Q2 2023 Supplement

Three Months Ended June 30,

Six Months Ended June 30,

(In thousands, except per share amounts)

2023

2022

2023

2022

Revenues:

Direct premiums written

$

249,167

$

232,660

$

488,658

$

452,914

Ceded premiums

(39,546)

(22,318)

(73,137)

(42,841)

Net premiums written

209,621

210,342

415,521

410,073

Decrease in unearned premiums

3,608

1,669

8,966

17,268

Net premiums earned

213,229

212,011

424,487

427,341

Net investment income

45,250

29,339

88,486

54,019

Realized investment losses, net

(1,589)

(471)

(2,077)

(7,823)

(Loss) income from other invested assets

(4,852)

1,953

(7,554)

26,658

Other income

8,090

1,577

13,032

8,825

Total revenues

260,128

244,409

516,374

509,020

Losses and expenses:

Provision (benefit) for losses and LAE

1,260

(76,199)

1,080

(183,057)

Other underwriting and operating expenses

42,174

41,898

90,369

82,694

Interest expense

7,394

2,887

14,330

5,113

Total losses and expenses

50,828

(31,414)

105,779

(95,250)

Income before income taxes

209,300

275,823

410,595

604,270

Income tax expense

37,067

44,054

67,535

98,334

Net income

$

172,233

$

231,769

$

343,060

$

505,936

Earnings per share:

Basic

$

1.62

$

2.17

$

3.22

$

4.70

Diluted

1.61

2.16

3.20

4.69

Weighted average shares outstanding:

Basic

106,249

106,921

106,594

107,540

Diluted

107,093

107,283

107,338

107,933

Net income

$

172,233

$

231,769

$

343,060

$

505,936

Other comprehensive income (loss):

Change in unrealized appreciation (depreciation) of investments

(36,098)

(134,268)

22,655

(337,274)

Total other comprehensive income (loss)

(36,098)

(134,268)

22,655

(337,274)

Comprehensive income

$

136,135

$

97,501

$

365,715

$

168,662

Loss ratio

0.6%

(35.9%)

0.3%

(42.8%)

Expense ratio

19.8

19.8

21.3

19.4

Combined ratio

20.4%

(16.2%)

21.5%

(23.5%)

June 30,

December 31,

(In thousands, except per share amounts)

2023

2022

Assets

Investments

Fixed maturities available for sale, at fair value

$

4,438,554

$

4,489,598

Short-term investments available for sale, at fair value

583,540

252,027

Total investments available for sale

5,022,094

4,741,625

Other invested assets

266,559

257,941

Total investments

5,288,653

4,999,566

Cash

68,101

81,240

Accrued investment income

36,099

33,162

Accounts receivable

62,692

57,399

Deferred policy acquisition costs

9,460

9,910

Property and equipment

31,324

19,571

Prepaid federal income tax

446,460

418,460

Other assets

40,526

104,489

Total assets

$

5,983,315

$

5,723,797

Liabilities and Stockholders' Equity

Liabilities

Reserve for losses and LAE

$

216,943

$

216,464

Unearned premium reserve

153,921

162,887

Net deferred tax liability

328,340

356,810

Credit facility borrowings, net of deferred costs

421,392

420,864

Other accrued liabilities

129,367

104,463

Total liabilities

1,249,963

1,261,488

Commitments and contingencies

Stockholders' Equity

Common shares, $0.015 par value:

Authorized - 233,333; issued and outstanding - 106,988 shares in 2023 and 107,683 shares in 2022

1,605

1,615

Additional paid-in capital

1,309,834

1,350,377

Accumulated other comprehensive loss

(360,135)

(382,790)

Retained earnings

3,782,048

3,493,107

Total stockholders' equity

4,733,352

4,462,309

Total liabilities and stockholders' equity

$

5,983,315

$

5,723,797

Retuon average equity (1)

14.9%

19.1%

Exhibit C

Essent Group Ltd. and Subsidiaries

Supplemental Information

Historical Quarterly Data

2023

2022

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

$

195,502

$

196,565

$

192,670

$

194,272

$

198,891

GSE and other risk share

17,727

14,693

14,582

13,662

13,120

Net premiums earned

213,229

211,258

207,252

207,934

212,011

Net investment income

45,250

43,236

37,796

32,594

29,339

Realized investment (losses) gains, net

(1,589)

(488)

(5,524)

175

(471)

(Loss) income from other invested assets

(4,852)

(2,702)

(7,599)

9,617

1,953

Other income (loss) (1)

8,090

4,942

(1,888)

11,447

1,577

Total revenues

260,128

256,246

230,037

261,767

244,409

Losses and expenses:

Provision (benefit) for losses and LAE

1,260

(180)

4,101

4,252

(76,199)

Other underwriting and operating expenses

42,174

48,195

46,895

42,144

41,898

Interest expense

7,394

6,936

6,045

4,450

2,887

Total losses and expenses

50,828

54,951

57,041

50,846

(31,414)

Income before income taxes

209,300

201,295

172,996

210,921

275,823

Income tax expense (2)

37,067

30,468

25,630

32,870

44,054

Net income

$

172,233

$

170,827

$

147,366

$

178,051

$

231,769

Earnings per share:

Basic

$

1.62

$

1.60

$

1.38

$

1.67

$

2.17

Diluted

1.61

1.59

1.37

1.66

2.16

Weighted average shares outstanding:

Basic

106,249

106,943

106,881

106,870

106,921

Diluted

107,093

107,585

107,419

107,337

107,283

Book value per share

$

44.24

$

43.18

$

41.44

$

39.87

$

39.67

Retuon average equity (annualized)

14.7 %

15.0 %

13.5 %

16.6 %

21.8 %

Other Data:

Loss ratio (3)

0.6 %

(0.1)%

2.0 %

2.0 %

(35.9)%

Expense ratio (4)

19.8

22.8

22.6

20.3

19.8

Combined ratio

20.4 %

22.7 %

24.6 %

22.3 %

(16.2)%

Credit Facility

Borrowings outstanding

$

425,000

$

425,000

$

425,000

$

425,000

$

425,000

Undrawn committed capacity

$

400,000

$

400,000

$

400,000

$

400,000

$

400,000

Weighted average interest rate (end of period)

6.87 %

6.52 %

6.02 %

4.39 %

2.92 %

Debt-to-capital

8.24 %

8.38 %

8.70 %

9.01 %

9.05 %

Exhibit C, continued

Essent Group Ltd. and Subsidiaries

Supplemental Information

Historical Quarterly Data

2023

2022

Other Data, continued:

June 30

March 31

December 31

September 30

June 30

($ in thousands)

U.S. Mortgage Insurance Portfolio

Flow:

New insurance written

$

13,498,080

$

12,893,789

$

13,011,432

$

17,112,017

$

20,096,135

New risk written

3,726,513

3,548,015

3,522,726

4,570,699

5,442,115

Bulk:

New insurance written

$

-

$

-

$

-

$

-

$

196

New risk written

-

-

-

-

29

Total:

New insurance written

$

13,498,080

$

12,893,789

$

13,011,432

$

17,112,017

$

20,096,331

New risk written

$

3,726,513

$

3,548,015

$

3,522,726

$

4,570,669

$

5,442,144

Average insurance in force

$

233,484,941

$

228,885,174

$

224,840,675

$

219,280,350

$

210,896,297

Insurance in force (end of period)

$

235,649,884

$

231,537,417

$

227,062,055

$

222,542,569

$

215,896,531

Gross risk in force (end of period) (5)

$

62,403,400

$

60,879,979

$

59,276,489

$

57,743,091

$

55,678,063

Risk in force (end of period)

$

53,290,643

$

51,469,312

$

49,903,626

$

48,690,571

$

47,289,910

Policies in force

821,690

815,751

808,596

800,745

789,652

Weighted average coverage (6)

26.5%

26.3%

26.1%

25.9%

25.8%

Annual persistency

85.8%

84.4%

82.1%

77.9%

73.4%

Loans in default (count)

12,480

12,773

13,433

12,435

12,707

Percentage of loans in default

1.52%

1.57%

1.66%

1.55%

1.61%

U.S. Mortgage Insurance Portfolio premium rate:

Base average premium rate (7)

0.40%

0.40%

0.40%

0.40%

0.41%

Single premium cancellations (8)

-%

-%

-%

0.01%

0.01%

Gross average premium rate

0.40%

0.40%

0.40%

0.41%

0.42%

Ceded premiums

(0.07%)

(0.06%)

(0.06%)

(0.06%)

(0.04%)

Net average premium rate

0.33%

0.34%

0.34%

0.35%

0.38%