Essent Group Ltd. (NYSE: ESNT) today reported net income for the
quarter ended March 31, 2024 of $181.7 million or $1.70 per diluted
share, compared to $170.8 million or $1.59 per diluted share for
the quarter ended March 31, 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 June 10, 2024, to shareholders of record on
May 31, 2024.
“We are pleased with our financial results in the first quarter,
as our high-quality portfolio and consumer resilience have
translated to favorable credit performance, and the current rate
environment has benefited investment income and persistency,” said
Mark A. Casale, Chairman and Chief Executive Officer. “The Essent
franchise continues to grow, propelled by the strong performance of
our mortgage insurance and reinsurance operations, and integration
of the title business.”
Financial Highlights:
- New insurance written for the first quarter of 2024 was $8.3
billion, compared to $8.8 billion in the fourth quarter of 2023 and
$12.9 billion in the first quarter of 2023.
- Insurance in force as of March 31, 2024 was $238.5 billion,
compared to $239.1 billion as of December 31, 2023 and $231.5
billion as of March 31, 2023.
- Net investment income for the first quarter of 2024 was $52.1
million, up 20% from the first quarter of 2023.
- During the first quarter of 2024, we entered into a quota share
reinsurance transaction with a panel of highly rated third-party
reinsurers. The quota share agreement covers 15% of all eligible
policies written by Essent Guaranty, Inc. in the calendar year
2024.
- 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.
- On March 27, 2024, Moody’s Ratings affirmed the A3 insurance
financial strength rating of Essent Guaranty, Inc. and raised the
outlook to positive from stable.
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, 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”) 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 Ended March 31,
2024
Exhibit A
Condensed Consolidated Statements of
Comprehensive Income (Unaudited)
Exhibit B
Condensed Consolidated Balance Sheets
(Unaudited)
Exhibit C
Consolidated Historical Quarterly Data
Exhibit D
U.S. Mortgage Insurance Portfolio
Historical Quarterly Data
Exhibit E
New Insurance Written - U.S. Mortgage
Insurance Portfolio
Exhibit F
Insurance in Force and Risk in Force -
U.S. Mortgage Insurance Portfolio
Exhibit G
Other Risk in Force
Exhibit H
U.S. Mortgage Insurance Portfolio Vintage
Data
Exhibit I
U.S. Mortgage Insurance Portfolio
Reinsurance Vintage Data
Exhibit J
U.S. Mortgage Insurance Portfolio
Geographic Data
Exhibit K
Rollforward of Defaults and Reserve for
Losses and LAE - U.S. Mortgage Insurance Portfolio
Exhibit L
Detail of Reserves by Default Delinquency
- U.S. Mortgage Insurance Portfolio
Exhibit M
Investments Available for Sale
Exhibit N
U.S. Mortgage Insurance Company
Capital
Exhibit O
Ratios and Reconciliation of Non-GAAP
Financial Measures
Exhibit A
Essent Group Ltd. and
Subsidiaries
Condensed Consolidated
Statements of Comprehensive Income (Unaudited)
Three Months Ended March
31,
(In thousands,
except per share amounts)
2024
2023
Revenues:
Direct premiums written
$
268,931
$
239,491
Ceded premiums
(30,391
)
(33,591
)
Net premiums written
238,540
205,900
Decrease in unearned premiums
7,050
5,358
Net premiums earned
245,590
211,258
Net investment income
52,085
43,236
Realized investment gains (losses),
net
(1,140
)
(488
)
Income (loss) from other invested
assets
(1,915
)
(2,702
)
Other income
3,737
4,942
Total revenues
298,357
256,246
Losses and expenses:
Provision (benefit) for losses and LAE
9,913
(180
)
Other underwriting and operating
expenses
57,349
48,195
Premiums retained by agents
9,491
—
Interest expense
7,862
6,936
Total losses and expenses
84,615
54,951
Income before income taxes
213,742
201,295
Income tax expense
32,023
30,468
Net income
$
181,719
$
170,827
Earnings per share:
Basic
$
1.72
$
1.60
Diluted
1.70
1.59
Weighted average shares
outstanding:
Basic
105,697
106,943
Diluted
106,770
107,585
Net income
$
181,719
$
170,827
Other comprehensive income
(loss):
Change in unrealized appreciation
(depreciation) of investments
(21,766
)
58,753
Total other comprehensive income
(loss)
(21,766
)
58,753
Comprehensive income
$
159,953
$
229,580
Exhibit B
Essent Group Ltd. and
Subsidiaries
Condensed Consolidated Balance
Sheets (Unaudited)
March 31,
December 31,
(In thousands,
except per share amounts)
2024
2023
Assets
Investments
Fixed maturities available for sale, at
fair value
$
4,172,237
$
4,335,008
Short-term investments available for sale,
at fair value
1,196,837
928,731
Total investments available for sale
5,369,074
5,263,739
Other invested assets
279,625
277,226
Total investments
5,648,699
5,540,965
Cash
164,255
141,787
Accrued investment income
35,817
35,689
Accounts receivable
68,932
63,266
Deferred policy acquisition costs
8,980
9,139
Property and equipment
43,751
41,304
Prepaid federal income tax
467,183
470,646
Goodwill and intangible assets, net
72,271
72,826
Other assets
55,095
51,051
Total assets
$
6,564,983
$
6,426,673
Liabilities and Stockholders'
Equity
Liabilities
Reserve for losses and LAE
$
267,324
$
260,095
Unearned premium reserve
133,235
140,285
Net deferred tax liability
368,955
362,753
Credit facility borrowings, net of
deferred costs
422,184
421,920
Other accrued liabilities
147,131
139,070
Total liabilities
1,338,829
1,324,123
Commitments and contingencies
Stockholders' Equity
Common shares, $0.015 par value:
Authorized - 233,333; issued and
outstanding - 106,742 shares in 2024 and 106,597 shares in 2023
1,601
1,599
Additional paid-in capital
1,293,424
1,299,869
Accumulated other comprehensive loss
(302,262
)
(280,496
)
Retained earnings
4,233,391
4,081,578
Total stockholders' equity
5,226,154
5,102,550
Total liabilities and stockholders'
equity
$
6,564,983
$
6,426,673
Return on average equity (1)
14.1
%
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.
Exhibit C
Essent Group Ltd. and
Subsidiaries
Supplemental
Information
Consolidated Historical
Quarterly Data
2024
2023
Selected Income Statement Data
March 31
December 31
September 30
June 30
March 31
(In thousands,
except per share amounts)
Revenues:
Net premiums earned:
U.S. Mortgage Insurance Portfolio
$
212,479
$
211,083
$
209,351
$
195,502
$
196,565
GSE and other risk share
17,826
17,166
16,850
17,727
14,693
Title insurance
15,285
17,365
20,604
—
—
Net premiums earned
245,590
245,614
246,805
213,229
211,258
Net investment income
52,085
50,581
47,072
45,250
43,236
Realized investment (losses) gains,
net
(1,140
)
(4,892
)
(235
)
(1,589
)
(488
)
(Loss) income from other invested
assets
(1,915
)
(421
)
(3,143
)
(4,852
)
(2,702
)
Other income (loss) (1)
3,737
6,395
5,609
8,090
4,942
Total revenues
298,357
297,277
296,108
260,128
256,246
Losses and expenses:
Provision (benefit) for losses and LAE
9,913
19,640
10,822
1,260
(180
)
Other underwriting and operating
expenses
57,349
55,248
54,814
42,174
48,195
Premiums retained by agents
9,491
11,475
13,175
—
—
Interest expense
7,862
7,953
7,854
7,394
6,936
Total losses and expenses
84,615
94,316
86,665
50,828
54,951
Income before income taxes
213,742
202,961
209,443
209,300
201,295
Income tax expense (2)
32,023
27,594
31,484
37,067
30,468
Net income
$
181,719
$
175,367
$
177,959
$
172,233
$
170,827
Earnings per share:
Basic
$
1.72
$
1.66
$
1.68
$
1.62
$
1.60
Diluted
1.70
1.64
1.66
1.61
1.59
Weighted average shares
outstanding:
Basic
105,697
105,733
105,979
106,249
106,943
Diluted
106,770
106,823
107,025
107,093
107,585
Book value per share
$
48.96
$
47.87
$
44.98
$
44.24
$
43.18
Return on average equity
(annualized)
14.1
%
14.2
%
14.9
%
14.7
%
15.0
%
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
%
6.52
%
Debt-to-capital
7.52
%
7.69
%
8.12
%
8.24
%
8.38
%
(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 March 31, 2024, December
31, 2023, September 30, 2023, June 30, 2023 and March 31, 2023,
were ($1,902), $412, ($898), $2,726, and ($368), respectively.
(2) Income tax expense for the
quarters ended March 31, 2024, December 31, 2023, September 30,
2023, June 30, 2023 and March 31, 2023 includes ($1,041), ($1,132),
($763), ($888) and ($368), respectively, of discrete tax (benefit)
expense 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 $5,295 of net discrete tax expense associated with prior
year tax returns.
Exhibit D
Essent Group Ltd. and
Subsidiaries
Supplemental
Information
U.S. Mortgage Insurance
Portfolio Historical Quarterly Data
2024
2023
Other Data:
March 31
December 31
September 30
June 30
March 31
($ in
thousands)
U.S. Mortgage Insurance
Portfolio
New insurance written
$
8,323,544
$
8,769,160
$
12,505,823
$
13,498,080
$
12,893,789
New risk written
2,289,508
2,409,340
3,458,467
3,726,513
3,548,015
Average insurance in force
$
238,595,268
$
239,005,961
$
237,270,093
$
233,484,941
$
228,885,174
Insurance in force (end of period)
$
238,477,402
$
239,078,262
$
238,661,612
$
235,649,884
$
231,537,417
Gross risk in force (end of period)
(1)
$
64,247,810
$
64,061,374
$
63,605,057
$
62,403,400
$
60,879,979
Risk in force (end of period)
$
54,686,533
$
54,591,590
$
53,920,308
$
53,290,643
$
51,469,312
Policies in force
815,752
822,012
825,248
821,690
815,751
Weighted average coverage (2)
26.9
%
26.8
%
26.7
%
26.5
%
26.3
%
Annual persistency
86.9
%
86.9
%
86.6
%
85.8
%
84.4
%
Loans in default (count)
13,992
14,819
13,391
12,480
12,773
Percentage of loans in default
1.72
%
1.80
%
1.62
%
1.52
%
1.57
%
U.S. Mortgage Insurance Portfolio
premium rate:
Base average premium rate (3)
0.41
%
0.40
%
0.40
%
0.40
%
0.40
%
Single premium cancellations
(4)
—
%
—
%
—
%
—
%
—
%
Gross average premium rate
0.41
%
0.40
%
0.40
%
0.40
%
0.40
%
Ceded premiums
(0.05
%)
(0.05
%)
(0.05
%)
(0.07
%)
(0.06
%)
Net average premium rate
0.36
%
0.35
%
0.35
%
0.33
%
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 -
U.S. Mortgage Insurance Portfolio
New Insurance Written:
Flow
NIW by Credit Score
Three Months Ended
March 31, 2024
December 31, 2023
March 31, 2023
($ in
thousands)
>=760
$
3,596,600
43.2
%
$
3,708,316
42.3
%
$
4,847,058
37.7
%
740-759
1,410,446
16.9
1,531,800
17.5
2,397,982
18.6
720-739
1,244,648
15.0
1,333,537
15.2
2,204,844
17.1
700-719
1,140,430
13.7
1,256,250
14.3
2,002,892
15.5
680-699
563,419
6.8
581,913
6.6
1,100,815
8.5
<=679
368,001
4.4
357,344
4.1
340,198
2.6
Total
$
8,323,544
100.0
%
$
8,769,160
100.0
%
$
12,893,789
100.0
%
Weighted average credit score
747
747
745
NIW by LTV
Three Months Ended
March 31, 2024
December 31, 2023
March 31, 2023
($ in
thousands)
85.00% and below
$
559,899
6.7
%
$
642,636
7.3
%
$
963,009
7.5
%
85.01% to 90.00%
1,732,131
20.8
1,871,854
21.3
2,685,828
20.8
90.01% to 95.00%
4,517,655
54.3
4,660,032
53.1
7,430,113
57.6
95.01% and above
1,513,859
18.2
1,594,638
18.3
1,814,839
14.1
Total
$
8,323,544
100.0
%
$
8,769,160
100.0
%
$
12,893,789
100.0
%
Weighted average LTV
93
%
93
%
93
%
NIW by Product
Three Months Ended
March 31, 2024
December 31, 2023
March 31, 2023
Single Premium policies
2.0
%
2.5
%
4.1
%
Monthly Premium policies
98.0
97.5
95.9
100.0
%
100.0
%
100.0
%
NIW by Purchase vs.
Refinance
Three Months Ended
March 31, 2024
December 31, 2023
March 31, 2023
Purchase
97.4
%
98.7
%
98.6
%
Refinance
2.6
1.3
1.4
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
March 31, 2024
December 31, 2023
March 31, 2023
($ in
thousands)
>=760
$
96,712,431
40.6
%
$
97,085,244
40.6
%
$
94,560,292
40.8
%
740-759
41,477,680
17.4
41,490,720
17.4
39,870,193
17.2
720-739
37,342,339
15.7
37,435,781
15.7
35,950,319
15.5
700-719
32,023,895
13.4
31,932,469
13.4
30,103,007
13.0
680-699
19,664,999
8.2
19,780,944
8.3
19,338,187
8.4
<=679
11,256,058
4.7
11,353,104
4.6
11,715,419
5.1
Total
$
238,477,402
100.0
%
$
239,078,262
100.0
%
$
231,537,417
100.0
%
Weighted average credit score
746
746
746
Gross RIF by FICO score
March 31, 2024
December 31, 2023
March 31, 2023
($ in
thousands)
>=760
$
25,806,552
40.2
%
$
25,752,549
40.2
%
$
24,613,214
40.4
%
740-759
11,326,253
17.6
11,268,607
17.6
10,612,582
17.4
720-739
10,206,055
15.9
10,179,683
15.9
9,602,368
15.8
700-719
8,757,648
13.6
8,687,001
13.6
8,017,430
13.2
680-699
5,321,802
8.3
5,330,894
8.3
5,126,581
8.4
<=679
2,829,500
4.4
2,842,640
4.4
2,907,804
4.8
Total
$
64,247,810
100.0
%
$
64,061,374
100.0
%
$
60,879,979
100.0
%
Portfolio by LTV
IIF by LTV
March 31, 2024
December 31, 2023
March 31, 2023
($ in
thousands)
85.00% and below
$
18,397,395
7.7
%
$
19,869,776
8.3
%
$
23,502,232
10.2
%
85.01% to 90.00%
62,218,749
26.1
62,973,580
26.3
63,478,244
27.3
90.01% to 95.00%
120,666,455
50.6
119,764,184
50.1
112,184,833
48.5
95.01% and above
37,194,803
15.6
36,470,722
15.3
32,372,108
14.0
Total
$
238,477,402
100.0
%
$
239,078,262
100.0
%
$
231,537,417
100.0
%
Weighted average LTV
93
%
93
%
92
%
Gross RIF by LTV
March 31, 2024
December 31, 2023
March 31, 2023
($ in
thousands)
85.00% and below
$
2,188,074
3.4
%
$
2,364,232
3.7
%
$
2,793,895
4.6
%
85.01% to 90.00%
15,329,091
23.9
15,494,172
24.2
15,529,427
25.5
90.01% to 95.00%
35,556,840
55.3
35,260,761
55.0
32,929,489
54.1
95.01% and above
11,173,805
17.4
10,942,209
17.1
9,627,168
15.8
Total
$
64,247,810
100.0
%
$
64,061,374
100.0
%
$
60,879,979
100.0
%
Portfolio by Loan Amortization
Period
IIF by Loan Amortization Period
March 31, 2024
December 31, 2023
March 31, 2023
($ in
thousands)
FRM 30 years and higher
$
232,753,590
97.6
%
$
232,995,380
97.5
%
$
224,230,607
96.8
%
FRM 20-25 years
1,473,431
0.6
1,685,700
0.7
2,364,623
1.0
FRM 15 years
1,359,795
0.6
1,505,759
0.6
2,214,448
1.0
ARM 5 years and higher
2,890,586
1.2
2,891,423
1.2
2,727,739
1.2
Total
$
238,477,402
100.0
%
$
239,078,262
100.0
%
$
231,537,417
100.0
%
Exhibit G
Essent Group Ltd. and
Subsidiaries
Supplemental
Information
Other Risk in Force
2024
2023
($ in
thousands)
March 31
December 31
September 30
June 30
March 31
GSE and other risk share (1):
Risk in Force
$
2,307,267
$
2,244,944
$
2,247,393
$
2,276,702
$
2,098,033
Reserve for losses and LAE
$
32
$
29
$
54
$
55
$
65
Weighted average credit score
750
749
749
749
749
Weighted average LTV
82
%
82
%
82
%
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
March 31, 2024
Insurance in Force
Year
Original
Insurance
Written
($ in thousands)
Remaining
Insurance
in Force
($ in thousands)
% Remaining of
Original
Insurance
Number of Policies in
Force
Weighted Average
Coupon
% Purchase
>90% LTV
>95% LTV
FICO < 700
FICO >= 760
Incurred Loss Ratio (Inception
to Date) (1)
Number of Loans in
Default
Percentage of Loans in
Default
2010 - 2014
$
60,668,851
$
1,337,665
2.2
%
8,083
4.29
%
70.1
%
57.2
%
7.3
%
13.4
%
45.5
%
2.4
%
318
3.93
%
2015
26,193,656
1,192,019
4.6
7,166
4.25
81.6
70.1
5.3
18.3
39.0
2.3
265
3.70
2016
34,949,319
2,778,784
8.0
16,341
3.91
87.2
80.1
12.9
16.3
41.7
2.1
492
3.01
2017
43,858,322
4,511,284
10.3
27,229
4.28
91.3
73.9
21.5
20.6
37.3
3.2
1,052
3.86
2018
47,508,525
5,331,200
11.2
30,191
4.80
94.9
72.6
26.4
21.8
32.5
4.2
1,297
4.30
2019
63,569,183
11,776,711
18.5
56,634
4.23
88.7
70.3
25.4
19.0
35.3
4.0
1,726
3.05
2020
107,944,065
43,791,803
40.6
170,192
3.20
70.0
58.7
13.6
10.8
45.5
2.9
2,324
1.37
2021
84,218,250
58,766,271
69.8
193,329
3.09
87.5
64.2
15.9
13.8
40.4
6.6
3,172
1.64
2022
63,061,262
55,899,907
88.6
159,736
5.08
97.9
65.6
11.3
12.6
39.6
19.7
2,477
1.55
2023
47,666,852
44,842,520
94.1
124,984
6.65
98.8
72.5
18.3
11.0
39.1
15.9
867
0.69
2024 (through March 31)
8,323,544
8,249,238
99.1
21,867
6.74
97.4
72.6
18.3
11.2
43.0
0.8
2
0.01
Total
$
587,961,829
$
238,477,402
40.6
815,752
4.51
89.4
66.2
15.6
13.0
40.6
4.5
13,992
1.72
(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
March 31, 2024
($ in
thousands)
Insurance Linked
Notes (1)
Earned Premiums Ceded
Deal Name
Vintage
Remaining
Insurance
in Force
Remaining
Risk
in Force
Original
Reinsurance in Force
Remaining
Reinsurance in Force
Losses
Ceded
to Date
Original
First Layer
Retention
Remaining
First Layer
Retention
Year-to-Date
Reduction in PMIERs Minimum
Required
Assets (3)
Radnor Re 2021-1
Aug. 2020 - Mar. 2021
$
29,772,296
$
7,817,502
$
557,911
$
280,941
$
—
$
278,956
$
278,416
$
2,325
$
203,407
Radnor Re 2021-2
Apr. 2021 - Sep. 2021
34,555,672
9,408,534
439,407
322,709
—
279,415
278,709
3,674
265,684
Radnor Re 2022-1
Oct. 2021 - Jul. 2022
30,751,105
8,334,892
237,868
219,606
—
303,761
302,892
3,917
202,037
Radnor Re 2023-1
Aug. 2022 - Jun. 2023
30,145,794
8,250,148
281,462
281,462
—
281,463
281,463
3,478
266,826
Total
$
125,224,867
$
33,811,076
$
1,516,648
$
1,104,718
$
—
$
1,143,595
$
1,141,480
$
13,394
(5)
$
937,954
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
Year-to-Date
Reduction in PMIERs Minimum
Required
Assets (3)
XOL 2019-1
Jan. 2018 - Dec. 2018
$
5,274,449
$
1,385,510
$
118,650
$
76,144
$
—
$
253,643
$
245,590
$
620
$
—
XOL 2020-1
Jan. 2019 - Dec. 2019
6,574,279
1,728,344
55,102
35,024
—
215,605
212,934
280
—
XOL 2022-1
Oct. 2021 - Dec. 2022
68,954,857
18,681,548
141,992
141,992
—
507,114
504,904
1,593
138,049
XOL 2023-1
Jan. 2023 - Dec. 2023
39,984,013
11,066,581
36,627
36,627
—
366,270
366,270
434
35,262
Total
$
120,787,598
$
32,861,983
$
352,371
$
289,787
$
—
$
1,342,632
$
1,329,698
$
2,927
$
173,311
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
Year-to-Date
Year-to-Date
Year-to-Date
Reduction in PMIERs Minimum
Required
Assets (3)
Sep. 2019 - Dec. 2020
(4)
$
48,738,950
$
12,911,516
$
10,961,149
$
2,867,129
$
(181
)
$
2,381
$
4,224
$
171,243
Jan. 2022 - Dec. 2022
20%
55,847,902
15,138,856
11,169,580
3,027,771
1,724
1,905
5,344
228,999
Jan. 2023 - Dec. 2023
17.5%
39,871,067
11,039,038
6,977,437
1,931,832
1,441
1,366
4,310
142,961
Jan. 2024 - Dec. 2024
15%
8,237,311
2,266,932
1,235,597
340,040
—
101
216
23,466
Total
$
152,695,230
$
41,356,342
$
30,343,763
$
8,166,772
$
2,984
$
5,753
$
14,094
$
566,669
(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 ($24) of benefit in
ceded premium on ILN's retired as of March 31, 2024.
Exhibit J
Essent Group Ltd. and
Subsidiaries
Supplemental
Information
U.S. Mortgage Insurance
Portfolio Geographic Data
IIF by State
March 31, 2024
December 31, 2023
March 31, 2023
CA
12.9
%
13.0
%
13.2
%
FL
11.3
11.1
10.4
TX
10.6
10.5
10.5
CO
4.1
4.1
4.2
AZ
3.8
3.7
3.6
GA
3.5
3.4
3.2
WA
3.5
3.5
3.4
NC
2.9
2.9
2.7
VA
2.7
2.8
3.0
IL
2.7
2.8
3.0
All Others
42.0
42.2
42.8
Total
100.0
%
100.0
%
100.0
%
Gross RIF by State
March 31, 2024
December 31, 2023
March 31, 2023
CA
12.8
%
12.8
%
13.0
%
FL
11.6
11.4
10.7
TX
10.9
10.9
10.8
CO
4.1
4.0
4.1
AZ
3.8
3.8
3.7
GA
3.6
3.4
3.3
WA
3.4
3.5
3.4
NC
2.9
2.9
2.8
VA
2.7
2.7
2.9
IL
2.7
2.7
2.9
All Others
41.5
41.9
42.4
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
March 31
December 31
September 30
June 30
March 31
Beginning default inventory
14,819
13,391
12,480
12,773
13,433
Plus: new defaults (A)
8,260
9,007
7,953
6,575
7,015
Less: cures
(8,951
)
(7,418
)
(6,902
)
(6,761
)
(7,574
)
Less: claims paid
(123
)
(148
)
(129
)
(96
)
(94
)
Less: rescissions and denials, net
(13
)
(13
)
(11
)
(11
)
(7
)
Ending default inventory
13,992
14,819
13,391
12,480
12,773
(A) New defaults remaining as of
March 31, 2024
5,425
3,139
1,897
1,119
663
Cure rate (1)
34
%
65
%
76
%
83
%
91
%
Total amount paid for claims (in
thousands)
$
3,605
$
3,411
$
2,956
$
1,890
$
1,959
Average amount paid per claim (in
thousands)
$
29
$
23
$
23
$
20
$
21
Severity
65
%
54
%
66
%
58
%
59
%
Rollforward of Reserve for
Losses and LAE
Three Months Ended
2024
2023
($ in
thousands)
March 31
December 31
September 30
June 30
March 31
Reserve for losses and LAE at beginning of
period
$
245,402
$
226,617
$
216,888
$
215,957
$
216,390
Less: Reinsurance recoverables
24,005
20,656
17,958
16,357
14,618
Net reserve for losses and LAE at
beginning of period
221,397
205,961
198,930
199,600
201,772
Add provision for losses and LAE occurring
in:
Current period
$
39,396
$
38,922
$
35,609
$
31,377
$
32,693
Prior years
(30,062
)
(19,912
)
(25,533
)
(30,107
)
(32,864
)
Incurred losses and LAE during the
period
9,334
19,010
10,076
1,270
(171
)
Deduct payments for losses and LAE
occurring in:
Current period
1
330
156
31
—
Prior years
3,735
3,244
2,889
1,909
2,001
Loss and LAE payments during the
period
3,736
3,574
3,045
1,940
2,001
Net reserve for losses and LAE at end of
period
226,995
221,397
205,961
198,930
199,600
Plus: Reinsurance recoverables
26,570
24,005
20,656
17,958
16,357
Reserve for losses and LAE at end of
period
$
253,565
$
245,402
$
226,617
$
216,888
$
215,957
(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
March 31, 2024
Number of
Policies in
Default
Percentage of
Policies in
Default
Amount of Reserves
Percentage of Reserves
Defaulted RIF
Reserves as a Percentage
of
Defaulted RIF
($ in
thousands)
Missed Payments:
Three payments or less
6,527
47
%
$
42,354
18
%
$
482,151
9
%
Four to eleven payments
5,440
39
104,123
45
426,513
24
Twelve or more payments
1,883
13
80,025
34
130,816
61
Pending claims
142
1
7,382
3
8,351
88
Total case reserves
13,992
100
%
233,884
100
%
$
1,047,831
22
%
IBNR
17,541
LAE
2,140
Total reserves for losses and LAE
$
253,565
Average reserve per default:
Case
$
16.7
Total
$
18.1
Default Rate
1.72
%
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
%
March 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
5,366
42
%
$
31,080
16
%
$
366,993
8
%
Four to eleven payments
5,106
40
78,125
39
363,299
22
Twelve or more payments
2,188
17
85,517
43
130,520
66
Pending claims
113
1
4,386
2
5,004
88
Total case reserves
12,773
100
%
199,108
100
%
$
865,816
23
%
IBNR
14,933
LAE
1,916
Total reserves for losses and LAE
$
215,957
Average reserve per default:
Case
$
15.6
Total
$
16.9
Default Rate
1.57
%
Exhibit M
Essent Group Ltd. and
Subsidiaries
Supplemental
Information
Investments Available for
Sale
Investments Available for Sale
by Asset Class
Asset Class
March 31, 2024
December 31, 2023
($ in
thousands)
Fair Value
Percent
Fair Value
Percent
U.S. Treasury securities
$
1,036,787
19.3
%
$
996,382
18.9
%
U.S. agency securities
1,573
0.1
7,195
0.1
U.S. agency mortgage-backed securities
787,285
14.7
821,346
15.6
Municipal debt securities
539,678
10.1
547,258
10.5
Non-U.S. government securities
66,395
1.2
67,447
1.3
Corporate debt securities
1,219,160
22.7
1,297,055
24.7
Residential and commercial mortgage
securities
506,780
9.4
517,940
9.8
Asset-backed securities
522,352
9.7
564,995
10.7
Money market funds
689,064
12.8
444,121
8.4
Total investments available for sale
$
5,369,074
100.0
%
$
5,263,739
100.0
%
Investments Available for Sale
by Credit Rating
Rating (1)
March 31, 2024
December 31, 2023
($ in
thousands)
Fair Value
Percent
Fair Value
Percent
Aaa
$
2,523,003
53.9
%
$
2,561,363
53.2
%
Aa1
107,659
2.3
104,474
2.2
Aa2
281,505
6.0
291,501
6.0
Aa3
198,316
4.2
208,882
4.3
A1
368,360
7.9
377,188
7.8
A2
285,058
6.1
329,423
6.8
A3
269,390
5.8
253,081
5.3
Baa1
199,880
4.3
220,901
4.6
Baa2
210,558
4.5
226,449
4.7
Baa3
160,219
3.4
166,121
3.4
Below Baa3
76,062
1.6
80,235
1.7
Total (2)
$
4,680,010
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 $689,064 and $444,121
of money market funds at March 31, 2024 and December 31, 2023,
respectively.
Investments Available for Sale
by Duration and Book Yield
Effective Duration
March 31, 2024
December 31, 2023
($ in
thousands)
Fair Value
Percent
Fair Value
Percent
< 1 Year
$
2,074,776
38.6
%
$
1,892,074
35.9
%
1 to < 2 Years
359,920
6.7
371,583
7.1
2 to < 3 Years
496,204
9.2
538,775
10.2
3 to < 4 Years
364,968
6.8
402,668
7.6
4 to < 5 Years
422,678
7.9
376,722
7.2
5 or more Years
1,650,528
30.8
1,681,917
32.0
Total investments available for sale
$
5,369,074
100.0
%
$
5,263,739
100.0
%
Pre-tax investment income yield:
Three months ended March 31, 2024
3.67
%
Holding company net cash and investments
available for sale:
($ in
thousands)
As of March 31, 2024
$
720,419
As of December 31, 2023
$
693,507
Exhibit N
Essent Group Ltd. and
Subsidiaries
Supplemental
Information
U.S. Mortgage Insurance
Company Capital
2024
2023
March 31
December 31
September 30
June 30
March 31
($ in
thousands)
U.S. Mortgage Insurance
Subsidiaries:
Combined statutory capital (1)
$
3,453,553
$
3,376,117
$
3,309,522
$
3,243,086
$
3,207,102
Combined net risk in force (2)
$
34,463,082
$
34,549,500
$
34,203,678
$
34,019,643
$
33,038,825
Risk-to-capital ratios: (3)
Essent Guaranty, Inc.
10.3:1
10.6:1
10.7:1
10.8:1
10.6:1
Essent Guaranty of PA, Inc.
0.4:1
0.4:1
0.5:1
0.5:1
0.5:1
Combined (4)
10.0:1
10.2:1
10.3:1
10.5:1
10.3:1
Essent Guaranty, Inc. PMIERs Data
(5):
Available Assets
$
3,464,119
$
3,379,936
$
3,318,179
$
3,245,481
$
3,226,436
Minimum Required Assets
1,999,928
1,985,545
1,910,659
1,991,741
1,917,769
PMIERs excess Available Assets
$
1,464,191
$
1,394,391
$
1,407,520
$
1,253,740
$
1,308,667
PMIERs sufficiency ratio (6)
173
%
170
%
174
%
163
%
168
%
Essent Reinsurance Ltd.:
Stockholder's equity (GAAP basis)
$
1,793,005
$
1,758,665
$
1,684,122
$
1,633,763
$
1,573,013
Net risk in force (2)
$
22,271,316
$
22,043,926
$
21,739,419
$
21,327,762
$
20,305,111
(1) Combined statutory capital
equals the sum of statutory capital of Essent Guaranty, Inc. plus
Essent Guaranty of PA, Inc., after eliminating the impact of
intercompany transactions. Statutory capital is computed based on
accounting practices prescribed or permitted by the Pennsylvania
Insurance Department and the National Association of Insurance
Commissioners Accounting Practices and Procedures Manual.
(2) Net risk in force represents
total risk in force, net of reinsurance ceded and net of exposures
on policies for which loss reserves have been established.
(3) The risk-to-capital ratio is
calculated as the ratio of net risk in force to statutory
capital.
(4) The combined risk-to-capital
ratio equals the sum of the net risk in force of Essent Guaranty,
Inc. and Essent Guaranty of PA, Inc. divided by the combined
statutory capital.
(5) Data is based on our
interpretation of the PMIERs as of the dates indicated.
(6) PMIERs sufficiency ratio is
calculated by dividing Available Assets by Minimum Required
Assets.
Exhibit O
Essent Group Ltd. and
Subsidiaries
Supplemental
Information
Ratios and Reconciliation of
Non-GAAP Financial Measures
2024
2023
March 31
December 31
September 30
June 30
March 31
Loss Ratio (1)
4.0
%
7.9
%
4.4
%
0.6
%
(0.1
)%
Expense Ratio (2)
27.1
%
27.0
%
27.3
%
19.8
%
22.8
%
Combined Ratio
31.1
%
34.9
%
31.7
%
20.4
%
22.7
%
Underwriting Margin (3)
68.9
%
65.1
%
68.3
%
79.6
%
77.3
%
We believe that loss, expense and combined
ratios are important measures of our financial performance. As a
result of the July 1, 2023 acquisition of Agents National Title and
Boston National Title (collectively "Title"), the consolidated
loss, expense and combined ratios ("Consolidated Ratios") for the
three months ended March 31, 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 months ended
March 31, 2024, in accordance with Regulation G:
Three Months Ended
March 31, 2024
Consolidated
Title
Excluding Title
($ in
thousands)
Revenues:
Net premiums earned
$
245,590
$
15,285
$
230,305
Net investment income
52,085
751
51,334
Realized investment losses, net
(1,140
)
—
(1,140
)
(Loss) income from other invested
assets
(1,915
)
—
(1,915
)
Settlement services (4)
1,424
1,424
—
Other income
2,313
408
1,905
Total revenues
298,357
17,868
280,489
Losses and expenses:
Provision (benefit) for losses and LAE
9,913
576
9,337
Other underwriting and operating
expenses
57,349
11,810
45,539
Premiums retained by agents
9,491
9,491
—
Interest expense
7,862
—
7,862
Total losses and expenses
84,615
21,877
62,738
Loss ratio (1)
4.0
%
3.4
%
4.1
%
Expense ratio (2)
27.1
%
127.5
%
19.8
%
Combined ratio
31.1
%
130.9
%
23.9
%
Underwriting Margin (3)
68.9
%
(30.9
%)
76.1
%
(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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240503505670/en/
Media Contact 610.230.0556 media@essentgroup.com
Investor Relations Contact Philip Stefano Vice President,
Investor Relations 855-809-ESNT ir@essentgroup.com
Essent (NYSE:ESNT)
Historical Stock Chart
From Apr 2024 to May 2024
Essent (NYSE:ESNT)
Historical Stock Chart
From May 2023 to May 2024
