Essent Group Ltd Q3 2023 Presentation

Disclaimer

This presentation 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 presentation, 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.

Buy, Manage & Distribute Operating Model

• Differentiated pricing strategy to deliver borrowers our best price

Credit Risk Transfer

Since March 2018, Essent has transferred credit risk to:

• Capital market investors vianine(1) Radnor Re Insurance-Linked Note (ILN) issuances
• Reinsurers viafour Excess of Loss (XOL) reinsurance transactions
• Reinsurers viathree Quota Share (QS) reinsurance programs

As of 9/30/23, 97% of IIF is subject to reinsurance protection

1) As of 9/30/23, we have 6 active ILN deals. Please see herefor the Credit Risk Transfer Update presentation for additional detail.

Essent Re

• Essent Reinsurance Ltd. ("Essent Re") is a Bermuda-based reinsurance company, rated A (Excellent) by A.M. Best and BBB+ by S&P, with $1.7 billion in GAAP equity as of September 30, 2023
• Essent Re primarily focuses on three business lines:
• • Affiliate quota share (QS) to reinsure Essent Guaranty and leverage our Bermuda platform
  • GSE risk share to access a larger mortgage credit universe beyond primary MI
  • Managing General Agent (MGA) to serve reinsurer clients and generate fee income