Essent Group Ltd. (NYSE: ESNT) today reported net income for the
quarter ended September 30, 2024 of $176.2 million or $1.65 per
diluted share, compared to $178.0 million or $1.66 per diluted
share for the quarter ended September 30, 2023.
Essent also announced today that its Board of Directors has
declared a quarterly cash dividend of $0.28 per common share. The
dividend is payable on December 11, 2024, to shareholders of record
on December 2, 2024.
“We are pleased with our third quarter financial results, as we
continue to generate high quality earnings,” said Mark A. Casale,
Chairman and Chief Executive Officer. “Our results continue to
benefit from the impact of interest rates on persistency and the
growth in our investment portfolio. Our performance for the quarter
demonstrates the strength of our operating model in producing
strong returns and growing book value per share.”
Financial Highlights:
- New insurance written for the third quarter of 2024 was $12.5
billion, consistent with the second quarter of 2024 and the third
quarter of 2023.
- Insurance in force as of September 30, 2024 was $243.0 billion,
compared to $240.7 billion as of June 30, 2024 and $238.7 billion
as of September 30, 2023.
- Net investment income for the nine months ended September 30,
2024 was $165.5 million, up 22% from the comparable period in
2023.
- In September, Essent closed its 10th mortgage insurance-linked
note transaction, Radnor Re 2024-1, which provides $363 million of
collateralized reinsurance coverage for new insurance written from
July 2023 through July 2024.
Conference Call:
Essent management will hold a conference call at 10:00 AM
Eastern time today to discuss its results. The conference call will
be broadcast live over the Internet at
http://ir.essentgroup.com/events-and-presentations/events/default.aspx.
The call may also be accessed by dialing 888-330-2384 inside the
U.S., or 240-789-2701 for international callers, using passcode
9824537 or by referencing Essent.
A replay of the webcast will be available on the Essent website
approximately two hours after the live broadcast ends for a period
of one year. A replay of the conference call will be available
approximately two hours after the call ends for a period of two
weeks, using the following dial-in numbers and passcode:
800-770-2030 inside the U.S., or 647-362-9199 for international
callers, passcode 9824537.
In addition to the information provided in the Company's
earnings news release, other statistical and financial information,
which may be referred to during the conference call, will be
available on Essent's website at
http://ir.essentgroup.com/financials/quarterly-results/default.aspx.
Forward-Looking Statements:
This press release may include “forward-looking statements”
which are subject to known and unknown risks and uncertainties,
many of which may be beyond our control. Forward-looking statements
generally can be identified by the use of forward-looking
terminology such as "may," "will," “should,” “expect,” "plan,"
"anticipate," "believe," “estimate,” “predict,” or "potential" or
the negative thereof or variations thereon or similar terminology.
Actual events, results and outcomes may differ materially from our
expectations due to a variety of known and unknown risks,
uncertainties and other factors. Although it is not possible to
identify all of these risks and factors, they include, among
others, the following: changes in or to Fannie Mae and Freddie Mac
(the “GSEs”), whether through Federal legislation, restructurings
or a shift in business practices; failure to continue to meet the
mortgage insurer eligibility requirements of the GSEs; competition
for customers or the loss of a significant customer; lenders or
investors seeking alternatives to private mortgage insurance; an
increase in the number of loans insured through Federal government
mortgage insurance programs; decline in the volume of low down
payment mortgage originations; uncertainty of loss reserve
estimates; decrease in the length of time our insurance policies
are in force; deteriorating economic conditions; and other risks
and factors described in Part I, Item 1A “Risk Factors” of our
Annual Report on Form 10-K for the year ended December 31, 2023
filed with the Securities and Exchange Commission on February 16,
2024, as subsequently updated through other reports we file with
the Securities and Exchange Commission. Any forward-looking
information presented herein is made only as of the date of this
press release, and we do not undertake any obligation to update or
revise any forward-looking information to reflect changes in
assumptions, the occurrence of unanticipated events, or
otherwise.
About the Company:
Essent Group Ltd. (NYSE: ESNT) is a Bermuda-based holding
company (collectively with its subsidiaries, “Essent”) offering
private mortgage insurance, reinsurance, and title insurance and
settlement services to serve the housing finance industry.
Additional information regarding Essent may be found at
www.essentgroup.com.
Source: Essent Group Ltd.
Essent Group Ltd. and
Subsidiaries
Financial Results and
Supplemental Information (Unaudited)
Quarter Ended September 30,
2024
Exhibit A
Condensed Consolidated Statements of
Comprehensive Income (Unaudited)
Exhibit B
Condensed Consolidated Balance Sheets
(Unaudited)
Exhibit C
Consolidated Historical Quarterly Data
Exhibit D
U.S. Mortgage Insurance Portfolio
Historical Quarterly Data
Exhibit E
New Insurance Written - U.S. Mortgage
Insurance Portfolio
Exhibit F
Insurance in Force and Risk in Force -
U.S. Mortgage Insurance Portfolio
Exhibit G
Other Risk in Force
Exhibit H
U.S. Mortgage Insurance Portfolio Vintage
Data
Exhibit I
U.S. Mortgage Insurance Portfolio
Reinsurance Vintage Data
Exhibit J
U.S. Mortgage Insurance Portfolio
Geographic Data
Exhibit K
Rollforward of Defaults and Reserve for
Losses and LAE - U.S. Mortgage Insurance Portfolio
Exhibit L
Detail of Reserves by Default Delinquency
- U.S. Mortgage Insurance Portfolio
Exhibit M
Investments Available for Sale
Exhibit N
U.S. Mortgage Insurance Company
Capital
Exhibit O
Ratios and Reconciliation of Non-GAAP
Financial Measures
Exhibit A
Essent Group Ltd. and
Subsidiaries
Condensed Consolidated
Statements of Comprehensive Income (Unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
(In thousands,
except per share amounts)
2024
2023
2024
2023
Revenues:
Direct premiums written
$
277,754
$
270,868
$
819,595
$
759,526
Ceded premiums
(34,789
)
(30,294
)
(92,524
)
(103,431
)
Net premiums written
242,965
240,574
727,071
656,095
Decrease in unearned premiums
5,971
6,231
19,346
15,197
Net premiums earned
248,936
246,805
746,417
671,292
Net investment income
57,340
47,072
165,511
135,558
Realized investment gains (losses),
net
68
(235
)
(2,236
)
(2,312
)
Income (loss) from other invested
assets
2,820
(3,143
)
486
(10,697
)
Other income
7,414
5,609
17,699
18,641
Total revenues
316,578
296,108
927,877
812,482
Losses and expenses:
Provision for losses and LAE
30,666
10,822
40,245
11,902
Other underwriting and operating
expenses
57,259
54,814
170,595
145,183
Premiums retained by agents
9,622
13,175
29,328
13,175
Interest expense
11,457
7,854
27,168
22,184
Total losses and expenses
109,004
86,665
267,336
192,444
Income before income taxes
207,574
209,443
660,541
620,038
Income tax expense
31,399
31,484
99,038
99,019
Net income
$
176,175
$
177,959
$
561,503
$
521,019
Earnings per share:
Basic
$
1.67
$
1.68
$
5.32
$
4.90
Diluted
1.65
1.66
5.26
4.86
Weighted average shares
outstanding:
Basic
105,266
105,979
105,539
106,387
Diluted
106,554
107,025
106,700
107,232
Net income
$
176,175
$
177,959
$
561,503
$
521,019
Other comprehensive income
(loss):
Change in unrealized appreciation
(depreciation) of investments
117,358
(76,248
)
90,217
(53,593
)
Total other comprehensive income
(loss)
117,358
(76,248
)
90,217
(53,593
)
Comprehensive income
$
293,533
$
101,711
$
651,720
$
467,426
Exhibit B
Essent Group Ltd. and
Subsidiaries
Condensed Consolidated Balance
Sheets (Unaudited)
September 30,
December 31,
(In thousands,
except per share amounts)
2024
2023
Assets
Investments
Fixed maturities available for sale, at
fair value
$
4,919,868
$
4,335,008
Short-term investments available for sale,
at fair value
1,030,631
928,731
Total investments available for sale
5,950,499
5,263,739
Other invested assets
294,931
277,226
Total investments
6,245,430
5,540,965
Cash
109,306
141,787
Accrued investment income
40,453
35,689
Accounts receivable
54,394
63,266
Deferred policy acquisition costs
9,491
9,139
Property and equipment
41,221
41,304
Prepaid federal income tax
494,356
470,646
Goodwill and acquired intangible assets,
net
69,907
72,826
Other assets
61,981
51,051
Total assets
$
7,126,539
$
6,426,673
Liabilities and Stockholders'
Equity
Liabilities
Reserve for losses and LAE
$
288,316
$
260,095
Unearned premium reserve
120,939
140,285
Net deferred tax liability
410,761
362,753
Senior notes due 2029, net
493,673
—
Credit facility borrowings, net
—
421,920
Other accrued liabilities
171,865
139,070
Total liabilities
1,485,554
1,324,123
Commitments and contingencies
Stockholders' Equity
Common shares, $0.015 par value:
Authorized - 233,333; issued and
outstanding - 106,204 shares in 2024 and 106,597 shares in 2023
1,593
1,599
Additional paid-in capital
1,276,572
1,299,869
Accumulated other comprehensive loss
(190,279
)
(280,496
)
Retained earnings
4,553,099
4,081,578
Total stockholders' equity
5,640,985
5,102,550
Total liabilities and stockholders'
equity
$
7,126,539
$
6,426,673
Return on average equity (1)
13.9
%
14.6
%
(1) The 2024 return on average
equity is calculated by dividing annualized year-to-date 2024 net
income by average equity. The 2023 return on average equity is
calculated by dividing full year 2023 net income by average
equity.
Exhibit C
Essent Group Ltd. and
Subsidiaries
Supplemental
Information
Consolidated Historical
Quarterly Data
2024
2023
Selected Income Statement Data
September 30
June 30
March 31
December 31
September 30
(In thousands,
except per share amounts)
Revenues:
Net premiums earned:
U.S. Mortgage Insurance Portfolio
$
214,119
$
217,513
$
212,479
$
211,083
$
209,351
GSE and other risk share
17,130
17,745
17,826
17,166
16,850
Title insurance
17,687
16,633
15,285
17,365
20,604
Net premiums earned
248,936
251,891
245,590
245,614
246,805
Net investment income
57,340
56,086
52,085
50,581
47,072
Realized investment gains (losses),
net
68
(1,164
)
(1,140
)
(4,892
)
(235
)
Income (loss) from other invested
assets
2,820
(419
)
(1,915
)
(421
)
(3,143
)
Other income (1)
7,414
6,548
3,737
6,395
5,609
Total revenues
316,578
312,942
298,357
297,277
296,108
Losses and expenses:
Provision (benefit) for losses and LAE
30,666
(334
)
9,913
19,640
10,822
Other underwriting and operating
expenses
57,259
55,987
57,349
55,248
54,814
Premiums retained by agents
9,622
10,215
9,491
11,475
13,175
Interest expense
11,457
7,849
7,862
7,953
7,854
Total losses and expenses
109,004
73,717
84,615
94,316
86,665
Income before income taxes
207,574
239,225
213,742
202,961
209,443
Income tax expense (2)
31,399
35,616
32,023
27,594
31,484
Net income
$
176,175
$
203,609
$
181,719
$
175,367
$
177,959
Earnings per share:
Basic
$
1.67
$
1.93
$
1.72
$
1.66
$
1.68
Diluted
1.65
1.91
1.70
1.64
1.66
Weighted average shares
outstanding:
Basic
105,266
105,657
105,697
105,733
105,979
Diluted
106,554
106,778
106,770
106,823
107,025
Book value per share
$
53.11
$
50.58
$
48.96
$
47.87
$
44.98
Return on average equity
(annualized)
12.8
%
15.4
%
14.1
%
14.2
%
14.9
%
Borrowings outstanding
$
500,000
$
425,000
$
425,000
$
425,000
$
425,000
Undrawn committed capacity
$
500,000
$
400,000
$
400,000
$
400,000
$
400,000
Weighted average interest rate (end of
period)
6.25
%
7.07
%
7.06
%
7.11
%
7.07
%
Debt-to-capital
8.14
%
7.32
%
7.52
%
7.69
%
8.12
%
(1) Other income includes net
favorable (unfavorable) changes in the fair value of embedded
derivatives associated with certain of our third-party reinsurance
agreements, which for the quarters ended September 30, 2024, June
30, 2024, March 31, 2024, December 31, 2023, and September 30,
2023, were ($1,173), $732, ($1,902), $412, and ($898),
respectively.
(2) Income tax expense for the
quarters ended September 30, 2024, June 30, 2024, March 31, 2024,
December 31, 2023, and September 30, 2023 includes $475, $556,
($1,041), ($1,132), and ($763), respectively, of discrete tax
expense (benefit) associated with realized and unrealized gains and
losses. Income tax expense for the quarter ended March 31, 2024
also includes ($616) of excess tax benefits associated with the
vesting of common shares and common share units. Income tax expense
for the quarter ended December 31, 2023 also includes a $2,731 net
benefit associated with the recognition of a deferred tax asset for
unrealized losses on the investment portfolios of Essent Group and
Essent Re upon the enactment of the Bermuda Corporate Income
Tax.
Exhibit D
Essent Group Ltd. and
Subsidiaries
Supplemental
Information
U.S. Mortgage Insurance
Portfolio Historical Quarterly Data
2024
2023
Other Data:
September 30
June 30
March 31
December 31
September 30
($ in
thousands)
U.S. Mortgage Insurance
Portfolio
New insurance written
$
12,513,695
$
12,503,125
$
8,323,544
$
8,769,160
$
12,505,823
New risk written
3,437,465
3,449,623
2,289,508
2,409,340
3,458,467
Average insurance in force
$
242,065,632
$
239,538,571
$
238,595,268
$
239,005,961
$
237,270,093
Insurance in force (end of period)
$
242,976,043
$
240,669,165
$
238,477,402
$
239,078,262
$
238,661,612
Gross risk in force (end of period)
(1)
$
66,237,992
$
65,269,064
$
64,247,810
$
64,061,374
$
63,605,057
Risk in force (end of period)
$
55,915,640
$
55,521,538
$
54,686,533
$
54,591,590
$
53,920,308
Policies in force
815,507
814,237
815,752
822,012
825,248
Weighted average coverage (2)
27.3
%
27.1
%
26.9
%
26.8
%
26.7
%
Annual persistency
86.6
%
86.7
%
86.9
%
86.9
%
86.6
%
Loans in default (count)
15,906
13,954
13,992
14,819
13,391
Percentage of loans in default
1.95
%
1.71
%
1.72
%
1.80
%
1.62
%
U.S. Mortgage Insurance Portfolio
premium rate:
Base average premium rate (3)
0.41
%
0.41
%
0.41
%
0.40
%
0.40
%
Single premium cancellations
(4)
—
%
—
%
—
%
—
%
—
%
Gross average premium rate
0.41
%
0.41
%
0.41
%
0.40
%
0.40
%
Ceded premiums
(0.06
%)
(0.05
%)
(0.05
%)
(0.05
%)
(0.05
%)
Net average premium rate
0.35
%
0.36
%
0.36
%
0.35
%
0.35
%
(1) Gross risk in force includes
risk ceded under third-party reinsurance.
(2) Weighted average coverage is
calculated by dividing end of period gross risk in force by end of
period insurance in force.
(3) Base average premium rate is
calculated by dividing annualized base premiums earned by average
insurance in force for the period.
(4) Single premium cancellations is
calculated by dividing annualized premiums on the cancellation of
non-refundable single premium policies by average insurance in
force for the period.
Exhibit E
Essent Group Ltd. and
Subsidiaries
Supplemental Information -
U.S. Mortgage Insurance Portfolio
New Insurance Written:
Flow
NIW by Credit Score
Three Months Ended
Nine Months Ended
September 30, 2024
September 30, 2023
September 30, 2024
September 30, 2023
($ in
thousands)
>=760
$
5,339,574
42.7
%
$
5,212,343
41.8
%
$
14,387,356
43.2
%
$
15,473,191
39.8
%
740-759
2,141,817
17.1
2,205,066
17.6
5,717,289
17.1
7,031,821
18.1
720-739
1,764,319
14.1
1,911,320
15.3
4,828,718
14.5
6,310,564
16.2
700-719
1,622,450
13.0
1,867,510
14.9
4,348,047
13.0
5,892,704
15.1
680-699
918,116
7.3
891,471
7.1
2,351,589
7.1
3,024,347
7.8
<=679
727,419
5.8
418,113
3.3
1,707,365
5.1
1,165,065
3.0
Total
$
12,513,695
100.0
%
$
12,505,823
100.0
%
$
33,340,364
100.0
%
$
38,897,692
100.0
%
Weighted average credit score
747
747
747
746
NIW by LTV
Three Months Ended
Nine Months Ended
September 30, 2024
September 30, 2023
September 30, 2024
September 30, 2023
($ in
thousands)
85.00% and below
$
836,186
6.7
%
$
849,250
6.7
%
$
2,250,434
6.7
%
$
2,801,011
7.2
%
85.01% to 90.00%
2,415,504
19.3
2,445,924
19.6
6,571,300
19.7
7,951,062
20.4
90.01% to 95.00%
6,616,174
52.9
6,614,050
52.9
18,008,682
54.0
21,383,696
55.0
95.01% and above
2,645,831
21.1
2,596,599
20.8
6,509,948
19.6
6,761,923
17.4
Total
$
12,513,695
100.0
%
$
12,505,823
100.0
%
$
33,340,364
100.0
%
$
38,897,692
100.0
%
Weighted average LTV
93
%
93
%
93
%
93
%
NIW by Product
Three Months Ended
Nine Months Ended
September 30, 2024
September 30, 2023
September 30, 2024
September 30, 2023
Single Premium policies
1.4
%
2.8
%
1.5
%
3.8
%
Monthly Premium policies
98.6
97.2
98.5
96.2
100.0
%
100.0
%
100.0
%
100.0
%
NIW by Purchase vs.
Refinance
Three Months Ended
Nine Months Ended
September 30, 2024
September 30, 2023
September 30, 2024
September 30, 2023
Purchase
97.0
%
99.0
%
97.4
%
98.8
%
Refinance
3.0
1.0
2.6
1.2
100.0
%
100.0
%
100.0
%
100.0
%
Exhibit F
Essent Group Ltd. and
Subsidiaries
Supplemental
Information
Insurance in Force and Risk in
Force - U.S. Mortgage Insurance Portfolio
Portfolio by Credit
Score
IIF by FICO score
September 30, 2024
June 30, 2024
September 30, 2023
($ in
thousands)
>=760
$
98,553,455
40.6
%
$
97,668,435
40.6
%
$
97,027,348
40.7
%
740-759
42,377,559
17.4
41,915,598
17.4
41,362,480
17.3
720-739
37,947,254
15.6
37,678,804
15.7
37,297,809
15.6
700-719
32,685,044
13.5
32,331,564
13.4
31,674,346
13.3
680-699
19,890,335
8.2
19,751,956
8.2
19,850,176
8.3
<=679
11,522,396
4.7
11,322,808
4.7
11,449,453
4.8
Total
$
242,976,043
100.0
%
$
240,669,165
100.0
%
$
238,661,612
100.0
%
Weighted average credit score
746
746
746
Gross RIF by FICO score
September 30, 2024
June 30, 2024
September 30, 2023
($ in
thousands)
>=760
$
26,614,399
40.2
%
$
26,238,140
40.2
%
$
25,594,262
40.1
%
740-759
11,715,485
17.7
11,525,987
17.7
11,165,727
17.6
720-739
10,485,311
15.8
10,362,021
15.9
10,090,889
15.9
700-719
9,044,551
13.7
8,899,342
13.6
8,568,811
13.5
680-699
5,451,406
8.2
5,382,312
8.2
5,327,434
8.4
<=679
2,926,840
4.4
2,861,262
4.4
2,857,934
4.5
Total
$
66,237,992
100.0
%
$
65,269,064
100.0
%
$
63,605,057
100.0
%
Portfolio by LTV
IIF by LTV
September 30, 2024
June 30, 2024
September 30, 2023
($ in
thousands)
85.00% and below
$
15,555,555
6.4
%
$
16,927,111
7.0
%
$
21,226,685
8.9
%
85.01% to 90.00%
61,262,960
25.2
61,774,991
25.7
63,374,562
26.6
90.01% to 95.00%
125,919,529
51.8
123,414,332
51.3
118,461,030
49.6
95.01% and above
40,237,999
16.6
38,552,731
16.0
35,599,335
14.9
Total
$
242,976,043
100.0
%
$
240,669,165
100.0
%
$
238,661,612
100.0
%
Weighted average LTV
93
%
93
%
93
%
Gross RIF by LTV
September 30, 2024
June 30, 2024
September 30, 2023
($ in
thousands)
85.00% and below
$
1,845,584
2.8
%
$
2,010,864
3.1
%
$
2,525,753
4.0
%
85.01% to 90.00%
15,120,025
22.8
15,238,201
23.3
15,566,095
24.5
90.01% to 95.00%
37,149,222
56.1
36,405,573
55.8
34,848,762
54.8
95.01% and above
12,123,161
18.3
11,614,426
17.8
10,664,447
16.7
Total
$
66,237,992
100.0
%
$
65,269,064
100.0
%
$
63,605,057
100.0
%
Portfolio by Loan Amortization
Period
IIF by Loan Amortization Period
September 30, 2024
June 30, 2024
September 30, 2023
($ in
thousands)
FRM 30 years and higher
$
237,628,900
97.8
%
$
235,138,420
97.7
%
$
232,186,999
97.3
%
FRM 20-25 years
1,199,947
0.5
1,322,021
0.5
1,910,610
0.8
FRM 15 years
1,191,749
0.5
1,276,780
0.5
1,719,467
0.7
ARM 5 years and higher
2,955,447
1.2
2,931,944
1.3
2,844,536
1.2
Total
$
242,976,043
100.0
%
$
240,669,165
100.0
%
$
238,661,612
100.0
%
Exhibit G
Essent Group Ltd. and
Subsidiaries
Supplemental
Information
Other Risk in Force
2024
2023
($ in
thousands)
September 30
June 30
March 31
December 31
September 30
GSE and other risk share (1):
Risk in Force
$
2,254,726
$
2,304,885
$
2,307,267
$
2,244,944
$
2,247,393
Reserve for losses and LAE
$
37
$
33
$
32
$
29
$
54
Weighted average credit score
750
750
750
749
749
Weighted average LTV
82
%
82
%
82
%
82
%
82
%
(1) GSE and other risk share
includes GSE risk share and other reinsurance transactions. Essent
Reinsurance Ltd. ("Essent Re") provides insurance or reinsurance
relating to the risk in force on loans in reference pools acquired
by Freddie Mac and Fannie Mae.
Exhibit H
Essent Group Ltd. and
Subsidiaries
Supplemental
Information
U.S. Mortgage Insurance
Portfolio Vintage Data
September 30, 2024
Insurance in Force
Year
Original Insurance
Written ($ in thousands)
Remaining Insurance
in Force ($ in thousands)
% Remaining of Original
Insurance
Number of Policies in
Force
Weighted Average
Coupon
% Purchase
>90% LTV
>95% LTV
FICO < 700
FICO >= 760
Incurred Loss Ratio (Inception
to Date) (1)
Number of Loans in
Default
Percentage of Loans in
Default
2010 - 2014
$
60,668,851
$
1,010,190
1.7
%
5,566
4.28
%
66.0
%
49.5
%
1.1
%
10.1
%
49.3
%
2.4
%
248
4.46
%
2015
26,193,656
870,740
3.3
5,028
4.29
76.8
60.9
5.7
18.1
40.0
2.2
235
4.67
2016
34,949,319
2,357,912
6.7
14,050
3.93
86.4
78.0
13.7
16.4
41.3
2.1
450
3.20
2017
43,858,322
3,784,941
8.6
23,293
4.30
90.8
80.4
23.8
21.4
36.4
3.1
1,037
4.45
2018
47,508,525
4,857,991
10.2
27,818
4.80
95.1
74.0
27.1
21.9
32.3
4.2
1,314
4.72
2019
63,569,183
10,717,480
16.9
52,219
4.24
89.1
71.7
25.7
18.9
35.1
3.7
1,687
3.23
2020
107,944,065
37,929,239
35.1
150,176
3.20
72.1
62.5
14.6
10.8
45.5
2.8
2,452
1.63
2021
84,218,250
53,029,350
63.0
177,048
3.10
89.0
66.1
16.6
13.8
40.4
6.1
3,420
1.93
2022
63,061,262
53,154,263
84.3
153,151
5.09
98.1
66.0
11.4
12.6
39.6
17.4
3,091
2.02
2023
47,666,852
43,012,414
90.2
121,053
6.64
98.8
72.8
18.6
11.0
38.7
18.1
1,732
1.43
2024 (through September 30)
33,340,364
32,251,523
96.7
86,105
6.84
97.4
73.8
20.0
12.4
42.4
10.1
240
0.28
Total
$
612,978,649
$
242,976,043
39.6
815,507
4.79
91.2
68.4
16.6
12.9
40.6
4.6
15,906
1.95
(1) Incurred loss ratio is
calculated by dividing the sum of case reserves and cumulative
amount paid for claims by cumulative net premiums earned.
Exhibit I
Essent Group Ltd. and
Subsidiaries
Supplemental
Information
U.S. Mortgage Insurance
Portfolio Reinsurance Vintage Data
September 30, 2024
($ in
thousands)
Insurance Linked Notes (1)
Earned Premiums Ceded
Deal Name
Vintage
Remaining Insurance
in Force
Remaining Risk
in Force
Original Reinsurance in
Force
Remaining Reinsurance
in Force
Losses Ceded to
Date
Original First
Layer Retention
Remaining First
Layer Retention
Quarter-to-Date
Year-to-Date
Reduction in PMIERs Minimum
Required Assets (3)
Radnor Re 2021-1
Aug. 2020 - Mar. 2021
$
25,750,186
$
6,963,249
$
557,911
$
220,532
$
—
$
278,956
$
277,985
$
2,091
$
6,564
$
160,822
Radnor Re 2021-2
Apr. 2021 - Sep. 2021
31,287,234
8,616,211
439,407
286,439
—
279,415
277,195
3,715
10,952
215,335
Radnor Re 2022-1
Oct. 2021 - Jul. 2022
28,815,017
7,856,567
237,868
191,938
—
303,761
301,278
3,825
11,478
176,583
Radnor Re 2023-1
Aug. 2022 - Jun. 2023
28,989,426
7,941,539
281,462
281,462
—
281,463
281,089
3,705
10,657
266,826
Radnor Re 2024-1
Jul. 2023 - Jul. 2024
30,359,933
8,387,056
363,366
363,366
—
256,495
256,495
472
472
363,366
Total
$
145,201,796
$
39,764,622
$
1,880,014
$
1,343,737
$
—
$
1,400,090
$
1,394,042
$
13,808
$
40,123
(5)
$
1,182,932
Excess of Loss Reinsurance (2)
Earned Premiums Ceded
Deal Name
Vintage
Remaining Insurance
in Force
Remaining Risk
in Force
Original Reinsurance in
Force
Remaining Reinsurance
in Force
Losses Ceded to
Date
Original First
Layer Retention
Remaining First
Layer Retention
Quarter-to-Date
Year-to-Date
Reduction in PMIERs Minimum
Required Assets (3)
XOL 2019-1
Jan. 2018 - Dec. 2018
$
4,811,623
$
1,266,631
$
118,650
$
76,144
$
—
$
253,643
$
244,294
$
641
$
1,868
$
—
XOL 2020-1
Jan. 2019 - Aug. 2019
6,026,073
1,591,126
55,102
30,592
—
215,605
212,208
263
809
—
XOL 2022-1
Oct. 2021 - Dec. 2022
65,149,106
17,727,315
141,992
141,992
—
507,114
500,886
1,611
4,797
138,001
XOL 2023-1
Jan. 2023 - Dec. 2023
38,402,550
10,637,649
36,627
36,627
—
366,270
366,141
439
1,306
35,232
XOL 2024-1
Jan. 2024 - Dec. 2024
32,177,995
8,864,366
46,537
46,537
—
265,931
265,931
528
528
44,765
Total
$
146,567,347
$
40,087,087
$
398,908
$
331,892
$
—
$
1,608,563
$
1,589,460
$
3,482
$
9,308
$
217,998
Quota Share Reinsurance (2)
Losses Ceded
Ceding Commission
Earned Premiums Ceded
Year
Ceding Percentage
Remaining Insurance
in Force
Remaining Risk
in Force
Remaining Ceded Insurance in
Force
Remaining Ceded Risk in
Force
Quarter-to-Date
Year-to-Date
Quarter-to-Date
Year-to-Date
Quarter-to-Date
Year-to-Date
Reduction in PMIERs Minimum
Required Assets (3)
Sep. 2019 - Dec. 2020
(4
)
$
42,414,942
$
11,536,848
$
9,585,777
$
2,572,717
$
645
$
(146
)
$
2,719
$
7,364
$
4,646
$
12,450
$
141,312
Jan. 2022 - Dec. 2022
20
%
53,084,698
14,433,907
10,616,940
2,886,781
2,261
3,516
1,850
5,634
5,776
14,221
212,195
Jan. 2023 - Dec. 2023
17.5
%
38,282,838
10,608,139
6,699,497
1,856,424
2,031
4,492
1,330
4,045
4,825
12,987
143,807
Jan. 2024 - Dec. 2024
15
%
32,205,363
8,872,008
4,830,804
1,330,801
557
717
793
1,302
2,263
3,515
94,807
Total
$
165,987,841
$
45,450,902
$
31,733,018
$
8,646,723
$
5,494
$
8,579
$
6,692
$
18,345
$
17,510
$
43,173
$
592,121
(1) Reinsurance provided by
unaffiliated special purpose insurers through the issuance of
mortgage insurance-linked notes ("ILNs").
(2) Reinsurance provided by panels
of reinsurers.
(3) Represents the reduction in
Essent Guaranty, Inc.'s Minimum Required Assets based on our
interpretation of the PMIERs.
(4) Reinsurance coverage on 40% of
eligible single premium policies and 20% of all other eligible
policies.
(5) Excludes ($11) and ($80) of
benefit in ceded premium on retired ILNs for the three and nine
months ended September 30, 2024, respectively.
Exhibit J
Essent Group Ltd. and
Subsidiaries
Supplemental
Information
U.S. Mortgage Insurance
Portfolio Geographic Data
IIF by State
September 30, 2024
June 30, 2024
September 30, 2023
CA
12.5
%
12.7
%
13.0
%
FL
11.8
11.6
11.0
TX
10.9
10.8
10.5
CO
4.1
4.1
4.1
AZ
3.8
3.8
3.7
GA
3.7
3.6
3.4
WA
3.4
3.4
3.4
NC
3.0
3.0
2.8
OH
2.6
2.6
2.6
IL
2.6
2.7
2.8
All Others
41.6
41.7
42.7
Total
100.0
%
100.0
%
100.0
%
Gross RIF by State
September 30, 2024
June 30, 2024
September 30, 2023
CA
12.5
%
12.6
%
12.9
%
FL
12.0
11.8
11.3
TX
11.2
11.1
10.8
CO
4.0
4.1
4.0
AZ
3.9
3.8
3.8
GA
3.8
3.7
3.5
WA
3.4
3.4
3.4
NC
3.0
3.0
2.9
OH
2.6
2.5
2.6
IL
2.5
2.6
2.8
All Others
41.1
41.4
42.0
Total
100.0
%
100.0
%
100.0
%
Exhibit K
Essent Group Ltd. and
Subsidiaries
Supplemental
Information
Rollforward of Defaults and
Reserve for Losses and LAE
U.S. Mortgage Insurance
Portfolio
Rollforward of Insured Loans
in Default
Three Months Ended
2024
2023
September 30
June 30
March 31
December 31
September 30
Beginning default inventory
13,954
13,992
14,819
13,391
12,480
Plus: new defaults (A)
9,984
8,119
8,260
9,007
7,953
Less: cures
(7,819
)
(7,956
)
(8,951
)
(7,418
)
(6,902
)
Less: claims paid
(182
)
(183
)
(123
)
(148
)
(129
)
Less: rescissions and denials, net
(31
)
(18
)
(13
)
(13
)
(11
)
Ending default inventory
15,906
13,954
13,992
14,819
13,391
(A) New defaults remaining as of
September 30, 2024
7,189
3,198
1,665
1,309
806
Cure rate (1)
28
%
61
%
80
%
85
%
90
%
Total amount paid for claims (in
thousands)
$
5,749
$
5,566
$
3,605
$
3,411
$
2,956
Average amount paid per claim (in
thousands)
$
32
$
30
$
29
$
22
$
23
Severity
58
%
60
%
65
%
62
%
66
%
Rollforward of Reserve for
Losses and LAE
Three Months Ended
2024
2023
($ in
thousands)
September 30
June 30
March 31
December 31
September 30
Reserve for losses and LAE at beginning of
period
$
246,107
$
253,565
$
245,402
$
226,617
$
216,888
Less: Reinsurance recoverables
26,022
26,570
24,005
20,656
17,958
Net reserve for losses and LAE at
beginning of period
220,085
226,995
221,397
205,961
198,930
Add provision for losses and LAE occurring
in:
Current period
51,649
30,653
39,396
38,922
35,609
Prior years
(21,836
)
(31,880
)
(30,062
)
(19,912
)
(25,533
)
Incurred losses and LAE during the
period
29,813
(1,227
)
9,334
19,010
10,076
Deduct payments for losses and LAE
occurring in:
Current period
637
478
1
330
156
Prior years
5,202
5,205
3,735
3,244
2,889
Loss and LAE payments during the
period
5,839
5,683
3,736
3,574
3,045
Net reserve for losses and LAE at end of
period
244,059
220,085
226,995
221,397
205,961
Plus: Reinsurance recoverables
30,867
26,022
26,570
24,005
20,656
Reserve for losses and LAE at end of
period
$
274,926
$
246,107
$
253,565
$
245,402
$
226,617
(1) The cure rate is calculated by
dividing new defaults remaining as of the reporting date by the
original number of new defaults reported in the quarterly period
and subtracting that percentage from 100%.
Exhibit L
Essent Group Ltd. and
Subsidiaries
Supplemental
Information
Detail of Reserves by Default
Delinquency
U.S. Mortgage Insurance
Portfolio
September 30, 2024
Number of
Policies in
Default
Percentage of
Policies in
Default
Amount of Reserves
Percentage of Reserves
Defaulted RIF
Reserves as a Percentage
of
Defaulted RIF
($ in
thousands)
Missed Payments:
Three payments or less
8,293
52
%
$
53,849
21
%
$
627,505
9
%
Four to eleven payments
5,498
35
104,223
41
437,515
24
Twelve or more payments
1,980
12
86,821
35
144,396
60
Pending claims
135
1
8,620
3
9,692
89
Total case reserves
15,906
100
%
253,513
100
%
$
1,219,108
21
%
IBNR
19,013
LAE
2,400
Total reserves for losses and LAE
$
274,926
Average reserve per default:
Case
$
15.9
Total
$
17.3
Default Rate
1.95
%
December 31, 2023
Number of
Policies in
Default
Percentage of
Policies in
Default
Amount of Reserves
Percentage of Reserves
Defaulted RIF
Reserves as a Percentage
of
Defaulted RIF
($ in
thousands)
Missed Payments:
Three payments or less
7,288
49
%
$
44,607
20
%
$
527,419
8
%
Four to eleven payments
5,421
37
97,424
43
417,876
23
Twelve or more payments
1,984
13
78,540
35
132,257
59
Pending claims
126
1
5,550
2
6,302
88
Total case reserves
14,819
100
%
226,121
100
%
$
1,083,854
21
%
IBNR
16,959
LAE
2,322
Total reserves for losses and LAE
$
245,402
Average reserve per default:
Case
$
15.3
Total
$
16.6
Default Rate
1.80
%
September 30, 2023
Number of
Policies in
Default
Percentage of
Policies in
Default
Amount of Reserves
Percentage of Reserves
Defaulted RIF
Reserves as a Percentage
of
Defaulted RIF
($ in
thousands)
Missed Payments:
Three payments or less
6,383
48
%
$
38,412
18
%
$
448,039
9
%
Four to eleven payments
4,877
36
87,025
42
369,711
24
Twelve or more payments
1,989
15
77,369
37
126,317
61
Pending claims
142
1
6,076
3
6,924
88
Total case reserves
13,391
100
%
208,882
100
%
$
950,991
22
%
IBNR
15,666
LAE
2,069
Total reserves for losses and LAE
$
226,617
Average reserve per default:
Case
$
15.6
Total
$
16.9
Default Rate
1.62
%
Exhibit M
Essent Group Ltd. and
Subsidiaries
Supplemental
Information
Investments Available for
Sale
Investments Available for Sale
by Asset Class
Asset Class
September 30, 2024
December 31, 2023
($ in
thousands)
Fair Value
Percent
Fair Value
Percent
U.S. Treasury securities
$
709,807
11.9
%
$
996,382
18.9
%
U.S. agency securities
—
—
7,195
0.1
U.S. agency mortgage-backed securities
1,051,308
17.7
821,346
15.6
Municipal debt securities
577,647
9.8
547,258
10.5
Non-U.S. government securities
72,971
1.2
67,447
1.3
Corporate debt securities
1,704,388
28.6
1,297,055
24.7
Residential and commercial mortgage
securities
503,980
8.5
517,940
9.8
Asset-backed securities
548,076
9.2
564,995
10.7
Money market funds
782,322
13.1
444,121
8.4
Total investments available for sale
$
5,950,499
100.0
%
$
5,263,739
100.0
%
Investments Available for Sale
by Credit Rating
Rating (1)
September 30, 2024
December 31, 2023
($ in
thousands)
Fair Value
Percent
Fair Value
Percent
Aaa
$
2,541,407
49.2
%
$
2,561,363
53.2
%
Aa1
103,522
2.0
104,474
2.2
Aa2
286,304
5.5
291,501
6.0
Aa3
247,669
4.7
208,882
4.3
A1
510,486
9.9
377,188
7.8
A2
391,018
7.6
329,423
6.8
A3
424,218
8.2
253,081
5.3
Baa1
227,741
4.4
220,901
4.6
Baa2
200,539
3.9
226,449
4.7
Baa3
158,288
3.1
166,121
3.4
Below Baa3
76,985
1.5
80,235
1.7
Total (2)
$
5,168,177
100.0
%
$
4,819,618
100.0
%
(1) Based on ratings issued by
Moody's, if available. S&P or Fitch rating utilized if Moody's
not available.
(2) Excludes $782,322 and $444,121
of money market funds at September 30, 2024 and December 31, 2023,
respectively.
Investments Available for Sale
by Duration and Book Yield
Effective Duration
September 30, 2024
December 31, 2023
($ in
thousands)
Fair Value
Percent
Fair Value
Percent
< 1 Year
$
1,829,657
30.7
%
$
1,892,074
35.9
%
1 to < 2 Years
501,569
8.4
371,583
7.1
2 to < 3 Years
506,047
8.5
538,775
10.2
3 to < 4 Years
499,816
8.4
402,668
7.6
4 to < 5 Years
417,500
7.0
376,722
7.2
5 or more Years
2,195,910
37.0
1,681,917
32.0
Total investments available for sale
$
5,950,499
100.0
%
$
5,263,739
100.0
%
Pre-tax investment income yield:
Three months ended
3.81
%
Nine months ended September 30, 2024
3.77
%
Holding company net cash and investments
available for sale:
($ in
thousands)
As of September 30, 2024
$
991,151
As of December 31, 2023
$
693,507
Exhibit N
Essent Group Ltd. and
Subsidiaries
Supplemental
Information
U.S. Mortgage Insurance
Company Capital
2024
2023
September 30
June 30
March 31
December 31
September 30
($ in
thousands)
U.S. Mortgage Insurance
Subsidiaries:
Combined statutory capital (1)
$
3,584,580
$
3,530,462
$
3,453,553
$
3,376,117
$
3,309,522
Combined net risk in force (2)
$
34,893,957
$
34,812,227
$
34,463,082
$
34,549,500
$
34,203,678
Risk-to-capital ratios: (3)
Essent Guaranty, Inc.
10.0:1
10.2:1
10.3:1
10.6:1
10.7:1
Essent Guaranty of PA, Inc.
0.3:1
0.3:1
0.4:1
0.4:1
0.5:1
Combined (4)
9.7:1
9.9:1
10.0:1
10.2:1
10.3:1
Essent Guaranty, Inc. PMIERs Data
(5):
Available Assets
$
3,598,725
$
3,513,609
$
3,464,119
$
3,379,936
$
3,318,179
Minimum Required Assets
1,903,473
2,052,135
1,999,928
1,985,545
1,910,659
PMIERs excess Available Assets
$
1,695,252
$
1,461,474
$
1,464,191
$
1,394,391
$
1,407,520
PMIERs sufficiency ratio (6)
189
%
171
%
173
%
170
%
174
%
Essent Reinsurance Ltd.:
Stockholder's equity (GAAP basis)
$
1,826,901
$
1,793,777
$
1,793,005
$
1,758,665
$
1,684,122
Net risk in force (2)
$
23,003,846
$
22,770,165
$
22,271,316
$
22,043,926
$
21,739,419
(1) Combined statutory capital
equals the sum of statutory capital of Essent Guaranty, Inc. plus
Essent Guaranty of PA, Inc., after eliminating the impact of
intercompany transactions. Statutory capital is computed based on
accounting practices prescribed or permitted by the Pennsylvania
Insurance Department and the National Association of Insurance
Commissioners Accounting Practices and Procedures Manual.
(2) Net risk in force represents
total risk in force, net of reinsurance ceded and net of exposures
on policies for which loss reserves have been established.
(3) The risk-to-capital ratio is
calculated as the ratio of net risk in force to statutory
capital.
(4) The combined risk-to-capital
ratio equals the sum of the net risk in force of Essent Guaranty,
Inc. and Essent Guaranty of PA, Inc. divided by the combined
statutory capital.
(5) Data is based on our
interpretation of the PMIERs as of the dates indicated.
(6) PMIERs sufficiency ratio is
calculated by dividing Available Assets by Minimum Required
Assets.
Exhibit O
Essent Group Ltd. and
Subsidiaries
Supplemental
Information
Ratios and Reconciliation of
Non-GAAP Financial Measures
2024
2023
September 30
June 30
March 31
December 31
September 30
Loss Ratio (1)
12.2
%
(0.1
)%
4.0
%
7.9
%
4.4
%
Expense Ratio (2)
26.5
%
26.1
%
27.1
%
27.0
%
27.3
%
Combined Ratio
38.7
%
26.0
%
31.1
%
34.9
%
31.7
%
Underwriting Margin (3)
61.3
%
74.0
%
68.9
%
65.1
%
68.3
%
We believe that loss, expense and combined
ratios are important measures of our financial performance. As a
result of the July 1, 2023 acquisition of Agents National Title and
Boston National Title (collectively "Title"), the consolidated
loss, expense and combined ratios ("Consolidated Ratios") for the
nine months ended September 30, 2024 lack comparability with
periods prior to the acquisition. In order to provide investors
with more comparative information to prior periods, Essent has
prepared the table below to reconcile the Consolidated Ratios to
ratios excluding Title, as shown below. Ratios excluding Title are
financial measures that are not calculated under standards or rules
that comprise accounting principles generally accepted in the
United States (GAAP) and are referred to as non-GAAP measures.
Ratios excluding Title are measures used to monitor our results and
should not be viewed as a substitute for those measures determined
in accordance with GAAP.
The following table sets forth the
reconciliation of the loss, expense and combined ratios excluding
Title to the most comparable GAAP amount for the three and nine
months ended September 30, 2024 in accordance with Regulation
G:
Three Months Ended
September 30, 2024
Nine Months Ended
September 30, 2024
Consolidated
Title
Excluding Title
Consolidated
Title
Excluding Title
($ in
thousands)
Revenues:
Net premiums earned
$
248,936
$
17,687
$
231,249
$
746,417
$
49,604
$
696,813
Net investment income
57,340
809
56,531
165,511
2,365
163,146
Realized investment gains (losses),
net
68
—
68
(2,236
)
—
(2,236
)
Income from other invested assets
2,820
—
2,820
486
—
486
Settlement services (4)
3,237
3,237
—
6,074
6,074
—
Other income
4,177
473
3,704
11,625
1,354
10,271
Total revenues
316,578
22,206
294,372
927,877
59,397
868,480
Losses and expenses:
Provision for losses and LAE
30,666
850
29,816
40,245
2,317
37,928
Other underwriting and operating expenses
(5)
57,259
14,845
42,414
170,595
39,564
131,031
Premiums retained by agents
9,622
9,622
—
29,328
29,328
—
Interest expense
11,457
—
11,457
27,168
—
27,168
Total losses and expenses
109,004
25,317
83,687
267,336
71,209
196,127
Loss ratio (1)
12.2
%
4.1
%
12.9
%
5.3
%
4.2
%
5.4
%
Expense ratio (2)
26.5
%
116.9
%
18.3
%
26.6
%
123.7
%
18.8
%
Combined ratio
38.7
%
121.0
%
31.2
%
31.9
%
127.9
%
24.2
%
Underwriting Margin (3)
61.3
%
(21.0
%)
68.8
%
68.1
%
(27.9
%)
75.8
%
(1) Loss ratio is calculated by
dividing the provision for losses and LAE by the sum of net
premiums earned and settlement services revenue, if applicable.
(2) Expense ratio is calculated by
dividing the sum of other underwriting and operating expenses and
premiums retained by agents by the sum of net premiums earned and
settlement services revenue, if applicable.
(3) Calculated as the inverse of
the combined ratio.
(4) Settlement services revenue is
included in "Other income" within Exhibit A and Exhibit C.
(5) Title expenses reflect only
direct expenses of Title operations and do not include corporate or
centralized support expense allocations.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241101625309/en/
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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