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November 8, 2019 Newswires No comments

Essent Group Ltd. Reports Third Quarter 2019 Results & Declares Quarterly Dividend

Business Wire

HAMILTON, Bermuda--(BUSINESS WIRE)-- Essent Group Ltd. (NYSE: ESNT) today reported net income for the quarter ended September 30, 2019 of $144.6 million or $1.47 per diluted share, compared to $116.0 million or $1.18 per diluted share for the quarter ended September 30, 2018.

Essent also announced today that its Board of Directors has declared a quarterly cash dividend of $0.15 per common share. The dividend is payable on December 16, 2019, to shareholders of record on December 4, 2019.

“We are pleased with our strong financial results for the third quarter and our continued progress in transitioning our franchise to a buy, manage and distribute model through the utilization of EssentEDGE and reinsurance,” said Mark Casale, Chairman and Chief Executive Officer. “Additionally, our recent financial strength rating upgrade by Moody’s to A3 was a significant achievement for Essent. We believe that this upgrade is further validation of the strength and sustainability that our buy, manage and distribute model provides our franchise.”

Financial Highlights:

Insurance in force as of September 30, 2019 was $161.0 billion, compared to $153.3 billion as of June 30, 2019 and $131.2 billion as of September 30, 2018.

New insurance written for the third quarter was $18.7 billion, compared to $18.0 billion in the second quarter of 2019 and $13.9 billion in the third quarter of 2018.

Net premiums earned for the third quarter were $203.5 million, compared to $188.5 million in the second quarter of 2019 and $166.7 million in the third quarter of 2018.

The expense ratio for the third quarter was 20.4%, compared to 22.0% in the second quarter of 2019 and 22.1% in the third quarter of 2018.

The provision for losses and LAE for the third quarter was $10.0 million, compared to a provision of $5.0 million in the second quarter of 2019 and a provision of $5.5 million in the third quarter of 2018.

The percentage of loans in default as of September 30, 2019 was 0.75%, compared to 0.66% as of June 30, 2019 and 0.61% as of September 30, 2018.

The combined ratio for the third quarter was 25.3%, compared to 24.7% in the second quarter of 2019 and 25.4% in the third quarter of 2018.

The consolidated balance of cash and investments at September 30, 2019 was $3.4 billion, including cash and investment balances at Essent Group Ltd. of $98.2 million.

The combined risk-to-capital ratio of the U.S. mortgage insurance business, which includes statutory capital for both Essent Guaranty, Inc. and Essent Guaranty of PA, Inc., was 13.4:1 as of September 30, 2019.

During the quarter, we entered into our first quota share reinsurance transaction with a panel of third-party reinsurers. With an effective policy date of September 1, 2019 through December 31, 2020, the quota share agreement covers 20% of monthly NIW policies and 40% of single NIW policies written by Essent Guaranty, Inc. The transaction includes a 20% ceding commission and a profit commission of up to 60%.

On October 17, 2019, Moody’s Investors Service (“Moody’s”) upgraded the financial strength rating of Essent Guaranty, Inc. to A3 from Baa1.

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/investors/webcasts-and-presentations/event-calendar/default.aspx. The call may also be accessed by dialing 833-287-0797 inside the U.S., or 647-689-4456 for international callers, using passcode 3197255 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: 800-585-8367 inside the U.S., or 416-621-4642 for international callers, passcode 3197255.

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/investors/financial-information/quarterly-financial-supplements/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; 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; deteriorating economic conditions; 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, 2018 filed with the Securities and Exchange Commission on February 19, 2019. 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, through its wholly-owned subsidiary, Essent Guaranty, Inc., offers private mortgage insurance for single-family mortgage loans in the United States. Essent provides private capital to mitigate mortgage credit risk, allowing lenders to make additional mortgage financing available to prospective homeowners. Headquartered in Radnor, Pennsylvania, Essent Guaranty, Inc. is licensed to write mortgage insurance in all 50 states and the District of Columbia, and is approved by Fannie Mae and Freddie Mac. Essent also offers mortgage-related insurance, reinsurance and advisory services through its Bermuda-based subsidiary, Essent Reinsurance Ltd. Additional information regarding Essent may be found at www.essentgroup.com and www.essent.us.

Source: Essent Group Ltd.



Essent Group Ltd. and Subsidiaries
Financial Results and Supplemental Information (Unaudited)
Quarter Ended September 30, 2019


Exhibit A		Condensed Consolidated Statements of Comprehensive Income (Unaudited)
Exhibit B		Condensed Consolidated Balance Sheets (Unaudited)
Exhibit C		Historical Quarterly Data
Exhibit D		New Insurance Written
Exhibit E		Insurance in Force and Risk in Force
Exhibit F		Other Risk in Force
Exhibit G		Portfolio Vintage Data
Exhibit H		Reinsurance Vintage Data
Exhibit I		Portfolio Geographic Data
Exhibit J		Defaults, Reserve for Losses and LAE, and Claims
Exhibit K		Investments Available for Sale
Exhibit L		Insurance Company Capital

										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)	2019			2018			2019			2018
Revenues:
Net premiums written	$	198,304		$	175,221		$	564,352		$	508,850
Decrease (increase) in unearned premiums	5,169			(8,546		)	5,402			(32,659		)
Net premiums earned	203,473			166,675			569,754			476,191
Net investment income	21,104			16,646			61,565			45,494
Realized investment gains, net	1,153			524			2,396			1,160
Other income	657			1,153			5,090			3,384
Total revenues	226,387			184,998			638,805			526,229

Losses and expenses:
Provision for losses and LAE	9,990			5,452			22,057			12,574
Other underwriting and operating expenses	41,588			36,899			124,138			111,451
Interest expense	2,584			2,500			7,933			7,568
Total losses and expenses	54,162			44,851			154,128			131,593

Income before income taxes	172,225			140,147			484,677			394,636
Income tax expense	27,595			24,136			75,922			55,801
Net income	$	144,630		$	116,011		$	408,755		$	338,835


Earnings per share:
Basic	$	1.48		$	1.19		$	4.18		$	3.48
Diluted	1.47			1.18			4.16			3.46

Weighted average shares outstanding:
Basic	97,822			97,438			97,739			97,388
Diluted	98,257			98,013			98,178			97,944

Net income	$	144,630		$	116,011		$	408,755		$	338,835

Other comprehensive income (loss):
Change in unrealized appreciation (depreciation) of investments	17,367			(8,201		)	91,720			(44,197		)
Total other comprehensive income (loss)	17,367			(8,201		)	91,720			(44,197		)
Comprehensive income	$	161,997		$	107,810		$	500,475		$	294,638


Loss ratio	4.9		%	3.3		%	3.9		%	2.6		%
Expense ratio	20.4			22.1			21.8			23.4
Combined ratio	25.3		%	25.4		%	25.7		%	26.0		%

				Exhibit B

Essent Group Ltd. and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)


	September 30,			December 31,
($ in thousands)	2019			2018
*Assets*
Investments
Fixed maturities available for sale, at fair value	$	2,982,009		$	2,605,666
Short-term investments available for sale, at fair value	252,604			154,400
Total investments available for sale	3,234,613			2,760,066
Other invested assets	75,273			30,952
Total investments	3,309,886			2,791,018
Cash	49,582			64,946
Accrued investment income	18,527			17,627
Accounts receivable	40,221			36,881
Deferred policy acquisition costs	16,003			16,049
Property and equipment	16,792			7,629
Prepaid federal income tax	246,885			202,385
Other assets	24,158			13,436

Total assets	$	3,722,054		$	3,149,971

*Liabilities and Stockholders' Equity*
Liabilities
Reserve for losses and LAE	$	61,436		$	49,464
Unearned premium reserve	290,065			295,467
Net deferred tax liability	236,644			172,642
Credit facility borrowings, net of deferred costs	224,094			223,664
Other accrued liabilities	54,645			43,017
Total liabilities	866,884			784,254

Commitments and contingencies

Stockholders' Equity
Common shares	1,476			1,472
Additional paid-in capital	1,114,586			1,110,800
Accumulated other comprehensive income (loss)	62,727			(28,993		)
Retained earnings	1,676,381			1,282,438
Total stockholders' equity	2,855,170			2,365,717

Total liabilities and stockholders' equity	$	3,722,054		$	3,149,971

Return on average equity (1)	20.9		%	21.7		%

(1) The 2019 return on average equity is calculated by dividing annualized year-to-date 2019 net income by average equity. The 2018 return on average equity is calculated by dividing full year 2018 net income by average equity.

																Exhibit C
Essent Group Ltd. and Subsidiaries
Supplemental Information
Historical Quarterly Data


	2019									2018
Selected Income Statement Data	September 30			June 30			March 31			December 31			September 30			June 30			March 31
(In thousands, except per share amounts)
Revenues:
Net premiums written	$	198,304		$	188,404		$	177,644		$	176,437		$	175,221		$	168,404		$	165,225

Net premiums earned (1)	203,473			188,490			177,791			173,301			166,675			156,958			152,558
Other revenues (2)	22,914			23,402			22,735			19,823			18,323			16,810			14,905
Total revenues	226,387			211,892			200,526			193,124			184,998			173,768			167,463

Losses and expenses:
Provision for losses and LAE (3)	9,990			4,960			7,107			(999		)	5,452			1,813			5,309
Other underwriting and operating expenses	41,588			41,520			41,030			39,449			36,899			36,428			38,124
Interest expense	2,584			2,679			2,670			2,611			2,500			2,618			2,450
Total losses and expenses	54,162			49,159			50,807			41,061			44,851			40,859			45,883

Income before income taxes	172,225			162,733			149,719			152,063			140,147			132,909			121,580
Income tax expense (4)	27,595			26,328			21,999			23,535			24,136			21,154			10,511
Net income	$	144,630		$	136,405		$	127,720		$	128,528		$	116,011		$	111,755		$	111,069

Earnings per share:
Basic	$	1.48		$	1.39		$	1.31		$	1.32		$	1.19		$	1.15		$	1.14
Diluted	1.47			1.39			1.30			1.31			1.18			1.14			1.13

Weighted average shares outstanding:
Basic	97,822			97,798			97,595			97,450			97,438			97,426			97,298
Diluted	98,257			98,170			98,104			98,066			98,013			97,866			97,951

Other Data:
Loss ratio (5)	4.9		%	2.6		%	4.0		%	(0.6		)%	3.3		%	1.2		%	3.5		%
Expense ratio (6)	20.4			22.0			23.1			22.8			22.1			23.2			25.0
Combined ratio	25.3		%	24.7		%	27.1		%	22.2		%	25.4		%	24.4		%	28.5		%

Return on average equity (annualized)	20.8		%	20.9		%	20.9		%	22.4		%	21.5		%	21.8		%	22.6		%

(1) Net premiums earned are net of premiums ceded to third-party reinsurers. Premiums ceded totaled $10,263, $8,428, $6,038, $3,731, $3,158, $3,585 and $294 in the three months ended September 30, 2019, June 30, 2019, March 31, 2019, December 31, 2018, September 30, 2018, June 30, 2018 and March 31, 2018, respectively.

(2) Certain of our third-party reinsurance agreements contain an embedded derivative as the premium ceded under those agreements will vary based on changes in interest rates. Other revenues for the three months ended September 30, 2019, June 30, 2019 and March 31, 2019 include an unfavorable decrease of $760 and favorable increases of $1,160 and $1,424, respectively, in the fair value of these embedded derivatives.

(3) Provision for losses and LAE for the three months ended December 31, 2018 includes a $9,941 reduction associated with previously identified hurricane-related defaults based on the performance to date and our expectations of the amount of ultimate losses on the remaining delinquencies.

(4) Income tax expense for the three months ended March 31, 2019 and 2018 was reduced by $1,956 and $9,549, respectively, of excess tax benefits associated with the vesting of common shares and common share units during each period. Income tax expense for the three months ended September 30, 2018 includes $1,450 of expense associated with accrual to return adjustments associated with the completion of the 2017 U.S. federal income tax return.

(5) Loss ratio is calculated by dividing the provision for losses and LAE by net premiums earned.

(6) Expense ratio is calculated by dividing other underwriting and operating expenses by net premiums earned.

																Exhibit C, continued
Essent Group Ltd. and Subsidiaries
Supplemental Information
Historical Quarterly Data


	2019									2018
Other Data, continued:	September 30			June 30			March 31			December 31			September 30			June 30			March 31
($ in thousands)

U.S. Mortgage Insurance Portfolio
Flow:
New insurance written	$	18,719,876		$	17,973,505		$	10,945,307		$	11,408,542		$	13,913,191		$	12,850,642		$	9,336,150
New risk written	4,695,611			4,485,217			2,713,389			2,838,530			3,430,942			3,201,610			2,295,314

Bulk:
New insurance written	$	6,133		$	29,524		$	55,002		$	—		$	—		$	—		$	—
New risk written	842			2,129			6,542			—			—			—			—

Total:
Average gross premium rate (7)	0.52		%	0.51		%	0.50		%	0.50		%	0.51		%	0.52		%	0.52		%
Average net premium rate (8)	0.49		%	0.49		%	0.48		%	0.49		%	0.50		%	0.51		%	0.52		%
New insurance written	$	18,726,009		$	18,003,029		$	11,000,309		$	11,408,542		$	13,913,191		$	12,850,642		$	9,336,150
New risk written	$	4,696,453		$	4,487,346		$	2,719,931		$	2,838,530		$	3,430,942		$	3,201,610		$	2,295,314
Insurance in force (end of period)	$	160,962,192		$	153,317,157		$	143,181,641		$	137,720,786		$	131,249,957		$	122,501,246		$	115,250,949
Gross risk in force (end of period) (9)	$	40,540,289		$	38,531,090		$	35,925,830		$	34,482,448		$	32,786,194		$	30,579,106		$	28,691,561
Risk in force (end of period)	$	38,784,584		$	37,034,687		$	34,744,417		$	33,892,869		$	32,361,782		$	30,154,694		$	28,267,149
Policies in force	693,085			666,705			629,808			608,135			581,570			546,576			517,215
Weighted average coverage (10)	25.2		%	25.1		%	25.1		%	25.0		%	25.0		%	25.0		%	24.9		%
Annual persistency	82.1		%	84.8		%	85.1		%	84.9		%	84.0		%	83.0		%	83.5		%

Loans in default (count)	5,232			4,405			4,096			4,024			3,538			3,519			4,442
Percentage of loans in default	0.75		%	0.66		%	0.65		%	0.66		%	0.61		%	0.64		%	0.86		%

Other Risk in Force
GSE and other risk share (11)	$	849,184		$	802,530		$	771,175		$	655,384		$	612,750		$	592,493		$	557,692

Credit Facility
Borrowings outstanding	$	225,000		$	225,000		$	225,000		$	225,000		$	225,000		$	225,000		$	265,000
Undrawn committed capacity	$	275,000		$	275,000		$	275,000		$	275,000		$	275,000		$	275,000		$	110,000
Weighted average interest rate (end of period)	4.05		%

(7) Average gross premium rate is calculated by dividing annualized premiums earned for the U.S. mortgage insurance portfolio, before reductions for premiums ceded under third-party reinsurance, by average insurance in force for the period.

(8) Average net premium rate is calculated by dividing annualized net premiums earned for the U.S. mortgage insurance portfolio by average insurance in force for the period.

(9) Gross risk in force includes risk ceded under third-party reinsurance.

(10) Weighted average coverage is calculated by dividing end of period gross risk in force by end of period insurance in force.

(11) GSE and other risk share includes GSE risk share and other reinsurance transactions. 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 D

Essent Group Ltd. and Subsidiaries
Supplemental Information
New Insurance Written: Flow


NIW by Credit Score
	Three Months Ended										Nine Months Ended
	September 30, 2019					September 30, 2018					September 30, 2019					September 30, 2018
($ in thousands)
>=760	$	7,467,620		39.9	%	$	5,873,337		42.2	%	$	19,251,937		40.4	%	$	15,165,595		42.0	%
740-759	3,286,476			17.5		2,349,227			16.9		8,272,424			17.4		6,116,659			17.0
720-739	2,800,181			15.0		1,989,413			14.3		6,938,374			14.6		5,209,892			14.4
700-719	2,202,659			11.8		1,676,184			12.0		5,695,567			11.9		4,365,387			12.1
680-699	1,570,179			8.4		1,097,160			7.9		4,013,107			8.4		2,847,365			7.9
<=679	1,392,761			7.4		927,870			6.7		3,467,279			7.3		2,395,085			6.6
Total	$	18,719,876		100.0	%	$	13,913,191		100.0	%	$	47,638,688		100.0	%	$	36,099,983		100.0	%

Weighted average credit score	744					745					744					745



NIW by LTV
	Three Months Ended										Nine Months Ended
	September 30, 2019					September 30, 2018					September 30, 2019					September 30, 2018
($ in thousands)
85.00% and below	$	2,126,071		11.4	%	$	1,644,226		11.8	%	$	5,789,334		12.2	%	$	4,347,598		12.0	%
85.01% to 90.00%	5,288,027			28.2		3,804,681			27.3		13,089,688			27.5		10,102,450			28.0
90.01% to 95.00%	7,896,661			42.2		5,961,310			42.9		20,081,707			42.1		15,623,886			43.3
95.01% and above	3,409,117			18.2		2,502,974			18.0		8,677,959			18.2		6,026,049			16.7
Total	$	18,719,876		100.0	%	$	13,913,191		100.0	%	$	47,638,688		100.0	%	$	36,099,983		100.0	%

Weighted average LTV	92		%			93		%			92		%			92		%



NIW by Product
	Three Months Ended										Nine Months Ended
	September 30, 2019					September 30, 2018					September 30, 2019					September 30, 2018
Single Premium policies				10.8	%				14.2	%				11.3	%				15.9	%
Monthly Premium policies				89.2					85.8					88.7					84.1
				100.0	%				100.0	%				100.0	%				100.0	%



NIW by Purchase vs. Refinance
	Three Months Ended										Nine Months Ended
	September 30, 2019					September 30, 2018					September 30, 2019					September 30, 2018
Purchase				79.6	%				93.8	%				83.3	%				91.3	%
Refinance				20.4					6.2					16.7					8.7
				100.0	%				100.0	%				100.0	%				100.0	%

														Exhibit E

Essent Group Ltd. and Subsidiaries
Supplemental Information
Insurance in Force and Risk in Force


Portfolio by Credit Score
IIF by FICO score	September 30, 2019					June 30, 2019					September 30, 2018
($ in thousands)
>=760	$	67,408,766		41.9	%	$	64,977,185		42.4	%	$	56,686,270		43.2	%
740-759	27,178,330			16.9		25,747,495			16.8		21,661,445			16.5
720-739	23,459,055			14.6		22,203,764			14.5		18,909,281			14.4
700-719	18,728,884			11.6		17,723,067			11.5		14,928,024			11.4
680-699	13,418,919			8.3		12,697,092			8.3		10,828,068			8.2
<=679	10,768,238			6.7		9,968,554			6.5		8,236,869			6.3
Total	$	160,962,192		100.0	%	$	153,317,157		100.0	%	$	131,249,957		100.0	%

Weighted average credit score	745					746					746

Gross RIF by FICO score	September 30, 2019					June 30, 2019					September 30, 2018
($ in thousands)
>=760	$	16,877,750		41.6	%	$	16,258,608		42.2	%	$	14,119,178		43.1	%
740-759	6,857,369			16.9		6,478,145			16.8		5,434,079			16.6
720-739	5,980,949			14.8		5,643,012			14.6		4,773,174			14.5
700-719	4,743,360			11.7		4,473,871			11.6		3,735,034			11.4
680-699	3,406,811			8.4		3,217,062			8.4		2,718,524			8.3
<=679	2,674,050			6.6		2,460,392			6.4		2,006,205			6.1
Total	$	40,540,289		100.0	%	$	38,531,090		100.0	%	$	32,786,194		100.0	%

Portfolio by LTV
IIF by LTV	September 30, 2019					June 30, 2019					September 30, 2018
($ in thousands)
85.00% and below	$	16,918,870		10.5	%	$	16,525,093		10.8	%	$	14,641,309		11.2	%
85.01% to 90.00%	46,021,398			28.6		44,234,770			28.9		39,598,332			30.2
90.01% to 95.00%	75,528,177			46.9		72,549,888			47.3		63,167,371			48.1
95.01% and above	22,493,747			14.0		20,007,406			13.0		13,842,945			10.5
Total	$	160,962,192		100.0	%	$	153,317,157		100.0	%	$	131,249,957		100.0	%

Weighted average LTV	92		%			92		%			92		%

Gross RIF by LTV	September 30, 2019					June 30, 2019					September 30, 2018
($ in thousands)
85.00% and below	$	1,953,058		4.8	%	$	1,907,272		5.0	%	$	1,680,050		5.1	%
85.01% to 90.00%	11,065,886			27.3		10,625,848			27.6		9,458,067			28.8
90.01% to 95.00%	21,633,852			53.4		20,784,261			53.9		18,090,207			55.2
95.01% and above	5,887,493			14.5		5,213,709			13.5		3,557,870			10.9
Total	$	40,540,289		100.0	%	$	38,531,090		100.0	%	$	32,786,194		100.0	%

Portfolio by Loan Amortization Period
IIF by Loan Amortization Period	September 30, 2019					June 30, 2019					September 30, 2018
($ in thousands)
FRM 30 years and higher	$	151,594,009		94.2	%	$	143,827,908		93.8	%	$	121,455,115		92.6	%
FRM 20-25 years	2,872,964			1.8		2,901,947			1.9		3,032,593			2.3
FRM 15 years	3,367,326			2.1		3,391,072			2.2		3,571,994			2.7
ARM 5 years and higher	3,127,893			1.9		3,196,230			2.1		3,190,255			2.4
Total	$	160,962,192		100.0	%	$	153,317,157		100.0	%	$	131,249,957		100.0	%

							Exhibit F

Essent Group Ltd. and Subsidiaries
Supplemental Information
Other Risk in Force


($ in thousands)	September 30, 2019			June 30, 2019			September 30, 2018

GSE and other risk share (1)	$	849,184		$	802,530		$	612,750

Weighted average credit score	746			748			749
Weighted average LTV	85		%	85		%	85		%

(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 G

Essent Group Ltd. and Subsidiaries
Supplemental Information
Portfolio Vintage Data
September 30, 2019


								Insurance in Force
Year	Original Insurance Written ($ in thousands)		Remaining Insurance in Force ($ in thousands)		% Remaining of Original Insurance		Number of Policies in Force	% Purchase		>90% LTV		>95% LTV		FICO < 700		FICO >= 760		% FRM		Incurred Loss Ratio (Inception to Date) (1)		Number of Loans in Default

2010	$	245,898	$	4,333	1.8	%	33	62.6	%	47.5	%	0.0	%	2.1	%	65.5	%	100.0	%	2.6	%	1
2011	3,229,720		171,131		5.3		995	70.0		60.5		0.3		6.2		52.7		97.9		3.7		22
2012	11,241,161		1,263,110		11.2		6,766	72.7		71.3		0.8		4.9		57.1		99.1		2.2		77
2013	21,152,638		3,816,366		18.0		20,424	79.5		65.7		2.3		7.8		51.3		98.8		2.3		234
2014	24,799,434		6,568,565		26.5		35,884	89.5		67.0		4.8		15.8		41.1		97.1		3.1		547
2015	26,193,656		10,836,143		41.4		52,727	84.8		59.7		2.7		14.7		43.8		98.1		2.8		659
2016	34,949,319		20,690,611		59.2		93,378	83.5		58.5		7.0		13.5		45.5		98.6		3.1		937
2017	43,858,322		32,393,422		73.9		145,745	87.4		60.0		14.3		15.7		41.9		97.2		4.1		1,500
2018	47,508,525		39,296,715		82.7		165,805	92.1		61.7		18.2		15.2		40.5		97.9		5.5		1,090
2019 (through September 30)	47,729,347		45,921,796		96.2		171,328	83.2		60.7		18.6		15.9		39.8		98.6		2.8		165
Total	$	260,908,020	$	160,962,192	61.7		693,085	86.4		60.9		14.0		15.0		41.9		98.1		3.2		5,232

(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 H

Essent Group Ltd. and Subsidiaries
Supplemental Information
Reinsurance Vintage Data (1)
September 30, 2019


($ in thousands)					Original Reinsurance in Force								Remaining Reinsurance in Force
Year	Remaining Insurance in Force		Remaining Risk in Force		ILN			Other Reinsurance			Total		ILN		Other Reinsurance		Total		Losses Ceded to Date		Original First Layer Retention		Remaining First Layer Retention		Quarter-to-Date Premiums Ceded		Year-to Date Premiums Ceded
2015 & 2016	$	28,837,920	$	7,792,455	$	333,844	(2)	$	—		$	333,844	$	310,282	$	—	$	310,282	$	—	$	208,111	$	208,111	$	2,213	$	2,553
2017	31,405,043		7,900,590		424,412		(3)	165,167		(4)	589,579		368,705		165,167		533,872		—		224,689		223,323		3,576		10,999
2018	38,517,421		9,680,628		473,184		(5)	118,650		(6)	591,834		473,184		118,650		591,834		—		253,643		253,521		4,354		11,057
Total	$	98,760,384	$	25,373,673	$	1,231,440		$	283,817		$	1,515,257	$	1,152,171	$	283,817	$	1,435,988	$	—	$	686,443	$	684,955	$	10,143	$	24,609


(1) Excludes quota share reinsurance provided by a panel of reinsurers effective September 1, 2019 (the "QSR Agreement"). RIF ceded under the QSR Agreement was $320 million as of September 30, 2019.
(2) Reinsurance provided by Radnor Re 2019-2 Ltd., through its issuance of mortgage insurance-linked notes ("ILNs"), effective June 2019.
(3) Reinsurance provided by Radnor Re 2018-1 Ltd., through its issuance of ILNs, effective March 2018.
(4) Reinsurance provided by a panel of reinsurers effective November 2018. Coverage provided immediately above the coverage provided by Radnor Re 2018-1 Ltd.
(5) Reinsurance provided by Radnor Re 2019-1 Ltd., through its issuance of ILNs, effective February 2019.
(6) Reinsurance provided by a panel of reinsurers effective February 2019. Coverage provided pari-passu to the coverage provided by Radnor Re 2019-1 Ltd.

					Exhibit I

Essent Group Ltd. and Subsidiaries
Supplemental Information
Portfolio Geographic Data


IIF by State
	September 30, 2019		June 30, 2019		September 30, 2018
CA	9.8	%	9.6	%	9.1	%
TX	8.3		8.0		7.9
FL	7.7		7.5		7.3
WA	4.5		4.6		4.8
IL	3.7		3.8		3.9
CO	3.6		3.6		3.3
NJ	3.6		3.7		3.8
OH	3.4		3.4		3.3
NC	3.3		3.4		3.5
GA	3.3		3.4		3.4
All Others	48.8		49.0		49.7
Total	100.0	%	100.0	%	100.0	%



Gross RIF by State
	September 30, 2019		June 30, 2019		September 30, 2018
CA	9.6	%	9.4	%	8.9	%
TX	8.6		8.3		8.1
FL	7.9		7.6		7.4
WA	4.5		4.6		4.8
IL	3.6		3.7		3.8
NJ	3.6		3.6		3.7
CO	3.5		3.5		3.3
OH	3.4		3.4		3.3
GA	3.3		3.4		3.5
NC	3.3		3.4		3.5
All Others	48.7		49.1		49.7
Total	100.0	%	100.0	%	100.0	%

										Exhibit J

Essent Group Ltd. and Subsidiaries
Supplemental Information
Defaults, Reserve for Losses and LAE, and Claims


Rollforward of Insured Loans in Default
	Three Months Ended						Nine Months Ended
	September 30,			September 30,			September 30,			September 30,
	2019			2018			2019			2018
Beginning default inventory	4,405			3,519			4,024			4,783
Plus: new defaults	3,711			2,285			9,478			5,980
Less: cures	(2,776		)	(2,201		)	(7,958		)	(7,043		)
Less: claims paid	(103		)	(64		)	(297		)	(179		)
Less: rescissions and denials, net	(5		)	(1		)	(15		)	(3		)
Ending default inventory	5,232			3,538			5,232			3,538



Rollforward of Reserve for Losses and LAE
	Three Months Ended						Nine Months Ended
	September 30,			September 30,			September 30,			September 30,
($ in thousands)	2019			2018			2019			2018
Reserve for losses and LAE at beginning of period	$	55,138		$	50,016		$	49,464		$	46,850
Add provision for losses and LAE occurring in:
Current year	14,722			8,671			37,904			25,199
Prior years	(4,732		)	(3,219		)	(15,847		)	(12,625		)
Incurred losses and LAE during the period	9,990			5,452			22,057			12,574
Deduct payments for losses and LAE occurring in:
Current year	412			409			657			620
Prior years	3,280			1,704			9,428			5,449
Loss and LAE payments during the period	3,692			2,113			10,085			6,069
Reserve for losses and LAE at end of period	$	61,436		$	53,355		$	61,436		$	53,355



Claims
	Three Months Ended						Nine Months Ended
	September 30,			September 30,			September 30,			September 30,
	2019			2018			2019			2018
Number of claims paid	103			64			297			179
Total amount paid for claims (in thousands)	$	3,584		$	2,029		$	9,691		$	5,848
Average amount paid per claim (in thousands)	$	35		$	32		$	33		$	33
Severity	71		%	69		%	73		%	70		%

								Exhibit J, continued
Essent Group Ltd. and Subsidiaries
Supplemental Information
Defaults, Reserve for Losses and LAE, and Claims
U.S. Mortgage Insurance Portfolio


	September 30, 2019
	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	3,071	59	%	$	15,212	27	%	$	162,459	9	%
Four to eleven payments	1,665	32		24,588		44		89,965		27
Twelve or more payments	416	8		12,600		22		24,503		51
Pending claims	80	1		3,723		7		4,227		88
Total case reserves (1)	5,232	100	%	56,123		100	%	$	281,154	20
IBNR				4,209
LAE				1,014
Total reserves for losses and LAE (1)				$	61,346

Average reserve per default:
Case				$	10.7
Total				$	11.7

Default Rate	0.75%

(1) The U.S. Mortgage Insurance Portfolio reserves exclude reserves on GSE and other risk share risk in force at Essent Re of $90.

	December 31, 2018
	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	2,254	56	%	$	12,005	27	%	$	119,666	10	%
Four to eleven payments	1,350	33		20,031		44		72,222		28
Twelve or more payments	357	9		10,523		23		20,419		52
Pending claims	63	2		2,749		6		3,182		86
Total case reserves	4,024	100	%	45,308		100	%	$	215,489	21
IBNR				3,398
LAE				758
Total reserves for losses and LAE				$	49,464

Average reserve per default:
Case				$	11.3
Total				$	12.3

Default Rate	0.66%

	September 30, 2018
	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	1,886	53	%	$	10,498	22	%	$	101,755	10	%
Four to eleven payments	1,252	36		24,531		50		68,670		36
Twelve or more payments	351	10		11,795		24		20,160		59
Pending claims	49	1		1,941		4		2,212		88
Total case reserves	3,538	100	%	48,765		100	%	$	192,797	25
IBNR				3,657
LAE				933
Total reserves for losses and LAE				$	53,355

Average reserve per default:
Case				$	13.8
Total				$	15.1

Default Rate	0.61%

								Exhibit K

Essent Group Ltd. and Subsidiaries
Supplemental Information
Investments Available for Sale


Investments Available for Sale by Asset Class
Asset Class	September 30, 2019					December 31, 2018
($ in thousands)	Fair Value			Percent		Fair Value		Percent
U.S. Treasury securities	$	271,359		8.4	%	$	289,892	10.5	%
U.S. agency securities	33,544			1.0		32,997		1.2
U.S. agency mortgage-backed securities	829,748			25.7		637,178		23.1
Municipal debt securities	364,140			11.3		483,879		17.5
Non-U.S. government securities	49,935			1.5		45,001		1.6
Corporate debt securities	824,632			25.5		725,201		26.3
Residential and commercial mortgage securities	283,790			8.8		121,838		4.4
Asset-backed securities	324,861			10.0		284,997		10.3
Money market funds	252,604			7.8		139,083		5.1
Total investments available for sale	$	3,234,613		100.0	%	$	2,760,066	100.0	%

Investments Available for Sale by Credit Rating
Rating (1)	September 30, 2019					December 31, 2018
($ in thousands)	Fair Value			Percent		Fair Value		Percent
Aaa	$	1,749,369		54.1	%	$	1,362,781	49.4	%
Aa1	105,705			3.3		124,435		4.5
Aa2	147,510			4.6		196,218		7.1
Aa3	168,089			5.2		143,315		5.2
A1	203,054			6.3		222,073		8.0
A2	192,752			5.9		199,238		7.2
A3	170,128			5.3		146,300		5.3
Baa1	195,789			6.0		162,695		5.9
Baa2	168,371			5.2		140,168		5.1
Baa3	72,529			2.2		26,805		1.0
Below Baa3	61,317			1.9		36,038		1.3
Total investments available for sale	$	3,234,613		100.0	%	$	2,760,066	100.0	%

(1) Based on ratings issued by Moody's, if available. S&P or Fitch rating utilized if Moody's not available.

Investments Available for Sale by Duration and Book Yield
Effective Duration	September 30, 2019					December 31, 2018
($ in thousands)	Fair Value			Percent		Fair Value		Percent
< 1 Year	$	862,760		26.7	%	$	529,545	19.2	%
1 to < 2 Years	367,167			11.3		285,060		10.3
2 to < 3 Years	276,459			8.5		251,763		9.1
3 to < 4 Years	385,312			11.9		278,804		10.1
4 to < 5 Years	370,529			11.5		429,005		15.6
5 or more Years	972,386			30.1		985,889		35.7
Total investments available for sale	$	3,234,613		100.0	%	$	2,760,066	100.0	%

Pre-tax investment income yield:
Three months ended September 30, 2019	2.81		%
Nine months ended September 30, 2019	2.83		%

Net cash and investments at holding company, Essent Group Ltd.:
($ in thousands)
As of September 30, 2019	$	98,155
As of December 31, 2018	$	78,405

			Exhibit L

Essent Group Ltd. and Subsidiaries
Supplemental Information
Insurance Company Capital


	September 30, 2019		December 31, 2018
($ in thousands)
U.S. Mortgage Insurance Subsidiaries:
Combined statutory capital (1)	$	2,212,341	$	1,886,929

Combined net risk in force (2)	$	29,622,379	$	26,233,783

Risk-to-capital ratios: (3)
Essent Guaranty, Inc.	13.9:1		14.4:1
Essent Guaranty of PA, Inc.	3.3:1		4.2:1
Combined (4)	13.4:1		13.9:1

Essent Reinsurance Ltd.:
Stockholder's equity (GAAP basis)	$	908,203	$	798,612

Net risk in force (2)	$	9,950,967	$	8,265,763

(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.