Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.

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

ESNT

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 10th 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.

Tags: