Equibles

8-K

Essent Group Ltd. (ESNT)

8-K 2024-02-09 For: 2024-02-09
View Original
Added on April 04, 2026

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of report (Date of Earliest Event Reported): February 9, 2024

ESSENT GROUP LTD.

(Exact name of registrant as specified in its charter)

Bermuda 001-36157 Not Applicable
(State of Incorporation) (Commission File Number) (I.R.S. Employer Identification No.)

Clarendon House

2 Church Street

Hamilton HM11, Bermuda

(Address of Principal Executive Offices and Zip Code)

(441) 297‑9901

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company        ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition

period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading<br>Symbol(s) Name of each exchange on which registered
Common Shares, $0.015 par value ESNT New York Stock Exchange

Item 8.01.    Results of Operations and Financial Condition

On February 9, 2024, Essent Group Ltd. (the “Company”) issued a press release announcing its financial results for the quarter and year ended December 31, 2023. A copy of this press release is furnished as Exhibit 99.1 to this report.

The information in this report, including Exhibit 99.1, has been “furnished” and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to liability under that section. The information in this report shall not be incorporated by reference into any filing or other document under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing or document.

Item 9.01.             Financial Statements and Exhibits

| (d) | Exhibits | | --- | --- || Exhibit<br> No. | Description | | --- | --- | | 104 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document. | | 99.1 | Press Release issued by Essent Group Ltd. on February 9, 2024. |

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: February 9, 2024

ESSENT GROUP LTD.

By:    /s/ David B. Weinstock

Name: David B. Weinstock

Title: Senior Vice President, Chief Financial Officer

Document

Exhibit 99.1

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

HAMILTON, Bermuda--(BUSINESS WIRE)--February 9, 2024--Essent Group Ltd. (NYSE: ESNT) today reported net income for the quarter ended December 31, 2023 of $175.4 million or $1.64 per diluted share, compared to $147.4 million or $1.37 per diluted share for the quarter ended December 31, 2022. For the full year 2023, net income was $696.4 million or $6.50 per diluted share, compared to $831.4 million or $7.72 per diluted share for 2022.

Essent also announced today that its Board of Directors has declared a quarterly cash dividend of $0.28 per common share. The dividend is payable on March 22, 2024, to shareholders of record on March 13, 2024.

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

Financial Highlights:

•New insurance written for the fourth quarter of 2023 was $8.8 billion, compared to $12.5 billion in the third quarter of 2023 and $13.0 billion in the fourth quarter of 2022.

•Insurance in force as of December 31, 2023 was $239.1 billion, compared to $238.7 billion as of September 30, 2023 and $227.1 billion as of December 31, 2022.

•Net investment income for the fourth quarter of 2023 was $50.6 million, up 34% from the fourth quarter of 2022. In 2023, net investment income was $186.1 million, up 50% from 2022.

•On January 8, 2024, S&P Global Ratings raised its long-term financial strength and issuer credit ratings on Essent Guaranty, Inc. and Essent Reinsurance Ltd. to ‘A-’ from ‘BBB+’, with a stable outlook.

Conference Call:

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

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

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

Forward-Looking Statements:

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

About the Company:

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

Source: Essent Group Ltd.

Media Contact

610.230.0556

media@essentgroup.com

Investor Relations Contact

Philip Stefano

Vice President, Investor Relations

855-809-ESNT

ir@essentgroup.com

Essent Group Ltd. and Subsidiaries
Financial Results and Supplemental Information (Unaudited)
Quarter and Year Ended December 31, 2023
Exhibit A Condensed Consolidated Statements of Comprehensive Income (Unaudited)
Exhibit B Condensed Consolidated Balance Sheets (Unaudited)
Exhibit C Consolidated Historical Quarterly Data
Exhibit D U.S Mortgage Insurance Portfolio Historical Quarterly Data
Exhibit E New Insurance Written - U.S. Mortgage Insurance Portfolio
Exhibit F Insurance in Force and Risk in Force - U.S. Mortgage Insurance Portfolio
Exhibit G Other Risk in Force
Exhibit H U.S. Mortgage Insurance Portfolio Vintage Data
Exhibit I U.S. Mortgage Insurance Portfolio Reinsurance Vintage Data
Exhibit J U.S. Mortgage Insurance Portfolio Geographic Data
Exhibit K Rollforward of Defaults and Reserve for Losses and LAE
Exhibit L Detail of Reserves by Default Delinquency
Exhibit M Investments Available for Sale
Exhibit N U.S. Mortgage Insurance Company Capital
Exhibit O Loss, Expense and Combined Ratios and Reconciliation of Non-GAAP Financial Measures
Exhibit A
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Essent Group Ltd. and Subsidiaries
Condensed Consolidated Statements of Comprehensive Income (Unaudited)
Three Months Ended December 31, Year Ended December 31,
(In thousands, except per share amounts) 2023 2022 2023 2022
Revenues:
Direct premiums written $ 269,255 $ 235,015 $ 1,028,781 $ 927,702
Ceded premiums (31,068) (34,289) (134,499) (107,673)
Net premiums written 238,187 200,726 894,282 820,029
Decrease in unearned premiums 7,427 6,526 22,624 22,498
Net premiums earned 245,614 207,252 916,906 842,527
Net investment income 50,581 37,796 186,139 124,409
Realized investment gains (losses), net (4,892) (5,524) (7,204) (13,172)
Income (loss) from other invested assets (421) (7,599) (11,118) 28,676
Other income (loss) 6,395 (1,888) 25,036 18,384
Total revenues 297,277 230,037 1,109,759 1,000,824
Losses and expenses:
Provision (benefit) for losses and LAE 19,640 4,101 31,542 (174,704)
Other underwriting and operating expenses 55,248 46,895 200,431 171,733
Premiums retained by agents 11,475 — 24,650 —
Interest expense 7,953 6,045 30,137 15,608
Total losses and expenses 94,316 57,041 286,760 12,637
Income before income taxes 202,961 172,996 822,999 988,187
Income tax expense 27,594 25,630 126,613 156,834
Net income $ 175,367 $ 147,366 $ 696,386 $ 831,353
Earnings per share:
Basic $ 1.66 $ 1.38 $ 6.56 $ 7.75
Diluted 1.64 1.37 6.50 7.72
Weighted average shares outstanding:
Basic 105,733 106,881 106,222 107,205
Diluted 106,823 107,419 107,129 107,653
Net income $ 175,367 $ 147,366 $ 696,386 $ 831,353
Other comprehensive income (loss):
Change in unrealized appreciation (depreciation) of investments 155,887 40,787 102,294 (433,497)
Total other comprehensive income (loss) 155,887 40,787 102,294 (433,497)
Comprehensive income $ 331,254 $ 188,153 $ 798,680 $ 397,856
Exhibit B
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Essent Group Ltd. and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)
December 31,
(In thousands, except per share amounts) 2022
Assets
Investments
Fixed maturities available for sale, at fair value 4,335,008 $ 4,489,598
Short-term investments available for sale, at fair value 252,027
Total investments available for sale 4,741,625
Other invested assets 257,941
Total investments 4,999,566
Cash 81,240
Accrued investment income 33,162
Accounts receivable 57,399
Deferred policy acquisition costs 9,910
Property and equipment 19,571
Prepaid federal income tax 418,460
Goodwill and intangible assets, net —
Other assets 104,489
Total assets 6,426,673 $ 5,723,797
Liabilities and Stockholders' Equity
Liabilities
Reserve for losses and LAE 260,095 $ 216,464
Unearned premium reserve 162,887
Net deferred tax liability 356,810
Credit facility borrowings, net of deferred costs 420,864
Other accrued liabilities 104,463
Total liabilities 1,261,488
Commitments and contingencies
Stockholders' Equity
Common shares, 0.015 par value:
Authorized - 233,333; issued and outstanding - 106,597 shares in 2023 and 107,683 shares in 2022 1,615
Additional paid-in capital 1,350,377
Accumulated other comprehensive (loss) income (382,790)
Retained earnings 3,493,107
Total stockholders' equity 4,462,309
Total liabilities and stockholders' equity 6,426,673 $ 5,723,797
Return on average equity % 19.1 %

All values are in US Dollars.

Exhibit C
Essent Group Ltd. and Subsidiaries
Supplemental Information
Consolidated Historical Quarterly Data
2022
Selected Income Statement Data September 30 June 30 March 31 December 31
(In thousands, except per share amounts)
Revenues:
Net premiums earned:
U.S. Mortgage Insurance Portfolio 211,083 $ 209,351 $ 195,502 $ 196,565 $ 192,670
GSE and other risk share 16,850 17,727 14,693 14,582
Title Insurance 20,604 — — —
Net premiums earned 246,805 213,229 211,258 207,252
Net investment income 47,072 45,250 43,236 37,796
Realized investment gains (losses), net (235) (1,589) (488) (5,524)
Income (loss) from other invested assets (3,143) (4,852) (2,702) (7,599)
Other income (loss) (1) 5,609 8,090 4,942 (1,888)
Total revenues 296,108 260,128 256,246 230,037
Losses and expenses:
Provision (benefit) for losses and LAE 10,822 1,260 (180) 4,101
Other underwriting and operating expenses 54,814 42,174 48,195 46,895
Premiums retained by agents 13,175 — — —
Interest expense 7,854 7,394 6,936 6,045
Total losses and expenses 86,665 50,828 54,951 57,041
Income before income taxes 209,443 209,300 201,295 172,996
Income tax expense (2) 31,484 37,067 30,468 25,630
Net income 175,367 $ 177,959 $ 172,233 $ 170,827 $ 147,366
Earnings per share:
Basic 1.66 $ 1.68 $ 1.62 $ 1.60 $ 1.38
Diluted 1.66 1.61 1.59 1.37
Weighted average shares outstanding:
Basic 105,979 106,249 106,943 106,881
Diluted 107,025 107,093 107,585 107,419
Book value per share 47.87 $ 44.98 $ 44.24 $ 43.18 $ 41.44
Return on average equity (annualized) % 14.9 % 14.7 % 15.0 % 13.5 %
Credit Facility
Borrowings outstanding 425,000 $ 425,000 $ 425,000 $ 425,000 $ 425,000
Undrawn committed capacity 400,000 $ 400,000 $ 400,000 $ 400,000 $ 400,000
Weighted average interest rate (end of period) % 7.07 % 6.87 % 6.52 % 6.02 %
Debt-to-capital % 8.12 % 8.24 % 8.38 % 8.70 %
(1) Other income includes net favorable (unfavorable) changes in the fair value of embedded derivatives associated with certain of our third-party reinsurance agreements, which for the quarters ended December 31, 2023, September 30, 2023, June 30, 2023, March 31, 2023, and December 31, 2022 was 412, (898), 2,726, (368), and (6,515), respectively.
(2) Income tax expense for the quarters ended December 31, 2023, September 30, 2023, June 30, 2023, March 31, 2023 and December 31, 2022 includes (1,132), (763), (888), (368) and (4,122), respectively, of discrete tax (benefit) expense associated with realized and unrealized gains and losses. Income tax expense for the quarter ended December 31, 2023 also includes a 2,731 net benefit associated with the recognition of a deferred tax asset for unrealized losses on the investment portfolios of Essent Group and Essent Re upon the enactment of the Bermuda Corporate Income Tax. Income tax expense for the quarter ended June 30, 2023 also includes 5,295 of net discrete tax expense associated with prior year tax returns.

All values are in US Dollars.

Exhibit D
Essent Group Ltd. and Subsidiaries
Supplemental Information
U.S Mortgage Insurance Portfolio Historical Quarterly Data
2022
Other Data, continued: September 30 June 30 March 31 December 31
( in thousands)
U.S. Mortgage Insurance Portfolio
New insurance written 8,769,160 $ 12,505,823 $ 13,498,080 $ 12,893,789 $ 13,011,432
New risk written 3,458,467 3,726,513 3,548,015 3,522,726
Average insurance in force 239,005,961 $ 237,270,093 $ 233,484,941 $ 228,885,174 $ 224,840,675
Insurance in force (end of period) 239,078,262 $ 238,661,612 $ 235,649,884 $ 231,537,417 $ 227,062,055
Gross risk in force (end of period) (1) 64,061,374 $ 63,605,057 $ 62,403,400 $ 60,879,979 $ 59,276,489
Risk in force (end of period) 54,591,590 $ 53,920,308 $ 53,290,643 $ 51,469,312 $ 49,903,626
Policies in force 825,248 821,690 815,751 808,596
Weighted average coverage (2) % 26.7 % 26.5 % 26.3 % 26.1 %
Annual persistency % 86.6 % 85.8 % 84.4 % 82.1 %
Loans in default (count) 13,391 12,480 12,773 13,433
Percentage of loans in default % 1.62 % 1.52 % 1.57 % 1.66 %
U.S. Mortgage Insurance Portfolio premium rate:
Base average premium rate (3) % 0.40 % 0.40 % 0.40 % 0.40 %
Single premium cancellations (4) % — % — % — % — %
Gross average premium rate % 0.40 % 0.40 % 0.40 % 0.40 %
Ceded premiums %) (0.05 %) (0.07 %) (0.06 %) (0.06 %)
Net average premium rate % 0.35 % 0.33 % 0.34 % 0.34 %
(1) Gross risk in force includes risk ceded under third-party reinsurance.
(2) Weighted average coverage is calculated by dividing end of period gross risk in force by end of period insurance in force.
(3) Base average premium rate is calculated by dividing annualized base premiums earned by average insurance in force for the period.
(4) Single premium cancellations is calculated by dividing annualized premiums on the cancellation of non-refundable single premium policies by average insurance in force for the period.

All values are in US Dollars.

Exhibit E
Essent Group Ltd. and Subsidiaries
Supplemental Information
New Insurance Written: Flow
NIW by Credit Score
Year Ended
December 31, 2022 December 31, 2023 December 31, 2022
( in thousands)
>=760 3,708,316 42.3 % $ 4,761,917 36.6 % $ 19,181,507 40.2 % $ 25,704,025 40.8 %
740-759 17.5 2,428,164 18.7 8,563,621 18.0 10,927,903 17.3
720-739 15.2 2,301,392 17.7 7,644,101 16.0 10,186,558 16.2
700-719 14.3 1,919,146 14.6 7,148,954 15.0 8,371,867 13.2
680-699 6.6 1,138,743 8.8 3,606,260 7.6 5,548,687 8.8
<=679 4.1 462,070 3.6 1,522,409 3.2 2,322,026 3.7
Total 8,769,160 100.0 % $ 13,011,432 100.0 % $ 47,666,852 100.0 % $ 63,061,066 100.0 %
Weighted average credit score 744 746 746
NIW by LTV
Year Ended
December 31, 2022 December 31, 2023 December 31, 2022
( in thousands)
85.00% and below 642,636 7.3 % $ 1,121,853 8.6 % $ 3,443,647 7.2 % $ 5,678,058 9.0 %
85.01% to 90.00% 21.3 3,075,304 23.6 9,822,916 20.6 16,732,649 26.5
90.01% to 95.00% 53.1 7,464,333 57.4 26,043,728 54.6 33,925,998 53.8
95.01% and above 18.3 1,349,942 10.4 8,356,561 17.6 6,724,361 10.7
Total 8,769,160 100.0 % $ 13,011,432 100.0 % $ 47,666,852 100.0 % $ 63,061,066 100.0 %
Weighted average LTV % 93 % 93 % 93 %
NIW by Product
Year Ended
December 31, 2022 December 31, 2023 December 31, 2022
Single Premium policies 2.5 % 4.3 % 3.5 % 5.6 %
Monthly Premium policies 97.5 95.7 96.5 94.4
100.0 % 100.0 % 100.0 % 100.0 %
NIW by Purchase vs. Refinance
Year Ended
December 31, 2022 December 31, 2023 December 31, 2022
Purchase 98.7 % 98.9 % 98.8 % 97.6 %
Refinance 1.3 1.1 1.2 2.4
100.0 % 100.0 % 100.0 % 100.0 %

All values are in US Dollars.

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

All values are in US Dollars.

Exhibit G
Essent Group Ltd. and Subsidiaries
Supplemental Information
Other Risk in Force
2023 2022
($ in thousands) December 31 September 30 June 30 March 31 December 31
GSE and other risk share (1):
Risk in Force $ 2,244,944 $ 2,247,393 $ 2,276,702 $ 2,098,033 $ 2,030,571
Reserve for losses and LAE $ 29 $ 54 $ 55 $ 65 $ 74
Weighted average credit score 749 749 749 749 749
Weighted average LTV 82 % 82 % 83 % 83 % 83 %
(1) GSE and other risk share includes GSE risk share and other reinsurance transactions. Essent Reinsurance Ltd. ("Essent Re") provides insurance or reinsurance relating to the risk in force on loans in reference pools acquired by Freddie Mac and Fannie Mae.
Exhibit H
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Essent Group Ltd. and Subsidiaries
Supplemental Information
U.S. Mortgage Insurance Portfolio Vintage Data
December 31, 2023
Insurance in Force
Year OriginalInsuranceWritten( in thousands) RemainingInsurancein Force( in thousands) % Remaining of Original<br>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 2.4 % 8,762 4.31 % 71.2 % 59.2 % 7.3 % 14.6 % 44.4 % 2.5 % 379 4.33 %
2015 26,193,656 1,345,073 5.1 8,143 4.23 82.9 72.5 5.0 18.2 39.1 2.5 319 3.92
2016 34,949,319 3,015,806 8.6 17,568 3.90 87.6 80.8 12.4 16.0 42.2 2.2 545 3.10
2017 43,858,322 4,792,840 10.9 28,705 4.28 91.4 72.6 21.0 20.5 37.6 3.4 1,166 4.06
2018 47,508,525 5,570,630 11.7 31,331 4.79 94.9 72.0 26.2 21.7 32.6 4.5 1,498 4.78
2019 63,569,183 12,360,264 19.4 59,051 4.23 88.4 69.0 24.9 18.8 35.4 4.3 1,913 3.24
2020 107,944,065 46,454,833 43.0 178,941 3.19 69.0 57.5 13.3 10.8 45.6 3.1 2,511 1.40
2021 84,218,250 61,442,213 73.0 200,700 3.09 86.9 63.3 15.6 13.8 40.5 7.1 3,410 1.70
2022 63,061,262 56,943,590 90.3 162,074 5.07 97.9 65.4 11.2 12.6 39.7 20.1 2,456 1.52
2023 47,666,852 45,720,492 95.9 126,737 6.66 98.8 72.4 18.1 10.9 39.4 14.5 622 0.49
Total 41.2 822,012 4.41 88.5 65.3 15.3 13.0 40.6 4.4 14,819 1.80
(1) Incurred loss ratio is calculated by dividing the sum of case reserves and cumulative amount paid for claims by cumulative net premiums earned.

All values are in US Dollars.

Exhibit I
Essent Group Ltd. and Subsidiaries
Supplemental Information
U.S. Mortgage Insurance Portfolio Reinsurance Vintage Data
December 31, 2023
( in thousands)
Insurance Linked Notes (1)
Earned Premiums Ceded
Deal Name Remaining<br>Insurance<br>in Force Remaining<br>Risk<br>in Force Original<br>Reinsurance in Force Remaining<br>Reinsurance in Force Losses<br>Ceded<br>to Date Original<br>First Layer<br>Retention Remaining<br>First Layer<br>Retention Quarter-to-Date Year-to-Date Reduction in PMIERs Minimum Required <br>Assets (3)
Radnor Re 2018-1 $ — $ — $ — $ — $ — $ — $ — $ (644) $ 1,137 $ —
Radnor Re 2019-1 — — — — — — — (513) 12,894 —
Radnor Re 2019-2 — — — — — — — (175) 44 —
Radnor Re 2020-1 6,887,869 1,797,683 495,889 2,350 — 215,605 213,230 748 6,536 —
Radnor Re 2021-1 31,673,378 8,233,067 557,911 309,199 — 278,956 278,638 2,764 11,558 232,809
Radnor Re 2021-2 35,958,961 9,735,395 439,407 339,890 — 279,415 279,051 3,898 16,059 276,777
Radnor Re 2022-1 31,520,927 8,522,229 237,868 231,142 — 303,761 303,324 4,311 17,092 212,651
Radnor Re 2023-1 30,639,242 8,380,934 281,462 281,462 — 281,463 281,463 3,641 6,759 266,826
Total $ 136,680,377 $ 36,669,308 $ 2,012,537 $ 1,164,043 $ — $ 1,359,200 $ 1,355,706 $ 14,030 $ 72,079 $ 989,063

All values are in US Dollars.

Excess of Loss Reinsurance (2)
Earned Premiums Ceded
Deal Name Vintage Remaining<br>Insurance<br>in Force Remaining<br>Risk<br>in Force Original<br>Reinsurance in Force Remaining<br>Reinsurance in Force Losses<br>Ceded<br>to Date Original<br>First Layer<br>Retention Remaining<br>First Layer<br>Retention Quarter-to-Date Year-to-Date Reduction in PMIERs Minimum Required <br>Assets (3)
XOL 2018-1 Jan. 2017 - Dec. 2017 $ — $ — $ — $ — $ — $ — $ — $ — $ 955 $ —
XOL 2019-1 Jan. 2018 - Dec. 2018 5,503,086 1,441,695 118,650 76,144 — 253,643 245,894 627 2,489 —
XOL 2020-1 Jan. 2019 - Dec. 2019 6,887,869 1,797,683 55,102 36,403 — 215,605 213,230 (4) 290 1,221 —
XOL 2022-1 Oct. 2021 - Dec. 2022 70,477,115 19,058,430 141,992 141,992 — 507,114 506,183 1,611 6,390 138,081
Total $ 82,868,070 $ 22,297,808 $ 315,744 $ 254,539 $ — $ 976,362 $ 965,220 $ 2,528 $ 11,055 $ 138,081 Quota Share Reinsurance (2)
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Losses Ceded Ceding Commission Earned Premiums Ceded
Year Ceding Percentage Remaining<br>Insurance<br>in Force Remaining<br>Risk<br>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 <br>Assets (3)
Sep. 2019 - Dec. 2020 (5) $ 51,655,811 $ 13,558,839 $ 11,586,936 $ 3,004,059 $ (164) $ (2,372) $ 2,493 $ 10,836 $ 4,448 $ 17,675 $ 178,426
Jan. 2022 - Dec. 2022 20% 56,890,266 15,401,694 11,378,053 3,080,339 2,258 9,731 1,921 7,801 5,908 24,554 233,244
Jan. 2023 - Dec. 2023 17.5% 40,609,952 11,238,879 7,106,742 1,966,804 1,461 2,584 1,283 3,120 4,154 9,136 142,432
Total $ 149,156,029 $ 40,199,412 $ 30,071,731 $ 8,051,202 $ 3,555 $ 9,943 $ 5,697 $ 21,757 $ 14,510 $ 51,365 $ 554,102
(1) Reinsurance provided by unaffiliated special purpose insurers through the issuance of mortgage insurance-linked notes ("ILNs").
(2) Reinsurance provided by panels of reinsurers.
(3) Represents the reduction in Essent Guaranty, Inc.'s Minimum Required Assets based on our interpretation of the PMIERs.
(4) First layer retentions shown are ILN retention levels as a result of overlapping coverage within the vintage.
(5) Reinsurance coverage on 40% of eligible single premium policies and 20% of all other eligible policies.
Exhibit J
--- --- --- --- --- --- ---
Essent Group Ltd. and Subsidiaries
Supplemental Information
U.S. Mortgage Insurance Portfolio Geographic Data
IIF by State
December 31, 2023 September 30, 2023 December 31, 2022
CA 13.0 % 13.0 % 13.2 %
FL 11.1 11.0 10.2
TX 10.5 10.5 10.4
CO 4.1 4.1 4.2
AZ 3.7 3.7 3.5
WA 3.5 3.4 3.4
GA 3.4 3.4 3.2
NC 2.9 2.8 2.7
VA 2.8 2.8 3.0
IL 2.8 2.8 3.1
All Others 42.2 42.5 43.1
Total 100.0 % 100.0 % 100.0 %
Gross RIF by State
December 31, 2023 September 30, 2023 December 31, 2022
CA 12.8 % 12.9 % 13.0 %
FL 11.4 11.3 10.5
TX 10.9 10.8 10.7
CO 4.0 4.0 4.1
AZ 3.8 3.8 3.6
WA 3.5 3.4 3.3
GA 3.4 3.5 3.2
NC 2.9 2.9 2.7
VA 2.7 2.8 3.0
IL 2.7 2.8 3.0
All Others 41.9 41.8 42.9
Total 100.0 % 100.0 % 100.0 %
Exhibit K
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Essent Group Ltd. and Subsidiaries
Supplemental Information
Rollforward of Defaults and Reserve for Losses and LAE
U.S. Mortgage Insurance Portfolio
Rollforward of Insured Loans in Default
Three Months Ended
2023 2022
December 31 September 30 June 30 March 31 December 31
Beginning default inventory 13,391 12,480 12,773 13,433 12,435
Plus: new defaults (A) 9,007 7,953 6,575 7,015 7,505
Less: cures (7,418) (6,902) (6,761) (7,574) (6,425)
Less: claims paid (148) (129) (96) (94) (73)
Less: rescissions and denials, net (13) (11) (11) (7) (9)
Ending default inventory 14,819 13,391 12,480 12,773 13,433
(A) New defaults remaining as of December 31, 2023 6,514 3,000 1,772 1,056 730
Cure rate (1) 28 % 62 % 73 % 85 % 90 %
Total amount paid for claims (in thousands) $ 3,411 $ 2,956 $ 1,890 $ 1,959 $ 1,441
Average amount paid per claim (in thousands) $ 23 $ 23 $ 20 $ 21 $ 20
Severity 54 % 66 % 58 % 59 % 46 %
Rollforward of Reserve for Losses and LAE
Three Months Ended
2023 2022
($ in thousands) December 31 September 30 June 30 March 31 December 31
Reserve for losses and LAE at beginning of period $ 226,617 $ 216,888 $ 215,957 $ 216,390 $ 212,392
Less: Reinsurance recoverables 20,656 17,958 16,357 14,618 13,244
Net reserve for losses and LAE at beginning of period 205,961 198,930 199,600 201,772 199,148
Add provision for losses and LAE occurring in:
Current period 38,922 35,609 31,377 32,693 36,141
Prior years (19,912) (25,533) (30,107) (32,864) (32,012)
Incurred losses and LAE during the period 19,010 10,076 1,270 (171) 4,129
Deduct payments for losses and LAE occurring in:
Current period 330 156 31 — 113
Prior years 3,244 2,889 1,909 2,001 1,392
Loss and LAE payments during the period 3,574 3,045 1,940 2,001 1,505
Net reserve for losses and LAE at end of period 221,397 205,961 198,930 199,600 201,772
Plus: Reinsurance recoverables 24,005 20,656 17,958 16,357 14,618
Reserve for losses and LAE at end of period $ 245,402 $ 226,617 $ 216,888 $ 215,957 $ 216,390
(1) The cure rate is calculated by dividing new defaults remaining as of the reporting date by the original number of new defaults reported in the quarterly period and subtracting that percentage from 100%.
Exhibit L
--- --- --- --- --- --- --- --- --- --- ---
Essent Group Ltd. and Subsidiaries
Supplemental Information
Detail of Reserves by Default Delinquency
U.S. Mortgage Insurance Portfolio
Percentage of <br>Policies in <br>Default Amount of Reserves Percentage of Reserves Defaulted RIF Reserves as a Percentage of <br>Defaulted RIF
( in thousands)
Missed Payments:
Three payments or less 49 % $ 44,607 20 % $ 527,419 8 %
Four to eleven payments 37 97,424 43 417,876 23
Twelve or more payments 13 78,540 35 132,257 59
Pending claims 1 5,550 2 6,302 88
Total case reserves 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
Percentage of <br>Policies in <br>Default Amount of Reserves Percentage of Reserves Defaulted RIF Reserves as a Percentage of <br>Defaulted RIF
( in thousands)
Missed Payments:
Three payments or less 46 % $ 32,242 16 % $ 411,624 8 %
Four to eleven payments 35 65,071 33 317,417 21
Twelve or more payments 18 98,291 49 147,247 67
Pending claims 1 3,815 2 4,860 78
Total case reserves 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

All values are in US Dollars.

Exhibit M
Essent Group Ltd. and Subsidiaries
Supplemental Information
Investments Available for Sale
Investments Available for Sale by Asset Class
Asset Class December 31, 2022
( in thousands) Percent Fair Value Percent
U.S. Treasury securities 996,382 18.9 % $ 556,438 11.7 %
U.S. agency securities 0.1 49,058 1.0
U.S. agency mortgage-backed securities 15.6 783,743 16.5
Municipal debt securities 10.5 602,690 12.8
Non-U.S. government securities 1.3 62,399 1.3
Corporate debt securities 24.7 1,414,321 29.8
Residential and commercial mortgage securities 9.8 511,824 10.8
Asset-backed securities 10.7 624,561 13.2
Money market funds 8.4 136,591 2.9
Total investments available for sale 5,263,739 100.0 % $ 4,741,625 100.0 %
Investments Available for Sale by Credit Rating
Rating (1) December 31, 2022
( in thousands) Percent Fair Value Percent
Aaa 2,561,363 53.2 % $ 2,122,599 46.2 %
Aa1 2.2 111,262 2.4
Aa2 6.0 325,241 7.1
Aa3 4.3 232,500 5.0
A1 7.8 396,095 8.6
A2 6.8 410,163 8.9
A3 5.3 268,928 5.8
Baa1 4.6 236,793 5.1
Baa2 4.7 221,308 4.8
Baa3 3.4 187,117 4.1
Below Baa3 1.7 93,028 2.0
Total (2) 4,819,618 100.0 % $ 4,605,034 100.0 %
(1) Based on ratings issued by Moody's, if available. S&P or Fitch rating utilized if Moody's not available.
(2) Excludes 444,121 and 136,591 of money market funds at December 31, 2023 and December 31, 2022, respectively.
Investments Available for Sale by Duration and Book Yield
Effective Duration December 31, 2022
( in thousands) Percent Fair Value Percent
< 1 Year 1,892,074 35.9 % $ 1,245,839 26.3 %
1 to < 2 Years 7.1 534,038 11.3
2 to < 3 Years 10.2 511,701 10.8
3 to < 4 Years 7.6 525,683 11.1
4 to < 5 Years 7.2 400,540 8.4
5 or more Years 32.0 1,523,824 32.1
Total investments available for sale 5,263,739 100.0 % $ 4,741,625 100.0 %
Pre-tax investment income yield:
Three months ended December 31, 2023 %
Year ended December 31, 2023 %

All values are in US Dollars.

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

All values are in US Dollars.

Exhibit N
Essent Group Ltd. and Subsidiaries
Supplemental Information
U.S. Mortgage Insurance Company Capital
2023 2022
December 31 September 30 June 30 March 31 December 31
( in thousands)
U.S. Mortgage Insurance Subsidiaries:
Combined statutory capital (1) $ 3,376,117 $ 3,309,522 $ 3,243,086 $ 3,207,102 $ 3,178,151
Combined net risk in force (2) $ 34,549,500 $ 34,203,678 $ 34,019,643 $ 33,038,825 $ 32,265,701
Risk-to-capital ratios: (3)
10.6:1 10.7:1 10.8:1 10.6:1 10.5:1
0.4:1 0.5:1 0.5:1 0.5:1 0.6:1
10.2:1 10.3:1 10.5:1 10.3:1 10.2:1
Essent Guaranty, Inc. PMIERs Data (5):
$ 3,379,936 $ 3,318,179 $ 3,245,481 $ 3,226,436 $ 3,191,047
1,985,545 1,910,659 1,991,741 1,917,769 1,832,363
$ 1,394,391 $ 1,407,520 $ 1,253,740 $ 1,308,667 $ 1,358,684
170 % 174 % 163 % 168 % 174 %
Essent Reinsurance Ltd.:
Stockholder's equity (GAAP basis) $ 1,758,665 $ 1,684,122 $ 1,633,763 $ 1,573,013 $ 1,478,772
Net risk in force (2) $ 22,043,926 $ 21,739,419 $ 21,327,762 $ 20,305,111 $ 19,454,046
(1) Combined statutory capital equals the sum of statutory capital of Essent Guaranty, Inc. plus Essent Guaranty of PA, Inc., after eliminating the impact of intercompany transactions. Statutory capital is computed based on accounting practices prescribed or permitted by the Pennsylvania Insurance Department and the National Association of Insurance Commissioners Accounting Practices and Procedures Manual.
(2) Net risk in force represents total risk in force, net of reinsurance ceded and net of exposures on policies for which loss reserves have been established.
(3) The risk-to-capital ratio is calculated as the ratio of net risk in force to statutory capital.
(4) The combined risk-to-capital ratio equals the sum of the net risk in force of Essent Guaranty, Inc. and Essent Guaranty of PA, Inc. divided by the combined statutory capital.
(5) Data is based on our interpretation of the PMIERs as of the dates indicated.
(6) PMIERs sufficiency ratio is calculated by dividing Available Assets by Minimum Required Assets.

All values are in US Dollars.

Exhibit O
Essent Group Ltd. and Subsidiaries
Supplemental Information
Loss, Expense and Combined Ratios and Reconciliation of Non-GAAP Financial Measures
2022
September 30 June 30 March 31 December 31
Loss Ratio (1) % 4.4 % 0.6 % (0.1) % 2.0 %
Expense Ratio (2) % 27.3 % 19.8 % 22.8 % 22.6 %
Combined Ratio % 31.7 % 20.4 % 22.7 % 24.6 %
We believe that loss, expense and combined ratios are important measures of our financial performance. As a result of the July 1, 2023 acquisition of Agents National Title and Boston National Title (collectively "Title"), the consolidated loss, expense and combined ratios ("Consolidated Ratios") for the three months and year ended December 31, 2023 lack comparability with prior periods. In order to provide investors with more comparative information to prior periods, Essent has prepared the table below to reconcile the Consolidated Ratios to Consolidated Ratios Excluding Title, as shown below. Consolidated Ratios Excluding Title are financial measures that are not calculated under standards or rules that comprise accounting principles generally accepted in the United States (GAAP) and are referred to as non-GAAP measures. Consolidated Ratios Excluding Title are measures used to monitor our results and should not be viewed as a substitute for those measures determined in accordance with GAAP.The following table sets forth the reconciliation of the loss, expense and combined Consolidated Ratios Excluding Title to the most comparable GAAP amount for the three months and year ended December 31, 2023, in accordance with Regulation G:
Year Ended <br>December 31, 2023
Acquired Title Consolidated Excluding Title Consolidated Acquired Title Consolidated Excluding Title
( in thousands)
Revenues:
Net premiums earned 245,614 $ 17,365 $ 228,249 $ 916,906 $ 37,969 $ 878,937
Net investment income 432 50,149 186,139 837 185,302
Realized investment losses, net — (4,892) (7,204) — (7,204)
Loss from other invested assets — (421) (11,118) — (11,118)
Settlement services (3) 1,475 — 3,512 3,512 —
Other income 503 4,417 21,524 907 20,617
Total revenues 19,775 277,502 1,109,759 43,225 1,066,534
Losses and expenses:
Provision (benefit) for losses and LAE 655 18,985 31,542 1,422 30,120
Other underwriting and operating expenses 11,595 43,653 200,431 25,061 175,370
Premiums retained by agents 11,475 — 24,650 24,650 —
Interest expense — 7,953 30,137 — 30,137
Total losses and expenses 23,725 70,591 286,760 51,133 235,627
Loss ratio (1) % 3.5 % 8.3 % 3.4 % 3.4 % 3.4 %
Expense ratio (2) % 122.5 % 19.1 % 24.5 % 119.8 % 20.0 %
Combined ratio % 126.0 % 27.4 % 27.9 % 123.2 % 23.4 %
(1) Loss ratio is calculated by dividing the provision for losses and LAE by the sum of net premiums earned and settlement services revenue, if applicable.
(2) Expense ratio is calculated by dividing the sum of other underwriting and operating expenses and premiums retained by agents by the sum of net premiums earned and settlement services revenue, if applicable.
(3) Settlement services revenue is included in "Other income" within Exhibit A and Exhibit C.

All values are in US Dollars.

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