HAMILTON, Bermuda--(BUSINESS WIRE)--
Essent Group Ltd. (NYSE: ESNT) today reported net income for the quarter
ended December 31, 2018 of $128.5 million or $1.31 per diluted share,
which includes a reduction of $9.9 million, or $.08 per diluted share,
of the $11.1 million loss reserve established in the fourth quarter of
2017 for defaulted loans identified as related to Hurricanes Harvey and
Irma. For the full year 2018, net income was $467.4 million or $4.77 per
diluted share.
“We are pleased with our strong fourth quarter and full year 2018
results as we continued growing our high credit quality and profitable
mortgage insurance portfolio,” said Mark Casale, Chairman and Chief
Executive Officer. “Also during 2018, we successfully piloted our risk
based pricing engine, EssentEDGETM, and executed in the
reinsurance markets. We believe that increased sophistication in the
front-end and back-end of our business positions us well to shape our
insured portfolio and profitably manage the long tail mortgage credit
risk.”
Financial Highlights:
-
Insurance in force as of December 31, 2018 was $137.7 billion,
compared to $131.2 billion as of September 30, 2018 and $110.5 billion
as of December 31, 2017.
-
New insurance written for the fourth quarter was $11.4 billion,
compared to $13.9 billion in the third quarter of 2018 and $11.2
billion in the fourth quarter of 2017.
-
Net premiums earned for the fourth quarter were $173.3 million,
compared to $166.7 million in the third quarter of 2018 and $148.0
million in the fourth quarter of 2017.
-
The expense ratio for the fourth quarter was 22.8%, compared to 22.1%
in the third quarter of 2018 and 24.7% in the fourth quarter of 2017.
-
The provision for losses and LAE for the fourth quarter was a benefit
of $1.0 million, compared to a provision of $5.5 million in the third
quarter of 2018 and a provision of $17.5 million in the fourth quarter
of 2017. The provision in the fourth quarter of 2018 included a $9.9
million release of the $11.1 million reserve associated with loans
identified as related to Hurricanes Harvey and Irma that was
established in the fourth quarter of 2017.
-
The percentage of loans in default as of December 31, 2018 was 0.66%,
compared to 0.61% as of September 30, 2018 and 0.96% as of December
31, 2017.
-
The combined ratio for the fourth quarter was 22.2%, compared to 25.4%
in the third quarter of 2018 and 36.4% in the fourth quarter of 2017.
-
The consolidated balance of cash and investments at December 31, 2018
was $2.9 billion, including cash and investment balances at Essent
Group Ltd. of $78.4 million.
-
The combined risk-to-capital ratio of the U.S. mortgage insurance
business, which includes statutory capital for both Essent Guaranty,
Inc. and Essent Guaranty of PA, Inc., was 13.9:1 as of December 31,
2018.
-
In December, Essent Guaranty, Inc. entered into an excess of loss
(“XOL”) reinsurance agreement with a panel of U.S. and global
reinsurers for $165.2 million of additional protection on mortgage
insurance policies written by Essent in 2017.
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 866-393-4306 inside the U.S.,
or 734-385-2616 for international callers, using passcode 1164457 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 1164457.
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,"
"will," “should,” “expect,” "plan," "anticipate," "believe," “estimate,”
“predict,” or "potential" or the negative thereof or variations thereon
or similar terminology. Actual events, results and outcomes may differ
materially from our expectations due to a variety of known and unknown
risks, uncertainties and other factors. Although it is not possible to
identify all of these risks and factors, they include, among others, the
following: changes in or to Fannie Mae and Freddie Mac (the “GSEs”),
whether through Federal legislation, restructurings or a shift in
business practices; failure to continue to meet the mortgage insurer
eligibility requirements of the GSEs; competition for customers; lenders
or investors seeking alternatives to private mortgage insurance; an
increase in the number of loans insured through Federal government
mortgage insurance programs, including those offered by the Federal
Housing Administration; decline in new insurance written and franchise
value due to loss of a significant customer; decline in the volume of
low down payment mortgage originations; the definition of "Qualified
Mortgage" reducing the size of the mortgage origination market or
creating incentives to use government mortgage insurance programs; the
definition of "Qualified Residential Mortgage" reducing the number of
low down payment loans or lenders and investors seeking alternatives to
private mortgage insurance; the implementation of the Basel III Capital
Accord discouraging the use of private mortgage insurance; a decrease in
the length of time that insurance policies are in force; uncertainty of
loss reserve estimates; deteriorating economic conditions; our non-U.S.
operations becoming subject to U.S. Federal income taxation; becoming
considered a passive foreign investment company for U.S. Federal income
tax purposes; and other risks and factors described in Part I, Item 1A
“Risk Factors” of our Annual Report on Form 10-K for the year ended
December 31, 2017 filed with the Securities and Exchange Commission on
February 20, 2018. 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
(collectively with its subsidiaries, “Essent”) which, through its
wholly-owned subsidiary, Essent Guaranty, Inc., offers private mortgage
insurance for single-family mortgage loans in the United States. Essent
provides private capital to mitigate mortgage credit risk, allowing
lenders to make additional mortgage financing available to prospective
homeowners. Headquartered in Radnor, Pennsylvania, Essent Guaranty, Inc.
is licensed to write mortgage insurance in all 50 states and the
District of Columbia, and is approved by Fannie Mae and Freddie Mac.
Essent also offers mortgage-related insurance, reinsurance and advisory
services through its Bermuda-based subsidiary, Essent Reinsurance Ltd.
Additional information regarding Essent may be found at www.essentgroup.com
and www.essent.us.
Source: Essent Group Ltd.
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Essent Group Ltd. and Subsidiaries
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Financial Results and Supplemental Information (Unaudited)
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Quarter and Year Ended December 31, 2018
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Exhibit A
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Condensed Consolidated Statements of Comprehensive Income (Unaudited)
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Exhibit B
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Condensed Consolidated Balance Sheets (Unaudited)
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Exhibit C
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Historical Quarterly Data
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Exhibit D
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New Insurance Written
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Exhibit E
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Insurance in Force and Risk in Force
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Exhibit F
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Other Risk in Force
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Exhibit G
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Portfolio Vintage Data
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Exhibit H
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Portfolio Geographic Data
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Exhibit I
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Defaults, Reserve for Losses and LAE, and Claims
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Exhibit J
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Investments Available for Sale
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Exhibit K
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Insurance Company Capital
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Exhibit L
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Reconciliation of Non-GAAP Financial Measure - Adjusted Book Value
per Share
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Exhibit A
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Essent Group Ltd. and Subsidiaries
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Condensed Consolidated Statements of Comprehensive Income
(Unaudited)
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Three Months Ended December 31,
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Year Ended December 31,
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(In thousands, except per share amounts)
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2018
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2017
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2018
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2017
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Revenues:
|
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|
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|
|
|
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|
|
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Net premiums written
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$
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176,437
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|
$
|
161,771
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|
$
|
685,287
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|
|
$
|
570,186
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Increase in unearned premiums
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|
|
|
(3,136
|
)
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|
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|
(13,795
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)
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|
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(35,795
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)
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|
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(40,056
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)
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Net premiums earned
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|
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173,301
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|
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|
147,976
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|
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649,492
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|
530,130
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Net investment income
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|
18,597
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|
11,765
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64,091
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|
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|
40,226
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Realized investment gains, net
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|
158
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|
|
252
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|
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|
1,318
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|
|
|
|
2,015
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Other income
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|
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|
1,068
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|
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|
|
1,117
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|
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|
|
4,452
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|
|
|
|
4,140
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Total revenues
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|
193,124
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|
|
|
|
161,110
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|
|
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|
719,353
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|
|
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|
576,511
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Losses and expenses:
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Provision for losses and LAE
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(999
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)
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17,456
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|
11,575
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|
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|
27,232
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Other underwriting and operating expenses
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|
39,449
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|
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|
|
36,480
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|
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|
|
150,900
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|
|
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|
145,533
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Interest expense
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|
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|
2,611
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|
|
|
|
1,817
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|
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|
10,179
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|
|
|
|
5,178
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|
Total losses and expenses
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|
41,061
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|
|
|
|
55,753
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|
|
|
|
172,654
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|
|
|
|
177,943
|
|
|
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|
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|
|
|
|
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Income before income taxes
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|
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|
152,063
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|
|
|
|
105,357
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|
|
|
|
546,699
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|
|
|
|
398,568
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|
Income tax expense (benefit)
|
|
|
|
23,535
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|
|
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|
(57,281
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)
|
|
|
|
79,336
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|
|
|
|
18,821
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|
Net income
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|
|
$
|
128,528
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|
|
|
$
|
162,638
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|
|
|
$
|
467,363
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|
$
|
379,747
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Earnings per share:
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Basic
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$
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1.32
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|
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$
|
1.69
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$
|
4.80
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$
|
4.07
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Diluted
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|
1.31
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|
1.65
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|
|
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4.77
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|
|
|
|
3.99
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Weighted average shares outstanding:
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Basic
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97,450
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96,429
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97,403
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|
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|
93,330
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Diluted
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|
98,066
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98,497
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|
|
|
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97,974
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|
|
|
|
95,211
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|
|
|
|
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|
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Net income
|
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$
|
128,528
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|
|
|
$
|
162,638
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|
|
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$
|
467,363
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|
$
|
379,747
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|
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Other comprehensive income (loss):
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|
Change in unrealized appreciation (depreciation) of investments
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18,456
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(7,230
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)
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|
(25,741
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)
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|
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|
8,068
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|
Total other comprehensive income (loss)
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18,456
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(7,230
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)
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(25,741
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)
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|
8,068
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|
Comprehensive income
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|
$
|
146,984
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|
|
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$
|
155,408
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|
|
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$
|
441,622
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$
|
387,815
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Loss ratio
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(0.6
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)%
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|
|
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11.8
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%
|
|
|
|
1.8
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%
|
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|
|
5.1
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%
|
Expense ratio
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|
|
|
22.8
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|
|
|
|
24.7
|
|
|
|
|
23.2
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|
|
|
|
27.5
|
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Combined ratio
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|
22.2
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%
|
|
|
|
36.4
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%
|
|
|
|
25.0
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%
|
|
|
|
32.6
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%
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
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|
|
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|
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Exhibit B
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|
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Essent Group Ltd. and Subsidiaries
|
Condensed Consolidated Balance Sheets (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
December 31,
|
|
|
December 31,
|
(In thousands, except per share amounts)
|
|
|
2018
|
|
|
2017
|
Assets
|
|
|
|
|
|
|
|
|
|
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Investments
|
|
|
|
|
|
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|
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|
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Fixed maturities available for sale, at fair value
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|
|
$
|
2,605,666
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|
|
|
$
|
1,992,371
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|
Short-term investments available for sale, at fair value
|
|
|
|
154,400
|
|
|
|
|
312,694
|
|
Total investments available for sale
|
|
|
|
2,760,066
|
|
|
|
|
2,305,065
|
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Other invested assets
|
|
|
|
30,952
|
|
|
|
|
500
|
|
Total investments
|
|
|
|
2,791,018
|
|
|
|
|
2,305,565
|
|
Cash
|
|
|
|
64,946
|
|
|
|
|
43,524
|
|
Accrued investment income
|
|
|
|
17,627
|
|
|
|
|
12,807
|
|
Accounts receivable
|
|
|
|
36,881
|
|
|
|
|
29,752
|
|
Deferred policy acquisition costs
|
|
|
|
16,049
|
|
|
|
|
15,354
|
|
Property and equipment
|
|
|
|
7,629
|
|
|
|
|
6,979
|
|
Prepaid federal income tax
|
|
|
|
202,385
|
|
|
|
|
252,157
|
|
Other assets
|
|
|
|
13,436
|
|
|
|
|
8,230
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
$
|
3,149,971
|
|
|
|
$
|
2,674,368
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
Reserve for losses and LAE
|
|
|
$
|
49,464
|
|
|
|
$
|
46,850
|
|
Unearned premium reserve
|
|
|
|
295,467
|
|
|
|
|
259,672
|
|
Net deferred tax liability
|
|
|
|
172,642
|
|
|
|
|
127,636
|
|
Credit facility borrowings, net of deferred costs
|
|
|
|
223,664
|
|
|
|
|
248,591
|
|
Securities purchased payable
|
|
|
|
2,041
|
|
|
|
|
14,999
|
|
Other accrued liabilities
|
|
|
|
40,976
|
|
|
|
|
36,184
|
|
Total liabilities
|
|
|
|
784,254
|
|
|
|
|
733,932
|
|
|
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
Common shares
|
|
|
|
1,472
|
|
|
|
|
1,476
|
|
Additional paid-in capital
|
|
|
|
1,110,800
|
|
|
|
|
1,127,137
|
|
Accumulated other comprehensive loss
|
|
|
|
(28,993
|
)
|
|
|
|
(3,252
|
)
|
Retained earnings
|
|
|
|
1,282,438
|
|
|
|
|
815,075
|
|
Total stockholders' equity
|
|
|
|
2,365,717
|
|
|
|
|
1,940,436
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders' equity
|
|
|
$
|
3,149,971
|
|
|
|
$
|
2,674,368
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average equity
|
|
|
|
21.7
|
%
|
|
|
|
23.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exhibit C
|
Essent Group Ltd. and Subsidiaries
|
Supplemental Information
|
Historical Quarterly Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2018
|
|
|
2017
|
Selected Income Statement Data
|
|
|
December 31
|
|
|
September 30
|
|
|
June 30
|
|
|
March 31
|
|
|
December 31
|
|
|
September 30
|
|
|
June 30
|
|
|
March 31
|
(In thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net premiums written
|
|
|
$
|
176,437
|
|
|
|
$
|
175,221
|
|
|
|
$
|
168,404
|
|
|
|
$
|
165,225
|
|
|
|
$
|
161,771
|
|
|
|
$
|
155,055
|
|
|
|
$
|
134,063
|
|
|
|
$
|
119,297
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net premiums earned (1) |
|
|
|
173,301
|
|
|
|
|
166,675
|
|
|
|
|
156,958
|
|
|
|
|
152,558
|
|
|
|
|
147,976
|
|
|
|
|
137,940
|
|
|
|
|
126,563
|
|
|
|
|
117,651
|
|
Other revenues
|
|
|
|
19,823
|
|
|
|
|
18,323
|
|
|
|
|
16,810
|
|
|
|
|
14,905
|
|
|
|
|
13,134
|
|
|
|
|
12,263
|
|
|
|
|
11,043
|
|
|
|
|
9,941
|
|
Total revenues
|
|
|
|
193,124
|
|
|
|
|
184,998
|
|
|
|
|
173,768
|
|
|
|
|
167,463
|
|
|
|
|
161,110
|
|
|
|
|
150,203
|
|
|
|
|
137,606
|
|
|
|
|
127,592
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Losses and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for losses and LAE (2) |
|
|
|
(999
|
)
|
|
|
|
5,452
|
|
|
|
|
1,813
|
|
|
|
|
5,309
|
|
|
|
|
17,456
|
|
|
|
|
4,313
|
|
|
|
|
1,770
|
|
|
|
|
3,693
|
|
Other underwriting and operating expenses
|
|
|
|
39,449
|
|
|
|
|
36,899
|
|
|
|
|
36,428
|
|
|
|
|
38,124
|
|
|
|
|
36,480
|
|
|
|
|
37,035
|
|
|
|
|
35,686
|
|
|
|
|
36,332
|
|
Interest expense
|
|
|
|
2,611
|
|
|
|
|
2,500
|
|
|
|
|
2,618
|
|
|
|
|
2,450
|
|
|
|
|
1,817
|
|
|
|
|
1,456
|
|
|
|
|
1,189
|
|
|
|
|
716
|
|
Total losses and expenses
|
|
|
|
41,061
|
|
|
|
|
44,851
|
|
|
|
|
40,859
|
|
|
|
|
45,883
|
|
|
|
|
55,753
|
|
|
|
|
42,804
|
|
|
|
|
38,645
|
|
|
|
|
40,741
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
|
152,063
|
|
|
|
|
140,147
|
|
|
|
|
132,909
|
|
|
|
|
121,580
|
|
|
|
|
105,357
|
|
|
|
|
107,399
|
|
|
|
|
98,961
|
|
|
|
|
86,851
|
|
Income tax expense (benefit) (3) (4) |
|
|
|
23,535
|
|
|
|
|
24,136
|
|
|
|
|
21,154
|
|
|
|
|
10,511
|
|
|
|
|
(57,281
|
)
|
|
|
|
29,006
|
|
|
|
|
26,843
|
|
|
|
|
20,253
|
|
Net income
|
|
|
$
|
128,528
|
|
|
|
$
|
116,011
|
|
|
|
$
|
111,755
|
|
|
|
$
|
111,069
|
|
|
|
$
|
162,638
|
|
|
|
$
|
78,393
|
|
|
|
$
|
72,118
|
|
|
|
$
|
66,598
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
1.32
|
|
|
|
$
|
1.19
|
|
|
|
$
|
1.15
|
|
|
|
$
|
1.14
|
|
|
|
$
|
1.69
|
|
|
|
$
|
0.83
|
|
|
|
$
|
0.79
|
|
|
|
$
|
0.73
|
|
Diluted
|
|
|
|
1.31
|
|
|
|
|
1.18
|
|
|
|
|
1.14
|
|
|
|
|
1.13
|
|
|
|
|
1.65
|
|
|
|
|
0.82
|
|
|
|
|
0.77
|
|
|
|
|
0.72
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
97,450
|
|
|
|
|
97,438
|
|
|
|
|
97,426
|
|
|
|
|
97,298
|
|
|
|
|
96,429
|
|
|
|
|
94,185
|
|
|
|
|
91,381
|
|
|
|
|
91,258
|
|
Diluted
|
|
|
|
98,066
|
|
|
|
|
98,013
|
|
|
|
|
97,866
|
|
|
|
|
97,951
|
|
|
|
|
98,497
|
|
|
|
|
96,094
|
|
|
|
|
93,162
|
|
|
|
|
93,023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss ratio (5) |
|
|
|
(0.6
|
)%
|
|
|
|
3.3
|
%
|
|
|
|
1.2
|
%
|
|
|
|
3.5
|
%
|
|
|
|
11.8
|
%
|
|
|
|
3.1
|
%
|
|
|
|
1.4
|
%
|
|
|
|
3.1
|
%
|
Expense ratio (6) |
|
|
|
22.8
|
|
|
|
|
22.1
|
|
|
|
|
23.2
|
|
|
|
|
25.0
|
|
|
|
|
24.7
|
|
|
|
|
26.8
|
|
|
|
|
28.2
|
|
|
|
|
30.9
|
|
Combined ratio
|
|
|
|
22.2
|
%
|
|
|
|
25.4
|
%
|
|
|
|
24.4
|
%
|
|
|
|
28.5
|
%
|
|
|
|
36.4
|
%
|
|
|
|
30.0
|
%
|
|
|
|
29.6
|
%
|
|
|
|
34.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average equity (annualized)
|
|
|
|
22.4
|
%
|
|
|
|
21.5
|
%
|
|
|
|
21.8
|
%
|
|
|
|
22.6
|
%
|
|
|
|
35.0
|
%
|
|
|
|
19.1
|
%
|
|
|
|
19.8
|
%
|
|
|
|
19.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Net premiums earned are net of premiums ceded to third-party
reinsurers beginning in 2018. Premiums ceded totaled $3,731, $3,158,
$3,585 and $294 in the three months ended December 31, 2018, September
30, 2018, June 30, 2018 and March 31, 2018, respectively.
(2) Provision for losses and LAE for the quarter ended December
31, 2018 includes a $9.9 million reduction associated with previously
identified hurricane-related defaults based on the performance to date
and our expectations of the amount of ultimate losses on the remaining
delinquencies. Provision for losses and LAE for the quarter ended
December 31, 2017 includes an $11.1 million provision associated with
defaults identified as related to Hurricanes Harvey and Irma.
(3) Income tax expense for the quarter ended September 30, 2018
includes $1,450 of expense associated with accrual to return adjustments
associated with the completion of the 2017 U.S. federal income tax
return. Income tax expense for the quarters ended March 31, 2018 and
2017 was reduced by $9,549 and $3,023, respectively, of excess tax
benefits associated with the vesting of common shares and common share
units during each period.
(4) Income tax expense for the quarter ended December 31, 2017
was reduced by $85,091 of income tax benefit due to the one-time impact
of the reduced U.S. corporate income tax rate on the company's net
deferred tax liability position.
(5) Loss ratio is calculated by dividing the provision for losses
and LAE by net premiums earned.
(6) Expense ratio is calculated by dividing other underwriting
and operating expenses by net premiums earned.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exhibit C, continued
|
Essent Group Ltd. and Subsidiaries
|
Supplemental Information
|
Historical Quarterly Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2018
|
|
|
2017
|
Other Data, continued:
|
|
|
December 31
|
|
|
September 30
|
|
|
June 30
|
|
|
March 31
|
|
|
December 31
|
|
|
September 30
|
|
|
June 30
|
|
|
March 31
|
($ in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Mortgage Insurance Portfolio
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Flow:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New insurance written
|
|
|
$
|
11,408,542
|
|
|
|
$
|
13,913,191
|
|
|
|
$
|
12,850,642
|
|
|
|
$
|
9,336,150
|
|
|
|
$
|
11,234,855
|
|
|
|
$
|
13,221,038
|
|
|
|
$
|
11,368,276
|
|
|
|
$
|
8,034,153
|
|
New risk written
|
|
|
|
2,838,530
|
|
|
|
|
3,430,942
|
|
|
|
|
3,201,610
|
|
|
|
|
2,295,314
|
|
|
|
|
2,737,008
|
|
|
|
|
3,228,603
|
|
|
|
|
2,786,501
|
|
|
|
|
1,929,832
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bulk:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New insurance written
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
New risk written
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average gross premium rate (7) |
|
|
|
0.50
|
%
|
|
|
|
0.51
|
%
|
|
|
|
0.52
|
%
|
|
|
|
0.52
|
%
|
|
|
|
0.53
|
%
|
|
|
|
0.53
|
%
|
|
|
|
0.53
|
%
|
|
|
|
0.53
|
%
|
Average net premium rate (8) |
|
|
|
0.49
|
%
|
|
|
|
0.50
|
%
|
|
|
|
0.51
|
%
|
|
|
|
0.52
|
%
|
|
|
|
0.53
|
%
|
|
|
|
0.53
|
%
|
|
|
|
0.53
|
%
|
|
|
|
0.53
|
%
|
New insurance written
|
|
|
$
|
11,408,542
|
|
|
|
$
|
13,913,191
|
|
|
|
$
|
12,850,642
|
|
|
|
$
|
9,336,150
|
|
|
|
$
|
11,234,855
|
|
|
|
$
|
13,221,038
|
|
|
|
$
|
11,368,276
|
|
|
|
$
|
8,034,153
|
|
New risk written
|
|
|
$
|
2,838,530
|
|
|
|
$
|
3,430,942
|
|
|
|
$
|
3,201,610
|
|
|
|
$
|
2,295,314
|
|
|
|
$
|
2,737,008
|
|
|
|
$
|
3,228,603
|
|
|
|
$
|
2,786,501
|
|
|
|
$
|
1,929,832
|
|
Insurance in force (end of period)
|
|
|
$
|
137,720,786
|
|
|
|
$
|
131,249,957
|
|
|
|
$
|
122,501,246
|
|
|
|
$
|
115,250,949
|
|
|
|
$
|
110,461,950
|
|
|
|
$
|
103,936,307
|
|
|
|
$
|
95,494,390
|
|
|
|
$
|
87,993,227
|
|
Gross risk in force (end of period) (9) |
|
|
$
|
34,482,448
|
|
|
|
$
|
32,786,194
|
|
|
|
$
|
30,579,106
|
|
|
|
$
|
28,691,561
|
|
|
|
$
|
27,443,985
|
|
|
|
$
|
25,807,358
|
|
|
|
$
|
23,665,045
|
|
|
|
$
|
21,801,667
|
|
Risk in force (end of period)
|
|
|
$
|
33,892,869
|
|
|
|
$
|
32,361,782
|
|
|
|
$
|
30,154,694
|
|
|
|
$
|
28,267,149
|
|
|
|
$
|
27,443,985
|
|
|
|
$
|
25,807,358
|
|
|
|
$
|
23,665,045
|
|
|
|
$
|
21,801,667
|
|
Policies in force
|
|
|
|
608,135
|
|
|
|
|
581,570
|
|
|
|
|
546,576
|
|
|
|
|
517,215
|
|
|
|
|
496,477
|
|
|
|
|
467,483
|
|
|
|
|
430,585
|
|
|
|
|
397,650
|
|
Weighted average coverage (10) |
|
|
|
25.0
|
%
|
|
|
|
25.0
|
%
|
|
|
|
25.0
|
%
|
|
|
|
24.9
|
%
|
|
|
|
24.8
|
%
|
|
|
|
24.8
|
%
|
|
|
|
24.8
|
%
|
|
|
|
24.8
|
%
|
Annual persistency
|
|
|
|
84.9
|
%
|
|
|
|
84.0
|
%
|
|
|
|
83.0
|
%
|
|
|
|
83.5
|
%
|
|
|
|
83.9
|
%
|
|
|
|
82.1
|
%
|
|
|
|
80.1
|
%
|
|
|
|
78.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans in default (count)
|
|
|
|
4,024
|
|
|
|
|
3,538
|
|
|
|
|
3,519
|
|
|
|
|
4,442
|
|
|
|
|
4,783
|
|
|
|
|
2,153
|
|
|
|
|
1,776
|
|
|
|
|
1,777
|
|
Percentage of loans in default
|
|
|
|
0.66
|
%
|
|
|
|
0.61
|
%
|
|
|
|
0.64
|
%
|
|
|
|
0.86
|
%
|
|
|
|
0.96
|
%
|
|
|
|
0.46
|
%
|
|
|
|
0.41
|
%
|
|
|
|
0.45
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Risk in Force
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GSE and other risk share (11) |
|
|
$
|
655,384
|
|
|
|
$
|
612,750
|
|
|
|
$
|
592,493
|
|
|
|
$
|
557,692
|
|
|
|
$
|
538,944
|
|
|
|
$
|
501,485
|
|
|
|
$
|
479,762
|
|
|
|
$
|
436,991
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit Facility
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings outstanding
|
|
|
$
|
225,000
|
|
|
|
$
|
225,000
|
|
|
|
$
|
225,000
|
|
|
|
$
|
265,000
|
|
|
|
$
|
250,000
|
|
|
|
$
|
175,000
|
|
|
|
$
|
175,000
|
|
|
|
$
|
125,000
|
|
Undrawn committed capacity
|
|
|
$
|
275,000
|
|
|
|
$
|
275,000
|
|
|
|
$
|
275,000
|
|
|
|
$
|
110,000
|
|
|
|
$
|
125,000
|
|
|
|
$
|
200,000
|
|
|
|
$
|
200,000
|
|
|
|
$
|
75,000
|
|
Weighted average interest rate
|
|
|
|
4.43
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(7) Average gross premium rate is calculated by dividing
annualized premiums earned for the U.S. mortgage insurance portfolio,
before reductions for premiums ceded under third-party reinsurance, by
average insurance in force for the period.
(8) Average net premium rate is calculated by dividing annualized
net premiums earned for the U.S. mortgage insurance portfolio by average
insurance in force for the period.
(9) Gross risk in force includes risk ceded under third-party
reinsurance.
(10) Weighted average coverage is calculated by dividing end of
period gross risk in force by end of period insurance in force.
(11) GSE and other risk share includes GSE risk share and other
reinsurance transactions. Essent Re provides insurance or reinsurance
relating to the risk in force on loans in reference pools acquired by
Freddie Mac and Fannie Mae, including in connection with Freddie Mac's
Agency Credit Insurance Structure ("ACIS") and Fannie Mae's Credit
Insurance Risk Transfer ("CIRT") programs.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exhibit D
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Essent Group Ltd. and Subsidiaries
|
Supplemental Information
|
New Insurance Written: Flow
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NIW by Credit Score
|
|
|
|
Three Months Ended
|
|
|
Year Ended
|
|
|
|
December 31, 2018
|
|
|
December 31, 2017
|
|
|
December 31, 2018
|
|
|
December 31, 2017
|
($ in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
>=760
|
|
|
$
|
4,737,774
|
|
|
|
41.5
|
%
|
|
|
$
|
4,551,775
|
|
|
|
40.5
|
%
|
|
|
$
|
19,903,369
|
|
|
|
41.9
|
%
|
|
|
$
|
18,455,482
|
|
|
|
42.1
|
%
|
740-759
|
|
|
|
1,959,523
|
|
|
|
17.2
|
|
|
|
|
1,793,713
|
|
|
|
16.0
|
|
|
|
|
8,076,182
|
|
|
|
17.0
|
|
|
|
|
6,851,174
|
|
|
|
15.6
|
|
720-739
|
|
|
|
1,665,931
|
|
|
|
14.6
|
|
|
|
|
1,644,956
|
|
|
|
14.6
|
|
|
|
|
6,875,823
|
|
|
|
14.5
|
|
|
|
|
6,223,802
|
|
|
|
14.2
|
|
700-719
|
|
|
|
1,349,689
|
|
|
|
11.8
|
|
|
|
|
1,378,170
|
|
|
|
12.3
|
|
|
|
|
5,715,076
|
|
|
|
12.0
|
|
|
|
|
5,228,590
|
|
|
|
11.9
|
|
680-699
|
|
|
|
875,125
|
|
|
|
7.7
|
|
|
|
|
1,024,440
|
|
|
|
9.1
|
|
|
|
|
3,722,490
|
|
|
|
7.8
|
|
|
|
|
3,843,164
|
|
|
|
8.8
|
|
<=679
|
|
|
|
820,500
|
|
|
|
7.2
|
|
|
|
|
841,801
|
|
|
|
7.5
|
|
|
|
|
3,215,585
|
|
|
|
6.8
|
|
|
|
|
3,256,110
|
|
|
|
7.4
|
|
Total
|
|
|
$
|
11,408,542
|
|
|
|
100.0
|
%
|
|
|
$
|
11,234,855
|
|
|
|
100.0
|
%
|
|
|
$
|
47,508,525
|
|
|
|
100.0
|
%
|
|
|
$
|
43,858,322
|
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average credit score
|
|
|
|
745
|
|
|
|
|
|
|
|
|
743
|
|
|
|
|
|
|
|
|
745
|
|
|
|
|
|
|
|
|
744
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NIW by LTV
|
|
|
|
Three Months Ended
|
|
|
Year Ended
|
|
|
|
December 31, 2018
|
|
|
December 31, 2017
|
|
|
December 31, 2018
|
|
|
December 31, 2017
|
($ in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
85.00% and below
|
|
|
$
|
1,384,296
|
|
|
|
12.1
|
%
|
|
|
$
|
1,532,008
|
|
|
|
13.6
|
%
|
|
|
$
|
5,731,894
|
|
|
|
12.1
|
%
|
|
|
$
|
5,839,270
|
|
|
|
13.3
|
%
|
85.01% to 90.00%
|
|
|
|
3,124,625
|
|
|
|
27.4
|
|
|
|
|
3,286,879
|
|
|
|
29.3
|
|
|
|
|
13,227,075
|
|
|
|
27.8
|
|
|
|
|
13,072,845
|
|
|
|
29.8
|
|
90.01% to 95.00%
|
|
|
|
4,955,729
|
|
|
|
43.4
|
|
|
|
|
4,845,713
|
|
|
|
43.1
|
|
|
|
|
20,579,615
|
|
|
|
43.3
|
|
|
|
|
19,301,353
|
|
|
|
44.0
|
|
95.01% and above
|
|
|
|
1,943,892
|
|
|
|
17.1
|
|
|
|
|
1,570,255
|
|
|
|
14.0
|
|
|
|
|
7,969,941
|
|
|
|
16.8
|
|
|
|
|
5,644,854
|
|
|
|
12.9
|
|
Total
|
|
|
$
|
11,408,542
|
|
|
|
100.0
|
%
|
|
|
$
|
11,234,855
|
|
|
|
100.0
|
%
|
|
|
$
|
47,508,525
|
|
|
|
100.0
|
%
|
|
|
$
|
43,858,322
|
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average LTV
|
|
|
|
92
|
%
|
|
|
|
|
|
|
|
92
|
%
|
|
|
|
|
|
|
|
92
|
%
|
|
|
|
|
|
|
|
92
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NIW by Product
|
|
|
|
Three Months Ended
|
|
|
Year Ended
|
|
|
|
December 31, 2018
|
|
|
December 31, 2017
|
|
|
December 31, 2018
|
|
|
December 31, 2017
|
Single Premium policies
|
|
|
|
|
|
|
|
13.5
|
%
|
|
|
|
|
|
|
|
19.0
|
%
|
|
|
|
|
|
|
|
15.3
|
%
|
|
|
|
|
|
|
|
16.3
|
%
|
Monthly Premium policies
|
|
|
|
|
|
|
|
86.5
|
|
|
|
|
|
|
|
|
81.0
|
|
|
|
|
|
|
|
|
84.7
|
|
|
|
|
|
|
|
|
83.7
|
|
|
|
|
|
|
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NIW by Purchase vs. Refinance
|
|
|
|
Three Months Ended
|
|
|
Year Ended
|
|
|
|
December 31, 2018
|
|
|
December 31, 2017
|
|
|
December 31, 2018
|
|
|
December 31, 2017
|
Purchase
|
|
|
|
|
|
|
|
93.3
|
%
|
|
|
|
|
|
|
|
84.4
|
%
|
|
|
|
|
|
|
|
91.8
|
%
|
|
|
|
|
|
|
|
85.2
|
%
|
Refinance
|
|
|
|
|
|
|
|
6.7
|
|
|
|
|
|
|
|
|
15.6
|
|
|
|
|
|
|
|
|
8.2
|
|
|
|
|
|
|
|
|
14.8
|
|
|
|
|
|
|
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exhibit E
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Essent Group Ltd. and Subsidiaries
|
Supplemental Information
|
Insurance in Force and Risk in Force
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio by Credit Score
|
IIF by FICO score
|
|
|
December 31, 2018
|
|
|
September 30, 2018
|
|
|
December 31, 2017
|
($ in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
>=760
|
|
|
$
|
59,249,659
|
|
|
|
43.0
|
%
|
|
|
$
|
56,686,270
|
|
|
|
43.2
|
%
|
|
|
$
|
48,668,705
|
|
|
|
44.1
|
%
|
740-759
|
|
|
|
22,843,145
|
|
|
|
16.6
|
|
|
|
|
21,661,445
|
|
|
|
16.5
|
|
|
|
|
17,939,206
|
|
|
|
16.2
|
|
720-739
|
|
|
|
19,898,885
|
|
|
|
14.5
|
|
|
|
|
18,909,281
|
|
|
|
14.4
|
|
|
|
|
15,761,787
|
|
|
|
14.3
|
|
700-719
|
|
|
|
15,714,206
|
|
|
|
11.4
|
|
|
|
|
14,928,024
|
|
|
|
11.4
|
|
|
|
|
12,167,285
|
|
|
|
11.0
|
|
680-699
|
|
|
|
11,299,829
|
|
|
|
8.2
|
|
|
|
|
10,828,068
|
|
|
|
8.2
|
|
|
|
|
9,156,196
|
|
|
|
8.3
|
|
<=679
|
|
|
|
8,715,062
|
|
|
|
6.3
|
|
|
|
|
8,236,869
|
|
|
|
6.3
|
|
|
|
|
6,768,771
|
|
|
|
6.1
|
|
Total
|
|
|
$
|
137,720,786
|
|
|
|
100.0
|
%
|
|
|
$
|
131,249,957
|
|
|
|
100.0
|
%
|
|
|
$
|
110,461,950
|
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average credit score
|
|
|
|
746
|
|
|
|
|
|
|
|
|
746
|
|
|
|
|
|
|
|
|
747
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross RIF by FICO score
|
|
|
December 31, 2018
|
|
|
September 30, 2018
|
|
|
December 31, 2017
|
($ in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
>=760
|
|
|
$
|
14,789,783
|
|
|
|
42.9
|
%
|
|
|
$
|
14,119,178
|
|
|
|
43.1
|
%
|
|
|
$
|
12,058,196
|
|
|
|
43.9
|
%
|
740-759
|
|
|
|
5,736,432
|
|
|
|
16.6
|
|
|
|
|
5,434,079
|
|
|
|
16.6
|
|
|
|
|
4,485,439
|
|
|
|
16.4
|
|
720-739
|
|
|
|
5,036,063
|
|
|
|
14.6
|
|
|
|
|
4,773,174
|
|
|
|
14.5
|
|
|
|
|
3,957,922
|
|
|
|
14.4
|
|
700-719
|
|
|
|
3,943,925
|
|
|
|
11.4
|
|
|
|
|
3,735,034
|
|
|
|
11.4
|
|
|
|
|
3,018,341
|
|
|
|
11.0
|
|
680-699
|
|
|
|
2,846,297
|
|
|
|
8.3
|
|
|
|
|
2,718,524
|
|
|
|
8.3
|
|
|
|
|
2,286,082
|
|
|
|
8.3
|
|
<=679
|
|
|
|
2,129,948
|
|
|
|
6.2
|
|
|
|
|
2,006,205
|
|
|
|
6.1
|
|
|
|
|
1,638,005
|
|
|
|
6.0
|
|
Total
|
|
|
$
|
34,482,448
|
|
|
|
100.0
|
%
|
|
|
$
|
32,786,194
|
|
|
|
100.0
|
%
|
|
|
$
|
27,443,985
|
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio by LTV
|
IIF by LTV
|
|
|
December 31, 2018
|
|
|
September 30, 2018
|
|
|
December 31, 2017
|
($ in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
85.00% and below
|
|
|
$
|
15,123,578
|
|
|
|
11.0
|
%
|
|
|
$
|
14,641,309
|
|
|
|
11.2
|
%
|
|
|
$
|
12,917,751
|
|
|
|
11.7
|
%
|
85.01% to 90.00%
|
|
|
|
41,020,839
|
|
|
|
29.8
|
|
|
|
|
39,598,332
|
|
|
|
30.2
|
|
|
|
|
34,794,108
|
|
|
|
31.5
|
|
90.01% to 95.00%
|
|
|
|
66,028,990
|
|
|
|
47.9
|
|
|
|
|
63,167,371
|
|
|
|
48.1
|
|
|
|
|
54,323,103
|
|
|
|
49.2
|
|
95.01% and above
|
|
|
|
15,547,379
|
|
|
|
11.3
|
|
|
|
|
13,842,945
|
|
|
|
10.5
|
|
|
|
|
8,426,988
|
|
|
|
7.6
|
|
Total
|
|
|
$
|
137,720,786
|
|
|
|
100.0
|
%
|
|
|
$
|
131,249,957
|
|
|
|
100.0
|
%
|
|
|
$
|
110,461,950
|
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average LTV
|
|
|
|
92
|
%
|
|
|
|
|
|
|
|
92
|
%
|
|
|
|
|
|
|
|
92
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross RIF by LTV
|
|
|
December 31, 2018
|
|
|
September 30, 2018
|
|
|
December 31, 2017
|
($ in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
85.00% and below
|
|
|
$
|
1,741,823
|
|
|
|
5.1
|
%
|
|
|
$
|
1,680,050
|
|
|
|
5.1
|
%
|
|
|
$
|
1,462,351
|
|
|
|
5.3
|
%
|
85.01% to 90.00%
|
|
|
|
9,819,171
|
|
|
|
28.5
|
|
|
|
|
9,458,067
|
|
|
|
28.8
|
|
|
|
|
8,262,322
|
|
|
|
30.1
|
|
90.01% to 95.00%
|
|
|
|
18,912,421
|
|
|
|
54.8
|
|
|
|
|
18,090,207
|
|
|
|
55.2
|
|
|
|
|
15,576,125
|
|
|
|
56.8
|
|
95.01% and above
|
|
|
|
4,009,033
|
|
|
|
11.6
|
|
|
|
|
3,557,870
|
|
|
|
10.9
|
|
|
|
|
2,143,187
|
|
|
|
7.8
|
|
Total
|
|
|
$
|
34,482,448
|
|
|
|
100.0
|
%
|
|
|
$
|
32,786,194
|
|
|
|
100.0
|
%
|
|
|
$
|
27,443,985
|
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio by Loan Amortization Period
|
IIF by Loan Amortization Period
|
|
|
December 31, 2018
|
|
|
September 30, 2018
|
|
|
December 31, 2017
|
($ in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FRM 30 years and higher
|
|
|
$
|
128,083,429
|
|
|
|
93.0
|
%
|
|
|
$
|
121,455,115
|
|
|
|
92.6
|
%
|
|
|
$
|
100,592,946
|
|
|
|
91.1
|
%
|
FRM 20-25 years
|
|
|
|
2,965,782
|
|
|
|
2.2
|
|
|
|
|
3,032,593
|
|
|
|
2.3
|
|
|
|
|
2,879,977
|
|
|
|
2.6
|
|
FRM 15 years
|
|
|
|
3,445,447
|
|
|
|
2.5
|
|
|
|
|
3,571,994
|
|
|
|
2.7
|
|
|
|
|
3,857,152
|
|
|
|
3.5
|
|
ARM 5 years and higher
|
|
|
|
3,226,128
|
|
|
|
2.3
|
|
|
|
|
3,190,255
|
|
|
|
2.4
|
|
|
|
|
3,131,875
|
|
|
|
2.8
|
|
Total
|
|
|
$
|
137,720,786
|
|
|
|
100.0
|
%
|
|
|
$
|
131,249,957
|
|
|
|
100.0
|
%
|
|
|
$
|
110,461,950
|
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exhibit F
|
|
|
|
|
|
|
|
|
|
|
Essent Group Ltd. and Subsidiaries
|
Supplemental Information
|
Other Risk in Force
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in thousands)
|
|
|
December 31, 2018
|
|
|
September 30, 2018
|
|
|
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
GSE and other risk share (1) |
|
|
$
|
655,384
|
|
|
|
$
|
612,750
|
|
|
|
$
|
538,944
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average credit score
|
|
|
|
748
|
|
|
|
|
749
|
|
|
|
|
749
|
|
Weighted average LTV
|
|
|
|
85
|
%
|
|
|
|
85
|
%
|
|
|
|
84
|
%
|
|
|
|
|
|
|
|
|
|
|
(1) GSE and other risk share includes GSE risk share and other
reinsurance transactions. Essent Reinsurance Ltd. ("Essent Re") provides
insurance or reinsurance relating to the risk in force on loans in
reference pools acquired by Freddie Mac and Fannie Mae, including in
connection with Freddie Mac's Agency Credit Insurance Structure ("ACIS")
and Fannie Mae's Credit Insurance Risk Transfer ("CIRT") programs.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exhibit G
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Essent Group Ltd. and Subsidiaries
|
Supplemental Information
|
Portfolio Vintage Data
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Insurance in Force
|
|
|
|
|
|
|
Origination Year
|
|
|
Original
Insurance
Written
($ in thousands)
|
|
|
Remaining
Insurance
in Force
($ in thousands)
|
|
|
% Remaining of
Original
Insurance
|
|
|
Number of
Policies in
Force
|
|
|
% Purchase
|
|
|
>90% LTV
|
|
|
>95% LTV
|
|
|
FICO < 700
|
|
|
FICO >= 760
|
|
|
% FRM
|
|
|
Incurred
Loss Ratio
(Inception
to Date) (1)
|
|
|
Number of
Loans in
Default
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2010
|
|
|
$
|
245,898
|
|
|
$
|
7,725
|
|
|
3.1
|
%
|
|
|
54
|
|
|
74.2
|
%
|
|
|
67.2
|
%
|
|
|
0.0
|
%
|
|
|
1.2
|
%
|
|
|
62.7
|
%
|
|
|
100.0
|
%
|
|
|
2.6
|
%
|
|
|
—
|
2011
|
|
|
|
3,229,720
|
|
|
|
228,682
|
|
|
7.1
|
|
|
|
1,354
|
|
|
72.1
|
|
|
|
58.5
|
|
|
|
0.3
|
|
|
|
6.2
|
|
|
|
52.3
|
|
|
|
97.9
|
|
|
|
3.7
|
|
|
|
32
|
2012
|
|
|
|
11,241,161
|
|
|
|
1,857,304
|
|
|
16.5
|
|
|
|
9,894
|
|
|
75.9
|
|
|
|
62.4
|
|
|
|
0.6
|
|
|
|
5.6
|
|
|
|
56.3
|
|
|
|
98.9
|
|
|
|
2.3
|
|
|
|
106
|
2013
|
|
|
|
21,152,638
|
|
|
|
5,005,615
|
|
|
23.7
|
|
|
|
26,241
|
|
|
79.9
|
|
|
|
62.1
|
|
|
|
2.1
|
|
|
|
7.8
|
|
|
|
51.4
|
|
|
|
98.5
|
|
|
|
2.3
|
|
|
|
281
|
2014
|
|
|
|
24,799,434
|
|
|
|
8,257,561
|
|
|
33.3
|
|
|
|
44,041
|
|
|
88.7
|
|
|
|
64.1
|
|
|
|
4.5
|
|
|
|
15.6
|
|
|
|
41.4
|
|
|
|
96.5
|
|
|
|
3.2
|
|
|
|
585
|
2015
|
|
|
|
26,193,656
|
|
|
|
13,410,795
|
|
|
51.2
|
|
|
|
63,698
|
|
|
84.2
|
|
|
|
58.0
|
|
|
|
2.6
|
|
|
|
14.7
|
|
|
|
43.7
|
|
|
|
97.7
|
|
|
|
3.0
|
|
|
|
664
|
2016
|
|
|
|
34,949,319
|
|
|
|
25,252,309
|
|
|
72.3
|
|
|
|
110,903
|
|
|
82.0
|
|
|
|
56.7
|
|
|
|
6.6
|
|
|
|
13.6
|
|
|
|
45.4
|
|
|
|
98.4
|
|
|
|
3.4
|
|
|
|
900
|
2017
|
|
|
|
43,858,322
|
|
|
|
37,850,574
|
|
|
86.3
|
|
|
|
166,006
|
|
|
86.2
|
|
|
|
58.4
|
|
|
|
13.7
|
|
|
|
16.1
|
|
|
|
41.6
|
|
|
|
97.0
|
|
|
|
4.6
|
|
|
|
1,160
|
2018
|
|
|
|
47,508,525
|
|
|
|
45,850,221
|
|
|
96.5
|
|
|
|
185,944
|
|
|
91.8
|
|
|
|
60.4
|
|
|
|
17.1
|
|
|
|
14.7
|
|
|
|
41.4
|
|
|
|
97.8
|
|
|
|
3.3
|
|
|
|
296
|
Total
|
|
|
$
|
213,178,673
|
|
|
$
|
137,720,786
|
|
|
64.6
|
|
|
|
608,135
|
|
|
86.9
|
|
|
|
59.2
|
|
|
|
11.3
|
|
|
|
14.5
|
|
|
|
43.0
|
|
|
|
97.7
|
|
|
|
3.1
|
|
|
|
4,024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Incurred loss ratio is calculated by dividing the sum of
case reserves and cumulative amount paid for claims by cumulative
net premiums earned.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exhibit H
|
|
|
|
|
|
|
|
|
|
|
Essent Group Ltd. and Subsidiaries
|
Supplemental Information
|
Portfolio Geographic Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IIF by State
|
|
|
|
December 31, 2018
|
|
|
September 30, 2018
|
|
|
December 31, 2017
|
CA
|
|
|
9.1
|
%
|
|
|
9.1
|
%
|
|
|
9.4
|
%
|
TX
|
|
|
7.9
|
|
|
|
7.9
|
|
|
|
8.0
|
|
FL
|
|
|
7.4
|
|
|
|
7.3
|
|
|
|
7.0
|
|
WA
|
|
|
4.7
|
|
|
|
4.8
|
|
|
|
4.8
|
|
IL
|
|
|
3.8
|
|
|
|
3.9
|
|
|
|
4.0
|
|
NJ
|
|
|
3.8
|
|
|
|
3.8
|
|
|
|
3.7
|
|
NC
|
|
|
3.5
|
|
|
|
3.5
|
|
|
|
3.5
|
|
GA
|
|
|
3.4
|
|
|
|
3.4
|
|
|
|
3.4
|
|
CO
|
|
|
3.4
|
|
|
|
3.3
|
|
|
|
3.1
|
|
OH
|
|
|
3.3
|
|
|
|
3.3
|
|
|
|
3.2
|
|
All Others
|
|
|
49.7
|
|
|
|
49.7
|
|
|
|
49.9
|
|
Total
|
|
|
100.0
|
%
|
|
|
100.0
|
%
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross RIF by State
|
|
|
|
December 31, 2018
|
|
|
September 30, 2018
|
|
|
December 31, 2017
|
CA
|
|
|
8.9
|
%
|
|
|
8.9
|
%
|
|
|
9.1
|
%
|
TX
|
|
|
8.1
|
|
|
|
8.1
|
|
|
|
8.3
|
|
FL
|
|
|
7.5
|
|
|
|
7.4
|
|
|
|
7.1
|
|
WA
|
|
|
4.7
|
|
|
|
4.8
|
|
|
|
4.9
|
|
IL
|
|
|
3.8
|
|
|
|
3.8
|
|
|
|
3.9
|
|
NJ
|
|
|
3.7
|
|
|
|
3.7
|
|
|
|
3.6
|
|
NC
|
|
|
3.5
|
|
|
|
3.5
|
|
|
|
3.5
|
|
GA
|
|
|
3.5
|
|
|
|
3.5
|
|
|
|
3.5
|
|
OH
|
|
|
3.3
|
|
|
|
3.3
|
|
|
|
3.2
|
|
CO
|
|
|
3.3
|
|
|
|
3.3
|
|
|
|
3.0
|
|
All Others
|
|
|
49.7
|
|
|
|
49.7
|
|
|
|
49.9
|
|
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
|
|
|
Year Ended
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
Beginning default inventory
|
|
|
|
3,538
|
|
|
|
|
2,153
|
|
|
|
|
4,783
|
|
|
|
|
1,757
|
|
Plus: new defaults
|
|
|
|
2,747
|
|
|
|
|
4,332
|
|
|
|
|
8,727
|
|
|
|
|
8,229
|
|
Less: cures
|
|
|
|
(2,183
|
)
|
|
|
|
(1,648
|
)
|
|
|
|
(9,226
|
)
|
|
|
|
(4,970
|
)
|
Less: claims paid
|
|
|
|
(75
|
)
|
|
|
|
(53
|
)
|
|
|
|
(254
|
)
|
|
|
|
(229
|
)
|
Less: rescissions and denials, net
|
|
|
|
(3
|
)
|
|
|
|
(1
|
)
|
|
|
|
(6
|
)
|
|
|
|
(4
|
)
|
Ending default inventory
|
|
|
|
4,024
|
|
|
|
|
4,783
|
|
|
|
|
4,024
|
|
|
|
|
4,783
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rollforward of Reserve for Losses and LAE
|
|
|
|
Three Months Ended
|
|
|
Year Ended
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
December 31,
|
|
|
December 31,
|
($ in thousands)
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
Reserve for losses and LAE at beginning of period
|
|
|
$
|
53,355
|
|
|
|
$
|
31,579
|
|
|
|
$
|
46,850
|
|
|
|
$
|
28,142
|
|
Add provision for losses and LAE occurring in:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current year
|
|
|
|
11,239
|
|
|
|
|
18,912
|
|
|
|
|
36,438
|
|
|
|
|
38,178
|
|
Prior years
|
|
|
|
(12,238
|
)
|
|
|
|
(1,456
|
)
|
|
|
|
(24,863
|
)
|
|
|
|
(10,946
|
)
|
Incurred losses and LAE during the period
|
|
|
|
(999
|
)
|
|
|
|
17,456
|
|
|
|
|
11,575
|
|
|
|
|
27,232
|
|
Deduct payments for losses and LAE occurring in:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current year
|
|
|
|
690
|
|
|
|
|
390
|
|
|
|
|
1,310
|
|
|
|
|
633
|
|
Prior years
|
|
|
|
2,202
|
|
|
|
|
1,795
|
|
|
|
|
7,651
|
|
|
|
|
7,891
|
|
Loss and LAE payments during the period
|
|
|
|
2,892
|
|
|
|
|
2,185
|
|
|
|
|
8,961
|
|
|
|
|
8,524
|
|
Reserve for losses and LAE at end of period
|
|
|
$
|
49,464
|
|
|
|
$
|
46,850
|
|
|
|
$
|
49,464
|
|
|
|
$
|
46,850
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Claims
|
|
|
|
Three Months Ended
|
|
|
Year Ended
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
Number of claims paid
|
|
|
|
75
|
|
|
|
|
53
|
|
|
|
|
254
|
|
|
|
|
229
|
|
Total amount paid for claims (in thousands)
|
|
|
$
|
2,711
|
|
|
|
$
|
2,125
|
|
|
|
$
|
8,559
|
|
|
|
$
|
8,280
|
|
Average amount paid per claim (in thousands)
|
|
|
$
|
36
|
|
|
|
$
|
40
|
|
|
|
$
|
34
|
|
|
|
$
|
36
|
|
Severity
|
|
|
|
82
|
%
|
|
|
|
87
|
%
|
|
|
|
73
|
%
|
|
|
|
83
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exhibit I, continued
|
Essent Group Ltd. and Subsidiaries
|
Supplemental Information
|
Defaults, Reserve for Losses and LAE, and Claims
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2018
|
|
|
|
Number of
Policies in
Default
|
|
|
Percentage of
Policies in
Default
|
|
|
Amount of
Reserves
|
|
|
Percentage of
Reserves
|
|
|
Defaulted RIF
|
|
|
Reserves as a
Percentage of
Defaulted RIF
|
($ in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Missed Payments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three payments or less
|
|
|
2,254
|
|
|
|
56
|
%
|
|
|
$
|
12,005
|
|
|
27
|
%
|
|
|
$
|
119,666
|
|
|
10
|
%
|
Four to eleven payments
|
|
|
1,350
|
|
|
|
33
|
|
|
|
|
20,031
|
|
|
44
|
|
|
|
|
72,222
|
|
|
28
|
|
Twelve or more payments
|
|
|
357
|
|
|
|
9
|
|
|
|
|
10,523
|
|
|
23
|
|
|
|
|
20,419
|
|
|
52
|
|
Pending claims
|
|
|
63
|
|
|
|
2
|
|
|
|
|
2,749
|
|
|
6
|
|
|
|
|
3,182
|
|
|
86
|
|
Total case reserves
|
|
|
4,024
|
|
|
|
100
|
%
|
|
|
|
45,308
|
|
|
100
|
%
|
|
|
$
|
215,489
|
|
|
21
|
|
IBNR
|
|
|
|
|
|
|
|
|
|
|
|
3,398
|
|
|
|
|
|
|
|
|
|
|
|
|
LAE
|
|
|
|
|
|
|
|
|
|
|
|
758
|
|
|
|
|
|
|
|
|
|
|
|
|
Total reserves for losses and LAE
|
|
|
|
|
|
|
|
|
|
|
$
|
49,464
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average reserve per default:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Case
|
|
|
|
|
|
|
|
|
|
|
$
|
11.3
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
$
|
12.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Default Rate
|
|
|
0.66
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2017
|
|
|
|
Number of
Policies in
Default
|
|
|
Percentage of
Policies in
Default
|
|
|
Amount of
Reserves
|
|
|
Percentage of
Reserves
|
|
|
Defaulted RIF
|
|
|
Reserves as a
Percentage of
Defaulted RIF
|
($ in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Missed Payments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three payments or less
|
|
|
3,243
|
|
|
|
68
|
%
|
|
|
$
|
15,925
|
|
|
37
|
%
|
|
|
$
|
187,163
|
|
|
9
|
%
|
Four to eleven payments
|
|
|
1,284
|
|
|
|
27
|
|
|
|
|
18,087
|
|
|
42
|
|
|
|
|
73,547
|
|
|
25
|
|
Twelve or more payments
|
|
|
211
|
|
|
|
4
|
|
|
|
|
6,781
|
|
|
16
|
|
|
|
|
11,139
|
|
|
61
|
|
Pending claims
|
|
|
45
|
|
|
|
1
|
|
|
|
|
2,075
|
|
|
5
|
|
|
|
|
2,355
|
|
|
88
|
|
Total case reserves
|
|
|
4,783
|
|
|
|
100
|
%
|
|
|
|
42,868
|
|
|
100
|
%
|
|
|
$
|
274,204
|
|
|
16
|
|
IBNR
|
|
|
|
|
|
|
|
|
|
|
|
3,215
|
|
|
|
|
|
|
|
|
|
|
|
|
LAE
|
|
|
|
|
|
|
|
|
|
|
|
767
|
|
|
|
|
|
|
|
|
|
|
|
|
Total reserves for losses and LAE
|
|
|
|
|
|
|
|
|
|
|
$
|
46,850
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average reserve per default:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Case
|
|
|
|
|
|
|
|
|
|
|
$
|
9.0
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
$
|
9.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Default Rate
|
|
|
0.96
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exhibit J
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Essent Group Ltd. and Subsidiaries
|
Supplemental Information
|
Investments Available for Sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments Available for Sale by Asset Class
|
Asset Class
|
|
|
December 31, 2018
|
|
|
December 31, 2017
|
($ in thousands)
|
|
|
Fair Value
|
|
|
Percent
|
|
|
Fair Value
|
|
|
Percent
|
U.S. Treasury securities
|
|
|
$
|
289,892
|
|
|
|
10.5
|
%
|
|
|
$
|
227,805
|
|
|
9.9
|
%
|
U.S. agency securities
|
|
|
|
32,997
|
|
|
|
1.2
|
|
|
|
|
33,114
|
|
|
1.4
|
|
U.S. agency mortgage-backed securities
|
|
|
|
637,178
|
|
|
|
23.1
|
|
|
|
|
456,037
|
|
|
19.8
|
|
Municipal debt securities
|
|
|
|
483,879
|
|
|
|
17.5
|
|
|
|
|
465,255
|
|
|
20.2
|
|
Non-U.S. government securities
|
|
|
|
45,001
|
|
|
|
1.6
|
|
|
|
|
—
|
|
|
—
|
|
Corporate debt securities
|
|
|
|
725,201
|
|
|
|
26.3
|
|
|
|
|
611,728
|
|
|
26.5
|
|
Residential and commercial mortgage securities
|
|
|
|
121,838
|
|
|
|
4.4
|
|
|
|
|
79,407
|
|
|
3.5
|
|
Asset-backed securities
|
|
|
|
284,997
|
|
|
|
10.3
|
|
|
|
|
167,922
|
|
|
7.3
|
|
Money market funds
|
|
|
|
139,083
|
|
|
|
5.1
|
|
|
|
|
263,797
|
|
|
11.4
|
|
Total investments available for sale
|
|
|
$
|
2,760,066
|
|
|
|
100.0
|
%
|
|
|
$
|
2,305,065
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments Available for Sale by Credit Rating
|
Rating (1) |
|
|
December 31, 2018
|
|
|
December 31, 2017
|
($ in thousands)
|
|
|
Fair Value
|
|
|
Percent
|
|
|
Fair Value
|
|
|
Percent
|
Aaa
|
|
|
$
|
1,362,781
|
|
|
|
49.4
|
%
|
|
|
$
|
1,160,200
|
|
|
50.3
|
%
|
Aa1
|
|
|
|
124,435
|
|
|
|
4.5
|
|
|
|
|
115,237
|
|
|
5.0
|
|
Aa2
|
|
|
|
196,218
|
|
|
|
7.1
|
|
|
|
|
123,551
|
|
|
5.4
|
|
Aa3
|
|
|
|
143,315
|
|
|
|
5.2
|
|
|
|
|
127,785
|
|
|
5.6
|
|
A1
|
|
|
|
222,073
|
|
|
|
8.0
|
|
|
|
|
205,369
|
|
|
8.9
|
|
A2
|
|
|
|
199,238
|
|
|
|
7.2
|
|
|
|
|
157,651
|
|
|
6.8
|
|
A3
|
|
|
|
146,300
|
|
|
|
5.3
|
|
|
|
|
148,246
|
|
|
6.4
|
|
Baa1
|
|
|
|
162,695
|
|
|
|
5.9
|
|
|
|
|
115,178
|
|
|
5.0
|
|
Baa2
|
|
|
|
140,168
|
|
|
|
5.1
|
|
|
|
|
87,869
|
|
|
3.8
|
|
Baa3
|
|
|
|
26,805
|
|
|
|
1.0
|
|
|
|
|
43,024
|
|
|
1.9
|
|
Below Baa3
|
|
|
|
36,038
|
|
|
|
1.3
|
|
|
|
|
20,955
|
|
|
0.9
|
|
Total investments available for sale
|
|
|
$
|
2,760,066
|
|
|
|
100.0
|
%
|
|
|
$
|
2,305,065
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Based on ratings issued by Moody's, if available. S&P or
Fitch rating utilized if Moody's not available.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments Available for Sale by Duration and Book Yield
|
Effective Duration
|
|
|
December 31, 2018
|
|
|
December 31, 2017
|
($ in thousands)
|
|
|
Fair Value
|
|
|
Percent
|
|
|
Fair Value
|
|
|
Percent
|
< 1 Year
|
|
|
$
|
529,545
|
|
|
|
19.2
|
%
|
|
|
$
|
628,958
|
|
|
27.3
|
%
|
1 to < 2 Years
|
|
|
|
285,060
|
|
|
|
10.3
|
|
|
|
|
164,856
|
|
|
7.2
|
|
2 to < 3 Years
|
|
|
|
251,763
|
|
|
|
9.1
|
|
|
|
|
280,177
|
|
|
12.2
|
|
3 to < 4 Years
|
|
|
|
278,804
|
|
|
|
10.1
|
|
|
|
|
263,799
|
|
|
11.4
|
|
4 to < 5 Years
|
|
|
|
429,005
|
|
|
|
15.6
|
|
|
|
|
263,273
|
|
|
11.4
|
|
5 or more Years
|
|
|
|
985,889
|
|
|
|
35.7
|
|
|
|
|
704,002
|
|
|
30.5
|
|
Total investments available for sale
|
|
|
$
|
2,760,066
|
|
|
|
100.0
|
%
|
|
|
$
|
2,305,065
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax investment income yield:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31, 2018
|
|
|
|
2.77
|
%
|
|
|
|
|
|
|
|
|
|
Year ended December 31, 2018
|
|
|
|
2.56
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash and investments at holding company, Essent Group Ltd.:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2018
|
|
|
$
|
78,405
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2017
|
|
|
$
|
104,167
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Exhibit K
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Essent Group Ltd. and Subsidiaries
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Supplemental Information
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Insurance Company Capital
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December 31, 2018
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December 31, 2017
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($ in thousands)
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U.S. Mortgage Insurance Subsidiaries:
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Combined statutory capital (1) |
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$
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1,886,929
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$
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1,528,869
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Combined net risk in force (2) |
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$
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26,233,783
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$
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21,637,409
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Risk-to-capital ratios: (3) |
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Essent Guaranty, Inc.
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14.4:1
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14.7:1
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Essent Guaranty of PA, Inc.
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4.2:1
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5.4:1
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Combined (4) |
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13.9:1
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14.2:1
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Essent Reinsurance Ltd.:
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Stockholder's equity (GAAP basis)
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$
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798,612
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$
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662,819
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Net risk in force (2) |
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$
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8,265,763
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$
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6,299,437
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(1) 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 and the National Association of
Insurance Commissioners Accounting Practices and Procedures Manual.
(2) 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.
(3) The risk-to-capital ratio is calculated as the ratio of net
risk in force to statutory capital.
(4) 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.
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Exhibit L
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Essent Group Ltd. and Subsidiaries
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Supplemental Information
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Reconciliation of Non-GAAP Financial Measure - Adjusted Book
Value per Share
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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.
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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 share 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, 2018 and December 31, 2017, the
Company does not have any options, warrants and similar
instruments outstanding.
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The following table sets forth the reconciliation of Adjusted Book
Value to the most comparable GAAP amount as of December 31, 2018
and December 31, 2017 in accordance with Regulation G:
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(In thousands, except per share amounts)
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|
December 31, 2018
|
|
|
December 31, 2017
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Numerator:
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Total Stockholders' Equity (Book Value)
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$
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2,365,717
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$
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1,940,436
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Subtract: Accumulated Other Comprehensive Income (Loss)
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(28,993
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)
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(3,252
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)
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Adjusted Book Value
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$
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2,394,710
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$
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1,943,688
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Denominator:
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Total Common Shares Outstanding
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98,139
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98,434
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Add: Restricted Share Units Outstanding
|
|
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449
|
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536
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Total Common Shares and Share Units Outstanding
|
|
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98,588
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|
|
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98,970
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Adjusted Book Value per Share
|
|
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$
|
24.29
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|
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$
|
19.64
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View source version on businesswire.com:
https://www.businesswire.com/news/home/20190208005049/en/
Media Contact
610-230-0556
[email protected]
Investor Relations Contact
Christopher G. Curran
Senior
Vice President – Investor Relations
855-809-ESNT
[email protected]
Source: Essent Group Ltd.