News Details

HAMILTON, Bermuda--(BUSINESS WIRE)-- Essent Group Ltd. (NYSE: ESNT) today reported net income for the quarter ended March 31, 2014 of $15.0 million or $0.18 per diluted share. As of March 31, 2014, Essent had primary insurance in force of $34.8 billion and consolidated stockholders’ equity of $740.1 million.

Additionally, Essent’s combined risk to capital ratio, which includes statutory capital for both Essent Guaranty, Inc. and Essent Guaranty of PA, Inc., was 16.1:1 as of March 31, 2014.

“Our growing insurance in force portfolio generated $44.8 million in earned premium for the first quarter of 2014, an increase of 110% compared to the first quarter a year ago,” said Mark Casale, Chairman and Chief Executive Officer. “In addition, our strong capital levels and disciplined risk management approach continue to provide confidence to our counterparties and differentiate Essent in the market place.”

Financial Highlights:

• Insurance in force as of March 31, 2014 was $34.8 billion, compared to $32.0 billion as of December 31, 2013 and $17.4 billion as of March 31, 2013.
• New insurance written for the first quarter of 2014 was $3.6 billion, compared to $4.5 billion in the fourth quarter of 2013 and $4.3 billion in the first quarter of 2013.
• Income before taxes for the first quarter of 2014 was $23.5 million, compared to $19.4 million for the fourth quarter of 2013 and $7.3 million for the first quarter of 2013.
• Net premiums earned for the first quarter of 2014 were $44.8 million, compared to $40.3 million in the fourth quarter of 2013 and $21.3 million in the first quarter of 2013.
• The expense ratio for the first quarter of 2014 was 52.4%, compared to 55.3% for the fourth quarter of 2013 and 70.4% for the first quarter of 2013.
• The provision for losses and LAE for the first quarter of 2014 was $0.9 million, compared to $0.7 million for both the fourth and first quarters of 2013.
• The percentage of loans in default as of March 31, 2014 was 0.12%, compared to 0.11% as of December 31, 2013 and 0.10% as of March 31, 2013.
• The combined ratio for the first quarter of 2014 was 54.4%, compared to 57.0% for the fourth quarter of 2013 and 73.8% for the first quarter of 2013.
• On April 28, 2014, Standard & Poor’s affirmed its BBB+ Financial Strength Rating for Essent Guaranty, Inc. Moody’s continues to rate Essent Guaranty, Inc. as Baa2.

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/investors/webcasts-and-presentations/event-calendar/default.aspx. The call may also be accessed by dialing 877-201-0168 inside the U.S., or 647-788-4901 for international callers, using passcode 33651865 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: 855-859-2056 inside the U.S., or 404-537-3406 for international callers, passcode 33651865.

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/investors/financial-information/quarterly-financial-supplements/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," "plan," "seek," "comfortable with," "will," "expect," "intend," "estimate," "anticipate," "believe" or "continue" 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; 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; 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, 2013 filed with the Securities and Exchange Commission on March 10, 2014. 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.

Non-GAAP Financial Measures

In presenting Essent Group Ltd.’s results, management has included financial measures, including adjusted book value per share, that are not calculated under standards or rules that comprise accounting principles generally accepted in the United States (“GAAP”). Such measures are referred to as “non-GAAP measures.” These non-GAAP measures may be defined or calculated differently by other companies. Management believes these measures allow for a more complete understanding of the underlying business. These measures are used to monitor our results and should not be viewed as a substitute for those determined in accordance with GAAP. Reconciliations of such measures to the most comparable GAAP figures are included in the attached financial supplement in accordance with Regulation G.

About the Company

Essent Group Ltd. (NYSE: ESNT) is a Bermuda-based holding company 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. Additional information regarding Essent may be found at www.essentgroup.com.

Essent Group Ltd. and Subsidiaries
Financial Results and Supplemental Information (Unaudited)
Quarter ended March 31, 2014
Exhibit A:				Condensed Consolidated Statements of Comprehensive Income (Unaudited)
Exhibit B:				Condensed Consolidated Balance Sheets (Unaudited)
Exhibit C:				New Insurance Written
Exhibit D:				Insurance in Force and Risk in Force
Exhibit E:				Portfolio Vintage Data
Exhibit F:				Portfolio Geographic Data
Exhibit G:				Defaults, Reserve for Losses and LAE, and Claims
Exhibit H:				Investment Portfolio
Exhibit I:				Insurance Company Capital
Exhibit J:				Historical Quarterly Data
Exhibit K:				Earnings per Share
Exhibit L:				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)
			Quarter ended March 31,
(In thousands, except per share amounts)			2014					2013
Revenues:
Net premiums written			$	52,192				$	33,373
Increase in unearned premiums				(7,442	)				(12,109	)
Net premiums earned				44,750					21,264
Net investment income				1,898					730
Realized investment gains, net				400					10
Other income				773					1,027
Total revenues				47,821					23,031
Losses and expenses:
Provision for losses and LAE				902					730
Other underwriting and operating expenses				23,459					14,962
Total losses and expenses				24,361					15,692
Income before income taxes				23,460					7,339
Income tax expense				8,454					139
Net income			$	15,006				$	7,200
Earnings per share
Basic:
Common Shares			$	0.18					N/A
Class A common shares				N/A				$	0.23
Class B-2 common shares				N/A					-
Diluted:
Common Shares			$	0.18					N/A
Class A common shares				N/A				$	0.23
Class B-2 common shares				N/A					-
Weighted average common shares outstanding
Basic:
Common Shares				82,864					N/A
Class A common shares				N/A					31,805
Class B-2 common shares				N/A					853
Diluted:
Common Shares				84,696					N/A
Class A common shares				N/A					31,864
Class B-2 common shares				N/A					6,009
Net income			$	15,006				$	7,200
Other comprehensive income (loss):
Change in unrealized appreciation (depreciation) of investments, net of tax expense (benefit) of $370 and $(139) in 2014 and 2013				479					(258	)
Total other comprehensive income (loss)				479					(258	)
Comprehensive income			$	15,485				$	6,942
Loss ratio				2.0	%				3.4	%
Expense ratio				52.4	%				70.4	%
Combined ratio				54.4	%				73.8	%

Exhibit B
Essent Group Ltd. and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)
			March 31,					December 31,
(In thousands, except per share amounts)			2014					2013
Assets
Investments available for sale, at fair value
Fixed maturities			$	585,743				$	318,476
Short-term investments				261,525					14,079
Total investments				847,268					332,555
Cash				8,838					477,655
Accrued investment income				3,673					1,978
Accounts receivable				10,349					10,006
Deferred policy acquisition costs				6,628					6,173
Property and equipment (at cost, less accumulated depreciation of $37,342 in 2014 and $36,796 in 2013)				4,372					4,411
Prepaid federal income tax				18,000					8,000
Net deferred tax asset				2,869					10,346
Other assets				3,049					2,846
Total assets			$	905,046				$	853,970
Liabilities and Stockholders' Equity
Liabilities
Reserve for losses and LAE			$	3,804				$	3,070
Unearned premium reserve				110,841					103,399
Amounts due under Asset Purchase Agreement				4,967					4,949
Accrued payroll and bonuses				4,989					13,076
Payable for securities				35,192					-
Other accrued liabilities				5,124					7,335
Total liabilities				164,917					131,829
Commitments and contingencies
Stockholders' Equity
Common Shares, $0.015 par value:
Authorized - 233,333; issued - 86,494 shares in 2014 and 86,491 shares in 2013				1,297					1,297
Additional paid-in capital				756,893					754,390
Accumulated other comprehensive loss				(968	)				(1,447	)
Accumulated deficit				(17,093	)				(32,099	)
Total stockholders' equity				740,129					722,141
Total liabilities and stockholders' equity			$	905,046				$	853,970

Exhibit C
Essent Group Ltd. and Subsidiaries
Supplemental Information
New Insurance Written
NIW by Credit Score
						Quarter ended
						March 31, 2014								December 31, 2013								March 31, 2013
($ in thousands)
			>=760			$	1,614,436			44.5	%			$	2,135,772			47.2	%			$	2,437,590			56.4	%
			740-759				636,859			17.5					802,262			17.7					775,559			17.9
			720-739				536,471			14.8					651,269			14.4					572,897			13.3
			700-719				375,500			10.3					465,611			10.3					314,473			7.3
			680-699				315,267			8.7					341,968			7.5					174,859			4.0
			<=679				152,040			4.2					131,018			2.9					46,178			1.1
Total						$	3,630,573			100.0	%			$	4,527,900			100.0	%			$	4,321,556			100.0	%
Weighted-average Credit Score							749								752								761
NIW by LTV
						Quarter ended
						March 31, 2014								December 31, 2013								March 31, 2013
($ in thousands)
			85.00% and below			$	435,733			12.0	%			$	488,218			10.8	%			$	819,486			19.0	%
			85.01% to 90.00%				1,240,528			34.2					1,528,857			33.8					1,634,282			37.8
			90.01% to 95.00%				1,925,763			53.0					2,372,909			52.4					1,838,422			42.5
			95.01% and above				28,549			0.8					137,916			3.0					29,366			0.7
						$	3,630,573			100.0	%			$	4,527,900			100.0	%			$	4,321,556			100.0	%
Weighted-average LTV							92%								92%								91%
NIW by Product
						Quarter ended
						March 31, 2014								December 31, 2013								March 31, 2013
Single Premium policies										18.2	%							19.2	%							18.9	%
Monthly Premium policies										81.8								80.8								81.1
										100.0	%							100.0	%							100.0	%
NIW by Purchase vs. Refinance
						Quarter ended
						March 31, 2014								December 31, 2013								March 31, 2013
Purchase										84.9	%							86.9	%							53.2	%
Refinance										15.1								13.1								46.8
										100.0	%							100.0	%							100.0	%

Exhibit D
Essent Group Ltd. and Subsidiaries
Supplemental Information
Insurance in Force and Risk in Force
Portfolio by Credit Score
Total IIF by FICO score						March 31, 2014								December 31, 2013								March 31, 2013
($ in thousands)
			>=760			$	18,212,476			52.3	%			$	17,102,961			53.3	%			$	9,890,172			56.8	%
			740-759				6,218,225			17.9					5,724,933			17.9					3,092,355			17.7
			720-739				4,804,322			13.8					4,380,452			13.7					2,316,338			13.3
			700-719				2,955,696			8.5					2,646,717			8.3					1,268,937			7.3
			680-699				1,940,162			5.6					1,665,196			5.2					683,646			3.9
			<=679				647,176			1.9					507,937			1.6					179,362			1.0
Total						$	34,778,057			100.0	%			$	32,028,196			100.0	%			$	17,430,810			100.0	%
Weighted-average Credit Score							757								758								761
Total RIF by FICO score						March 31, 2014								December 31, 2013								March 31, 2013
($ in thousands)
			>=760			$	4,403,362			51.9	%			$	4,106,913			52.9	%			$	2,306,076			56.2	%
			740-759				1,527,784			18.0					1,399,308			18.0					733,994			17.9
			720-739				1,192,630			14.0					1,081,286			13.9					556,051			13.6
			700-719				717,501			8.4					637,086			8.2					295,411			7.2
			680-699				488,405			5.8					415,414			5.3					164,618			4.0
			<=679				164,180			1.9					128,598			1.7					44,685			1.1
Total						$	8,493,862			100.0	%			$	7,768,605			100.0	%			$	4,100,835			100.0	%
Portfolio by LTV
Total IIF by LTV						March 31, 2014								December 31, 2013								March 31, 2013
($ in thousands)
			85.00% and below			$	4,540,795			13.1	%			$	4,322,612			13.5	%			$	2,716,156			15.6	%
			85.01% to 90.00%				13,054,922			37.5					12,171,460			38.0					7,133,052			40.9
			90.01% to 95.00%				16,748,932			48.2					15,121,279			47.2					7,501,474			43.0
			95.01% and above				433,408			1.2					412,845			1.3					80,128			0.5
						$	34,778,057			100.0	%			$	32,028,196			100.0	%			$	17,430,810			100.0	%
Weighted-average LTV							91%								91%								91%
Total RIF by LTV						March 31, 2014								December 31, 2013								March 31, 2013
($ in thousands)
			85.00% and below			$	503,315			5.9	%			$	474,763			6.1	%			$	293,690			7.2	%
			85.01% to 90.00%				3,074,541			36.2					2,858,683			36.8					1,656,244			40.4
			90.01% to 95.00%				4,770,413			56.2					4,296,135			55.3					2,124,150			51.7
			95.01% and above				145,593			1.7					139,024			1.8					26,751			0.7
						$	8,493,862			100.0	%			$	7,768,605			100.0	%			$	4,100,835			100.0	%
Portfolio by Loan Amortization Period
Total IIF by Loan Amortization Period						March 31, 2014								December 31, 2013								March 31, 2013
($ in thousands)
			FRM 30 years and higher			$	29,906,738			85.9	%			$	27,364,633			85.4	%			$	14,415,309			82.7	%
			FRM 20-25 years				1,105,372			3.2					1,086,120			3.4					751,627			4.3
			FRM 15 years				2,383,315			6.9					2,354,656			7.4					1,586,031			9.1
			ARM 5 years and higher				1,382,632			4.0					1,222,787			3.8					677,843			3.9
			Total			$	34,778,057			100.0	%			$	32,028,196			100.0	%			$	17,430,810			100.0	%

Exhibit E
Essent Group Ltd. and Subsidiaries
Supplemental Information
Portfolio Vintage Data
Origination year		Original Insurance Written ($ in thousands)			Remaining Insurance in Force ($ in thousands)			% Remaining of Original Insurance
											Insurance in Force as of March 31, 2014
											% Purchase			>90% LTV			>95% LTV			FICO < 700			FICO >= 760			% FRM
2010		$	245,898		$	101,057		41.1	%		71.7	%		36.7	%		0.0	%		3.1	%		60.1	%		97.0	%
2011			3,229,720			1,656,252		51.3			70.2			39.5			0.3			4.2			57.6			92.3
2012			11,241,161			9,286,188		82.6			67.3			47.1			0.4			5.2			56.1			96.6
2013			21,152,638			20,140,578		95.2			72.8			50.6			1.8			7.8			51.6			96.4
2014 (through March 31)			3,630,573			3,593,982		99.0			84.9			53.6			0.8			12.9			44.4			94.4
Total		$	39,499,990		$	34,778,057		88.0			72.4			49.4			1.2			7.4			52.4			96.0

Exhibit F
Essent Group Ltd. and Subsidiaries
Supplemental Information
Portfolio Geographic Data
IIF by State
			As of March 31, 2014			As of December 31, 2013			As of March 31, 2013
CA			11.2%			11.1%			11.1%
TX			8.3			8.2			7.8
FL			4.9			4.6			4.0
NC			4.3			4.3			4.3
IL			3.9			4.0			4.2
WA			3.7			3.6			3.3
NJ			3.7			3.8			4.0
GA			3.5			3.5			3.4
AZ			3.5			3.5			3.4
PA			3.5			3.6			4.0
All Others			49.5			49.8			50.5
TOTAL			100.0%			100.0%			100.0%
RIF by State
			As of March 31, 2014			As of December 31, 2013			As of March 31, 2013
CA			10.6%			10.5%			10.7%
TX			8.1			8.0			7.6
FL			5.0			4.8			4.1
NC			4.4			4.4			4.5
IL			3.9			4.0			4.3
WA			3.8			3.6			3.4
GA			3.7			3.6			3.5
NJ			3.6			3.7			3.9
PA			3.5			3.6			4.0
AZ			3.3			3.3			3.3
All Others			50.1			50.5			50.7
TOTAL			100.0%			100.0%			100.0%

Exhibit G
Essent Group Ltd. and Subsidiaries
Supplemental Information
Defaults, Reserve for Losses and LAE, and Claims
Rollforward of Insured Loans in Default
			Quarter ended
			March 31,					December 31,					March 31,
			2014					2013					2013
Beginning default inventory				159					116					56
Plus: new defaults				167					108					70
Less: cures				(128	)				(57	)				(49	)
Less: claims paid				(6	)				(8	)				(2	)
Ending default inventory				192					159					75
Rollforward of Reserve for Losses and LAE
			Quarter ended
			March 31,					December 31,					March 31,
($ in thousands)			2014					2013					2013
Reserve for losses and LAE at beginning of period			$	3,070				$	2,727				$	1,499
Add provision for losses and LAE occurring in:
Current year				1,286					903					924
Prior years				(384	)				(211	)				(194	)
Incurred losses during the period				902					692					730
Deduct payments for losses and LAE occurring in:
Current year				-					144					1
Prior years				168					205					64
Loss and LAE payments during the period				168					349					65
Reserve for losses and LAE at end of period			$	3,804				$	3,070				$	2,164
Claims
			Quarter ended
			March 31,					December 31,					March 31,
			2014					2013					2013
Number of claims paid				6					8					2
Total amount paid for claims (in thousands)			$	159				$	343				$	57
Average amount paid per claim (in thousands)			$	27				$	43				$	29
Severity				84	%				87	%				106	%

Exhibit G, continued
Essent Group Ltd. and Subsidiaries
Supplemental Information
Defaults, Reserve for Losses and LAE, and Claims
			As of March 31, 2014
			Number of Policies in Default				Percentage of Policies in Default				Amount of Reserves				Percentage of Reserves				Defaulted RIF				Reserves as a Percentage of RIF
($ in thousands)
Missed Payments:
Three payments or less			95				49	%			$	936			27	%			$	4,309			22	%
Four to eleven payments			76				40	%				1,636			47	%				3,406			48	%
Twelve or more payments			15				8	%				561			16	%				867			65	%
Pending claims			6				3	%				348			10	%				360			97	%
TOTAL			192				100	%				3,481			100	%			$	8,942			39	%
IBNR												261
LAE												62
TOTAL											$	3,804
Average reserve per default:
Case											$	18.1
Total											$	19.8
Default Rate			0.12	%
			As of December 31, 2013
			Number of Policies in Default				Percentage of Policies in Default				Amount of Reserves				Percentage of Reserves				Defaulted RIF				Reserves as a Percentage of RIF
($ in thousands)
Missed Payments:
Three payments or less			88				56	%			$	841			30	%			$	3,972			21	%
Four to eleven payments			56				35	%				1,497			53	%				2,672			56	%
Twelve or more payments			10				6	%				300			11	%				447			67	%
Pending claims			5				3	%				169			6	%				166			102	%
TOTAL			159				100	%				2,807			100	%			$	7,257			39	%
IBNR												211
LAE												52
TOTAL											$	3,070
Average reserve per default:
Case											$	17.7
Total											$	19.3
Default Rate			0.11	%
			As of March 31, 2013
			Number of Policies in Default				Percentage of Policies in Default				Amount of Reserves				Percentage of Reserves				Defaulted RIF				Reserves as a Percentage of RIF
($ in thousands)
Missed Payments:
Three payments or less			45				61	%			$	862			43	%			$	2,659			32	%
Four to eleven payments			22				29	%				711			35	%				996			71	%
Twelve or more payments			4				5	%				183			9	%				246			74	%
Pending claims			4				5	%				258			13	%				256			101	%
TOTAL			75				100	%				2,014			100	%			$	4,157			48	%
IBNR												101
LAE												49
TOTAL											$	2,164
Average reserve per default:
Case											$	26.9
Total											$	28.9
Default Rate			0.10	%

Exhibit H
Essent Group Ltd. and Subsidiaries
Supplemental Information
Investment Portfolio
Investment Portfolio by Asset Class
Asset Class			March 31, 2014										December 31, 2013
($ in thousands)			Fair Value					Percent					Fair Value				Percent
US Treasury securities			$	71,584					8.4	%			$	59,187			17.8	%
US Agency securities				11,193					1.3					14,839			4.5
US Agency Mortgage-backed securities				47,468					5.6					22,241			6.7
Municipal debt securities				146,154					17.3					57,650			17.3
Corporate debt securities				230,823					27.2					125,593			37.8
Mortgage-backed securities				39,688					4.7					18,581			5.6
Asset-backed securities				61,626					7.3					20,385			6.1
Money market investments				238,732					28.2					14,079			4.2
Total Investments			$	847,268					100.0	%			$	332,555			100.0	%
Investment Portfolio by Credit Rating
Rating (1)			March 31, 2014										December 31, 2013
($ in thousands)			Fair Value					Percent					Fair Value				Percent
Aaa			$	471,707					55.6	%			$	147,862			44.5	%
Aa1				32,267					3.8					21,570			6.5
Aa2				35,474					4.2					15,464			4.6
Aa3				26,106					3.1					11,902			3.6
A1				62,950					7.4					26,541			8.0
A2				42,179					5.0					17,045			5.1
A3				49,607					5.9					29,886			9.0
Baa1				52,395					6.2					24,441			7.3
Baa2				64,753					7.6					30,782			9.3
Baa3				9,830					1.2					7,062			2.1
Below Baa3				-					-					-			-
Total Investments			$	847,268					100.0	%			$	332,555			100.0	%
(1) Based on ratings issued by Moody's, if available. S&P rating utilized if Moody's not available.
Portfolio by Duration and Book Yield
Effective Duration			March 31, 2014										December 31, 2013
($ in thousands)			Fair Value					Percent					Fair Value				Percent
< 1 Year			$	322,695					38.0	%			$	65,092			19.6	%
1 to < 2 Years				48,987					5.8					19,093			5.7
2 to < 3 Years				76,868					9.1					74,335			22.4
3 to < 4 Years				99,948					11.8					63,214			19.0
4 to < 5 Years				81,779					9.7					66,230			19.9
5 or more Years				216,991					25.6					44,591			13.4
Total Investments			$	847,268					100.0	%			$	332,555			100.0	%
Pre-tax investment income yield:
Three months ended March 31, 2014				1.01	%
Net cash and Investments at holding company Essent Group Ltd. ($ in thousands):
As of March 31, 2014								$	206,514
As of December 31, 2013								$	246,220

Exhibit I
Essent Group Ltd. and Subsidiaries
Supplemental Information
Insurance Company Capital
			As of
			March 31, 2014				December 31, 2013
Combined statutory capital (A)			$	528,234			$	469,424
Risk to capital ratios: (B)
Essent Guaranty, Inc.				16.1:1				16.6:1
Essent Guaranty of PA, Inc.				16.0:1				17.1:1
Combined (C)				16.1:1				16.5:1

(A) Combined statutory capital equals the sum of statutory capital of Essent Guaranty, Inc. plus Essent Guaranty of PA, Inc., after eliminating the impact of intercompany transactions. Statutory capital is computed based on accounting practices prescribed or permitted by the Pennsylvania Insurance Department.

(B) The risk to capital ratio is calculated as the ratio of net risk in force to statutory capital. Net risk in force represents total risk in force, net of reinsurance ceded and net of exposures on policies for which loss reserves have been established.

(C) The combined risk to capital ratio equals the sum of the net risk in force of Essent Guaranty, Inc. and Essent Guaranty of PA, Inc. divided by the combined statutory capital.

Exhibit J
Essent Group Ltd. and Subsidiaries
Supplemental Information
Historical Quarterly Data
			2014					2013
Selected Income Statement Data			March 31					December 31					September 30					June 30					March 31
(in thousands, except per share amounts)
Revenues:
Net premiums written			$	52,192				$	52,878				$	55,026				$	44,923				$	33,373
Net premiums earned				44,750					40,344					34,282					27,481					21,264
Other revenues				3,071					2,009					2,173					2,083					1,767
Total revenues				47,821					42,353					36,455					29,564					23,031
Losses and expenses:
Provision for losses and LAE				902					692					319					580					730
Other underwriting and operating expenses				23,459					22,299					18,237					15,557					14,962
Total losses and expenses				24,361					22,991					18,556					16,137					15,692
Income before income taxes				23,460					19,362					17,899					13,427					7,339
Income tax expense (benefit)				8,454					345					2,280					(10,150	)				139
Net income			$	15,006				$	19,017				$	15,619				$	23,577				$	7,200
Earnings per share:
Basic:
Common Shares			$	0.18				$	0.23					N/A					N/A					N/A
Class A common shares				N/A					N/A				$	0.36				$	0.63				$	0.23
Class B-2 common shares				N/A					N/A					0.07					0.40					-
Diluted:
Common Shares			$	0.18				$	0.22					N/A					N/A					N/A
Class A common shares				N/A					N/A				$	0.35				$	0.62				$	0.23
Class B-2 common shares				N/A					N/A					0.02					0.09					-
Weighted average common shares outstanding
Basic:
Common Shares				82,864					51,741					N/A					N/A					N/A
Class A common shares				N/A					N/A					43,616					36,793					31,805
Class B-2 common shares				N/A					N/A					1,822					1,334					853
Diluted:
Common Shares				84,696					55,130					N/A					N/A					N/A
Class A common shares				N/A					N/A					43,788					36,901					31,864
Class B-2 common shares				N/A					N/A					6,054					5,994					6,009
Other Data:
($ in thousands)
Loss ratio (1)				2.0	%				1.7	%				0.9	%				2.1	%				3.4	%
Expense ratio (2)				52.4	%				55.3	%				53.2	%				56.6	%				70.4	%
Combined ratio				54.4	%				57.0	%				54.1	%				58.7	%				73.8	%
New insurance written			$	3,630,573				$	4,527,900				$	6,408,055				$	5,895,127				$	4,321,556
Average premium rate (3)				0.54	%				0.54	%				0.54	%				0.55	%				0.55	%
Insurance in force (end of period)			$	34,778,057				$	32,028,196				$	28,198,722				$	22,576,300				$	17,430,810
Policies in force				154,451					141,417					123,737					98,818					76,455
Weighted-average coverage (4)				24.4	%				24.3	%				24.0	%				23.7	%				23.5	%
Annual persistency				87.9	%				86.1	%				83.1	%				80.1	%				80.9	%
Loans in default (count)				192					159					116					90					75
Percentage of loans in default				0.12	%				0.11	%				0.09	%				0.09	%				0.10	%

(1) Loss ratio is calculated by dividing the provision for loss and loss adjustment expenses by net premiums earned.

(2) Expense ratio is calculated by dividing other underwriting and operating expenses by net premiums earned.

(3) Net premium earned as a percentage of average insurance in force for the period.

(4) End of period risk in force divided by insurance in force.

Exhibit K
Essent Group Ltd. and Subsidiaries
Supplemental Information
Earnings per Share
			Quarter ended				Quarter ended
			March 31, 2014				March 31, 2013
(In thousands, except per share amounts)
Net income			$	15,006			$	7,200
Less: Class A dividends declared				N/A				-
Less: Class B-2 dividends declared				N/A				-
Undistributed net income			$	15,006			$	7,200
Net income allocable to Common Shares			$	15,006				N/A
Net income allocable to Class A common shares				N/A			$	7,200
Net income allocable to Class B-2 common shares				N/A				-
Basic earnings per common share:
Common Shares			$	0.18				N/A
Class A common shares				N/A			$	0.23
Class B-2 common shares				N/A				-
Diluted earnings per common share:
Common Shares			$	0.18				N/A
Class A common shares				N/A			$	0.23
Class B-2 common shares				N/A				-
Basic weighted average common shares outstanding:
Common Shares				82,864				N/A
Class A common shares				N/A				31,805
Class B-2 common shares				N/A				853
Diluted weighted average common shares outstanding:
Common Shares				84,696				N/A
Class A common shares				N/A				31,864
Class B-2 common shares				N/A				6,009

Note: Prior to the Company’s initial public offering on November 5, 2013 (“IPO”), the Company had two classes of common shares outstanding: Class A common shares and Class B-2 common shares. Upon the completion of the IPO, all of the Class A common shares and the Class B-2 common shares converted into a single class of common shares of the Company (the “Common Shares”), as more fully described in the Company’s prospectus dated October 30, 2013. Earnings Per Share (“EPS”) was calculated and presented prior to the IPO using the “two-class” method which provides that earnings and losses are allocated to each class of common shares according to the dividends declared or unpaid cumulative dividends earned, with the remaining undistributed earnings allocated according to each share’s respective participation rights.

Exhibit L

Essent Group Ltd. and Subsidiaries

Supplemental Information

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

We believe that long-term growth in Adjusted Book Value per Share is an important measure of our financial performance and is a measure used to determine vesting on certain restricted stock granted to senior management under the Company’s long-term incentive plan.  Adjusted Book Value per Share is a financial measure that is not calculated under standards or rules that comprise accounting principles generally accepted in the United States (GAAP) and is referred to as a non-GAAP measure. Adjusted Book Value per Share may be defined or calculated differently by other companies. Adjusted Book Value per Share is one measure used to monitor our results and should not be viewed as a substitute for those measures determined in accordance with GAAP.

Adjusted Book Value per Share is calculated by dividing Adjusted Book Value by Common Shares and Share Units Outstanding.  Adjusted Book Value is defined as consolidated stockholders’ equity of the Company, excluding accumulated other comprehensive income (loss) plus the proceeds, if any, from the assumed exercise of all in the money options, warrants and similar instruments.  Common Shares and Outstanding Restricted Share Units is defined as total common shares outstanding plus all equity instruments (including Restricted Stock Units) issued to management and the Board of Directors and any in the money options, warrants and similar instruments.  Accumulated other comprehensive income (loss) includes unrealized gains and losses that arise from changes in the market value of the Company’s investments that are classified as available for sale. The Company does not view these unrealized gains and losses to be indicative of our fundamental operating performance.  As of March 31, 2014 and December 31, 2013, the Company does not have any options, warrants and similar instruments outstanding.

The following table sets forth the reconciliation of adjusted book value to the most comparable GAAP amount as of March 31, 2014 and December 31, 2013 in accordance with Regulation G:

(in thousands, except per share amounts)			March 31, 2014				December 31, 2013
Numerator:
Total Stockholders' Equity (Book Value)			$	740,129			$	722,141
Add Back: Accumulated Other Comprehensive Loss				968				1,447
Adjusted Book Value			$	741,097			$	723,588
Denominator:
Total Outstanding Common Shares				86,494				86,491
Add: Outstanding Restricted Share Units				596				528
Total Outstanding Common Shares and Restricted Share Units				87,090				87,019
Adjusted Book Value per Share			$	8.51			$	8.32

Source: Essent Group Ltd.