Essent Group Ltd. Announces Fourth Quarter & Full Year 2022 Results and Increases Quarterly Dividend

February 10, 2023 at 06:30 AM EST

Essent Group Ltd. (NYSE: ESNT) today reported net income for the quarter ended December 31, 2022 of $147.4 million or $1.37 per diluted share, compared to $181.0 million or $1.64 per diluted share for the quarter ended December 31, 2021. For the full year 2022, net income was $831.4 million or $7.72 per diluted share, compared to $681.8 million or $6.11 per diluted share for 2021.

Essent also announced today that its Board of Directors has declared a quarterly cash dividend of $0.25 per common share. The dividend is payable on March 20, 2023, to shareholders of record on March 10, 2023.

“We are pleased with our fourth quarter and full year 2022 financial results, which reflect our continued focus on generating high-quality earnings and solid returns,” said Mark A. Casale, Chairman and Chief Executive Officer. “Our results reflect our focus on optimizing unit economics along with continued favorable credit performance. We remain committed to taking a measured approach to capital management. In connection with this, we are pleased to announce that our Board has approved an increase in our quarterly dividend to $0.25 per share.”

Financial Highlights:

New insurance written for the fourth quarter of 2022 was $13.0 billion, compared to $17.1 billion in the third quarter of 2022 and $16.4 billion in the fourth quarter of 2021.
Insurance in force as of December 31, 2022 was $227.1 billion, compared to $222.5 billion as of September 30, 2022 and $207.2 billion as of December 31, 2021.
The combined ratio for the fourth quarter was 24.6%, compared to 22.3% in the third quarter of 2022 and 17.4% in the fourth quarter of 2021.
During the fourth quarter of 2022, we entered into a quota share reinsurance transaction with a panel of highly rated third-party reinsurers. The quota share agreement covers 17.5% of all eligible policies written by Essent Guaranty, Inc. in the calendar year 2023.
Last week, Essent US Holdings entered into an agreement to acquire the title insurance operations from a subsidiary of Finance of America Companies for $100 million.

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: the impact of COVID-19 and related economic conditions; 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; lenders or investors seeking alternatives to private mortgage insurance; deteriorating economic conditions (including inflation, rising interest rates and other adverse economic trends); an increase in the number of loans insured through Federal government mortgage insurance programs, including those offered by the Federal Housing Administration; decline in new insurance written and franchise value due to loss of a significant customer; decline in the volume of low down payment mortgage originations; the definition of "Qualified Mortgage" reducing the size of the mortgage origination market or creating incentives to use government mortgage insurance programs; the definition of "Qualified Residential Mortgage" reducing the number of low down payment loans or lenders and investors seeking alternatives to private mortgage insurance; the implementation of the Basel III Capital Accord discouraging the use of private mortgage insurance; a decrease in the length of time that insurance policies are in force; uncertainty of loss reserve estimates; our non-U.S. operations becoming subject to U.S. Federal income taxation; becoming considered a passive foreign investment company for U.S. Federal income tax purposes; 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, 2021 filed with the Securities and Exchange Commission on February 16, 2022, 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”) which, through its wholly-owned subsidiary, Essent Guaranty, Inc., offers private mortgage insurance for single-family mortgage loans in the United States. Essent provides private capital to mitigate mortgage credit risk, allowing lenders to make additional mortgage financing available to prospective homeowners. Headquartered in Radnor, Pennsylvania, Essent Guaranty, Inc. is licensed to write mortgage insurance in all 50 states and the District of Columbia, and is approved by Fannie Mae and Freddie Mac. Essent also offers mortgage-related insurance, reinsurance and advisory services through its Bermuda-based subsidiary, Essent Reinsurance Ltd. Essent is committed to supporting environmental, social and governance (“ESG”) initiatives that are relevant to the company and align with the companywide dedication to responsible corporate citizenship that positively impacts the community and people served. Additional information regarding Essent may be found at www.essentgroup.com and www.essent.us.

Source: Essent Group Ltd.



Essent Group Ltd. and Subsidiaries
Financial Results and Supplemental Information (Unaudited)
Quarter and Year Ended December 31, 2022


Exhibit A		Condensed Consolidated Statements of Comprehensive Income (Unaudited)
Exhibit B		Condensed Consolidated Balance Sheets (Unaudited)
Exhibit C		Historical Quarterly Data
Exhibit D		New Insurance Written
Exhibit E		Insurance in Force and Risk in Force
Exhibit F		Other Risk in Force
Exhibit G		Portfolio Vintage Data
Exhibit H		Reinsurance Vintage Data
Exhibit I		Portfolio Geographic Data
Exhibit J		Rollforward of Defaults and Reserve for Losses and LAE
Exhibit K		Detail of Reserves by Default Delinquency
Exhibit L		Investments Available for Sale
Exhibit M		Insurance Company Capital


										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)	2022			2021			2022			2021
Revenues:
Direct premiums written	$	235,015		$	224,972		$	927,702		$	918,406
Ceded premiums		(34,289	)		(26,476	)		(107,673	)		(110,914	)
Net premiums written		200,726			198,496			820,029			807,492
Decrease in unearned premiums		6,526			18,825			22,498			65,051
Net premiums earned		207,252			217,321			842,527			872,543
Net investment income		37,796			23,661			124,409			88,765
Realized investment (losses) gains, net		(5,524	)		(191	)		(13,172	)		418
Income (loss) from other invested assets		(7,599	)		14,997			28,676			56,386
Other income		(1,888	)		1,128			18,384			10,398
Total revenues		230,037			256,916			1,000,824			1,028,510

Losses and expenses:
(Benefit) provision for losses and LAE		4,101			(3,433	)		(174,704	)		31,057
Other underwriting and operating expenses		46,895			41,232			171,733			166,857
Interest expense		6,045			2,095			15,608			8,282
Total losses and expenses		57,041			39,894			12,637			206,196

Income before income taxes		172,996			217,022			988,187			822,314
Income tax expense		25,630			36,035			156,834			140,531
Net income	$	147,366		$	180,987		$	831,353		$	681,783


Earnings per share:
Basic	$	1.38		$	1.65		$	7.75		$	6.13
Diluted		1.37			1.64			7.72			6.11

Weighted average shares outstanding:
Basic		106,881			109,550			107,205			111,164
Diluted		107,419			110,028			107,653			111,555

Net income	$	147,366		$	180,987		$	831,353		$	681,783

Other comprehensive (loss) income:
Change in unrealized (depreciation) appreciation of investments		40,787			(27,807	)		(433,497	)		(87,567	)
Total other comprehensive (loss) income		40,787			(27,807	)		(433,497	)		(87,567	)
Comprehensive income	$	188,153		$	153,180		$	397,856		$	594,216


Loss ratio		2.0	%		(1.6	%)		(20.7	%)		3.6	%
Expense ratio		22.6			19.0			20.4			19.1
Combined ratio		24.6	%		17.4	%		(0.4	%)		22.7	%


				Exhibit B

Essent Group Ltd. and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)


	December 31,			December 31,
(In thousands, except per share amounts)	2022			2021
*Assets*
Investments
Fixed maturities available for sale, at fair value	$	4,489,598		$	4,649,800
Short-term investments available for sale, at fair value		252,027			313,087
Total investments available for sale		4,741,625			4,962,887
Other invested assets		257,941			170,472
Total investments		4,999,566			5,133,359
Cash		81,240			81,491
Accrued investment income		33,162			26,546
Accounts receivable		57,399			46,157
Deferred policy acquisition costs		9,910			12,178
Property and equipment		19,571			11,921
Prepaid federal income tax		418,460			360,810
Other assets		104,489			49,712

Total assets	$	5,723,797		$	5,722,174

*Liabilities and Stockholders' Equity*
Liabilities
Reserve for losses and LAE	$	216,464		$	407,445
Unearned premium reserve		162,887			185,385
Net deferred tax liability		356,810			373,654
Credit facility borrowings, net of deferred costs		420,864			419,823
Other accrued liabilities		104,463			99,753
Total liabilities		1,261,488			1,486,060

Commitments and contingencies

Stockholders' Equity
Common shares, $0.015 par value:
Authorized - 233,333; issued and outstanding - 107,683 shares in 2022 and 109,377 shares in 2021		1,615			1,641
Additional paid-in capital		1,350,377			1,428,952
Accumulated other comprehensive income (loss)		(382,790	)		50,707
Retained earnings		3,493,107			2,754,814
Total stockholders' equity		4,462,309			4,236,114

Total liabilities and stockholders' equity	$	5,723,797		$	5,722,174

Return on average equity		19.1	%		16.8	%


													Exhibit C
Essent Group Ltd. and Subsidiaries
Supplemental Information
Historical Quarterly Data

	2022												2021
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	$	192,670		$	194,272		$	198,891		$	203,312		$	205,877
GSE and other risk share		14,582			13,662			13,120			12,018			11,444
Net premiums earned		207,252			207,934			212,011			215,330			217,321
Net investment income		37,796			32,594			29,339			24,680			23,661
Realized investment (losses) gains, net		(5,524	)		175			(471	)		(7,352	)		(191	)
Income (loss) from other invested assets		(7,599	)		9,617			1,953			24,705			14,997
Other income (loss) (1)		(1,888	)		11,447			1,577			7,248			1,128
Total revenues		230,037			261,767			244,409			264,611			256,916

Losses and expenses:
(Benefit) provision for losses and LAE		4,101			4,252			(76,199	)		(106,858	)		(3,433	)
Other underwriting and operating expenses		46,895			42,144			41,898			40,796			41,232
Interest expense		6,045			4,450			2,887			2,226			2,095
Total losses and expenses		57,041			50,846			(31,414	)		(63,836	)		39,894

Income before income taxes		172,996			210,921			275,823			328,447			217,022
Income tax expense (2)		25,630			32,870			44,054			54,280			36,035
Net income	$	147,366		$	178,051		$	231,769		$	274,167		$	180,987

Earnings per share:
Basic	$	1.38		$	1.67		$	2.17		$	2.53		$	1.65
Diluted		1.37			1.66			2.16			2.52			1.64

Weighted average shares outstanding:
Basic		106,881			106,870			106,921			108,166			109,550
Diluted		107,419			107,337			107,283			108,590			110,028

Book value per share	$	41.44		$	39.87		$	39.67		$	38.98		$	38.73
Return on average equity (annualized)		13.5	%		16.6	%		21.8	%		26.0	%		17.2	%

Other Data:
Loss ratio (3)		2.0	%		2.0	%		(35.9	%)		(49.6	%)		(1.6	%)
Expense ratio (4)		22.6			20.3			19.8			18.9			19.0
Combined ratio		24.6	%		22.3	%		(16.2	%)		(30.7	%)		17.4	%

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)		6.02	%		4.39	%		2.92	%		1.99	%		1.79	%
Debt-to-capital		8.70	%		9.01	%		9.05	%		9.16	%		9.12	%

(1) For each of the three month periods noted, Other income includes net favorable (unfavorable) changes in the fair value of embedded derivatives associated with certain of our third-party reinsurance agreements as follows: December 31, 2022: ($6,515); September 30, 2022: $5,177; June 30, 2022: ($5,549); March 31, 2022: $4,365; December 31, 2021: ($2,931).
(2) Income tax expense for the quarter ended December 31, 2021 includes $2,473 of discrete tax expense associated with an increase in the estimate of our beginning of the year deferred state income tax liability. Income tax expense for the quarters ended December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022 and December 31, 2021 includes ($4,122), $2,925, ($299), $7,002 and $1,759, respectively, of discrete tax (benefit) expense associated with realized and unrealized gains and losses.
(3) Loss ratio is calculated by dividing the provision for losses and LAE by net premiums earned.
(4) Expense ratio is calculated by dividing other underwriting and operating expenses by net premiums earned.


										Exhibit C, continued
Essent Group Ltd. and Subsidiaries
Supplemental Information
Historical Quarterly Data


	2022												2021
Other Data, continued:	December 31			September 30			June 30			March 31			December 31
($ in thousands)

U.S. Mortgage Insurance Portfolio
Flow:
New insurance written	$	13,011,432		$	17,112,017		$	20,096,135		$	12,841,482		$	16,379,082
New risk written		3,522,726			4,570,699			5,442,115			3,438,016			4,331,531

Bulk:
New insurance written	$	—		$	—		$	196		$	—		$	416
New risk written		—			—			29			—			41

Total:
New insurance written	$	13,011,432		$	17,112,017		$	20,096,331		$	12,841,482		$	16,379,498
New risk written	$	3,522,726		$	4,570,669		$	5,442,144		$	3,438,016		$	4,331,572

Average insurance in force	$	224,840,675		$	219,280,350		$	210,896,297		$	206,631,135		$	207,388,906
Insurance in force (end of period)	$	227,062,055		$	222,542,569		$	215,896,531		$	206,842,996		$	207,190,544
Gross risk in force (end of period) (5)	$	59,276,489		$	57,743,091		$	55,678,063		$	52,847,985		$	52,554,246
Risk in force (end of period)	$	49,903,626		$	48,690,571		$	47,289,910		$	45,261,164		$	45,273,383
Policies in force		808,596			800,745			789,652			774,002			785,119
Weighted average coverage (6)		26.1	%		25.9	%		25.8	%		25.5	%		25.4	%
Annual persistency		82.1	%		77.9	%		73.4	%		69.1	%		65.4	%

Loans in default (count)		13,433			12,435			12,707			14,923			16,963
Percentage of loans in default		1.66	%		1.55	%		1.61	%		1.93	%		2.16	%

U.S. Mortgage Insurance Portfolio premium rate:
Base average premium rate (7)		0.40	%		0.40	%		0.41	%		0.41	%		0.42	%
Single premium cancellations (8)		—	%		0.01	%		0.01	%		0.02	%		0.03	%
Gross average premium rate		0.40	%		0.41	%		0.42	%		0.43	%		0.45	%
Ceded premiums		(0.06	%)		(0.06	%)		(0.04	%)		(0.04	%)		(0.05	%)
Net average premium rate		0.34	%		0.35	%		0.38	%		0.39	%		0.40	%


(5) Gross risk in force includes risk ceded under third-party reinsurance.
(6) Weighted average coverage is calculated by dividing end of period gross risk in force by end of period insurance in force.
(7) Base average premium rate is calculated by dividing annualized base premiums earned by average insurance in force for the period.
(8) 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 D

Essent Group Ltd. and Subsidiaries
Supplemental Information
New Insurance Written: Flow


NIW by Credit Score
	Three Months Ended										Year Ended
	December 31, 2022					December 31, 2021					December 31, 2022					December 31, 2021
($ in thousands)
>=760	$	4,761,917		36.6	%	$	6,643,740		40.6	%	$	25,704,025		40.8	%	$	34,422,627		40.9	%
740-759		2,428,164		18.7			2,833,379		17.3			10,927,903		17.3			13,691,394		16.3
720-739		2,301,392		17.7			2,472,738		15.1			10,186,558		16.2			12,789,715		15.2
700-719		1,919,146		14.6			2,170,829		13.2			8,371,867		13.2			11,499,406		13.6
680-699		1,138,743		8.8			1,504,268		9.2			5,548,687		8.8			7,359,569		8.7
<=679		462,070		3.6			754,128		4.6			2,322,026		3.7			4,455,123		5.3
Total	$	13,011,432		100.0	%	$	16,379,082		100.0	%	$	63,061,066		100.0	%	$	84,217,834		100.0	%

Weighted average credit score		744					745					746					745



NIW by LTV
	Three Months Ended										Year Ended
	December 31, 2022					December 31, 2021					December 31, 2022					December 31, 2021
($ in thousands)
85.00% and below	$	1,121,853		8.6	%	$	1,799,336		11.0	%	$	5,678,058		9.0	%	$	11,460,273		13.6	%
85.01% to 90.00%		3,075,304		23.6			4,372,552		26.7			16,732,649		26.5			23,565,227		28.0
90.01% to 95.00%		7,464,333		57.4			7,722,842		47.1			33,925,998		53.8			37,813,167		44.9
95.01% and above		1,349,942		10.4			2,484,352		15.2			6,724,361		10.7			11,379,167		13.5
Total	$	13,011,432		100.0	%	$	16,379,082		100.0	%	$	63,061,066		100.0	%	$	84,217,834		100.0	%

Weighted average LTV		93	%				92	%				93	%				92	%



NIW by Product
	Three Months Ended										Year Ended
	December 31, 2022					December 31, 2021					December 31, 2022					December 31, 2021
Single Premium policies				4.3	%				2.7	%				5.6	%				3.8	%
Monthly Premium policies				95.7					97.3					94.4					96.2
				100.0	%				100.0	%				100.0	%				100.0	%



NIW by Purchase vs. Refinance
	Three Months Ended										Year Ended
	December 31, 2022					December 31, 2021					December 31, 2022					December 31, 2021
Purchase				98.9	%				92.1	%				97.6	%				82.1	%
Refinance				1.1					7.9					2.4					17.9
				100.0	%				100.0	%				100.0	%				100.0	%


														Exhibit E

Essent Group Ltd. and Subsidiaries
Supplemental Information
Insurance in Force and Risk in Force


Portfolio by Credit Score
IIF by FICO score	December 31, 2022					September 30, 2022					December 31, 2021
($ in thousands)
>=760	$	93,389,066		41.1	%	$	92,309,692		41.5	%	$	85,501,113		41.3	%
740-759		38,842,311		17.2			37,821,201		17.0			35,111,019		17.0
720-739		34,981,632		15.4			33,910,646		15.2			31,158,325		15.0
700-719		29,146,543		12.8			28,263,518		12.7			26,105,790		12.6
680-699		18,859,824		8.3			18,351,570		8.2			16,819,629		8.1
<=679		11,842,679		5.2			11,885,942		5.4			12,494,668		6.0
Total	$	227,062,055		100.0	%	$	222,542,569		100.0	%	$	207,190,544		100.0	%

Weighted average credit score		746					746					745

Gross RIF by FICO score	December 31, 2022					September 30, 2022					December 31, 2021
($ in thousands)
>=760	$	24,152,726		40.8	%	$	23,743,335		41.1	%	$	21,488,011		40.9	%
740-759		10,255,195		17.3			9,920,331		17.2			8,992,181		17.1
720-739		9,276,750		15.6			8,934,327		15.5			8,029,952		15.3
700-719		7,696,965		13.0			7,412,542		12.8			6,693,045		12.7
680-699		4,963,470		8.4			4,801,986		8.3			4,299,245		8.2
<=679		2,931,383		4.9			2,930,570		5.1			3,051,812		5.8
Total	$	59,276,489		100.0	%	$	57,743,091		100.0	%	$	52,554,246		100.0	%

Portfolio by LTV
IIF by LTV	December 31, 2022					September 30, 2022					December 31, 2021
($ in thousands)
85.00% and below	$	24,454,468		10.8	%	$	25,121,995		11.3	%	$	27,362,267		13.2	%
85.01% to 90.00%		63,436,445		27.8			62,963,331		28.3			59,567,378		28.7
90.01% to 95.00%		107,932,064		47.6			103,794,020		46.6			91,350,909		44.1
95.01% and above		31,239,078		13.8			30,663,223		13.8			28,909,990		14.0
Total	$	227,062,055		100.0	%	$	222,542,569		100.0	%	$	207,190,544		100.0	%

Weighted average LTV		92	%				92	%				92	%

Gross RIF by LTV	December 31, 2022					September 30, 2022					December 31, 2021
($ in thousands)
85.00% and below	$	2,903,877		4.9	%	$	2,975,898		5.2	%	$	3,200,124		6.1	%
85.01% to 90.00%		15,477,031		26.1			15,317,449		26.5			14,366,450		27.3
90.01% to 95.00%		31,642,669		53.4			30,388,328		52.6			26,592,162		50.6
95.01% and above		9,252,912		15.6			9,061,416		15.7			8,395,510		16.0
Total	$	59,276,489		100.0	%	$	57,743,091		100.0	%	$	52,554,246		100.0	%

Portfolio by Loan Amortization Period
IIF by Loan Amortization Period	December 31, 2022					September 30, 2022					December 31, 2021
($ in thousands)
FRM 30 years and higher	$	219,416,408		96.7	%	$	214,688,363		96.5	%	$	198,243,758		95.7	%
FRM 20-25 years		2,601,108		1.1			2,859,734		1.3			3,658,366		1.8
FRM 15 years		2,552,931		1.1			2,903,355		1.3			3,996,684		1.9
ARM 5 years and higher		2,491,608		1.1			2,091,117		0.9			1,291,736		0.6
Total	$	227,062,055		100.0	%	$	222,542,569		100.0	%	$	207,190,544		100.0	%


													Exhibit F

Essent Group Ltd. and Subsidiaries
Supplemental Information
Other Risk in Force

	2022												2021
($ in thousands)	December 31			September 30			June 30			March 31			December 31
GSE and other risk share (1):
Risk in Force	$	2,030,571		$	2,026,895		$	1,898,364		$	1,888,437		$	1,788,918
Reserve for losses and LAE	$	74		$	102		$	144		$	254		$	1,349

Weighted average credit score		749			748			748			748			748
Weighted average LTV		83	%		84	%		84	%		84	%		84	%

(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 G

Essent Group Ltd. and Subsidiaries
Supplemental Information
Portfolio Vintage Data
December 31, 2022


									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	$	2,121,713	3.5	%		13,410	4.33	%	77.6	%	69.1	%	5.9	%	15.1	%	43.1	%	2.6	%	523	3.90	%
2015		26,193,656		1,917,056	7.3			11,486	4.18		85.5		76.1		4.3		17.6		39.3		2.7		425	3.70
2016		34,949,319		4,241,287	12.1			24,006	3.87		88.6		72.2		10.3		15.8		43.1		2.8		758	3.16
2017		43,858,322		5,953,785	13.6			34,592	4.26		91.1		68.9		19.9		20.1		38.2		4.0		1,432	4.14
2018		47,508,525		6,714,277	14.1			36,913	4.78		94.4		69.0		24.9		21.5		32.9		5.3		1,748	4.74
2019		63,569,183		14,742,465	23.2			68,798	4.22		87.3		66.7		23.8		18.7		35.7		5.8		2,158	3.14
2020		107,944,065		59,228,334	54.9			220,705	3.18		65.8		54.0		12.1		10.8		45.5		4.4		2,856	1.29
2021		84,218,250		71,533,600	84.9			228,943	3.07		84.4		60.6		14.6		13.9		40.4		7.9		2,750	1.20
2022		63,061,262		60,609,538	96.1			169,743	5.07		97.7		64.8		10.9		12.6		40.0		14.4		783	0.46
Total	$	531,971,433	$	227,062,055	42.7			808,596	3.83		83.8		61.3		13.8		13.5		41.1		4.3		13,433	1.66

(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 H
Essent Group Ltd. and Subsidiaries
Supplemental Information
Reinsurance Vintage Data
December 31, 2022
($ in thousands)
Excess of Loss Reinsurance					Original Reinsurance in Force						Remaining Reinsurance in Force													Earned Premiums Ceded
Year	Remaining Insurance in Force		Remaining Risk in Force		ILN (1)		Other Reinsurance (2)		Total		ILN		Other Reinsurance		Total		Losses Ceded to Date		Original First Layer Retention		Remaining First Layer Retention			Quarter-to- Date		Year-to- Date		Reduction in PMIERs Minimum Required Assets (9)
2015 & 2016	$	5,931,479	$	1,610,997	$	333,844	$	—	$	333,844	$	41,764	$	—	$	41,764	$	—	$	208,111	$	206,843		$	389	$	2,852	$	—
2017		5,810,456		1,527,469		424,412		165,167		589,579		225,562		85,627		311,189		—		224,689		216,143			2,429		11,060		—
2018		6,620,816		1,708,129		473,184		118,650		591,834		325,537		76,144		401,681		—		253,643		248,675			3,873		14,425		—
2019 (3)		8,185,651		2,108,121		495,889		55,102		550,991		418,006		46,448		464,454		—		215,605		214,708			3,233		12,751		—
2019 & 2020 (4)		—		—		399,159		—		399,159		—		—		—		—		465,690		—			—		5,222		—
2020 & 2021 (5)		40,676,403		10,206,068		557,911		—		557,911		451,093		—		451,093		—		278,956		278,919			3,498		14,528		376,024
2021 (6)		41,455,845		11,027,751		439,407		—		439,407		410,778		—		410,778		—		279,415		279,400			4,250		17,080		368,047
2021 & 2022 (10)		75,406,975		20,284,551		—		141,992		141,992		—		141,992		141,992		—		507,114		507,114			1,610		3,295		138,300
2021 & 2022 (11)		33,815,842		9,079,729		237,868		—		237,868		237,868		—		237,868		—		303,761		303,761			4,563		5,131		218,839
Total	$	217,903,467	$	57,552,815	$	3,361,674	$	480,911	$	3,842,585	$	2,110,608	$	350,211	$	2,460,819	$	—	$	2,736,984	$	2,028,750	(12)	$	23,845	$	86,344	$	1,101,210


Quota Share Reinsurance
											Losses Ceded						Ceding Commission				Earned Premiums Ceded
Year			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 (9)
2019 & 2020	(7	)	$	65,434,808	$	16,603,792	$	14,520,550	$	3,645,733	$	(703	)	$	(14,360	)	$	3,099	$	13,580	$	5,031	$	10,763	$	220,812
2022	(8	)		60,546,185		16,331,557		12,109,237		3,266,311		2,089			3,087			1,749		3,936		5,413		10,566		228,185
Total			$	125,980,993	$	32,935,349	$	26,629,787	$	6,912,044	$	1,386		$	(11,273	)	$	4,848	$	17,516	$	10,444	$	21,329	$	448,997


(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) Reinsurance coverage on new insurance written from January 1, 2019 through August 31, 2019.
(4) Reinsurance coverage on new insurance written from September 1, 2019 through July 31, 2020. This ILN was called during the third quarter of 2022.
(5) Reinsurance coverage on new insurance written from August 1, 2020 through March 31, 2021.
(6) Reinsurance coverage on new insurance written from April 1, 2021 through September 30, 2021.
(7) Reinsurance coverage on 40% of eligible single premium policies and 20% of all other eligible policies written from September 1, 2019 through December 31, 2020.
(8) Reinsurance coverage on 20% of all eligible policies written from January 1, 2022 through December 31, 2022.
(9) Represents the reduction in Essent Guaranty, Inc.'s Minimum Required Assets based on our interpretation of the PMIERs.
(10) Reinsurance coverage on 20% of all eligible policies written from October 1, 2021 through December 31, 2022.
(11) Reinsurance coverage on new insurance written from October 1, 2021 through July 31, 2022.
(12) The total remaining first layer retention differs from the sum of the individual reinsurance transactions as a result of overlapping coverage between certain transactions.


					Exhibit I

Essent Group Ltd. and Subsidiaries
Supplemental Information
Portfolio Geographic Data


IIF by State
	December 31, 2022		September 30, 2022		December 31, 2021
CA	13.2	%	13.2	%	13.1	%
TX	10.4		10.3		9.9
FL	10.2		10.1		9.7
CO	4.2		4.1		4.1
AZ	3.5		3.5		3.3
WA	3.4		3.4		3.7
GA	3.2		3.1		3.1
IL	3.1		3.1		3.3
VA	3.0		3.1		3.1
NJ	3.0		3.0		3.1
All Others	42.8		43.1		43.6
Total	100.0	%	100.0	%	100.0	%



Gross RIF by State
	December 31, 2022		September 30, 2022		December 31, 2021
CA	13.0	%	13.0	%	13.0	%
TX	10.7		10.6		10.2
FL	10.5		10.5		10.0
CO	4.1		4.1		4.0
AZ	3.6		3.5		3.3
WA	3.3		3.3		3.6
GA	3.2		3.2		3.1
IL	3.0		3.1		3.2
VA	3.0		3.0		3.0
NJ	2.9		2.9		3.0
All Others	42.7		42.8		43.6
Total	100.0	%	100.0	%	100.0	%


													Exhibit J

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
	2022												2021
	December 31			September 30			June 30			March 31			December 31
Beginning default inventory		12,435			12,707			14,923			16,963			19,721
Plus: new defaults (A)		7,505			6,448			5,495			6,188			5,809
Less: cures		(6,425	)		(6,642	)		(7,639	)		(8,167	)		(8,514	)
Less: claims paid		(73	)		(68	)		(65	)		(55	)		(47	)
Less: rescissions and denials, net		(9	)		(10	)		(7	)		(6	)		(6	)
Ending default inventory		13,433			12,435			12,707			14,923			16,963

(A) New defaults remaining as of December 31, 2022		5,744			2,541			1,489			981			514
Cure rate (1)		23	%		61	%		73	%		84	%		91	%

Total amount paid for claims (in thousands)	$	1,441		$	1,261		$	1,137		$	826		$	992
Average amount paid per claim (in thousands)	$	20		$	19		$	17		$	15		$	21
Severity		46	%		47	%		50	%		35	%		45	%

Rollforward of Reserve for Losses and LAE
	Three Months Ended
	2022												2021
($ in thousands)	December 31			September 30			June 30			March 31			December 31
Reserve for losses and LAE at beginning of period	$	212,392		$	209,829		$	292,818		$	406,096		$	411,567
Less: Reinsurance recoverables		13,244			13,657			19,335			25,940			26,970
Net reserve for losses and LAE at beginning of period		199,148			196,172			273,483			380,156			384,597
Add provision for losses and LAE occurring in:
Current period		36,141			20,144			18,720			24,346			13,231
Prior years		(32,012	)		(15,850	)		(94,809	)		(130,114	)		(16,624	)
Incurred losses and LAE during the period		4,129			4,294			(76,089	)		(105,768	)		(3,393	)
Deduct payments for losses and LAE occurring in:
Current period		113			30			80			1			157
Prior years		1,392			1,288			1,142			904			891
Loss and LAE payments during the period		1,505			1,318			1,222			905			1,048
Net reserve for losses and LAE at end of period		201,772			199,148			196,172			273,483			380,156
Plus: Reinsurance recoverables		14,618			13,244			13,657			19,335			25,940
Reserve for losses and LAE at end of period	$	216,390		$	212,392		$	209,829		$	292,818		$	406,096



(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 K
Essent Group Ltd. and Subsidiaries
Supplemental Information
Detail of Reserves by Default Delinquency
U.S. Mortgage Insurance Portfolio

	December 31, 2022
	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:
Three payments or less	6,154		46	%	$	32,242	16	%	$	411,624	8	%
Four to eleven payments	4,684		35			65,071	33			317,417	21
Twelve or more payments	2,474		18			98,291	49			147,247	67
Pending claims	121		1			3,815	2			4,860	78
Total case reserves	13,433		100	%		199,419	100	%	$	881,148	23
IBNR						14,956
LAE						2,015
Total reserves for losses and LAE					$	216,390

Average reserve per default:
Case					$	14.8
Total					$	16.1

Default Rate	1.66	%


	December 31, 2021
	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:
Three payments or less	4,113		24	%	$	20,712	5	%	$	243,511	9	%
Four to eleven payments	5,459		32			77,822	21			349,494	22
Twelve or more payments	7,331		43			274,465	73			470,859	58
Pending claims	60		1			2,397	1			2,852	84
Total case reserves	16,963		100	%		375,396	100	%	$	1,066,716	35
IBNR						28,155
LAE						2,545
Total reserves for losses and LAE					$	406,096

Average reserve per default:
Case					$	22.1
Total					$	23.9

Default Rate	2.16	%


								Exhibit L

Essent Group Ltd. and Subsidiaries
Supplemental Information
Investments Available for Sale


Investments Available for Sale by Asset Class
Asset Class	December 31, 2022					December 31, 2021
($ in thousands)	Fair Value			Percent		Fair Value		Percent
U.S. Treasury securities	$	556,438		11.7	%	$	448,793	9.1	%
U.S. agency securities		49,058		1.0			5,504	0.1
U.S. agency mortgage-backed securities		783,743		16.5			1,008,863	20.3
Municipal debt securities		602,690		12.8			627,599	12.7
Non-U.S. government securities		62,399		1.3			79,743	1.6
Corporate debt securities		1,414,321		29.8			1,455,247	29.3
Residential and commercial mortgage securities		511,824		10.8			545,423	11.0
Asset-backed securities		624,561		13.2			581,703	11.7
Money market funds		136,591		2.9			210,012	4.2
Total investments available for sale	$	4,741,625		100.0	%	$	4,962,887	100.0	%

Investments Available for Sale by Credit Rating
Rating (1)	December 31, 2022					December 31, 2021
($ in thousands)	Fair Value			Percent		Fair Value		Percent
Aaa	$	2,226,951		46.9	%	$	2,412,273	48.6	%
Aa1		111,342		2.3			96,331	1.9
Aa2		327,742		6.9			354,951	7.2
Aa3		234,994		5.0			221,914	4.5
A1		421,752		8.9			263,820	5.3
A2		411,670		8.7			427,282	8.6
A3		268,928		5.7			274,525	5.5
Baa1		236,793		5.0			305,204	6.1
Baa2		221,308		4.7			274,011	5.5
Baa3		187,117		3.9			240,755	4.9
Below Baa3		93,028		2.0			91,821	1.9
Total investments available for sale	$	4,741,625		100.0	%	$	4,962,887	100.0	%

(1) Based on ratings issued by Moody's, if available. S&P or Fitch rating utilized if Moody's not available.

Investments Available for Sale by Duration and Book Yield
Effective Duration	December 31, 2022					December 31, 2021
($ in thousands)	Fair Value			Percent		Fair Value		Percent
< 1 Year	$	1,245,839		26.3	%	$	1,104,397	22.2	%
1 to < 2 Years		534,038		11.3			561,297	11.3
2 to < 3 Years		511,701		10.8			539,174	10.9
3 to < 4 Years		525,683		11.1			593,663	12.0
4 to < 5 Years		400,540		8.4			663,127	13.4
5 or more Years		1,523,824		32.1			1,501,229	30.2
Total investments available for sale	$	4,741,625		100.0	%	$	4,962,887	100.0	%

Pre-tax investment income yield:
Three months ended December 31, 2022		3.03	%
Year ended December 31, 2022		2.59	%

Holding company net cash and investments available for sale:
($ in thousands)
As of December 31, 2022	$	685,178
As of December 31, 2021	$	618,306


													Exhibit M

Essent Group Ltd. and Subsidiaries
Supplemental Information
Insurance Company Capital

	2022												2021
	December 31			September 30			June 30			March 31			December 31
($ in thousands)
U.S. Mortgage Insurance Subsidiaries:
Combined statutory capital (1)	$	3,175,889		$	3,128,681		$	3,062,438		$	3,058,880		$	2,950,107

Combined net risk in force (2)	$	32,265,701		$	31,736,095		$	31,221,406		$	30,331,197		$	30,660,272

Risk-to-capital ratios: (3)
Essent Guaranty, Inc.	10.5:1			10.5:1			10.6:1			10.3:1			10.8:1
Essent Guaranty of PA, Inc.	0.6:1			0.6:1			0.6:1			0.7:1			0.8:1
Combined (4)	10.2:1			10.1:1			10.2:1			9.9:1			10.4:1

Essent Guaranty, Inc. PMIERs Data (5):
Available Assets	$	3,191,047		$	3,147,545		$	3,120,098		$	3,194,939		$	3,170,881
Minimum Required Assets		1,832,363			1,759,182			1,869,524			1,840,069			1,791,551
PMIERs excess Available Assets	$	1,358,684		$	1,388,363		$	1,250,574		$	1,354,870		$	1,379,330
PMIERs sufficiency ratio (6)		174	%		179	%		167	%		174	%		177	%

Essent Reinsurance Ltd.:
Stockholder's equity (GAAP basis)	$	1,478,772		$	1,397,287		$	1,380,067		$	1,330,840		$	1,301,937

Net risk in force (2)	$	19,454,046		$	18,694,500		$	17,758,801		$	16,527,587		$	15,997,129


(1) Combined statutory capital equals the sum of statutory capital of Essent Guaranty, Inc. plus Essent Guaranty of PA, Inc., 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.

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855-809-ESNT

ir@essentgroup.com

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