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

Rhea-AI Summary

Essent Group Ltd. (NYSE: ESNT) reported net income of $172.2 million or $1.61 per diluted share for Q2 2023, compared to $231.8 million or $2.16 per diluted share in Q2 2022. The company declared a quarterly cash dividend of $0.25 per common share, payable on September 11, 2023. New insurance written for Q2 2023 was $13.5 billion, compared to $12.9 billion in Q1 2023 and $20.1 billion in Q2 2022. Insurance in force as of June 30, 2023, was $235.6 billion. Essent successfully executed a consent and tender process on $637 million of outstanding notes. The company completed the acquisition of Agents National Title Holding Company and Boston National Holdings LLC for $92.6 million. Essent priced its 9th insurance-link note transaction, Radnor Re 2023-1, providing $281.5 million of collateralized reinsurance coverage.

Positive

• Net income for Q2 2023 decreased by 25.7% compared to Q2 2022.
• The company declared a quarterly cash dividend of $0.25 per common share.
• New insurance written for Q2 2023 increased by 4.7% compared to Q1 2023.
• Insurance in force as of June 30, 2023, increased to $235.6 billion.
• Essent successfully executed a consent and tender process on $637 million of outstanding notes.
• The company completed the acquisition of Agents National Title Holding Company and Boston National Holdings LLC.
• Essent priced its 9th insurance-link note transaction, Radnor Re 2023-1, providing $281.5 million of collateralized reinsurance coverage.

Negative

• None.

HAMILTON, Bermuda--(BUSINESS WIRE)-- Essent Group Ltd. (NYSE: ESNT) today reported net income for the quarter ended June 30, 2023 of $172.2 million or $1.61 per diluted share, compared to $231.8 million or $2.16 per diluted share for the quarter ended June 30, 2022.

Essent also announced today that its Board of Directors has declared a quarterly cash dividend of $0.25 per common share. The dividend is payable on September 11, 2023, to shareholders of record on September 1, 2023.

“We are pleased with our second quarter 2023 financial results, which reflect the high quality of our portfolio and the resilience in housing and employment,” said Mark A. Casale, Chairman and Chief Executive Officer. “Our strong operational performance continues to demonstrate the earnings power of our business and provide us with attractive levels of excess capital, which we can then deploy in the best long-term interest of our shareholders.”

Financial Highlights:

• New insurance written for the second quarter of 2023 was $13.5 billion, compared to $12.9 billion in the first quarter of 2023 and $20.1 billion in the second quarter of 2022.
• Insurance in force as of June 30, 2023 was $235.6 billion, compared to $231.5 billion as of March 31, 2023 and $215.9 billion as of June 30, 2022.
• The combined ratio for the second quarter of 2023 was 20.4%, compared to 22.7% in the first quarter of 2023 and (16.2)% in the second quarter of 2022.
• During the quarter, Essent successfully executed a consent and tender process on $637 million of outstanding notes from two seasoned ILN deals that provided no regulatory or economic capital credit.
• On July 1, 2023, Essent Group Ltd. completed its previously announced acquisition of Agents National Title Holding Company and Boston National Holdings LLC for $92.6 million.
• On July 27, 2023, Essent priced its 9th insurance-link note transaction, Radnor Re 2023-1, which provides $281.5 million of collateralized reinsurance coverage for NIW from August 2022 through June 2023.

Conference Call:

Essent management will hold a conference call at 10:00 AM Eastern time today to discuss its results. The conference call will be broadcast live over the Internet at http://ir.essentgroup.com/events-and-presentations/events/default.aspx. The call may also be accessed by dialing 888-330-2384 inside the U.S., or 240-789-2701 for international callers, using passcode 9824537 or by referencing Essent.

A replay of the webcast will be available on the Essent website approximately two hours after the live broadcast ends for a period of one year. A replay of the conference call will be available approximately two hours after the call ends for a period of two weeks, using the following dial-in numbers and passcode: 800-770-2030 inside the U.S., or 647-362-9199 for international callers, passcode 9824537.

In addition to the information provided in the Company's earnings news release, other statistical and financial information, which may be referred to during the conference call, will be available on Essent's website at http://ir.essentgroup.com/financials/quarterly-results/default.aspx.

Forward-Looking Statements:

This press release may include “forward-looking statements” which are subject to known and unknown risks and uncertainties, many of which may be beyond our control. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "will," “should,” “expect,” "plan," "anticipate," "believe," “estimate,” “predict,” or "potential" or the negative thereof or variations thereon or similar terminology. Actual events, results and outcomes may differ materially from our expectations due to a variety of known and unknown risks, uncertainties and other factors. Although it is not possible to identify all of these risks and factors, they include, among others, the following: changes in or to Fannie Mae and Freddie Mac (the “GSEs”), whether through Federal legislation, restructurings or a shift in business practices; failure to continue to meet the mortgage insurer eligibility requirements of the GSEs; competition for customers; lenders or investors seeking alternatives to private mortgage insurance; deteriorating economic conditions (including inflation, rising interest rates and other adverse economic trends); the impact of COVID-19 and related economic conditions; an increase in the number of loans insured through Federal government mortgage insurance programs, including those offered by the Federal Housing Administration; decline in new insurance written and franchise value due to loss of a significant customer; decline in the volume of low down payment mortgage originations; the definition of "Qualified Mortgage" reducing the size of the mortgage origination market or creating incentives to use government mortgage insurance programs; the definition of "Qualified Residential Mortgage" reducing the number of low down payment loans or lenders and investors seeking alternatives to private mortgage insurance; the implementation of the Basel III Capital Accord discouraging the use of private mortgage insurance; a decrease in the length of time that insurance policies are in force; uncertainty of loss reserve estimates; our non-U.S. operations becoming subject to U.S. Federal income taxation; becoming considered a passive foreign investment company for U.S. Federal income tax purposes; and other risks and factors described in Part I, Item 1A “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2022 filed with the Securities and Exchange Commission on February 17, 2023, as subsequently updated through other reports we file with the Securities and Exchange Commission. Any forward-looking information presented herein is made only as of the date of this press release, and we do not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

About the Company:

Essent Group Ltd. (NYSE: ESNT) is a Bermuda-based holding company (collectively with its subsidiaries, “Essent”) which serves the housing finance industry by offering private mortgage insurance, reinsurance, risk management products and title insurance and settlement services to mortgage lenders, borrowers, and investors to support homeownership. Additional information regarding Essent may be found at www.essentgroup.com and www.essent.us.

Source: Essent Group Ltd.

Essent Group Ltd. and Subsidiaries
Financial Results and Supplemental Information (Unaudited)
Quarter Ended June 30, 2023
Exhibit A		Condensed Consolidated Statements of Comprehensive Income (Unaudited)
Exhibit B		Condensed Consolidated Balance Sheets (Unaudited)
Exhibit C		Historical Quarterly Data
Exhibit D		New Insurance Written
Exhibit E		Insurance in Force and Risk in Force
Exhibit F		Other Risk in Force
Exhibit G		Portfolio Vintage Data
Exhibit H		Reinsurance Vintage Data
Exhibit I		Portfolio Geographic Data
Exhibit J		Rollforward of Defaults and Reserve for Losses and LAE
Exhibit K		Detail of Reserves by Default Delinquency
Exhibit L		Investments Available for Sale
Exhibit M		Insurance Company Capital

													Exhibit A
Essent Group Ltd. and Subsidiaries
Condensed Consolidated Statements of Comprehensive Income (Unaudited)
	Three Months Ended June 30,								Six Months Ended June 30,
(In thousands, except per share amounts)		2023				2022				2023				2022
Revenues:
Direct premiums written	$	249,167			$	232,660			$	488,658			$	452,914
Ceded premiums		(39,546	)			(22,318	)			(73,137	)			(42,841	)
Net premiums written		209,621				210,342				415,521				410,073
Decrease in unearned premiums		3,608				1,669				8,966				17,268
Net premiums earned		213,229				212,011				424,487				427,341
Net investment income		45,250				29,339				88,486				54,019
Realized investment losses, net		(1,589	)			(471	)			(2,077	)			(7,823	)
(Loss) income from other invested assets		(4,852	)			1,953				(7,554	)			26,658
Other income		8,090				1,577				13,032				8,825
Total revenues		260,128				244,409				516,374				509,020
Losses and expenses:
Provision (benefit) for losses and LAE		1,260				(76,199	)			1,080				(183,057	)
Other underwriting and operating expenses		42,174				41,898				90,369				82,694
Interest expense		7,394				2,887				14,330				5,113
Total losses and expenses		50,828				(31,414	)			105,779				(95,250	)
Income before income taxes		209,300				275,823				410,595				604,270
Income tax expense		37,067				44,054				67,535				98,334
Net income	$	172,233			$	231,769			$	343,060			$	505,936
Earnings per share:
Basic	$	1.62			$	2.17			$	3.22			$	4.70
Diluted		1.61				2.16				3.20				4.69
Weighted average shares outstanding:
Basic		106,249				106,921				106,594				107,540
Diluted		107,093				107,283				107,338				107,933
Net income	$	172,233			$	231,769			$	343,060			$	505,936
Other comprehensive income (loss):
Change in unrealized appreciation (depreciation) of investments		(36,098	)			(134,268	)			22,655				(337,274	)
Total other comprehensive income (loss)		(36,098	)			(134,268	)			22,655				(337,274	)
Comprehensive income	$	136,135			$	97,501			$	365,715			$	168,662
Loss ratio		0.6	%			(35.9	%)			0.3	%			(42.8	%)
Expense ratio		19.8				19.8				21.3				19.4
Combined ratio		20.4	%			(16.2	%)			21.5	%			(23.5	%)

					Exhibit B
Essent Group Ltd. and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)
	June 30,				December 31,
(In thousands, except per share amounts)		2023				2022
Assets
Investments
Fixed maturities available for sale, at fair value	$	4,438,554			$	4,489,598
Short-term investments available for sale, at fair value		583,540				252,027
Total investments available for sale		5,022,094				4,741,625
Other invested assets		266,559				257,941
Total investments		5,288,653				4,999,566
Cash		68,101				81,240
Accrued investment income		36,099				33,162
Accounts receivable		62,692				57,399
Deferred policy acquisition costs		9,460				9,910
Property and equipment		31,324				19,571
Prepaid federal income tax		446,460				418,460
Other assets		40,526				104,489
Total assets	$	5,983,315			$	5,723,797
Liabilities and Stockholders' Equity
Liabilities
Reserve for losses and LAE	$	216,943			$	216,464
Unearned premium reserve		153,921				162,887
Net deferred tax liability		328,340				356,810
Credit facility borrowings, net of deferred costs		421,392				420,864
Other accrued liabilities		129,367				104,463
Total liabilities		1,249,963				1,261,488
Commitments and contingencies
Stockholders' Equity
Common shares, $0.015 par value:
Authorized - 233,333; issued and outstanding - 106,988 shares in 2023 and 107,683 shares in 2022		1,605				1,615
Additional paid-in capital		1,309,834				1,350,377
Accumulated other comprehensive loss		(360,135	)			(382,790	)
Retained earnings		3,782,048				3,493,107
Total stockholders' equity		4,733,352				4,462,309
Total liabilities and stockholders' equity	$	5,983,315			$	5,723,797
Return on average equity (1)		14.9	%			19.1	%
(1) The 2023 return on average equity is calculated by dividing annualized year-to-date 2023 net income by average equity. The 2022 return on average equity is calculated by dividing full year 2022 net income by average equity.

																		Exhibit C
Essent Group Ltd. and Subsidiaries
Supplemental Information
Historical Quarterly Data
		2023								2022
Selected Income Statement Data		June 30				March 31				December 31				September 30				June 30
(In thousands, except per share amounts)
Revenues:
Net premiums earned:
U.S. Mortgage Insurance Portfolio		$	195,502			$	196,565			$	192,670			$	194,272			$	198,891
GSE and other risk share			17,727				14,693				14,582				13,662				13,120
Net premiums earned			213,229				211,258				207,252				207,934				212,011
Net investment income			45,250				43,236				37,796				32,594				29,339
Realized investment (losses) gains, net			(1,589	)			(488	)			(5,524	)			175				(471	)
(Loss) income from other invested assets			(4,852	)			(2,702	)			(7,599	)			9,617				1,953
Other income (loss) (1)			8,090				4,942				(1,888	)			11,447				1,577
Total revenues			260,128				256,246				230,037				261,767				244,409
Losses and expenses:
Provision (benefit) for losses and LAE			1,260				(180	)			4,101				4,252				(76,199	)
Other underwriting and operating expenses			42,174				48,195				46,895				42,144				41,898
Interest expense			7,394				6,936				6,045				4,450				2,887
Total losses and expenses			50,828				54,951				57,041				50,846				(31,414	)
Income before income taxes			209,300				201,295				172,996				210,921				275,823
Income tax expense (2)			37,067				30,468				25,630				32,870				44,054
Net income		$	172,233			$	170,827			$	147,366			$	178,051			$	231,769
Earnings per share:
Basic		$	1.62			$	1.60			$	1.38			$	1.67			$	2.17
Diluted			1.61				1.59				1.37				1.66				2.16
Weighted average shares outstanding:
Basic			106,249				106,943				106,881				106,870				106,921
Diluted			107,093				107,585				107,419				107,337				107,283
Book value per share		$	44.24			$	43.18			$	41.44			$	39.87			$	39.67
Return on average equity (annualized)			14.7	%			15.0	%			13.5	%			16.6	%			21.8	%
Other Data:
Loss ratio (3)			0.6	%			(0.1	)%			2.0	%			2.0	%			(35.9	)%
Expense ratio (4)			19.8				22.8				22.6				20.3				19.8
Combined ratio			20.4	%			22.7	%			24.6	%			22.3	%			(16.2	)%
Credit Facility
Borrowings outstanding		$	425,000			$	425,000			$	425,000			$	425,000			$	425,000
Undrawn committed capacity		$	400,000			$	400,000			$	400,000			$	400,000			$	400,000
Weighted average interest rate (end of period)			6.87	%			6.52	%			6.02	%			4.39	%			2.92	%
Debt-to-capital			8.24	%			8.38	%			8.70	%			9.01	%			9.05	%
(1) Other income includes net favorable (unfavorable) changes in the fair value of embedded derivatives associated with certain of our third-party reinsurance agreements, which for the quarters ended June 30, 2023, March 31, 2023, December 31, 2022, September 30, 2022, and June 30, 2022 was $2,726, ($368), ($6,515), $5,177, and ($5,549), respectively.
(2) Income tax expense for the quarters ended June 30, 2023, March 31, 2023, December 31, 2022, September 30, 2022, and June 30, 2022 includes $(888), ($368), ($4,122), $2,925, and ($299) respectively, of discrete tax (benefit) expense associated with realized and unrealized gains and losses. Income tax expense for the quarter ended June 30, 2023 also includes $5,295 of net discrete tax expense associated with prior year tax returns.
(3) Loss ratio is calculated by dividing the provision for losses and LAE by net premiums earned.
(4) Expense ratio is calculated by dividing other underwriting and operating expenses by net premiums earned.

						Exhibit C, continued
Essent Group Ltd. and Subsidiaries
Supplemental Information
Historical Quarterly Data
		2023								2022
Other Data, continued:		June 30				March 31				December 31				September 30				June 30
($ in thousands)
U.S. Mortgage Insurance Portfolio
Flow:
New insurance written		$	13,498,080			$	12,893,789			$	13,011,432			$	17,112,017			$	20,096,135
New risk written			3,726,513				3,548,015				3,522,726				4,570,699				5,442,115
Bulk:
New insurance written		$	—			$	—			$	—			$	—			$	196
New risk written			—				—				—				—				29
Total:
New insurance written		$	13,498,080			$	12,893,789			$	13,011,432			$	17,112,017			$	20,096,331
New risk written		$	3,726,513			$	3,548,015			$	3,522,726			$	4,570,669			$	5,442,144
Average insurance in force		$	233,484,941			$	228,885,174			$	224,840,675			$	219,280,350			$	210,896,297
Insurance in force (end of period)		$	235,649,884			$	231,537,417			$	227,062,055			$	222,542,569			$	215,896,531
Gross risk in force (end of period) (5)		$	62,403,400			$	60,879,979			$	59,276,489			$	57,743,091			$	55,678,063
Risk in force (end of period)		$	53,290,643			$	51,469,312			$	49,903,626			$	48,690,571			$	47,289,910
Policies in force			821,690				815,751				808,596				800,745				789,652
Weighted average coverage (6)			26.5	%			26.3	%			26.1	%			25.9	%			25.8	%
Annual persistency			85.8	%			84.4	%			82.1	%			77.9	%			73.4	%
Loans in default (count)			12,480				12,773				13,433				12,435				12,707
Percentage of loans in default			1.52	%			1.57	%			1.66	%			1.55	%			1.61	%
U.S. Mortgage Insurance Portfolio premium rate:
Base average premium rate (7)			0.40	%			0.40	%			0.40	%			0.40	%			0.41	%
Single premium cancellations (8)			—	%			—	%			—	%			0.01	%			0.01	%
Gross average premium rate			0.40	%			0.40	%			0.40	%			0.41	%			0.42	%
Ceded premiums			(0.07	%)			(0.06	%)			(0.06	%)			(0.06	%)			(0.04	%)
Net average premium rate			0.33	%			0.34	%			0.34	%			0.35	%			0.38	%
(5) Gross risk in force includes risk ceded under third-party reinsurance.
(6) Weighted average coverage is calculated by dividing end of period gross risk in force by end of period insurance in force.
(7) Base average premium rate is calculated by dividing annualized base premiums earned by average insurance in force for the period.
(8) Single premium cancellations is calculated by dividing annualized premiums on the cancellation of non-refundable single premium policies by average insurance in force for the period.

																			Exhibit D
Essent Group Ltd. and Subsidiaries
Supplemental Information
New Insurance Written: Flow
NIW by Credit Score
	Three Months Ended												Six Months Ended
	June 30, 2023						June 30, 2022						June 30, 2023						June 30, 2022
($ in thousands)
>=760	$	5,413,790		40.1	%		$	8,555,331		42.6	%		$	10,260,848		38.9	%		$	13,965,985		42.4	%
740-759		2,428,773		18.0				3,421,392		17.0				4,826,755		18.3				5,534,624		16.8
720-739		2,194,400		16.3				3,105,275		15.4				4,399,244		16.7				5,096,593		15.5
700-719		2,022,302		15.0				2,554,997		12.7				4,025,194		15.2				4,175,470		12.7
680-699		1,032,061		7.6				1,785,196		8.9				2,132,876		8.1				2,932,962		8.9
<=679		406,754		3.0				673,944		3.4				746,952		2.8				1,231,983		3.7
Total	$	13,498,080		100.0	%		$	20,096,135		100.0	%		$	26,391,869		100.0	%		$	32,937,617		100.0	%
Weighted average credit score		746						747						746						747
NIW by LTV
	Three Months Ended												Six Months Ended
	June 30, 2023						June 30, 2022						June 30, 2023						June 30, 2022
($ in thousands)
85.00% and below	$	988,752		7.3	%		$	1,675,255		8.3	%		$	1,951,761		7.4	%		$	2,937,293		8.9	%
85.01% to 90.00%		2,819,310		20.9				5,487,721		27.3				5,505,138		20.9				8,903,659		27.0
90.01% to 95.00%		7,339,533		54.4				10,874,315		54.1				14,769,646		55.9				17,290,570		52.5
95.01% and above		2,350,485		17.4				2,058,844		10.3				4,165,324		15.8				3,806,095		11.6
Total	$	13,498,080		100.0	%		$	20,096,135		100.0	%		$	26,391,869		100.0	%		$	32,937,617		100.0	%
Weighted average LTV		93	%					93	%					93	%					93	%
NIW by Product
	Three Months Ended												Six Months Ended
	June 30, 2023						June 30, 2022						June 30, 2023						June 30, 2022
Single Premium policies				4.3	%					6.5	%					4.1	%					4.7	%
Monthly Premium policies				95.7						93.5						95.9						95.3
				100.0	%					100.0	%					100.0	%					100.0	%
NIW by Purchase vs. Refinance
	Three Months Ended												Six Months Ended
	June 30, 2023						June 30, 2022						June 30, 2023						June 30, 2022
Purchase				98.8	%					98.0	%					98.7	%					96.5	%
Refinance				1.2						2.0						1.3						3.5
				100.0	%					100.0	%					100.0	%					100.0	%

																	Exhibit E
Essent Group Ltd. and Subsidiaries
Supplemental Information
Insurance in Force and Risk in Force
Portfolio by Credit Score
IIF by FICO score		June 30, 2023						March 31, 2023						June 30, 2022
($ in thousands)
>=760		$	95,925,520		40.8	%		$	94,560,292		40.8	%		$	89,790,212		41.6	%
740-759			40,733,799		17.3				39,870,193		17.2				36,606,394		17.0
720-739			36,791,104		15.6				35,950,319		15.5				32,637,422		15.1
700-719			30,970,132		13.1				30,103,007		13.0				27,258,759		12.6
680-699			19,667,866		8.3				19,338,187		8.4				17,697,662		8.2
<=679			11,561,463		4.9				11,715,419		5.1				11,906,082		5.5
Total		$	235,649,884		100.0	%		$	231,537,417		100.0	%		$	215,896,531		100.0	%
Weighted average credit score			746						746						746
Gross RIF by FICO score		June 30, 2023						March 31, 2023						June 30, 2022
($ in thousands)
>=760		$	25,138,762		40.3	%		$	24,613,214		40.4	%		$	22,956,271		41.2	%
740-759			10,922,780		17.5				10,612,582		17.4				9,540,921		17.1
720-739			9,896,425		15.9				9,602,368		15.8				8,545,969		15.3
700-719			8,319,353		13.3				8,017,430		13.2				7,107,888		12.8
680-699			5,248,349		8.4				5,126,581		8.4				4,601,675		8.3
<=679			2,877,731		4.6				2,907,804		4.8				2,925,339		5.3
Total		$	62,403,400		100.0	%		$	60,879,979		100.0	%		$	55,678,063		100.0	%
Portfolio by LTV
IIF by LTV		June 30, 2023						March 31, 2023						June 30, 2022
($ in thousands)
85.00% and below		$	22,427,649		9.5	%		$	23,502,232		10.2	%		$	25,510,400		11.8	%
85.01% to 90.00%			63,562,258		27.0				63,478,244		27.3				61,304,806		28.4
90.01% to 95.00%			115,768,826		49.1				112,184,833		48.5				98,938,435		45.8
95.01% and above			33,891,151		14.4				32,372,108		14.0				30,142,890		14.0
Total		$	235,649,884		100.0	%		$	231,537,417		100.0	%		$	215,896,531		100.0	%
Weighted average LTV			93	%					92	%					92	%
Gross RIF by LTV		June 30, 2023						March 31, 2023						June 30, 2022
($ in thousands)
85.00% and below		$	2,667,981		4.3	%		$	2,793,895		4.6	%		$	3,012,030		5.4	%
85.01% to 90.00%			15,583,198		25.0				15,529,427		25.5				14,868,579		26.7
90.01% to 95.00%			34,026,320		54.5				32,929,489		54.1				28,921,722		52.0
95.01% and above			10,125,901		16.2				9,627,168		15.8				8,875,732		15.9
Total		$	62,403,400		100.0	%		$	60,879,979		100.0	%		$	55,678,063		100.0	%
Portfolio by Loan Amortization Period
IIF by Loan Amortization Period		June 30, 2023						March 31, 2023						June 30, 2022
($ in thousands)
FRM 30 years and higher		$	228,745,641		97.1	%		$	224,230,607		96.8	%		$	207,888,842		96.3	%
FRM 20-25 years			2,124,690		0.9				2,364,623		1.0				3,114,962		1.4
FRM 15 years			1,953,448		0.8				2,214,448		1.0				3,222,801		1.5
ARM 5 years and higher			2,826,105		1.2				2,727,739		1.2				1,669,926		0.8
Total		$	235,649,884		100.0	%		$	231,537,417		100.0	%		$	215,896,531		100.0	%

																		Exhibit F
Essent Group Ltd. and Subsidiaries
Supplemental Information
Other Risk in Force
		2023								2022
($ in thousands)		June 30				March 31				December 31				September 30				June 30
GSE and other risk share (1):
Risk in Force		$	2,276,702			$	2,098,033			$	2,030,571			$	2,026,895			$	1,898,364
Reserve for losses and LAE		$	55			$	65			$	74			$	102			$	144
Weighted average credit score			749				749				749				748				748
Weighted average LTV			83	%			83	%			83	%			84	%			84	%
(1) GSE and other risk share includes GSE risk share and other reinsurance transactions. Essent Reinsurance Ltd. ("Essent Re") provides insurance or reinsurance relating to the risk in force on loans in reference pools acquired by Freddie Mac and Fannie Mae.

																								Exhibit G
Essent Group Ltd. and Subsidiaries
Supplemental Information
Portfolio Vintage Data
June 30, 2023
									Insurance in Force
Year	Original Insurance Written ($ in thousands)			Remaining Insurance in Force ($ in thousands)		% Remaining of Original Insurance		Number of Policies in Force	Weighted Average Coupon		% Purchase		>90% LTV		>95% LTV		FICO < 700		FICO >= 760		Incurred Loss Ratio (Inception to Date) (1)		Number of Loans in Default	Percentage of Loans in Default
2010 - 2014	$	60,668,851		$	1,807,238	3.0	%	11,385	4.31	%	75.6	%	65.8	%	6.4	%	14.9	%	43.4	%	2.5	%	416	3.65	%
2015		26,193,656			1,649,738	6.3		9,997	4.19		84.7		75.8		4.5		17.4		39.6		2.6		367	3.67
2016		34,949,319			3,476,870	9.9		19,998	3.89		87.9		79.3		11.6		16.2		42.4		2.5		586	2.93
2017		43,858,322			5,316,345	12.1		31,404	4.27		91.3		70.7		20.4		20.4		37.9		3.5		1,134	3.61
2018		47,508,525			6,113,917	12.9		34,026	4.79		94.6		70.5		25.6		21.7		32.7		4.8		1,456	4.28
2019		63,569,183			13,481,766	21.2		63,599	4.22		87.9		67.6		24.3		18.7		35.6		4.9		1,845	2.90
2020		107,944,065			52,266,774	48.4		198,262	3.19		67.3		55.6		12.7		10.8		45.6		3.6		2,359	1.19
2021		84,218,250			66,928,946	79.5		216,319	3.08		85.7		61.9		15.0		13.9		40.5		7.5		2,799	1.29
2022		63,061,262			58,725,613	93.1		165,953	5.07		97.8		65.0		11.1		12.7		39.7		18.7		1,429	0.86
2023 (through June 30)		26,391,869			25,882,677	98.1		70,747	6.34		98.7		71.9		16.0		11.0		38.4		7.8		89	0.13
Total	$	558,363,302		$	235,649,884	42.2		821,690	4.12		86.5		63.5		14.4		13.3		40.7		4.3		12,480	1.52
(1) Incurred loss ratio is calculated by dividing the sum of case reserves and cumulative amount paid for claims by cumulative net premiums earned.

																												Exhibit H
Essent Group Ltd. and Subsidiaries
Supplemental Information
Reinsurance Vintage Data
June 30, 2023
($ in thousands)
Insurance Linked Notes (1)
																							Earned Premiums Ceded
Deal Name	Vintage		Remaining Insurance in Force			Remaining Risk in Force			Original Reinsurance in Force			Remaining Reinsurance in Force			Losses Ceded to Date			Original First Layer Retention		Remaining First Layer Retention			Quarter-to-Date		Year-to-Date			Reduction in PMIERs Minimum Required Assets (3)
Radnor Re 2018-1	Jan. 2017 - Dec. 2017		$	—		$	—		$	—		$	—		$	—		$	—	$	—		$	—	$	1,781		$	—
Radnor Re 2019-1	Jan. 2018 - Dec. 2018			6,031,462			1,568,566			473,184			21,467			—			253,643		247,780			9,948		13,447			—
Radnor Re 2019-2	Jan. 2015 - Dec. 2016			—			—			—			—			—			—		—			—		220			—
Radnor Re 2020-1	Jan. 2019 - Aug. 2019			7,496,071			1,939,751			495,889			52,691			—			215,605		214,221			3,497		5,871			—
Radnor Re 2021-1	Aug. 2020 - Mar. 2021			35,742,003			9,110,919			557,911			374,172			—			278,956		278,827			2,984		6,178			289,810
Radnor Re 2021-2	Apr. 2021 - Sep. 2021			39,179,542			10,503,842			439,407			384,452			—			279,415		279,297			4,121		8,274			331,024
Radnor Re 2022-1	Oct. 2021 - Jul. 2022			32,744,576			8,818,357			237,868			237,868			—			303,761		303,761			4,306		8,521			218,839
Total			$	121,193,654		$	31,941,435		$	2,204,259		$	1,070,650		$	—		$	1,331,380	$	1,323,886		$	24,856	$	44,292		$	839,673

Excess of Loss Reinsurance (2)
																							Earned Premiums Ceded
Deal Name	Vintage	Remaining Insurance in Force			Remaining Risk in Force			Original Reinsurance in Force			Remaining Reinsurance in Force			Losses Ceded to Date			Original First Layer Retention		Remaining First Layer Retention				Quarter-to-Date		Year-to-Date			Reduction in PMIERs Minimum Required Assets (3)
XOL 2018-1	Jan. 2017 - Dec. 2017	$	5,200,346		$	1,369,342		$	165,167		$	65,983		$	—		$	678,283	$	421,003			$	309	$	664		$	—
XOL 2019-1	Jan. 2018 - Dec. 2018		6,031,462			1,568,566			118,650			76,144			—			253,643		247,780	(4	)		621		1,234			—
XOL 2020-1	Jan. 2019 - Dec. 2019		7,496,071			1,939,751			55,102			41,162			—			215,605		214,221	(4	)		311		628			—
XOL 2022-1	Oct. 2021 - Dec. 2022		72,971,240			19,674,482			141,992			141,992			—			507,114		507,114				1,615		3,169			138,395
Total		$	91,699,119		$	24,552,141		$	480,911		$	325,281		$	—		$	1,654,645	$	1,390,118			$	2,856	$	5,695		$	138,395
(1) Reinsurance provided by unaffiliated special purpose insurers through the issuance of mortgage insurance-linked notes ("ILNs").
(2) Reinsurance provided by panels of reinsurers.
(3) Represents the reduction in Essent Guaranty, Inc.'s Minimum Required Assets based on our interpretation of the PMIERs.
(4) First layer retentions shown are ILN retention levels as a result of overlapping coverage within the vintage.

Quota Share Reinsurance (2)
															Losses Ceded							Ceding Commission					Earned Premiums Ceded
Year	Ceding Percentage		Remaining Insurance in Force			Remaining Risk in Force			Remaining Ceded Insurance in Force			Remaining Ceded Risk in Force			Quarter-to-Date			Year-to-Date				Quarter-to-Date		Year-to-Date			Quarter-to-Date		Year-to-Date			Reduction in PMIERs Minimum Required Assets (3)
Sep. 2019 - Dec. 2020	(5	)	$	57,938,827		$	14,951,010		$	12,929,459		$	3,298,284		$	(1,015	)	$	(1,744	)		$	2,785	$	5,712		$	4,138	$	8,824		$	198,708
Jan. 2022 - Dec. 2023	20	%		58,669,337			15,850,694			11,733,867			3,170,139			2,388			4,881				1,959		3,938			6,110		12,364			227,761
Jan. 2023 - Dec. 2023	17.5	%		25,838,027			7,133,730			4,521,655			1,248,403			304			332				611		776			1,586		1,962			88,320
Total			$	142,446,191		$	37,935,434		$	29,184,981		$	7,716,826		$	1,677		$	3,469			$	5,355	$	10,426		$	11,834	$	23,150		$	514,789
(5) Reinsurance coverage on 40% of eligible single premium policies and 20% of all other eligible policies.

							Exhibit I
Essent Group Ltd. and Subsidiaries
Supplemental Information
Portfolio Geographic Data
IIF by State
	June 30, 2023			March 31, 2023			June 30, 2022
CA	13.1	%		13.2	%		13.2	%
FL	10.8			10.4			10.0
TX	10.5			10.5			10.2
CO	4.1			4.2			4.2
AZ	3.7			3.6			3.4
WA	3.4			3.4			3.5
GA	3.3			3.2			3.1
IL	2.9			3.0			3.2
VA	2.9			3.0			3.1
NJ	2.9			2.9			3.1
All Others	42.4			42.6			43.0
Total	100.0	%		100.0	%		100.0	%
Gross RIF by State
	June 30, 2023			March 31, 2023			June 30, 2022
CA	13.0	%		13.0	%		13.0	%
FL	11.1			10.7			10.3
TX	10.8			10.8			10.6
CO	4.1			4.1			4.1
AZ	3.8			3.7			3.4
WA	3.4			3.4			3.4
GA	3.4			3.3			3.2
IL	2.8			2.9			3.1
VA	2.8			2.9			3.0
NJ	2.8			2.8			2.9
All Others	42.0			42.4			43.0
Total	100.0	%		100.0	%		100.0	%

																		Exhibit J
Essent Group Ltd. and Subsidiaries
Supplemental Information
Rollforward of Defaults and Reserve for Losses and LAE
U.S. Mortgage Insurance Portfolio
Rollforward of Insured Loans in Default
		Three Months Ended
		2023								2022
		June 30				March 31				December 31				September 30				June 30
Beginning default inventory			12,773				13,433				12,435				12,707				14,923
Plus: new defaults (A)			6,575				7,015				7,505				6,448				5,495
Less: cures			(6,761	)			(7,574	)			(6,425	)			(6,642	)			(7,639	)
Less: claims paid			(96	)			(94	)			(73	)			(68	)			(65	)
Less: rescissions and denials, net			(11	)			(7	)			(9	)			(10	)			(7	)
Ending default inventory			12,480				12,773				13,433				12,435				12,707
(A) New defaults remaining as of June 30, 2023			4,876				2,343				1,797				1,104				559
Cure rate (1)			26	%			67	%			76	%			83	%			90	%
Total amount paid for claims (in thousands)		$	1,890			$	1,959			$	1,441			$	1,261			$	1,137
Average amount paid per claim (in thousands)		$	20			$	21			$	20			$	19			$	17
Severity			58	%			59	%			46	%			47	%			50	%
Rollforward of Reserve for Losses and LAE
		Three Months Ended
		2023								2022
($ in thousands)		June 30				March 31				December 31				September 30				June 30
Reserve for losses and LAE at beginning of period		$	215,957			$	216,390			$	212,392			$	209,829			$	292,818
Less: Reinsurance recoverables			16,357				14,618				13,244				13,657				19,335
Net reserve for losses and LAE at beginning of period			199,600				201,772				199,148				196,172				273,483
Add provision for losses and LAE occurring in:
Current period			31,377				32,693				36,141				20,144				18,720
Prior years			(30,107	)			(32,864	)			(32,012	)			(15,850	)			(94,809	)
Incurred losses and LAE during the period			1,270				(171	)			4,129				4,294				(76,089	)
Deduct payments for losses and LAE occurring in:
Current period			31				—				113				30				80
Prior years			1,909				2,001				1,392				1,288				1,142
Loss and LAE payments during the period			1,940				2,001				1,505				1,318				1,222
Net reserve for losses and LAE at end of period			198,930				199,600				201,772				199,148				196,172
Plus: Reinsurance recoverables			17,958				16,357				14,618				13,244				13,657
Reserve for losses and LAE at end of period		$	216,888			$	215,957			$	216,390			$	212,392			$	209,829
(1) The cure rate is calculated by dividing new defaults remaining as of the reporting date by the original number of new defaults reported in the quarterly period and subtracting that percentage from 100%.

										Exhibit K
Essent Group Ltd. and Subsidiaries
Supplemental Information
Detail of Reserves by Default Delinquency
U.S. Mortgage Insurance Portfolio
		June 30, 2023
		Number of Policies in Default		Percentage of Policies in Default		Amount of Reserves		Percentage of Reserves		Defaulted RIF		Reserves as a Percentage of Defaulted RIF
($ in thousands)
Missed Payments:
Three payments or less		5,581		45	%	$	33,864	17	%	$	388,012	9	%
Four to eleven payments		4,725		38			82,196	41			348,955	24
Twelve or more payments		2,045		16			78,236	39			123,903	63
Pending claims		129		1			5,680	3			6,687	85
Total case reserves		12,480		100	%		199,976	100	%	$	867,557	23	%
IBNR							14,998
LAE							1,914
Total reserves for losses and LAE						$	216,888
Average reserve per default:
Case						$	16.0
Total						$	17.4
Default Rate		1.52	%
		December 31, 2022
		Number of Policies in Default		Percentage of Policies in Default		Amount of Reserves		Percentage of Reserves		Defaulted RIF		Reserves as a Percentage of Defaulted RIF
($ in thousands)
Missed Payments:
Three payments or less		6,154		46	%	$	32,242	16	%	$	411,624	8	%
Four to eleven payments		4,684		35			65,071	33			317,417	21
Twelve or more payments		2,474		18			98,291	49			147,247	67
Pending claims		121		1			3,815	2			4,860	78
Total case reserves		13,433		100	%		199,419	100	%	$	881,148	23	%
IBNR							14,956
LAE							2,015
Total reserves for losses and LAE						$	216,390
Average reserve per default:
Case						$	14.8
Total						$	16.1
Default Rate		1.66	%
		June 30, 2022
		Number of Policies in Default		Percentage of Policies in Default		Amount of Reserves		Percentage of Reserves		Defaulted RIF		Reserves as a Percentage of Defaulted RIF
($ in thousands)
Missed Payments:
Three payments or less		4,036		32	%	$	18,653	10	%	$	250,303	7	%
Four to eleven payments		4,741		37			59,753	31			304,764	20
Twelve or more payments		3,849		30			111,442	57			236,440	47
Pending claims		81		1			3,568	2			3,574	100
Total case reserves		12,707		100	%		193,416	100	%	$	795,081	24	%
IBNR							14,506
LAE							1,907
Total reserves for losses and LAE						$	209,829
Average reserve per default:
Case						$	15.2
Total						$	16.5
Default Rate		1.61	%

													Exhibit L
Essent Group Ltd. and Subsidiaries
Supplemental Information
Investments Available for Sale
Investments Available for Sale by Asset Class
Asset Class		June 30, 2023							December 31, 2022
($ in thousands)		Fair Value				Percent			Fair Value				Percent
U.S. Treasury securities		$	643,586			12.8	%		$	556,438			11.7	%
U.S. agency securities			9,671			0.2				49,058			1.0
U.S. agency mortgage-backed securities			810,108			16.1				783,743			16.5
Municipal debt securities			600,162			12.0				602,690			12.8
Non-U.S. government securities			50,553			1.0				62,399			1.3
Corporate debt securities			1,349,221			26.9				1,414,321			29.8
Residential and commercial mortgage securities			510,350			10.2				511,824			10.8
Asset-backed securities			634,910			12.6				624,561			13.2
Money market funds			413,533			8.2				136,591			2.9
Total investments available for sale		$	5,022,094			100.0	%		$	4,741,625			100.0	%
Investments Available for Sale by Credit Rating
Rating (1)		June 30, 2023							December 31, 2022
($ in thousands)		Fair Value				Percent			Fair Value				Percent
Aaa		$	2,251,533			48.9	%		$	2,122,599			46.2	%
Aa1			113,007			2.5				111,262			2.4
Aa2			305,630			6.6				325,241			7.1
Aa3			230,676			5.0				232,500			5.0
A1			401,624			8.7				396,095			8.6
A2			313,849			6.8				410,163			8.9
A3			263,496			5.7				268,928			5.8
Baa1			237,699			5.2				236,793			5.1
Baa2			241,926			5.2				221,308			4.8
Baa3			161,797			3.5				187,117			4.1
Below Baa3			87,324			1.9				93,028			2.0
Total (2)		$	4,608,561			100.0	%		$	4,605,034			100.0	%
(1) Based on ratings issued by Moody's, if available. S&P or Fitch rating utilized if Moody's not available.
(2) Excludes $413,533 and $136,591 of money market funds at June 30, 2023 and December 31, 2022, respectively.
Investments Available for Sale by Duration and Book Yield
Effective Duration		June 30, 2023							December 31, 2022
($ in thousands)		Fair Value				Percent			Fair Value				Percent
< 1 Year		$	1,511,281			30.1	%		$	1,245,839			26.3	%
1 to < 2 Years			545,993			10.9				534,038			11.3
2 to < 3 Years			408,377			8.1				511,701			10.8
3 to < 4 Years			529,277			10.5				525,683			11.1
4 to < 5 Years			395,775			7.9				400,540			8.4
5 or more Years			1,631,391			32.5				1,523,824			32.1
Total investments available for sale		$	5,022,094			100.0	%		$	4,741,625			100.0	%
Pre-tax investment income yield:
Three months ended			3.46	%						3.03	%
Six months ended June 30, 2023			3.42	%

Holding company net cash and investments available for sale:
($ in thousands)
As of June 30, 2023		$	739,525
As of December 31, 2022		$	685,178

																		Exhibit M
Essent Group Ltd. and Subsidiaries
Supplemental Information
Insurance Company Capital
		2023								2022
		June 30				March 31				December 31				September 30				June 30
($ in thousands)
U.S. Mortgage Insurance Subsidiaries:
Combined statutory capital (1)		$	3,243,086			$	3,207,102			$	3,178,151			$	3,128,681			$	3,062,438
Combined net risk in force (2)		$	34,019,643			$	33,038,825			$	32,265,701			$	31,736,095			$	31,221,406
Risk-to-capital ratios: (3)
Essent Guaranty, Inc.		10.8:1				10.6:1				10.5:1				10.5:1				10.6:1
Essent Guaranty of PA, Inc.		0.5:1				0.5:1				0.6:1				0.6:1				0.6:1
Combined (4)		10.5:1				10.3:1				10.2:1				10.1:1				10.2:1
Essent Guaranty, Inc. PMIERs Data (5):
Available Assets		$	3,245,481			$	3,226,436			$	3,191,047			$	3,147,545			$	3,120,098
Minimum Required Assets			1,991,741				1,917,769				1,832,363				1,759,182				1,869,524
PMIERs excess Available Assets		$	1,253,740			$	1,308,667			$	1,358,684			$	1,388,363			$	1,250,574
PMIERs sufficiency ratio (6)			163	%			168	%			174	%			179	%			167	%
Essent Reinsurance Ltd.:
Stockholder's equity (GAAP basis)		$	1,633,763			$	1,573,013			$	1,478,772			$	1,397,287			$	1,380,067
Net risk in force (2)		$	21,327,762			$	20,305,111			$	19,454,046			$	18,694,500			$	17,758,801
(1) Combined statutory capital equals the sum of statutory capital of Essent Guaranty, Inc. plus Essent Guaranty of PA, Inc., after eliminating the impact of intercompany transactions. Statutory capital is computed based on accounting practices prescribed or permitted by the Pennsylvania Insurance Department and the National Association of Insurance Commissioners Accounting Practices and Procedures Manual.
(2) Net risk in force represents total risk in force, net of reinsurance ceded and net of exposures on policies for which loss reserves have been established.
(3) The risk-to-capital ratio is calculated as the ratio of net risk in force to statutory capital.
(4) The combined risk-to-capital ratio equals the sum of the net risk in force of Essent Guaranty, Inc. and Essent Guaranty of PA, Inc. divided by the combined statutory capital.
(5) Data is based on our interpretation of the PMIERs as of the dates indicated.
(6) PMIERs sufficiency ratio is calculated by dividing Available Assets by Minimum Required Assets.

 

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Investor Relations Contact

Philip Stefano

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855-809-ESNT

ir@essentgroup.com

Source: Essent Group Ltd.

FAQ

What is the net income of Essent Group for Q2 2023?

The net income for Q2 2023 is $172.2 million or $1.61 per diluted share.

What is the dividend declared by Essent Group?

Essent Group declared a quarterly cash dividend of $0.25 per common share.

What is the new insurance written for Q2 2023?

The new insurance written for Q2 2023 is $13.5 billion.

What is the insurance in force as of June 30, 2023?

The insurance in force as of June 30, 2023, is $235.6 billion.

What acquisitions did Essent Group complete?

Essent Group completed the acquisition of Agents National Title Holding Company and Boston National Holdings LLC.

What is the collateralized reinsurance coverage provided by Radnor Re 2023-1?

Radnor Re 2023-1 provides $281.5 million of collateralized reinsurance coverage.