Essent Group Ltd. Reports First Quarter 2017 Results

May 5, 2017

HAMILTON, Bermuda--(BUSINESS WIRE)-- Essent Group Ltd. (NYSE: ESNT) today reported net income for the quarter ended March 31, 2017 of $66.6 million or $0.72 per diluted share, compared to $48.0 million or $0.52 per diluted share for the quarter ended March 31, 2016. As of March 31, 2017, Essent had insurance in force of $88.0 billion and consolidated stockholders’ equity of $1.4 billion.

“We had another strong quarter of operating performance and producing high quality and growing earnings for our shareholders,” said Mark Casale, Chairman and Chief Executive Officer. “During the quarter, we grew insurance in force 30% compared to March 31^st a year ago, while also generating a 19% annualized return on average equity in the first quarter of 2017.”

Financial Highlights:

Insurance in force as of March 31, 2017 was $88.0 billion, compared to $83.3 billion as of December 31, 2016 and $67.7 billion as of March 31, 2016.
Flow new insurance written for the first quarter was $8.0 billion, compared to $10.5 billion in the fourth quarter of 2016 and $5.4 billion in the first quarter of 2016.
Net premiums earned for the first quarter were $117.7 million, compared to $116.8 million in the fourth quarter of 2016 and $94.4 million in the first quarter of 2016.
The expense ratio for the first quarter was 30.9%, compared to 29.8% in the fourth quarter of 2016 and 33.2% in the first quarter of 2016.
The provision for losses and LAE for the first quarter was $3.7 million, compared to $3.9 million in the fourth quarter of 2016 and $3.7 million in the first quarter of 2016.
The percentage of loans in default as of March 31, 2017 was 0.45%, compared to 0.47% as of December 31, 2016 and 0.34% as of March 31, 2016.
The combined ratio for the first quarter was 34.0%, compared to 33.1% in the fourth quarter of 2016 and 37.2% in the first quarter of 2016.
The consolidated balance of cash and investments at March 31, 2017 was $1.7 billion, including cash and investment balances at Essent Group Ltd. of $41.1 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 14.6:1 as of March 31, 2017.
Essent Reinsurance Ltd. reinsured a total of $62.8 million of risk in GSE risk share transactions in the first quarter of 2017.
Net income for the first quarter includes an income tax benefit of $3.0 million, or $0.03 per diluted share, related to the vesting of common shares and common share units.

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 4824281 or by referencing Essent.

A replay of the webcast will be available on the Essent website approximately two hours after the live broadcast ends for a period of one year. A replay of the conference call will be available approximately two hours after the call ends for a period of two weeks, using the following dial-in numbers and passcode: 800-585-8367 inside the U.S., or 416-621-4642 for international callers, passcode 4824281.

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, 2016 filed with the Securities and Exchange Commission on February 16, 2017. 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.



Essent Group Ltd. and Subsidiaries
Financial Results and Supplemental Information (Unaudited)
Quarter Ended March 31, 2017


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		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 March 31,
(In thousands, except per share amounts)	2017			2016
Revenues:
Net premiums written	$	119,297		$	100,466
Increase in unearned premiums	(1,646		)	(6,063		)
Net premiums earned	117,651			94,403
Net investment income	8,435			6,183
Realized investment gains, net	655			471
Other income	851			1,409
Total revenues	127,592			102,466

Losses and expenses:
Provision for losses and LAE	3,693			3,731
Other underwriting and operating expenses	36,332			31,388
Interest expense	716			—
Total losses and expenses	40,741			35,119

Income before income taxes	86,851			67,347
Income tax expense	20,253			19,396
Net income	$	66,598		$	47,951


Earnings per share:
Basic	$	0.73		$	0.53
Diluted	0.72			0.52

Weighted average shares outstanding:
Basic	91,258			90,785
Diluted	93,023			91,859

Net income	$	66,598		$	47,951

Other comprehensive income (loss):
Change in unrealized appreciation of investments	4,850			13,359
Total other comprehensive income	4,850			13,359
Comprehensive income	$	71,448		$	61,310


Loss ratio	3.1		%	4.0		%
Expense ratio	30.9		%	33.2		%
Combined ratio	34.0		%	37.2		%


				Exhibit B

Essent Group Ltd. and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)


	March 31,			December 31,
(In thousands, except per share amounts)	2017			2016
Assets
Investments available for sale, at fair value
Fixed maturities	$	1,612,153		$	1,482,754
Short-term investments	112,380			132,348
Total investments	1,724,533			1,615,102
Cash	19,713			27,531
Accrued investment income	10,191			9,488
Accounts receivable	23,479			21,632
Deferred policy acquisition costs	13,493			13,400
Property and equipment	8,205			8,119
Prepaid federal income tax	180,657			181,272
Other assets	7,429			6,454

Total assets	$	1,987,700		$	1,882,998

Liabilities and Stockholders' Equity
Liabilities
Reserve for losses and LAE	$	29,468		$	28,142
Unearned premium reserve	221,262			219,616
Net deferred tax liability	162,651			142,587
Revolving credit facility borrowings	125,000			100,000
Securities purchased payable	17,315			14,999
Other accrued liabilities	19,252			33,881
Total liabilities	574,948			539,225

Commitments and contingencies

Stockholders' Equity
Common shares	1,401			1,397
Additional paid-in capital	915,895			918,296
Accumulated other comprehensive loss	(7,405		)	(12,255		)
Retained earnings	502,861			436,335
Total stockholders' equity	1,412,752			1,343,773

Total liabilities and stockholders' equity	$	1,987,700		$	1,882,998

Return on average equity (1)	19.3		%	18.1		%

(1) The 2017 return on average equity is calculated by dividing annualized year-to-date 2017 net income by average equity. The 2016 return on average equity is calculated by dividing full year 2016 net income by average equity.


													Exhibit C
Essent Group Ltd. and Subsidiaries
Supplemental Information
Historical Quarterly Data


	2017			2016
Selected Income Statement Data	March 31			December 31			September 30			June 30			March 31
(In thousands, except per share amounts)
Revenues:
Net premiums written	$	119,297		$	116,412		$	115,887		$	108,513		$	100,466

Net premiums earned	117,651			116,792			110,801			100,711			94,403
Other revenues (1)	9,941			9,581			10,453			7,454			8,063
Total revenues	127,592			126,373			121,254			108,165			102,466

Losses and expenses:
Provision for losses and LAE	3,693			3,865			4,965			2,964			3,731
Other underwriting and operating expenses	36,332			34,836			32,792			31,409			31,388
Interest expense	716			370			56			—			—
Total losses and expenses	40,741			39,071			37,813			34,373			35,119

Income before income taxes	86,851			87,302			83,441			73,792			67,347
Income tax expense (2)	20,253			24,616			23,730			21,534			19,396
Net income	$	66,598		$	62,686		$	59,711		$	52,258		$	47,951

Earnings per share:
Basic	$	0.73		$	0.69		$	0.66		$	0.57		$	0.53
Diluted	0.72			0.68			0.65			0.57			0.52

Weighted average shares outstanding:
Basic	91,258			90,991			90,961			90,912			90,785
Diluted	93,023			92,577			92,399			92,138			91,859

Other Data:
Loss ratio (3)	3.1		%	3.3		%	4.5		%	2.9		%	4.0		%
Expense ratio (4)	30.9		%	29.8		%	29.6		%	31.2		%	33.2		%
Combined ratio	34.0		%	33.1		%	34.1		%	34.1		%	37.2		%

Return on average equity (annualized)	19.3		%	18.9		%	18.7		%	17.2		%	16.7		%

(1) In 2016, other revenues included the change in the fair value of insurance and certain reinsurance policies issued by Essent Reinsurance Ltd. ("Essent Re") in connection with Freddie Mac's Agency Credit Insurance Structure ("ACIS") program that were accounted for as derivatives under GAAP. In the three months ended September 30, 2016, these contracts were amended and are now accounted for as insurance contracts. The change in fair values of these policies was $2,012, ($755) and $677 in the three months ended September 30, 2016, June 30, 2016 and March 31, 2016, respectively.

(2) Income tax expense for the quarter ended March 31, 2017 was calculated using an annualized effective tax rate of 26.8% and was reduced by $3,023 of excess tax benefits associated with the vesting of common shares and common share units during the quarter. Prior to January 1, 2017, excess tax benefits were recognized in additional paid-in-capital.

(3) Loss ratio is calculated by dividing the provision for losses and LAE by net premiums earned.

(4) 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


	2017			2016
Other Data, continued:	March 31			December 31			September 30			June 30			March 31
($ in thousands)

U.S. Mortgage Insurance Portfolio
Flow:
New insurance written	$	8,034,153		$	10,475,258		$	10,299,161		$	8,715,171		$	5,366,675
New risk written	1,929,832			2,498,831			2,536,734			2,167,333			1,340,588

Bulk:
New insurance written	$	—		$	—		$	—		$	—		$	93,054
New risk written	—			—			—			—			8,480

Total:
Average premium rate (5)	0.53		%	0.56		%	0.58		%	0.57		%	0.56		%
New insurance written	$	8,034,153		$	10,475,258		$	10,299,161		$	8,715,171		$	5,459,729
New risk written	$	1,929,832		$	2,498,831		$	2,536,734		$	2,167,333		$	1,349,068
Insurance in force (end of period)	$	87,993,227		$	83,265,522		$	77,614,373		$	72,267,099		$	67,716,741
Risk in force (end of period)	$	21,801,667		$	20,627,317		$	19,289,387		$	17,937,364		$	16,745,819
Policies in force	397,650			375,898			350,600			328,441			308,779
Weighted average coverage (6)	24.8		%	24.8		%	24.9		%	24.8		%	24.7		%
Annual persistency	78.2		%	77.7		%	79.4		%	81.0		%	81.0		%

Loans in default (count)	1,777			1,757			1,453			1,174			1,060
Percentage of loans in default	0.45		%	0.47		%	0.41		%	0.36		%	0.34		%

Other Risk in Force
GSE Risk Share (7)	$	436,991		$	384,103		$	302,211		$	305,357		$	188,766

Revolving Credit Facility
Borrowings outstanding	$	125,000		$	100,000		$	50,000		$	—		N/A
Undrawn committed capacity	$	75,000		$	100,000		$	150,000		$	200,000		N/A
Weighted average interest rate	2.96		%

(5) Average premium rate is calculated by dividing net premiums earned by average insurance in force for the period.

(6) Weighted average coverage is calculated by dividing end of period risk in force by insurance in force.

(7) 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
	March 31, 2017					December 31, 2016					March 31, 2016
($ in thousands)
>=760	$	3,399,754		42.3	%	$	4,642,666		44.3	%	$	2,287,903		42.6	%
740-759	1,243,278			15.5		1,636,508			15.6		839,808			15.6
720-739	1,149,215			14.3		1,456,147			13.9		779,556			14.5
700-719	958,015			11.9		1,212,922			11.6		582,731			10.9
680-699	694,814			8.7		879,907			8.4		486,852			9.1
<=679	589,077			7.3		647,108			6.2		389,825			7.3
Total	$	8,034,153		100.0	%	$	10,475,258		100.0	%	$	5,366,675		100.0	%

Weighted average credit score	745					747					745



NIW by LTV
	Three Months Ended
	March 31, 2017					December 31, 2016					March 31, 2016
($ in thousands)
85.00% and below	$	1,218,800		15.2	%	$	1,808,741		17.3	%	$	663,998		12.4	%
85.01% to 90.00%	2,498,907			31.1		3,242,535			30.9		1,803,776			33.6
90.01% to 95.00%	3,511,603			43.7		4,525,547			43.2		2,730,564			50.9
95.01% and above	804,843			10.0		898,435			8.6		168,337			3.1
Total	$	8,034,153		100.0	%	$	10,475,258		100.0	%	$	5,366,675		100.0	%

Weighted average LTV	92		%			91		%			92		%



NIW by Product
	Three Months Ended
	March 31, 2017					December 31, 2016					March 31, 2016
Single Premium policies				14.2	%				12.7	%				24.6	%
Monthly Premium policies				85.8					87.3					75.4
				100.0	%				100.0	%				100.0	%



NIW by Purchase vs. Refinance
	Three Months Ended
	March 31, 2017					December 31, 2016					March 31, 2016
Purchase				78.9	%				73.9	%				81.6	%
Refinance				21.1					26.1					18.4
				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
	March 31, 2017				December 31, 2016				March 31, 2016
($ in thousands)
>=760	$	—	0.0	%	$	—	0.0	%	$	45,625		49.0	%
740-759	—		—		—		—		18,154			19.5
720-739	—		—		—		—		11,475			12.3
700-719	—		—		—		—		8,220			8.8
680-699	—		—		—		—		6,453			7.0
<=679	—		—		—		—		3,127			3.4
Total	$	—	0.0	%	$	—	0.0	%	$	93,054		100.0	%

Weighted average credit score	N/A				N/A				750



NIW by LTV
	Three Months Ended
	March 31, 2017				December 31, 2016				March 31, 2016
($ in thousands)
85.00% and below	$	—	0.0	%	$	—	0.0	%	$	755		0.8	%
85.01% to 90.00%	—		—		—		—		27,757			29.8
90.01% to 95.00%	—		—		—		—		64,542			69.4
95.01% and above	—		—		—		—		—			—
Total	$	—	0.0	%	$	—	0.0	%	$	93,054		100.0	%

Weighted average LTV	N/A				N/A				91		%



NIW by Product
	Three Months Ended
	March 31, 2017				December 31, 2016				March 31, 2016
Single Premium policies			0.0	%			0.0	%				100.0	%
Monthly Premium policies			—				—					—
			0.0	%			0.0	%				100.0	%



NIW by Purchase vs. Refinance
	Three Months Ended
	March 31, 2017				December 31, 2016				March 31, 2016
Purchase			0.0	%			0.0	%				100.0	%
Refinance			—				—					—
			0.0	%			0.0	%				100.0	%


														Exhibit E

Essent Group Ltd. and Subsidiaries
Supplemental Information
Insurance in Force and Risk in Force


Portfolio by Credit Score
Total IIF by FICO score	March 31, 2017					December 31, 2016					March 31, 2016
($ in thousands)
>=760	$	39,724,096		45.1	%	$	37,858,422		45.5	%	$	31,032,734		45.8	%
740-759	14,460,034			16.4		13,760,610			16.5		11,383,450			16.8
720-739	12,550,737			14.3		11,855,648			14.2		9,783,221			14.5
700-719	9,325,770			10.6		8,712,971			10.5		6,816,087			10.1
680-699	7,051,155			8.0		6,611,166			7.9		5,310,252			7.8
<=679	4,881,435			5.6		4,466,705			5.4		3,390,997			5.0
Total	$	87,993,227		100.0	%	$	83,265,522		100.0	%	$	67,716,741		100.0	%

Weighted average credit score	748					749					750

Total RIF by FICO score	March 31, 2017					December 31, 2016					March 31, 2016
($ in thousands)
>=760	$	9,791,036		44.9	%	$	9,319,522		45.2	%	$	7,616,124		45.5	%
740-759	3,609,590			16.6		3,434,392			16.7		2,835,832			16.9
720-739	3,146,943			14.4		2,970,941			14.4		2,451,777			14.6
700-719	2,303,107			10.6		2,151,657			10.4		1,677,361			10.0
680-699	1,762,997			8.1		1,656,791			8.0		1,330,183			8.0
<=679	1,187,994			5.4		1,094,014			5.3		834,542			5.0
Total	$	21,801,667		100.0	%	$	20,627,317		100.0	%	$	16,745,819		100.0	%

Portfolio by LTV
Total IIF by LTV	March 31, 2017					December 31, 2016					March 31, 2016
($ in thousands)
85.00% and below	$	10,403,824		11.8	%	$	9,756,578		11.7	%	$	7,460,266		11.0	%
85.01% to 90.00%	28,744,011			32.7		27,409,202			32.9		23,115,372			34.1
90.01% to 95.00%	44,862,812			51.0		42,854,633			51.5		35,485,155			52.4
95.01% and above	3,982,580			4.5		3,245,109			3.9		1,655,948			2.5
Total	$	87,993,227		100.0	%	$	83,265,522		100.0	%	$	67,716,741		100.0	%

Weighted average LTV	92		%			92		%			92		%

Total RIF by LTV	March 31, 2017					December 31, 2016					March 31, 2016
($ in thousands)
85.00% and below	$	1,172,920		5.4	%	$	1,101,947		5.3	%	$	842,560		5.0	%
85.01% to 90.00%	6,821,725			31.3		6,512,613			31.6		5,498,657			32.8
90.01% to 95.00%	12,829,032			58.8		12,234,306			59.3		10,078,998			60.2
95.01% and above	977,990			4.5		778,451			3.8		325,604			2.0
Total	$	21,801,667		100.0	%	$	20,627,317		100.0	%	$	16,745,819		100.0	%

Portfolio by Loan Amortization Period
Total IIF by Loan Amortization Period	March 31, 2017					December 31, 2016					March 31, 2016
($ in thousands)
FRM 30 years and higher	$	79,647,327		90.5	%	$	75,428,964		90.6	%	$	60,857,001		89.9	%
FRM 20-25 years	2,298,806			2.6		2,113,529			2.5		1,546,759			2.3
FRM 15 years	3,290,900			3.8		3,066,893			3.7		2,629,322			3.9
ARM 5 years and higher	2,756,194			3.1		2,656,136			3.2		2,683,659			3.9
Total	$	87,993,227		100.0	%	$	83,265,522		100.0	%	$	67,716,741		100.0	%


							Exhibit F

Essent Group Ltd. and Subsidiaries
Supplemental Information
Other Risk in Force


($ in thousands)	March 31, 2017			December 31, 2016			March 31, 2016

GSE Risk Share (1)	$	436,991		$	384,103		$	188,766

Weighted average credit score	750			749			753
Weighted average LTV	83		%	82		%	77		%

(1) 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
March 31, 2017


								Insurance in Force
	Original		Remaining																	Incurred
	Insurance		Insurance		% Remaining of		Number of													Loss Ratio		Number of
	Written		in Force		Original		Policies in													(Inception		Loans in
Origination Year	($ in thousands)		($ in thousands)		Insurance		Force	% Purchase		>90% LTV		>95% LTV		FICO <700		FICO >= 760		% FRM		to Date) (1)		Default

2010	$	245,898	$	26,764	10.9	%	173	78.7	%	48.6	%	0.0	%	4.2	%	58.3	%	99.2	%	2.7	%	1
2011	3,229,720		522,127		16.2		2,880	76.5		45.6		0.2		5.3		54.7		95.7		3.7		41
2012	11,241,161		3,553,612		31.6		17,894	75.7		54.3		0.5		5.4		55.8		97.8		2.4		130
2013	21,152,638		8,758,749		41.4		43,437	78.6		56.4		1.9		7.8		51.3		97.4		2.6		322
2014	24,799,434		13,669,734		55.1		68,094	87.1		61.2		3.8		15.3		42.1		94.2		3.8		637
2015	26,193,656		20,458,227		78.1		92,205	82.0		55.4		2.4		14.8		43.7		96.6		3.4		433
2016	34,949,319		33,018,253		94.5		138,401	79.3		53.7		6.0		14.1		45.1		98.0		3.0		209
2017 (through March 31)	8,034,153		7,985,761		99.4		34,566	78.9		53.8		10.1		16.0		42.2		96.5		0.5		4
Total	$	129,845,979	$	87,993,227	67.8		397,650	80.8		55.5		4.5		13.6		45.1		96.9		3.1		1,777

(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
	March 31, 2017		December 31, 2016		March 31, 2016
CA	9.4	%	9.4	%	9.5	%
TX	8.2		8.2		8.4
FL	6.8		6.6		6.3
WA	4.8		4.8		4.7
IL	3.9		4.0		4.0
NC	3.6		3.7		3.9
NJ	3.6		3.5		3.4
GA	3.4		3.4		3.3
MN	3.2		3.2		2.9
AZ	3.2		3.2		3.2
All Others	49.9		50.0		50.4
Total	100.0	%	100.0	%	100.0	%



RIF by State
	March 31, 2017		December 31, 2016		March 31, 2016
CA	9.0	%	9.0	%	9.2	%
TX	8.5		8.5		8.6
FL	7.0		6.9		6.5
WA	4.9		4.8		4.7
IL	3.9		4.0		4.1
NC	3.7		3.7		4.0
NJ	3.5		3.5		3.3
GA	3.5		3.5		3.5
MN	3.3		3.3		3.0
OH	3.1		3.1		3.0
All Others	49.6		49.7		50.1
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
	March 31,			December 31,			March 31,
	2017			2016			2016
Beginning default inventory	1,757			1,453			1,028
Plus: new defaults	1,200			1,208			769
Less: cures	(1,114		)	(861		)	(706		)
Less: claims paid	(65		)	(39		)	(30		)
Less: rescissions and denials, net	(1		)	(4		)	(1		)
Ending default inventory	1,777			1,757			1,060



Rollforward of Reserve for Losses and LAE
	Three Months Ended
	March 31,			December 31,			March 31,
($ in thousands)	2017			2016			2016
Reserve for losses and LAE at beginning of period	$	28,142		$	25,731		$	17,760
Add provision for losses and LAE occurring in:
Current year	7,090			5,502			5,080
Prior years	(3,397		)	(1,637		)	(1,349		)
Incurred losses during the period	3,693			3,865			3,731
Deduct payments for losses and LAE occurring in:
Current year	1			460			1
Prior years	2,366			994			1,020
Loss and LAE payments during the period	2,367			1,454			1,021
Reserve for losses and LAE at end of period	$	29,468		$	28,142		$	20,470



Claims
	Three Months Ended
	March 31,			December 31,			March 31,
	2017			2016			2016
Number of claims paid	65			39			30
Total amount paid for claims (in thousands)	$	2,307		$	1,438		$	998
Average amount paid per claim (in thousands)	$	35		$	37		$	33
Severity	87		%	70		%	93		%


									Exhibit I, continued
Essent Group Ltd. and Subsidiaries
Supplemental Information
Defaults, Reserve for Losses and LAE, and Claims


	March 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	869		49	%	$	6,426	24	%	$	50,004	13	%
Four to eleven payments	690		39			13,428	50			38,252	35
Twelve or more payments	184		10			5,673	21			9,403	60
Pending claims	34		2			1,437	5			1,748	82
Total case reserves	1,777		100	%		26,964	100	%	$	99,407	27
IBNR						2,022
LAE						482
Total reserves for losses and LAE					$	29,468

Average reserve per default:
Case					$	15.2
Total					$	16.6

Default Rate	0.45	%

	December 31, 2016
	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	914		52	%	$	6,615	26	%	$	50,737	13	%
Four to eleven payments	620		35			11,505	45			32,833	35
Twelve or more payments	179		10			5,678	22			9,575	59
Pending claims	44		3			1,960	7			2,272	86
Total case reserves	1,757		100	%		25,758	100	%	$	95,417	27
IBNR						1,932
LAE						452
Total reserves for losses and LAE					$	28,142

Average reserve per default:
Case					$	14.7
Total					$	16.0

Default Rate	0.47	%

	March 31, 2016
	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	505		48	%	$	4,639	25	%	$	28,519	16	%
Four to eleven payments	426		40			9,689	52			23,147	42
Twelve or more payments	105		10			3,438	18			5,217	66
Pending claims	24		2			1,029	5			1,202	86
Total case reserves	1,060		100	%		18,795	100	%	$	58,085	32
IBNR						1,410
LAE						265
Total reserves for losses and LAE					$	20,470

Average reserve per default:
Case					$	17.7
Total					$	19.3

Default Rate	0.34	%


								Exhibit J

Essent Group Ltd. and Subsidiaries
Supplemental Information
Investment Portfolio


Investment Portfolio by Asset Class
Asset Class	March 31, 2017					December 31, 2016
($ in thousands)	Fair Value			Percent		Fair Value		Percent
U.S. Treasury securities	$	178,743		10.4	%	$	191,548	11.9	%
U.S. agency securities		26,284		1.5			18,441	1.1
U.S. agency mortgage-backed securities		355,239		20.6			316,494	19.6
Municipal debt securities		361,392		21.0			334,324	20.7
Corporate debt securities		505,288		29.3			456,357	28.3
Residential and commercial mortgage securities		65,288		3.8			68,336	4.2
Asset-backed securities		134,911		7.8			127,172	7.9
Money market funds		97,388		5.6			102,430	6.3
Total Investments	$	1,724,533		100.0	%	$	1,615,102	100.0	%

Investment Portfolio by Credit Rating
Rating (1)	March 31, 2017					December 31, 2016
($ in thousands)	Fair Value			Percent		Fair Value		Percent
Aaa	$	809,229		46.9	%	$	780,513	48.3	%
Aa1		96,852		5.6			88,977	5.5
Aa2		102,056		5.9			101,772	6.3
Aa3		98,218		5.7			89,421	5.5
A1		156,350		9.1			143,938	8.9
A2		134,741		7.8			126,113	7.8
A3		99,307		5.8			95,926	6.0
Baa1		98,948		5.7			85,864	5.3
Baa2		82,677		4.8			71,950	4.5
Baa3		28,819		1.7			24,544	1.5
Below Baa3 / Unrated		17,336		1.0			6,084	0.4
Total Investments	$	1,724,533		100.0	%	$	1,615,102	100.0	%

(1) Based on ratings issued by Moody's, if available. S&P or Fitch rating utilized if Moody's not available.

Investment Portfolio by Duration and Book Yield
Effective Duration	March 31, 2017					December 31, 2016
($ in thousands)	Fair Value			Percent		Fair Value		Percent
< 1 Year	$	329,046		19.1	%	$	329,901	20.4	%
1 to < 2 Years		156,647		9.1			153,184	9.5
2 to < 3 Years		134,555		7.8			156,620	9.7
3 to < 4 Years		219,776		12.7			176,896	11.0
4 to < 5 Years		166,485		9.7			139,115	8.6
5 or more Years		718,024		41.6			659,386	40.8
Total Investments	$	1,724,533		100.0	%	$	1,615,102	100.0	%

Pre-tax investment income yield:
Three months ended March 31, 2017		2.15	%

Net cash and investments at holding company, Essent Group Ltd.:
($ in thousands)
As of March 31, 2017	$	41,060
As of December 31, 2016	$	46,561


			Exhibit K

Essent Group Ltd. and Subsidiaries
Supplemental Information
Insurance Company Capital


	March 31, 2017		December 31, 2016
($ in thousands)
U.S. Mortgage Insurance Subsidiaries:
Combined statutory capital (1)	$	1,202,569	$	1,144,279

Combined net risk in force (2)	$	17,611,301	$	16,801,992

Risk-to-capital ratios: (3)
Essent Guaranty, Inc.		15.2:1		15.3:1
Essent Guaranty of PA, Inc.		6.7:1		6.8:1
Combined (4)		14.6:1		14.7:1

Essent Reinsurance Ltd.:
Stockholder's equity (GAAP basis)	$	452,541	$	401,273

Net risk in force (2)	$	4,598,370	$	4,181,737


(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.


					Exhibit L
Essent Group Ltd. and Subsidiaries
Supplemental Information
Reconciliation of Non-GAAP Financial Measure - Adjusted Book Value per Share

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

Adjusted Book Value per Share is calculated by dividing Adjusted Book Value by Common Shares and Share Units Outstanding. Adjusted Book Value is defined as consolidated stockholders’ equity of the Company, excluding accumulated other comprehensive income (loss) plus the proceeds, if any, from the assumed exercise of all "in-the-money" options, warrants and similar instruments. Common Shares and Share Units Outstanding is defined as total common shares outstanding plus all equity instruments (including restricted 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 March 31, 2017, December 31, 2016 and March 31, 2016, the Company does not have any options, warrants and similar instruments outstanding.

The following table sets forth the reconciliation of Adjusted Book Value to the most comparable GAAP amount as of March 31, 2017, December 31, 2016 and March 31, 2016 in accordance with Regulation G:


(In thousands, except per share amounts)	March 31, 2017			December 31, 2016			March 31, 2016

Numerator:
Total Stockholders' Equity (Book Value)	$	1,412,752		$	1,343,773		$	1,181,495

Subtract: Accumulated Other Comprehensive (Loss) Income	(7,405		)	(12,255		)	13,260

Adjusted Book Value	$	1,420,157		$	1,356,028		$	1,168,235

Denominator:
Total Common Shares Outstanding	93,377			93,105			93,070

Add: Restricted Share Units Outstanding	598			493			484

Total Common Shares and Share Units Outstanding	93,975			93,598			93,554

Adjusted Book Value per Share	$	15.11		$	14.49		$	12.49

View source version on businesswire.com: http://www.businesswire.com/news/home/20170505005150/en/

Source: Essent Group Ltd.

Essent Group Ltd.

Media Contact

610-230-0556

media@essentgroup.com

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Investor Relations Contact

Christopher G. Curran

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