Essent Group Ltd. Announces Fourth Quarter & Full Year 2020 Results; Declares Quarterly Dividend

HAMILTON, Bermuda–(BUSINESS WIRE)–Essent Group Ltd. (NYSE: ESNT) today reported net income for the quarter ended December 31, 2020 of $123.6 million or $1.10 per diluted share, compared to $147.0 million or $1.49 per diluted share for the quarter ended December 31, 2019. For the full year 2020, net income was $413.0 million, or $3.88 per diluted share, compared to $555.7 million, or $5.66 per diluted share for 2019.

Essent also announced today that its Board of Directors has declared a quarterly cash dividend of $0.16 per common share. The dividend is payable on March 19, 2021, to shareholders of record on March 10, 2021.

“2020 was a challenging year for our country and economy, however, we were pleased with the confidence that our buy, manage and distribute operating model provides our stakeholders in navigating the COVID-19 environment,” said Mark A. Casale, Chairman and Chief Executive Officer. “During 2020, we were also pleased with housing’s resilience, which remains the bright spot in the economy entering 2021 as supply-demand imbalances and favorable first-time home buying trends persist which are positive for our franchise.”

Fourth Quarter & Full Year 2020 Financial Highlights:

  • Insurance in force as of December 31, 2020 was $198.9 billion, compared to $190.8 billion as of September 30, 2020 and $164.0 billion as of December 31, 2019.
  • New insurance written for the fourth quarter was $29.6 billion, compared to $36.7 billion in the third quarter of 2020 and $15.8 billion in the fourth quarter of 2019.
  • Net premiums earned for the fourth quarter were $222.3 million, compared to $222.3 million in the third quarter of 2020 and $207.7 million in the fourth quarter of 2019.
  • The expense ratio for the fourth quarter was 16.6%, compared to 16.7% in the third quarter of 2020 and 19.9% in the fourth quarter of 2019.
  • The provision for losses and LAE for the fourth quarter was $62.1 million, compared to a provision of $55.3 million in the third quarter of 2020 and a provision of $10.9 million in the fourth quarter of 2019.
  • The percentage of loans in default as of December 31, 2020 was 3.93%, compared to 4.54% as of September 30, 2020 and 0.85% as of December 31, 2019.

    • As of January 31, 2021, the percentage of loans in default was 3.89%.
  • The combined ratio for the fourth quarter was 44.5%, compared to 41.6% in the third quarter of 2020 and 25.1% in the fourth quarter of 2019.
  • The consolidated balance of cash and investments at December 31, 2020 was $4.8 billion, including cash and investment balances at Essent Group Ltd. of $562.7 million.
  • The combined risk-to-capital ratio of the U.S. mortgage insurance business, which includes statutory capital for both Essent Guaranty, Inc. and Essent Guaranty of PA, Inc., was 11.1:1 as of December 31, 2020.
  • On October 8, 2020, Essent Guaranty, Inc. obtained $399.2 million of fully collateralized excess of loss reinsurance coverage on mortgage insurance policies written by Essent in September 2019 through July 2020 from Radnor Re 2020-2 Ltd., a newly formed Bermuda special purpose insurer. Radnor Re 2020-2 Ltd. is not a subsidiary or an affiliate of Essent Group Ltd.
  • On October 14, 2020, Essent Group Ltd. entered into an amended and restated credit facility, increasing to $625 million the committed capacity and extending the contractual maturity to October 16, 2023.

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 833-287-0797 inside the U.S., or 647-689-4456 for international callers, using passcode 4848097 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: 800-585-8367 inside the U.S., or 416-621-4642 for international callers, passcode 4848097.

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; 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; deteriorating economic conditions; 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, 2019 filed with the Securities and Exchange Commission on February 18, 2020, 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, 2020

 

 

 

 

 

 

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

 

Defaults, Reserve for Losses and LAE, and Claims

Exhibit K

 

Investments Available for Sale

Exhibit L

 

Insurance Company Capital

Exhibit M

 

Reconciliation of Non-GAAP Financial Measure – Adjusted Book Value per Share

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)

2020

 

2019

 

2020

 

2019

Revenues:

 

 

 

 

 

 

 

Direct premiums written

$

245,437

 

 

$

207,263

 

 

$

922,851

 

 

$

796,344

 

Ceded premiums

(31,194

)

 

(10,770

)

 

(88,738

)

 

(35,499

)

Net premiums written

214,243

 

 

196,493

 

 

834,113

 

 

760,845

 

Decrease in unearned premiums

8,096

 

 

11,178

 

 

28,451

 

 

16,580

 

Net premiums earned

222,339

 

 

207,671

 

 

862,564

 

 

777,425

 

Net investment income

20,949

 

 

21,977

 

 

80,087

 

 

83,542

 

Realized investment gains, net

564

 

 

833

 

 

2,697

 

 

3,229

 

Other income (loss)

3,347

 

 

(1,719

)

 

9,806

 

 

3,371

 

Total revenues

247,199

 

 

228,762

 

 

955,154

 

 

867,567

 

 

 

 

 

 

 

 

 

Losses and expenses:

 

 

 

 

 

 

 

Provision for losses and LAE

62,073

 

 

10,929

 

 

301,293

 

 

32,986

 

Other underwriting and operating expenses

36,825

 

 

41,231

 

 

154,691

 

 

165,369

 

Interest expense

2,149

 

 

2,218

 

 

9,074

 

 

10,151

 

Total losses and expenses

101,047

 

 

54,378

 

 

465,058

 

 

208,506

 

 

 

 

 

 

 

 

 

Income before income taxes

146,152

 

 

174,384

 

 

490,096

 

 

659,061

 

Income tax expense

22,550

 

 

27,426

 

 

77,055

 

 

103,348

 

Net income

$

123,602

 

 

$

146,958

 

 

$

413,041

 

 

$

555,713

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

Basic

$

1.10

 

 

$

1.50

 

 

$

3.89

 

 

$

5.68

 

Diluted

1.10

 

 

1.49

 

 

3.88

 

 

5.66

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

Basic

111,908

 

 

97,830

 

 

106,098

 

 

97,762

 

Diluted

112,310

 

 

98,376

 

 

106,376

 

 

98,227

 

 

 

 

 

 

 

 

 

Net income

$

123,602

 

 

$

146,958

 

 

$

413,041

 

 

$

555,713

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss):

 

 

 

 

 

 

 

Change in unrealized appreciation (depreciation) of investments

5,840

 

 

(6,540

)

 

82,087

 

 

85,180

 

Total other comprehensive income (loss)

5,840

 

 

(6,540

)

 

82,087

 

 

85,180

 

Comprehensive income

$

129,442

 

 

$

140,418

 

 

$

495,128

 

 

$

640,893

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss ratio

27.9

%

 

5.3

%

 

34.9

%

 

4.2

%

Expense ratio

16.6

 

 

19.9

 

 

17.9

 

 

21.3

 

Combined ratio

44.5

%

 

25.1

%

 

52.9

%

 

25.5

%

Exhibit B

 

 

 

 

Essent Group Ltd. and Subsidiaries

Condensed Consolidated Balance Sheets (Unaudited)

 

 

 

 

 

 

December 31,

 

December 31,

(In thousands, except per share amounts)

2020

 

2019

Assets

 

 

 

Investments

 

 

 

Fixed maturities available for sale, at fair value

$

3,838,513

 

 

$

3,035,385

 

Short-term investments available for sale, at fair value

726,860

 

 

315,362

 

Total investments available for sale

4,565,373

 

 

3,350,747

 

Other invested assets

88,904

 

 

78,873

 

Total investments

4,654,277

 

 

3,429,620

 

Cash

102,830

 

 

71,350

 

Accrued investment income

19,948

 

 

18,535

 

Accounts receivable

50,140

 

 

40,655

 

Deferred policy acquisition costs

17,005

 

 

15,705

 

Property and equipment

15,095

 

 

17,308

 

Prepaid federal income tax

302,636

 

 

261,885

 

Other assets

40,793

 

 

18,367

 

 

 

 

 

Total assets

$

5,202,724

 

 

$

3,873,425

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

Liabilities

 

 

 

Reserve for losses and LAE

$

374,941

 

 

$

69,362

 

Unearned premium reserve

250,436

 

 

278,887

 

Net deferred tax liability

305,109

 

 

249,620

 

Credit facility borrowings, net of deferred costs

321,720

 

 

224,237

 

Other accrued liabilities

87,885

 

 

66,474

 

Total liabilities

1,340,091

 

 

888,580

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

Stockholders’ Equity

 

 

 

Common shares, $0.015 par value:

 

 

 

Authorized – 233,333; issued and outstanding – 112,423 shares in 2020 and 98,394 shares in 2019

1,686

 

 

1,476

 

Additional paid-in capital

1,571,163

 

 

1,118,655

 

Accumulated other comprehensive income

138,274

 

 

56,187

 

Retained earnings

2,151,510

 

 

1,808,527

 

Total stockholders’ equity

3,862,633

 

 

2,984,845

 

 

 

 

 

Total liabilities and stockholders’ equity

$

5,202,724

 

 

$

3,873,425

 

 

 

 

 

Return on average equity

12.1

%

 

20.8

%

Exhibit C

Essent Group Ltd. and Subsidiaries

Supplemental Information

Historical Quarterly Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2020

 

2019

Selected Income Statement Data

 

December 31

 

September 30

 

June 30

 

March 31

 

December 31

 

September 30

 

June 30

 

March 31

(In thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net premiums written

 

$

214,243

 

 

$

222,223

 

 

$

205,904

 

 

$

191,743

 

 

$

196,493

 

 

$

198,304

 

 

$

188,404

 

 

$

177,644

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net premiums earned (1)

 

222,339

 

 

222,258

 

 

211,471

 

 

206,496

 

 

207,671

 

 

203,473

 

 

188,490

 

 

177,791

 

Other revenues (2)

 

24,860

 

 

20,780

 

 

24,606

 

 

22,344

 

 

21,091

 

 

22,914

 

 

23,402

 

 

22,735

 

Total revenues

 

247,199

 

 

243,038

 

 

236,077

 

 

228,840

 

 

228,762

 

 

226,387

 

 

211,892

 

 

200,526

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Losses and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for losses and LAE

 

62,073

 

 

55,280

 

 

175,877

 

 

8,063

 

 

10,929

 

 

9,990

 

 

4,960

 

 

7,107

 

Other underwriting and operating expenses

 

36,825

 

 

37,100

 

 

38,819

 

 

41,947

 

 

41,231

 

 

41,588

 

 

41,520

 

 

41,030

 

Interest expense

 

2,149

 

 

2,227

 

 

2,566

 

 

2,132

 

 

2,218

 

 

2,584

 

 

2,679

 

 

2,670

 

Total losses and expenses

 

101,047

 

 

94,607

 

 

217,262

 

 

52,142

 

 

54,378

 

 

54,162

 

 

49,159

 

 

50,807

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

146,152

 

 

148,431

 

 

18,815

 

 

176,698

 

 

174,384

 

 

172,225

 

 

162,733

 

 

149,719

 

Income tax expense (3)

 

22,550

 

 

23,895

 

 

3,435

 

 

27,175

 

 

27,426

 

 

27,595

 

 

26,328

 

 

21,999

 

Net income

 

$

123,602

 

 

$

124,536

 

 

$

15,380

 

 

$

149,523

 

 

$

146,958

 

 

$

144,630

 

 

$

136,405

 

 

$

127,720

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

1.10

 

 

$

1.11

 

 

$

0.15

 

 

$

1.53

 

 

$

1.50

 

 

$

1.48

 

 

$

1.39

 

 

$

1.31

 

Diluted

 

1.10

 

 

1.11

 

 

0.15

 

 

1.52

 

 

1.49

 

 

1.47

 

 

1.39

 

 

1.30

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

111,908

 

 

111,908

 

 

102,500

 

 

97,949

 

 

97,830

 

 

97,822

 

 

97,798

 

 

97,595

 

Diluted

 

112,310

 

 

112,134

 

 

102,605

 

 

98,326

 

 

98,376

 

 

98,257

 

 

98,170

 

 

98,104

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss ratio (4)

 

27.9

%

 

24.9

%

 

83.2

%

 

3.9

%

 

5.3

%

 

4.9

%

 

2.6

%

 

4.0

%

Expense ratio (5)

 

16.6

 

 

16.7

 

 

18.4

 

 

20.3

 

 

19.9

 

 

20.4

 

 

22.0

 

 

23.1

 

Combined ratio

 

44.5

%

 

41.6

%

 

101.5

%

 

24.2

%

 

25.1

%

 

25.3

%

 

24.7

%

 

27.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average equity (annualized)

 

13.0

%

 

13.5

%

 

1.8

%

 

19.6

%

 

20.1

%

 

20.8

%

 

20.9

%

 

20.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Net premiums earned also includes premiums earned on GSE and other risk share. See Exhibit F.

(2) Certain of our third-party reinsurance agreements contain an embedded derivative as the premium ceded under those agreements will vary based on changes in interest rates. For each of the three month periods noted, Other revenues include net favorable (unfavorable) changes in the fair value of these embedded derivatives as follows: December 31, 2020: ($209); September 30, 2020: ($677); June 30, 2020: $2,502; March 31, 2020: ($4,200); December 31, 2019: ($3,585); September 30, 2019: ($760); June 30, 2019: $1,160 and March 31, 2019: $1,424.

(3) Income tax expense for the three months ended March 31, 2020 and 2019 was reduced by $620 and $1,956, respectively, of excess tax benefits associated with the vesting of common shares and common share units during each period.

(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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2020

 

2019

Other Data, continued:

 

December 31

 

September 30

 

June 30

 

March 31

 

December 31

 

September 30

 

June 30

 

March 31

($ in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Mortgage Insurance Portfolio

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Flow:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

New insurance written

 

$

29,566,820

 

 

$

36,664,583

 

 

$

28,163,212

 

 

$

13,549,299

 

 

$

15,839,836

 

 

$

18,719,876

 

 

$

17,973,505

 

 

$

10,945,307

 

New risk written

 

7,051,173

 

 

8,938,544

 

 

6,875,250

 

 

3,384,171

 

 

3,966,363

 

 

4,695,611

 

 

4,485,217

 

 

2,713,389

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bulk:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

New insurance written

 

$

 

 

$

 

 

$

 

 

$

151

 

 

$

 

 

$

6,133

 

 

$

29,524

 

 

$

55,002

 

New risk written

 

 

 

 

 

 

 

24

 

 

 

 

842

 

 

2,129

 

 

6,542

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average gross premium rate (6)

 

0.49

%

 

0.51

%

 

0.53

%

 

0.51

%

 

0.51

%

 

0.52

%

 

0.51

%

 

0.50

%

Average net premium rate (7)

 

0.43

%

 

0.46

%

 

0.48

%

 

0.48

%

 

0.49

%

 

0.49

%

 

0.49

%

 

0.48

%

New insurance written

 

$

29,566,820

 

 

$

36,664,583

 

 

$

28,163,212

 

 

$

13,549,450

 

 

$

15,839,836

 

 

$

18,726,009

 

 

$

18,003,029

 

 

$

11,000,309

 

New risk written

 

$

7,051,173

 

 

$

8,938,544

 

 

$

6,875,250

 

 

$

3,384,195

 

 

$

3,966,363

 

 

$

4,696,453

 

 

$

4,487,346

 

 

$

2,719,931

 

Insurance in force (end of period)

 

$

198,882,352

 

 

$

190,811,292

 

 

$

174,646,273

 

 

$

165,615,503

 

 

$

164,005,853

 

 

$

160,962,192

 

 

$

153,317,157

 

 

$

143,181,641

 

Gross risk in force (end of period) (8)

 

$

49,565,150

 

 

$

47,838,668

 

 

$

43,993,989

 

 

$

41,865,977

 

 

$

41,402,950

 

 

$

40,540,289

 

 

$

38,531,090

 

 

$

35,925,830

 

Risk in force (end of period)

 

$

41,339,262

 

 

$

41,219,216

 

 

$

39,113,879

 

 

$

38,290,022

 

 

$

38,947,857

 

 

$

38,784,584

 

 

$

37,034,687

 

 

$

34,744,417

 

Policies in force

 

799,893

 

 

781,836

 

 

733,651

 

 

706,714

 

 

702,925

 

 

693,085

 

 

666,705

 

 

629,808

 

Weighted average coverage (9)

 

24.9

%

 

25.1

%

 

25.2

%

 

25.3

%

 

25.2

%

 

25.2

%

 

25.1

%

 

25.1

%

Annual persistency

 

60.1

%

 

64.2

%

 

67.9

%

 

73.9

%

 

77.5

%

 

82.1

%

 

84.8

%

 

85.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans in default (count)

 

31,469

 

 

35,464

 

 

38,068

 

 

5,841

 

 

5,947

 

 

5,232

 

 

4,405

 

 

4,096

 

Percentage of loans in default

 

3.93

%

 

4.54

%

 

5.19

%

 

0.83

%

 

0.85

%

 

0.75

%

 

0.66

%

 

0.65

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Risk in Force

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GSE and other risk share (10)

 

$

1,416,719

 

 

$

1,216,353

 

 

$

1,031,699

 

 

$

1,100,966

 

 

$

895,374

 

 

$

849,184

 

 

$

802,530

 

 

$

771,175

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit Facility

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Borrowings outstanding

 

$

325,000

 

 

$

425,000

 

 

$

425,000

 

 

$

425,000

 

 

$

225,000

 

 

$

225,000

 

 

$

225,000

 

 

$

225,000

 

Undrawn committed capacity

 

$

300,000

 

 

$

75,000

 

 

$

75,000

 

 

$

75,000

 

 

$

275,000

 

 

$

275,000

 

 

$

275,000

 

 

$

275,000

 

Weighted average interest rate (end of period)

 

2.19

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(6) Average gross premium rate is calculated by dividing annualized premiums earned for the U.S. mortgage insurance portfolio, before reductions for premiums ceded under third-party reinsurance, by average insurance in force for the period.

(7) Average net premium rate is calculated by dividing annualized net premiums earned for the U.S. mortgage insurance portfolio by average insurance in force for the period.

(8) Gross risk in force includes risk ceded under third-party reinsurance.

(9) Weighted average coverage is calculated by dividing end of period gross risk in force by end of period insurance in force.

(10) GSE and other risk share includes GSE risk share and other reinsurance transactions. 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 D

 

 

 

 

 

 

 

 

 

 

 

 

Essent Group Ltd. and Subsidiaries

Supplemental Information

New Insurance Written: Flow

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NIW by Credit Score

 

Three Months Ended

 

Year Ended

 

December 31, 2020

 

December 31, 2019

 

December 31, 2020

 

December 31, 2019

($ in thousands)

 

 

 

 

 

 

 

 

 

 

 

>=760

$

13,330,379

 

45.1

%

 

$

6,486,486

 

40.9

%

 

$

48,037,084

 

44.5

%

 

$

25,738,423

 

40.5

%

740-759

5,069,530

 

17.1

 

 

2,880,429

 

18.2

 

 

19,385,541

 

17.9

 

 

11,152,853

 

17.6

 

720-739

4,134,782

 

14.0

 

 

2,401,806

 

15.2

 

 

15,744,485

 

14.6

 

 

9,340,180

 

14.7

 

700-719

3,385,670

 

11.5

 

 

1,860,120

 

11.7

 

 

12,409,936

 

11.5

 

 

7,555,687

 

11.9

 

680-699

1,743,694

 

5.9

 

 

1,235,223

 

7.8

 

 

6,871,511

 

6.4

 

 

5,248,330

 

8.3

 

<=679

1,902,765

 

6.4

 

 

975,772

 

6.2

 

 

5,495,357

 

5.1

 

 

4,443,051

 

7.0

 

Total

$

29,566,820

 

100.0

%

 

$

15,839,836

 

100.0

%

 

$

107,943,914

 

100.0

%

 

$

63,478,524

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average credit score

748

 

 

 

745

 

 

 

749

 

 

 

744

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NIW by LTV

 

Three Months Ended

 

Year Ended

 

December 31, 2020

 

December 31, 2019

 

December 31, 2020

 

December 31, 2019

($ in thousands)

 

 

 

 

 

 

 

 

 

 

 

85.00% and below

$

6,317,550

 

21.4

%

 

$

2,084,932

 

13.2

%

 

$

20,124,987

 

18.6

%

 

$

7,874,266

 

12.4

%

85.01% to 90.00%

9,629,373

 

32.6

 

 

4,757,915

 

30.0

 

 

34,020,882

 

31.5

 

 

17,847,603

 

28.1

 

90.01% to 95.00%

11,134,923

 

37.6

 

 

6,771,196

 

42.7

 

 

42,517,221

 

39.4

 

 

26,852,903

 

42.3

 

95.01% and above

2,484,974

 

8.4

 

 

2,225,793

 

14.1

 

 

11,280,824

 

10.5

 

 

10,903,752

 

17.2

 

Total

$

29,566,820

 

100.0

%

 

$

15,839,836

 

100.0

%

 

$

107,943,914

 

100.0

%

 

$

63,478,524

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average LTV

91

%

 

 

92

%

 

 

91

%

 

 

92

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NIW by Product

 

Three Months Ended

 

Year Ended

 

December 31, 2020

 

December 31, 2019

 

December 31, 2020

 

December 31, 2019

Single Premium policies

 

7.7

%

 

 

10.4

%

 

 

9.0

%

 

 

11.1

%

Monthly Premium policies

 

92.3

 

 

 

89.6

 

 

 

91.0

 

 

 

88.9

 

 

 

100.0

%

 

 

100.0

%

 

 

100.0

%

 

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NIW by Purchase vs. Refinance

 

Three Months Ended

 

Year Ended

 

December 31, 2020

 

December 31, 2019

 

December 31, 2020

 

December 31, 2019

Purchase

 

61.6

%

 

 

71.8

%

 

 

60.4

%

 

 

80.4

%

Refinance

 

38.4

 

 

 

28.2

 

 

 

39.6

 

 

 

19.6

 

 

 

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, 2020

 

September 30, 2020

 

December 31, 2019

($ in thousands)

 

 

 

 

 

 

 

 

 

>=760

 

$

82,452,139

 

41.5

%

 

$

78,923,142

 

41.4

%

 

$

68,123,523

 

41.5

%

740-759

 

34,538,761

 

17.3

 

 

33,229,396

 

17.4

 

 

27,886,603

 

17.0

 

720-739

 

29,599,646

 

14.9

 

 

28,496,228

 

15.0

 

 

24,069,139

 

14.7

 

700-719

 

23,807,982

 

12.0

 

 

22,748,385

 

11.9

 

 

19,183,219

 

11.7

 

680-699

 

15,538,235

 

7.8

 

 

15,302,772

 

8.0

 

 

13,713,164

 

8.4

 

<=679

 

12,945,589

 

6.5

 

 

12,111,369

 

6.3

 

 

11,030,205

 

6.7

 

Total

 

$

198,882,352

 

100.0

%

 

$

190,811,292

 

100.0

%

 

$

164,005,853

 

100.0

%

 

 

 

 

 

 

 

 

 

 

Weighted average credit score

 

745

 

 

 

745

 

 

 

745

 

 

 

 

 

 

 

 

 

 

 

 

Gross RIF by FICO score

 

December 31, 2020

 

September 30, 2020

 

December 31, 2019

($ in thousands)

 

 

 

 

 

 

 

 

 

>=760

 

$

20,336,799

 

41.0

%

 

$

19,606,502

 

41.0

%

 

$

17,082,683

 

41.3

%

740-759

 

8,682,265

 

17.5

 

 

8,395,009

 

17.5

 

 

7,056,654

 

17.0

 

720-739

 

7,504,065

 

15.1

 

 

7,251,499

 

15.2

 

 

6,150,334

 

14.9

 

700-719

 

5,970,851

 

12.1

 

 

5,738,412

 

12.0

 

 

4,873,597

 

11.8

 

680-699

 

3,887,059

 

7.9

 

 

3,853,734

 

8.0

 

 

3,491,755

 

8.4

 

<=679

 

3,184,111

 

6.4

 

 

2,993,512

 

6.3

 

 

2,747,927

 

6.6

 

Total

 

$

49,565,150

 

100.0

%

 

$

47,838,668

 

100.0

%

 

$

41,402,950

 

100.0

%

 

 

 

 

 

 

 

 

 

 

Portfolio by LTV

IIF by LTV

 

December 31, 2020

 

September 30, 2020

 

December 31, 2019

($ in thousands)

 

 

 

 

 

 

 

 

 

85.00% and below

 

$

27,308,296

 

13.7

%

 

$

23,979,065

 

12.6

%

 

$

17,128,008

 

10.5

%

85.01% to 90.00%

 

58,606,394

 

29.5

 

 

55,453,633

 

29.1

 

 

46,771,386

 

28.5

 

90.01% to 95.00%

 

86,169,485

 

43.3

 

 

84,573,433

 

44.3

 

 

76,611,494

 

46.7

 

95.01% and above

 

26,798,177

 

13.5

 

 

26,805,161

 

14.0

 

 

23,494,965

 

14.3

 

Total

 

$

198,882,352

 

100.0

%

 

$

190,811,292

 

100.0

%

 

$

164,005,853

 

100.0

%

 

 

 

 

 

 

 

 

 

 

Weighted average LTV

 

92

%

 

 

92

%

 

 

92

%

 

 

 

 

 

 

 

 

Gross RIF by LTV

 

December 31, 2020

 

September 30, 2020

 

December 31, 2019

($ in thousands)

 

 

 

 

 

 

 

 

 

85.00% and below

 

$

3,142,034

 

6.3

%

 

$

2,759,320

 

5.8

%

 

$

1,977,361

 

4.8

%

85.01% to 90.00%

 

14,061,553

 

28.4

 

 

13,307,205

 

27.8

 

 

11,249,383

 

27.2

 

90.01% to 95.00%

 

24,895,471

 

50.2

 

 

24,391,376

 

51.0

 

 

21,981,598

 

53.1

 

95.01% and above

 

7,466,092

 

15.1

 

 

7,380,767

 

15.4

 

 

6,194,608

 

14.9

 

Total

 

$

49,565,150

 

100.0

%

 

$

47,838,668

 

100.0

%

 

$

41,402,950

 

100.0

%

 

 

 

 

 

 

 

 

 

 

Portfolio by Loan Amortization Period

IIF by Loan Amortization Period

December 31, 2020

 

September 30, 2020

 

December 31, 2019

($ in thousands)

 

 

 

 

 

 

 

 

 

FRM 30 years and higher

 

$

187,704,000

 

94.4

%

 

$

180,135,430

 

94.4

%

 

$

154,905,519

 

94.5

%

FRM 20-25 years

 

4,365,585

 

2.2

 

 

3,945,019

 

2.1

 

 

2,854,560

 

1.7

 

FRM 15 years

 

4,776,068

 

2.4

 

 

4,417,092

 

2.3

 

 

3,300,715

 

2.0

 

ARM 5 years and higher

 

2,036,699

 

1.0

 

 

2,313,751

 

1.2

 

 

2,945,059

 

1.8

 

Total

 

$

198,882,352

 

100.0

%

 

$

190,811,292

 

100.0

%

 

$

164,005,853

 

100.0

%

Contacts

Media
610.230.0556

[email protected]

Investor Relations
Christopher G. Curran

Senior Vice President – Investor Relations

855-809-ESNT

[email protected]

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