News Details

HAMILTON, Bermuda--(BUSINESS WIRE)-- Essent Group Ltd. (NYSE: ESNT) today reported net income for the quarter ended September 30, 2014 of $25.1 million or $0.29 per diluted share. As of September 30, 2014, Essent had primary insurance in force of $46.4 billion and consolidated stockholders’ equity of $794.9 million.

For the third quarter of 2014, Essent Guaranty, Inc.’s New Insurance Written (“NIW”) totaled $8.8 billion, which included $1.5 billion of NIW related to a pool of loans on which Essent Guaranty was selected by Fannie Mae to be the sole insurer.

Additionally, Essent’s Bermuda reinsurer, Essent Reinsurance, Ltd. (“Essent Re”), was selected by Freddie Mac to participate in Freddie Mac’s ACIS 2014-2 transaction and insure $28.5 million of risk that Freddie Mac had retained as part of its STACR 2014-DN1 transaction. Also during the quarter, Essent Re began reinsuring new business from Essent Guaranty as part of the affiliate quota share effective July 1, 2014.

“We continue to execute upon our goal of building a high credit quality and profitable mortgage insurance portfolio,” said Mark Casale, Chairman and Chief Executive Officer. “We also are very pleased to have successfully executed upon growth opportunities relating to GSE risk share, as well as reinsurance through Essent Re. Essent is well positioned and we remain very optimistic about the future of our franchise.”

Financial Highlights:

• Insurance in force as of September 30, 2014 was $46.4 billion, compared to $39.4 billion as of June 30, 2014 and $28.2 billion as of September 30, 2013.
• Flow new insurance written for the third quarter of 2014 was $7.3 billion, compared to $5.9 billion in the second quarter of 2014 and $6.4 billion in the third quarter of 2013.
• Net premiums earned for the third quarter of 2014 were $60.3 million, compared to $50.3 million in the second quarter of 2014 and $34.3 million in the third quarter of 2013.
• Income before taxes for the third quarter of 2014 was $38.8 million, compared to $29.7 million for the second quarter of 2014 and $17.9 million for the third quarter of 2013.
• The expense ratio for the third quarter of 2014 was 40.6%, compared to 47.0% for the second quarter of 2014 and 53.2% for the third quarter of 2013.
• The provision for losses and LAE for the third quarter of 2014 was $1.4 million, compared to $1.0 million for the second quarter of 2014 and $0.3 million for the third quarter of 2013.
• The percentage of loans in default as of September 30, 2014 was 0.15%, compared to 0.13% as of June 30, 2014 and 0.09% as of September 30, 2013.
• The combined ratio for the third quarter of 2014 was 42.9%, compared to 48.9% for the second quarter of 2014 and 54.1% for the third quarter of 2013.
• Essent Group Ltd. contributed approximately $100 million of capital to Essent Re in support of the affiliate quota share and current and future reinsurance transactions.
• The consolidated balance of cash and investments at September 30, 2014 was $914.7 million, including cash and investment balances at the holding company of $47.1 million.
• The 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 September 30, 2014.

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 17832737 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 17832737.

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 September 30, 2014
Exhibit A:			Condensed Consolidated Statements of Comprehensive Income (Unaudited)
Exhibit B:			Condensed Consolidated Balance Sheets (Unaudited)
Exhibit C:			Historical Quarterly Data
Exhibit D:			New Insurance Written
Exhibit E:			Insurance in Force and Risk in Force
Exhibit F:			Other Risk in Force
Exhibit G:			Portfolio Vintage Data
Exhibit H:			Portfolio Geographic Data
Exhibit I:			Defaults, Reserve for Losses and LAE, and Claims
Exhibit J:			Investment Portfolio
Exhibit K:			Insurance Company Capital
Exhibit L:			Earnings per Share
Exhibit M:			Reconciliation of Non-GAAP Financial Measure - Adjusted Book Value per Share

Exhibit A
Essent Group Ltd. and Subsidiaries
Condensed Consolidated Statements of Comprehensive Income (Unaudited)
			Three Months Ended September 30,										Nine Months Ended September 30,
(In thousands, except per share amounts)			2014					2013					2014					2013
Revenues:
Net premiums written			$	77,862				$	55,026				$	193,559				$	133,322
Increase in unearned premiums				(17,539	)				(20,744	)				(38,144	)				(50,295	)
Net premiums earned				60,323					34,282					155,415					83,027
Net investment income				3,405					1,138					8,383					2,882
Realized investment gains, net				151					2					619					95
Other income				742					1,033					2,308					3,046
Total revenues				64,621					36,455					166,725					89,050
Losses and expenses:
Provision for losses and LAE				1,391					319					3,259					1,629
Other underwriting and operating expenses				24,469					18,237					71,576					48,756
Total losses and expenses				25,860					18,556					74,835					50,385
Income before income taxes				38,761					17,899					91,890					38,665
Income tax expense (benefit)				13,691					2,280					32,259					(7,731	)
Net income			$	25,070				$	15,619				$	59,631				$	46,396
Earnings per share:
Basic:
Common Shares			$	0.30					N/A				$	0.72					N/A
Class A common shares				N/A				$	0.36					N/A				$	1.22
Class B-2 common shares				N/A					0.07					N/A					0.50
Diluted:
Common Shares			$	0.29					N/A				$	0.70					N/A
Class A common shares				N/A				$	0.35					N/A				$	1.22
Class B-2 common shares				N/A					0.02					N/A					0.11
Weighted average common shares outstanding:
Basic:
Common Shares				83,640					N/A					83,263					N/A
Class A common shares				N/A					43,616					N/A					37,449
Class B-2 common shares				N/A					1,822					N/A					1,340
Diluted:
Common Shares				85,028					N/A					84,811					N/A
Class A common shares				N/A					43,788					N/A					37,573
Class B-2 common shares				N/A					6,054					N/A					6,033
Net income			$	25,070				$	15,619				$	59,631				$	46,396
Other comprehensive income (loss):
Change in unrealized appreciation (depreciation) of investments, net of tax expense (benefit) of ($494) and $339 in the three months ended September 30, 2014 and 2013 and $1,970 and ($1,843) in the nine months ended September 30, 2014 and 2013				(1,405	)				630					3,989					(3,423	)
Total other comprehensive income (loss)				(1,405	)				630					3,989					(3,423	)
Comprehensive income			$	23,665				$	16,249				$	63,620				$	42,973
Loss ratio				2.3	%				0.9	%				2.1	%				2.0	%
Expense ratio				40.6	%				53.2	%				46.1	%				58.7	%
Combined ratio				42.9	%				54.1	%				48.2	%				60.7	%

Exhibit B
Essent Group Ltd. and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)
			September 30,				December 31,
(In thousands, except per share amounts)			2014				2013
Assets
Investments available for sale, at fair value
Fixed maturities			$	790,888			$	318,476
Short-term investments				106,263				14,079
Total investments				897,151				332,555
Cash				17,574				477,655
Accrued investment income				5,034				1,978
Accounts receivable				13,168				10,006
Deferred policy acquisition costs				8,784				6,173
Property and equipment (at cost, less accumulated depreciation of $38,630 in 2014 and $36,796 in 2013)				5,200				4,411
Prepaid federal income tax				42,673				8,000
Net deferred tax asset				-				10,346
Other assets				2,016				2,846
Total assets			$	991,600			$	853,970
Liabilities and Stockholders' Equity
Liabilities
Reserve for losses and LAE			$	5,682			$	3,070
Unearned premium reserve				141,544				103,399
Amounts due under Asset Purchase Agreement				2,493				4,949
Accrued payroll and bonuses				11,119				13,076
Net deferred tax liability				22,036				-
Other accrued liabilities				13,833				7,335
Total liabilities				196,707				131,829
Commitments and contingencies
Stockholders' Equity
Common Shares, $0.015 par value:
Authorized - 233,333; issued - 86,524 shares in 2014 and 86,491 shares in 2013				1,298				1,297
Additional paid-in capital				763,521				754,390
Accumulated other comprehensive income (loss)				2,542				(1,447	)
Retained earnings (accumulated deficit)				27,532				(32,099	)
Total stockholders' equity				794,893				722,141
Total liabilities and stockholders' equity			$	991,600			$	853,970

Exhibit C
Essent Group Ltd. and Subsidiaries
Supplemental Information
Historical Quarterly Data
			2014															2013
Selected Income Statement Data			September 30					June 30					March 31					December 31					September 30					June 30					March 31
(In thousands, except per share amounts)
Revenues:
Net premiums written			$	77,862				$	63,505				$	52,192				$	52,878				$	55,026				$	44,923				$	33,373
Net premiums earned				60,323					50,342					44,750					40,344					34,282					27,481					21,264
Other revenues				4,298					3,941					3,071					2,009					2,173					2,083					1,767
Total revenues				64,621					54,283					47,821					42,353					36,455					29,564					23,031
Losses and expenses:
Provision for losses and LAE				1,391					966					902					692					319					580					730
Other underwriting and operating expenses				24,469					23,648					23,459					22,299					18,237					15,557					14,962
Total losses and expenses				25,860					24,614					24,361					22,991					18,556					16,137					15,692
Income before income taxes				38,761					29,669					23,460					19,362					17,899					13,427					7,339
Income tax expense (benefit)				13,691					10,114					8,454					345					2,280					(10,150	)				139
Net income			$	25,070				$	19,555				$	15,006				$	19,017				$	15,619				$	23,577				$	7,200
Earnings per share:
Basic:
Common Shares			$	0.30				$	0.23				$	0.18				$	0.23					N/A					N/A					N/A
Class A common shares				N/A					N/A					N/A					N/A				$	0.36				$	0.63				$	0.23
Class B-2 common shares				N/A					N/A					N/A					N/A					0.07					0.40					-
Diluted:
Common Shares			$	0.29				$	0.23				$	0.18				$	0.22					N/A					N/A					N/A
Class A common shares				N/A					N/A					N/A					N/A				$	0.35				$	0.62				$	0.23
Class B-2 common shares				N/A					N/A					N/A					N/A					0.02					0.09					-
Weighted average common shares outstanding:
Basic:
Common Shares				83,640					83,276					82,864					51,741					N/A					N/A					N/A
Class A common shares				N/A					N/A					N/A					N/A					43,616					36,793					31,805
Class B-2 common shares				N/A					N/A					N/A					N/A					1,822					1,334					853
Diluted:
Common Shares				85,028					84,706					84,696					55,130					N/A					N/A					N/A
Class A common shares				N/A					N/A					N/A					N/A					43,788					36,901					31,864
Class B-2 common shares				N/A					N/A					N/A					N/A					6,054					5,994					6,009
Other Data:
($ in thousands)
Loss ratio (1)				2.3	%				1.9	%				2.0	%				1.7	%				0.9	%				2.1	%				3.4	%
Expense ratio (2)				40.6	%				47.0	%				52.4	%				55.3	%				53.2	%				56.6	%				70.4	%
Combined ratio				42.9	%				48.9	%				54.4	%				57.0	%				54.1	%				58.7	%				73.8	%
(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.

Exhibit C, continued
Essent Group Ltd. and Subsidiaries
Supplemental Information
Historical Quarterly Data
			2014															2013
Other Data, continued:			September 30					June 30					March 31					December 31					September 30					June 30					March 31
($ in thousands)
Flow:
New insurance written			$	7,283,169				$	5,874,334				$	3,630,573				$	4,527,900				$	6,408,055				$	5,895,127				$	4,321,556
New risk written				1,802,408					1,477,547					907,257					1,147,560					1,584,267					1,409,905					991,011
Bulk:
New insurance written			$	1,506,529				$	-				$	-				$	-				$	-				$	-				$	-
New risk written				30,131					-					-					-					-					-					-
Consolidated:
Average premium rate (3)				0.55	%				0.54	%				0.54	%				0.54	%				0.54	%				0.55	%				0.55	%
New insurance written			$	8,789,698				$	5,874,334				$	3,630,573				$	4,527,900				$	6,408,055				$	5,895,127				$	4,321,556
New risk written			$	1,832,539				$	1,477,547				$	907,257				$	1,147,560				$	1,584,267				$	1,409,905				$	991,011
Insurance in force (end of period)			$	46,428,526				$	39,379,879				$	34,778,057				$	32,028,196				$	28,198,722				$	22,576,300				$	17,430,810
Risk in Force (end of period)			$	11,152,497				$	9,700,549				$	8,493,862				$	7,768,605				$	6,764,997				$	5,348,917				$	4,100,835
Policies in force				209,841					175,773					154,451					141,417					123,737					98,818					76,455
Weighted-average coverage (4)				24.0	%				24.6	%				24.4	%				24.3	%				24.0	%				23.7	%				23.5	%
Annual persistency				88.5	%				89.1	%				87.9	%				86.1	%				83.1	%				80.1	%				80.9	%
Loans in default (count)				312					235					192					159					116					90					75
Percentage of loans in default				0.15	%				0.13	%				0.12	%				0.11	%				0.09	%				0.09	%				0.10	%
(3) Average premium rate is calculated by dividing net premium earned by average insurance in force for the period.
(4) Weighted average coverage is calculated by dividing end of period risk in force by insurance in force.

		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, 2014									September 30, 2013									September 30, 2014									September 30, 2013
($ in thousands)
		>=760			$	3,161,643				43.4	%			$	3,254,723				50.8	%			$	7,427,303				44.2	%			$	8,853,507				53.3	%
		740-759				1,189,598				16.3					1,158,506				18.1					2,790,779				16.6					2,972,846				17.9
		720-739				1,051,260				14.4					893,464				13.9					2,446,079				14.6					2,257,930				13.6
		700-719				778,524				10.7					589,426				9.2					1,783,235				10.6					1,386,162				8.3
		680-699				637,821				8.8					382,771				6.0					1,443,347				8.6					889,329				5.3
		<=679				464,323				6.4					129,165				2.0					897,333				5.4					264,964				1.6
Total					$	7,283,169				100.0	%			$	6,408,055				100.0	%			$	16,788,076				100.0	%			$	16,624,738				100.0	%
Weighted-average Credit Score						747									756									748									758
NIW by LTV
					Three months ended																		Nine months ended
					September 30, 2014									September 30, 2013									September 30, 2014									September 30, 2013
($ in thousands)
		85.00% and below			$	952,873				13.1	%			$	776,563				12.1	%			$	2,060,257				12.3	%			$	2,475,401				14.9	%
		85.01% to 90.00%				2,419,571				33.2					2,311,452				36.1					5,636,695				33.6					6,098,476				36.7
		90.01% to 95.00%				3,840,911				52.7					3,178,262				49.6					8,971,604				53.4					7,816,748				47.0
		95.01% and above				69,814				1.0					141,778				2.2					119,520				0.7					234,113				1.4
					$	7,283,169				100.0	%			$	6,408,055				100.0	%			$	16,788,076				100.0	%			$	16,624,738				100.0	%
Weighted-average LTV						92	%								92	%								92	%								91	%
NIW by Product
					Three months ended																		Nine months ended
					September 30, 2014									September 30, 2013									September 30, 2014									September 30, 2013
Single Premium policies										19.9	%								21.0	%								19.1	%								20.2	%
Monthly Premium policies										80.1									79.0									80.9									79.8
										100.0	%								100.0	%								100.0	%								100.0	%
NIW by Purchase vs. Refinance
					Three months ended																		Nine months ended
					September 30, 2014									September 30, 2013									September 30, 2014									September 30, 2013
Purchase										83.5	%								78.5	%								84.9	%								68.0	%
Refinance										16.5									21.5									15.1									32.0
										100.0	%								100.0	%								100.0	%								100.0	%

Exhibit D, continued
Essent Group Ltd. and Subsidiaries
Supplemental Information
New Insurance Written: Bulk
NIW by Credit Score
					Three months ended																	Nine months ended
					September 30, 2014									September 30, 2013								September 30, 2014									September 30, 2013
($ in thousands)
		>=760			$	490,981				32.6	%			$	-			0.0	%			$	490,981				32.6	%			$	-			0.0	%
		740-759				235,200				15.6					-			-					235,200				15.6					-			-
		720-739				234,988				15.6					-			-					234,988				15.6					-			-
		700-719				233,874				15.5					-			-					233,874				15.5					-			-
		680-699				190,009				12.6					-			-					190,009				12.6					-			-
		<=679				121,477				8.1					-			-					121,477				8.1					-			-
Total					$	1,506,529				100.0	%			$	-			0.0	%			$	1,506,529				100.0	%			$	-			100.0	%
Weighted-average Credit Score						737									N/A								737									N/A
NIW by LTV
					Three months ended																	Nine months ended
					September 30, 2014									September 30, 2013								September 30, 2014									September 30, 2013
($ in thousands)
		85.00% and below			$	51,610				3.4	%			$	-			0.0	%			$	51,610				3.4	%			$	-			0.0	%
		85.01% to 90.00%				121,782				8.1					-			-					121,782				8.1					-			-
		90.01% to 95.00%				717,853				47.7					-			-					717,853				47.7					-			-
		95.01% and above				615,284				40.8					-			-					615,284				40.8					-			-
					$	1,506,529				100.0	%			$	-			0.0	%			$	1,506,529				100.0	%			$	-			0.0	%
Weighted-average LTV						94	%								N/A								94	%								N/A
NIW by Product
					Three months ended																	Nine months ended
					September 30, 2014									September 30, 2013								September 30, 2014									September 30, 2013
Single Premium policies										0.0	%							0.0	%								0.0	%							0.0	%
Monthly Premium policies										100.0								-									100.0								-
										100.0	%							0.0	%								100.0	%							0.0	%
NIW by Purchase vs. Refinance
					Three months ended																	Nine months ended
					September 30, 2014									September 30, 2013								September 30, 2014									September 30, 2013
Purchase										85.8	%							0.0	%								85.8	%							0.0	%
Refinance										14.2								-									14.2								-
										100.0	%							0.0	%								100.0	%							0.0	%

Exhibit E
Essent Group Ltd. and Subsidiaries
Supplemental Information
Insurance in Force and Risk in Force: Consolidated
Portfolio by Credit Score
Total IIF by FICO score					September 30, 2014									June 30, 2014									September 30, 2013
($ in thousands)
		>=760			$	22,859,418				49.2	%			$	20,157,165				51.2	%			$	15,376,726				54.5	%
		740-759				8,102,165				17.5					6,963,735				17.7					5,033,831				17.9
		720-739				6,561,002				14.1					5,502,718				14.0					3,820,099				13.5
		700-719				4,342,161				9.4					3,481,564				8.8					2,233,146				7.9
		680-699				3,102,261				6.7					2,368,613				6.0					1,348,761				4.8
		<=679				1,461,519				3.1					906,084				2.3					386,159				1.4
Total					$	46,428,526				100.0	%			$	39,379,879				100.0	%			$	28,198,722				100.0	%
Weighted-average Credit Score						754									756									759
Total RIF by FICO score					September 30, 2014									June 30, 2014									September 30, 2013
($ in thousands)
		>=760			$	5,490,591				49.2	%			$	4,913,013				50.6	%			$	3,654,156				54.0	%
		740-759				1,960,787				17.6					1,722,247				17.8					1,217,185				18.0
		720-739				1,593,492				14.3					1,376,538				14.2					933,041				13.8
		700-719				1,019,259				9.1					855,985				8.8					532,016				7.9
		680-699				745,744				6.7					601,426				6.2					331,908				4.9
		<=679				342,624				3.1					231,340				2.4					96,691				1.4
Total					$	11,152,497				100.0	%			$	9,700,549				100.0	%			$	6,764,997				100.0	%
Portfolio by LTV
Total IIF by LTV					September 30, 2014									June 30, 2014									September 30, 2013
($ in thousands)
		85.00% and below			$	5,581,330				12.0	%			$	4,928,612				12.5	%			$	3,976,461				14.1	%
		85.01% to 90.00%				16,358,760				35.2	%				14,516,271				36.9					10,921,950				38.8
		90.01% to 95.00%				23,383,926				50.4	%				19,489,901				49.5					13,011,241				46.1
		95.01% and above				1,104,510				2.4	%				445,095				1.1					289,070				1.0
						46,428,526				100.0	%			$	39,379,879				100.0	%			$	28,198,722				100.0	%
Weighted-average LTV						92	%								91	%								91	%
Total RIF by LTV					September 30, 2014									June 30, 2014									September 30, 2013
($ in thousands)
		85.00% and below			$	621,083				5.6	%			$	550,950				5.7	%			$	433,962				6.4	%
		85.01% to 90.00%				3,859,783				34.6	%				3,434,553				35.4					2,552,587				37.8
		90.01% to 95.00%				6,502,875				58.3	%				5,567,538				57.4					3,682,252				54.4
		95.01% and above				168,756				1.5	%				147,508				1.5					96,196				1.4
					$	11,152,497				100.0	%			$	9,700,549				100.0	%			$	6,764,997				100.0	%
Portfolio by Loan Amortization Period
Total IIF by Loan Amortization Period					September 30, 2014									June 30, 2014									September 30, 2013
($ in thousands)
		FRM 30 years and higher			$	40,633,185				87.5	%			$	34,103,315				86.6	%			$	23,853,792				84.6	%
		FRM 20-25 years				1,208,777				2.6					1,150,105				2.9					1,048,754				3.7
		FRM 15 years				2,555,323				5.5					2,434,151				6.2					2,246,361				8.0
		ARM 5 years and higher				2,031,241				4.4					1,692,308				4.3					1,049,815				3.7
		Total			$	46,428,526				100.0	%			$	39,379,879				100.0	%			$	28,198,722				100.0	%

Exhibit F

Essent Group Ltd. and Subsidiaries

Supplemental Information

Other Risk in Force

($ in thousands)

September 30, 2014

ACIS (A)

$

28,398

(A)		In the third quarter of 2014, Essent Reinsurance, Ltd. issued an insurance policy in connection with Freddie Mac's Agency Credit Insurance Structure ("ACIS") program. This policy covers the risk in force on the loans in the reference pools associated with the STACR 2014 DN-1 notes issued by Freddie Mac in February 2014.

Exhibit G
Essent Group Ltd. and Subsidiaries
Supplemental Information
Portfolio Vintage Data: Consolidated
			Original Insurance Written ($ in thousands)				Remaining Insurance in Force ($ in thousands)				% Remaining of Original Insurance
															Insurance in Force as of September 30, 2014
Origination year															% Purchase				>90% LTV				>95% LTV				FICO < 700				FICO >= 760				% FRM
2010			$	245,899			$	83,810			34.1	%			72.8	%			35.9	%			0.0	%			3.1	%			59.0	%			98.1	%
2011				3,229,492				1,408,705			43.6				71.5				40.0				0.2				4.2				57.7				93.3
2012				11,240,062				8,307,209			73.9				68.8				48.2				0.5				5.2				56.0				96.8
2013				21,146,735				18,781,640			88.8				73.8				51.5				1.8				7.8				51.4				96.5
2014 (through September 30)				18,294,605				17,847,162			97.6				85.1				57.3				4.1				14.6				43.1				94.3
Total			$	54,156,793			$	46,428,526			85.7				77.2				52.7				2.4				9.8				49.2				95.6

Exhibit H
Essent Group Ltd. and Subsidiaries
Supplemental Information
Portfolio Geographic Data: Consolidated
IIF by State
			As of September 30, 2014			As of June 30, 2014			As of September 30, 2013
CA			10.4%			11.0%			11.1%
TX			8.3			8.5			8.2
FL			5.1			5.1			4.4
MA			4.1			2.6			2.9
WA			4.1			4.0			3.5
NC			4.0			4.3			4.3
IL			3.8			3.9			4.1
PA			3.5			3.3			3.7
NJ			3.4			3.5			3.8
AZ			3.4			3.5			3.5
All Others			49.9			50.3			50.5
TOTAL			100.0%			100.0%			100.0%
RIF by State
			As of September 30, 2014			As of June 30, 2014			As of September 30, 2013
CA			10.0%			10.4%			10.5%
TX			8.4			8.3			7.9
FL			5.4			5.3			4.6
NC			4.3			4.4			4.4
WA			4.2			4.0			3.6
IL			4.0			4.0			4.2
GA			3.6			3.6			3.6
NJ			3.4			3.4			3.7
PA			3.3			3.4			3.7
AZ			3.3			3.3			3.3
All Others			50.1			49.9			50.5
TOTAL			100.0%			100.0%			100.0%

Exhibit I
Essent Group Ltd. and Subsidiaries
Supplemental Information
Defaults, Reserve for Losses and LAE, and Claims
Rollforward of Insured Loans in Default
			Three months ended										Nine months ended
			September 30,					September 30,					September 30,					September 30,
			2014					2013					2014					2013
Beginning default inventory				235					90					159					56
Plus: new defaults				237					84					555					219
Less: cures				(156	)				(56	)				(382	)				(151	)
Less: claims paid				(4	)				(2	)				(20	)				(8	)
Ending default inventory				312					116					312					116
Rollforward of Reserve for Losses and LAE
			Three months ended										Nine months ended
			September 30,					September 30,					September 30,					September 30,
($ in thousands)			2014					2013					2014					2013
Reserve for losses and LAE at beginning of period			$	4,506				$	2,548				$	3,070				$	1,499
Add provision for losses and LAE occurring in:
Current year				1,502					648					3,954					2,083
Prior years				(111	)				(329	)				(695	)				(454	)
Incurred losses during the period				1,391					319					3,259					1,629
Deduct payments for losses and LAE occurring in:
Current year				1					91					1					95
Prior years				214					49					646					306
Loss and LAE payments during the period				215					140					647					401
Reserve for losses and LAE at end of period			$	5,682				$	2,727				$	5,682				$	2,727
Claims
			Three months ended										Nine months ended
			September 30,					September 30,					September 30,					September 30,
			2014					2013					2014					2013
Number of claims paid				4					2					20					8
Total amount paid for claims (in thousands)			$	214				$	128				$	636				$	376
Average amount paid per claim (in thousands)			$	54				$	64				$	32				$	47
Severity				108	%				64	%				73	%				77	%

Exhibit I, continued
Essent Group Ltd. and Subsidiaries
Supplemental Information
Defaults, Reserve for Losses and LAE, and Claims
			As of September 30, 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			175				56	%			$	1,773			34	%			$	9,464			19	%
Four to eleven payments			105				34					2,405			46					4,865			49
Twelve or more payments			26				8					788			15					1,042			76
Pending claims			6				2					226			5					223			101
TOTAL			312				100	%				5,192			100	%			$	15,594			33
IBNR												389
LAE												101
TOTAL											$	5,682
Average reserve per default:
Case											$	16.6
Total											$	18.2
Default Rate			0.15	%
			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 September 30, 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			57				49	%			$	729			29	%			$	2,874			25	%
Four to eleven payments			43				37					1,086			43					1,949			56
Twelve or more payments			9				8					317			13					441			72
Pending claims			7				6					369			15					376			98
TOTAL			116				100	%				2,501			100	%			$	5,640			44
IBNR												188
LAE												38
TOTAL											$	2,727
Average reserve per default:
Case											$	21.6
Total											$	23.5
Default Rate			0.09	%

Exhibit J
Essent Group Ltd. and Subsidiaries
Supplemental Information
Investment Portfolio
Investment Portfolio by Asset Class
Asset Class			September 30, 2014										December 31, 2013
($ in thousands)			Fair Value					Percent					Fair Value				Percent
U.S. Treasury securities			$	68,603					7.6	%			$	59,187			17.8	%
U.S. Agency securities				6,140					0.7					14,839			4.5
U.S. Agency Mortgage-backed securities				69,143					7.7					22,241			6.7
Municipal debt securities				190,656					21.3					57,650			17.3
Corporate debt securities				271,988					30.4					125,593			37.8
Mortgage-backed securities				62,276					6.9					18,581			5.6
Asset-backed securities				122,082					13.6					20,385			6.1
Money market investments				106,263					11.8					14,079			4.2
Total Investments			$	897,151					100.0	%			$	332,555			100.0	%
Investment Portfolio by Credit Rating
Rating (1)			September 30, 2014										December 31, 2013
($ in thousands)			Fair Value					Percent					Fair Value				Percent
Aaa			$	430,061					47.9	%			$	147,862			44.5	%
Aa1				37,616					4.2					21,570			6.5
Aa2				47,346					5.3					15,464			4.6
Aa3				45,671					5.1					11,902			3.6
A1				72,101					8.1					26,541			8.0
A2				57,396					6.4					17,045			5.1
A3				64,087					7.1					29,886			9.0
Baa1				59,219					6.6					24,441			7.3
Baa2				71,666					8.0					30,782			9.3
Baa3				11,988					1.3					7,062			2.1
Below Baa3				-					-					-			-
Total Investments			$	897,151					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			September 30, 2014										December 31, 2013
($ in thousands)			Fair Value					Percent					Fair Value				Percent
< 1 Year			$	230,179					25.7	%			$	65,092			19.6	%
1 to < 2 Years				70,118					7.8					19,093			5.7
2 to < 3 Years				132,382					14.8					74,335			22.4
3 to < 4 Years				125,722					14.0					63,214			19.0
4 to < 5 Years				67,250					7.5					66,230			19.9
5 or more Years				271,500					30.2					44,591			13.4
Total Investments			$	897,151					100.0	%			$	332,555			100.0	%
Pre-tax investment income yield:
Three months ended September 30, 2014				1.71	%
Nine months ended September 30, 2014				1.44	%
Net cash and Investments at holding company Essent Group Ltd. ($ in thousands):
As of September 30, 2014								$	47,100
As of December 31, 2013								$	246,220

Exhibit K
Essent Group Ltd. and Subsidiaries
Supplemental Information
Insurance Company Capital
			As of
			September 30, 2014				December 31, 2013
($ in thousands)
US Mortgage Insurance Business:
Combined statutory capital (A)			$	664,206			$	469,424
Combined net risk in force (B)			$	10,713,036			$	7,765,586
Risk to capital ratios: (C)
Essent Guaranty, Inc.				16.2:1				16.6:1
Essent Guaranty of PA, Inc.				16.2:1				17.1:1
Combined (D)				16.1:1				16.5:1
Essent Reinsurance, Ltd. Mortgage Insurance Business:
Stockholders' equity (GAAP basis)			$	102,109			$	389
Net risk in force (B)			$	462,280				N/A

(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) 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 risk to capital ratio is calculated as the ratio of net risk in force to statutory capital.

(D) 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 L
Essent Group Ltd. and Subsidiaries
Supplemental Information
Earnings per Share
			Three months ended September 30,								Nine months ended September 30,
			2014				2013				2014				2013
(In thousands, except per share amounts)
Net income			$	25,070			$	15,619			$	59,631			$	46,396
Less: Class A dividends declared				N/A				-				N/A				-
Less: Class B-2 dividends declared				N/A				-				N/A				-
Undistributed net income			$	25,070			$	15,619			$	59,631			$	46,396
Net income allocable to Common Shares			$	25,070				N/A			$	59,631				N/A
Net income allocable to Class A common shares				N/A			$	15,490				N/A			$	45,727
Net income allocable to Class B-2 common shares				N/A				129				N/A				669
Basic earnings per common share:
Common Shares			$	0.30				N/A			$	0.72				N/A
Class A common shares				N/A			$	0.36				N/A			$	1.22
Class B-2 common shares				N/A				0.07				N/A				0.50
Diluted earnings per common share:
Common Shares			$	0.29				N/A			$	0.70				N/A
Class A common shares				N/A			$	0.35				N/A			$	1.22
Class B-2 common shares				N/A				0.02				N/A				0.11
Basic weighted average common shares outstanding:
Common Shares				83,640				N/A				83,263				N/A
Class A common shares				N/A				43,616				N/A				37,449
Class B-2 common shares				N/A				1,822				N/A				1,340
Diluted weighted average common shares outstanding:
Common Shares				85,028				N/A				84,811				N/A
Class A common shares				N/A				43,788				N/A				37,573
Class B-2 common shares				N/A				6,054				N/A				6,033

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 M

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 September 30, 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 September 30, 2014 and December 31, 2013 in accordance with Regulation G:

(In thousands, except per share amounts)			September 30, 2014				December 31, 2013
Numerator:
Total Stockholders' Equity (Book Value)			$	794,893			$	722,141
Subtract: Accumulated Other Comprehensive Income (Loss)				2,542				(1,447	)
Adjusted Book Value			$	792,351			$	723,588
Denominator:
Total Outstanding Common Shares				86,524				86,491
Add: Outstanding Restricted Share Units				665				528
Total Outstanding Common Shares and Restricted Share Units				87,189				87,019
Adjusted Book Value per Share			$	9.09			$	8.32

Source: Essent Group Ltd.