HAMILTON, Bermuda–(BUSINESS WIRE)–Essent Group Ltd. (NYSE: ESNT) today reported net income for the quarter ended September 30, 2020 of $124.5 million or $1.11 per diluted share, compared to $144.6 million or $1.47 per diluted share for the quarter ended September 30, 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 December 10, 2020, to shareholders of record on December 1, 2020.
“We are encouraged by the increase in our third quarter earnings as compared to the second quarter due to a lower loss provision driven by a decrease in the number of new COVID-19 default notices received on our insured portfolio,” said Mark A. Casale, Chairman and Chief Executive Officer. “Although our outlook on the economy remains cautious, we are pleased with the resilience and strength that housing has demonstrated throughout the year which has been a bright spot in the economy and positive for high credit quality growth in our business.”
Financial Highlights:
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 3494393 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 3494393.
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.
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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, 2020 |
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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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Defaults, Reserve for Losses and LAE, and Claims |
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Exhibit K |
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Investments Available for Sale |
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Exhibit L |
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Insurance Company Capital |
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Exhibit M |
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Reconciliation of Non-GAAP Financial Measure – Adjusted Book Value per Share |
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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) |
2020 |
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2019 |
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2020 |
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2019 |
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Revenues: |
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Direct premiums written |
$ |
243,390 |
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$ |
208,567 |
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$ |
677,414 |
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$ |
589,081 |
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Ceded premiums |
(21,167) |
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(10,263) |
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(57,544) |
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(24,729) |
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Net premiums written |
222,223 |
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198,304 |
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619,870 |
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564,352 |
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Decrease in unearned premiums |
35 |
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5,169 |
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20,355 |
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5,402 |
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Net premiums earned |
222,258 |
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203,473 |
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640,225 |
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569,754 |
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Net investment income |
18,639 |
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21,104 |
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59,138 |
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61,565 |
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Realized investment gains, net |
267 |
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1,153 |
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2,133 |
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2,396 |
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Other income |
1,874 |
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657 |
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6,459 |
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5,090 |
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Total revenues |
243,038 |
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226,387 |
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707,955 |
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638,805 |
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Losses and expenses: |
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Provision for losses and LAE |
55,280 |
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9,990 |
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239,220 |
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22,057 |
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Other underwriting and operating expenses |
37,100 |
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41,588 |
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117,866 |
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124,138 |
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Interest expense |
2,227 |
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2,584 |
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6,925 |
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7,933 |
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Total losses and expenses |
94,607 |
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54,162 |
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364,011 |
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154,128 |
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Income before income taxes |
148,431 |
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172,225 |
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343,944 |
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484,677 |
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Income tax expense |
23,895 |
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27,595 |
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54,505 |
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75,922 |
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Net income |
$ |
124,536 |
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$ |
144,630 |
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$ |
289,439 |
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$ |
408,755 |
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Earnings per share: |
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Basic |
$ |
1.11 |
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$ |
1.48 |
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$ |
2.78 |
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$ |
4.18 |
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Diluted |
1.11 |
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1.47 |
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2.77 |
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4.16 |
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Weighted average shares outstanding: |
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Basic |
111,908 |
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97,822 |
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104,147 |
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97,739 |
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Diluted |
112,134 |
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98,257 |
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104,383 |
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98,178 |
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Net income |
$ |
124,536 |
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$ |
144,630 |
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$ |
289,439 |
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$ |
408,755 |
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Other comprehensive income (loss): |
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Change in unrealized appreciation of investments |
12,036 |
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17,367 |
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76,247 |
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91,720 |
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Total other comprehensive income |
12,036 |
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17,367 |
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76,247 |
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91,720 |
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Comprehensive income |
$ |
136,572 |
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$ |
161,997 |
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$ |
365,686 |
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$ |
500,475 |
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Loss ratio |
24.9 |
% |
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4.9 |
% |
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37.4 |
% |
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3.9 |
% |
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Expense ratio |
16.7 |
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20.4 |
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18.4 |
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21.8 |
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Combined ratio |
41.6 |
% |
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25.3 |
% |
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55.8 |
% |
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25.7 |
% |
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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) |
2020 |
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2019 |
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Assets |
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Investments |
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Fixed maturities available for sale, at fair value |
$ |
3,549,397 |
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$ |
3,035,385 |
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Short-term investments available for sale, at fair value |
952,952 |
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315,362 |
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Total investments available for sale |
4,502,349 |
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3,350,747 |
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Other invested assets |
83,063 |
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78,873 |
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Total investments |
4,585,412 |
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3,429,620 |
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Cash |
118,691 |
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71,350 |
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Accrued investment income |
19,152 |
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18,535 |
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Accounts receivable |
45,434 |
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40,655 |
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Deferred policy acquisition costs |
16,704 |
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15,705 |
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Property and equipment |
14,596 |
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17,308 |
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Prepaid federal income tax |
279,136 |
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261,885 |
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Other assets |
27,963 |
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18,367 |
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Total assets |
$ |
5,107,088 |
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$ |
3,873,425 |
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Liabilities and Stockholders’ Equity |
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Liabilities |
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Reserve for losses and LAE |
$ |
307,737 |
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$ |
69,362 |
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Unearned premium reserve |
258,532 |
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278,887 |
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Net deferred tax liability |
281,506 |
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249,620 |
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Credit facility borrowings, net of deferred costs |
424,658 |
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224,237 |
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Other accrued liabilities |
88,111 |
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66,474 |
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Total liabilities |
1,360,544 |
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888,580 |
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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 – 112,423 shares in 2020 and 98,394 shares in 2019 |
1,686 |
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1,476 |
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Additional paid-in capital |
1,566,448 |
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1,118,655 |
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Accumulated other comprehensive income |
132,434 |
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56,187 |
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Retained earnings |
2,045,976 |
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1,808,527 |
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Total stockholders’ equity |
3,746,544 |
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2,984,845 |
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Total liabilities and stockholders’ equity |
$ |
5,107,088 |
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$ |
3,873,425 |
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Return on average equity (1) |
11.5 |
% |
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20.8 |
% |
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(1) The 2020 return on average equity is calculated by dividing annualized year-to-date 2020 net income by average equity. The 2019 return on average equity is calculated by dividing full year 2019 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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2020 |
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2019 |
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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 |
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September 30 |
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June 30 |
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March 31 |
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(In thousands, except per share amounts) |
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Revenues: |
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Net premiums written |
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$ |
222,223 |
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$ |
205,904 |
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$ |
191,743 |
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$ |
196,493 |
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$ |
198,304 |
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$ |
188,404 |
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$ |
177,644 |
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Net premiums earned (1) |
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222,258 |
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|
211,471 |
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|
206,496 |
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|
207,671 |
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203,473 |
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|
188,490 |
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|
177,791 |
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Other revenues (2) |
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20,780 |
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|
24,606 |
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22,344 |
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21,091 |
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22,914 |
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23,402 |
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|
22,735 |
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Total revenues |
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243,038 |
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|
236,077 |
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228,840 |
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|
228,762 |
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226,387 |
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211,892 |
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200,526 |
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Losses and expenses: |
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Provision for losses and LAE |
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55,280 |
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|
175,877 |
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|
8,063 |
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|
10,929 |
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|
9,990 |
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4,960 |
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|
7,107 |
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Other underwriting and operating expenses |
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37,100 |
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|
38,819 |
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41,947 |
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|
41,231 |
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|
41,588 |
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41,520 |
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|
41,030 |
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Interest expense |
|
2,227 |
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|
2,566 |
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|
2,132 |
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|
2,218 |
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|
2,584 |
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|
2,679 |
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|
2,670 |
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Total losses and expenses |
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94,607 |
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|
217,262 |
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|
52,142 |
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|
54,378 |
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|
54,162 |
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|
49,159 |
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|
50,807 |
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Income before income taxes |
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148,431 |
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|
18,815 |
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|
176,698 |
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|
174,384 |
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|
172,225 |
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|
162,733 |
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|
149,719 |
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Income tax expense (3) |
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23,895 |
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|
3,435 |
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|
27,175 |
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|
27,426 |
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|
27,595 |
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|
26,328 |
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|
21,999 |
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Net income |
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$ |
124,536 |
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$ |
15,380 |
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|
$ |
149,523 |
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|
$ |
146,958 |
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|
$ |
144,630 |
|
|
$ |
136,405 |
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$ |
127,720 |
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Earnings per share: |
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Basic |
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$ |
1.11 |
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$ |
0.15 |
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$ |
1.53 |
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$ |
1.50 |
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$ |
1.48 |
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$ |
1.39 |
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$ |
1.31 |
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Diluted |
|
1.11 |
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|
0.15 |
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|
1.52 |
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|
1.49 |
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|
1.47 |
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|
1.39 |
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|
1.30 |
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Weighted average shares outstanding: |
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Basic |
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111,908 |
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|
102,500 |
|
|
97,949 |
|
|
97,830 |
|
|
97,822 |
|
|
97,798 |
|
|
97,595 |
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Diluted |
|
112,134 |
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|
102,605 |
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|
98,326 |
|
|
98,376 |
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|
98,257 |
|
|
98,170 |
|
|
98,104 |
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|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Other Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Loss ratio (4) |
|
24.9 |
% |
|
83.2 |
% |
|
3.9 |
% |
|
5.3 |
% |
|
4.9 |
% |
|
2.6 |
% |
|
4.0 |
% |
|||||||
|
Expense ratio (5) |
|
16.7 |
|
|
18.4 |
|
|
20.3 |
|
|
19.9 |
|
|
20.4 |
|
|
22.0 |
|
|
23.1 |
|
|||||||
|
Combined ratio |
|
41.6 |
% |
|
101.5 |
% |
|
24.2 |
% |
|
25.1 |
% |
|
25.3 |
% |
|
24.7 |
% |
|
27.1 |
% |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Return on average equity (annualized) |
|
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. Other revenues for the three months ended September 30, 2020, June 30, 2020, March 31, 2020, December 31, 2019, September 30, 2019, June 30, 2019 and March 31, 2019 include net favorable (unfavorable) changes of ($677), $2,502, ($4,200), ($3,585), ($760), $1,160 and $1,424, respectively, in the fair value of these embedded derivatives. |
||||||||||||||||||||||||||||
|
(3) Income tax expense for the three months ended March 31, 2020 and 2019 was reduced by $620 and $1,956, respectively, of excess tax benefits associated with the vesting of common shares and common share units during each period. |
||||||||||||||||||||||||||||
|
(4) Loss ratio is calculated by dividing the provision for losses and LAE by net premiums earned. |
||||||||||||||||||||||||||||
|
(5) Expense ratio is calculated by dividing other underwriting and operating expenses by net premiums earned. |
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Exhibit C, continued |
||||||||||||||||
|
Essent Group Ltd. and Subsidiaries |
||||||||||||||||||||||||||||
|
Supplemental Information |
||||||||||||||||||||||||||||
|
Historical Quarterly Data |
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
|
2020 |
|
2019 |
||||||||||||||||||||||||
|
Other Data, continued: |
|
September 30 |
|
June 30 |
|
March 31 |
|
December 31 |
|
September 30 |
|
June 30 |
|
March 31 |
||||||||||||||
|
($ in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
U.S. Mortgage Insurance Portfolio |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Flow: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
New insurance written |
|
$ |
36,664,583 |
|
|
$ |
28,163,212 |
|
|
$ |
13,549,299 |
|
|
$ |
15,839,836 |
|
|
$ |
18,719,876 |
|
|
$ |
17,973,505 |
|
|
$ |
10,945,307 |
|
|
New risk written |
|
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) |
|
0.51 |
% |
|
0.53 |
% |
|
0.51 |
% |
|
0.51 |
% |
|
0.52 |
% |
|
0.51 |
% |
|
0.50 |
% |
|||||||
|
Average net premium rate (7) |
|
0.46 |
% |
|
0.48 |
% |
|
0.48 |
% |
|
0.49 |
% |
|
0.49 |
% |
|
0.49 |
% |
|
0.48 |
% |
|||||||
|
New insurance written |
|
$ |
36,664,583 |
|
|
$ |
28,163,212 |
|
|
$ |
13,549,450 |
|
|
$ |
15,839,836 |
|
|
$ |
18,726,009 |
|
|
$ |
18,003,029 |
|
|
$ |
11,000,309 |
|
|
New risk written |
|
$ |
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) |
|
$ |
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) |
|
$ |
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) |
|
$ |
41,219,216 |
|
|
$ |
39,113,879 |
|
|
$ |
38,290,022 |
|
|
$ |
38,947,857 |
|
|
$ |
38,784,584 |
|
|
$ |
37,034,687 |
|
|
$ |
34,744,417 |
|
|
Policies in force |
|
781,836 |
|
|
733,651 |
|
|
706,714 |
|
|
702,925 |
|
|
693,085 |
|
|
666,705 |
|
|
629,808 |
|
|||||||
|
Weighted average coverage (9) |
|
25.1 |
% |
|
25.2 |
% |
|
25.3 |
% |
|
25.2 |
% |
|
25.2 |
% |
|
25.1 |
% |
|
25.1 |
% |
|||||||
|
Annual persistency |
|
64.2 |
% |
|
67.9 |
% |
|
73.9 |
% |
|
77.5 |
% |
|
82.1 |
% |
|
84.8 |
% |
|
85.1 |
% |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Loans in default (count) |
|
35,464 |
|
|
38,068 |
|
|
5,841 |
|
|
5,947 |
|
|
5,232 |
|
|
4,405 |
|
|
4,096 |
|
|||||||
|
Percentage of loans in default |
|
4.54 |
% |
|
5.19 |
% |
|
0.83 |
% |
|
0.85 |
% |
|
0.75 |
% |
|
0.66 |
% |
|
0.65 |
% |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Other Risk in Force |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
GSE and other risk share (10) |
|
$ |
1,216,353 |
|
|
$ |
1,031,699 |
|
|
$ |
1,100,966 |
|
|
$ |
895,374 |
|
|
$ |
849,184 |
|
|
$ |
802,530 |
|
|
$ |
771,175 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Credit Facility |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Borrowings outstanding |
|
$ |
425,000 |
|
|
$ |
425,000 |
|
|
$ |
425,000 |
|
|
$ |
225,000 |
|
|
$ |
225,000 |
|
|
$ |
225,000 |
|
|
$ |
225,000 |
|
|
Undrawn committed capacity |
|
$ |
75,000 |
|
|
$ |
75,000 |
|
|
$ |
75,000 |
|
|
$ |
275,000 |
|
|
$ |
275,000 |
|
|
$ |
275,000 |
|
|
$ |
275,000 |
|
|
Weighted average interest rate (end of period) |
|
1.90 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
(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 |
|
Nine Months Ended |
||||||||||||||||||||
|
|
September 30, 2020 |
|
September 30, 2019 |
|
September 30, 2020 |
|
September 30, 2019 |
||||||||||||||||
|
($ in thousands) |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
>=760 |
$ |
16,887,062 |
|
46.1 |
% |
|
$ |
7,467,620 |
|
39.9 |
% |
|
$ |
34,706,705 |
|
44.3 |
% |
|
$ |
19,251,937 |
|
40.4 |
% |
|
740-759 |
6,557,520 |
|
17.9 |
|
|
3,286,476 |
|
17.5 |
|
|
14,316,011 |
|
18.3 |
|
|
8,272,424 |
|
17.4 |
|
||||
|
720-739 |
5,238,462 |
|
14.3 |
|
|
2,800,181 |
|
15.0 |
|
|
11,609,703 |
|
14.8 |
|
|
6,938,374 |
|
14.6 |
|
||||
|
700-719 |
4,187,254 |
|
11.4 |
|
|
2,202,659 |
|
11.8 |
|
|
9,024,266 |
|
11.5 |
|
|
5,695,567 |
|
11.9 |
|
||||
|
680-699 |
2,131,994 |
|
5.8 |
|
|
1,570,179 |
|
8.4 |
|
|
5,127,817 |
|
6.5 |
|
|
4,013,107 |
|
8.4 |
|
||||
|
<=679 |
1,662,291 |
|
4.5 |
|
|
1,392,761 |
|
7.4 |
|
|
3,592,592 |
|
4.6 |
|
|
3,467,279 |
|
7.3 |
|
||||
|
Total |
$ |
36,664,583 |
|
100.0 |
% |
|
$ |
18,719,876 |
|
100.0 |
% |
|
$ |
78,377,094 |
|
100.0 |
% |
|
$ |
47,638,688 |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Weighted average credit score |
751 |
|
|
|
744 |
|
|
|
749 |
|
|
|
744 |
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
NIW by LTV |
|||||||||||||||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||||||
|
|
September 30, 2020 |
|
September 30, 2019 |
|
September 30, 2020 |
|
September 30, 2019 |
||||||||||||||||
|
($ in thousands) |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
85.00% and below |
$ |
6,815,158 |
|
18.6 |
% |
|
$ |
2,126,071 |
|
11.4 |
% |
|
$ |
13,807,437 |
|
17.6 |
% |
|
$ |
5,789,334 |
|
12.2 |
% |
|
85.01% to 90.00% |
11,324,610 |
|
30.9 |
|
|
5,288,027 |
|
28.2 |
|
|
24,391,509 |
|
31.1 |
|
|
13,089,688 |
|
27.5 |
|
||||
|
90.01% to 95.00% |
14,781,544 |
|
40.3 |
|
|
7,896,661 |
|
42.2 |
|
|
31,382,298 |
|
40.1 |
|
|
20,081,707 |
|
42.1 |
|
||||
|
95.01% and above |
3,743,271 |
|
10.2 |
|
|
3,409,117 |
|
18.2 |
|
|
8,795,850 |
|
11.2 |
|
|
8,677,959 |
|
18.2 |
|
||||
|
Total |
$ |
36,664,583 |
|
100.0 |
% |
|
$ |
18,719,876 |
|
100.0 |
% |
|
$ |
78,377,094 |
|
100.0 |
% |
|
$ |
47,638,688 |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Weighted average LTV |
91 |
% |
|
|
92 |
% |
|
|
91 |
% |
|
|
92 |
% |
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
NIW by Product |
|||||||||||||||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||||||
|
|
September 30, 2020 |
|
September 30, 2019 |
|
September 30, 2020 |
|
September 30, 2019 |
||||||||||||||||
|
Single Premium policies |
|
8.6 |
% |
|
|
10.8 |
% |
|
|
9.5 |
% |
|
|
11.3 |
% |
||||||||
|
Monthly Premium policies |
|
91.4 |
|
|
|
89.2 |
|
|
|
90.5 |
|
|
|
88.7 |
|
||||||||
|
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
100.0 |
% |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
NIW by Purchase vs. Refinance |
|||||||||||||||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||||||
|
|
September 30, 2020 |
|
September 30, 2019 |
|
September 30, 2020 |
|
September 30, 2019 |
||||||||||||||||
|
Purchase |
|
61.1 |
% |
|
|
79.6 |
% |
|
|
60.0 |
% |
|
|
83.3 |
% |
||||||||
|
Refinance |
|
38.9 |
|
|
|
20.4 |
|
|
|
40.0 |
|
|
|
16.7 |
|
||||||||
|
|
|
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, 2020 |
|
June 30, 2020 |
|
September 30, 2019 |
|||||||||||||
|
($ in thousands) |
|
|
|
|
|
|
|
|
||||||||||
|
>=760 |
|
$ |
78,923,142 |
|
41.4 |
% |
|
$ |
71,570,804 |
|
41.0 |
% |
|
$ |
67,408,766 |
|
41.9 |
% |
|
740-759 |
|
33,229,396 |
|
17.4 |
|
|
30,265,718 |
|
17.3 |
|
|
27,178,330 |
|
16.9 |
|
|||
|
720-739 |
|
28,496,228 |
|
15.0 |
|
|
26,130,764 |
|
15.0 |
|
|
23,459,055 |
|
14.6 |
|
|||
|
700-719 |
|
22,748,385 |
|
11.9 |
|
|
20,721,839 |
|
11.9 |
|
|
18,728,884 |
|
11.6 |
|
|||
|
680-699 |
|
15,302,772 |
|
8.0 |
|
|
14,545,011 |
|
8.3 |
|
|
13,418,919 |
|
8.3 |
|
|||
|
<=679 |
|
12,111,369 |
|
6.3 |
|
|
11,412,137 |
|
6.5 |
|
|
10,768,238 |
|
6.7 |
|
|||
|
Total |
$ |
190,811,292 |
|
100.0 |
% |
|
$ |
174,646,273 |
|
100.0 |
% |
|
$ |
160,962,192 |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Weighted average credit score |
745 |
|
|
|
745 |
|
|
|
745 |
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Gross RIF by FICO score |
September 30, 2020 |
|
June 30, 2020 |
|
September 30, 2019 |
|||||||||||||
|
($ in thousands) |
|
|
|
|
|
|
|
|
||||||||||
|
>=760 |
|
$ |
19,606,502 |
|
41.0 |
% |
|
$ |
17,871,881 |
|
40.6 |
% |
|
$ |
16,877,750 |
|
41.6 |
% |
|
740-759 |
|
8,395,009 |
|
17.5 |
|
|
7,672,436 |
|
17.4 |
|
|
6,857,369 |
|
16.9 |
|
|||
|
720-739 |
|
7,251,499 |
|
15.2 |
|
|
6,673,863 |
|
15.2 |
|
|
5,980,949 |
|
14.8 |
|
|||
|
700-719 |
|
5,738,412 |
|
12.0 |
|
|
5,246,989 |
|
11.9 |
|
|
4,743,360 |
|
11.7 |
|
|||
|
680-699 |
|
3,853,734 |
|
8.0 |
|
|
3,693,448 |
|
8.4 |
|
|
3,406,811 |
|
8.4 |
|
|||
|
<=679 |
|
2,993,512 |
|
6.3 |
|
|
2,835,372 |
|
6.5 |
|
|
2,674,050 |
|
6.6 |
|
|||
|
Total |
$ |
47,838,668 |
|
100.0 |
% |
|
$ |
43,993,989 |
|
100.0 |
% |
|
$ |
40,540,289 |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Portfolio by LTV |
||||||||||||||||||
|
IIF by LTV |
September 30, 2020 |
|
June 30, 2020 |
|
September 30, 2019 |
|||||||||||||
|
($ in thousands) |
|
|
|
|
|
|
|
|
||||||||||
|
85.00% and below |
|
$ |
23,979,065 |
|
12.6 |
% |
|
$ |
19,874,830 |
|
11.4 |
% |
|
$ |
16,918,870 |
|
10.5 |
% |
|
85.01% to 90.00% |
|
55,453,633 |
|
29.1 |
|
|
50,446,645 |
|
28.9 |
|
|
46,021,398 |
|
28.6 |
|
|||
|
90.01% to 95.00% |
|
84,573,433 |
|
44.3 |
|
|
79,112,541 |
|
45.3 |
|
|
75,528,177 |
|
46.9 |
|
|||
|
95.01% and above |
|
26,805,161 |
|
14.0 |
|
|
25,212,257 |
|
14.4 |
|
|
22,493,747 |
|
14.0 |
|
|||
|
Total |
$ |
190,811,292 |
|
100.0 |
% |
|
$ |
174,646,273 |
|
100.0 |
% |
|
$ |
160,962,192 |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Weighted average LTV |
92 |
% |
|
|
92 |
% |
|
|
92 |
% |
|
|||||||
|
|
|
|
|
|
|
|
||||||||||||
|
Gross RIF by LTV |
September 30, 2020 |
|
June 30, 2020 |
|
September 30, 2019 |
|||||||||||||
|
($ in thousands) |
|
|
|
|
|
|
|
|
||||||||||
|
85.00% and below |
|
$ |
2,759,320 |
|
5.8 |
% |
|
$ |
2,292,935 |
|
5.2 |
% |
|
$ |
1,953,058 |
|
4.8 |
% |
|
85.01% to 90.00% |
|
13,307,205 |
|
27.8 |
|
|
12,120,308 |
|
27.6 |
|
|
11,065,886 |
|
27.3 |
|
|||
|
90.01% to 95.00% |
|
24,391,376 |
|
51.0 |
|
|
22,760,884 |
|
51.7 |
|
|
21,633,852 |
|
53.4 |
|
|||
|
95.01% and above |
|
7,380,767 |
|
15.4 |
|
|
6,819,862 |
|
15.5 |
|
|
5,887,493 |
|
14.5 |
|
|||
|
Total |
$ |
47,838,668 |
|
100.0 |
% |
|
$ |
43,993,989 |
|
100.0 |
% |
|
$ |
40,540,289 |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Portfolio by Loan Amortization Period |
||||||||||||||||||
|
IIF by Loan Amortization Period |
September 30, 2020 |
|
June 30, 2020 |
|
September 30, 2019 |
|||||||||||||
|
($ in thousands) |
|
|
|
|
|
|
|
|
||||||||||
|
FRM 30 years and higher |
|
$ |
180,135,430 |
|
94.4 |
% |
|
$ |
165,143,246 |
|
94.5 |
% |
|
$ |
151,594,009 |
|
94.2 |
% |
|
FRM 20-25 years |
|
3,945,019 |
|
2.1 |
|
|
3,277,847 |
|
1.9 |
|
|
2,872,964 |
|
1.8 |
|
|||
|
FRM 15 years |
|
4,417,092 |
|
2.3 |
|
|
3,660,888 |
|
2.1 |
|
|
3,367,326 |
|
2.1 |
|
|||
|
ARM 5 years and higher |
|
2,313,751 |
|
1.2 |
|
|
2,564,292 |
|
1.5 |
|
|
3,127,893 |
|
1.9 |
|
|||
|
Total |
$ |
190,811,292 |
|
100.0 |
% |
|
$ |
174,646,273 |
|
100.0 |
% |
|
$ |
160,962,192 |
|
100.0 |
% |
|
Contacts
Media Contact
610.230.0556
media@essentgroup.com
Investor Relations Contact
Christopher G. Curran
Senior Vice President – Investor Relations
855-809-ESNT
ir@essentgroup.com
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