Essent Group Ltd Q3 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 AM
  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 NIW.
• In September, we closed our 10th mortgage insurance linked note transaction, which provides $363 million of collateralized reinsurance coverage for NIW from July 2023 to July 2024.

Capital Distribution To Shareholders

• In conjunction with our 3Q24 earnings release, we announced Board approval of a quarterly dividend of $0.28 per common share, payable during 4Q24.
• During the third quarter, we repurchased approximately 170 thousand common shares for $9.6 million.

$8.35

$10.33 $12.08

$53.11

$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

Committed To Programmatic Reinsurance

• Buy, Manage & Distribute model mitigates franchise volatility during weak economic cycles, with 96% of IIF subject to reinsurance protection
• As of September 30, 2024, Essent has ceded $8.6 billion of RIF through four quota share treaties to a panel of highly rated third-party reinsurers
• As of September 30, 2024, Essent has access to $1.7 billion in ILN/XOL reinsurance coverage

CREDIT RISK

TRANSFER (CRT)

Strong Operating Results

• Last Twelve Months Operating Cash Flow of $850 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 September 30, 2024:

• $5.6 billion in GAAP Equity
• Ample liquidity with $991 million net cash and investments available for sale at the holding companies
• An additional $500 million in undrawn capacity with our credit facility
• Debt-to-Capitalof 8.1%

• Annualized yield for investments available for sale was 3.8% for 3Q24, up from 3.6% in 3Q23
• New money yield in 3Q24 of ~4.8%
• Other Invested Assets of $295M invested across venture funds, PE and structured funds along with direct investments into several companies

• 99% of the portfolio is investment grade
• 62% of the portfolio has a credit rating of Aaa to Aa