Q4 2021 Supplement

Three Months Ended December 31,

Year Ended December 31,

(In thousands, except per share amounts)

2021

2020

2021

2020

Revenues:

Direct premiums written

$

224,972

$

245,437

$

918,406

$

922,851

Ceded premiums

(26,476)

(31,194)

(110,914)

(88,738)

Net premiums written

198,496

214,243

807,492

834,113

Decrease in unearned premiums

18,825

8,096

65,051

28,451

Net premiums earned

217,321

222,339

872,543

862,564

Net investment income

23,661

20,949

88,765

80,087

Realized investment (losses) gains, net

(191)

564

418

2,697

Income (loss) from other invested assets

14,997

2

56,386

(215)

Other income

1,128

3,345

10,398

10,021

Total revenues

256,916

247,199

1,028,510

955,154

Losses and expenses:

(Benefit) provision for losses and LAE

(3,433)

62,073

31,057

301,293

Other underwriting and operating expenses

41,232

36,825

166,857

154,691

Interest expense

2,095

2,149

8,282

9,074

Total losses and expenses

39,894

101,047

206,196

465,058

Income before income taxes

217,022

146,152

822,314

490,096

Income tax expense

36,035

22,550

140,531

77,055

Net income

$

180,987

$

123,602

$

681,783

$

413,041

Earnings per share:

Basic

$

1.65

$

1.10

$

6.13

$

3.89

Diluted

1.64

1.10

6.11

3.88

Weighted average shares outstanding:

Basic

109,550

111,908

111,164

106,098

Diluted

110,028

112,310

111,555

106,376

Net income

$

180,987

$

123,602

$

681,783

$

413,041

Other comprehensive income (loss):

Change in unrealized (depreciation) appreciation of investments

(27,807)

5,840

(87,567)

82,087

Total other comprehensive (loss) income

(27,807)

5,840

(87,567)

82,087

Comprehensive income

$

153,180

$

129,442

$

594,216

$

495,128

Loss ratio

(1.6%)

27.9%

3.6%

34.9%

Expense ratio

19.0

16.6

19.1

17.9

Combined ratio

17.4%

44.5%

22.7%

52.9%

December 31,

December 31,

(In thousands, except per share amounts)

2021

2020

Assets

Investments

Fixed maturities available for sale, at fair value

$

4,649,800

$

3,838,513

Short-term investments available for sale, at fair value

313,087

726,860

Total investments available for sale

4,962,887

4,565,373

Other invested assets

170,472

88,904

Total investments

5,133,359

4,654,277

Cash

81,491

102,830

Accrued investment income

26,546

19,948

Accounts receivable

46,157

50,140

Deferred policy acquisition costs

12,178

17,005

Property and equipment

11,921

15,095

Prepaid federal income tax

360,810

302,636

Other assets

49,712

40,793

Total assets

$

5,722,174

$

5,202,724

Liabilities and Stockholders' Equity

Liabilities

Reserve for losses and LAE

$

407,445

$

374,941

Unearned premium reserve

185,385

250,436

Net deferred tax liability

373,654

305,109

Credit facility borrowings, net of deferred costs

419,823

321,720

Other accrued liabilities

99,753

87,885

Total liabilities

1,486,060

1,340,091

Commitments and contingencies

Stockholders' Equity

Common shares, $0.015 par value:

Authorized - 233,333; issued and outstanding - 109,377 shares in 2021 and 112,423 shares in 2020

1,641

1,686

Additional paid-in capital

1,428,952

1,571,163

Accumulated other comprehensive income

50,707

138,274

Retained earnings

2,754,814

2,151,510

Total stockholders' equity

4,236,114

3,862,633

Total liabilities and stockholders' equity

$

5,722,174

$

5,202,724

Retuon average equity

16.8%

12.1%

Exhibit C

Essent Group Ltd. and Subsidiaries

Supplemental Information

Historical Quarterly Data

2021

2020

Selected Income Statement Data

December 31

September 30

June 30

March 31

December 31

(In thousands, except per share amounts)

Revenues:

Net premiums earned:

U.S. Mortgage Insurance Portfolio

$

205,877

$

207,127

$

204,149

$

207,840

$

208,715

GSE and other risk share

11,444

11,591

13,288

11,227

13,624

Net premiums earned

217,321

218,718

217,437

219,067

222,339

Income from other invested assets (1)

14,997

40,741

122

526

2

Other revenues (2)

24,598

24,077

25,702

25,204

24,858

Total revenues

256,916

283,536

243,261

244,797

247,199

Losses and expenses:

(Benefit) provision for losses and LAE

(3,433)

(7,483)

9,651

32,322

62,073

Other underwriting and operating expenses

41,232

42,272

41,114

42,239

36,825

Interest expense

2,095

2,063

2,073

2,051

2,149

Total losses and expenses

39,894

36,852

52,838

76,612

101,047

Income before income taxes

217,022

246,684

190,423

168,185

146,152

Income tax expense (3)

36,035

41,331

30,628

32,537

22,550

Net income

$

180,987

$

205,353

$

159,795

$

135,648

$

123,602

Earnings per share:

Basic

$

1.65

$

1.85

$

1.43

$

1.21

$

1.10

Diluted

1.64

1.84

1.42

1.21

1.10

Weighted average shares outstanding:

Basic

109,550

111,001

112,118

112,016

111,908

Diluted

110,028

111,387

112,454

112,378

112,310

Book value per share

$

38.73

$

37.58

$

36.32

$

34.75

$

34.36

Retuon average equity (annualized)

17.2%

19.9%

16.0%

13.9%

13.0%

Other Data:

Loss ratio (4)

(1.6%)

(3.4%)

4.4%

14.8%

27.9%

Expense ratio (5)

19.0

19.3

18.9

19.3

16.6

Combined ratio

17.4%

15.9%

23.3%

34.0%

44.5%

Credit Facility

Borrowings outstanding

$

425,000

$

325,000

$

325,000

$

325,000

$

325,000

Undrawn committed capacity

$

400,000

$

300,000

$

300,000

$

300,000

$

300,000

Weighted average interest rate (end of period)

1.79%

2.13%

2.13%

2.13%

2.19%

Debt-to-capital

9.12%

7.23%

7.37%

7.65%

7.76%

Exhibit C, continued

Essent Group Ltd. and Subsidiaries

Supplemental Information

Historical Quarterly Data

2021

2020

Other Data, continued:

December 31

September 30

June 30

March 31

December 31

($ in thousands)

U.S. Mortgage Insurance Portfolio

Flow:

New insurance written

$

16,379,082

$

23,579,884

$

25,004,854

$

19,254,014

$

29,566,820

New risk written

4,331,531

6,273,735

6,445,864

4,616,450

7,051,173

Bulk:

New insurance written

$

416

$

-

$

-

$

-

$

-

New risk written

41

-

-

-

-

Total:

New insurance written

$

16,379,498

$

23,579,884

$

25,004,854

$

19,254,014

$

29,566,820

New risk written

$

4,331,572

$

6,273,735

$

6,445,864

$

4,616,450

$

7,051,173

Average insurance in force

$

207,388,906

$

206,732,478

$

199,739,297

$

197,749,668

$

195,670,925

Insurance in force (end of period)

$

207,190,544

$

208,216,549

$

203,559,859

$

197,091,191

$

198,882,352

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

$

52,554,246

$

52,457,020

$

50,835,835

$

48,951,602

$

49,565,150

Risk in force (end of period)

$

45,273,383

$

45,074,159

$

42,906,519

$

41,135,978

$

41,339,262

Policies in force

785,119

798,877

794,743

785,382

799,893

Weighted average coverage (7)

25.4%

25.2%

25.0%

24.8%

24.9%

Annual persistency

65.4%

62.2%

58.3%

56.1%

60.1%

Loans in default (count)

16,963

19,721

23,504

29,080

31,469

Percentage of loans in default

2.16%

2.47%

2.96%

3.70%

3.93%

U.S. Mortgage Insurance Portfolio premium rate:

Base average premium rate (8)

0.42%

0.42%

0.43%

0.44%

0.44%

Single premium cancellations (9)

0.03%

0.03%

0.03%

0.04%

0.05%

Gross average premium rate

0.45%

0.45%

0.46%

0.48%

0.49%

Ceded premiums

(0.05%)

(0.05%)

(0.05%)

(0.06%)

(0.06%)

Net average premium rate

0.40%

0.40%

0.41%

0.42%

0.43%