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

February 09, 2024 at 06:30 AM EST

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.



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

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

Essent Group Ltd. and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)

	December 31,			December 31,
(In thousands, except per share amounts)		2023			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		928,731			252,027
Total investments available for sale		5,263,739			4,741,625
Other invested assets		277,226			257,941
Total investments		5,540,965			4,999,566
Cash		141,787			81,240
Accrued investment income		35,689			33,162
Accounts receivable		63,266			57,399
Deferred policy acquisition costs		9,139			9,910
Property and equipment		41,304			19,571
Prepaid federal income tax		470,646			418,460
Goodwill and intangible assets, net		72,826			—
Other assets		51,051			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		140,285			162,887
Net deferred tax liability		362,753			356,810
Credit facility borrowings, net of deferred costs		421,920			420,864
Other accrued liabilities		139,070			104,463
Total liabilities		1,324,123			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		1,599			1,615
Additional paid-in capital		1,299,869			1,350,377
Accumulated other comprehensive (loss) income		(280,496	)		(382,790	)
Retained earnings		4,081,578			3,493,107
Total stockholders' equity		5,102,550			4,462,309

Total liabilities and stockholders' equity	$	6,426,673		$	5,723,797

Return on average equity		14.6	%		19.1	%

													Exhibit C
Essent Group Ltd. and Subsidiaries
Supplemental Information
Consolidated Historical Quarterly Data

	2023												2022
Selected Income Statement Data	December 31			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		17,166			16,850			17,727			14,693			14,582
Title Insurance		17,365			20,604			—			—			—
Net premiums earned		245,614			246,805			213,229			211,258			207,252
Net investment income		50,581			47,072			45,250			43,236			37,796
Realized investment gains (losses), net		(4,892	)		(235	)		(1,589	)		(488	)		(5,524	)
Income (loss) from other invested assets		(421	)		(3,143	)		(4,852	)		(2,702	)		(7,599	)
Other income (loss) (1)		6,395			5,609			8,090			4,942			(1,888	)
Total revenues		297,277			296,108			260,128			256,246			230,037

Losses and expenses:
Provision (benefit) for losses and LAE		19,640			10,822			1,260			(180	)		4,101
Other underwriting and operating expenses		55,248			54,814			42,174			48,195			46,895
Premiums retained by agents		11,475			13,175			—			—			—
Interest expense		7,953			7,854			7,394			6,936			6,045
Total losses and expenses		94,316			86,665			50,828			54,951			57,041

Income before income taxes		202,961			209,443			209,300			201,295			172,996
Income tax expense (2)		27,594			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		1.64			1.66			1.61			1.59			1.37

Weighted average shares outstanding:
Basic		105,733			105,979			106,249			106,943			106,881
Diluted		106,823			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)		14.2	%		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)		7.11	%		7.07	%		6.87	%		6.52	%		6.02	%
Debt-to-capital		7.69	%		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.

										Exhibit D
Essent Group Ltd. and Subsidiaries
Supplemental Information
U.S Mortgage Insurance Portfolio Historical Quarterly Data

	2023												2022
Other Data, continued:	December 31			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		2,409,340			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		822,012			825,248			821,690			815,751			808,596
Weighted average coverage (2)		26.8	%		26.7	%		26.5	%		26.3	%		26.1	%
Annual persistency		86.9	%		86.6	%		85.8	%		84.4	%		82.1	%

Loans in default (count)		14,819			13,391			12,480			12,773			13,433
Percentage of loans in default		1.80	%		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	%		0.40	%
Single premium cancellations (4)		—	%		—	%		—	%		—	%		—	%
Gross average premium rate		0.40	%		0.40	%		0.40	%		0.40	%		0.40	%
Ceded premiums		(0.05	%)		(0.05	%)		(0.07	%)		(0.06	%)		(0.06	%)
Net average premium rate		0.35	%		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.

																Exhibit E

Essent Group Ltd. and Subsidiaries
Supplemental Information
New Insurance Written: Flow

NIW by Credit Score
	Three Months Ended										Year Ended
	December 31, 2023					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		1,531,800		17.5			2,428,164		18.7			8,563,621		18.0			10,927,903		17.3
720-739		1,333,537		15.2			2,301,392		17.7			7,644,101		16.0			10,186,558		16.2
700-719		1,256,250		14.3			1,919,146		14.6			7,148,954		15.0			8,371,867		13.2
680-699		581,913		6.6			1,138,743		8.8			3,606,260		7.6			5,548,687		8.8
<=679		357,344		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		747					744					746					746

NIW by LTV
	Three Months Ended										Year Ended
	December 31, 2023					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%		1,871,854		21.3			3,075,304		23.6			9,822,916		20.6			16,732,649		26.5
90.01% to 95.00%		4,660,032		53.1			7,464,333		57.4			26,043,728		54.6			33,925,998		53.8
95.01% and above		1,594,638		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	%				93	%

NIW by Product
	Three Months Ended										Year Ended
	December 31, 2023					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
	Three Months Ended										Year Ended
	December 31, 2023					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	%

														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	December 31, 2023					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		41,490,720		17.4			41,362,480		17.3			38,842,311		17.2
720-739		37,435,781		15.7			37,297,809		15.6			34,981,632		15.4
700-719		31,932,469		13.4			31,674,346		13.3			29,146,543		12.8
680-699		19,780,944		8.3			19,850,176		8.3			18,859,824		8.3
<=679		11,353,104		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					746

Gross RIF by FICO score	December 31, 2023					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		11,268,607		17.6			11,165,727		17.6			10,255,195		17.3
720-739		10,179,683		15.9			10,090,889		15.9			9,276,750		15.6
700-719		8,687,001		13.6			8,568,811		13.5			7,696,965		13.0
680-699		5,330,894		8.3			5,327,434		8.4			4,963,470		8.4
<=679		2,842,640		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	December 31, 2023					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%		62,973,580		26.3			63,374,562		26.6			63,436,445		27.8
90.01% to 95.00%		119,764,184		50.1			118,461,030		49.6			107,932,064		47.6
95.01% and above		36,470,722		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	%				93	%				92	%

Gross RIF by LTV	December 31, 2023					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%		15,494,172		24.2			15,566,095		24.5			15,477,031		26.1
90.01% to 95.00%		35,260,761		55.0			34,848,762		54.8			31,642,669		53.4
95.01% and above		10,942,209		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	December 31, 2023					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		1,685,700		0.7			1,910,610		0.8			2,601,108		1.1
FRM 15 years		1,505,759		0.6			1,719,467		0.7			2,552,931		1.1
ARM 5 years and higher		2,891,423		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	%

													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

Essent Group Ltd. and Subsidiaries
Supplemental Information
U.S. Mortgage Insurance Portfolio Vintage Data
December 31, 2023


									Insurance in Force
Year	Original Insurance Written ($ in thousands)		Remaining Insurance in Force ($ in thousands)		% Remaining of Original Insurance		Number of Policies in Force		Weighted Average Coupon		% Purchase		>90% LTV		>95% LTV		FICO < 700		FICO >= 760		Incurred Loss Ratio (Inception to Date) (1)		Number of Loans in Default		Percentage of Loans in Default

2010 - 2014	$	60,668,851	$	1,432,521	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	$	579,638,285	$	239,078,262	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.

																					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	Vintage	Remaining Insurance in Force		Remaining Risk in Force		Original Reinsurance in Force		Remaining Reinsurance in Force		Losses Ceded to Date		Original First Layer Retention		Remaining First Layer Retention		Quarter-to-Date			Year-to-Date		Reduction in PMIERs Minimum Required Assets (3)
Radnor Re 2018-1	Jan. 2017 - Dec. 2017	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	(644	)	$	1,137	$	—
Radnor Re 2019-1	Jan. 2018 - Dec. 2018		—		—		—		—		—		—		—		(513	)		12,894		—
Radnor Re 2019-2	Jan. 2015 - Dec. 2016		—		—		—		—		—		—		—		(175	)		44		—
Radnor Re 2020-1	Jan. 2019 - Aug. 2019		6,887,869		1,797,683		495,889		2,350		—		215,605		213,230		748			6,536		—
Radnor Re 2021-1	Aug. 2020 - Mar. 2021		31,673,378		8,233,067		557,911		309,199		—		278,956		278,638		2,764			11,558		232,809
Radnor Re 2021-2	Apr. 2021 - Sep. 2021		35,958,961		9,735,395		439,407		339,890		—		279,415		279,051		3,898			16,059		276,777
Radnor Re 2022-1	Oct. 2021 - Jul. 2022		31,520,927		8,522,229		237,868		231,142		—		303,761		303,324		4,311			17,092		212,651
Radnor Re 2023-1	Aug. 2022 - Jun. 2023		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

Excess of Loss Reinsurance (2)
																	Earned Premiums Ceded
Deal Name	Vintage	Remaining Insurance in Force		Remaining Risk in Force		Original Reinsurance in Force		Remaining Reinsurance in Force		Losses Ceded to Date		Original First Layer Retention		Remaining First Layer Retention			Quarter-to-Date		Year-to-Date		Reduction in PMIERs Minimum Required Assets (3)
XOL 2018-1	Jan. 2017 - Dec. 2017	$	—	$	—	$	—	$	—	$	—	$	—	$	—		$	—	$	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 Insurance in Force		Remaining Risk in Force		Remaining Ceded Insurance in Force		Remaining Ceded Risk in Force		Quarter-to-Date			Year-to-Date			Quarter-to-Date		Year-to-Date		Quarter-to-Date		Year-to-Date		Reduction in PMIERs Minimum Required Assets (3)
Sep. 2019 - Dec. 2020	(5)		$	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

	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	%

	December 31, 2022
	Number of Policies in Default		Percentage of Policies in Default		Amount of Reserves		Percentage of Reserves		Defaulted RIF		Reserves as a Percentage of Defaulted RIF
($ in thousands)
Missed Payments:
Three payments or less	6,154		46	%	$	32,242	16	%	$	411,624	8	%
Four to eleven payments	4,684		35			65,071	33			317,417	21
Twelve or more payments	2,474		18			98,291	49			147,247	67
Pending claims	121		1			3,815	2			4,860	78
Total case reserves	13,433		100	%		199,419	100	%	$	881,148	23
IBNR						14,956
LAE						2,015
Total reserves for losses and LAE					$	216,390

Average reserve per default:
Case					$	14.8
Total					$	16.1

Default Rate	1.66	%

								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					December 31, 2022
($ in thousands)	Fair Value			Percent		Fair Value		Percent
U.S. Treasury securities	$	996,382		18.9	%	$	556,438	11.7	%
U.S. agency securities		7,195		0.1			49,058	1.0
U.S. agency mortgage-backed securities		821,346		15.6			783,743	16.5
Municipal debt securities		547,258		10.5			602,690	12.8
Non-U.S. government securities		67,447		1.3			62,399	1.3
Corporate debt securities		1,297,055		24.7			1,414,321	29.8
Residential and commercial mortgage securities		517,940		9.8			511,824	10.8
Asset-backed securities		564,995		10.7			624,561	13.2
Money market funds		444,121		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, 2023					December 31, 2022
($ in thousands)	Fair Value			Percent		Fair Value		Percent
Aaa	$	2,561,363		53.2	%	$	2,122,599	46.2	%
Aa1		104,474		2.2			111,262	2.4
Aa2		291,501		6.0			325,241	7.1
Aa3		208,882		4.3			232,500	5.0
A1		377,188		7.8			396,095	8.6
A2		329,423		6.8			410,163	8.9
A3		253,081		5.3			268,928	5.8
Baa1		220,901		4.6			236,793	5.1
Baa2		226,449		4.7			221,308	4.8
Baa3		166,121		3.4			187,117	4.1
Below Baa3		80,235		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 $136,591 of money market funds at December 31, 2023 and December 31, 2022, respectively.
Investments Available for Sale by Duration and Book Yield
Effective Duration	December 31, 2023					December 31, 2022
($ in thousands)	Fair Value			Percent		Fair Value		Percent
< 1 Year	$	1,892,074		35.9	%	$	1,245,839	26.3	%
1 to < 2 Years		371,583		7.1			534,038	11.3
2 to < 3 Years		538,775		10.2			511,701	10.8
3 to < 4 Years		402,668		7.6			525,683	11.1
4 to < 5 Years		376,722		7.2			400,540	8.4
5 or more Years		1,681,917		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		3.62	%
Year ended December 31, 2023		3.50	%

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

													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)
Essent Guaranty, Inc.	10.6:1			10.7:1			10.8:1			10.6:1			10.5:1
Essent Guaranty of PA, Inc.	0.4:1			0.5:1			0.5:1			0.5:1			0.6:1
Combined (4)	10.2:1			10.3:1			10.5:1			10.3:1			10.2:1

Essent Guaranty, Inc. PMIERs Data (5):
Available Assets	$	3,379,936		$	3,318,179		$	3,245,481		$	3,226,436		$	3,191,047
Minimum Required Assets		1,985,545			1,910,659			1,991,741			1,917,769			1,832,363
PMIERs excess Available Assets	$	1,394,391		$	1,407,520		$	1,253,740		$	1,308,667		$	1,358,684
PMIERs sufficiency ratio (6)		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.

													Exhibit O
Essent Group Ltd. and Subsidiaries
Supplemental Information
Loss, Expense and Combined Ratios and Reconciliation of Non-GAAP Financial Measures

	2023												2022
	December 31			September 30			June 30			March 31			December 31
Loss Ratio (1)		7.9	%		4.4	%		0.6	%		(0.1	)%		2.0	%
Expense Ratio (2)		27.0	%		27.3	%		19.8	%		22.8	%		22.6	%
Combined Ratio		34.9	%		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:

	Three Months Ended December 31, 2023									Year Ended December 31, 2023
	Consolidated			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		50,581			432			50,149			186,139			837			185,302
Realized investment losses, net		(4,892	)		—			(4,892	)		(7,204	)		—			(7,204	)
Loss from other invested assets		(421	)		—			(421	)		(11,118	)		—			(11,118	)
Settlement services (3)		1,475			1,475			—			3,512			3,512			—
Other income		4,920			503			4,417			21,524			907			20,617
Total revenues		297,277			19,775			277,502			1,109,759			43,225			1,066,534

Losses and expenses:
Provision (benefit) for losses and LAE		19,640			655			18,985			31,542			1,422			30,120
Other underwriting and operating expenses		55,248			11,595			43,653			200,431			25,061			175,370
Premiums retained by agents		11,475			11,475			—			24,650			24,650			—
Interest expense		7,953			—			7,953			30,137			—			30,137
Total losses and expenses		94,316			23,725			70,591			286,760			51,133			235,627

Loss ratio (1)		7.9	%		3.5	%		8.3	%		3.4	%		3.4	%		3.4	%
Expense ratio (2)		27.0	%		122.5	%		19.1	%		24.5	%		119.8	%		20.0	%
Combined ratio		34.9	%		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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240209440689/en/

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Media Contact

610.230.0556

media@essentgroup.com

Investor Relations Contact

Philip Stefano

Vice President, Investor Relations

855-809-ESNT

ir@essentgroup.com

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

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