Equibles

8-K

Essent Group Ltd. (ESNT)

8-K 2024-08-02 For: 2024-08-02
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): August 2, 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 2.02.    Results of Operations and Financial Condition

On August 2, 2024, Essent Group Ltd. (the “Company”) issued a press release announcing its financial results for the quarter ended June 30, 2024. 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 August 2, 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: August 2, 2024

ESSENT GROUP LTD.

By:    /s/ David B. Weinstock

Name: David B. Weinstock

Title: Senior Vice President and Chief Financial Officer

Document

Exhibit 99.1

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

HAMILTON, Bermuda--(BUSINESS WIRE)--August 2, 2024--Essent Group Ltd. (NYSE: ESNT) today reported net income for the quarter ended June 30, 2024 of $203.6 million or $1.91 per diluted share, compared to $172.2 million or $1.61 per diluted share for the quarter ended June 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 September 10, 2024, to shareholders of record on August 30, 2024.

“We are pleased with our financial results in the second quarter, as our high-quality portfolio and resilience in the housing and labor markets translated to favorable credit performance, and the current rate environment continues to benefit investment income and persistency,” said Mark A. Casale, Chairman and Chief Executive Officer. “The Essent franchise achieved another milestone by closing on our inaugural senior debt offering on July 1. Combined with an amended and extended revolving credit facility, we now have over $1.3 billion in available holding company liquidity.”

Financial Highlights:

•New insurance written for the second quarter of 2024 was $12.5 billion, compared to $8.3 billion in the first quarter of 2024 and $13.5 billion in the second quarter of 2023.

•Insurance in force as of June 30, 2024 was $240.7 billion, compared to $238.5 billion as of March 31, 2024 and $235.6 billion as of June 30, 2023.

•Net investment income for the first half of 2024 was $108.2 million, up 22% from the first half of 2023.

•Effective July 1, 2024, we entered into an excess of loss transaction with a panel of highly rated third-party reinsurers covering 15% of all eligible policies written by Essent Guaranty, Inc. in calendar year 2024.

•On July 1, 2024, Essent closed two transactions that represent approximately $1 billion in total debt capacity, comprised of $500 million of senior unsecured notes and a $500 million unsecured revolving credit facility.

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.

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 Ended June 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
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Essent Group Ltd. and Subsidiaries
Condensed Consolidated Statements of Comprehensive Income (Unaudited)
Three Months Ended June 30, Six Months Ended June 30,
(In thousands, except per share amounts) 2024 2023 2024 2023
Revenues:
Direct premiums written $ 272,910 $ 249,167 $ 541,841 $ 488,658
Ceded premiums (27,344) (39,546) (57,735) (73,137)
Net premiums written 245,566 209,621 484,106 415,521
Decrease in unearned premiums 6,325 3,608 13,375 8,966
Net premiums earned 251,891 213,229 497,481 424,487
Net investment income 56,086 45,250 108,171 88,486
Realized investment gains (losses), net (1,164) (1,589) (2,304) (2,077)
Income (loss) from other invested assets (419) (4,852) (2,334) (7,554)
Other income 6,548 8,090 10,285 13,032
Total revenues 312,942 260,128 611,299 516,374
Losses and expenses:
Provision (benefit) for losses and LAE (334) 1,260 9,579 1,080
Other underwriting and operating expenses 55,987 42,174 113,336 90,369
Premiums retained by agents 10,215 — 19,706 —
Interest expense 7,849 7,394 15,711 14,330
Total losses and expenses 73,717 50,828 158,332 105,779
Income before income taxes 239,225 209,300 452,967 410,595
Income tax expense 35,616 37,067 67,639 67,535
Net income $ 203,609 $ 172,233 $ 385,328 $ 343,060
Earnings per share:
Basic $ 1.93 $ 1.62 $ 3.65 $ 3.22
Diluted 1.91 1.61 3.61 3.20
Weighted average shares outstanding:
Basic 105,657 106,249 105,677 106,594
Diluted 106,778 107,093 106,774 107,338
Net income $ 203,609 $ 172,233 $ 385,328 $ 343,060
Other comprehensive income (loss):
Change in unrealized appreciation (depreciation) of investments (5,375) (36,098) (27,141) 22,655
Total other comprehensive income (loss) (5,375) (36,098) (27,141) 22,655
Comprehensive income $ 198,234 $ 136,135 $ 358,187 $ 365,715
Exhibit B
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Essent Group Ltd. and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)
December 31,
(In thousands, except per share amounts) 2023
Assets
Investments
Fixed maturities available for sale, at fair value 3,931,471 $ 4,335,008
Short-term investments available for sale, at fair value 928,731
Total investments available for sale 5,263,739
Other invested assets 277,226
Total investments 5,540,965
Cash 141,787
Accrued investment income 35,689
Accounts receivable 63,266
Deferred policy acquisition costs 9,139
Property and equipment 41,304
Prepaid federal income tax 470,646
Goodwill and intangible assets, net 72,826
Other assets 51,051
Total assets 6,692,745 $ 6,426,673
Liabilities and Stockholders' Equity
Liabilities
Reserve for losses and LAE 260,688 $ 260,095
Unearned premium reserve 140,285
Net deferred tax liability 362,753
Credit facility borrowings, net of deferred costs 421,920
Other accrued liabilities 139,070
Total liabilities 1,324,123
Commitments and contingencies
Stockholders' Equity
Common shares, 0.015 par value:
Authorized - 233,333; issued and outstanding - 106,372 shares in 2024 and 106,597 shares in 2023 1,599
Additional paid-in capital 1,299,869
Accumulated other comprehensive loss (280,496)
Retained earnings 4,081,578
Total stockholders' equity 5,102,550
Total liabilities and stockholders' equity 6,692,745 $ 6,426,673
Return on average equity (1) % 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.

All values are in US Dollars.

Exhibit C
Essent Group Ltd. and Subsidiaries
Supplemental Information
Consolidated Historical Quarterly Data
2023
Selected Income Statement Data March 31 December 31 September 30 June 30
(In thousands, except per share amounts)
Revenues:
Net premiums earned:
U.S. Mortgage Insurance Portfolio 217,513 $ 212,479 $ 211,083 $ 209,351 $ 195,502
GSE and other risk share 17,826 17,166 16,850 17,727
Title insurance 15,285 17,365 20,604 —
Net premiums earned 245,590 245,614 246,805 213,229
Net investment income 52,085 50,581 47,072 45,250
Realized investment (losses) gains, net (1,140) (4,892) (235) (1,589)
(Loss) income from other invested assets (1,915) (421) (3,143) (4,852)
Other income (loss) (1) 3,737 6,395 5,609 8,090
Total revenues 298,357 297,277 296,108 260,128
Losses and expenses:
Provision (benefit) for losses and LAE 9,913 19,640 10,822 1,260
Other underwriting and operating expenses 57,349 55,248 54,814 42,174
Premiums retained by agents 9,491 11,475 13,175 —
Interest expense 7,862 7,953 7,854 7,394
Total losses and expenses 84,615 94,316 86,665 50,828
Income before income taxes 213,742 202,961 209,443 209,300
Income tax expense (2) 32,023 27,594 31,484 37,067
Net income 203,609 $ 181,719 $ 175,367 $ 177,959 $ 172,233
Earnings per share:
Basic 1.93 $ 1.72 $ 1.66 $ 1.68 $ 1.62
Diluted 1.70 1.64 1.66 1.61
Weighted average shares outstanding:
Basic 105,697 105,733 105,979 106,249
Diluted 106,770 106,823 107,025 107,093
Book value per share 50.58 $ 48.96 $ 47.87 $ 44.98 $ 44.24
Return on average equity (annualized) % 14.1 % 14.2 % 14.9 % 14.7 %
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) % 7.06 % 7.11 % 7.07 % 6.87 %
Debt-to-capital % 7.52 % 7.69 % 8.12 % 8.24 %
(1) Other income includes net favorable (unfavorable) changes in the fair value of embedded derivatives associated with certain of our third-party reinsurance agreements, which for the quarters ended June 30, 2024, March 31, 2024, December 31, 2023, September 30, 2023, and June 30, 2023, were 732, (1,902), 412, (898), and 2,726, respectively.
(2) Income tax expense for the quarters ended June 30,2024, March 31, 2024, December 31, 2023, September 30, 2023, and June 30, 2023 includes 556, (1,041), (1,132), (763), and (888), 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. 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
2023
Other Data: March 31 December 31 September 30 June 30
( in thousands)
U.S. Mortgage Insurance Portfolio
New insurance written 12,503,125 $ 8,323,544 $ 8,769,160 $ 12,505,823 $ 13,498,080
New risk written 2,289,508 2,409,340 3,458,467 3,726,513
Average insurance in force 239,538,571 $ 238,595,268 $ 239,005,961 $ 237,270,093 $ 233,484,941
Insurance in force (end of period) 240,669,165 $ 238,477,402 $ 239,078,262 $ 238,661,612 $ 235,649,884
Gross risk in force (end of period) (1) 65,269,064 $ 64,247,810 $ 64,061,374 $ 63,605,057 $ 62,403,400
Risk in force (end of period) 55,521,538 $ 54,686,533 $ 54,591,590 $ 53,920,308 $ 53,290,643
Policies in force 815,752 822,012 825,248 821,690
Weighted average coverage (2) % 26.9 % 26.8 % 26.7 % 26.5 %
Annual persistency % 86.9 % 86.9 % 86.6 % 85.8 %
Loans in default (count) 13,992 14,819 13,391 12,480
Percentage of loans in default % 1.72 % 1.80 % 1.62 % 1.52 %
U.S. Mortgage Insurance Portfolio premium rate:
Base average premium rate (3) % 0.41 % 0.40 % 0.40 % 0.40 %
Single premium cancellations (4) % — % — % — % — %
Gross average premium rate % 0.41 % 0.40 % 0.40 % 0.40 %
Ceded premiums %) (0.05 %) (0.05 %) (0.05 %) (0.07 %)
Net average premium rate % 0.36 % 0.35 % 0.35 % 0.33 %
(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 - U.S. Mortgage Insurance Portfolio
New Insurance Written: Flow
NIW by Credit Score
Six Months Ended
June 30, 2023 June 30, 2024 June 30, 2023
( in thousands)
>=760 5,451,182 43.6 % $ 5,413,790 40.1 % $ 9,047,782 43.4 % $ 10,260,848 38.9 %
740-759 17.3 2,428,773 18.0 3,575,472 17.2 4,826,755 18.3
720-739 14.6 2,194,400 16.3 3,064,399 14.7 4,399,244 16.7
700-719 12.7 2,022,302 15.0 2,725,597 13.1 4,025,194 15.2
680-699 7.0 1,032,061 7.6 1,433,473 6.9 2,132,876 8.1
<=679 4.8 406,754 3.0 979,946 4.7 746,952 2.8
Total 12,503,125 100.0 % $ 13,498,080 100.0 % $ 20,826,669 100.0 % $ 26,391,869 100.0 %
Weighted average credit score 746 748 746
NIW by LTV
Six Months Ended
June 30, 2023 June 30, 2024 June 30, 2023
( in thousands)
85.00% and below 854,349 6.8 % $ 988,752 7.3 % $ 1,414,248 6.8 % $ 1,951,761 7.4 %
85.01% to 90.00% 19.4 2,819,310 20.9 4,155,796 20.0 5,505,138 20.9
90.01% to 95.00% 55.0 7,339,533 54.4 11,392,508 54.7 14,769,646 55.9
95.01% and above 18.8 2,350,485 17.4 3,864,117 18.5 4,165,324 15.8
Total 12,503,125 100.0 % $ 13,498,080 100.0 % $ 20,826,669 100.0 % $ 26,391,869 100.0 %
Weighted average LTV % 93 % 93 % 93 %
NIW by Product
Six Months Ended
June 30, 2023 June 30, 2024 June 30, 2023
Single Premium policies 1.3 % 4.3 % 1.6 % 4.1 %
Monthly Premium policies 98.7 95.7 98.4 95.9
100.0 % 100.0 % 100.0 % 100.0 %
NIW by Purchase vs. Refinance
Six Months Ended
June 30, 2023 June 30, 2024 June 30, 2023
Purchase 97.8 % 98.8 % 97.6 % 98.7 %
Refinance 2.2 1.2 2.4 1.3
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 March 31, 2024 June 30, 2023
( in thousands)
>=760 97,668,435 40.6 % $ 96,712,431 40.6 % $ 95,925,520 40.8 %
740-759 17.4 41,477,680 17.4 40,733,799 17.3
720-739 15.7 37,342,339 15.7 36,791,104 15.6
700-719 13.4 32,023,895 13.4 30,970,132 13.1
680-699 8.2 19,664,999 8.2 19,667,866 8.3
<=679 4.7 11,256,058 4.7 11,561,463 4.9
Total 240,669,165 100.0 % $ 238,477,402 100.0 % $ 235,649,884 100.0 %
Weighted average credit score 746 746
Gross RIF by FICO score March 31, 2024 June 30, 2023
( in thousands)
>=760 26,238,140 40.2 % $ 25,806,552 40.2 % $ 25,138,762 40.3 %
740-759 17.7 11,326,253 17.6 10,922,780 17.5
720-739 15.9 10,206,055 15.9 9,896,425 15.9
700-719 13.6 8,757,648 13.6 8,319,353 13.3
680-699 8.2 5,321,802 8.3 5,248,349 8.4
<=679 4.4 2,829,500 4.4 2,877,731 4.6
Total 65,269,064 100.0 % $ 64,247,810 100.0 % $ 62,403,400 100.0 %
Portfolio by LTV
IIF by LTV March 31, 2024 June 30, 2023
( in thousands)
85.00% and below 16,927,111 7.0 % $ 18,397,395 7.7 % $ 22,427,649 9.5 %
85.01% to 90.00% 25.7 62,218,749 26.1 63,562,258 27.0
90.01% to 95.00% 51.3 120,666,455 50.6 115,768,826 49.1
95.01% and above 16.0 37,194,803 15.6 33,891,151 14.4
Total 240,669,165 100.0 % $ 238,477,402 100.0 % $ 235,649,884 100.0 %
Weighted average LTV % 93 % 93 %
Gross RIF by LTV March 31, 2024 June 30, 2023
( in thousands)
85.00% and below 2,010,864 3.1 % $ 2,188,074 3.4 % $ 2,667,981 4.3 %
85.01% to 90.00% 23.3 15,329,091 23.9 15,583,198 25.0
90.01% to 95.00% 55.8 35,556,840 55.3 34,026,320 54.5
95.01% and above 17.8 11,173,805 17.4 10,125,901 16.2
Total 65,269,064 100.0 % $ 64,247,810 100.0 % $ 62,403,400 100.0 %
Portfolio by Loan Amortization Period
IIF by Loan Amortization Period March 31, 2024 June 30, 2023
( in thousands)
FRM 30 years and higher 235,138,420 97.7 % $ 232,753,590 97.6 % $ 228,745,641 97.1 %
FRM 20-25 years 0.5 1,473,431 0.6 2,124,690 0.9
FRM 15 years 0.5 1,359,795 0.6 1,953,448 0.8
ARM 5 years and higher 1.3 2,890,586 1.2 2,826,105 1.2
Total 240,669,165 100.0 % $ 238,477,402 100.0 % $ 235,649,884 100.0 %

All values are in US Dollars.

Exhibit G
Essent Group Ltd. and Subsidiaries
Supplemental Information
Other Risk in Force
2024 2023
($ in thousands) June 30 March 31 December 31 September 30 June 30
GSE and other risk share (1):
Risk in Force $ 2,304,885 $ 2,307,267 $ 2,244,944 $ 2,247,393 $ 2,276,702
Reserve for losses and LAE $ 33 $ 32 $ 29 $ 54 $ 55
Weighted average credit score 750 750 749 749 749
Weighted average LTV 82 % 82 % 82 % 82 % 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
June 30, 2024
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 1.7 % 5,772 4.28 % 66.1 % 49.8 % 1.2 % 10.3 % 49.0 % 2.4 % 252 4.37 %
2015 26,193,656 1,038,672 4.0 6,156 4.27 79.8 66.5 5.5 18.1 39.1 2.3 245 3.98
2016 34,949,319 2,570,524 7.4 15,203 3.92 86.8 79.2 13.3 16.3 41.6 2.0 427 2.81
2017 43,858,322 4,139,552 9.4 25,251 4.29 91.1 77.1 22.5 21.2 36.6 3.1 990 3.92
2018 47,508,525 5,073,930 10.7 28,900 4.80 95.1 73.3 26.7 21.8 32.4 4.1 1,257 4.35
2019 63,569,183 11,216,155 17.6 54,299 4.23 88.9 71.1 25.6 18.9 35.2 3.8 1,635 3.01
2020 107,944,065 40,789,474 37.8 159,965 3.20 71.0 60.5 14.0 10.9 45.5 2.6 2,153 1.35
2021 84,218,250 55,842,833 66.3 185,000 3.09 88.2 65.1 16.3 13.8 40.4 6.0 3,042 1.64
2022 63,061,262 54,555,338 86.5 156,491 5.08 98.0 65.8 11.4 12.6 39.6 16.8 2,598 1.66
2023 47,666,852 43,986,658 92.3 123,145 6.65 98.8 72.7 18.5 11.0 38.9 15.7 1,297 1.05
2024 (through June 30) 20,826,669 20,408,337 98.0 54,055 6.88 97.6 73.4 18.8 11.7 42.9 5.8 58 0.11
Total 40.1 814,237 4.66 90.3 67.3 16.0 12.9 40.6 4.3 13,954 1.71
(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
June 30, 2024
( 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 2021-1 $ 27,796,132 $ 7,390,779 $ 557,911 $ 250,732 $ — $ 278,956 $ 278,227 $ 2,148 $ 4,473 $ 174,722
Radnor Re 2021-2 32,876,424 9,007,485 439,407 301,015 — 279,415 277,770 3,563 7,237 239,363
Radnor Re 2022-1 29,790,115 8,096,398 237,868 209,409 — 303,761 302,032 3,736 7,653 192,656
Radnor Re 2023-1 29,594,148 8,102,672 281,462 281,462 — 281,463 281,434 3,473 6,952 266,826
Total $ 120,056,819 $ 32,597,334 $ 1,516,648 $ 1,042,618 $ — $ 1,143,595 $ 1,139,463 $ 12,920 $ 26,315 (5) $ 873,567

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 2019-1 Jan. 2018 - Dec. 2018 $ 5,024,587 $ 1,321,732 $ 118,650 $ 76,144 $ — $ 253,643 $ 244,991 $ 607 $ 1,227 $ —
XOL 2020-1 Jan. 2019 - Aug. 2019 6,290,687 1,658,671 55,102 32,770 — 215,605 212,557 267 547 —
XOL 2022-1 Oct. 2021 - Dec. 2022 67,094,902 18,213,963 141,992 141,992 — 507,114 502,788 1,593 3,186 137,802
XOL 2023-1 Jan. 2023 - Dec. 2023 39,252,349 10,868,626 36,627 36,627 — 366,270 366,154 434 868 35,310
Total $ 117,662,525 $ 32,062,992 $ 352,371 $ 287,533 $ — $ 1,342,632 $ 1,326,490 $ 2,901 $ 5,828 $ 173,112
Quota Share Reinsurance (2)
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Losses Ceded Ceding Commission Earned Premiums Ceded
Year 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 $ 45,488,690 $ 12,209,907 $ 10,259,829 $ 2,717,800 $ (609) $ (790) $ 2,264 $ 4,645 $ 3,580 $ 7,803 $ 161,813
Jan. 2022 - Dec. 2022 54,504,030 14,796,646 10,900,806 2,959,329 (469) 1,255 1,879 3,784 3,101 8,445 218,858
Jan. 2023 - Dec. 2023 39,137,562 10,840,618 6,849,073 1,897,108 1,020 2,461 1,349 2,715 3,852 8,163 143,367
Jan. 2024 - Dec. 2024 20,388,139 5,620,923 3,058,221 843,138 159 159 407 508 1,035 1,252 58,872
Total $ 159,518,421 $ 43,468,094 $ 31,067,929 $ 8,417,375 $ 101 $ 3,085 $ 5,899 $ 11,652 $ 11,568 $ 25,663 $ 582,910
(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 (45) and (71) of benefit in ceded premium on retired ILN's for the three and six months ended June 30, 2024, respectively.

All values are in US Dollars.

Exhibit J
Essent Group Ltd. and Subsidiaries
Supplemental Information
U.S. Mortgage Insurance Portfolio Geographic Data
IIF by State
June 30, 2024 March 31, 2024 June 30, 2023
CA 12.7 % 12.9 % 13.1 %
FL 11.6 11.3 10.8
TX 10.8 10.6 10.5
CO 4.1 4.1 4.1
AZ 3.8 3.8 3.7
GA 3.6 3.5 3.3
WA 3.4 3.5 3.4
NC 3.0 2.9 2.8
IL 2.7 2.7 2.9
VA 2.7 2.7 2.9
All Others 41.6 42.0 42.5
Total 100.0 % 100.0 % 100.0 %
Gross RIF by State
June 30, 2024 March 31, 2024 June 30, 2023
CA 12.6 % 12.8 % 13.0 %
FL 11.8 11.6 11.1
TX 11.1 10.9 10.8
CO 4.1 4.1 4.1
AZ 3.8 3.8 3.8
GA 3.7 3.6 3.4
WA 3.4 3.4 3.4
NC 3.0 2.9 2.8
IL 2.6 2.7 2.8
VA 2.6 2.7 2.8
All Others 41.3 41.5 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
June 30 March 31 December 31 September 30 June 30
Beginning default inventory 13,992 14,819 13,391 12,480 12,773
Plus: new defaults (A) 8,119 8,260 9,007 7,953 6,575
Less: cures (7,956) (8,951) (7,418) (6,902) (6,761)
Less: claims paid (183) (123) (148) (129) (96)
Less: rescissions and denials, net (18) (13) (13) (11) (11)
Ending default inventory 13,954 13,992 14,819 13,391 12,480
(A) New defaults remaining as of June 30, 2024 5,944 2,466 1,922 1,204 699
Cure rate (1) 27 % 70 % 79 % 85 % 89 %
Total amount paid for claims (in thousands) $ 5,566 $ 3,605 $ 3,411 $ 2,956 $ 1,890
Average amount paid per claim (in thousands) $ 30 $ 29 $ 23 $ 23 $ 20
Severity 60 % 65 % 54 % 66 % 58 %
Rollforward of Reserve for Losses and LAE
Three Months Ended
2024 2023
($ in thousands) June 30 March 31 December 31 September 30 June 30
Reserve for losses and LAE at beginning of period $ 253,565 $ 245,402 $ 226,617 $ 216,888 $ 215,957
Less: Reinsurance recoverables 26,570 24,005 20,656 17,958 16,357
Net reserve for losses and LAE at beginning of period 226,995 221,397 205,961 198,930 199,600
Add provision for losses and LAE occurring in:
Current period $ 30,653 $ 39,396 $ 38,922 $ 35,609 $ 31,377
Prior years (31,880) (30,062) (19,912) (25,533) (30,107)
Incurred losses and LAE during the period (1,227) 9,334 19,010 10,076 1,270
Deduct payments for losses and LAE occurring in:
Current period 478 1 330 156 31
Prior years 5,205 3,735 3,244 2,889 1,909
Loss and LAE payments during the period 5,683 3,736 3,574 3,045 1,940
Net reserve for losses and LAE at end of period 220,085 226,995 221,397 205,961 198,930
Plus: Reinsurance recoverables 26,022 26,570 24,005 20,656 17,958
Reserve for losses and LAE at end of period $ 246,107 $ 253,565 $ 245,402 $ 226,617 $ 216,888
(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 50 % $ 43,396 19 % $ 525,876 8 %
Four to eleven payments 35 93,489 41 383,685 24
Twelve or more payments 14 82,529 37 135,616 61
Pending claims 1 7,562 3 8,540 89
Total case reserves 100 % 226,976 100 % $ 1,053,717 22 %
IBNR 17,023
LAE 2,108
Total reserves for losses and LAE $ 246,107
Average reserve per default:
Case $ 16.3
Total $ 17.6
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 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 45 % $ 33,864 17 % $ 388,012 9 %
Four to eleven payments 38 82,196 41 348,955 24
Twelve or more payments 16 78,236 39 123,903 63
Pending claims 1 5,680 3 6,687 85
Total case reserves 100 % 199,976 100 % $ 867,557 23 %
IBNR 14,998
LAE 1,914
Total reserves for losses and LAE $ 216,888
Average reserve per default:
Case $ 16.0
Total $ 17.4
Default Rate

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, 2023
( in thousands) Percent Fair Value Percent
U.S. Treasury securities 999,176 18.3 % $ 996,382 18.9 %
U.S. agency securities — 7,195 0.1
U.S. agency mortgage-backed securities 13.9 821,346 15.6
Municipal debt securities 9.7 547,258 10.5
Non-U.S. government securities 1.2 67,447 1.3
Corporate debt securities 21.1 1,297,055 24.7
Residential and commercial mortgage securities 9.1 517,940 9.8
Asset-backed securities 8.3 564,995 10.7
Money market funds 18.4 444,121 8.4
Total investments available for sale 5,454,983 100.0 % $ 5,263,739 100.0 %
Investments Available for Sale by Credit Rating
Rating (1) December 31, 2023
( in thousands) Percent Fair Value Percent
Aaa 2,409,458 54.1 % $ 2,561,363 53.2 %
Aa1 2.1 104,474 2.2
Aa2 6.0 291,501 6.0
Aa3 4.1 208,882 4.3
A1 7.9 377,188 7.8
A2 5.7 329,423 6.8
A3 5.7 253,081 5.3
Baa1 4.7 220,901 4.6
Baa2 4.5 226,449 4.7
Baa3 3.6 166,121 3.4
Below Baa3 1.6 80,235 1.7
Total (2) 4,453,609 100.0 % $ 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 1,001,374 and 444,121 of money market funds at June 30, 2024 and December 31, 2023, respectively.
Investments Available for Sale by Duration and Book Yield
Effective Duration December 31, 2023
( in thousands) Percent Fair Value Percent
< 1 Year 2,334,120 42.8 % $ 1,892,074 35.9 %
1 to < 2 Years 5.7 371,583 7.1
2 to < 3 Years 8.1 538,775 10.2
3 to < 4 Years 7.4 402,668 7.6
4 to < 5 Years 7.0 376,722 7.2
5 or more Years 29.0 1,681,917 32.0
Total investments available for sale 5,454,983 100.0 % $ 5,263,739 100.0 %
Pre-tax investment income yield:
Three months ended %
Six months ended June 30, 2024 %

All values are in US Dollars.

Holding company net cash and investments available for sale:
( in thousands)
As of June 30, 2024 808,389
As of December 31, 2023 693,507

All values are in US Dollars.

Exhibit N
Essent Group Ltd. and Subsidiaries
Supplemental Information
U.S. Mortgage Insurance Company Capital
2024 2023
June 30 March 31 December 31 September 30 June 30
( in thousands)
U.S. Mortgage Insurance Subsidiaries:
Combined statutory capital (1) $ 3,530,462 $ 3,453,553 $ 3,376,117 $ 3,309,522 $ 3,243,086
Combined net risk in force (2) $ 34,812,227 $ 34,463,082 $ 34,549,500 $ 34,203,678 $ 34,019,643
Risk-to-capital ratios: (3)
10.2:1 10.3:1 10.6:1 10.7:1 10.8:1
0.3:1 0.4:1 0.4:1 0.5:1 0.5:1
9.9:1 10.0:1 10.2:1 10.3:1 10.5:1
Essent Guaranty, Inc. PMIERs Data (5):
$ 3,513,609 $ 3,464,119 $ 3,379,936 $ 3,318,179 $ 3,245,481
2,052,135 1,999,928 1,985,545 1,910,659 1,991,741
$ 1,461,474 $ 1,464,191 $ 1,394,391 $ 1,407,520 $ 1,253,740
171 % 173 % 170 % 174 % 163 %
Essent Reinsurance Ltd.:
Stockholder's equity (GAAP basis) $ 1,793,777 $ 1,793,005 $ 1,758,665 $ 1,684,122 $ 1,633,763
Net risk in force (2) $ 22,770,165 $ 22,271,316 $ 22,043,926 $ 21,739,419 $ 21,327,762
(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
Ratios and Reconciliation of Non-GAAP Financial Measures
2023
March 31 December 31 September 30 June 30
Loss Ratio (1) % 4.0 % 7.9 % 4.4 % 0.6 %
Expense Ratio (2) % 27.1 % 27.0 % 27.3 % 19.8 %
Combined Ratio % 31.1 % 34.9 % 31.7 % 20.4 %
Underwriting Margin (3) % 68.9 % 65.1 % 68.3 % 79.6 %
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 and six months ended June 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 six months ended June 30, 2024 in accordance with Regulation G:
Six Months Ended <br>June 30, 2024
Title Excluding Title Consolidated Title Excluding Title
( in thousands)
Revenues:
Net premiums earned 251,891 $ 16,633 $ 235,258 $ 497,481 $ 31,917 $ 465,564
Net investment income 804 55,282 108,171 1,555 106,616
Realized investment losses, net — (1,164) (2,304) — (2,304)
(Loss) income from other invested assets — (419) (2,334) — (2,334)
Settlement services (4) 1,412 — 2,837 2,837 —
Other income 474 4,662 7,448 881 6,567
Total revenues 19,323 293,619 611,299 37,190 574,109
Losses and expenses:
Provision (benefit) for losses and LAE 892 (1,226) 9,579 1,467 8,112
Other underwriting and operating expenses (5) 12,909 43,078 113,336 24,719 88,617
Premiums retained by agents 10,215 — 19,706 19,706 —
Interest expense — 7,849 15,711 — 15,711
Total losses and expenses 24,016 49,701 158,332 45,892 112,440
Loss ratio (1) %) 4.9 % (0.5 %) 1.9 % 4.2 % 1.7 %
Expense ratio (2) % 128.1 % 18.3 % 26.6 % 127.8 % 19.0 %
Combined ratio % 133.0 % 17.8 % 28.5 % 132.0 % 20.7 %
Underwriting Margin (3) % (33.0 %) 82.2 % 71.5 % (32.0 %) 79.3 %
(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.

All values are in US Dollars.

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