
Aa2			291,501			6.0				325,241		7.1
Aa3			208,882			4.3				232,500		5.0
A1			377,188			7.8				396,095		8.6
A2			329,423			6.8				410,163		8.9
A3			253,081			5.3				268,928		5.8
Baa1			220,901			4.6				236,793		5.1
Baa2			226,449			4.7				221,308		4.8
Baa3			166,121			3.4				187,117		4.1
Below Baa3			80,235			1.7				93,028		2.0
Total (2)		$	4,819,618			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 $444,121 and $136,591 of money market funds at December 31, 2023 and December 31, 2022, respectively.
Investments Available for Sale by Duration and Book Yield
Effective Duration		December 31, 2023							December 31, 2022
($ in thousands)		Fair Value				Percent			Fair Value			Percent
< 1 Year		$	1,892,074			35.9	%		$	1,245,839		26.3	%
1 to < 2 Years			371,583			7.1				534,038		11.3
2 to < 3 Years			538,775			10.2				511,701		10.8
3 to < 4 Years			402,668			7.6				525,683		11.1
4 to < 5 Years			376,722			7.2				400,540		8.4
5 or more Years			1,681,917			32.0				1,523,824		32.1
Total investments available for sale		$	5,263,739			100.0	%		$	4,741,625		100.0	%
Pre-tax investment income yield:
Three months ended December 31, 2023			3.62	%
Year ended December 31, 2023			3.50	%

Holding company net cash and investments available for sale:
($ in thousands)
As of December 31, 2023		$	693,507
As of December 31, 2022		$	685,178

																		Exhibit N
Essent Group Ltd. and Subsidiaries
Supplemental Information
U.S. Mortgage Insurance Company Capital
		2023																2022
		December 31				September 30				June 30				March 31				December 31
($ in thousands)
U.S. Mortgage Insurance Subsidiaries:
Combined statutory capital (1)		$	3,376,117			$	3,309,522			$	3,243,086			$	3,207,102			$	3,178,151
Combined net risk in force (2)		$	34,549,500			$	34,203,678			$	34,019,643			$	33,038,825			$	32,265,701
Risk-to-capital ratios: (3)
Essent Guaranty, Inc.		10.6:1				10.7:1				10.8:1				10.6:1				10.5:1
Essent Guaranty of PA, Inc.		0.4:1				0.5:1				0.5:1				0.5:1				0.6:1
Combined (4)		10.2:1				10.3:1				10.5:1				10.3:1				10.2:1
Essent Guaranty, Inc. PMIERs Data (5):
Available Assets		$	3,379,936			$	3,318,179			$	3,245,481			$	3,226,436			$	3,191,047
Minimum Required Assets			1,985,545				1,910,659				1,991,741				1,917,769				1,832,363
PMIERs excess Available Assets		$	1,394,391			$	1,407,520			$	1,253,740			$	1,308,667			$	1,358,684
PMIERs sufficiency ratio (6)			170	%			174	%			163	%			168	%			174	%
Essent Reinsurance Ltd.:
Stockholder's equity (GAAP basis)		$	1,758,665			$	1,684,122			$	1,633,763			$	1,573,013			$	1,478,772
Net risk in force (2)		$	22,043,926			$	21,739,419			$	21,327,762			$	20,305,111			$	19,454,046
(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
Loss, Expense and Combined Ratios and Reconciliation of Non-GAAP Financial Measures
	2023																2022
	December 31				September 30				June 30				March 31				December 31
Loss Ratio (1)		7.9	%			4.4	%			0.6	%			(0.1	)%			2.0	%
Expense Ratio (2)		27.0	%			27.3	%			19.8	%			22.8	%			22.6	%
Combined Ratio		34.9	%			31.7	%			20.4	%			22.7	%			24.6	%
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 and year ended December 31, 2023 lack comparability with prior periods. In order to provide investors with more comparative information to prior periods, Essent has prepared the table below to reconcile the Consolidated Ratios to Consolidated Ratios Excluding Title, as shown below. Consolidated 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. Consolidated 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 Consolidated Ratios Excluding Title to the most comparable GAAP amount for the three months and year ended December 31, 2023, in accordance with Regulation G:
	Three Months Ended December 31, 2023												Year Ended December 31, 2023
	Consolidated				Acquired Title				Consolidated Excluding Title				Consolidated				Acquired Title				Consolidated Excluding Title
($ in thousands)
Revenues:
Net premiums earned	$	245,614			$	17,365			$	228,249			$	916,906			$	37,969			$	878,937
Net investment income		50,581				432				50,149				186,139				837				185,302
Realized investment losses, net		(4,892	)			—				(4,892	)			(7,204	)			—				(7,204	)
Loss from other invested assets		(421	)			—				(421	)			(11,118	)			—				(11,118	)
Settlement services (3)		1,475				1,475				—				3,512				3,512				—
Other income		4,920				503				4,417				21,524				907				20,617
Total revenues		297,277				19,775				277,502				1,109,759				43,225				1,066,534
Losses and expenses:
Provision (benefit) for losses and LAE		19,640				655				18,985				31,542				1,422				30,120
Other underwriting and operating expenses		55,248				11,595				43,653				200,431				25,061				175,370
Premiums retained by agents		11,475				11,475				—				24,650				24,650				—
Interest expense		7,953				—				7,953				30,137				—				30,137
Total losses and expenses		94,316				23,725				70,591				286,760				51,133				235,627
Loss ratio (1)		7.9	%			3.5	%			8.3	%			3.4	%			3.4	%			3.4	%
Expense ratio (2)		27.0	%			122.5	%			19.1	%			24.5	%			119.8	%			20.0	%
Combined ratio		34.9	%			126.0	%			27.4	%			27.9	%			123.2	%			23.4	%
(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) Settlement services revenue is included in "Other income" within Exhibit A and Exhibit C.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240209440689/en/

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 Ltd.'s net income for Q4 2023?

Essent Group Ltd. reported a net income of $175.4 million for the quarter ended December 31, 2023.

What was the full-year net income for Essent Group Ltd. in 2023?

Essent Group Ltd.'s full-year net income for 2023 was $696.4 million.

What was the quarterly cash dividend declared by Essent Group Ltd.?

Essent Group Ltd. declared a quarterly cash dividend of $0.28 per common share.

What was the amount of new insurance written for Essent Group Ltd. in Q4 2023?

Essent Group Ltd. recorded new insurance written of $8.8 billion for the fourth quarter of 2023.

What was the rating upgrade given to Essent Group Ltd. by S&P?

S&P upgraded Essent Group Ltd.'s ratings to 'A-'.