HAMILTON, Bermuda–(BUSINESS WIRE)–November 4, 2022–Essent Group Ltd. (NYSE: ESNT) today reported net income for the quarter ended September 30, 2022 of $178.1 million or $1.66 per diluted share, compared to $205.4 million or $1.84 per diluted share for the quarter ended September 30, 2021.
Essent also announced today that its Board of Directors has declared a quarterly cash dividend of $0.23 per common share. The dividend is payable on December 12, 2022, to shareholders of record on December 1, 2022.
“We are pleased with our financial performance for the third quarter as we produced strong earnings and robust 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. At the same time, 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 $0.23 per share.”
Third Quarter 2022 Financial Highlights:
- New insurance written for the third quarter was $17.1 billion, compared to $20.1 billion in the second quarter of 2022 and $23.6 billion in the third quarter of 2021.
- Insurance in force as of September 30, 2022 was $222.5 billion, compared to $215.9 billion as of June 30, 2022 and $208.2 billion as of September 30, 2021.
- The combined ratio for the third quarter was 22.3%, compared to negative (16.2%) in the second quarter of 2022 and 15.9% in the third quarter of 2021.
- During the quarter, Essent Guaranty, Inc. obtained $237.9 million of fully collateralized excess of loss reinsurance coverage on mortgage insurance policies written by Essent in October 2021 through July 2022 from Radnor Re 2022-1 Ltd., a newly formed Bermuda special purpose insurer. Radnor Re 2022-1 Ltd. is not a subsidiary or an affiliate of Essent Group Ltd.
- During the quarter, A.M. Best affirmed its “A (Excellent)” financial strength rating of Essent Guaranty, Inc. and Essent Reinsurance Ltd. and the long-term issuer credit rating of “a” of the operating subsidiaries of Essent Group Ltd. Essent Guaranty, Inc. also has financial strength ratings of “A3” by Moody’s and “BBB+” by S&P.
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.
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Essent Group Ltd. and Subsidiaries |
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Financial Results and Supplemental Information (Unaudited) |
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Quarter Ended September 30, 2022 |
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Exhibit A |
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Condensed Consolidated Statements of Comprehensive Income (Unaudited) |
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Exhibit B |
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Condensed Consolidated Balance Sheets (Unaudited) |
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Exhibit C |
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Historical Quarterly Data |
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Exhibit D |
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New Insurance Written |
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Exhibit E |
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Insurance in Force and Risk in Force |
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Exhibit F |
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Other Risk in Force |
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Exhibit G |
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Portfolio Vintage Data |
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Exhibit H |
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Reinsurance Vintage Data |
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Exhibit I |
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Portfolio Geographic Data |
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Exhibit J |
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Rollforward of Defaults and Reserve for Losses and LAE |
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Exhibit K |
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Detail of Reserves by Default Delinquency |
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Exhibit L |
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Investments Available for Sale |
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Exhibit M |
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Insurance Company Capital |
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Exhibit A |
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Essent Group Ltd. and Subsidiaries |
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Condensed Consolidated Statements of Comprehensive Income (Unaudited) |
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
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(In thousands, except per share amounts) |
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2022 |
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2021 |
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2022 |
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2021 |
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Revenues: |
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Direct premiums written |
$ |
239,773 |
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$ |
229,228 |
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$ |
692,687 |
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$ |
693,434 |
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Ceded premiums |
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(30,543 |
) |
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(26,880 |
) |
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(73,384 |
) |
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(84,438 |
) |
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Net premiums written |
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209,230 |
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202,348 |
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619,303 |
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608,996 |
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Decrease (increase) in unearned premiums |
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(1,296 |
) |
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16,370 |
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15,972 |
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46,226 |
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Net premiums earned |
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207,934 |
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218,718 |
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635,275 |
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655,222 |
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Net investment income |
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32,594 |
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21,573 |
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86,613 |
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65,104 |
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Realized investment (losses) gains, net |
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175 |
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221 |
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(7,648 |
) |
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609 |
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Income from other invested assets |
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9,617 |
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40,741 |
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36,275 |
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41,389 |
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Other income |
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11,447 |
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2,283 |
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20,272 |
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9,270 |
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Total revenues |
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261,767 |
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283,536 |
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770,787 |
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771,594 |
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Losses and expenses: |
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(Benefit) provision for losses and LAE |
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4,252 |
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(7,483 |
) |
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(178,805 |
) |
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34,490 |
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Other underwriting and operating expenses |
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42,144 |
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42,272 |
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124,838 |
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125,625 |
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Interest expense |
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4,450 |
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2,063 |
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9,563 |
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6,187 |
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Total losses and expenses |
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50,846 |
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36,852 |
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(44,404 |
) |
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166,302 |
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Income before income taxes |
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210,921 |
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246,684 |
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815,191 |
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605,292 |
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Income tax expense |
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32,870 |
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41,331 |
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131,204 |
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104,496 |
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Net income |
$ |
178,051 |
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$ |
205,353 |
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$ |
683,987 |
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$ |
500,796 |
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Earnings per share: |
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Basic |
$ |
1.67 |
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$ |
1.85 |
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$ |
6.37 |
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$ |
4.48 |
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Diluted |
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1.66 |
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1.84 |
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6.35 |
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4.47 |
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Weighted average shares outstanding: |
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Basic |
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106,870 |
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111,001 |
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107,314 |
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111,708 |
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Diluted |
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107,337 |
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111,387 |
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107,732 |
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112,070 |
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Net income |
$ |
178,051 |
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$ |
205,353 |
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$ |
683,987 |
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$ |
500,796 |
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Other comprehensive income (loss): |
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Change in unrealized appreciation (depreciation) of investments |
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(137,010 |
) |
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(36,917 |
) |
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(474,284 |
) |
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(59,760 |
) |
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Total other comprehensive income (loss) |
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(137,010 |
) |
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(36,917 |
) |
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(474,284 |
) |
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(59,760 |
) |
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Comprehensive income |
$ |
41,041 |
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$ |
168,436 |
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$ |
209,703 |
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$ |
441,036 |
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Loss ratio |
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2.0 |
% |
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(3.4 |
%) |
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(28.1 |
%) |
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5.3 |
% |
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Expense ratio |
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20.3 |
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19.3 |
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19.7 |
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19.2 |
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Combined ratio |
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22.3 |
% |
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15.9 |
% |
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(8.5 |
%) |
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24.4 |
% |
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Exhibit B |
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Essent Group Ltd. and Subsidiaries |
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Condensed Consolidated Balance Sheets (Unaudited) |
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September 30, |
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December 31, |
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(In thousands, except per share amounts) |
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2022 |
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2021 |
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Assets |
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Investments |
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Fixed maturities available for sale, at fair value |
$ |
4,253,705 |
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$ |
4,649,800 |
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Short-term investments available for sale, at fair value |
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331,139 |
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313,087 |
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Total investments available for sale |
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4,584,844 |
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4,962,887 |
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Other invested assets |
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263,126 |
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170,472 |
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Total investments |
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4,847,970 |
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5,133,359 |
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Cash |
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79,467 |
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|
81,491 |
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Accrued investment income |
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29,598 |
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|
26,546 |
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Accounts receivable |
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59,069 |
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|
46,157 |
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Deferred policy acquisition costs |
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10,408 |
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12,178 |
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Property and equipment |
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19,778 |
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|
11,921 |
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Prepaid federal income tax |
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405,910 |
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|
360,810 |
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Other assets |
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104,704 |
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|
49,712 |
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Total assets |
$ |
5,556,904 |
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$ |
5,722,174 |
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Liabilities and Stockholders’ Equity |
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Liabilities |
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Reserve for losses and LAE |
$ |
212,494 |
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$ |
407,445 |
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Unearned premium reserve |
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169,413 |
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|
185,385 |
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Net deferred tax liability |
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340,627 |
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373,654 |
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Credit facility borrowings, net of deferred costs |
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420,600 |
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419,823 |
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Other accrued liabilities |
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119,562 |
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|
99,753 |
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Total liabilities |
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1,262,696 |
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|
1,486,060 |
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Commitments and contingencies |
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Stockholders’ Equity |
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Common shares, $0.015 par value: |
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Authorized – 233,333; issued and outstanding – 107,697 shares in 2022 and 109,377 shares in 2021 |
|
1,615 |
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|
1,641 |
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Additional paid-in capital |
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1,345,598 |
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|
|
1,428,952 |
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Accumulated other comprehensive (loss) income |
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(423,577 |
) |
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|
50,707 |
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Retained earnings |
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3,370,572 |
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|
|
2,754,814 |
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Total stockholders’ equity |
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4,294,208 |
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|
|
4,236,114 |
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Total liabilities and stockholders’ equity |
$ |
5,556,904 |
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$ |
5,722,174 |
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Return on average equity (1) |
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21.4 |
% |
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|
16.8 |
% |
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(1) The 2022 return on average equity is calculated by dividing annualized year-to-date 2022 net income by average equity. The 2021 return on average equity is calculated by dividing full year 2021 net income by average equity. |
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Exhibit C |
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Essent Group Ltd. and Subsidiaries |
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Supplemental Information |
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Historical Quarterly Data |
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2022 |
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2021 |
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Selected Income Statement Data |
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September 30 |
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June 30 |
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March 31 |
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December 31 |
|
September 30 |
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(In thousands, except per share amounts) |
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Revenues: |
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Net premiums earned: |
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U.S. Mortgage Insurance Portfolio |
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$ |
194,272 |
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$ |
198,891 |
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$ |
203,312 |
|
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$ |
205,877 |
|
|
$ |
207,127 |
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GSE and other risk share |
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|
13,662 |
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|
|
13,120 |
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|
|
12,018 |
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|
|
11,444 |
|
|
|
11,591 |
|
|
Net premiums earned |
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|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
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Losses and expenses: |
|
|
|
|
|
|
|
|
|
|
||||||||||
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(Benefit) provision for losses and LAE |
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|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
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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 |
|
|
Return on 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 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
(1) Income from other invested assets for the three months ended September 30, 2021 includes $39.5 million of net unrealized gains, which includes $21.1 million of net unrealized gains that were accumulated in other comprehensive income at June 30, 2021 and prior periods. |
||||||||||||||||||||
|
(2) 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: September 30, 2022: $5,177; June 30, 2022: ($5,549); March 31, 2022: $4,365; December 31, 2021: ($2,931); September 30, 2021: ($1,493). |
||||||||||||||||||||
|
(3) 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 September 30, 2022, June 30, 2022, March 31, 2022, December 31, 2021 and September 30, 2021 includes $2,925, ($299), $7,002, $1,759 and $8,271, respectively, of discrete tax (benefit) expense associated with realized and unrealized gains and losses. |
||||||||||||||||||||
|
(4) Loss ratio is calculated by dividing the provision for losses and LAE by net premiums earned. |
||||||||||||||||||||
|
(5) Expense ratio is calculated by dividing other underwriting and operating expenses by net premiums earned. |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
Exhibit C, continued |
||||||||||||
|
Essent Group Ltd. and Subsidiaries |
||||||||||||||||||||
|
Supplemental Information |
||||||||||||||||||||
|
Historical Quarterly Data |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
2022 |
|
2021 |
||||||||||||||||
|
Other Data, continued: |
|
September 30 |
|
June 30 |
|
March 31 |
|
December 31 |
|
September 30 |
||||||||||
|
($ in thousands) |
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
U.S. Mortgage Insurance Portfolio |
|
|
|
|
|
|
|
|
||||||||||||
|
Flow: |
|
|
|
|
|
|
|
|
|
|
||||||||||
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Bulk: |
|
|
|
|
|
|
|
|
|
|
||||||||||
|
New insurance written |
|
$ |
— |
|
|
$ |
196 |
|
|
$ |
— |
|
|
$ |
416 |
|
|
$ |
— |
|
|
New risk written |
|
|
— |
|
|
|
29 |
|
|
|
— |
|
|
|
41 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Total: |
|
|
|
|
|
|
|
|
|
|
||||||||||
|
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 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
(6) Gross risk in force includes risk ceded under third-party reinsurance. |
||||||||||||||||||||
|
(7) Weighted average coverage is calculated by dividing end of period gross risk in force by end of period insurance in force. |
||||||||||||||||||||
|
(8) Base average premium rate is calculated by dividing annualized base premiums earned by average insurance in force for the period. |
||||||||||||||||||||
|
(9) 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 |
|
Nine Months Ended |
||||||||||||||||||||
|
|
September 30, 2022 |
|
September 30, 2021 |
|
September 30, 2022 |
|
September 30, 2021 |
||||||||||||||||
|
($ in thousands) |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
>=760 |
$ |
6,976,123 |
|
40.8 |
% |
|
$ |
9,257,407 |
|
39.3 |
% |
|
$ |
20,942,108 |
|
41.8 |
% |
|
$ |
27,778,887 |
|
40.9 |
% |
|
740-759 |
|
2,965,115 |
|
17.3 |
|
|
|
3,892,226 |
|
16.5 |
|
|
|
8,499,739 |
|
17.0 |
|
|
|
10,858,015 |
|
16.0 |
|
|
720-739 |
|
2,788,573 |
|
16.3 |
|
|
|
3,656,963 |
|
15.5 |
|
|
|
7,885,166 |
|
15.8 |
|
|
|
10,316,977 |
|
15.2 |
|
|
700-719 |
|
2,277,251 |
|
13.3 |
|
|
|
3,345,696 |
|
14.2 |
|
|
|
6,452,721 |
|
12.9 |
|
|
|
9,328,577 |
|
13.8 |
|
|
680-699 |
|
1,476,982 |
|
8.6 |
|
|
|
2,361,529 |
|
10.0 |
|
|
|
4,409,944 |
|
8.8 |
|
|
|
5,855,301 |
|
8.6 |
|
|
<=679 |
|
627,973 |
|
3.7 |
|
|
|
1,066,063 |
|
4.5 |
|
|
|
1,859,956 |
|
3.7 |
|
|
|
3,700,995 |
|
5.5 |
|
|
Total |
$ |
17,112,017 |
|
100.0 |
% |
|
$ |
23,579,884 |
|
100.0 |
% |
|
$ |
50,049,634 |
|
100.0 |
% |
|
$ |
67,838,752 |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Weighted average credit score |
|
746 |
|
|
|
|
744 |
|
|
|
|
747 |
|
|
|
|
745 |
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
NIW by LTV |
|||||||||||||||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||||||
|
|
September 30, 2022 |
|
September 30, 2021 |
|
September 30, 2022 |
|
September 30, 2021 |
||||||||||||||||
|
($ in thousands) |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
85.00% and below |
$ |
1,618,912 |
|
9.5 |
% |
|
$ |
2,336,949 |
|
9.9 |
% |
|
$ |
4,556,205 |
|
9.1 |
% |
|
$ |
9,660,937 |
|
14.2 |
% |
|
85.01% to 90.00% |
|
4,753,686 |
|
27.8 |
|
|
|
5,860,301 |
|
24.9 |
|
|
|
13,657,345 |
|
27.3 |
|
|
|
19,192,675 |
|
28.3 |
|
|
90.01% to 95.00% |
|
9,171,095 |
|
53.5 |
|
|
|
11,574,090 |
|
49.1 |
|
|
|
26,461,665 |
|
52.9 |
|
|
|
30,090,325 |
|
44.4 |
|
|
95.01% and above |
|
1,568,324 |
|
9.2 |
|
|
|
3,808,544 |
|
16.1 |
|
|
|
5,374,419 |
|
10.7 |
|
|
|
8,894,815 |
|
13.1 |
|
|
Total |
$ |
17,112,017 |
|
100.0 |
% |
|
$ |
23,579,884 |
|
100.0 |
% |
|
$ |
50,049,634 |
|
100.0 |
% |
|
$ |
67,838,752 |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Weighted average LTV |
|
93 |
% |
|
|
|
93 |
% |
|
|
|
93 |
% |
|
|
|
92 |
% |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
NIW by Product |
|||||||||||||||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||||||
|
|
September 30, 2022 |
|
September 30, 2021 |
|
September 30, 2022 |
|
September 30, 2021 |
||||||||||||||||
|
Single Premium policies |
|
8.2 |
% |
|
|
2.5 |
% |
|
|
5.9 |
% |
|
|
4.1 |
% |
||||||||
|
Monthly Premium policies |
|
91.8 |
|
|
|
97.5 |
|
|
|
94.1 |
|
|
|
95.9 |
|
||||||||
|
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
100.0 |
% |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
NIW by Purchase vs. Refinance |
|||||||||||||||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||||||
|
|
September 30, 2022 |
|
September 30, 2021 |
|
September 30, 2022 |
|
September 30, 2021 |
||||||||||||||||
|
Purchase |
|
98.7 |
% |
|
|
90.9 |
% |
|
|
97.2 |
% |
|
|
79.6 |
% |
||||||||
|
Refinance |
|
1.3 |
|
|
|
9.1 |
|
|
|
2.8 |
|
|
|
20.4 |
|
||||||||
|
|
|
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 |
September 30, 2022 |
|
June 30, 2022 |
|
September 30, 2021 |
|||||||||||||
|
($ in thousands) |
|
|
|
|
|
|
|
|
||||||||||
|
>=760 |
|
$ |
92,309,692 |
|
41.5 |
% |
|
$ |
89,790,212 |
|
41.6 |
% |
|
$ |
85,833,588 |
|
41.2 |
% |
|
740-759 |
|
|
37,821,201 |
|
17.0 |
|
|
|
36,606,394 |
|
17.0 |
|
|
|
35,234,863 |
|
16.9 |
|
|
720-739 |
|
|
33,910,646 |
|
15.2 |
|
|
|
32,637,422 |
|
15.1 |
|
|
|
31,291,415 |
|
15.1 |
|
|
700-719 |
|
|
28,263,518 |
|
12.7 |
|
|
|
27,258,759 |
|
12.6 |
|
|
|
26,136,910 |
|
12.6 |
|
|
680-699 |
|
|
18,351,570 |
|
8.2 |
|
|
|
17,697,662 |
|
8.2 |
|
|
|
16,758,439 |
|
8.0 |
|
|
<=679 |
|
|
11,885,942 |
|
5.4 |
|
|
|
11,906,082 |
|
5.5 |
|
|
|
12,961,334 |
|
6.2 |
|
|
Total |
$ |
222,542,569 |
|
100.0 |
% |
|
$ |
215,896,531 |
|
100.0 |
% |
|
$ |
208,216,549 |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Weighted average credit score |
|
746 |
|
|
|
|
746 |
|
|
|
|
745 |
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Gross RIF by FICO score |
September 30, 2022 |
|
June 30, 2022 |
|
September 30, 2021 |
|||||||||||||
|
($ in thousands) |
|
|
|
|
|
|
|
|
||||||||||
|
>=760 |
|
$ |
23,743,335 |
|
41.1 |
% |
|
$ |
22,956,271 |
|
41.2 |
% |
|
$ |
21,414,607 |
|
40.8 |
% |
|
740-759 |
|
|
9,920,331 |
|
17.2 |
|
|
|
9,540,921 |
|
17.1 |
|
|
|
8,958,297 |
|
17.1 |
|
|
720-739 |
|
|
8,934,327 |
|
15.5 |
|
|
|
8,545,969 |
|
15.3 |
|
|
|
8,020,171 |
|
15.3 |
|
|
700-719 |
|
|
7,412,542 |
|
12.8 |
|
|
|
7,107,888 |
|
12.8 |
|
|
|
6,652,117 |
|
12.7 |
|
|
680-699 |
|
|
4,801,986 |
|
8.3 |
|
|
|
4,601,675 |
|
8.3 |
|
|
|
4,250,044 |
|
8.1 |
|
|
<=679 |
|
|
2,930,570 |
|
5.1 |
|
|
|
2,925,339 |
|
5.3 |
|
|
|
3,161,784 |
|
6.0 |
|
|
Total |
$ |
57,743,091 |
|
100.0 |
% |
|
$ |
55,678,063 |
|
100.0 |
% |
|
$ |
52,457,020 |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Portfolio by LTV |
||||||||||||||||||
|
IIF by LTV |
September 30, 2022 |
|
June 30, 2022 |
|
September 30, 2021 |
|||||||||||||
|
($ in thousands) |
|
|
|
|
|
|
|
|
||||||||||
|
85.00% and below |
|
$ |
25,121,995 |
|
11.3 |
% |
|
$ |
25,510,400 |
|
11.8 |
% |
|
$ |
28,452,535 |
|
13.7 |
% |
|
85.01% to 90.00% |
|
|
62,963,331 |
|
28.3 |
|
|
|
61,304,806 |
|
28.4 |
|
|
|
60,257,704 |
|
28.9 |
|
|
90.01% to 95.00% |
|
|
103,794,020 |
|
46.6 |
|
|
|
98,938,435 |
|
45.8 |
|
|
|
90,957,363 |
|
43.7 |
|
|
95.01% and above |
|
|
30,663,223 |
|
13.8 |
|
|
|
30,142,890 |
|
14.0 |
|
|
|
28,548,947 |
|
13.7 |
|
|
Total |
$ |
222,542,569 |
|
100.0 |
% |
|
$ |
215,896,531 |
|
100.0 |
% |
|
$ |
208,216,549 |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Weighted average LTV |
|
92 |
% |
|
|
|
92 |
% |
|
|
|
92 |
% |
|
||||
|
|
|
|
|
|
|
|
||||||||||||
|
Gross RIF by LTV |
September 30, 2022 |
|
June 30, 2022 |
|
September 30, 2021 |
|||||||||||||
|
($ in thousands) |
|
|
|
|
|
|
|
|
||||||||||
|
85.00% and below |
|
$ |
2,975,898 |
|
5.2 |
% |
|
$ |
3,012,030 |
|
5.4 |
% |
|
$ |
3,311,106 |
|
6.3 |
% |
|
85.01% to 90.00% |
|
|
15,317,449 |
|
26.5 |
|
|
|
14,868,579 |
|
26.7 |
|
|
|
14,506,577 |
|
27.7 |
|
|
90.01% to 95.00% |
|
|
30,388,328 |
|
52.6 |
|
|
|
28,921,722 |
|
52.0 |
|
|
|
26,410,513 |
|
50.3 |
|
|
95.01% and above |
|
|
9,061,416 |
|
15.7 |
|
|
|
8,875,732 |
|
15.9 |
|
|
|
8,228,824 |
|
15.7 |
|
|
Total |
$ |
57,743,091 |
|
100.0 |
% |
|
$ |
55,678,063 |
|
100.0 |
% |
|
$ |
52,457,020 |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Portfolio by Loan Amortization Period |
||||||||||||||||||
|
IIF by Loan Amortization Period |
September 30, 2022 |
|
June 30, 2022 |
|
September 30, 2021 |
|||||||||||||
|
($ in thousands) |
|
|
|
|
|
|
|
|
||||||||||
|
FRM 30 years and higher |
|
$ |
214,688,363 |
|
96.5 |
% |
|
$ |
207,888,842 |
|
96.3 |
% |
|
$ |
198,392,156 |
|
95.3 |
% |
|
FRM 20-25 years |
|
|
2,859,734 |
|
1.3 |
|
|
|
3,114,962 |
|
1.4 |
|
|
|
3,974,602 |
|
1.9 |
|
|
FRM 15 years |
|
|
2,903,355 |
|
1.3 |
|
|
|
3,222,801 |
|
1.5 |
|
|
|
4,419,750 |
|
2.1 |
|
|
ARM 5 years and higher |
|
|
2,091,117 |
|
0.9 |
|
|
|
1,669,926 |
|
0.8 |
|
|
|
1,430,041 |
|
0.7 |
|
|
Total |
$ |
222,542,569 |
|
100.0 |
% |
|
$ |
215,896,531 |
|
100.0 |
% |
|
$ |
208,216,549 |
|
100.0 |
% |
|
Contacts
Media
610.230.0556
[email protected]
Investor Relations
Philip Stefano
Vice President, Investor Relations
855-809-ESNT
[email protected]
