Q3 2022 Supplement

Three Months Ended September 30,

Nine Months Ended September 30,

(In thousands, except per share amounts)

2022

2021

2022

2021

Revenues:

Direct premiums written

$

239,773

$

229,228

$

692,687

$

693,434

Ceded premiums

(30,543)

(26,880)

(73,384)

(84,438)

Net premiums written

209,230

202,348

619,303

608,996

Decrease (increase) in unearned premiums

(1,296)

16,370

15,972

46,226

Net premiums earned

207,934

218,718

635,275

655,222

Net investment income

32,594

21,573

86,613

65,104

Realized investment (losses) gains, net

175

221

(7,648)

609

Income from other invested assets

9,617

40,741

36,275

41,389

Other income

11,447

2,283

20,272

9,270

Total revenues

261,767

283,536

770,787

771,594

Losses and expenses:

(Benefit) provision for losses and LAE

4,252

(7,483)

(178,805)

34,490

Other underwriting and operating expenses

42,144

42,272

124,838

125,625

Interest expense

4,450

2,063

9,563

6,187

Total losses and expenses

50,846

36,852

(44,404)

166,302

Income before income taxes

210,921

246,684

815,191

605,292

Income tax expense

32,870

41,331

131,204

104,496

Net income

$

178,051

$

205,353

$

683,987

$

500,796

Earnings per share:

Basic

$

1.67

$

1.85

$

6.37

$

4.48

Diluted

1.66

1.84

6.35

4.47

Weighted average shares outstanding:

Basic

106,870

111,001

107,314

111,708

Diluted

107,337

111,387

107,732

112,070

Net income

$

178,051

$

205,353

$

683,987

$

500,796

Other comprehensive income (loss):

Change in unrealized appreciation (depreciation) of investments

(137,010)

(36,917)

(474,284)

(59,760)

Total other comprehensive income (loss)

(137,010)

(36,917)

(474,284)

(59,760)

Comprehensive income

$

41,041

$

168,436

$

209,703

$

441,036

Loss ratio

2.0%

(3.4%)

(28.1%)

5.3%

Expense ratio

20.3

19.3

19.7

19.2

Combined ratio

22.3%

15.9%

(8.5%)

24.4%

September 30,

December 31,

(In thousands, except per share amounts)

2022

2021

Assets

Investments

Fixed maturities available for sale, at fair value

$

4,253,705

$

4,649,800

Short-term investments available for sale, at fair value

331,139

313,087

Total investments available for sale

4,584,844

4,962,887

Other invested assets

263,126

170,472

Total investments

4,847,970

5,133,359

Cash

79,467

81,491

Accrued investment income

29,598

26,546

Accounts receivable

59,069

46,157

Deferred policy acquisition costs

10,408

12,178

Property and equipment

19,778

11,921

Prepaid federal income tax

405,910

360,810

Other assets

104,704

49,712

Total assets

$

5,556,904

$

5,722,174

Liabilities and Stockholders' Equity

Liabilities

Reserve for losses and LAE

$

212,494

$

407,445

Unearned premium reserve

169,413

185,385

Net deferred tax liability

340,627

373,654

Credit facility borrowings, net of deferred costs

420,600

419,823

Other accrued liabilities

119,562

99,753

Total liabilities

1,262,696

1,486,060

Commitments and contingencies

Stockholders' Equity

Common shares, $0.015 par value:

Authorized - 233,333; issued and outstanding - 107,697 shares in 2022 and 109,377 shares in 2021

1,615

1,641

Additional paid-in capital

1,345,598

1,428,952

Accumulated other comprehensive (loss) income

(423,577)

50,707

Retained earnings

3,370,572

2,754,814

Total stockholders' equity

4,294,208

4,236,114

Total liabilities and stockholders' equity

$

5,556,904

$

5,722,174

Retuon average equity (1)

21.4%

16.8%

Exhibit C

Essent Group Ltd. and Subsidiaries

Supplemental Information

Historical Quarterly Data

2022

2021

Selected Income Statement Data

September 30

June 30

March 31

December 31

September 30

(In thousands, except per share amounts)

Revenues:

Net premiums earned:

U.S. Mortgage Insurance Portfolio

$

194,272

$

198,891

$

203,312

$

205,877

$

207,127

GSE and other risk share

13,662

13,120

12,018

11,444

11,591

Net premiums earned

207,934

212,011

215,330

217,321

218,718

Net investment income

32,594

29,339

24,680

23,661

21,573

Realized investment (losses) gains, net

175

(471)

(7,352)

(191)

221

Income from other invested assets (1)

9,617

1,953

24,705

14,997

40,741

Other income (2)

11,447

1,577

7,248

1,128

2,283

Total revenues

261,767

244,409

264,611

256,916

283,536

Losses and expenses:

(Benefit) provision for losses and LAE

4,252

(76,199)

(106,858)

(3,433)

(7,483)

Other underwriting and operating expenses

42,144

41,898

40,796

41,232

42,272

Interest expense

4,450

2,887

2,226

2,095

2,063

Total losses and expenses

50,846

(31,414)

(63,836)

39,894

36,852

Income before income taxes

210,921

275,823

328,447

217,022

246,684

Income tax expense (3)

32,870

44,054

54,280

36,035

41,331

Net income

$

178,051

$

231,769

$

274,167

$

180,987

$

205,353

Earnings per share:

Basic

$

1.67

$

2.17

$

2.53

$

1.65

$

1.85

Diluted

1.66

2.16

2.52

1.64

1.84

Weighted average shares outstanding:

Basic

106,870

106,921

108,166

109,550

111,001

Diluted

107,337

107,283

108,590

110,028

111,387

Book value per share

$

39.87

$

39.67

$

38.98

$

38.73

$

37.58

Retuon average equity (annualized)

16.6%

21.8%

26.0%

17.2%

19.9%

Other Data:

Loss ratio (4)

2.0%

(35.9%)

(49.6%)

(1.6%)

(3.4%)

Expense ratio (5)

20.3

19.8

18.9

19.0

19.3

Combined ratio

22.3%

(16.2%)

(30.7%)

17.4%

15.9%

Credit Facility

Borrowings outstanding

$

425,000

$

425,000

$

425,000

$

425,000

$

325,000

Undrawn committed capacity

$

400,000

$

400,000

$

400,000

$

400,000

$

300,000

Weighted average interest rate (end of period)

4.39%

2.92%

1.99%

1.79%

2.13%

Debt-to-capital

9.01%

9.05%

9.16%

9.12%

7.23%

2022

2021

Other Data, continued:

September 30

June 30

March 31

December 31

September 30

($ in thousands)

New insurance written

$

17,112,017

$

20,096,135

$

12,841,482

$

16,379,082

$

23,579,884

New risk written

4,570,699

5,442,115

3,438,016

4,331,531

6,273,735

New insurance written

$

-

$

196

$

-

$

416

$

-

New risk written

-

29

-

41

-

New insurance written

$

17,112,017

$

20,096,331

$

12,841,482

$

16,379,498

$

23,579,884

New risk written

$

4,570,699

$

5,442,144

$

3,438,016

$

4,331,572

$

6,273,735

Average insurance in force

$

219,280,350

$

210,896,297

$

206,631,135

$

207,388,906

$

206,732,478

Insurance in force (end of period)

$

222,542,569

$

215,896,531

$

206,842,996

$

207,190,544

$

208,216,549

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

$

57,743,091

$

55,678,063

$

52,847,985

$

52,554,246

$

52,457,020

Risk in force (end of period)

$

48,690,571

$

47,289,910

$

45,261,164

$

45,273,383

$

45,074,159

Policies in force

800,745

789,652

774,002

785,119

798,877

Weighted average coverage (7)

25.9%

25.8%

25.5%

25.4%

25.2%

Annual persistency

77.9%

73.4%

69.1%

65.4%

62.2%

Loans in default (count)

12,435

12,707

14,923

16,963

19,721

Percentage of loans in default

1.55%

1.61%

1.93%

2.16%

2.47%

U.S. Mortgage Insurance Portfolio premium rate:

Base average premium rate (8)

0.40%

0.41%

0.41%

0.42%

0.42%

Single premium cancellations (9)

0.01%

0.01%

0.02%

0.03%

0.03%

Gross average premium rate

0.41%

0.42%

0.43%

0.45%

0.45%

Ceded premiums

(0.06%)

(0.04%)

(0.04%)

(0.05%)

(0.05%)

Net average premium rate

0.35%

0.38%

0.39%

0.40%

0.40%