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

Rhea-AI Summary

Essent Group Ltd. (NYSE: ESNT) reported net income of $178.0 million or $1.66 per diluted share for Q3 2023, compared to $178.1 million or $1.66 per diluted share for Q3 2022. The company declared a quarterly cash dividend of $0.25 per common share, payable on December 11, 2023. New insurance written for Q3 2023 was $12.5 billion. Net investment income for Q3 2023 was $47.1 million, up 44% from Q3 2022.

Positive

• Essent reported net income of $178.0 million for Q3 2023, maintaining stability compared to the same period last year.
• The company declared a quarterly cash dividend of $0.25 per common share, indicating a commitment to shareholder returns.
• New insurance written for Q3 2023 was $12.5 billion, reflecting a slight decrease compared to the previous quarter.
• Net investment income for Q3 2023 was $47.1 million, showing a significant increase of 44% compared to Q3 2022.

Negative

• None.

HAMILTON, Bermuda--(BUSINESS WIRE)-- Essent Group Ltd. (NYSE: ESNT) today reported net income for the quarter ended September 30, 2023 of $178.0 million or $1.66 per diluted share, compared to $178.1 million or $1.66 per diluted share for the quarter ended September 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 December 11, 2023, to shareholders of record on December 1, 2023.

“We are pleased with our third quarter 2023 financial results, as we continue to generate high quality earnings and robust returns,” said Mark A. Casale, Chairman and Chief Executive Officer. “The credit quality of our portfolio remains strong. Higher interest rates have translated to higher portfolio persistency and increased investment income, supporting our revenues and growth in book value per share.”

Financial Highlights:

• New insurance written for the third quarter of 2023 was $12.5 billion, compared to $13.5 billion in the second quarter of 2023 and $17.1 billion in the third quarter of 2022.

• Insurance in force as of September 30, 2023 was $238.7 billion, compared to $235.6 billion as of June 30, 2023 and $222.5 billion as of September 30, 2022.

• Net investment income for the third quarter of 2023 was $47.1 million, up 44% from the third quarter of 2022. For the nine months ended September 30, 2023, net investment income was $135.6 million, up 57% from the comparable period in 2022.

• 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 August 8, 2023, Essent closed its 9th insurance-linked note transaction, Radnor Re 2023-1, which provides $281.5 million of collateralized reinsurance coverage for NIW from August 2022 through June 2023.

• In October 2023, the Board approved a share repurchase plan that authorizes the Company to repurchase $250 million of common shares in the open market between January 1, 2024 and December 31, 2025.

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 Ended September 30, 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 September 30,								Nine Months Ended September 30,
(In thousands, except per share amounts)		2023				2022				2023				2022
Revenues:
Direct premiums written	$	270,868			$	239,773			$	759,526			$	692,687
Ceded premiums		(30,294	)			(30,543	)			(103,431	)			(73,384	)
Net premiums written		240,574				209,230				656,095				619,303
Decrease in unearned premiums		6,231				(1,296	)			15,197				15,972
Net premiums earned		246,805				207,934				671,292				635,275
Net investment income		47,072				32,594				135,558				86,613
Realized investment losses, net		(235	)			175				(2,312	)			(7,648	)
(Loss) income from other invested assets		(3,143	)			9,617				(10,697	)			36,275
Other income		5,609				11,447				18,641				20,272
Total revenues		296,108				261,767				812,482				770,787
Losses and expenses:
Provision (benefit) for losses and LAE		10,822				4,252				11,902				(178,805	)
Other underwriting and operating expenses		54,814				42,144				145,183				124,838
Premiums retained by agents		13,175				—				13,175				—
Interest expense		7,854				4,450				22,184				9,563
Total losses and expenses		86,665				50,846				192,444				(44,404	)
Income before income taxes		209,443				210,921				620,038				815,191
Income tax expense		31,484				32,870				99,019				131,204
Net income	$	177,959			$	178,051			$	521,019			$	683,987
Earnings per share:
Basic	$	1.68			$	1.67			$	4.90			$	6.37
Diluted		1.66				1.66				4.86				6.35
Weighted average shares outstanding:
Basic		105,979				106,870				106,387				107,314
Diluted		107,025				107,337				107,232				107,732
Net income	$	177,959			$	178,051			$	521,019			$	683,987
Other comprehensive income (loss):
Change in unrealized depreciation of investments		(76,248	)			(137,010	)			(53,593	)			(474,284	)
Total other comprehensive loss		(76,248	)			(137,010	)			(53,593	)			(474,284	)
Comprehensive income	$	101,711			$	41,041			$	467,426			$	209,703

					Exhibit B
Essent Group Ltd. and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)
	September 30,				December 31,
(In thousands, except per share amounts)		2023				2022
Assets
Investments
Fixed maturities available for sale, at fair value	$	4,241,757			$	4,489,598
Short-term investments available for sale, at fair value		755,931				252,027
Total investments available for sale		4,997,688				4,741,625
Other invested assets		272,619				257,941
Total investments		5,270,307				4,999,566
Cash		96,779				81,240
Accrued investment income		36,651				33,162
Accounts receivable		68,332				57,399
Deferred policy acquisition costs		9,375				9,910
Property and equipment		40,710				19,571
Prepaid federal income tax		461,386				418,460
Goodwill and intangible assets, net		64,271				—
Other assets		46,389				104,489
Total assets	$	6,094,200			$	5,723,797
Liabilities and Stockholders' Equity
Liabilities
Reserve for losses and LAE	$	241,333			$	216,464
Unearned premium reserve		147,712				162,887
Net deferred tax liability		329,721				356,810
Credit facility borrowings, net of deferred costs		421,656				420,864
Other accrued liabilities		145,771				104,463
Total liabilities		1,286,193				1,261,488
Commitments and contingencies
Stockholders' Equity
Common shares, $0.015 par value:
Authorized - 233,333; issued and outstanding - 106,887 shares in 2023 and 107,683 shares in 2022		1,603				1,615
Additional paid-in capital		1,309,717				1,350,377
Accumulated other comprehensive loss		(436,383	)			(382,790	)
Retained earnings		3,933,070				3,493,107
Total stockholders' equity		4,808,007				4,462,309
Total liabilities and stockholders' equity	$	6,094,200			$	5,723,797
Return on average equity (1)		15.0	%			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
Consolidated Historical Quarterly Data
		2023												2022
Selected Income Statement Data		September 30				June 30				March 31				December 31				September 30
(In thousands, except per share amounts)
Revenues:
Net premiums earned:
U.S. Mortgage Insurance Portfolio		$	209,351			$	195,502			$	196,565			$	192,670			$	194,272
GSE and other risk share			16,850				17,727				14,693				14,582				13,662
Title insurance			20,604				—				—				—				—
Net premiums earned			246,805				213,229				211,258				207,252				207,934
Net investment income			47,072				45,250				43,236				37,796				32,594
Realized investment (losses) gains, net			(235	)			(1,589	)			(488	)			(5,524	)			175
(Loss) income from other invested assets			(3,143	)			(4,852	)			(2,702	)			(7,599	)			9,617
Other income (loss) (1)			5,609				8,090				4,942				(1,888	)			11,447
Total revenues			296,108				260,128				256,246				230,037				261,767
Losses and expenses:
Provision (benefit) for losses and LAE			10,822				1,260				(180	)			4,101				4,252
Other underwriting and operating expenses			54,814				42,174				48,195				46,895				42,144
Premiums retained by agents			13,175				—				—				—				—
Interest expense			7,854				7,394				6,936				6,045				4,450
Total losses and expenses			86,665				50,828				54,951				57,041				50,846
Income before income taxes			209,443				209,300				201,295				172,996				210,921
Income tax expense (2)			31,484				37,067				30,468				25,630				32,870
Net income		$	177,959			$	172,233			$	170,827			$	147,366			$	178,051
Earnings per share:
Basic		$	1.68			$	1.62			$	1.60			$	1.38			$	1.67
Diluted			1.66				1.61				1.59				1.37				1.66
Weighted average shares outstanding:
Basic			105,979				106,249				106,943				106,881				106,870
Diluted			107,025				107,093				107,585				107,419				107,337
Book value per share		$	44.98			$	44.24			$	43.18			$	41.44			$	39.87
Return on average equity (annualized)			14.9	%			14.7	%			15.0	%			13.5	%			16.6	%
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)			7.07	%			6.87	%			6.52	%			6.02	%			4.39	%
Debt-to-capital			8.12	%			8.24	%			8.38	%			8.70	%			9.01	%
(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 September 30, 2023, June 30, 2023, March 31, 2023, December 31, 2022, and September 30, 2022 was ($898), $2,726, ($368), ($6,515), and $5,177, respectively.
(2) Income tax expense for the quarters ended September 30, 2023, June 30, 2023, March 31, 2023, December 31, 2022 and September 30, 2022 includes ($763), $(888), ($368), ($4,122), and $2,925 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.

										Exhibit D
Essent Group Ltd. and Subsidiaries
Supplemental Information
U.S Mortgage Insurance Portfolio Historical Quarterly Data
		2023												2022
Other Data:		September 30				June 30				March 31				December 31				September 30
($ in thousands)
U.S. Mortgage Insurance Portfolio
Flow:
New insurance written		$	12,505,823			$	13,498,080			$	12,893,789			$	13,011,432			$	17,112,017
New risk written			3,458,467				3,726,513				3,548,015				3,522,726				4,570,699
Bulk:
New insurance written		$	—			$	—			$	—			$	—			$	—
New risk written			—				—				—				—				—
Total:
New insurance written		$	12,505,823			$	13,498,080			$	12,893,789			$	13,011,432			$	17,112,017
New risk written		$	3,458,467			$	3,726,513			$	3,548,015			$	3,522,726			$	4,570,669
Average insurance in force		$	237,270,093			$	233,484,941			$	228,885,174			$	224,840,675			$	219,280,350
Insurance in force (end of period)		$	238,661,612			$	235,649,884			$	231,537,417			$	227,062,055			$	222,542,569
Gross risk in force (end of period) (1)		$	63,605,057			$	62,403,400			$	60,879,979			$	59,276,489			$	57,743,091
Risk in force (end of period)		$	53,920,308			$	53,290,643			$	51,469,312			$	49,903,626			$	48,690,571
Policies in force			825,248				821,690				815,751				808,596				800,745
Weighted average coverage (2)			26.7	%			26.5	%			26.3	%			26.1	%			25.9	%
Annual persistency			86.6	%			85.8	%			84.4	%			82.1	%			77.9	%
Loans in default (count)			13,391				12,480				12,773				13,433				12,435
Percentage of loans in default			1.62	%			1.52	%			1.57	%			1.66	%			1.55	%
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)			—	%			—	%			—	%			—	%			0.01	%
Gross average premium rate			0.40	%			0.40	%			0.40	%			0.40	%			0.41	%
Ceded premiums			(0.05	%)			(0.07	%)			(0.06	%)			(0.06	%)			(0.06	%)
Net average premium rate			0.35	%			0.33	%			0.34	%			0.34	%			0.35	%
(1) Gross risk in force includes risk ceded under third-party reinsurance.
(2) Weighted average coverage is calculated by dividing end of period gross risk in force by end of period insurance in force.
(3) Base average premium rate is calculated by dividing annualized base premiums earned by average insurance in force for the period.
(4) Single premium cancellations is calculated by dividing annualized premiums on the cancellation of non-refundable single premium policies by average insurance in force for the period.

																			Exhibit E
Essent Group Ltd. and Subsidiaries
Supplemental Information - U.S. Mortgage Insurance Portfolio
New Insurance Written: Flow
NIW by Credit Score
	Three Months Ended												Nine Months Ended
	September 30, 2023						September 30, 2022						September 30, 2023						September 30, 2022
($ in thousands)
>=760	$	5,212,343		41.8	%		$	6,976,123		40.8	%		$	15,473,191		39.8	%		$	20,942,108		41.8	%
740-759		2,205,066		17.6				2,965,115		17.3				7,031,821		18.1				8,499,739		17.0
720-739		1,911,320		15.3				2,788,573		16.3				6,310,564		16.2				7,885,166		15.8
700-719		1,867,510		14.9				2,277,251		13.3				5,892,704		15.1				6,452,721		12.9
680-699		891,471		7.1				1,476,982		8.6				3,024,347		7.8				4,409,944		8.8
<=679		418,113		3.3				627,973		3.7				1,165,065		3.0				1,859,956		3.7
Total	$	12,505,823		100.0	%		$	17,112,017		100.0	%		$	38,897,692		100.0	%		$	50,049,634		100.0	%
Weighted average credit score		747						746						746						747
NIW by LTV
	Three Months Ended												Nine Months Ended
	September 30, 2023						September 30, 2022						September 30, 2023						September 30, 2022
($ in thousands)
85.00% and below	$	849,250		6.7	%		$	1,618,912		9.5	%		$	2,801,011		7.2	%		$	4,556,205		9.1	%
85.01% to 90.00%		2,445,924		19.6				4,753,686		27.8				7,951,062		20.4				13,657,345		27.3
90.01% to 95.00%		6,614,050		52.9				9,171,095		53.5				21,383,696		55.0				26,461,665		52.9
95.01% and above		2,596,599		20.8				1,568,324		9.2				6,761,923		17.4				5,374,419		10.7
Total	$	12,505,823		100.0	%		$	17,112,017		100.0	%		$	38,897,692		100.0	%		$	50,049,634		100.0	%
Weighted average LTV		93	%					93	%					93	%					93	%
NIW by Product
	Three Months Ended												Nine Months Ended
	September 30, 2023						September 30, 2022						September 30, 2023						September 30, 2022
Single Premium policies				2.8	%					8.2	%					3.8	%					5.9	%
Monthly Premium policies				97.2						91.8						96.2						94.1
				100.0	%					100.0	%					100.0	%					100.0	%
NIW by Purchase vs. Refinance
	Three Months Ended												Nine Months Ended
	September 30, 2023						September 30, 2022						September 30, 2023						September 30, 2022
Purchase				99.0	%					98.7	%					98.8	%					97.2	%
Refinance				1.0						1.3						1.2						2.8
				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		September 30, 2023						June 30, 2023						September 30, 2022
($ in thousands)
>=760		$	97,027,348		40.7	%		$	95,925,520		40.8	%		$	92,309,692		41.5	%
740-759			41,362,480		17.3				40,733,799		17.3				37,821,201		17.0
720-739			37,297,809		15.6				36,791,104		15.6				33,910,646		15.2
700-719			31,674,346		13.3				30,970,132		13.1				28,263,518		12.7
680-699			19,850,176		8.3				19,667,866		8.3				18,351,570		8.2
<=679			11,449,453		4.8				11,561,463		4.9				11,885,942		5.4
Total		$	238,661,612		100.0	%		$	235,649,884		100.0	%		$	222,542,569		100.0	%
Weighted average credit score			746						746						746
Gross RIF by FICO score		September 30, 2023						June 30, 2023						September 30, 2022
($ in thousands)
>=760		$	25,594,262		40.1	%		$	25,138,762		40.3	%		$	23,743,335		41.1	%
740-759			11,165,727		17.6				10,922,780		17.5				9,920,331		17.2
720-739			10,090,889		15.9				9,896,425		15.9				8,934,327		15.5
700-719			8,568,811		13.5				8,319,353		13.3				7,412,542		12.8
680-699			5,327,434		8.4				5,248,349		8.4				4,801,986		8.3
<=679			2,857,934		4.5				2,877,731		4.6				2,930,570		5.1
Total		$	63,605,057		100.0	%		$	62,403,400		100.0	%		$	57,743,091		100.0	%
Portfolio by LTV
IIF by LTV		September 30, 2023						June 30, 2023						September 30, 2022
($ in thousands)
85.00% and below		$	21,226,685		8.9	%		$	22,427,649		9.5	%		$	25,121,995		11.3	%
85.01% to 90.00%			63,374,562		26.6				63,562,258		27.0				62,963,331		28.3
90.01% to 95.00%			118,461,030		49.6				115,768,826		49.1				103,794,020		46.6
95.01% and above			35,599,335		14.9				33,891,151		14.4				30,663,223		13.8
Total		$	238,661,612		100.0	%		$	235,649,884		100.0	%		$	222,542,569		100.0	%
Weighted average LTV			93	%					93	%					92	%
Gross RIF by LTV		September 30, 2023						June 30, 2023						September 30, 2022
($ in thousands)
85.00% and below		$	2,525,753		4.0	%		$	2,667,981		4.3	%		$	2,975,898		5.2	%
85.01% to 90.00%			15,566,095		24.5				15,583,198		25.0				15,317,449		26.5
90.01% to 95.00%			34,848,762		54.8				34,026,320		54.5				30,388,328		52.6
95.01% and above			10,664,447		16.7				10,125,901		16.2				9,061,416		15.7
Total		$	63,605,057		100.0	%		$	62,403,400		100.0	%		$	57,743,091		100.0	%
Portfolio by Loan Amortization Period
IIF by Loan Amortization Period		September 30, 2023						June 30, 2023						September 30, 2022
($ in thousands)
FRM 30 years and higher		$	232,186,999		97.3	%		$	228,745,641		97.1	%		$	214,688,363		96.5	%
FRM 20-25 years			1,910,610		0.8				2,124,690		0.9				2,859,734		1.3
FRM 15 years			1,719,467		0.7				1,953,448		0.8				2,903,355		1.3
ARM 5 years and higher			2,844,536		1.2				2,826,105		1.2				2,091,117		0.9
Total		$	238,661,612		100.0	%		$	235,649,884		100.0	%		$	222,542,569		100.0	%

																		Exhibit G
Essent Group Ltd. and Subsidiaries
Supplemental Information
Other Risk in Force
		2023												2022
($ in thousands)		September 30				June 30				March 31				December 31				September 30
GSE and other risk share (1):
Risk in Force		$	2,247,393			$	2,276,702			$	2,098,033			$	2,030,571			$	2,026,895
Reserve for losses and LAE		$	54			$	55			$	65			$	74			$	102
Weighted average credit score			749				749				749				749				748
Weighted average LTV			82	%			83	%			83	%			83	%			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 H
Essent Group Ltd. and Subsidiaries
Supplemental Information
U.S. Mortgage Insurance Portfolio Vintage Data
September 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	$	1,598,284	2.6	%	9,938	4.32	%	73.3	%	62.4	%	7.0	%	15.1	%	43.4	%	2.5	%	392	3.94	%
2015		26,193,656		1,521,374	5.8		9,232	4.21		84.2		74.8		4.6		17.7		39.6		2.5		327	3.54
2016		34,949,319		3,234,730	9.3		18,705	3.89		87.8		80.6		12.0		15.9		42.4		2.3		560	2.99
2017		43,858,322		5,031,656	11.5		29,934	4.27		91.3		71.7		20.7		20.4		37.8		3.5		1,176	3.93
2018		47,508,525		5,805,471	12.2		32,505	4.79		94.7		71.3		26.0		21.7		32.6		4.6		1,484	4.57
2019		63,569,183		12,907,957	20.3		61,266	4.22		88.1		68.1		24.5		18.8		35.5		4.4		1,813	2.96
2020		107,944,065		49,162,995	45.5		187,990	3.19		68.0		56.5		13.0		10.8		45.6		3.3		2,373	1.26
2021		84,218,250		64,048,451	76.1		208,074	3.08		86.3		62.6		15.3		13.9		40.5		7.1		3,038	1.46
2022		63,061,262		57,742,660	91.6		163,804	5.07		97.8		65.2		11.2		12.7		39.7		19.9		1,962	1.20
2023 (through September 30)		38,897,692		37,608,034	96.7		103,800	6.51		98.8		72.6		17.8		10.9		39.1		11.3		266	0.26
Total	$	570,869,125	$	238,661,612	41.8		825,248	4.28		87.6		64.6		14.9		13.1		40.7		4.3		13,391	1.62
(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
September 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			5,730,888		1,496,891			473,184			21,467			—			253,643		246,939			(40	)		13,407			—
Radnor Re 2019-2	Jan. 2015 - Dec. 2016			—		—			—			—			—			—		—			—			220			—
Radnor Re 2020-1	Jan. 2019 - Aug. 2019			7,185,440		1,864,143			495,889			50,596			—			215,605		213,798			(82	)		5,788			—
Radnor Re 2021-1	Aug. 2020 - Mar. 2021			33,594,368		8,642,916			557,911			339,120			—			278,956		278,796			2,615			8,794			261,926
Radnor Re 2021-2	Apr. 2021 - Sep. 2021			37,420,329		10,079,502			439,407			361,449			—			279,415		279,231			3,887			12,161			285,689
Radnor Re 2022-1	Oct. 2021 - Jul. 2022			32,132,944		8,669,748			237,868			237,868			—			303,761		303,660			4,260			12,781			218,839
Radnor Re 2023-1	Aug. 2022 - Jun. 2023			31,014,596		8,478,658			281,462			281,462			—			281,463		281,463			3,118			3,118			266,826
Total			$	147,078,565	$	39,231,858		$	2,485,721		$	1,291,962		$	—		$	1,612,843	$	1,603,887		$	13,758		$	58,050		$	1,033,280

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	$	4,920,622	$	1,297,126		$	165,167		$	57,250		$	—		$	678,283	$	421,003			$	291	$	955		$	—
XOL 2019-1	Jan. 2018 - Dec. 2018		5,730,888		1,496,891			118,650			76,144			—			253,643		246,939	(4)			627		1,861			—
XOL 2020-1	Jan. 2019 - Dec. 2019		7,185,440		1,864,143			55,102			38,579			—			215,605		213,798	(4)			303		931			—
XOL 2022-1	Oct. 2021 - Dec. 2022		71,671,369		19,351,146			141,992			141,992			—			507,114		506,301				1,611		4,779			137,913
Total		$	89,508,319	$	24,009,306		$	480,911		$	313,965		$	—		$	1,654,645	$	1,388,041			$	2,832	$	8,526		$	137,913

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	)	$	54,596,089	$	14,208,745		$	12,218,215		$	3,142,000		$	(464	)	$	(2,208	)		$	2,631	$	8,343		$	4,403	$	13,227		$	187,406
Jan. 2022 - Dec. 2023	20	%		57,688,314		15,600,877			11,537,663			3,120,175			2,592			7,473				1,942		5,880			6,282		18,645			229,964
Jan. 2023 - Dec. 2023	17.5	%		37,561,195		10,380,842			6,573,209			1,816,647			791			1,123				1,061		1,837			3,019		4,981			129,422
Total			$	149,845,598	$	40,190,464		$	30,329,087		$	8,078,822		$	2,919		$	6,388			$	5,634	$	16,060		$	13,704	$	36,853		$	546,792
(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
	September 30, 2023			June 30, 2023			September 30, 2022
CA	13.0	%		13.1	%		13.2	%
FL	11.0			10.8			10.1
TX	10.5			10.5			10.3
CO	4.1			4.1			4.1
AZ	3.7			3.7			3.5
WA	3.4			3.4			3.4
GA	3.4			3.3			3.1
NC	2.8			2.8			2.7
IL	2.8			2.9			3.1
VA	2.8			2.9			3.1
All Others	42.5			42.5			43.4
Total	100.0	%		100.0	%		100.0	%
Gross RIF by State
	September 30, 2023			June 30, 2023			September 30, 2022
CA	12.9	%		13.0	%		13.0	%
FL	11.3			11.1			10.5
TX	10.8			10.8			10.6
CO	4.0			4.1			4.1
AZ	3.8			3.8			3.5
GA	3.5			3.4			3.2
WA	3.4			3.4			3.3
NC	2.9			2.8			2.7
IL	2.8			2.8			3.1
VA	2.8			2.8			3.0
All Others	41.8			42.0			43.0
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
		September 30				June 30				March 31				December 31				September 30
Beginning default inventory			12,480				12,773				13,433				12,435				12,707
Plus: new defaults (A)			7,953				6,575				7,015				7,505				6,448
Less: cures			(6,902	)			(6,761	)			(7,574	)			(6,425	)			(6,642	)
Less: claims paid			(129	)			(96	)			(94	)			(73	)			(68	)
Less: rescissions and denials, net			(11	)			(11	)			(7	)			(9	)			(10	)
Ending default inventory			13,391				12,480				12,773				13,433				12,435
(A) New defaults remaining as of September 30, 2023			5,664				2,630				1,520				1,199				672
Cure rate (1)			29	%			60	%			78	%			84	%			90	%
Total amount paid for claims (in thousands)		$	2,956			$	1,890			$	1,959			$	1,441			$	1,261
Average amount paid per claim (in thousands)		$	23			$	20			$	21			$	20			$	19
Severity			66	%			58	%			59	%			46	%			47	%
Rollforward of Reserve for Losses and LAE
		Three Months Ended
		2023												2022
($ in thousands)		September 30				June 30				March 31				December 31				September 30
Reserve for losses and LAE at beginning of period		$	216,888			$	215,957			$	216,390			$	212,392			$	209,829
Less: Reinsurance recoverables			17,958				16,357				14,618				13,244				13,657
Net reserve for losses and LAE at beginning of period			198,930				199,600				201,772				199,148				196,172
Add provision for losses and LAE occurring in:
Current period			35,609				31,377				32,693				36,141				20,144
Prior years			(25,533	)			(30,107	)			(32,864	)			(32,012	)			(15,850	)
Incurred losses and LAE during the period			10,076				1,270				(171	)			4,129				4,294
Deduct payments for losses and LAE occurring in:
Current period			156				31				—				113				30
Prior years			2,889				1,909				2,001				1,392				1,288
Loss and LAE payments during the period			3,045				1,940				2,001				1,505				1,318
Net reserve for losses and LAE at end of period			205,961				198,930				199,600				201,772				199,148
Plus: Reinsurance recoverables			20,656				17,958				16,357				14,618				13,244
Reserve for losses and LAE at end of period		$	226,617			$	216,888			$	215,957			$	216,390			$	212,392
(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
		September 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		6,383		48	%	$	38,412	18	%	$	448,039	9	%
Four to eleven payments		4,877		36			87,025	42			369,711	24
Twelve or more payments		1,989		15			77,369	37			126,317	61
Pending claims		142		1			6,076	3			6,924	88
Total case reserves		13,391		100	%		208,882	100	%	$	950,991	22	%
IBNR							15,666
LAE							2,069
Total reserves for losses and LAE						$	226,617
Average reserve per default:
Case						$	15.6
Total						$	16.9
Default Rate		1.62	%
		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	%
		September 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		4,971		40	%	$	22,279	12	%	$	313,531	7	%
Four to eleven payments		4,443		36			55,431	28			292,644	19
Twelve or more payments		2,923		23			114,250	58			174,589	65
Pending claims		98		1			3,879	2			4,611	84
Total case reserves		12,435		100	%		195,839	100	%	$	785,375	25	%
IBNR							14,688
LAE							1,865
Total reserves for losses and LAE						$	212,392
Average reserve per default:
Case						$	15.7
Total						$	17.1
Default Rate		1.55	%

													Exhibit M
Essent Group Ltd. and Subsidiaries
Supplemental Information
Investments Available for Sale
Investments Available for Sale by Asset Class
Asset Class		September 30, 2023							December 31, 2022
($ in thousands)		Fair Value				Percent			Fair Value				Percent
U.S. Treasury securities		$	879,185			17.6	%		$	556,438			11.7	%
U.S. agency securities			7,180			0.1				49,058			1.0
U.S. agency mortgage-backed securities			750,938			15.0				783,743			16.5
Municipal debt securities			562,510			11.3				602,690			12.8
Non-U.S. government securities			48,571			1.0				62,399			1.3
Corporate debt securities			1,280,433			25.6				1,414,321			29.8
Residential and commercial mortgage securities			493,693			9.9				511,824			10.8
Asset-backed securities			614,818			12.3				624,561			13.2
Money market funds			360,360			7.2				136,591			2.9
Total investments available for sale		$	4,997,688			100.0	%		$	4,741,625			100.0	%
Investments Available for Sale by Credit Rating
Rating (1)		September 30, 2023							December 31, 2022
($ in thousands)		Fair Value				Percent			Fair Value				Percent
Aaa		$	2,393,047			51.6	%		$	2,122,599			46.2	%
Aa1			108,593			2.3				111,262			2.4
Aa2			300,510			6.5				325,241			7.1
Aa3			210,967			4.5				232,500			5.0
A1			381,479			8.2				396,095			8.6
A2			314,587			6.8				410,163			8.9
A3			235,490			5.1				268,928			5.8
Baa1			227,543			4.9				236,793			5.1
Baa2			231,612			5.0				221,308			4.8
Baa3			151,078			3.3				187,117			4.1
Below Baa3			82,422			1.8				93,028			2.0
Total (2)		$	4,637,328			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 $360,360 and $136,591 of money market funds at September 30, 2023 and December 31, 2022, respectively.
Investments Available for Sale by Duration and Book Yield
Effective Duration		September 30, 2023							December 31, 2022
($ in thousands)		Fair Value				Percent			Fair Value				Percent
< 1 Year		$	1,713,199			34.3	%		$	1,245,839			26.3	%
1 to < 2 Years			484,032			9.7				534,038			11.3
2 to < 3 Years			456,987			9.1				511,701			10.8
3 to < 4 Years			418,831			8.4				525,683			11.1
4 to < 5 Years			389,441			7.8				400,540			8.4
5 or more Years			1,535,198			30.7				1,523,824			32.1
Total investments available for sale		$	4,997,688			100.0	%		$	4,741,625			100.0	%
Pre-tax investment income yield:
Three months ended			3.55	%						3.03	%
Nine months ended September 30, 2023			3.47	%

Holding company net cash and investments available for sale:
($ in thousands)
As of September 30, 2023		$	648,658
As of December 31, 2022		$	685,178

																		Exhibit N
Essent Group Ltd. and Subsidiaries
Supplemental Information
U.S. Mortgage Insurance Company Capital
		2023												2022
		September 30				June 30				March 31				December 31				September 30
($ in thousands)
U.S. Mortgage Insurance Subsidiaries:
Combined statutory capital (1)		$	3,309,522			$	3,243,086			$	3,207,102			$	3,178,151			$	3,128,681
Combined net risk in force (2)		$	34,203,678			$	34,019,643			$	33,038,825			$	32,265,701			$	31,736,095
Risk-to-capital ratios: (3)
Essent Guaranty, Inc.		10.7:1				10.8:1				10.6:1				10.5:1				10.5:1
Essent Guaranty of PA, Inc.		0.5:1				0.5:1				0.5:1				0.6:1				0.6:1
Combined (4)		10.3:1				10.5:1				10.3:1				10.2:1				10.1:1
Essent Guaranty, Inc. PMIERs Data (5):
Available Assets		$	3,318,179			$	3,245,481			$	3,226,436			$	3,191,047			$	3,147,545
Minimum Required Assets			1,910,659				1,991,741				1,917,769				1,832,363				1,759,182
PMIERs excess Available Assets		$	1,407,520			$	1,253,740			$	1,308,667			$	1,358,684			$	1,388,363
PMIERs sufficiency ratio (6)			174	%			163	%			168	%			174	%			179	%
Essent Reinsurance Ltd.:
Stockholder's equity (GAAP basis)		$	1,684,122			$	1,633,763			$	1,573,013			$	1,478,772			$	1,397,287
Net risk in force (2)		$	21,739,419			$	21,327,762			$	20,305,111			$	19,454,046			$	18,694,500
(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
	September 30				June 30				March 31				December 31				September 30
Loss Ratio (1)		4.4	%			0.6	%			(0.1	)%			2.0	%			2.0	%
Expense Ratio (2)		27.3	%			19.8	%			22.8	%			22.6	%			20.3	%
Combined Ratio		31.7	%			20.4	%			22.7	%			24.6	%			22.3	%
We believe that loss, expense and combined ratios are important measures of our financial performance. As a result of the July 1, 2023 acquisition of Agents National Title and Boston National Title (collectively "Title"), the consolidated loss, expense and combined ratios ("Consolidated Ratios") for the three and nine months ended September 30, 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 and nine months ended September 30, 2023, in accordance with Regulation G:
	Three Months Ended September 30, 2023												Nine Months Ended September 30, 2023
	Consolidated				Acquired Title				Consolidated Excluding Title				Consolidated				Acquired Title				Consolidated Excluding Title
($ in thousands)
Revenues:
Net premiums earned	$	246,805			$	20,604			$	226,201			$	671,292			$	20,604			$	650,688
Net investment income		47,072				405				46,667				135,558				405				135,153
Realized investment losses, net		(235	)			—				(235	)			(2,312	)			—				(2,312	)
(Loss) income from other invested assets		(3,143	)			—				(3,143	)			(10,697	)			—				(10,697	)
Settlement services (3)		2,037				2,037				—				2,037				2,037				—
Other income		3,572				404				3,168				16,604				404				16,200
Total revenues		296,108				23,450				272,658				812,482				23,450				789,032
Losses and expenses:
Provision (benefit) for losses and LAE		10,822				768				10,054				11,902				768				11,134
Other underwriting and operating expenses		54,814				13,466				41,348				145,183				13,466				131,717
Premiums retained by agents		13,175				13,175				—				13,175				13,175				—
Interest expense		7,854				—				7,854				22,184				—				22,184
Total losses and expenses		86,665				27,409				59,256				192,444				27,409				165,035
Loss ratio (1)		4.4	%			3.4	%			4.4	%			1.8	%			3.4	%			1.7	%
Expense ratio (2)		27.3	%			117.7	%			18.3	%			23.5	%			117.7	%			20.2	%
Combined ratio		31.7	%			121.1	%			22.7	%			25.3	%			121.1	%			21.9	%
(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.

 

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Media Contact

610.230.0556

media@essentgroup.com

Investor Relations Contact

Philip Stefano

Vice President, Investor Relations

855-809-ESNT

ir@essentgroup.com

Source: Essent Group Ltd.

FAQ

What is the ticker symbol for Essent Group Ltd.?

The ticker symbol for Essent Group Ltd. is ESNT.

What was the net income for Q3 2023?

The net income for Q3 2023 was $178.0 million.

What is the dividend amount per common share?

The dividend amount per common share is $0.25.

When is the dividend payable?

The dividend is payable on December 11, 2023.

What was the new insurance written for Q3 2023?

The new insurance written for Q3 2023 was $12.5 billion.

What was the net investment income for Q3 2023?

The net investment income for Q3 2023 was $47.1 million.