Essent Group Ltd. (NYSE: ESNT) today reported net income for the
quarter ended December 31, 2024 of $167.9 million or $1.58 per
diluted share, compared to $175.4 million or $1.64 per diluted
share for the quarter ended December 31, 2023. For the full year
2024, net income was $729.4 million or $6.85 per diluted share,
compared to $696.4 million or $6.50 per diluted share for 2023.
Essent also announced today that its Board of Directors has
declared a quarterly cash dividend of $0.31 per common share. The
dividend is payable on March 24, 2025, to shareholders of record on
March 14, 2025.
“We are pleased with our fourth quarter and full year 2024
financial results, which benefited from favorable credit
performance given the resilience in consumers and housing,” said
Mark A. Casale, Chairman and Chief Executive Officer. “We believe
Essent is well positioned to continue producing strong returns and
growing book value per share. The increased dividend and new share
repurchase authorization demonstrate our confidence in the
stability of Essent’s cash flows and our commitment to a balanced
approach to capital management moving forward.”
Financial Highlights:
- New insurance written for the fourth quarter of 2024 was $12.2
billion, compared to $12.5 billion in the third quarter of 2024 and
$8.8 billion in the fourth quarter of 2023.
- Insurance in force as of December 31, 2024 was $243.6 billion,
compared to $243.0 billion as of September 30, 2024 and $239.1
billion as of December 31, 2023.
- Net investment income for the full year 2024 was $222.1
million, up 19% from 2023.
- U.S. mortgage insurance provision for losses and loss
adjustment expenses was $37.2 million for the fourth quarter of
2024, which included $8 million associated with 2,119 of defaults
we identified as related to Hurricanes Helene and Milton.
- During the first quarter of 2025, Essent entered into two
forward quota share transactions with highly rated third-party
reinsurers. These quota share agreements cover 25% of the risk of
all eligible policies written by Essent Guaranty, Inc. in calendar
years 2025 and 2026.
- During the fourth quarter of 2024 and January of 2025, Essent
repurchased over 2 million common shares for approximately $118
million.
- In February 2025, our Board approved a $500 million share
repurchase authorization that runs through year-end 2026.
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/events-and-presentations/events/default.aspx.
The call may also be accessed by dialing 888-330-2384 inside the
U.S., or 240-789-2701 for international callers, using passcode
9824537 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:
800-770-2030 inside the U.S., or 647-362-9199 for international
callers, passcode 9824537.
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/financials/quarterly-results/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 or the loss of a significant customer; lenders or
investors seeking alternatives to private mortgage insurance; an
increase in the number of loans insured through Federal government
mortgage insurance programs; decline in the volume of low down
payment mortgage originations; uncertainty of loss reserve
estimates; decrease in the length of time our insurance policies
are in force; deteriorating economic conditions; 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, 2023
filed with the Securities and Exchange Commission on February 16,
2024, as subsequently updated through other reports we file with
the Securities and Exchange Commission. 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”) offering
private mortgage insurance, reinsurance, and title insurance and
settlement services to serve the housing finance industry.
Additional information regarding Essent may be found at
www.essentgroup.com.
Source: Essent Group Ltd.
Essent Group Ltd. and
Subsidiaries
Financial Results and
Supplemental Information (Unaudited)
Quarter and Year Ended
December 31, 2024
Exhibit A
Condensed Consolidated Statements of
Comprehensive Income (Unaudited)
Exhibit B
Condensed Consolidated Balance Sheets
(Unaudited)
Exhibit C
Consolidated Historical Quarterly Data
Exhibit D
U.S. Mortgage Insurance Portfolio
Historical Quarterly Data
Exhibit E
New Insurance Written - U.S. Mortgage
Insurance Portfolio
Exhibit F
Insurance in Force and Risk in Force -
U.S. Mortgage Insurance Portfolio
Exhibit G
Other Risk in Force
Exhibit H
U.S. Mortgage Insurance Portfolio Vintage
Data
Exhibit I
U.S. Mortgage Insurance Portfolio
Reinsurance Vintage Data
Exhibit J
U.S. Mortgage Insurance Portfolio
Geographic Data
Exhibit K
Rollforward of Defaults and Reserve for
Losses and LAE
Exhibit L
Detail of Reserves by Default
Delinquency
Exhibit M
Investments Available for Sale
Exhibit N
U.S. Mortgage Insurance Company
Capital
Exhibit O
Ratios and Reconciliation of Non-GAAP
Financial Measures
Exhibit A
Essent Group Ltd. and
Subsidiaries
Condensed Consolidated
Statements of Comprehensive Income (Unaudited)
Three Months Ended December
31,
Year Ended December
31,
(In thousands,
except per share amounts)
2024
2023
2024
2023
Revenues:
Direct premiums written
$
279,008
$
269,255
$
1,098,603
$
1,028,781
Ceded premiums
(39,499
)
(31,068
)
(132,023
)
(134,499
)
Net premiums written
239,509
238,187
966,580
894,282
Decrease in unearned premiums
4,956
7,427
24,302
22,624
Net premiums earned
244,465
245,614
990,882
916,906
Net investment income
56,559
50,581
222,070
186,139
Realized investment gains (losses),
net
(114
)
(4,892
)
(2,350
)
(7,204
)
Income (loss) from other invested
assets
6,889
(421
)
7,375
(11,118
)
Other income
7,228
6,395
24,927
25,036
Total revenues
315,027
297,277
1,242,904
1,109,759
Losses and expenses:
Provision for losses and LAE
40,975
19,640
81,220
31,542
Other underwriting and operating
expenses
70,951
66,723
270,874
225,081
Interest expense
8,151
7,953
35,319
30,137
Total losses and expenses
120,077
94,316
387,413
286,760
Income before income taxes
194,950
202,961
855,491
822,999
Income tax expense
27,050
27,594
126,088
126,613
Net income
$
167,900
$
175,367
$
729,403
$
696,386
Earnings per share:
Basic
$
1.60
$
1.66
$
6.92
$
6.56
Diluted
1.58
1.64
6.85
6.50
Weighted average shares
outstanding:
Basic
104,963
105,733
105,394
106,222
Diluted
106,104
106,823
106,550
107,129
Net income
$
167,900
$
175,367
$
729,403
$
696,386
Other comprehensive income
(loss):
Change in unrealized appreciation
(depreciation) of investments
(113,705
)
155,887
(23,488
)
102,294
Total other comprehensive income
(loss)
(113,705
)
155,887
(23,488
)
102,294
Comprehensive income
$
54,195
$
331,254
$
705,915
$
798,680
Exhibit B
Essent Group Ltd. and
Subsidiaries
Condensed Consolidated Balance
Sheets (Unaudited)
December 31,
December 31,
(In thousands,
except per share amounts)
2024
2023
Assets
Investments
Fixed maturities available for sale, at
fair value
$
5,112,697
$
4,335,008
Short-term investments available for sale,
at fair value
764,024
928,731
Total investments available for sale
5,876,721
5,263,739
Other invested assets
303,900
277,226
Total investments
6,180,621
5,540,965
Cash
131,480
141,787
Accrued investment income
43,732
35,689
Accounts receivable
55,564
63,266
Deferred policy acquisition costs
9,653
9,139
Property and equipment
41,871
41,304
Prepaid federal income tax
489,600
470,646
Goodwill and acquired intangible assets,
net
79,556
72,826
Other assets
79,572
51,051
Total assets
$
7,111,649
$
6,426,673
Liabilities and Stockholders'
Equity
Liabilities
Reserve for losses and LAE
$
328,866
$
260,095
Unearned premium reserve
115,983
140,285
Net deferred tax liability
392,428
362,753
Senior notes due 2029, net of deferred
costs
493,959
—
Credit facility borrowings, net of
deferred costs
—
421,920
Other accrued liabilities
176,755
139,070
Total liabilities
1,507,991
1,324,123
Commitments and contingencies
Stockholders' Equity
Common shares, $0.015 par value:
Authorized - 233,333; issued and
outstanding - 105,015 shares in 2024 and 106,597 shares in 2023
1,575
1,599
Additional paid-in capital
1,214,956
1,299,869
Accumulated other comprehensive income
(loss)
(303,984
)
(280,496
)
Retained earnings
4,691,111
4,081,578
Total stockholders' equity
5,603,658
5,102,550
Total liabilities and stockholders'
equity
$
7,111,649
$
6,426,673
Return on average equity
13.6
%
14.6
%
Exhibit C
Essent Group Ltd. and
Subsidiaries
Supplemental
Information
Consolidated Historical
Quarterly Data
2024
2023
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
$
211,683
$
214,119
$
217,513
$
212,479
$
211,083
GSE and other risk share
16,180
17,130
17,745
17,826
17,166
Title insurance
16,602
17,687
16,633
15,285
17,365
Net premiums earned
244,465
248,936
251,891
245,590
245,614
Net investment income
56,559
57,340
56,086
52,085
50,581
Realized investment gains (losses),
net
(114
)
68
(1,164
)
(1,140
)
(4,892
)
Income (loss) from other invested
assets
6,889
2,820
(419
)
(1,915
)
(421
)
Other income (loss) (1)
7,228
7,414
6,548
3,737
6,395
Total revenues
315,027
316,578
312,942
298,357
297,277
Losses and expenses:
Provision (benefit) for losses and LAE
40,975
30,666
(334
)
9,913
19,640
Other underwriting and operating
expenses
70,951
66,881
66,202
66,840
66,723
Interest expense
8,151
11,457
7,849
7,862
7,953
Total losses and expenses
120,077
109,004
73,717
84,615
94,316
Income before income taxes
194,950
207,574
239,225
213,742
202,961
Income tax expense (2)
27,050
31,399
35,616
32,023
27,594
Net income
$
167,900
$
176,175
$
203,609
$
181,719
$
175,367
Earnings per share:
Basic
$
1.60
$
1.67
$
1.93
$
1.72
$
1.66
Diluted
1.58
1.65
1.91
1.70
1.64
Weighted average shares
outstanding:
Basic
104,963
105,266
105,657
105,697
105,733
Diluted
106,104
106,554
106,778
106,770
106,823
Book value per share
$
53.36
$
53.11
$
50.58
$
48.96
$
47.87
Return on average equity
(annualized)
11.9
%
12.8
%
15.4
%
14.1
%
14.2
%
Senior Debt & Credit
Facility
Borrowings outstanding
$
500,000
$
500,000
$
425,000
$
425,000
$
425,000
Undrawn committed capacity
$
500,000
$
500,000
$
400,000
$
400,000
$
400,000
Weighted average interest rate (end of
period)
6.25
%
6.25
%
7.07
%
7.06
%
7.11
%
Debt-to-capital
8.19
%
8.14
%
7.32
%
7.52
%
7.69
%
(1) Other income includes net
favorable (unfavorable) changes in the fair value of embedded
derivatives associated with certain of our third-party reinsurance
agreements, which for the quarters ended December 31, 2024,
September 30, 2024, June 30, 2024, March 31, 2024, and December 31,
2023 was $204, ($1,173), $732, ($1,902), and $412,
respectively.
(2) Income tax expense for the
quarters ended December 31, 2024, September 30, 2024, June 30,
2024, March 31, 2024 and December 31, 2023 includes $1,591, $475,
$556, ($1,041), and ($1,132), respectively, of discrete tax expense
(benefit) associated with realized and unrealized gains and losses.
Income tax expense for the quarter ended December 31, 2024 also
includes $1,252 of favorable adjustments related to prior year tax
returns. Income tax expense for the quarter ended March 31, 2024
also includes ($616) of excess tax benefits associated with the
vesting of common shares and common share units. Income tax expense
for the quarter ended December 31, 2023 also includes a $2,731 net
benefit associated with the recognition of a deferred tax asset for
unrealized losses on the investment portfolios of Essent Group and
Essent Re upon the enactment of the Bermuda Corporate Income
Tax.
Exhibit D
Essent Group Ltd. and
Subsidiaries
Supplemental
Information
U.S. Mortgage Insurance
Portfolio Historical Quarterly Data
2024
2023
Other Data, continued:
December 31
September 30
June 30
March 31
December 31
($ in
thousands)
U.S. Mortgage Insurance
Portfolio
New insurance written
$
12,220,968
$
12,513,695
$
12,503,125
$
8,323,544
$
8,769,160
New risk written
3,297,296
3,437,465
3,449,623
2,289,508
2,409,340
Average insurance in force
$
243,236,830
$
242,065,632
$
239,538,571
$
238,595,268
$
239,005,961
Insurance in force (end of period)
$
243,645,423
$
242,976,043
$
240,669,165
$
238,477,402
$
239,078,262
Gross risk in force (end of period)
(1)
$
66,613,517
$
66,237,992
$
65,269,064
$
64,247,810
$
64,061,374
Risk in force (end of period)
$
56,477,150
$
55,915,640
$
55,521,538
$
54,686,533
$
54,591,590
Policies in force
813,013
815,507
814,237
815,752
822,012
Weighted average coverage (2)
27.3
%
27.3
%
27.1
%
26.9
%
26.8
%
Annual persistency
85.7
%
86.6
%
86.7
%
86.9
%
86.9
%
Loans in default (count)
18,439
15,906
13,954
13,992
14,819
Percentage of loans in default
2.27
%
1.95
%
1.71
%
1.72
%
1.80
%
U.S. Mortgage Insurance Portfolio
Premium Rate:
Base average premium rate (3)
0.41
%
0.41
%
0.41
%
0.41
%
0.40
%
Single premium cancellations
(4)
—
%
—
%
—
%
—
%
—
%
Gross average premium rate
0.41
%
0.41
%
0.41
%
0.41
%
0.40
%
Ceded premiums
(0.06
%)
(0.06
%)
(0.05
%)
(0.05
%)
(0.05
%)
Net average premium rate
0.35
%
0.35
%
0.36
%
0.36
%
0.35
%
(1) Gross risk in force includes
risk ceded under third-party reinsurance.
(2) Weighted average coverage is
calculated by dividing end of period gross risk in force by end of
period insurance in force.
(3) Base average premium rate is
calculated by dividing annualized base premiums earned by average
insurance in force for the period.
(4) Single premium cancellations is
calculated by dividing annualized premiums on the cancellation of
non-refundable single premium policies by average insurance in
force for the period.
Exhibit E
Essent Group Ltd. and
Subsidiaries
Supplemental
Information
New Insurance Written: U.S.
Mortgage Insurance Portfolio
NIW by Credit Score
Three Months Ended
Year Ended
December 31, 2024
December 31, 2023
December 31, 2024
December 31, 2023
($ in
thousands)
>=760
$
5,754,605
47.1
%
$
3,708,316
42.3
%
$
20,141,961
44.2
%
$
19,181,507
40.2
%
740-759
2,131,356
17.4
1,531,800
17.5
7,848,645
17.2
8,563,621
18.0
720-739
1,640,275
13.4
1,333,537
15.2
6,468,993
14.2
7,644,101
16.0
700-719
1,390,278
11.4
1,256,250
14.3
5,738,325
12.6
7,148,954
15.0
680-699
743,789
6.1
581,913
6.6
3,095,378
6.8
3,606,260
7.6
<=679
560,665
4.6
357,344
4.1
2,268,030
5.0
1,522,409
3.2
Total
$
12,220,968
100.0
%
$
8,769,160
100.0
%
$
45,561,332
100.0
%
$
47,666,852
100.0
%
Weighted average credit score
751
747
748
746
NIW by LTV
Three Months Ended
Year Ended
December 31, 2024
December 31, 2023
December 31, 2024
December 31, 2023
($ in
thousands)
85.00% and below
$
977,154
8.0
%
$
642,636
7.3
%
$
3,227,588
7.1
%
$
3,443,647
7.2
%
85.01% to 90.00%
2,821,683
23.1
1,871,854
21.3
9,392,983
20.6
9,822,916
20.6
90.01% to 95.00%
6,348,777
51.9
4,660,032
53.1
24,357,459
53.5
26,043,728
54.6
95.01% and above
2,073,354
17.0
1,594,638
18.3
8,583,302
18.8
8,356,561
17.6
Total
$
12,220,968
100.0
%
$
8,769,160
100.0
%
$
45,561,332
100.0
%
$
47,666,852
100.0
%
Weighted average LTV
93
%
93
%
93
%
93
%
NIW by Product
Three Months Ended
Year Ended
December 31, 2024
December 31, 2023
December 31, 2024
December 31, 2023
Single Premium policies
1.2
%
2.5
%
1.4
%
3.5
%
Monthly Premium policies
98.8
97.5
98.6
96.5
100.0
%
100.0
%
100.0
%
100.0
%
NIW by Purchase vs.
Refinance
Three Months Ended
Year Ended
December 31, 2024
December 31, 2023
December 31, 2024
December 31, 2023
Purchase
88.3
%
98.7
%
95.0
%
98.8
%
Refinance
11.7
1.3
5.0
1.2
100.0
%
100.0
%
100.0
%
100.0
%
Exhibit F
Essent Group Ltd. and
Subsidiaries
Supplemental
Information
Insurance in Force and Risk in
Force - U.S. Mortgage Insurance Portfolio
Portfolio by Credit
Score
IIF by FICO score
December 31, 2024
September 30, 2024
December 31, 2023
($ in
thousands)
>=760
$
99,221,741
40.7
%
$
98,553,455
40.6
%
$
97,085,244
40.6
%
740-759
42,574,390
17.5
42,377,559
17.4
41,490,720
17.4
720-739
37,953,625
15.6
37,947,254
15.6
37,435,781
15.7
700-719
32,657,660
13.4
32,685,044
13.5
31,932,469
13.4
680-699
19,772,912
8.1
19,890,335
8.2
19,780,944
8.3
<=679
11,465,095
4.7
11,522,396
4.7
11,353,104
4.6
Total
$
243,645,423
100.0
%
$
242,976,043
100.0
%
$
239,078,262
100.0
%
Weighted average credit score
746
746
746
Gross RIF by FICO score
December 31, 2024
September 30, 2024
December 31, 2023
($ in
thousands)
>=760
$
26,860,197
40.3
%
$
26,614,399
40.2
%
$
25,752,549
40.2
%
740-759
11,799,832
17.7
11,715,485
17.7
11,268,607
17.6
720-739
10,512,364
15.8
10,485,311
15.8
10,179,683
15.9
700-719
9,067,640
13.6
9,044,551
13.7
8,687,001
13.6
680-699
5,440,776
8.2
5,451,406
8.2
5,330,894
8.3
<=679
2,932,708
4.4
2,926,840
4.4
2,842,640
4.4
Total
$
66,613,517
100.0
%
$
66,237,992
100.0
%
$
64,061,374
100.0
%
Portfolio by LTV
IIF by LTV
December 31, 2024
September 30, 2024
December 31, 2023
($ in
thousands)
85.00% and below
$
14,738,289
6.0
%
$
15,555,555
6.4
%
$
19,869,776
8.3
%
85.01% to 90.00%
60,636,883
24.9
61,262,960
25.2
62,973,580
26.3
90.01% to 95.00%
127,152,954
52.2
125,919,529
51.8
119,764,184
50.1
95.01% and above
41,117,297
16.9
40,237,999
16.6
36,470,722
15.3
Total
$
243,645,423
100.0
%
$
242,976,043
100.0
%
$
239,078,262
100.0
%
Weighted average LTV
93
%
93
%
93
%
Gross RIF by LTV
December 31, 2024
September 30, 2024
December 31, 2023
($ in
thousands)
85.00% and below
$
1,745,933
2.6
%
$
1,845,584
2.8
%
$
2,364,232
3.7
%
85.01% to 90.00%
14,961,779
22.5
15,120,025
22.8
15,494,172
24.2
90.01% to 95.00%
37,510,076
56.3
37,149,222
56.1
35,260,761
55.0
95.01% and above
12,395,729
18.6
12,123,161
18.3
10,942,209
17.1
Total
$
66,613,517
100.0
%
$
66,237,992
100.0
%
$
64,061,374
100.0
%
Portfolio by Loan Amortization
Period
IIF by Loan Amortization Period
December 31, 2024
September 30, 2024
December 31, 2023
($ in
thousands)
FRM 30 years and higher
$
238,335,608
97.8
%
$
237,628,900
97.8
%
$
232,995,380
97.5
%
FRM 20-25 years
1,133,494
0.5
1,199,947
0.5
1,685,700
0.7
FRM 15 years
1,231,952
0.5
1,191,749
0.5
1,505,759
0.6
ARM 5 years and higher
2,944,369
1.2
2,955,447
1.2
2,891,423
1.2
Total
$
243,645,423
100.0
%
$
242,976,043
100.0
%
$
239,078,262
100.0
%
Exhibit G
Essent Group Ltd. and
Subsidiaries
Supplemental
Information
Other Risk in Force
2024
2023
($ in
thousands)
December 31
September 30
June 30
March 31
December 31
GSE and other risk share (1):
Risk in Force
$
2,240,284
$
2,254,726
$
2,304,885
$
2,307,267
$
2,244,944
Reserve for losses and LAE
$
51
$
37
$
33
$
32
$
29
Weighted average credit score
751
750
750
750
749
Weighted average LTV
82
%
82
%
82
%
82
%
82
%
(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 H
Essent Group Ltd. and
Subsidiaries
Supplemental
Information
U.S. Mortgage Insurance
Portfolio Vintage Data
December 31, 2024
Insurance in Force
Year
Original Insurance
Written ($ in thousands)
Remaining Insurance
in Force ($ in thousands)
% Remaining of Original
Insurance
Number of Policies in
Force
Weighted Average
Coupon
% Purchase
>90% LTV
>95% LTV
FICO < 700
FICO >= 760
Incurred Loss Ratio (Inception
to Date) (1)
Number of Loans in
Default
Percentage of Loans in
Default
2010 - 2014
$
60,668,851
$
975,931
1.6
%
5,373
4.28
%
65.9
%
49.1
%
1.0
%
9.8
%
49.8
%
2.4
%
232
4.32
%
2015
26,193,656
766,918
2.9
4,325
4.29
75.0
57.2
5.6
16.9
41.3
2.1
209
4.83
2016
34,949,319
1,981,674
5.7
11,869
3.97
84.9
74.9
15.3
17.5
40.0
2.0
459
3.87
2017
43,858,322
3,512,218
8.0
21,796
4.31
90.8
82.3
24.6
21.3
36.3
3.1
1,024
4.70
2018
47,508,525
4,579,054
9.6
26,580
4.81
95.1
75.2
27.6
22.1
31.9
4.0
1,280
4.82
2019
63,569,183
10,173,254
16.0
50,262
4.24
89.4
72.3
25.9
19.0
34.9
3.7
1,833
3.65
2020
107,944,065
35,499,947
32.9
142,347
3.21
73.1
64.1
15.0
10.7
45.4
2.8
2,623
1.84
2021
84,218,250
50,162,523
59.6
169,271
3.10
89.9
67.4
17.0
13.8
40.3
6.3
3,857
2.28
2022
63,061,262
51,504,293
81.7
149,358
5.08
98.2
66.3
11.5
12.6
39.6
19.0
3,862
2.59
2023
47,666,852
41,118,618
86.3
116,747
6.63
98.8
73.0
18.8
11.1
38.5
19.7
2,398
2.05
2024
45,561,332
43,370,993
95.2
115,085
6.71
94.9
72.6
19.5
12.0
43.2
12.8
662
0.58
Total
$
625,199,617
$
243,645,423
39.0
813,013
4.89
91.5
69.1
16.9
12.8
40.7
5.0
18,439
2.27
(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 I
Essent Group Ltd. and
Subsidiaries
Supplemental
Information
U.S. Mortgage Insurance
Portfolio Reinsurance Vintage Data
December 31, 2024
($ in
thousands)
Insurance Linked
Notes (1)
Earned Premiums Ceded
Deal Name
Vintage
Remaining Insurance
in Force
Remaining Risk
in Force
Original Reinsurance in
Force
Remaining Reinsurance
in Force
Losses Ceded to Date
Original First Layer
Retention
Remaining First Layer
Retention
Quarter-to- Date
Year-to-Date
Reduction in PMIERs Minimum
Required Assets (3)
Radnor Re 2021-1
Aug. 2020 - Mar. 2021
$
23,839,935
$
6,533,211
$
557,911
$
190,062
$
—
$
278,956
$
277,698
$
1,849
$
8,413
$
138,631
Radnor Re 2021-2
Apr. 2021 - Sep. 2021
29,757,565
8,243,653
439,407
265,134
—
279,415
276,141
3,533
14,485
203,328
Radnor Re 2022-1
Oct. 2021 - Jul. 2022
27,859,437
7,621,952
237,868
175,026
—
303,761
300,105
3,598
15,076
161,024
Radnor Re 2023-1
Aug. 2022 - Jun. 2023
28,058,061
7,690,718
281,462
268,320
—
281,463
280,559
3,583
14,240
254,368
Radnor Re 2024-1
Jul. 2023 - Jul. 2024
29,033,466
8,025,937
363,366
331,415
—
256,495
256,495
4,274
4,747
245,247
Total
$
138,548,464
$
38,115,471
$
1,880,014
$
1,229,957
$
—
$
1,400,090
$
1,390,998
$
16,837
$
56,961
(5)
$
1,002,598
Excess of Loss
Reinsurance (2)
Earned Premiums Ceded
Deal Name
Vintage
Remaining Insurance in
Force
Remaining Risk
in Force
Original Reinsurance in
Force
Remaining Reinsurance
in Force
Losses Ceded to
Date
Original First Layer
Retention
Remaining First Layer
Retention
Quarter-to- Date
Year-to-Date
Reduction in PMIERs Minimum
Required Assets (3)
XOL 2019-1
Jan. 2018 - Dec. 2018
$
4,535,941
$
1,195,244
$
118,650
$
76,144
$
—
$
253,643
$
243,704
$
627
$
2,495
$
—
XOL 2020-1
Jan. 2019 - Aug. 2019
5,760,682
1,522,699
55,102
29,152
—
215,605
211,678
263
1,072
—
XOL 2022-1
Oct. 2021 - Dec. 2022
63,001,325
17,184,107
141,992
141,992
—
507,114
496,864
1,611
6,407
137,827
XOL 2023-1
Jan. 2023 - Dec. 2023
36,841,903
10,211,722
36,627
36,627
—
366,270
366,028
439
1,745
35,212
XOL 2024-1
Jan. 2024 - Dec. 2024
40,244,132
11,048,540
46,537
58,005
—
331,456
331,456
658
1,186
55,795
Total
$
150,383,983
$
41,162,312
$
398,908
$
341,920
$
—
$
1,674,088
$
1,649,730
$
3,598
$
12,905
$
228,834
Quota Share
Reinsurance (2)
Losses Ceded
Ceding Commission
Earned Premiums Ceded
Year
Ceding Percentage
Remaining Insurance
in Force
Remaining Risk
in Force
Remaining Ceded Insurance in
Force
Remaining Ceded Risk in
Force
Quarter-to-Date
Year-to-Date
Quarter-to-Date
Year-to-Date
Quarter-to-Date
Year-to-Date
Reduction in PMIERs Minimum
Required Assets (3)
Sep. 2019 - Dec. 2020
(4)
$
39,765,140
$
10,882,461
$
8,168,806
$
2,206,351
$
422
$
276
$
2,562
$
9,926
$
4,193
$
16,643
$
134,006
Jan. 2022 - Dec. 2022
20%
51,455,224
14,014,676
10,291,045
2,802,935
3,350
6,867
1,810
7,444
6,789
21,010
206,391
Jan. 2023 - Dec. 2023
17.5%
36,735,900
10,185,812
6,428,783
1,782,517
1,933
6,424
1,294
5,340
4,650
17,638
141,321
Jan. 2024 - Dec. 2024
15%
43,113,057
11,817,914
6,466,958
1,772,687
997
1,713
1,133
2,434
3,432
6,947
125,736
Total
$
171,069,321
$
46,900,863
$
31,355,592
$
8,564,490
$
6,702
$
15,280
$
6,799
$
25,144
$
19,064
$
62,238
$
607,454
(1) Reinsurance provided by
unaffiliated special purpose insurers through the issuance of
mortgage insurance-linked notes ("ILNs").
(2) Reinsurance provided by panels
of reinsurers.
(3) Represents the reduction in
Essent Guaranty, Inc.'s Minimum Required Assets based on our
interpretation of the PMIERs.
(4) Reinsurance coverage on 40% of
eligible single premium policies and 20% of all other eligible
policies.
(5) Excludes $81 of benefit in
ceded premium on retired ILNs for the year ended December 31,
2024.
Exhibit J
Essent Group Ltd. and
Subsidiaries
Supplemental
Information
U.S. Mortgage Insurance
Portfolio Geographic Data
IIF by State
December 31, 2024
September 30, 2024
December 31, 2023
CA
12.5
%
12.5
%
13.0
%
FL
11.9
11.8
11.1
TX
11.1
10.9
10.5
CO
4.1
4.1
4.1
AZ
3.8
3.8
3.7
GA
3.7
3.7
3.4
WA
3.4
3.4
3.5
NC
3.0
3.0
2.9
NY
2.6
2.6
2.5
OH
2.6
2.6
2.6
All Others
41.3
41.6
42.7
Total
100.0
%
100.0
%
100.0
%
Gross RIF by State
December 31, 2024
September 30, 2024
December 31, 2023
CA
12.4
%
12.5
%
12.8
%
FL
12.1
12.0
11.4
TX
11.4
11.2
10.9
CO
4.0
4.0
4.0
AZ
3.9
3.9
3.8
GA
3.8
3.8
3.4
WA
3.4
3.4
3.5
NC
3.0
3.0
2.9
OH
2.5
2.6
2.6
MI
2.5
2.5
2.5
All Others
41.0
41.1
42.2
Total
100.0
%
100.0
%
100.0
%
Exhibit K
Essent Group Ltd. and
Subsidiaries
Supplemental
Information
Rollforward of Defaults and
Reserve for Losses and LAE
U.S. Mortgage Insurance
Portfolio
Rollforward of Insured Loans
in Default
Three Months Ended
2024
2023
December 31
September 30
June 30
March 31
December 31
Beginning default inventory
15,906
13,954
13,992
14,819
13,391
Plus: new defaults (A)
11,136
9,984
8,119
8,260
9,007
Less: cures
(8,408
)
(7,819
)
(7,956
)
(8,951
)
(7,418
)
Less: claims paid
(183
)
(182
)
(183
)
(123
)
(148
)
Less: rescissions and denials, net
(12
)
(31
)
(18
)
(13
)
(13
)
Ending default inventory
18,439
15,906
13,954
13,992
14,819
(A) New defaults remaining as of
December 31, 2024
8,538
3,809
2,141
1,158
934
Cumulative cure rate (1)
23
%
62
%
74
%
86
%
90
%
Total amount paid for claims (in
thousands)
$
7,740
$
5,749
$
5,566
$
3,605
$
3,411
Average amount paid per claim (in
thousands)
$
42
$
32
$
30
$
29
$
23
Severity
68
%
58
%
60
%
65
%
54
%
Rollforward of Reserve for
Losses and LAE
Three Months Ended
2024
2023
($ in
thousands)
December 31
September 30
June 30
March 31
December 31
Reserve for losses and LAE at beginning of
period
$
274,926
$
246,107
$
253,565
$
245,402
$
226,617
Less: Reinsurance recoverables
30,867
26,022
26,570
24,005
20,656
Net reserve for losses and LAE at
beginning of period
244,059
220,085
226,995
221,397
205,961
Add provision for losses and LAE occurring
in:
Current year
50,212
51,649
30,653
39,396
38,922
Prior years
(12,976
)
(21,836
)
(31,880
)
(30,062
)
(19,912
)
Incurred losses and LAE during the
period
37,236
29,813
(1,227
)
9,334
19,010
Deduct payments for losses and LAE
occurring in:
Current year
1,569
637
478
1
330
Prior years
6,225
5,202
5,205
3,735
3,244
Loss and LAE payments during the
period
7,794
5,839
5,683
3,736
3,574
Net reserve for losses and LAE at end of
period
273,501
244,059
220,085
226,995
221,397
Plus: Reinsurance recoverables
36,655
30,867
26,022
26,570
24,005
Reserve for losses and LAE at end of
period
$
310,156
$
274,926
$
246,107
$
253,565
$
245,402
(1) The cure rate is calculated by
dividing new defaults remaining as of the reporting date by the
original number of new defaults reported in the quarterly period
and subtracting that percentage from 100%.
Exhibit L
Essent Group Ltd. and
Subsidiaries
Supplemental
Information
Detail of Reserves by Default
Delinquency
U.S. Mortgage Insurance
Portfolio
December 31, 2024
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:
Two payments
6,691
36
%
$
32,672
11
%
$
522,644
6
%
Three payments
3,154
17
26,278
9
250,696
10
Four to eleven payments
6,408
35
122,551
43
515,600
24
Twelve or more payments
2,022
11
93,269
33
153,376
61
Pending claims
164
1
11,174
4
12,478
90
Total case reserves
18,439
100
%
285,944
100
%
$
1,454,794
20
%
IBNR
21,446
LAE
2,766
Total reserves for losses and LAE
$
310,156
Average reserve per default:
Case
$
15.5
Total
$
16.8
Default Rate
2.27
%
December 31, 2023
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:
Two payments
5,041
34
%
$
24,917
11
%
$
361,986
7
%
Three payments
2,247
15
19,690
9
165,433
12
Four to eleven payments
5,421
37
97,424
43
417,876
23
Twelve or more payments
1,984
13
78,540
35
132,257
59
Pending claims
126
1
5,550
2
6,302
88
Total case reserves
14,819
100
%
226,121
100
%
$
1,083,854
21
%
IBNR
16,959
LAE
2,322
Total reserves for losses and LAE
$
245,402
Average reserve per default:
Case
$
15.3
Total
$
16.6
Default Rate
1.80
%
Exhibit M
Essent Group Ltd. and
Subsidiaries
Supplemental
Information
Investments Available for
Sale
Investments Available for Sale
by Asset Class
Asset Class
December 31, 2024
December 31, 2023
($ in
thousands)
Fair Value
Percent
Fair Value
Percent
U.S. Treasury securities
$
547,290
9.3
%
$
996,382
18.9
%
U.S. agency securities
—
—
7,195
0.1
U.S. agency mortgage-backed securities
1,125,436
19.2
821,346
15.6
Municipal debt securities
583,501
9.9
547,258
10.5
Non-U.S. government securities
69,798
1.2
67,447
1.3
Corporate debt securities
1,783,046
30.3
1,297,055
24.6
Residential and commercial mortgage
securities
478,086
8.1
517,940
9.8
Asset-backed securities
631,959
10.8
564,995
10.8
Money market funds
657,605
11.2
444,121
8.4
Total investments available for sale
$
5,876,721
100.0
%
$
5,263,739
100.0
%
Investments Available for Sale
by Credit Rating
Rating (1)
December 31, 2024
December 31, 2023
($ in
thousands)
Fair Value
Percent
Fair Value
Percent
Aaa
$
2,513,014
48.1
%
$
2,561,363
53.2
%
Aa1
101,809
2.0
104,474
2.2
Aa2
301,080
5.8
291,501
6.0
Aa3
271,069
5.2
208,882
4.3
A1
511,076
9.8
377,188
7.8
A2
411,999
7.9
329,423
6.8
A3
463,616
8.8
253,081
5.3
Baa1
218,454
4.2
220,901
4.6
Baa2
198,193
3.8
226,449
4.7
Baa3
151,729
2.9
166,121
3.4
Below Baa3
77,077
1.5
80,235
1.7
Total (2)
$
5,219,116
100.0
%
$
4,819,618
100.0
%
(1) Based on ratings issued by
Moody's, if available. S&P or Fitch rating utilized if Moody's
not available.
(2) Excludes $657,605 and $444,121
of money market funds at December 31, 2024 and December 31, 2023,
respectively.
Investments Available for Sale
by Duration and Book Yield
Effective Duration
December 31, 2024
December 31, 2023
($ in
thousands)
Fair Value
Percent
Fair Value
Percent
< 1 year
$
1,587,022
26.9
%
$
1,892,074
35.9
%
1 to < 2 years
544,630
9.3
371,583
7.1
2 to < 3 years
473,301
8.1
538,775
10.2
3 to < 4 years
445,614
7.6
402,668
7.6
4 to < 5 years
546,414
9.3
376,722
7.2
5 or more years
2,279,740
38.8
1,681,917
32.0
Total investments available for sale
$
5,876,721
100.0
%
$
5,263,739
100.0
%
Pre-tax investment income yield:
Three months ended December 31, 2024
3.66
%
Year ended December 31, 2024
3.74
%
Holding company net cash and investments
available for sale:
($ in
thousands)
As of December 31, 2024
$
1,052,900
As of December 31, 2023
$
693,507
Exhibit N
Essent Group Ltd. and
Subsidiaries
Supplemental
Information
U.S. Mortgage Insurance
Company Capital
2024
2023
December 31
September 30
June 30
March 31
December 31
($ in
thousands)
U.S. Mortgage Insurance
Subsidiaries:
Combined statutory capital (1)
(7)
$
3,594,381
$
3,584,580
$
3,530,462
$
3,453,553
$
3,376,117
Combined net risk in force (2)
(7)
$
35,159,976
$
34,893,957
$
34,812,227
$
34,463,082
$
34,549,500
Risk-to-capital ratios: (3)
Essent Guaranty, Inc.
9.8:1
10.0:1
10.2:1
10.3:1
10.6:1
Essent Guaranty of PA, Inc. (7)
N/A
0.3:1
0.3:1
0.4:1
0.4:1
Combined (4) (7)
N/A
9.7:1
9.9:1
10.0:1
10.2:1
Essent Guaranty, Inc. PMIERs Data
(5):
Available Assets
$
3,612,993
$
3,598,725
$
3,513,609
$
3,464,119
$
3,379,936
Minimum Required Assets
2,029,738
1,903,473
2,052,135
1,999,928
1,985,545
PMIERs excess Available Assets
$
1,583,255
$
1,695,252
$
1,461,474
$
1,464,191
$
1,394,391
PMIERs sufficiency ratio (6)
178
%
189
%
171
%
173
%
170
%
Essent Reinsurance Ltd.:
Stockholder's equity (GAAP basis)
$
1,773,044
$
1,826,901
$
1,793,777
$
1,793,005
$
1,758,665
Net risk in force (2)
$
23,250,018
$
23,003,846
$
22,770,165
$
22,271,316
$
22,043,926
(1) Combined statutory capital
equals the sum of statutory capital of Essent Guaranty, Inc. plus
Essent Guaranty of PA, Inc., prior to December 31, 2024, 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.
(5) Data is based on our
interpretation of the PMIERs as of the dates indicated.
(6) PMIERs sufficiency ratio is
calculated by dividing Available Assets by Minimum Required
Assets.
(7) Essent Guaranty of PA, Inc.
provided reinsurance to Essent Guaranty, Inc. on certain policies
originated prior to April 1, 2019. Effective December 31, 2024,
Essent Guaranty of PA commuted its outstanding risk in force back
to Essent Guaranty and surrendered its insurance license. Combined
statutory capital and combined net risk in force as of December 31,
2024 are for Essent Guaranty only.
Exhibit O
Essent Group Ltd. and
Subsidiaries
Supplemental
Information
Ratios and Reconciliation of
Non-GAAP Financial Measures
2024
2023
December 31
September 30
June 30
March 31
December 31
Loss Ratio (1)
16.6
%
12.2
%
(0.1
)%
4.0
%
7.9
%
Expense Ratio (2)
28.7
%
26.5
%
26.1
%
27.1
%
27.0
%
Combined Ratio
45.3
%
38.7
%
26.0
%
31.1
%
34.9
%
We believe that loss, expense and combined
ratios are important measures of our financial performance. As a
result of the July 1, 2023 acquisitions of Essent Title Insurance
(formerly Agents National Title) and Boston National Title
(collectively "Title"), the consolidated loss, expense and combined
ratios ("Consolidated Ratios") for the three months and year ended
December 31, 2024 lack comparability with historical periods. In
order to provide investors with more comparative information to
historical periods, Essent has prepared the table below to
reconcile the Consolidated Ratios to Consolidated Ratios Excluding
Title, as shown below. Consolidated Ratios Excluding Title are
financial measures that are not calculated under standards or rules
that comprise accounting principles generally accepted in the
United States (GAAP) and are referred to as non-GAAP measures.
Consolidated Ratios Excluding Title are measures used to monitor
our results and should not be viewed as segment results in
accordance with ASC 280 or as a substitute for those measures
determined in accordance with GAAP.
The following table sets forth the
reconciliation of the loss, expense and combined Consolidated
Ratios Excluding Title to the most comparable GAAP amount for the
three months and year ended December 31, 2024, in accordance with
Regulation G:
Three Months Ended
December 31, 2024
Year Ended December 31,
2024
Consolidated
Acquired Title
Consolidated Excluding
Title
Consolidated
Acquired Title
Consolidated Excluding
Title
($ in
thousands)
Revenues:
Net premiums earned
$
244,465
$
16,602
$
227,863
$
990,882
$
66,206
$
924,676
Net investment income
56,559
805
55,754
222,070
3,170
218,900
Realized investment losses, net
(114
)
—
(114
)
(2,350
)
—
(2,350
)
Loss from other invested assets
6,889
—
6,889
7,375
—
7,375
Settlement services (3)
2,954
2,954
—
9,028
9,028
—
Other income
4,274
389
3,885
15,899
1,743
14,156
Total revenues
315,027
20,750
294,277
1,242,904
80,147
1,162,757
Losses and expenses:
Provision (benefit) for losses and LAE
40,975
3,722
37,253
81,220
6,038
75,182
Other underwriting and operating expenses
(4)
62,437
18,162
44,275
233,032
57,727
175,305
Premiums retained by agents (5)
8,514
8,514
—
37,842
37,842
—
Interest expense
8,151
—
8,151
35,319
—
35,319
Total losses and expenses
120,077
30,398
89,679
387,413
101,607
285,806
Loss ratio (1)
16.6
%
19.0
%
16.3
%
8.1
%
8.0
%
8.1
%
Expense ratio (2)
28.7
%
136.4
%
19.4
%
27.1
%
127.0
%
19.0
%
Combined ratio
45.3
%
155.4
%
35.7
%
35.2
%
135.0
%
27.1
%
(1) Loss ratio is calculated by
dividing the provision for losses and LAE by the sum of net
premiums earned and settlement services revenue, if applicable.
(2) Expense ratio is calculated by
dividing the sum of other underwriting and operating expenses and
premiums retained by agents by the sum of net premiums earned and
settlement services revenue, if applicable.
(3) Settlement services revenue is
included in "Other income" within Exhibit A and Exhibit C.
(4) Title expenses reflect only
direct expenses of Title operations and do not include corporate or
centralized support expense allocations.
(5) Premiums retained by agents are
included in "Other underwriting and operating expenses" within
Exhibit A and Exhibit C.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250214763651/en/
Media Contact 610.230.0556 media@essentgroup.com
Investor Relations Contact Philip Stefano Vice President,
Investor Relations 855-809-ESNT ir@essentgroup.com
Essent (NYSE:ESNT)
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Essent (NYSE:ESNT)
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