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

Rhea-AI Summary

Essent Group reported Q3 2024 net income of $176.2 million ($1.65 per diluted share), compared to $178.0 million ($1.66 per diluted share) in Q3 2023. New insurance written was $12.5 billion, consistent with previous quarters. Insurance in force reached $243.0 billion as of September 30, 2024. Net investment income for the first nine months of 2024 increased 22% to $165.5 million. The company completed its 10th mortgage insurance-linked note transaction, Radnor Re 2024-1, providing $363 million in reinsurance coverage. The Board declared a quarterly dividend of $0.28 per share, payable December 11, 2024.

Positive

• Net investment income grew 22% year-over-year to $165.5 million
• Insurance in force increased to $243.0 billion from $238.7 billion year-over-year
• Secured $363 million in reinsurance coverage through Radnor Re 2024-1 transaction

Negative

• Slight decrease in net income from $178.0 million in Q3 2023 to $176.2 million in Q3 2024
• EPS declined from $1.66 to $1.65 year-over-year

Insights

Financial Analyst

The Q3 2024 results demonstrate solid financial performance with $176.2 million in net income, nearly matching last year's $178.0 million. Key positives include $12.5 billion in new insurance written and growth in insurance in force to $243.0 billion. The 22% increase in net investment income to $165.5 million for the nine months shows effective portfolio management amid high interest rates.

The successful closure of Radnor Re 2024-1, providing $363 million in reinsurance coverage, strengthens risk management. The maintained quarterly dividend of $0.28 per share reflects financial stability and commitment to shareholder returns. High interest rates are positively impacting persistency, contributing to stable insurance in force growth and predictable revenue streams.

HAMILTON, Bermuda--(BUSINESS WIRE)-- Essent Group Ltd. (NYSE: ESNT) today reported net income for the quarter ended September 30, 2024 of $176.2 million or $1.65 per diluted share, compared to $178.0 million or $1.66 per diluted share for the quarter ended September 30, 2023.

Essent also announced today that its Board of Directors has declared a quarterly cash dividend of $0.28 per common share. The dividend is payable on December 11, 2024, to shareholders of record on December 2, 2024.

“We are pleased with our third quarter financial results, as we continue to generate high quality earnings,” said Mark A. Casale, Chairman and Chief Executive Officer. “Our results continue to benefit from the impact of interest rates on persistency and the growth in our investment portfolio. Our performance for the quarter demonstrates the strength of our operating model in producing strong returns and growing book value per share.”

Financial Highlights:

• New insurance written for the third quarter of 2024 was $12.5 billion, consistent with the second quarter of 2024 and the third quarter of 2023.

• Insurance in force as of September 30, 2024 was $243.0 billion, compared to $240.7 billion as of June 30, 2024 and $238.7 billion as of September 30, 2023.

• Net investment income for the nine months ended September 30, 2024 was $165.5 million, up 22% from the comparable period in 2023.

• In September, Essent closed its 10^th mortgage insurance-linked note transaction, Radnor Re 2024-1, which provides $363 million of collateralized reinsurance coverage for new insurance written from July 2023 through July 2024.

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 or the loss of a significant customer; lenders or investors seeking alternatives to private mortgage insurance; an increase in the number of loans insured through Federal government mortgage insurance programs; decline in the volume of low down payment mortgage originations; uncertainty of loss reserve estimates; decrease in the length of time our insurance policies are in force; deteriorating economic conditions; and other risks and factors described in Part I, Item 1A “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2023 filed with the Securities and Exchange Commission on February 16, 2024, as subsequently updated through other reports we file with the Securities and Exchange Commission. Any forward-looking information presented herein is made only as of the date of this press release, and we do not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

About the Company:

Essent Group Ltd. (NYSE: ESNT) is a Bermuda-based holding company (collectively with its subsidiaries, “Essent”) offering private mortgage insurance, reinsurance, and title insurance and settlement services to serve the housing finance industry. 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, 2024
Exhibit A		Condensed Consolidated Statements of Comprehensive Income (Unaudited)
Exhibit B		Condensed Consolidated Balance Sheets (Unaudited)
Exhibit C		Consolidated Historical Quarterly Data
Exhibit D		U.S. Mortgage Insurance Portfolio Historical Quarterly Data
Exhibit E		New Insurance Written - U.S. Mortgage Insurance Portfolio
Exhibit F		Insurance in Force and Risk in Force - U.S. Mortgage Insurance Portfolio
Exhibit G		Other Risk in Force
Exhibit H		U.S. Mortgage Insurance Portfolio Vintage Data
Exhibit I		U.S. Mortgage Insurance Portfolio Reinsurance Vintage Data
Exhibit J		U.S. Mortgage Insurance Portfolio Geographic Data
Exhibit K		Rollforward of Defaults and Reserve for Losses and LAE - U.S. Mortgage Insurance Portfolio
Exhibit L		Detail of Reserves by Default Delinquency - U.S. Mortgage Insurance Portfolio
Exhibit M		Investments Available for Sale
Exhibit N		U.S. Mortgage Insurance Company Capital
Exhibit O		Ratios and Reconciliation of Non-GAAP Financial Measures

													Exhibit A
Essent Group Ltd. and Subsidiaries
Condensed Consolidated Statements of Comprehensive Income (Unaudited)
	Three Months Ended September 30,								Nine Months Ended September 30,
(In thousands, except per share amounts)		2024				2023				2024				2023
Revenues:
Direct premiums written	$	277,754			$	270,868			$	819,595			$	759,526
Ceded premiums		(34,789	)			(30,294	)			(92,524	)			(103,431	)
Net premiums written		242,965				240,574				727,071				656,095
Decrease in unearned premiums		5,971				6,231				19,346				15,197
Net premiums earned		248,936				246,805				746,417				671,292
Net investment income		57,340				47,072				165,511				135,558
Realized investment gains (losses), net		68				(235	)			(2,236	)			(2,312	)
Income (loss) from other invested assets		2,820				(3,143	)			486				(10,697	)
Other income		7,414				5,609				17,699				18,641
Total revenues		316,578				296,108				927,877				812,482
Losses and expenses:
Provision for losses and LAE		30,666				10,822				40,245				11,902
Other underwriting and operating expenses		57,259				54,814				170,595				145,183
Premiums retained by agents		9,622				13,175				29,328				13,175
Interest expense		11,457				7,854				27,168				22,184
Total losses and expenses		109,004				86,665				267,336				192,444
Income before income taxes		207,574				209,443				660,541				620,038
Income tax expense		31,399				31,484				99,038				99,019
Net income	$	176,175			$	177,959			$	561,503			$	521,019
Earnings per share:
Basic	$	1.67			$	1.68			$	5.32			$	4.90
Diluted		1.65				1.66				5.26				4.86
Weighted average shares outstanding:
Basic		105,266				105,979				105,539				106,387
Diluted		106,554				107,025				106,700				107,232
Net income	$	176,175			$	177,959			$	561,503			$	521,019
Other comprehensive income (loss):
Change in unrealized appreciation (depreciation) of investments		117,358				(76,248	)			90,217				(53,593	)
Total other comprehensive income (loss)		117,358				(76,248	)			90,217				(53,593	)
Comprehensive income	$	293,533			$	101,711			$	651,720			$	467,426

					Exhibit B
Essent Group Ltd. and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)
	September 30,				December 31,
(In thousands, except per share amounts)		2024				2023
Assets
Investments
Fixed maturities available for sale, at fair value	$	4,919,868			$	4,335,008
Short-term investments available for sale, at fair value		1,030,631				928,731
Total investments available for sale		5,950,499				5,263,739
Other invested assets		294,931				277,226
Total investments		6,245,430				5,540,965
Cash		109,306				141,787
Accrued investment income		40,453				35,689
Accounts receivable		54,394				63,266
Deferred policy acquisition costs		9,491				9,139
Property and equipment		41,221				41,304
Prepaid federal income tax		494,356				470,646
Goodwill and acquired intangible assets, net		69,907				72,826
Other assets		61,981				51,051
Total assets	$	7,126,539			$	6,426,673
Liabilities and Stockholders' Equity
Liabilities
Reserve for losses and LAE	$	288,316			$	260,095
Unearned premium reserve		120,939				140,285
Net deferred tax liability		410,761				362,753
Senior notes due 2029, net		493,673				—
Credit facility borrowings, net		—				421,920
Other accrued liabilities		171,865				139,070
Total liabilities		1,485,554				1,324,123
Commitments and contingencies
Stockholders' Equity
Common shares, $0.015 par value:
Authorized - 233,333; issued and outstanding - 106,204 shares in 2024 and 106,597 shares in 2023		1,593				1,599
Additional paid-in capital		1,276,572				1,299,869
Accumulated other comprehensive loss		(190,279	)			(280,496	)
Retained earnings		4,553,099				4,081,578
Total stockholders' equity		5,640,985				5,102,550
Total liabilities and stockholders' equity	$	7,126,539			$	6,426,673
Return on average equity (1)		13.9	%			14.6	%
(1) The 2024 return on average equity is calculated by dividing annualized year-to-date 2024 net income by average equity. The 2023 return on average equity is calculated by dividing full year 2023 net income by average equity.

																		Exhibit C
Essent Group Ltd. and Subsidiaries
Supplemental Information
Consolidated Historical Quarterly Data
		2024												2023
Selected Income Statement Data		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		$	214,119			$	217,513			$	212,479			$	211,083			$	209,351
GSE and other risk share			17,130				17,745				17,826				17,166				16,850
Title insurance			17,687				16,633				15,285				17,365				20,604
Net premiums earned			248,936				251,891				245,590				245,614				246,805
Net investment income			57,340				56,086				52,085				50,581				47,072
Realized investment gains (losses), net			68				(1,164	)			(1,140	)			(4,892	)			(235	)
Income (loss) from other invested assets			2,820				(419	)			(1,915	)			(421	)			(3,143	)
Other income (1)			7,414				6,548				3,737				6,395				5,609
Total revenues			316,578				312,942				298,357				297,277				296,108
Losses and expenses:
Provision (benefit) for losses and LAE			30,666				(334	)			9,913				19,640				10,822
Other underwriting and operating expenses			57,259				55,987				57,349				55,248				54,814
Premiums retained by agents			9,622				10,215				9,491				11,475				13,175
Interest expense			11,457				7,849				7,862				7,953				7,854
Total losses and expenses			109,004				73,717				84,615				94,316				86,665
Income before income taxes			207,574				239,225				213,742				202,961				209,443
Income tax expense (2)			31,399				35,616				32,023				27,594				31,484
Net income		$	176,175			$	203,609			$	181,719			$	175,367			$	177,959
Earnings per share:
Basic		$	1.67			$	1.93			$	1.72			$	1.66			$	1.68
Diluted			1.65				1.91				1.70				1.64				1.66
Weighted average shares outstanding:
Basic			105,266				105,657				105,697				105,733				105,979
Diluted			106,554				106,778				106,770				106,823				107,025
Book value per share		$	53.11			$	50.58			$	48.96			$	47.87			$	44.98
Return on average equity (annualized)			12.8	%			15.4	%			14.1	%			14.2	%			14.9	%
Borrowings outstanding		$	500,000			$	425,000			$	425,000			$	425,000			$	425,000
Undrawn committed capacity		$	500,000			$	400,000			$	400,000			$	400,000			$	400,000
Weighted average interest rate (end of period)			6.25	%			7.07	%			7.06	%			7.11	%			7.07	%
Debt-to-capital			8.14	%			7.32	%			7.52	%			7.69	%			8.12	%
(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, 2024, June 30, 2024, March 31, 2024, December 31, 2023, and September 30, 2023, were ($1,173), $732, ($1,902), $412, and ($898), respectively.
(2) Income tax expense for the quarters ended September 30, 2024, June 30, 2024, March 31, 2024, December 31, 2023, and September 30, 2023 includes $475, $556, ($1,041), ($1,132), and ($763), respectively, of discrete tax expense (benefit) associated with realized and unrealized gains and losses. Income tax expense for the quarter ended March 31, 2024 also includes ($616) of excess tax benefits associated with the vesting of common shares and common share units. Income tax expense for the quarter ended December 31, 2023 also includes a $2,731 net benefit associated with the recognition of a deferred tax asset for unrealized losses on the investment portfolios of Essent Group and Essent Re upon the enactment of the Bermuda Corporate Income Tax.

										Exhibit D
Essent Group Ltd. and Subsidiaries
Supplemental Information
U.S. Mortgage Insurance Portfolio Historical Quarterly Data
		2024												2023
Other Data:		September 30				June 30				March 31				December 31				September 30
($ in thousands)
U.S. Mortgage Insurance Portfolio
New insurance written		$	12,513,695			$	12,503,125			$	8,323,544			$	8,769,160			$	12,505,823
New risk written			3,437,465				3,449,623				2,289,508				2,409,340				3,458,467
Average insurance in force		$	242,065,632			$	239,538,571			$	238,595,268			$	239,005,961			$	237,270,093
Insurance in force (end of period)		$	242,976,043			$	240,669,165			$	238,477,402			$	239,078,262			$	238,661,612
Gross risk in force (end of period) (1)		$	66,237,992			$	65,269,064			$	64,247,810			$	64,061,374			$	63,605,057
Risk in force (end of period)		$	55,915,640			$	55,521,538			$	54,686,533			$	54,591,590			$	53,920,308
Policies in force			815,507				814,237				815,752				822,012				825,248
Weighted average coverage (2)			27.3	%			27.1	%			26.9	%			26.8	%			26.7	%
Annual persistency			86.6	%			86.7	%			86.9	%			86.9	%			86.6	%
Loans in default (count)			15,906				13,954				13,992				14,819				13,391
Percentage of loans in default			1.95	%			1.71	%			1.72	%			1.80	%			1.62	%
U.S. Mortgage Insurance Portfolio premium rate:
Base average premium rate (3)			0.41	%			0.41	%			0.41	%			0.40	%			0.40	%
Single premium cancellations (4)			—	%			—	%			—	%			—	%			—	%
Gross average premium rate			0.41	%			0.41	%			0.41	%			0.40	%			0.40	%
Ceded premiums			(0.06	%)			(0.05	%)			(0.05	%)			(0.05	%)			(0.05	%)
Net average premium rate			0.35	%			0.36	%			0.36	%			0.35	%			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, 2024						September 30, 2023						September 30, 2024						September 30, 2023
($ in thousands)
>=760	$	5,339,574		42.7	%		$	5,212,343		41.8	%		$	14,387,356		43.2	%		$	15,473,191		39.8	%
740-759		2,141,817		17.1				2,205,066		17.6				5,717,289		17.1				7,031,821		18.1
720-739		1,764,319		14.1				1,911,320		15.3				4,828,718		14.5				6,310,564		16.2
700-719		1,622,450		13.0				1,867,510		14.9				4,348,047		13.0				5,892,704		15.1
680-699		918,116		7.3				891,471		7.1				2,351,589		7.1				3,024,347		7.8
<=679		727,419		5.8				418,113		3.3				1,707,365		5.1				1,165,065		3.0
Total	$	12,513,695		100.0	%		$	12,505,823		100.0	%		$	33,340,364		100.0	%		$	38,897,692		100.0	%
Weighted average credit score		747						747						747						746
NIW by LTV
	Three Months Ended												Nine Months Ended
	September 30, 2024						September 30, 2023						September 30, 2024						September 30, 2023
($ in thousands)
85.00% and below	$	836,186		6.7	%		$	849,250		6.7	%		$	2,250,434		6.7	%		$	2,801,011		7.2	%
85.01% to 90.00%		2,415,504		19.3				2,445,924		19.6				6,571,300		19.7				7,951,062		20.4
90.01% to 95.00%		6,616,174		52.9				6,614,050		52.9				18,008,682		54.0				21,383,696		55.0
95.01% and above		2,645,831		21.1				2,596,599		20.8				6,509,948		19.6				6,761,923		17.4
Total	$	12,513,695		100.0	%		$	12,505,823		100.0	%		$	33,340,364		100.0	%		$	38,897,692		100.0	%
Weighted average LTV		93	%					93	%					93	%					93	%
NIW by Product
	Three Months Ended												Nine Months Ended
	September 30, 2024						September 30, 2023						September 30, 2024						September 30, 2023
Single Premium policies				1.4	%					2.8	%					1.5	%					3.8	%
Monthly Premium policies				98.6						97.2						98.5						96.2
				100.0	%					100.0	%					100.0	%					100.0	%
NIW by Purchase vs. Refinance
	Three Months Ended												Nine Months Ended
	September 30, 2024						September 30, 2023						September 30, 2024						September 30, 2023
Purchase				97.0	%					99.0	%					97.4	%					98.8	%
Refinance				3.0						1.0						2.6						1.2
				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, 2024						June 30, 2024						September 30, 2023
($ in thousands)
>=760		$	98,553,455		40.6	%		$	97,668,435		40.6	%		$	97,027,348		40.7	%
740-759			42,377,559		17.4				41,915,598		17.4				41,362,480		17.3
720-739			37,947,254		15.6				37,678,804		15.7				37,297,809		15.6
700-719			32,685,044		13.5				32,331,564		13.4				31,674,346		13.3
680-699			19,890,335		8.2				19,751,956		8.2				19,850,176		8.3
<=679			11,522,396		4.7				11,322,808		4.7				11,449,453		4.8
Total		$	242,976,043		100.0	%		$	240,669,165		100.0	%		$	238,661,612		100.0	%
Weighted average credit score			746						746						746
Gross RIF by FICO score		September 30, 2024						June 30, 2024						September 30, 2023
($ in thousands)
>=760		$	26,614,399		40.2	%		$	26,238,140		40.2	%		$	25,594,262		40.1	%
740-759			11,715,485		17.7				11,525,987		17.7				11,165,727		17.6
720-739			10,485,311		15.8				10,362,021		15.9				10,090,889		15.9
700-719			9,044,551		13.7				8,899,342		13.6				8,568,811		13.5
680-699			5,451,406		8.2				5,382,312		8.2				5,327,434		8.4
<=679			2,926,840		4.4				2,861,262		4.4				2,857,934		4.5
Total		$	66,237,992		100.0	%		$	65,269,064		100.0	%		$	63,605,057		100.0	%
Portfolio by LTV
IIF by LTV		September 30, 2024						June 30, 2024						September 30, 2023
($ in thousands)
85.00% and below		$	15,555,555		6.4	%		$	16,927,111		7.0	%		$	21,226,685		8.9	%
85.01% to 90.00%			61,262,960		25.2				61,774,991		25.7				63,374,562		26.6
90.01% to 95.00%			125,919,529		51.8				123,414,332		51.3				118,461,030		49.6
95.01% and above			40,237,999		16.6				38,552,731		16.0				35,599,335		14.9
Total		$	242,976,043		100.0	%		$	240,669,165		100.0	%		$	238,661,612		100.0	%
Weighted average LTV			93	%					93	%					93	%
Gross RIF by LTV		September 30, 2024						June 30, 2024						September 30, 2023
($ in thousands)
85.00% and below		$	1,845,584		2.8	%		$	2,010,864		3.1	%		$	2,525,753		4.0	%
85.01% to 90.00%			15,120,025		22.8				15,238,201		23.3				15,566,095		24.5
90.01% to 95.00%			37,149,222		56.1				36,405,573		55.8				34,848,762		54.8
95.01% and above			12,123,161		18.3				11,614,426		17.8				10,664,447		16.7
Total		$	66,237,992		100.0	%		$	65,269,064		100.0	%		$	63,605,057		100.0	%
Portfolio by Loan Amortization Period
IIF by Loan Amortization Period		September 30, 2024						June 30, 2024						September 30, 2023
($ in thousands)
FRM 30 years and higher		$	237,628,900		97.8	%		$	235,138,420		97.7	%		$	232,186,999		97.3	%
FRM 20-25 years			1,199,947		0.5				1,322,021		0.5				1,910,610		0.8
FRM 15 years			1,191,749		0.5				1,276,780		0.5				1,719,467		0.7
ARM 5 years and higher			2,955,447		1.2				2,931,944		1.3				2,844,536		1.2
Total		$	242,976,043		100.0	%		$	240,669,165		100.0	%		$	238,661,612		100.0	%

																			Exhibit G
Essent Group Ltd. and Subsidiaries
Supplemental Information
Other Risk in Force
		2024													2023
($ in thousands)		September 30					June 30				March 31				December 31				September 30
GSE and other risk share (1):
Risk in Force		$	2,254,726				$	2,304,885			$	2,307,267			$	2,244,944			$	2,247,393
Reserve for losses and LAE		$	37				$	33			$	32			$	29			$	54
Weighted average credit score			750					750				750				749				749
Weighted average LTV			82	%				82	%			82	%			82	%			82	%
(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, 2024
													Insurance in Force
Year		Original Insurance Written ($ in thousands)			Remaining Insurance in Force ($ in thousands)			% Remaining of Original Insurance			Number of Policies in Force		Weighted Average Coupon			% Purchase			>90% LTV			>95% LTV			FICO < 700			FICO >= 760			Incurred Loss Ratio (Inception to Date) (1)			Number of Loans in Default		Percentage of Loans in Default
2010 - 2014		$	60,668,851		$	1,010,190		1.7	%		5,566		4.28	%		66.0	%		49.5	%		1.1	%		10.1	%		49.3	%		2.4	%		248		4.46	%
2015			26,193,656			870,740		3.3			5,028		4.29			76.8			60.9			5.7			18.1			40.0			2.2			235		4.67
2016			34,949,319			2,357,912		6.7			14,050		3.93			86.4			78.0			13.7			16.4			41.3			2.1			450		3.20
2017			43,858,322			3,784,941		8.6			23,293		4.30			90.8			80.4			23.8			21.4			36.4			3.1			1,037		4.45
2018			47,508,525			4,857,991		10.2			27,818		4.80			95.1			74.0			27.1			21.9			32.3			4.2			1,314		4.72
2019			63,569,183			10,717,480		16.9			52,219		4.24			89.1			71.7			25.7			18.9			35.1			3.7			1,687		3.23
2020			107,944,065			37,929,239		35.1			150,176		3.20			72.1			62.5			14.6			10.8			45.5			2.8			2,452		1.63
2021			84,218,250			53,029,350		63.0			177,048		3.10			89.0			66.1			16.6			13.8			40.4			6.1			3,420		1.93
2022			63,061,262			53,154,263		84.3			153,151		5.09			98.1			66.0			11.4			12.6			39.6			17.4			3,091		2.02
2023			47,666,852			43,012,414		90.2			121,053		6.64			98.8			72.8			18.6			11.0			38.7			18.1			1,732		1.43
2024 (through September 30)			33,340,364			32,251,523		96.7			86,105		6.84			97.4			73.8			20.0			12.4			42.4			10.1			240		0.28
Total		$	612,978,649		$	242,976,043		39.6			815,507		4.79			91.2			68.4			16.6			12.9			40.6			4.6			15,906		1.95
(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, 2024
($ in thousands)
Insurance Linked Notes (1)
																									Earned Premiums Ceded
Deal Name		Vintage		Remaining Insurance in Force			Remaining Risk in Force			Original Reinsurance in Force			Remaining Reinsurance in Force			Losses Ceded to Date			Original First Layer Retention			Remaining First Layer Retention			Quarter-to-Date			Year-to-Date			Reduction in PMIERs Minimum Required Assets (3)
Radnor Re 2021-1		Aug. 2020 - Mar. 2021		$	25,750,186		$	6,963,249		$	557,911		$	220,532		$	—		$	278,956		$	277,985		$	2,091		$	6,564		$	160,822
Radnor Re 2021-2		Apr. 2021 - Sep. 2021			31,287,234			8,616,211			439,407			286,439			—			279,415			277,195			3,715			10,952			215,335
Radnor Re 2022-1		Oct. 2021 - Jul. 2022			28,815,017			7,856,567			237,868			191,938			—			303,761			301,278			3,825			11,478			176,583
Radnor Re 2023-1		Aug. 2022 - Jun. 2023			28,989,426			7,941,539			281,462			281,462			—			281,463			281,089			3,705			10,657			266,826
Radnor Re 2024-1		Jul. 2023 - Jul. 2024			30,359,933			8,387,056			363,366			363,366			—			256,495			256,495			472			472			363,366
Total				$	145,201,796		$	39,764,622		$	1,880,014		$	1,343,737		$	—		$	1,400,090		$	1,394,042		$	13,808		$	40,123	(5)	$	1,182,932

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 2019-1		Jan. 2018 - Dec. 2018		$	4,811,623		$	1,266,631		$	118,650		$	76,144		$	—		$	253,643		$	244,294		$	641		$	1,868		$	—
XOL 2020-1		Jan. 2019 - Aug. 2019			6,026,073			1,591,126			55,102			30,592			—			215,605			212,208			263			809			—
XOL 2022-1		Oct. 2021 - Dec. 2022			65,149,106			17,727,315			141,992			141,992			—			507,114			500,886			1,611			4,797			138,001
XOL 2023-1		Jan. 2023 - Dec. 2023			38,402,550			10,637,649			36,627			36,627			—			366,270			366,141			439			1,306			35,232
XOL 2024-1		Jan. 2024 - Dec. 2024			32,177,995			8,864,366			46,537			46,537			—			265,931			265,931			528			528			44,765
Total				$	146,567,347		$	40,087,087		$	398,908		$	331,892		$	—		$	1,608,563		$	1,589,460		$	3,482		$	9,308		$	217,998

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	(4	)	$	42,414,942		$	11,536,848		$	9,585,777		$	2,572,717		$	645		$	(146	)		$	2,719		$	7,364		$	4,646		$	12,450		$	141,312
Jan. 2022 - Dec. 2022	20	%		53,084,698			14,433,907			10,616,940			2,886,781			2,261			3,516				1,850			5,634			5,776			14,221			212,195
Jan. 2023 - Dec. 2023	17.5	%		38,282,838			10,608,139			6,699,497			1,856,424			2,031			4,492				1,330			4,045			4,825			12,987			143,807
Jan. 2024 - Dec. 2024	15	%		32,205,363			8,872,008			4,830,804			1,330,801			557			717				793			1,302			2,263			3,515			94,807
Total			$	165,987,841		$	45,450,902		$	31,733,018		$	8,646,723		$	5,494		$	8,579			$	6,692		$	18,345		$	17,510		$	43,173		$	592,121
(1) Reinsurance provided by unaffiliated special purpose insurers through the issuance of mortgage insurance-linked notes ("ILNs").
(2) Reinsurance provided by panels of reinsurers.
(3) Represents the reduction in Essent Guaranty, Inc.'s Minimum Required Assets based on our interpretation of the PMIERs.
(4) Reinsurance coverage on 40% of eligible single premium policies and 20% of all other eligible policies.
(5) Excludes ($11) and ($80) of benefit in ceded premium on retired ILNs for the three and nine months ended September 30, 2024, respectively.

							Exhibit J
Essent Group Ltd. and Subsidiaries
Supplemental Information
U.S. Mortgage Insurance Portfolio Geographic Data
IIF by State
	September 30, 2024			June 30, 2024			September 30, 2023
CA	12.5	%		12.7	%		13.0	%
FL	11.8			11.6			11.0
TX	10.9			10.8			10.5
CO	4.1			4.1			4.1
AZ	3.8			3.8			3.7
GA	3.7			3.6			3.4
WA	3.4			3.4			3.4
NC	3.0			3.0			2.8
OH	2.6			2.6			2.6
IL	2.6			2.7			2.8
All Others	41.6			41.7			42.7
Total	100.0	%		100.0	%		100.0	%
Gross RIF by State
	September 30, 2024			June 30, 2024			September 30, 2023
CA	12.5	%		12.6	%		12.9	%
FL	12.0			11.8			11.3
TX	11.2			11.1			10.8
CO	4.0			4.1			4.0
AZ	3.9			3.8			3.8
GA	3.8			3.7			3.5
WA	3.4			3.4			3.4
NC	3.0			3.0			2.9
OH	2.6			2.5			2.6
IL	2.5			2.6			2.8
All Others	41.1			41.4			42.0
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
		2024												2023
		September 30				June 30				March 31				December 31				September 30
Beginning default inventory			13,954				13,992				14,819				13,391				12,480
Plus: new defaults (A)			9,984				8,119				8,260				9,007				7,953
Less: cures			(7,819	)			(7,956	)			(8,951	)			(7,418	)			(6,902	)
Less: claims paid			(182	)			(183	)			(123	)			(148	)			(129	)
Less: rescissions and denials, net			(31	)			(18	)			(13	)			(13	)			(11	)
Ending default inventory			15,906				13,954				13,992				14,819				13,391
(A) New defaults remaining as of September 30, 2024			7,189				3,198				1,665				1,309				806
Cure rate (1)			28	%			61	%			80	%			85	%			90	%
Total amount paid for claims (in thousands)		$	5,749			$	5,566			$	3,605			$	3,411			$	2,956
Average amount paid per claim (in thousands)		$	32			$	30			$	29			$	22			$	23
Severity			58	%			60	%			65	%			62	%			66	%
Rollforward of Reserve for Losses and LAE
		Three Months Ended
		2024												2023
($ in thousands)		September 30				June 30				March 31				December 31				September 30
Reserve for losses and LAE at beginning of period		$	246,107			$	253,565			$	245,402			$	226,617			$	216,888
Less: Reinsurance recoverables			26,022				26,570				24,005				20,656				17,958
Net reserve for losses and LAE at beginning of period			220,085				226,995				221,397				205,961				198,930
Add provision for losses and LAE occurring in:
Current period			51,649				30,653				39,396				38,922				35,609
Prior years			(21,836	)			(31,880	)			(30,062	)			(19,912	)			(25,533	)
Incurred losses and LAE during the period			29,813				(1,227	)			9,334				19,010				10,076
Deduct payments for losses and LAE occurring in:
Current period			637				478				1				330				156
Prior years			5,202				5,205				3,735				3,244				2,889
Loss and LAE payments during the period			5,839				5,683				3,736				3,574				3,045
Net reserve for losses and LAE at end of period			244,059				220,085				226,995				221,397				205,961
Plus: Reinsurance recoverables			30,867				26,022				26,570				24,005				20,656
Reserve for losses and LAE at end of period		$	274,926			$	246,107			$	253,565			$	245,402			$	226,617
(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, 2024
		Number of Policies in Default			Percentage of Policies in Default			Amount of Reserves			Percentage of Reserves			Defaulted RIF			Reserves as a Percentage of Defaulted RIF
($ in thousands)
Missed Payments:
Three payments or less		8,293			52	%		$	53,849		21	%		$	627,505		9	%
Four to eleven payments		5,498			35				104,223		41				437,515		24
Twelve or more payments		1,980			12				86,821		35				144,396		60
Pending claims		135			1				8,620		3				9,692		89
Total case reserves		15,906			100	%			253,513		100	%		$	1,219,108		21	%
IBNR									19,013
LAE									2,400
Total reserves for losses and LAE								$	274,926
Average reserve per default:
Case								$	15.9
Total								$	17.3
Default Rate		1.95	%
		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	%
		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	%

												Exhibit M
Essent Group Ltd. and Subsidiaries
Supplemental Information
Investments Available for Sale
Investments Available for Sale by Asset Class
Asset Class		September 30, 2024							December 31, 2023
($ in thousands)		Fair Value				Percent			Fair Value			Percent
U.S. Treasury securities		$	709,807			11.9	%		$	996,382		18.9	%
U.S. agency securities			—			—				7,195		0.1
U.S. agency mortgage-backed securities			1,051,308			17.7				821,346		15.6
Municipal debt securities			577,647			9.8				547,258		10.5
Non-U.S. government securities			72,971			1.2				67,447		1.3
Corporate debt securities			1,704,388			28.6				1,297,055		24.7
Residential and commercial mortgage securities			503,980			8.5				517,940		9.8
Asset-backed securities			548,076			9.2				564,995		10.7
Money market funds			782,322			13.1				444,121		8.4
Total investments available for sale		$	5,950,499			100.0	%		$	5,263,739		100.0	%
Investments Available for Sale by Credit Rating
Rating (1)		September 30, 2024							December 31, 2023
($ in thousands)		Fair Value				Percent			Fair Value			Percent
Aaa		$	2,541,407			49.2	%		$	2,561,363		53.2	%
Aa1			103,522			2.0				104,474		2.2
Aa2			286,304			5.5				291,501		6.0
Aa3			247,669			4.7				208,882		4.3
A1			510,486			9.9				377,188		7.8
A2			391,018			7.6				329,423		6.8
A3			424,218			8.2				253,081		5.3
Baa1			227,741			4.4				220,901		4.6
Baa2			200,539			3.9				226,449		4.7
Baa3			158,288			3.1				166,121		3.4
Below Baa3			76,985			1.5				80,235		1.7
Total (2)		$	5,168,177			100.0	%		$	4,819,618		100.0	%
(1) Based on ratings issued by Moody's, if available. S&P or Fitch rating utilized if Moody's not available.
(2) Excludes $782,322 and $444,121 of money market funds at September 30, 2024 and December 31, 2023, respectively.
Investments Available for Sale by Duration and Book Yield
Effective Duration		September 30, 2024							December 31, 2023
($ in thousands)		Fair Value				Percent			Fair Value			Percent
< 1 Year		$	1,829,657			30.7	%		$	1,892,074		35.9	%
1 to < 2 Years			501,569			8.4				371,583		7.1
2 to < 3 Years			506,047			8.5				538,775		10.2
3 to < 4 Years			499,816			8.4				402,668		7.6
4 to < 5 Years			417,500			7.0				376,722		7.2
5 or more Years			2,195,910			37.0				1,681,917		32.0
Total investments available for sale		$	5,950,499			100.0	%		$	5,263,739		100.0	%
Pre-tax investment income yield:
Three months ended			3.81	%
Nine months ended September 30, 2024			3.77	%

Holding company net cash and investments available for sale:
($ in thousands)
As of September 30, 2024		$	991,151
As of December 31, 2023		$	693,507

																		Exhibit N
Essent Group Ltd. and Subsidiaries
Supplemental Information
U.S. Mortgage Insurance Company Capital
		2024												2023
		September 30				June 30				March 31				December 31				September 30
($ in thousands)
U.S. Mortgage Insurance Subsidiaries:
Combined statutory capital (1)		$	3,584,580			$	3,530,462			$	3,453,553			$	3,376,117			$	3,309,522
Combined net risk in force (2)		$	34,893,957			$	34,812,227			$	34,463,082			$	34,549,500			$	34,203,678
Risk-to-capital ratios: (3)
Essent Guaranty, Inc.		10.0:1				10.2:1				10.3:1				10.6:1				10.7:1
Essent Guaranty of PA, Inc.		0.3:1				0.3:1				0.4:1				0.4:1				0.5:1
Combined (4)		9.7:1				9.9:1				10.0:1				10.2:1				10.3:1
Essent Guaranty, Inc. PMIERs Data (5):
Available Assets		$	3,598,725			$	3,513,609			$	3,464,119			$	3,379,936			$	3,318,179
Minimum Required Assets			1,903,473				2,052,135				1,999,928				1,985,545				1,910,659
PMIERs excess Available Assets		$	1,695,252			$	1,461,474			$	1,464,191			$	1,394,391			$	1,407,520
PMIERs sufficiency ratio (6)			189	%			171	%			173	%			170	%			174	%
Essent Reinsurance Ltd.:
Stockholder's equity (GAAP basis)		$	1,826,901			$	1,793,777			$	1,793,005			$	1,758,665			$	1,684,122
Net risk in force (2)		$	23,003,846			$	22,770,165			$	22,271,316			$	22,043,926			$	21,739,419
(1) Combined statutory capital equals the sum of statutory capital of Essent Guaranty, Inc. plus Essent Guaranty of PA, Inc., after eliminating the impact of intercompany transactions. Statutory capital is computed based on accounting practices prescribed or permitted by the Pennsylvania Insurance Department and the National Association of Insurance Commissioners Accounting Practices and Procedures Manual.
(2) Net risk in force represents total risk in force, net of reinsurance ceded and net of exposures on policies for which loss reserves have been established.
(3) The risk-to-capital ratio is calculated as the ratio of net risk in force to statutory capital.
(4) The combined risk-to-capital ratio equals the sum of the net risk in force of Essent Guaranty, Inc. and Essent Guaranty of PA, Inc. divided by the combined statutory capital.
(5) Data is based on our interpretation of the PMIERs as of the dates indicated.
(6) PMIERs sufficiency ratio is calculated by dividing Available Assets by Minimum Required Assets.

																					Exhibit O
Essent Group Ltd. and Subsidiaries
Supplemental Information
Ratios and Reconciliation of Non-GAAP Financial Measures
	2024												2023
	September 30				June 30				March 31				December 31				September 30
Loss Ratio (1)		12.2	%			(0.1	)%			4.0	%			7.9	%			4.4	%
Expense Ratio (2)		26.5	%			26.1	%			27.1	%			27.0	%			27.3	%
Combined Ratio		38.7	%			26.0	%			31.1	%			34.9	%			31.7	%
Underwriting Margin (3)		61.3	%			74.0	%			68.9	%			65.1	%			68.3	%
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 nine months ended September 30, 2024 lack comparability with periods prior to the acquisition. In order to provide investors with more comparative information to prior periods, Essent has prepared the table below to reconcile the Consolidated Ratios to ratios excluding Title, as shown below. Ratios excluding Title are financial measures that are not calculated under standards or rules that comprise accounting principles generally accepted in the United States (GAAP) and are referred to as non-GAAP measures. Ratios excluding Title are measures used to monitor our results and should not be viewed as a substitute for those measures determined in accordance with GAAP.   The following table sets forth the reconciliation of the loss, expense and combined ratios excluding Title to the most comparable GAAP amount for the three and nine months ended September 30, 2024 in accordance with Regulation G:
	Three Months Ended September 30, 2024												Nine Months Ended September 30, 2024
	Consolidated				Title				Excluding Title				Consolidated				Title				Excluding Title
($ in thousands)
Revenues:
Net premiums earned	$	248,936			$	17,687			$	231,249			$	746,417			$	49,604			$	696,813
Net investment income		57,340				809				56,531				165,511				2,365				163,146
Realized investment gains (losses), net		68				—				68				(2,236	)			—				(2,236	)
Income from other invested assets		2,820				—				2,820				486				—				486
Settlement services (4)		3,237				3,237				—				6,074				6,074				—
Other income		4,177				473				3,704				11,625				1,354				10,271
Total revenues		316,578				22,206				294,372				927,877				59,397				868,480
Losses and expenses:
Provision for losses and LAE		30,666				850				29,816				40,245				2,317				37,928
Other underwriting and operating expenses (5)		57,259				14,845				42,414				170,595				39,564				131,031
Premiums retained by agents		9,622				9,622				—				29,328				29,328				—
Interest expense		11,457				—				11,457				27,168				—				27,168
Total losses and expenses		109,004				25,317				83,687				267,336				71,209				196,127
Loss ratio (1)		12.2	%			4.1	%			12.9	%			5.3	%			4.2	%			5.4	%
Expense ratio (2)		26.5	%			116.9	%			18.3	%			26.6	%			123.7	%			18.8	%
Combined ratio		38.7	%			121.0	%			31.2	%			31.9	%			127.9	%			24.2	%
Underwriting Margin (3)		61.3	%			(21.0	%)			68.8	%			68.1	%			(27.9	%)			75.8	%
(1) Loss ratio is calculated by dividing the provision for losses and LAE by the sum of net premiums earned and settlement services revenue, if applicable.
(2) Expense ratio is calculated by dividing the sum of other underwriting and operating expenses and premiums retained by agents by the sum of net premiums earned and settlement services revenue, if applicable.
(3) Calculated as the inverse of the combined ratio.
(4) Settlement services revenue is included in "Other income" within Exhibit A and Exhibit C.
(5) Title expenses reflect only direct expenses of Title operations and do not include corporate or centralized support expense allocations.

 

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Media Contact

610.230.0556

media@essentgroup.com

Investor Relations Contact

Philip Stefano

Vice President, Investor Relations

855-809-ESNT

ir@essentgroup.com

Source: Essent Group Ltd.

FAQ

What was Essent Group's (ESNT) net income for Q3 2024?

Essent Group reported net income of $176.2 million or $1.65 per diluted share for Q3 2024.

How much new insurance did Essent Group (ESNT) write in Q3 2024?

Essent Group wrote $12.5 billion in new insurance during Q3 2024.

What is Essent Group's (ESNT) quarterly dividend for Q3 2024?

Essent Group declared a quarterly cash dividend of $0.28 per common share, payable on December 11, 2024.

What was Essent Group's (ESNT) insurance in force as of September 30, 2024?

Essent Group's insurance in force was $243.0 billion as of September 30, 2024.