Essent Group Ltd Q2 2024 Presentation

Company Overview

• Essent Group Ltd. is a Bermuda-based holding company that went public in 2013 and is traded on the New York Stock Exchange (NYSE: ESNT).
• Two primary operating companies: Essent Guaranty, Inc. (Radnor, PA) and Essent Reinsurance Ltd. (Hamilton, Bermuda).
• Offers private mortgage insurance, reinsurance and title insurance and settlement services to serve the U.S. housing finance industry .
• Transformed primary MI business model from "Buy and Hold" to "Buy, Manage & Distribute" through use of programmatic reinsurance.
• Developed proprietary credit engine EssentEDGE®, a cloud-based platform that leverages machine learning for MI pricing and risk management.
• Essent Guaranty, Inc. is rated A3 by Moody's, A (Excellent) by A.M.
  Best, and A- by S&P.

Recent Developments

• Effective July 1st, we entered into an excess of loss transaction with a panel of third-party reinsurers covering 15% of all eligible 2024 new insurance written.
• On July 1st, Essent closed two transactions that provide access to approximately $1 billion in debt capital.
• • A public offering of $500 million of senior unsecured notes, $425 million was used to pay off the existing term debt.
  • A five-year, $500 million unsecured revolving credit facility.

Capital Distribution To Shareholders

• In conjunction with our 2Q24 earnings release, we announced Board approval of a quarterly dividend of $0.28 per common share, payable during 3Q24.
• During the second quarter, we repurchased approximately 396 thousand common shares for $22 million.

$8.35

$10.33 $12.08

$50.58

$47.87

$41.44

$38.73

$34.36

$30.34

$24.11

$19.71

$14.43

Strong Cash Flows

& Earnings

Programmatic

Reinsurance

Protection

Steadily Increasing

Dividends

Disciplined Capital

Management

25+ years Experienced Management Team

Best in Class

Analytics &

Technologies

Industry Fundamentals

STABLE DEMAND OF FIRST-TIME HOMEBUYER POPULATION

Favorable demographic trends should continue to provide fundamental support to housing demand as the projected population of people in the average age range of a first-time homebuyer is forecasted to increase over the next 5+ years.

PERSISTENCY vs. 30-YEAR MORTGAGE RATE

MONTHS' SUPPLY OF HOUSING INVENTORY

Total housing inventory remains low at approximately 4 months, driven by existing home inventory pressures from various macro trends (e.g. reductions in supply from the "lock-in" effect of existing homeowners in low-rate mortgages).

Note: The months' supply is the ratio of houses for sale to houses sold.

UNEMPLOYMENT RATE vs. DEFAULT RATE

Our annual persistency has historically had a positive correlation with the quarterly average rate on a 30-year fixed rate mortgage, with periods of higher mortgage rates translating to higher persistency.

The default rate for mortgage insurers tends to have a positive correlation with the U.S. unemployment rate, where periods of higher unemployment have typically been associated with periods of rising default rates on MI books.

EssentEDGE® Enables Rapid Execution

of Targeted Pricing Strategies

• Lender utilization continues to increase
• The latest generation of EssentEDGE® is a cloud-basedproprietary credit engine powered by machine learning

techniques that utilizes 400+ attributes to generate an MI quote in ~3 seconds

➢ Differentiated pricing strategy to deliver borrowers our best price

• Buy, Manage & Distribute model mitigates franchise volatility during weak economic cycles, with 94% of IIF subject to reinsurance protection
• As of June 30, 2024, Essent has ceded $8.4 billion of RIF through four quota share treaties to a panel of highly rated third-party reinsurers
• As of June 30, 2024, Essent has access to $1.3 billion in ILN/XOL reinsurance coverage

Strong Operating Results

• Last Twelve Months Operating Cash Flow of $816 million
• Continue to focus on optimizing unit economics
• Credit quality of portfolio remains strong
• Efficient platform enables increased operating leverage and profitability
  Fortifying Balance Sheet and Enhancing Financial Flexibility

• As of June 30, 2024:

1. $5.4 billion in GAAP Equity

• 1. Ample liquidity with $808 million net cash and investments available for sale at the holding companies
• Effective July 1, 2024, an additional $500 million in undrawn capacity with our credit facility
• Debt-to-Capitalof 7.3% at June 30, increasing to 8.5% on July 1 after giving effect to the senior note issuance and term loan repayment

• A lender-focused title and settlement services business with licenses nationwide
• Strategy to first invest in the infrastructure and then penetrate national and regional originators utilizing Essent's strong relationships with key lenders
• Expand product offering to existing relationships, recognizing that title on refinance transactions is typically decided at the lender level

• A title insurance carrier with licenses in 44 states and DC
• Strategy to penetrate non-affiliated agents with an initial focus on high volume key states
• Build production capabilities and specialty value added services to complement the overall offering
• Cultivate and activate agent relationships to underwrite business on our carrier's balance sheet