Q2 2022 Supplement

Three Months Ended June 30,

Six Months Ended June 30,

(In thousands, except per share amounts)

2022

2021

2022

2021

Revenues:

Direct premiums written

$

232,660

$

228,949

$

452,914

$

464,206

Ceded premiums

(22,318)

(26,662)

(42,841)

(57,558)

Net premiums written

210,342

202,287

410,073

406,648

Decrease in unearned premiums

1,669

15,150

17,268

29,856

Net premiums earned

212,011

217,437

427,341

436,504

Net investment income

29,339

21,743

54,019

43,531

Realized investment (losses) gains, net

(471)

(253)

(7,823)

388

Income from other invested assets

1,953

122

26,658

648

Other income

1,577

4,212

8,825

6,987

Total revenues

244,409

243,261

509,020

488,058

Losses and expenses:

(Benefit) provision for losses and LAE

(76,199)

9,651

(183,057)

41,973

Other underwriting and operating expenses

41,898

41,114

82,694

83,353

Interest expense

2,887

2,073

5,113

4,124

Total losses and expenses

(31,414)

52,838

(95,250)

129,450

Income before income taxes

275,823

190,423

604,270

358,608

Income tax expense

44,054

30,628

98,334

63,165

Net income

$

231,769

$

159,795

$

505,936

$

295,443

Earnings per share:

Basic

$

2.17

$

1.43

$

4.70

$

2.64

Diluted

2.16

1.42

4.69

2.63

Weighted average shares outstanding:

Basic

106,921

112,118

107,540

112,067

Diluted

107,283

112,454

107,933

112,416

Net income

$

231,769

$

159,795

$

505,936

$

295,443

Other comprehensive income (loss):

Change in unrealized appreciation (depreciation) of investments

(134,268)

36,360

(337,274)

(22,843)

Total other comprehensive income (loss)

(134,268)

36,360

(337,274)

(22,843)

Comprehensive income

$

97,501

$

196,155

$

168,662

$

272,600

Loss ratio

(35.9%)

4.4%

(42.8%)

9.6%

Expense ratio

19.8

18.9

19.4

19.1

Combined ratio

(16.2%)

23.3%

(23.5%)

28.7%

June 30,

December 31,

(In thousands, except per share amounts)

2022

2021

Assets

Investments

Fixed maturities available for sale, at fair value

$

4,264,715

$

4,649,800

Short-term investments available for sale, at fair value

355,625

313,087

Total investments available for sale

4,620,340

4,962,887

Other invested assets

217,757

170,472

Total investments

4,838,097

5,133,359

Cash

77,852

81,491

Accrued investment income

26,716

26,546

Accounts receivable

51,281

46,157

Deferred policy acquisition costs

10,809

12,178

Property and equipment

20,569

11,921

Prepaid federal income tax

391,910

360,810

Other assets

103,868

49,712

Total assets

$

5,521,102

$

5,722,174

Liabilities and Stockholders' Equity

Liabilities

Reserve for losses and LAE

$

209,973

$

407,445

Unearned premium reserve

168,117

185,385

Net deferred tax liability

348,374

373,654

Credit facility borrowings, net of deferred costs

420,336

419,823

Other accrued liabilities

102,307

99,753

Total liabilities

1,249,107

1,486,060

Commitments and contingencies

Stockholders' Equity

Common shares, $0.015 par value:

Authorized - 233,333; issued and outstanding - 107,696 shares in 2022 and 109,377 shares in 2021

1,615

1,641

Additional paid-in capital

1,340,650

1,428,952

Accumulated other comprehensive (loss) income

(286,567)

50,707

Retained earnings

3,216,297

2,754,814

Total stockholders' equity

4,271,995

4,236,114

Total liabilities and stockholders' equity

$

5,521,102

$

5,722,174

Retuon average equity (1)

23.8%

16.8%

Exhibit C

Essent Group Ltd. and Subsidiaries

Supplemental Information

Historical Quarterly Data

2022

2021

Selected Income Statement Data

June 30

March 31

December 31

September 30

June 30

(In thousands, except per share amounts)

Revenues:

Net premiums earned:

U.S. Mortgage Insurance Portfolio

$

198,891

$

203,312

$

205,877

$

207,127

$

204,149

GSE and other risk share

13,120

12,018

11,444

11,591

13,288

Net premiums earned

212,011

215,330

217,321

218,718

217,437

Net investment income

29,339

24,680

23,661

21,573

21,743

Realized investment (losses) gains, net

(471)

(7,352)

(191)

221

(253)

Income from other invested assets (1)

1,953

24,705

14,997

40,741

122

Other income (2)

1,577

7,248

1,128

2,283

4,212

Total revenues

244,409

264,611

256,916

283,536

243,261

Losses and expenses:

(Benefit) provision for losses and LAE

(76,199)

(106,858)

(3,433)

(7,483)

9,651

Other underwriting and operating expenses

41,898

40,796

41,232

42,272

41,114

Interest expense

2,887

2,226

2,095

2,063

2,073

Total losses and expenses

(31,414)

(63,836)

39,894

36,852

52,838

Income before income taxes

275,823

328,447

217,022

246,684

190,423

Income tax expense (3)

44,054

54,280

36,035

41,331

30,628

Net income

$

231,769

$

274,167

$

180,987

$

205,353

$

159,795

Earnings per share:

Basic

$

2.17

$

2.53

$

1.65

$

1.85

$

1.43

Diluted

2.16

2.52

1.64

1.84

1.42

Weighted average shares outstanding:

Basic

106,921

108,166

109,550

111,001

112,118

Diluted

107,283

108,590

110,028

111,387

112,454

Book value per share

$

39.67

$

38.98

$

38.73

$

37.58

$

36.32

Retuon average equity (annualized)

21.8%

26.0%

17.2%

19.9%

16.0%

Other Data:

Loss ratio (4)

(35.9%)

(49.6%)

(1.6%)

(3.4%)

4.4%

Expense ratio (5)

19.8

18.9

19.0

19.3

18.9

Combined ratio

(16.2%)

(30.7%)

17.4%

15.9%

23.3%

Credit Facility

Borrowings outstanding

$

425,000

$

425,000

$

425,000

$

325,000

$

325,000

Undrawn committed capacity

$

400,000

$

400,000

$

400,000

$

300,000

$

300,000

Weighted average interest rate (end of period)

2.92%

1.99%

1.79%

2.13%

2.13%

Debt-to-capital

9.05%

9.16%

9.12%

7.23%

7.37%

2022

2021

Other Data, continued:

June 30

March 31

December 31

September 30

June 30

($ in thousands)

New insurance written

$

20,096,135

$

12,841,482

$

16,379,082

$

23,579,884

$

25,004,854

New risk written

5,442,115

3,438,016

4,331,531

6,273,735

6,445,864

New insurance written

$

196

$

-

$

416

$

-

$

-

New risk written

29

-

41

-

-

New insurance written

$

20,096,331

$

12,841,482

$

16,379,498

$

23,579,884

$

25,004,854

New risk written

$

5,442,144

$

3,438,016

$

4,331,572

$

6,273,735

$

6,445,864

Average insurance in force

$

210,896,297

$

206,631,135

$

207,388,906

$

206,732,478

$

199,739,297

Insurance in force (end of period)

$

215,896,531

$

206,842,996

$

207,190,544

$

208,216,549

$

203,559,859

Gross risk in force (end of period) (6)

$

55,678,063

$

52,847,985

$

52,554,246

$

52,457,020

$

50,835,835

Risk in force (end of period)

$

47,289,910

$

45,261,164

$

45,273,383

$

45,074,159

$

42,906,519

Policies in force

789,652

774,002

785,119

798,877

794,743

Weighted average coverage (7)

25.8%

25.5%

25.4%

25.2%

25.0%

Annual persistency

73.4%

69.1%

65.4%

62.2%

58.3%

Loans in default (count)

12,707

14,923

16,963

19,721

23,504

Percentage of loans in default

1.61%

1.93%

2.16%

2.47%

2.96%

U.S. Mortgage Insurance Portfolio premium rate:

Base average premium rate (8)

0.41%

0.41%

0.42%

0.42%

0.43%

Single premium cancellations (9)

0.01%

0.02%

0.03%

0.03%

0.03%

Gross average premium rate

0.42%

0.43%

0.45%

0.45%

0.46%

Ceded premiums

(0.04%)

(0.04%)

(0.05%)

(0.05%)

(0.05%)

Net average premium rate

0.38%

0.39%

0.40%

0.40%

0.41%