News Details

HAMILTON, Bermuda--(BUSINESS WIRE)-- Essent Group Ltd. (NYSE: ESNT) today reported net income for the fourth quarter ended December 31, 2013 of $19.0 million. Net income for the full year 2013 was $65.4 million, which included a tax benefit of $7.4 million.

Primary insurance in force as of December 31, 2013, was $32.0 billion, representing an increase of 135% compared to $13.6 billion of insurance in force as of December 31, 2012. As of December 31, 2013, consolidated stockholders’ equity was $722.1 million and combined statutory capital in insurance subsidiaries was $469.4 million.

“2013 was a landmark year for Essent. We achieved investment grade ratings from both S&P and Moody’s and also successfully completed our initial public offering, giving us greater access to capital to support future growth,” said Mark Casale, Chairman and Chief Executive Officer. “In addition, our insurance in force growth fueled a significant increase in our top line revenues, resulting in record earnings for the year.”

Financial Highlights:

• New insurance written for the fourth quarter was $4.5 billion, compared to $4.0 billion in the fourth quarter 2012. For the full year 2013, new insurance written was $21.2 billion, compared to $11.2 billion for 2012.
• Income before taxes for the fourth quarter was $19.4 million compared to $1.4 million for the fourth quarter of 2012. Income before taxes for the full year 2013 was $58.0 million compared to a loss of $13.9 million for 2012.
• Net premiums earned for the fourth quarter were $40.3 million, compared to $16.5 million in the fourth quarter of 2012. For the full year 2013, net premiums earned were $123.4 million, compared to $41.8 million for 2012.
• The expense ratio for the fourth quarter was 55.3%, compared to 100.2% for the fourth quarter of 2012. For the full year, the expense ratio was 57.6%, compared to 146.3% for 2012.
• The provision for losses and LAE for the fourth quarter was $0.7 million, compared to $0.5 million in the fourth quarter of 2012. For the full year 2013, the provision for losses and LAE was $2.3 million, compared to $1.5 million in 2012.
• The percentage of loans in default as of December 31, 2013 was 0.11%, compared to 0.09% as of December 31, 2012.
• The combined ratio for the fourth quarter was 57.0%, compared to 103.2% for the fourth quarter of 2012. For the full year, the combined ratio was 59.5%, compared to 149.8% for 2012.

Additionally, the insurance subsidiaries’ combined risk to capital ratio which includes statutory capital for both Essent Guaranty, Inc. and Essent Guaranty of PA, Inc. was 16.5:1 as of December 31, 2013, compared to 15.8:1 as of December 31, 2012.

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 31467424 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 31467424.

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 listed under "Risk Factors" in the prospectus dated as of October 30, 2013 filed pursuant to Rule 424(b)(4) with the Securities and Exchange Commission on November 1, 2013. 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)
Exhibit A:				Condensed Consolidated Statements of Comprehensive Income (Loss) (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 (Loss) (Unaudited)
		Quarter ended December 31,								Year ended December 31,
(In thousands, except per share amounts)		2013				2012				2013				2012
Revenues:
Net premiums written		$	52,878			$	28,219			$	186,200			$	72,668
Increase in unearned premiums			(12,534	)			(11,721	)			(62,829	)			(30,875	)
Net premiums earned			40,344				16,498				123,371				41,793
Net investment income			1,228				697				4,110				2,269
Realized investment gains, net			21				35				116				143
Other income			760				1,183				3,806				4,511
Total revenues			42,353				18,413				131,403				48,716
Losses and expenses:
Provision for losses and LAE			692				492				2,321				1,466
Other underwriting and operating expenses			22,299				16,535				71,055				61,126
Total losses and expenses			22,991				17,027				73,376				62,592
Income (loss) before income taxes			19,362				1,386				58,027				(13,876	)
Income tax expense (benefit)			345				345				(7,386	)			(333	)
Net income (loss)		$	19,017			$	1,041			$	65,413			$	(13,543	)
Earnings (loss) per share
Basic:
Common Shares		$	0.23				N/A			$	0.90				N/A
Class A common shares			N/A			$	0.03				N/A			$	(0.49	)
Class B-2 common shares			N/A				-				N/A				-
Diluted:
Common Shares		$	0.22				N/A			$	0.70				N/A
Class A common shares			N/A			$	0.03				N/A			$	(0.49	)
Class B-2 common shares			N/A				-				N/A				-
Weighted average common shares outstanding
Basic:
Common Shares			51,741				N/A				14,044				N/A
Class A common shares			N/A				31,123				N/A				27,445
Class B-2 common shares			N/A				602				N/A				393
Diluted:
Common Shares			55,130				N/A				18,103				N/A
Class A common shares			N/A				31,293				N/A				27,445
Class B-2 common shares			N/A				5,342				N/A				393
Net income (loss)		$	19,017			$	1,041			$	65,413			$	(13,543	)
Other comprehensive income (loss):
Change in unrealized (depreciation) appreciation of investments, net of tax (benefit) expense of $(236) and $(345) in the quarter ended December 31, 2013 and 2012 $(2,080) and $333 in the year ended December 31, 2013 and 2012			(439	)			(641	)			(3,861	)			618
Total other comprehensive income (loss)			(439	)			(641	)			(3,861	)			618
Comprehensive income (loss)		$	18,578			$	400			$	61,552			$	(12,925	)
Loss ratio			1.7	%			3.0	%			1.9	%			3.5	%
Expense ratio			55.3	%			100.2	%			57.6	%			146.3	%
Combined ratio			57.0	%			103.2	%			59.5	%			149.8	%

Exhibit B
Essent Group Ltd. and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)
		December 31,
(In thousands, except per share amounts)		2013				2012
Assets
Investments available for sale, at fair value		$	332,555			$	247,414
Cash			477,655				22,315
Accrued investment income			1,978				1,291
Accounts receivable			10,006				4,894
Deferred policy acquisition costs			6,173				2,203
Property and equipment (at cost, less accumulated depreciation of $36,796 in 2013 and $34,915 in 2012)			4,411				3,626
Prepaid federal income tax			8,000				-
Net deferred tax asset			10,346				-
Other assets			2,846				1,589
Total assets		$	853,970			$	283,332
Liabilities and Stockholders' Equity
Liabilities
Reserve for losses and LAE		$	3,070			$	1,499
Unearned premium reserve			103,399				40,570
Amounts due under Asset Purchase Agreement			4,949				9,841
Accrued payroll and bonuses			13,076				8,284
Other accrued liabilities			7,335				4,015
Total liabilities			131,829				64,209
Commitments and contingencies
Stockholders' Equity
Common stock, $0.015 par value:
Authorized - 233,333 in 2013; issued - 86,491 shares in 2013			1,297				-
Class A common stock, $.01 par value:
Authorized - 75,500 in 2012; issued - 34,817 shares in 2012			-				348
Class B-2 common stock, $.01 par value:
Authorized - 9,270 in 2012; issued - 9,098 shares in 2012			-				91
Additional paid-in capital			754,390				347,924
Accumulated other comprehensive (loss) income			(1,447	)			2,414
Accumulated deficit			(32,099	)			(97,512	)
Treasury stock at cost			-				(34,142	)
Total stockholders' equity			722,141				219,123
Total liabilities and stockholders' equity		$	853,970			$	283,332

Exhibit C
Essent Group Ltd. and Subsidiaries
Supplemental Information
New Insurance Written
NIW by Credit Score
		Quarter ended December 31,												Year ended December 31,
		2013						2012						2013						2012
($ in thousands)
>=760		$	2,135,772		47.2	%		$	2,330,052		57.9	%		$	10,989,279		51.9	%		$	6,388,236		56.8	%
740-759			802,262		17.7				696,159		17.3				3,775,108		17.8				1,989,383		17.7
720-739			651,269		14.4				525,245		13.0				2,909,199		13.8				1,493,243		13.3
700-719			465,611		10.3				279,480		6.9				1,851,773		8.8				801,805		7.1
680-699			341,968		7.5				153,738		3.8				1,231,297		5.8				446,649		4.0
<=679			131,018		2.9				42,257		1.1				395,982		1.9				121,845		1.1
Total		$	4,527,900		100.0	%		$	4,026,931		100.0	%		$	21,152,638		100.0	%		$	11,241,161		100.0	%
NIW by LTV
		Quarter ended December 31,												Year ended December 31,
		2013						2012						2013						2012
($ in thousands)
85.00% and below		$	488,218		10.8	%		$	645,332		16.0	%		$	2,963,619		14.0	%		$	1,659,025		14.8	%
85.01% to 90.00%			1,528,857		33.8				1,573,418		39.1				7,627,333		36.1				4,544,256		40.4
90.01% to 95.00%			2,372,909		52.4				1,787,458		44.4				10,189,658		48.1				4,987,088		44.3
95.01% and above			137,916		3.0				20,723		0.5				372,028		1.8				50,792		0.5
		$	4,527,900		100.0	%		$	4,026,931		100.0	%		$	21,152,638		100.0	%		$	11,241,161		100.0	%
NIW by Product
		Quarter ended December 31,												Year ended December 31,
		2013						2012						2013						2012
Single Premium policies					19.2	%					18.4	%					20.0	%					17.1	%
Monthly Premium policies					80.8						81.6						80.0						82.9
					100.0	%					100.0	%					100.0	%					100.0	%
NIW by Purchase vs. Refinance
		Quarter ended December 31,												Year ended December 31,
		2013						2012						2013						2012
Purchase					86.9	%					60.1	%					72.1	%					64.4	%
Refinance					13.1						39.9						27.9						35.6
					100.0	%					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		December 31, 2013						December 31, 2012
($ in thousands)
>=760		$	17,102,961		53.3	%		$	7,778,575		57.1	%
740-759			5,724,933		17.9				2,402,603		17.6
720-739			4,380,452		13.7				1,801,292		13.2
700-719			2,646,717		8.3				988,160		7.3
680-699			1,665,196		5.2				520,496		3.9
<=679			507,937		1.6				137,854		0.9
Total		$	32,028,196		100.0	%		$	13,628,980		100.0	%
Total RIF by FICO score		December 31, 2013						December 31, 2012
($ in thousands)
>=760		$	4,106,913		52.9	%		$	1,822,677		56.6	%
740-759			1,399,308		18.0				572,440		17.8
720-739			1,081,286		13.9				435,100		13.5
700-719			637,086		8.2				230,802		7.2
680-699			415,414		5.3				126,200		4.0
<=679			128,598		1.7				34,412		0.9
Total		$	7,768,605		100.0	%		$	3,221,631		100.0	%
Portfolio by LTV
Total IIF by LTV		December 31, 2013						December 31, 2012
($ in thousands)
85.00% and below		$	4,322,612		13.5	%		$	1,994,994		14.6	%
85.01% to 90.00%			12,171,460		38.0				5,739,703		42.1
90.01% to 95.00%			15,121,279		47.2				5,839,127		42.8
95.01% and above			412,845		1.3				55,156		0.5
		$	32,028,196		100.0	%		$	13,628,980		100.0	%
Total RIF by LTV		December 31, 2013						December 31, 2012
($ in thousands)
85.00% and below		$	474,763		6.1	%		$	215,739		6.7	%
85.01% to 90.00%			2,858,683		36.8				1,334,525		41.4
90.01% to 95.00%			4,296,135		55.3				1,653,258		51.3
95.01% and above			139,024		1.8				18,109		0.6
		$	7,768,605		100.0	%		$	3,221,631		100.0	%
Portfolio by Loan Amortization Period
Total IIF by Loan Amortization Period		December 31, 2013						December 31, 2012
($ in thousands)
FRM 30 years and higher		$	27,364,633		85.4	%		$	11,211,969		82.3	%
FRM 20-25 years			1,086,120		3.4				585,365		4.3
FRM 15 years			2,354,656		7.4				1,206,579		8.9
ARM 5 years and higher			1,222,787		3.8				625,067		4.5
Total		$	32,028,196		100.0	%		$	13,628,980		100.0	%

Exhibit E
Essent Group Ltd. and Subsidiaries
Supplemental Information
Portfolio Vintage Data
		Original			Remaining
		Insurance			Insurance			% Remaining of			Insurance in Force as of December 31, 2013
		Written			in Force			Original
Origination year		($ in thousands)			($ in thousands)			Insurance			% Purchase			>90% LTV			>95% LTV			FICO < 700			FICO >= 760			% FRM
2010		$	245,898		$	109,231		44.4	%		70.6	%		36.9	%		0.0	%		3.2	%		60.5	%		96.9	%
2011			3,229,720			1,766,709		54.7	%		69.4	%		38.7	%		0.3	%		4.2	%		58.0	%		92.3	%
2012			11,241,161			9,628,905		85.7	%		66.7	%		46.5	%		0.4	%		5.2	%		56.1	%		96.5	%
2013			21,152,638			20,523,351		97.0	%		72.5	%		50.3	%		1.8	%		7.8	%		51.7	%		96.3	%
Total		$	35,869,417		$	32,028,196		89.3	%		70.6	%		48.5	%		1.3	%		6.8	%		53.4	%		96.2	%

Exhibit F
Essent Group Ltd. and Subsidiaries
Supplemental Information
Portfolio Geographic Data
IIF by State
		As of December 31, 2013		As of December 31, 2012
CA		11.1%		10.9%
TX		8.2		7.9
FL		4.6		3.7
NC		4.3		4.3
IL		4.0		4.4
NJ		3.8		4.1
WA		3.6		3.2
PA		3.6		4.1
GA		3.5		3.2
AZ		3.5		3.3
All Others		49.8		50.9
TOTAL		100.0%		100.0%
RIF by State
		As of December 31, 2013		As of December 31, 2012
CA		10.5%		10.4%
TX		8.0		7.7
FL		4.8		3.8
NC		4.4		4.4
IL		4.0		4.4
NJ		3.7		4.0
WA		3.6		3.3
PA		3.6		4.2
GA		3.6		3.4
NY		3.3		3.8
All Others		50.5		50.6
TOTAL		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								Year ended
		December 31,								December 31,
		2013				2012				2013				2012
Beginning default inventory			116				38				56				3
Plus: new defaults			108				50				327				117
Less: cures			(57	)			(31	)			(208	)			(63	)
Less: claims paid			(8	)			(1	)			(16	)			(1	)
Ending default inventory			159				56				159				56
Rollforward of Reserve for Losses and LAE
		Quarter ended								Year ended
		December 31,								December 31,
($ in thousands)		2013				2012				2013				2012
Reserve for losses and LAE at beginning of period		$	2,727			$	1,027			$	1,499			$	57
Add provision for losses and LAE occurring in:
Current year			903				492				2,986				1,523
Prior years			(211	)			-				(665	)			(57	)
Incurred losses during the period			692				492				2,321				1,466
Deduct payments for losses and LAE occurring in:
Current year			144				20				239				24
Prior years			205				-				511				-
Loss and LAE payments during the period			349				20				750				24
Reserve for losses and LAE at end of period		$	3,070			$	1,499			$	3,070			$	1,499
Claims
		Quarter ended								Year ended
		December 31,								December 31,
		2013				2012				2013				2012
Number of claims paid			8				1				16				1
Total amount paid for claims (in thousands)		$	343			$	18			$	720			$	18
Average amount paid per claim (in thousands)		$	43			$	18			$	45			$	18
Severity			87	%			104	%			90	%			104	%

Exhibit G, continued
Essent Group Ltd. and Subsidiaries
Supplemental Information
Defaults, Reserve for Losses and LAE, and Claims
		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								$	17,658
Total								$	19,310
Default Rate		0.11	%
		As of December 31, 2012
		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		30			54	%		$	391		28	%		$	1,335		29	%
Four to eleven payments		19			34	%			689		49	%			948		73	%
Twelve or more payments		4			7	%			132		10	%			184		72	%
Pending claims		3			5	%			181		13	%			168		108	%
TOTAL		56			100	%			1,393		100	%		$	2,635		53	%
IBNR									70
LAE									36
TOTAL								$	1,499
Average reserve per default:
Case								$	24,860
Total								$	26,760
Default Rate		0.09	%

Exhibit H
Essent Group Ltd. and Subsidiaries
Supplemental Information
Investment Portfolio
Investment Portfolio by Asset Class
Asset Class		December 31, 2013							December 31, 2012
($ in thousands)		Fair Value			Percent				Fair Value			Percent
US Treasury securities		$	59,187			17.8	%		$	79,488		32.0	%
US Agency securities			14,839			4.5				19,593		8.0
US Agency Mortgage-backed securities			22,241			6.7				29,640		12.0
Municipal debt securities			57,650			17.3				37,654		15.2
Corporate debt securities			125,593			37.8				63,399		25.6
Mortgage-backed securities			18,581			5.6				5,592		2.3
Asset-backed securities			20,385			6.1				8,951		3.6
Money market investments			14,079			4.2				3,097		1.3
Total Investments		$	332,555			100.0	%		$	247,414		100.0	%
Investment Portfolio by Credit Rating
Rating (1)		December 31, 2013							December 31, 2012
($ in thousands)		Fair Value			Percent				Fair Value			Percent
Aaa		$	147,862			44.5	%		$	159,763		64.6	%
Aa1			21,570			6.5				13,317		5.4
Aa2			15,464			4.6				8,144		3.3
Aa3			11,902			3.6				4,031		1.6
A1			26,541			8.0				11,621		4.7
A2			17,045			5.1				16,521		6.7
A3			29,886			9.0				16,401		6.6
Baa1			24,441			7.3				6,321		2.6
Baa2			30,782			9.3				9,753		3.9
Baa3			7,062			2.1				1,542		0.6
Below Baa3			-			-				-		-
Total Investments		$	332,555			100.0	%		$	247,414		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
		December 31, 2013							December 31, 2012
Effective Duration ($ in thousands)		Fair Value			Percent				Fair Value			Percent
< 1 Year		$	65,092			19.6	%		$	33,345		13.5	%
1 to < 2 Years			19,093			5.7				41,712		16.9
2 to < 3 Years			74,335			22.4				33,475		13.5
3 to < 4 Years			63,214			19.0				42,516		17.1
4 to < 5 Years			66,230			19.9				47,469		19.2
5 or more Years			44,591			13.4				48,897		19.8
Total Investment Securities		$	332,555			100.0	%		$	247,414		100.0	%
Pre-tax investment income yield:
Year ended December 31, 2013						1.1	%
Year ended December 31, 2012						1.2	%
Cash and Investments at holding company Essent Group Ltd. ($ in thousands):
As of December 31, 2013					$	246,220
As of December 31, 2012					$	4,035

Exhibit I
Essent Group Ltd. and Subsidiaries
Supplemental Information
Insurance Company Capital
			As of
			December 31, 2013			December 31, 2012
Combined statutory capital (A)			$	469,424		$	203,611
Risk to capital ratios: (B)
	Essent Guaranty, Inc.			16.6:1			15.8:1
	Essent Guaranty of PA, Inc.			17.1:1			16.2:1
	Combined (C)			16.5:1			15.8:1

(A) Combined statutory capital equals 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
		2013																2012
Selected Income Statement Data		December 31				September 30				June 30				March 31				December 31
(in thousands, except per share amounts)
Revenues:
Net premiums written		$	52,878			$	55,026			$	44,923			$	33,373			$	28,219
Net premiums earned			40,344				34,282				27,481				21,264				16,498
Other revenues			2,009				2,173				2,083				1,767				1,915
Total revenues			42,353				36,455				29,564				23,031				18,413
Losses and expenses:
Provision for losses and LAE			692				319				580				730				492
Other underwriting and operating expenses			22,299				18,237				15,557				14,962				16,535
Total losses and expenses			22,991				18,556				16,137				15,692				17,027
Income (loss) before income taxes			19,362				17,899				13,427				7,339				1,386
Income tax expense (benefit)			345				2,280				(10,150	)			139				345
Net income		$	19,017			$	15,619			$	23,577			$	7,200			$	1,041
Earnings (loss) per share:
Basic:
Common Shares		$	0.23				N/A				N/A				N/A				N/A
Class A common shares			N/A			$	0.36			$	0.63			$	0.23			$	0.03
Class B-2 common shares			N/A				0.07				0.40				-				-
Diluted:
Common Shares		$	0.22				N/A				N/A				N/A				N/A
Class A common shares			N/A			$	0.35			$	0.62			$	0.23			$	0.03
Class B-2 common shares			N/A				0.02				0.09				-				-
Weighted average common shares outstanding
Basic:
Common Shares			51,741				N/A				N/A				N/A				N/A
Class A common shares			N/A				43,616				36,793				31,805				31,123
Class B-2 common shares			N/A				1,822				1,334				853				602
Diluted:
Common Shares			55,130				N/A				N/A				N/A				N/A
Class A common shares			N/A				43,788				36,901				31,864				31,293
Class B-2 common shares			N/A				6,054				5,994				6,009				5,342
Other Data:
($ in thousands)
Loss ratio (1)			1.7	%			0.9	%			2.1	%			3.4	%			3.0	%
Expense ratio (2)			55.3	%			53.2	%			56.6	%			70.4	%			100.2	%
Combined ratio			57.0	%			54.1	%			58.7	%			73.8	%			103.2	%
New insurance written		$	4,527,900			$	6,408,055			$	5,895,127			$	4,321,556			$	4,026,931
Average premium rate (3)			0.54	%			0.54	%			0.55	%			0.55	%			0.56	%
Insurance in force (end of period)		$	32,028,196			$	28,198,722			$	22,576,300			$	17,430,810			$	13,628,980
Policies in force			141,417				123,737				98,818				76,455				59,764
Weighted-average coverage (4)			24.3	%			24.0	%			23.7	%			23.5	%			23.6	%
Annual persistency			86.1	%			83.1	%			80.1	%			80.9	%			82.2	%
Loans in default (count)			159				116				90				75				56
Percentage of loans in default			0.11	%			0.09	%			0.09	%			0.10	%			0.09	%

(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			Year ended
		December 31, 2013			December 31, 2013
Net income (loss)		$	19,017		$	65,413
Less: Class A dividends declared			-			-
Less: Class B-2 dividends declared			-			-
Undistributed net income (loss)		$	19,017		$	65,413
Net income (loss) allocable to Common (1)		$	12,037		$	12,706
Net income (loss) allocable to Class A (2)			6,980			52,707
Basic earnings (loss) per Common share:		$	0.23		$	0.90
Diluted earnings (loss) per Common share:		$	0.22		$	0.70
Basic weighted average Common shares outstanding (3):			51,741			14,044
Diluted weighted average Common shares outstanding (3):			55,130			18,103

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.
(1)		For purposes of determining EPS in the quarter and the year ended December 31, 2013, the net income allocated to the Class B-2 common shares and all the net income of the Company for the period following the IPO has been allocated to the Common Shares.
(2)		The Class A common shares accrued a 10% cumulative dividend and the Class B-2 common shares had no stated dividend rate with any dividends being declared at the discretion of the Company's Board of Directors. Accordingly, substantially all of the net income for the periods prior to the IPO was allocated to the Class A common shares for purposes of determining EPS.
(3)		The weighted average basic and diluted Common Shares outstanding for the periods indicated includes: (a) the weighted average Class B-2 common shares outstanding (adjusted for the 2 for 3 share split) for the period from January 1, 2013 until the date of the conversion to Common Shares at the IPO, and (b) the weighted average Common Shares outstanding for the period from November 5, 2013 until December 31, 2013.

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 Share Units Outstanding 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 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 December 31, 2013 in accordance with Regulation G:

(in thousands, except per share amounts)
				December 31, 2013
Numerator:
	Total Stockholders' Equity (Book Value)			$	722,141
	Add Back: Accumulated Other Comprehensive Loss				1,447
	Adjusted Book Value			$	723,588
Denominator:
	Total Outstanding Common shares				86,491
	Add: Outstanding Restricted Share Units				528
	Total outstanding Common shares and share units				87,019
	Adjusted Book Value per Share			$	8.32

Source: Essent Group Ltd.