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Essent Group Ltd. Announces Third Quarter 2023 Results and Declares Quarterly Dividend

HAMILTON, Bermuda–(BUSINESS WIRE)–Essent Group Ltd. (NYSE: ESNT) today reported net income for the quarter ended September 30, 2023 of $178.0 million or $1.66 per diluted share, compared to $178.1 million or $1.66 per diluted share for the quarter ended September 30, 2022.


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 December 11, 2023, to shareholders of record on December 1, 2023.

We are pleased with our third quarter 2023 financial results, as we continue to generate high quality earnings and robust returns,” said Mark A. Casale, Chairman and Chief Executive Officer. “The credit quality of our portfolio remains strong. Higher interest rates have translated to higher portfolio persistency and increased investment income, supporting our revenues and growth in book value per share.”

Financial Highlights:

  • New insurance written for the third quarter of 2023 was $12.5 billion, compared to $13.5 billion in the second quarter of 2023 and $17.1 billion in the third quarter of 2022.
  • Insurance in force as of September 30, 2023 was $238.7 billion, compared to $235.6 billion as of June 30, 2023 and $222.5 billion as of September 30, 2022.
  • Net investment income for the third quarter of 2023 was $47.1 million, up 44% from the third quarter of 2022. For the nine months ended September 30, 2023, net investment income was $135.6 million, up 57% from the comparable period in 2022.
  • On July 1, 2023, Essent Group Ltd. completed its previously announced acquisition of Agents National Title Holding Company and Boston National Holdings LLC for $92.6 million.
  • On August 8, 2023, Essent closed its 9th insurance-linked note transaction, Radnor Re 2023-1, which provides $281.5 million of collateralized reinsurance coverage for NIW from August 2022 through June 2023.
  • In October 2023, the Board approved a share repurchase plan that authorizes the Company to repurchase $250 million of common shares in the open market between January 1, 2024 and December 31, 2025.

Conference Call:

Essent management will hold a conference call at 10:00 AM Eastern time today to discuss its results. The conference call will be broadcast live over the Internet at http://ir.essentgroup.com/events-and-presentations/events/default.aspx. The call may also be accessed by dialing 888-330-2384 inside the U.S., or 240-789-2701 for international callers, using passcode 9824537 or by referencing Essent.

A replay of the webcast will be available on the Essent website approximately two hours after the live broadcast ends for a period of one year. A replay of the conference call will be available approximately two hours after the call ends for a period of two weeks, using the following dial-in numbers and passcode: 800-770-2030 inside the U.S., or 647-362-9199 for international callers, passcode 9824537.

In addition to the information provided in the Company’s earnings news release, other statistical and financial information, which may be referred to during the conference call, will be available on Essent’s website at http://ir.essentgroup.com/financials/quarterly-results/default.aspx.

Forward-Looking Statements:

This press release may include “forward-looking statements” which are subject to known and unknown risks and uncertainties, many of which may be beyond our control. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” or “potential” or the negative thereof or variations thereon or similar terminology. Actual events, results and outcomes may differ materially from our expectations due to a variety of known and unknown risks, uncertainties and other factors. Although it is not possible to identify all of these risks and factors, they include, among others, the following: changes in or to Fannie Mae and Freddie Mac (the “GSEs”), whether through Federal legislation, restructurings or a shift in business practices; failure to continue to meet the mortgage insurer eligibility requirements of the GSEs; competition for customers; lenders or investors seeking alternatives to private mortgage insurance; deteriorating economic conditions (including inflation, rising interest rates and other adverse economic trends); the impact of COVID-19 and related economic conditions; 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, 2022 filed with the Securities and Exchange Commission on February 17, 2023, 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 serves the housing finance industry by offering private mortgage insurance, reinsurance, risk management products and title insurance and settlement services to mortgage lenders, borrowers, and investors to support homeownership. Additional information regarding Essent may be found at www.essentgroup.com.

Source: Essent Group Ltd.

 

 

 

 

 

 

Essent Group Ltd. and Subsidiaries

Financial Results and Supplemental Information (Unaudited)

Quarter Ended September 30, 2023

 

 

 

 

 

 

Exhibit A

 

Condensed Consolidated Statements of Comprehensive Income (Unaudited)

Exhibit B

 

Condensed Consolidated Balance Sheets (Unaudited)

Exhibit C

 

Consolidated Historical Quarterly Data

Exhibit D

 

U.S Mortgage Insurance Portfolio Historical Quarterly Data

Exhibit E

 

New Insurance Written – U.S. Mortgage Insurance Portfolio

Exhibit F

 

Insurance in Force and Risk in Force – U.S. Mortgage Insurance Portfolio

Exhibit G

 

Other Risk in Force

Exhibit H

 

U.S. Mortgage Insurance Portfolio Vintage Data

Exhibit I

 

U.S. Mortgage Insurance Portfolio Reinsurance Vintage Data

Exhibit J

 

U.S. Mortgage Insurance Portfolio Geographic Data

Exhibit K

 

Rollforward of Defaults and Reserve for Losses and LAE

Exhibit L

 

Detail of Reserves by Default Delinquency

Exhibit M

 

Investments Available for Sale

Exhibit N

 

U.S. Mortgage Insurance Company Capital

Exhibit O

 

Loss, Expense and Combined Ratios and Reconciliation of Non-GAAP Financial Measures

 

 

 

 

 

 

 

Exhibit A

 

 

 

 

 

 

 

 

Essent Group Ltd. and Subsidiaries

Condensed Consolidated Statements of Comprehensive Income (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

(In thousands, except per share amounts)

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Revenues:

 

 

 

 

 

 

 

Direct premiums written

$

270,868

 

 

$

239,773

 

 

$

759,526

 

 

$

692,687

 

Ceded premiums

 

(30,294

)

 

 

(30,543

)

 

 

(103,431

)

 

 

(73,384

)

Net premiums written

 

240,574

 

 

 

209,230

 

 

 

656,095

 

 

 

619,303

 

Decrease in unearned premiums

 

6,231

 

 

 

(1,296

)

 

 

15,197

 

 

 

15,972

 

Net premiums earned

 

246,805

 

 

 

207,934

 

 

 

671,292

 

 

 

635,275

 

Net investment income

 

47,072

 

 

 

32,594

 

 

 

135,558

 

 

 

86,613

 

Realized investment losses, net

 

(235

)

 

 

175

 

 

 

(2,312

)

 

 

(7,648

)

(Loss) income from other invested assets

 

(3,143

)

 

 

9,617

 

 

 

(10,697

)

 

 

36,275

 

Other income

 

5,609

 

 

 

11,447

 

 

 

18,641

 

 

 

20,272

 

Total revenues

 

296,108

 

 

 

261,767

 

 

 

812,482

 

 

 

770,787

 

 

 

 

 

 

 

 

 

Losses and expenses:

 

 

 

 

 

 

 

Provision (benefit) for losses and LAE

 

10,822

 

 

 

4,252

 

 

 

11,902

 

 

 

(178,805

)

Other underwriting and operating expenses

 

54,814

 

 

 

42,144

 

 

 

145,183

 

 

 

124,838

 

Premiums retained by agents

 

13,175

 

 

 

 

 

 

13,175

 

 

 

 

Interest expense

 

7,854

 

 

 

4,450

 

 

 

22,184

 

 

 

9,563

 

Total losses and expenses

 

86,665

 

 

 

50,846

 

 

 

192,444

 

 

 

(44,404

)

 

 

 

 

 

 

 

 

Income before income taxes

 

209,443

 

 

 

210,921

 

 

 

620,038

 

 

 

815,191

 

Income tax expense

 

31,484

 

 

 

32,870

 

 

 

99,019

 

 

 

131,204

 

Net income

$

177,959

 

 

$

178,051

 

 

$

521,019

 

 

$

683,987

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

Basic

$

1.68

 

 

$

1.67

 

 

$

4.90

 

 

$

6.37

 

Diluted

 

1.66

 

 

 

1.66

 

 

 

4.86

 

 

 

6.35

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

Basic

 

105,979

 

 

 

106,870

 

 

 

106,387

 

 

 

107,314

 

Diluted

 

107,025

 

 

 

107,337

 

 

 

107,232

 

 

 

107,732

 

 

 

 

 

 

 

 

 

Net income

$

177,959

 

 

$

178,051

 

 

$

521,019

 

 

$

683,987

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss):

 

 

 

 

 

 

 

Change in unrealized depreciation of investments

 

(76,248

)

 

 

(137,010

)

 

 

(53,593

)

 

 

(474,284

)

Total other comprehensive loss

 

(76,248

)

 

 

(137,010

)

 

 

(53,593

)

 

 

(474,284

)

Comprehensive income

$

101,711

 

 

$

41,041

 

 

$

467,426

 

 

$

209,703

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exhibit B

 

 

 

 

Essent Group Ltd. and Subsidiaries

Condensed Consolidated Balance Sheets (Unaudited)

 

 

 

 

 

 

September 30,

 

December 31,

(In thousands, except per share amounts)

 

2023

 

 

 

2022

 

Assets

 

 

 

Investments

 

 

 

Fixed maturities available for sale, at fair value

$

4,241,757

 

 

$

4,489,598

 

Short-term investments available for sale, at fair value

 

755,931

 

 

 

252,027

 

Total investments available for sale

 

4,997,688

 

 

 

4,741,625

 

Other invested assets

 

272,619

 

 

 

257,941

 

Total investments

 

5,270,307

 

 

 

4,999,566

 

Cash

 

96,779

 

 

 

81,240

 

Accrued investment income

 

36,651

 

 

 

33,162

 

Accounts receivable

 

68,332

 

 

 

57,399

 

Deferred policy acquisition costs

 

9,375

 

 

 

9,910

 

Property and equipment

 

40,710

 

 

 

19,571

 

Prepaid federal income tax

 

461,386

 

 

 

418,460

 

Goodwill and intangible assets, net

 

64,271

 

 

 

 

Other assets

 

46,389

 

 

 

104,489

 

Total assets

$

6,094,200

 

 

$

5,723,797

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

Liabilities

 

 

 

Reserve for losses and LAE

$

241,333

 

 

$

216,464

 

Unearned premium reserve

 

147,712

 

 

 

162,887

 

Net deferred tax liability

 

329,721

 

 

 

356,810

 

Credit facility borrowings, net of deferred costs

 

421,656

 

 

 

420,864

 

Other accrued liabilities

 

145,771

 

 

 

104,463

 

Total liabilities

 

1,286,193

 

 

 

1,261,488

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

Stockholders’ Equity

 

 

 

Common shares, $0.015 par value:

 

 

 

Authorized – 233,333; issued and outstanding – 106,887 shares in 2023 and 107,683 shares in 2022

 

1,603

 

 

 

1,615

 

Additional paid-in capital

 

1,309,717

 

 

 

1,350,377

 

Accumulated other comprehensive loss

 

(436,383

)

 

 

(382,790

)

Retained earnings

 

3,933,070

 

 

 

3,493,107

 

Total stockholders’ equity

 

4,808,007

 

 

 

4,462,309

 

 

 

 

 

Total liabilities and stockholders’ equity

$

6,094,200

 

 

$

5,723,797

 

 

 

 

 

Return on average equity (1)

 

15.0

%

 

 

19.1

%

 

 

 

 

(1) The 2023 return on average equity is calculated by dividing annualized year-to-date 2023 net income by average equity. The 2022 return on average equity is calculated by dividing full year 2022 net income by average equity.

 

 

 

 

 

 

 

 

 

 

Exhibit C

Essent Group Ltd. and Subsidiaries

Supplemental Information

Consolidated Historical Quarterly Data

 

 

 

 

 

 

 

 

 

 

 

 

 

2023

 

2022

Selected Income Statement Data

 

September 30

 

June 30

 

March 31

 

December 31

 

September 30

(In thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

Net premiums earned:

 

 

 

 

 

 

 

 

 

 

U.S. Mortgage Insurance Portfolio

 

$

209,351

 

 

$

195,502

 

 

$

196,565

 

 

$

192,670

 

 

$

194,272

 

GSE and other risk share

 

 

16,850

 

 

 

17,727

 

 

 

14,693

 

 

 

14,582

 

 

 

13,662

 

Title insurance

 

 

20,604

 

 

 

 

 

 

 

 

 

 

 

 

 

Net premiums earned

 

 

246,805

 

 

 

213,229

 

 

 

211,258

 

 

 

207,252

 

 

 

207,934

 

Net investment income

 

 

47,072

 

 

 

45,250

 

 

 

43,236

 

 

 

37,796

 

 

 

32,594

 

Realized investment (losses) gains, net

 

 

(235

)

 

 

(1,589

)

 

 

(488

)

 

 

(5,524

)

 

 

175

 

(Loss) income from other invested assets

 

 

(3,143

)

 

 

(4,852

)

 

 

(2,702

)

 

 

(7,599

)

 

 

9,617

 

Other income (loss) (1)

 

 

5,609

 

 

 

8,090

 

 

 

4,942

 

 

 

(1,888

)

 

 

11,447

 

Total revenues

 

 

296,108

 

 

 

260,128

 

 

 

256,246

 

 

 

230,037

 

 

 

261,767

 

 

 

 

 

 

 

 

 

 

 

 

Losses and expenses:

 

 

 

 

 

 

 

 

 

 

Provision (benefit) for losses and LAE

 

 

10,822

 

 

 

1,260

 

 

 

(180

)

 

 

4,101

 

 

 

4,252

 

Other underwriting and operating expenses

 

 

54,814

 

 

 

42,174

 

 

 

48,195

 

 

 

46,895

 

 

 

42,144

 

Premiums retained by agents

 

 

13,175

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

7,854

 

 

 

7,394

 

 

 

6,936

 

 

 

6,045

 

 

 

4,450

 

Total losses and expenses

 

 

86,665

 

 

 

50,828

 

 

 

54,951

 

 

 

57,041

 

 

 

50,846

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

209,443

 

 

 

209,300

 

 

 

201,295

 

 

 

172,996

 

 

 

210,921

 

Income tax expense (2)

 

 

31,484

 

 

 

37,067

 

 

 

30,468

 

 

 

25,630

 

 

 

32,870

 

Net income

 

$

177,959

 

 

$

172,233

 

 

$

170,827

 

 

$

147,366

 

 

$

178,051

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

Basic

 

$

1.68

 

 

$

1.62

 

 

$

1.60

 

 

$

1.38

 

 

$

1.67

 

Diluted

 

 

1.66

 

 

 

1.61

 

 

 

1.59

 

 

 

1.37

 

 

 

1.66

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

Basic

 

 

105,979

 

 

 

106,249

 

 

 

106,943

 

 

 

106,881

 

 

 

106,870

 

Diluted

 

 

107,025

 

 

 

107,093

 

 

 

107,585

 

 

 

107,419

 

 

 

107,337

 

 

 

 

 

 

 

 

 

 

 

 

Book value per share

 

$

44.98

 

 

$

44.24

 

 

$

43.18

 

 

$

41.44

 

 

$

39.87

 

Return on average equity (annualized)

 

 

14.9

%

 

 

14.7

%

 

 

15.0

%

 

 

13.5

%

 

 

16.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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)

 

 

7.07

%

 

 

6.87

%

 

 

6.52

%

 

 

6.02

%

 

 

4.39

%

Debt-to-capital

 

 

8.12

%

 

 

8.24

%

 

 

8.38

%

 

 

8.70

%

 

 

9.01

%

 

 

 

 

 

 

 

 

 

 

 

(1) Other income includes net favorable (unfavorable) changes in the fair value of embedded derivatives associated with certain of our third-party reinsurance agreements, which for the quarters ended September 30, 2023, June 30, 2023, March 31, 2023, December 31, 2022, and September 30, 2022 was ($898), $2,726, ($368), ($6,515), and $5,177, respectively.

(2) Income tax expense for the quarters ended September 30, 2023, June 30, 2023, March 31, 2023, December 31, 2022 and September 30, 2022 includes ($763), $(888), ($368), ($4,122), and $2,925 respectively, of discrete tax (benefit) expense associated with realized and unrealized gains and losses. Income tax expense for the quarter ended June 30, 2023 also includes $5,295 of net discrete tax expense associated with prior year tax returns.

 

 

 

 

 

 

 

Exhibit D

Essent Group Ltd. and Subsidiaries

Supplemental Information

U.S Mortgage Insurance Portfolio Historical Quarterly Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2023

 

2022

Other Data:

 

September 30

 

June 30

 

March 31

 

December 31

 

September 30

($ in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Mortgage Insurance Portfolio

 

 

 

 

 

 

 

 

Flow:

 

 

 

 

 

 

 

 

 

 

New insurance written

 

$

12,505,823

 

 

$

13,498,080

 

 

$

12,893,789

 

 

$

13,011,432

 

 

$

17,112,017

 

New risk written

 

 

3,458,467

 

 

 

3,726,513

 

 

 

3,548,015

 

 

 

3,522,726

 

 

 

4,570,699

 

 

 

 

 

 

 

 

 

 

 

 

Bulk:

 

 

 

 

 

 

 

 

 

 

New insurance written

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

New risk written

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total:

 

 

 

 

 

 

 

 

 

 

New insurance written

 

$

12,505,823

 

 

$

13,498,080

 

 

$

12,893,789

 

 

$

13,011,432

 

 

$

17,112,017

 

New risk written

 

$

3,458,467

 

 

$

3,726,513

 

 

$

3,548,015

 

 

$

3,522,726

 

 

$

4,570,669

 

 

 

 

 

 

 

 

 

 

 

 

Average insurance in force

 

$

237,270,093

 

 

$

233,484,941

 

 

$

228,885,174

 

 

$

224,840,675

 

 

$

219,280,350

 

Insurance in force (end of period)

 

$

238,661,612

 

 

$

235,649,884

 

 

$

231,537,417

 

 

$

227,062,055

 

 

$

222,542,569

 

Gross risk in force (end of period) (1)

 

$

63,605,057

 

 

$

62,403,400

 

 

$

60,879,979

 

 

$

59,276,489

 

 

$

57,743,091

 

Risk in force (end of period)

 

$

53,920,308

 

 

$

53,290,643

 

 

$

51,469,312

 

 

$

49,903,626

 

 

$

48,690,571

 

Policies in force

 

 

825,248

 

 

 

821,690

 

 

 

815,751

 

 

 

808,596

 

 

 

800,745

 

Weighted average coverage (2)

 

 

26.7

%

 

 

26.5

%

 

 

26.3

%

 

 

26.1

%

 

 

25.9

%

Annual persistency

 

 

86.6

%

 

 

85.8

%

 

 

84.4

%

 

 

82.1

%

 

 

77.9

%

 

 

 

 

 

 

 

 

 

 

 

Loans in default (count)

 

 

13,391

 

 

 

12,480

 

 

 

12,773

 

 

 

13,433

 

 

 

12,435

 

Percentage of loans in default

 

 

1.62

%

 

 

1.52

%

 

 

1.57

%

 

 

1.66

%

 

 

1.55

%

 

 

 

 

 

 

 

 

 

 

 

U.S. Mortgage Insurance Portfolio premium rate:

 

 

 

 

 

 

 

 

Base average premium rate (3)

 

 

0.40

%

 

 

0.40

%

 

 

0.40

%

 

 

0.40

%

 

 

0.40

%

Single premium cancellations (4)

 

 

%

 

 

%

 

 

%

 

 

%

 

 

0.01

%

Gross average premium rate

 

 

0.40

%

 

 

0.40

%

 

 

0.40

%

 

 

0.40

%

 

 

0.41

%

Ceded premiums

 

 

(0.05

%)

 

 

(0.07

%)

 

 

(0.06

%)

 

 

(0.06

%)

 

 

(0.06

%)

Net average premium rate

 

 

0.35

%

 

 

0.33

%

 

 

0.34

%

 

 

0.34

%

 

 

0.35

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

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

(3) Base average premium rate is calculated by dividing annualized base premiums earned by average insurance in force for the period.

(4) Single premium cancellations is calculated by dividing annualized premiums on the cancellation of non-refundable single premium policies by average insurance in force for the period.

 

 

 

 

 

 

 

 

 

 

Exhibit E

 

 

 

 

 

 

 

 

 

 

 

 

Essent Group Ltd. and Subsidiaries

Supplemental Information – U.S. Mortgage Insurance Portfolio

New Insurance Written: Flow

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NIW by Credit Score

 

Three Months Ended

 

Nine Months Ended

 

September 30, 2023

 

September 30, 2022

 

September 30, 2023

 

September 30, 2022

($ in thousands)

 

 

 

 

 

 

 

 

 

 

 

>=760

$

5,212,343

 

41.8

%

 

$

6,976,123

 

40.8

%

 

$

15,473,191

 

39.8

%

 

$

20,942,108

 

41.8

%

740-759

 

2,205,066

 

17.6

 

 

 

2,965,115

 

17.3

 

 

 

7,031,821

 

18.1

 

 

 

8,499,739

 

17.0

 

720-739

 

1,911,320

 

15.3

 

 

 

2,788,573

 

16.3

 

 

 

6,310,564

 

16.2

 

 

 

7,885,166

 

15.8

 

700-719

 

1,867,510

 

14.9

 

 

 

2,277,251

 

13.3

 

 

 

5,892,704

 

15.1

 

 

 

6,452,721

 

12.9

 

680-699

 

891,471

 

7.1

 

 

 

1,476,982

 

8.6

 

 

 

3,024,347

 

7.8

 

 

 

4,409,944

 

8.8

 

<=679

 

418,113

 

3.3

 

 

 

627,973

 

3.7

 

 

 

1,165,065

 

3.0

 

 

 

1,859,956

 

3.7

 

Total

$

12,505,823

 

100.0

%

 

$

17,112,017

 

100.0

%

 

$

38,897,692

 

100.0

%

 

$

50,049,634

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average credit score

 

747

 

 

 

 

746

 

 

 

 

746

 

 

 

 

747

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NIW by LTV

 

Three Months Ended

 

Nine Months Ended

 

September 30, 2023

 

September 30, 2022

 

September 30, 2023

 

September 30, 2022

($ in thousands)

 

 

 

 

 

 

 

 

 

 

 

85.00% and below

$

849,250

 

6.7

%

 

$

1,618,912

 

9.5

%

 

$

2,801,011

 

7.2

%

 

$

4,556,205

 

9.1

%

85.01% to 90.00%

 

2,445,924

 

19.6

 

 

 

4,753,686

 

27.8

 

 

 

7,951,062

 

20.4

 

 

 

13,657,345

 

27.3

 

90.01% to 95.00%

 

6,614,050

 

52.9

 

 

 

9,171,095

 

53.5

 

 

 

21,383,696

 

55.0

 

 

 

26,461,665

 

52.9

 

95.01% and above

 

2,596,599

 

20.8

 

 

 

1,568,324

 

9.2

 

 

 

6,761,923

 

17.4

 

 

 

5,374,419

 

10.7

 

Total

$

12,505,823

 

100.0

%

 

$

17,112,017

 

100.0

%

 

$

38,897,692

 

100.0

%

 

$

50,049,634

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average LTV

 

93

%

 

 

 

93

%

 

 

 

93

%

 

 

 

93

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NIW by Product

 

Three Months Ended

 

Nine Months Ended

 

September 30, 2023

 

September 30, 2022

 

September 30, 2023

 

September 30, 2022

Single Premium policies

 

2.8

%

 

 

8.2

%

 

 

3.8

%

 

 

5.9

%

Monthly Premium policies

 

97.2

 

 

 

91.8

 

 

 

96.2

 

 

 

94.1

 

 

 

100.0

%

 

 

100.0

%

 

 

100.0

%

 

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NIW by Purchase vs. Refinance

 

Three Months Ended

 

Nine Months Ended

 

September 30, 2023

 

September 30, 2022

 

September 30, 2023

 

September 30, 2022

Purchase

 

99.0

%

 

 

98.7

%

 

 

98.8

%

 

 

97.2

%

Refinance

 

1.0

 

 

 

1.3

 

 

 

1.2

 

 

 

2.8

 

 

 

100.0

%

 

 

100.0

%

 

 

100.0

%

 

 

100.0

%

 

 

 

 

 

 

 

 

 

 

Exhibit F

 

 

 

 

 

 

 

 

 

 

Essent Group Ltd. and Subsidiaries

Supplemental Information

Insurance in Force and Risk in Force – U.S. Mortgage Insurance Portfolio

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Portfolio by Credit Score

IIF by FICO score

September 30, 2023

 

June 30, 2023

 

September 30, 2022

($ in thousands)

 

 

 

 

 

 

 

 

>=760

 

$

97,027,348

 

40.7

%

 

$

95,925,520

 

40.8

%

 

$

92,309,692

 

41.5

%

740-759

 

 

41,362,480

 

17.3

 

 

 

40,733,799

 

17.3

 

 

 

37,821,201

 

17.0

 

720-739

 

 

37,297,809

 

15.6

 

 

 

36,791,104

 

15.6

 

 

 

33,910,646

 

15.2

 

700-719

 

 

31,674,346

 

13.3

 

 

 

30,970,132

 

13.1

 

 

 

28,263,518

 

12.7

 

680-699

 

 

19,850,176

 

8.3

 

 

 

19,667,866

 

8.3

 

 

 

18,351,570

 

8.2

 

<=679

 

 

11,449,453

 

4.8

 

 

 

11,561,463

 

4.9

 

 

 

11,885,942

 

5.4

 

Total

$

238,661,612

 

100.0

%

 

$

235,649,884

 

100.0

%

 

$

222,542,569

 

100.0

%

 

 

 

 

 

 

 

 

 

 

Weighted average credit score

 

746

 

 

 

 

746

 

 

 

 

746

 

 

 

 

 

 

 

 

 

 

 

 

Gross RIF by FICO score

September 30, 2023

 

June 30, 2023

 

September 30, 2022

($ in thousands)

 

 

 

 

 

 

 

 

>=760

 

$

25,594,262

 

40.1

%

 

$

25,138,762

 

40.3

%

 

$

23,743,335

 

41.1

%

740-759

 

 

11,165,727

 

17.6

 

 

 

10,922,780

 

17.5

 

 

 

9,920,331

 

17.2

 

720-739

 

 

10,090,889

 

15.9

 

 

 

9,896,425

 

15.9

 

 

 

8,934,327

 

15.5

 

700-719

 

 

8,568,811

 

13.5

 

 

 

8,319,353

 

13.3

 

 

 

7,412,542

 

12.8

 

680-699

 

 

5,327,434

 

8.4

 

 

 

5,248,349

 

8.4

 

 

 

4,801,986

 

8.3

 

<=679

 

 

2,857,934

 

4.5

 

 

 

2,877,731

 

4.6

 

 

 

2,930,570

 

5.1

 

Total

$

63,605,057

 

100.0

%

 

$

62,403,400

 

100.0

%

 

$

57,743,091

 

100.0

%

 

 

 

 

 

 

 

 

 

 

Portfolio by LTV

IIF by LTV

September 30, 2023

 

June 30, 2023

 

September 30, 2022

($ in thousands)

 

 

 

 

 

 

 

 

85.00% and below

 

$

21,226,685

 

8.9

%

 

$

22,427,649

 

9.5

%

 

$

25,121,995

 

11.3

%

85.01% to 90.00%

 

 

63,374,562

 

26.6

 

 

 

63,562,258

 

27.0

 

 

 

62,963,331

 

28.3

 

90.01% to 95.00%

 

 

118,461,030

 

49.6

 

 

 

115,768,826

 

49.1

 

 

 

103,794,020

 

46.6

 

95.01% and above

 

 

35,599,335

 

14.9

 

 

 

33,891,151

 

14.4

 

 

 

30,663,223

 

13.8

 

Total

$

238,661,612

 

100.0

%

 

$

235,649,884

 

100.0

%

 

$

222,542,569

 

100.0

%

 

 

 

 

 

 

 

 

 

 

Weighted average LTV

 

93

%

 

 

 

93

%

 

 

 

92

%

 

 

 

 

 

 

 

 

Gross RIF by LTV

September 30, 2023

 

June 30, 2023

 

September 30, 2022

($ in thousands)

 

 

 

 

 

 

 

 

85.00% and below

 

$

2,525,753

 

4.0

%

 

$

2,667,981

 

4.3

%

 

$

2,975,898

 

5.2

%

85.01% to 90.00%

 

 

15,566,095

 

24.5

 

 

 

15,583,198

 

25.0

 

 

 

15,317,449

 

26.5

 

90.01% to 95.00%

 

 

34,848,762

 

54.8

 

 

 

34,026,320

 

54.5

 

 

 

30,388,328

 

52.6

 

95.01% and above

 

 

10,664,447

 

16.7

 

 

 

10,125,901

 

16.2

 

 

 

9,061,416

 

15.7

 

Total

$

63,605,057

 

100.0

%

 

$

62,403,400

 

100.0

%

 

$

57,743,091

 

100.0

%

 

 

 

 

 

 

 

 

 

 

Portfolio by Loan Amortization Period

IIF by Loan Amortization Period

September 30, 2023

 

June 30, 2023

 

September 30, 2022

($ in thousands)

 

 

 

 

 

 

 

 

FRM 30 years and higher

 

$

232,186,999

 

97.3

%

 

$

228,745,641

 

97.1

%

 

$

214,688,363

 

96.5

%

FRM 20-25 years

 

 

1,910,610

 

0.8

 

 

 

2,124,690

 

0.9

 

 

 

2,859,734

 

1.3

 

FRM 15 years

 

 

1,719,467

 

0.7

 

 

 

1,953,448

 

0.8

 

 

 

2,903,355

 

1.3

 

ARM 5 years and higher

 

 

2,844,536

 

1.2

 

 

 

2,826,105

 

1.2

 

 

 

2,091,117

 

0.9

 

Total

$

238,661,612

 

100.0

%

 

$

235,649,884

 

100.0

%

 

$

222,542,569

 

100.0

%

 

 

 

 

 

 

 

 

 

 

Exhibit G

 

 

 

 

 

 

 

 

 

 

 

Essent Group Ltd. and Subsidiaries

Supplemental Information

Other Risk in Force

 

 

 

 

 

 

 

 

 

 

 

 

 

2023

 

2022

($ in thousands)

 

September 30

 

June 30

 

March 31

 

December 31

 

September 30

GSE and other risk share (1):

 

 

 

 

 

 

 

 

 

 

Risk in Force

 

$

2,247,393

 

 

$

2,276,702

 

 

$

2,098,033

 

 

$

2,030,571

 

 

$

2,026,895

 

Reserve for losses and LAE

 

$

54

 

 

$

55

 

 

$

65

 

 

$

74

 

 

$

102

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average credit score

 

 

749

 

 

 

749

 

 

 

749

 

 

 

749

 

 

 

748

 

Weighted average LTV

 

 

82

%

 

 

83

%

 

 

83

%

 

 

83

%

 

 

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.

 

Contacts

Media Contact

610.230.0556

media@essentgroup.com

Investor Relations Contact

Philip Stefano

Vice President, Investor Relations

855-809-ESNT

ir@essentgroup.com

Read full story here

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