Essent Group Ltd. Reports Second Quarter 2017 Results

August 4, 2017

HAMILTON, Bermuda--(BUSINESS WIRE)-- Essent Group Ltd. (NYSE: ESNT) today reported net income for the quarter ended June 30, 2017 of $72.1 million or $0.77 per diluted share, compared to $52.3 million or $0.57 per diluted share for the quarter ended June 30, 2016. As of June 30, 2017, Essent had insurance in force of $95.5 billion and consolidated stockholders’ equity of $1.5 billion.

“We are pleased with our strong second quarter results and continuing to build a high credit quality and profitable mortgage insurance portfolio,” said Mark Casale, Chairman and Chief Executive Officer. “We believe that Essent is well positioned in both the U.S. and Bermuda to continue growing our portfolio and generating high quality earnings and strong returns for our shareholders.”

Financial Highlights:

Insurance in force as of June 30, 2017 was $95.5 billion, compared to $72.3 billion as of June 30, 2016.
New insurance written for the second quarter was $11.4 billion, compared to $8.7 billion in the second quarter of 2016.
Net premiums earned for the second quarter were $126.6 million, compared to $100.7 million in the second quarter of 2016.
The expense ratio for the second quarter was 28.2%, compared to 31.2% in the second quarter of 2016.
The provision for losses and LAE for the second quarter was $1.8 million, compared to $3.0 million in the second quarter of 2016.
The percentage of loans in default as of June 30, 2017 was 0.41%, compared to 0.36% as of June 30, 2016.
The combined ratio for the second quarter was 29.6%, compared to 34.1% in the second quarter of 2016.
The consolidated balance of cash and investments at June 30, 2017 was $1.9 billion, including cash and investment balances at Essent Group Ltd. of $27.2 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 14.9:1 as of June 30, 2017.
Essent Reinsurance Ltd. reinsured a total of $53.0 million of risk in GSE risk share transactions in the second quarter of 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 877-201-0168 inside the U.S., or 647-788-4901 for international callers, using passcode 53194302 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 53194302.

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 June 30, 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 June 30,						Six Months Ended June 30,
(In thousands, except per share amounts)	2017			2016			2017			2016
Revenues:
Net premiums written	$	134,063		$	108,513		$	253,360		$	208,979
Increase in unearned premiums	(7,500		)	(7,802		)	(9,146		)	(13,865		)
Net premiums earned	126,563			100,711			244,214			195,114
Net investment income	9,400			6,701			17,835			12,884
Realized investment gains, net	544			583			1,199			1,054
Other income	1,099			170			1,950			1,579
Total revenues	137,606			108,165			265,198			210,631

Losses and expenses:
Provision for losses and LAE	1,770			2,964			5,463			6,695
Other underwriting and operating expenses	35,686			31,409			72,018			62,797
Interest expense	1,189			—			1,905			—
Total losses and expenses	38,645			34,373			79,386			69,492

Income before income taxes	98,961			73,792			185,812			141,139
Income tax expense	26,843			21,534			47,096			40,930
Net income	$	72,118		$	52,258		$	138,716		$	100,209


Earnings per share:
Basic	$	0.79		$	0.57		$	1.52		$	1.10
Diluted	0.77			0.57			1.49			1.09

Weighted average shares outstanding:
Basic	91,381			90,912			91,320			90,848
Diluted	93,162			92,138			93,093			91,999

Net income	$	72,118		$	52,258		$	138,716		$	100,209

Other comprehensive income (loss):
Change in unrealized appreciation of investments	8,470			10,702			13,320			24,061
Total other comprehensive income	8,470			10,702			13,320			24,061
Comprehensive income	$	80,588		$	62,960		$	152,036		$	124,270


Loss ratio	1.4		%	2.9		%	2.2		%	3.4		%
Expense ratio	28.2		%	31.2		%	29.5		%	32.2		%
Combined ratio	29.6		%	34.1		%	31.7		%	35.6		%


				Exhibit B

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


	June 30,			December 31,
(In thousands, except per share amounts)	2017			2016
Assets
Investments available for sale, at fair value
Fixed maturities	$	1,710,057		$	1,482,754
Short-term investments	130,984			132,348
Total investments	1,841,041			1,615,102
Cash	27,670			27,531
Accrued investment income	10,776			9,488
Accounts receivable	26,648			21,632
Deferred policy acquisition costs	14,037			13,400
Property and equipment	7,955			8,119
Prepaid federal income tax	215,357			181,272
Other assets	9,409			6,454

Total assets	$	2,152,893		$	1,882,998

Liabilities and Stockholders' Equity
Liabilities
Reserve for losses and LAE	$	29,798		$	28,142
Unearned premium reserve	228,762			219,616
Net deferred tax liability	181,206			142,587
Credit facility borrowings, net of deferred costs	173,192			100,000
Securities purchased payable	19,770			14,999
Other accrued liabilities	22,268			33,881
Total liabilities	654,996			539,225

Commitments and contingencies

Stockholders' Equity
Common shares	1,401			1,397
Additional paid-in capital	920,452			918,296
Accumulated other comprehensive income (loss)	1,065			(12,255		)
Retained earnings	574,979			436,335
Total stockholders' equity	1,497,897			1,343,773

Total liabilities and stockholders' equity	$	2,152,893		$	1,882,998

Return on average equity (1)	19.5		%	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	June 30			March 31			December 31			September 30			June 30			March 31
(In thousands, except per share amounts)
Revenues:
Net premiums written	$	134,063		$	119,297		$	116,412		$	115,887		$	108,513		$	100,466

Net premiums earned	126,563			117,651			116,792			110,801			100,711			94,403
Other revenues (1)	11,043			9,941			9,581			10,453			7,454			8,063
Total revenues	137,606			127,592			126,373			121,254			108,165			102,466

Losses and expenses:
Provision for losses and LAE	1,770			3,693			3,865			4,965			2,964			3,731
Other underwriting and operating expenses	35,686			36,332			34,836			32,792			31,409			31,388
Interest expense	1,189			716			370			56			—			—
Total losses and expenses	38,645			40,741			39,071			37,813			34,373			35,119

Income before income taxes	98,961			86,851			87,302			83,441			73,792			67,347
Income tax expense (2)	26,843			20,253			24,616			23,730			21,534			19,396
Net income	$	72,118		$	66,598		$	62,686		$	59,711		$	52,258		$	47,951

Earnings per share:
Basic	$	0.79		$	0.73		$	0.69		$	0.66		$	0.57		$	0.53
Diluted	0.77			0.72			0.68			0.65			0.57			0.52

Weighted average shares outstanding:
Basic	91,381			91,258			90,991			90,961			90,912			90,785
Diluted	93,162			93,023			92,577			92,399			92,138			91,859

Other Data:
Loss ratio (3)	1.4		%	3.1		%	3.3		%	4.5		%	2.9		%	4.0		%
Expense ratio (4)	28.2		%	30.9		%	29.8		%	29.6		%	31.2		%	33.2		%
Combined ratio	29.6		%	34.0		%	33.1		%	34.1		%	34.1		%	37.2		%

Return on average equity (annualized)	19.8		%	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 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:	June 30			March 31			December 31			September 30			June 30			March 31
($ in thousands)

U.S. Mortgage Insurance Portfolio
Flow:
New insurance written	$	11,368,276		$	8,034,153		$	10,475,258		$	10,299,161		$	8,715,171		$	5,366,675
New risk written	2,786,501			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		%	0.53		%	0.56		%	0.58		%	0.57		%	0.56		%
New insurance written	$	11,368,276		$	8,034,153		$	10,475,258		$	10,299,161		$	8,715,171		$	5,459,729
New risk written	$	2,786,501		$	1,929,832		$	2,498,831		$	2,536,734		$	2,167,333		$	1,349,068
Insurance in force (end of period)	$	95,494,390		$	87,993,227		$	83,265,522		$	77,614,373		$	72,267,099		$	67,716,741
Risk in force (end of period)	$	23,665,045		$	21,801,667		$	20,627,317		$	19,289,387		$	17,937,364		$	16,745,819
Policies in force	430,585			397,650			375,898			350,600			328,441			308,779
Weighted average coverage (6)	24.8		%	24.8		%	24.8		%	24.9		%	24.8		%	24.7		%
Annual persistency	80.1		%	78.2		%	77.7		%	79.4		%	81.0		%	81.0		%

Loans in default (count)	1,776			1,777			1,757			1,453			1,174			1,060
Percentage of loans in default	0.41		%	0.45		%	0.47		%	0.41		%	0.36		%	0.34		%

Other Risk in Force
GSE Risk Share (7)	$	479,762		$	436,991		$	384,103		$	302,211		$	305,357		$	188,766

Credit Facility
Borrowings outstanding	$	175,000		$	125,000		$	100,000		$	50,000		$	—		N/A
Undrawn committed capacity	$	200,000		$	75,000		$	100,000		$	150,000		$	200,000		N/A
Weighted average interest rate	3.21		%

(5) Average premium rate is calculated by dividing net premiums earned for the U.S. mortgage insurance portfolio 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										Six Months Ended
	June 30, 2017					June 30, 2016					June 30, 2017					June 30, 2016
($ in thousands)
>=760	$	4,913,160		43.2	%	$	4,013,236		46.1	%	$	8,312,914		42.8	%	$	6,301,139		44.7	%
740-759	1,785,683			15.7		1,406,617			16.1		3,028,961			15.6		2,246,425			16.0
720-739	1,547,404			13.6		1,157,032			13.3		2,696,619			13.9		1,936,588			13.8
700-719	1,321,235			11.6		950,965			10.9		2,279,250			11.8		1,533,696			10.9
680-699	963,139			8.5		688,642			7.9		1,657,953			8.5		1,175,494			8.3
<=679	837,655			7.4		498,679			5.7		1,426,732			7.4		888,504			6.3
Total	$	11,368,276		100.0	%	$	8,715,171		100.0	%	$	19,402,429		100.0	%	$	14,081,846		100.0	%

Weighted average credit score	745					749					745					747



NIW by LTV
	Three Months Ended										Six Months Ended
	June 30, 2017					June 30, 2016					June 30, 2017					June 30, 2016
($ in thousands)
85.00% and below	$	1,405,971		12.4	%	$	1,176,073		13.5	%	$	2,624,771		13.5	%	$	1,840,071		13.1	%
85.01% to 90.00%	3,393,904			29.9		2,848,106			32.7		5,892,811			30.4		4,651,882			33.0
90.01% to 95.00%	5,132,855			45.1		4,330,416			49.7		8,644,458			44.6		7,060,980			50.1
95.01% and above	1,435,546			12.6		360,576			4.1		2,240,389			11.5		528,913			3.8
Total	$	11,368,276		100.0	%	$	8,715,171		100.0	%	$	19,402,429		100.0	%	$	14,081,846		100.0	%

Weighted average LTV	92		%			92		%			92		%			92		%



NIW by Product
	Three Months Ended										Six Months Ended
	June 30, 2017					June 30, 2016					June 30, 2017					June 30, 2016
Single Premium policies				14.5	%				18.4	%				14.4	%				20.8	%
Monthly Premium policies				85.5					81.6					85.6					79.2
				100.0	%				100.0	%				100.0	%				100.0	%



NIW by Purchase vs. Refinance
	Three Months Ended										Six Months Ended
	June 30, 2017					June 30, 2016					June 30, 2017					June 30, 2016
Purchase				87.5	%				82.5	%				83.9	%				82.1	%
Refinance				12.5					17.5					16.1					17.9
				100.0	%				100.0	%				100.0	%				100.0	%


													Exhibit D, continued

Essent Group Ltd. and Subsidiaries
Supplemental Information
New Insurance Written: Bulk


NIW by Credit Score
	Three Months Ended								Six Months Ended
	June 30, 2017				June 30, 2016				June 30, 2017				June 30, 2016
($ in thousands)
>=760	$	—	0.0	%	$	—	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	%	$	—	0.0	%	$	93,054		100.0	%

Weighted average credit score	N/A				N/A				N/A				750



NIW by LTV
	Three Months Ended								Six Months Ended
	June 30, 2017				June 30, 2016				June 30, 2017				June 30, 2016
($ in thousands)
85.00% and below	$	—	0.0	%	$	—	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	%	$	—	0.0	%	$	93,054		100.0	%

Weighted average LTV	N/A				N/A				N/A				91		%



NIW by Product
	Three Months Ended								Six Months Ended
	June 30, 2017				June 30, 2016				June 30, 2017				June 30, 2016
Single Premium policies			0.0	%			0.0	%			0.0	%				100.0	%
Monthly Premium policies			—				—				—					—
			0.0	%			0.0	%			0.0	%				100.0	%



NIW by Purchase vs. Refinance
	Three Months Ended								Six Months Ended
	June 30, 2017				June 30, 2016				June 30, 2017				June 30, 2016
Purchase			0.0	%			0.0	%			0.0	%				100.0	%
Refinance			—				—				—					—
			0.0	%			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	June 30, 2017					March 31, 2017					June 30, 2016
($ in thousands)
>=760	$	42,839,819		44.8	%	$	39,724,096		45.1	%	$	33,032,120		45.7	%
740-759	15,628,721			16.4		14,460,034			16.4		12,096,199			16.7
720-739	13,568,471			14.2		12,550,737			14.3		10,374,218			14.4
700-719	10,239,343			10.7		9,325,770			10.6		7,365,368			10.2
680-699	7,715,118			8.1		7,051,155			8.0		5,696,562			7.9
<=679	5,502,918			5.8		4,881,435			5.6		3,702,632			5.1
Total	$	95,494,390		100.0	%	$	87,993,227		100.0	%	$	72,267,099		100.0	%

Weighted average credit score	748					748					749

Total RIF by FICO score	June 30, 2017					March 31, 2017					June 30, 2016
($ in thousands)
>=760	$	10,565,479		44.6	%	$	9,791,036		44.9	%	$	8,138,995		45.4	%
740-759	3,900,374			16.5		3,609,590			16.6		3,023,589			16.9
720-739	3,400,897			14.4		3,146,943			14.4		2,607,057			14.5
700-719	2,531,834			10.7		2,303,107			10.6		1,820,731			10.1
680-699	1,928,884			8.1		1,762,997			8.1		1,432,032			8.0
<=679	1,337,577			5.7		1,187,994			5.4		914,960			5.1
Total	$	23,665,045		100.0	%	$	21,801,667		100.0	%	$	17,937,364		100.0	%

Portfolio by LTV
Total IIF by LTV	June 30, 2017					March 31, 2017					June 30, 2016
($ in thousands)
85.00% and below	$	11,175,433		11.7	%	$	10,403,824		11.8	%	$	7,957,849		11.0	%
85.01% to 90.00%	30,771,122			32.2		28,744,011			32.7		24,456,328			33.8
90.01% to 95.00%	48,225,083			50.5		44,862,812			51.0		37,911,936			52.5
95.01% and above	5,322,752			5.6		3,982,580			4.5		1,940,986			2.7
Total	$	95,494,390		100.0	%	$	87,993,227		100.0	%	$	72,267,099		100.0	%

Weighted average LTV	92		%			92		%			92		%

Total RIF by LTV	June 30, 2017					March 31, 2017					June 30, 2016
($ in thousands)
85.00% and below	$	1,261,421		5.3	%	$	1,172,920		5.4	%	$	901,838		5.0	%
85.01% to 90.00%	7,301,776			30.9		6,821,725			31.3		5,824,455			32.5
90.01% to 95.00%	13,776,313			58.2		12,829,032			58.8		10,802,375			60.2
95.01% and above	1,325,535			5.6		977,990			4.5		408,696			2.3
Total	$	23,665,045		100.0	%	$	21,801,667		100.0	%	$	17,937,364		100.0	%

Portfolio by Loan Amortization Period
Total IIF by Loan Amortization Period	June 30, 2017					March 31, 2017					June 30, 2016
($ in thousands)
FRM 30 years and higher	$	86,471,721		90.5	%	$	79,647,327		90.5	%	$	65,269,610		90.3	%
FRM 20-25 years	2,458,906			2.6		2,298,806			2.6		1,660,361			2.3
FRM 15 years	3,521,645			3.7		3,290,900			3.8		2,653,056			3.7
ARM 5 years and higher	3,042,118			3.2		2,756,194			3.1		2,684,072			3.7
Total	$	95,494,390		100.0	%	$	87,993,227		100.0	%	$	72,267,099		100.0	%


							Exhibit F

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


($ in thousands)	June 30, 2017			March 31, 2017			June 30, 2016

GSE Risk Share (1)	$	479,762		$	436,991		$	305,357

Weighted average credit score	749			750			751
Weighted average LTV	83		%	83		%	80		%

(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
June 30, 2017


								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	$	22,547	9.2	%	149	79.6	%	48.5	%	0.0	%	2.8	%	62.0	%	100.0	%	2.8	%	1
2011	3,229,720		475,807		14.7		2,644	76.6		45.9		0.2		5.1		54.4		95.9		3.7		34
2012	11,241,161		3,268,512		29.1		16,564	76.1		54.9		0.5		5.4		56.0		98.0		2.4		126
2013	21,152,638		8,067,843		38.1		40,249	79.0		57.0		1.8		7.7		51.3		97.5		2.5		294
2014	24,799,434		12,791,786		51.6		64,102	87.5		61.7		3.9		15.2		42.2		94.4		3.5		576
2015	26,193,656		19,499,925		74.4		88,437	82.5		55.9		2.5		14.7		43.8		96.7		3.2		440
2016	34,949,319		32,242,272		92.3		136,029	79.5		53.9		6.1		14.0		45.0		98.0		2.8		283
2017 (through June 30)	19,402,429		19,125,698		98.6		82,411	83.9		56.2		11.6		16.0		42.7		96.1		1.1		22
Total	$	141,214,255	$	95,494,390	67.6		430,585	81.9		56.1		5.6		13.8		44.8		96.8		2.9		1,776

(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
	June 30, 2017		March 31, 2017		June 30, 2016
CA	9.4	%	9.4	%	9.5	%
TX	8.2		8.2		8.3
FL	6.9		6.8		6.5
WA	4.8		4.8		4.7
IL	4.0		3.9		4.1
NC	3.6		3.6		3.8
NJ	3.6		3.6		3.4
GA	3.4		3.4		3.3
AZ	3.2		3.2		3.2
MN	3.2		3.2		3.0
All Others	49.7		49.9		50.2
Total	100.0	%	100.0	%	100.0	%



RIF by State
	June 30, 2017		March 31, 2017		June 30, 2016
CA	9.0	%	9.0	%	9.1	%
TX	8.4		8.5		8.6
FL	7.1		7.0		6.7
WA	4.9		4.9		4.8
IL	3.9		3.9		4.1
NC	3.7		3.7		3.9
NJ	3.5		3.5		3.4
GA	3.5		3.5		3.5
MN	3.3		3.3		3.1
OH	3.2		3.1		3.0
All Others	49.5		49.6		49.8
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						Six Months Ended
	June 30,			June 30,			June 30,			June 30,
	2017			2016			2017			2016
Beginning default inventory	1,777			1,060			1,757			1,028
Plus: new defaults	1,105			754			2,305			1,523
Less: cures	(1,063		)	(608		)	(2,177		)	(1,314		)
Less: claims paid	(43		)	(31		)	(108		)	(61		)
Less: rescissions and denials, net	—			(1		)	(1		)	(2		)
Ending default inventory	1,776			1,174			1,776			1,174



Rollforward of Reserve for Losses and LAE
	Three Months Ended						Six Months Ended
	June 30,			June 30,			June 30,			June 30,
($ in thousands)	2017			2016			2017			2016
Reserve for losses and LAE at beginning of period	$	29,468		$	20,470		$	28,142		$	17,760
Add provision for losses and LAE occurring in:
Current year	5,026			4,488			12,116			9,568
Prior years	(3,256		)	(1,524		)	(6,653		)	(2,873		)
Incurred losses during the period	1,770			2,964			5,463			6,695
Deduct payments for losses and LAE occurring in:
Current year	96			111			97			112
Prior years	1,344			849			3,710			1,869
Loss and LAE payments during the period	1,440			960			3,807			1,981
Reserve for losses and LAE at end of period	$	29,798		$	22,474		$	29,798		$	22,474



Claims
	Three Months Ended						Six Months Ended
	June 30,			June 30,			June 30,			June 30,
	2017			2016			2017			2016
Number of claims paid	43			31			108			61
Total amount paid for claims (in thousands)	$	1,380		$	924		$	3,687		$	1,922
Average amount paid per claim (in thousands)	$	32		$	30		$	34		$	32
Severity	81		%	71		%	85		%	81		%


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


	June 30, 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	898	50	%	$	6,101	23	%	$	49,210	12	%
Four to eleven payments	639	36		12,604		46		35,365		36
Twelve or more payments	189	11		6,094		22		10,214		60
Pending claims	50	3		2,469		9		2,842		87
Total case reserves	1,776	100	%	27,268		100	%	$	97,631	28
IBNR				2,045
LAE				485
Total reserves for losses and LAE				$	29,798

Average reserve per default:
Case				$	15.4
Total				$	16.8

Default Rate	0.41%

	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%

	June 30, 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	565	48	%	$	4,494	22	%	$	30,478	15	%
Four to eleven payments	446	38		10,196		49		24,520		42
Twelve or more payments	126	11		4,431		22		6,703		66
Pending claims	37	3		1,504		7		1,693		89
Total case reserves	1,174	100	%	20,625		100	%	$	63,394	33
IBNR				1,547
LAE				302
Total reserves for losses and LAE				$	22,474

Average reserve per default:
Case				$	17.6
Total				$	19.1

Default Rate	0.36%


								Exhibit J

Essent Group Ltd. and Subsidiaries
Supplemental Information
Investment Portfolio


Investment Portfolio by Asset Class
Asset Class	June 30, 2017					December 31, 2016
($ in thousands)	Fair Value			Percent		Fair Value		Percent
U.S. Treasury securities	$	202,364		11.0	%	$	191,548	11.9	%
U.S. agency securities	26,357			1.4		18,441		1.1
U.S. agency mortgage-backed securities	397,602			21.6		316,494		19.6
Municipal debt securities	370,068			20.1		334,324		20.7
Corporate debt securities	555,965			30.2		456,357		28.3
Residential and commercial mortgage securities	69,672			3.8		68,336		4.2
Asset-backed securities	135,505			7.4		127,172		7.9
Money market funds	83,508			4.5		102,430		6.3
Total Investments	$	1,841,041		100.0	%	$	1,615,102	100.0	%

Investment Portfolio by Credit Rating
Rating (1)	June 30, 2017					December 31, 2016
($ in thousands)	Fair Value			Percent		Fair Value		Percent
Aaa	$	853,219		46.3	%	$	780,513	48.3	%
Aa1	93,554			5.1		88,977		5.5
Aa2	106,282			5.8		101,772		6.3
Aa3	87,084			4.7		89,421		5.5
A1	201,148			10.9		143,938		8.9
A2	136,813			7.4		126,113		7.8
A3	106,566			5.8		95,926		6.0
Baa1	109,780			6.0		85,864		5.3
Baa2	96,096			5.2		71,950		4.5
Baa3	32,658			1.8		24,544		1.5
Below Baa3 / Unrated	17,841			1.0		6,084		0.4
Total Investments	$	1,841,041		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	June 30, 2017					December 31, 2016
($ in thousands)	Fair Value			Percent		Fair Value		Percent
< 1 Year	$	368,433		20.0	%	$	329,901	20.4	%
1 to < 2 Years	155,935			8.5		153,184		9.5
2 to < 3 Years	257,442			14.0		156,620		9.7
3 to < 4 Years	183,786			10.0		176,896		11.0
4 to < 5 Years	205,481			11.1		139,115		8.6
5 or more Years	669,964			36.4		659,386		40.8
Total Investments	$	1,841,041		100.0	%	$	1,615,102	100.0	%

Pre-tax investment income yield:
Three months ended June 30, 2017	2.24		%
Six months ended June 30, 2017	2.20		%

Net cash and investments at holding company, Essent Group Ltd.:
($ in thousands)
As of June 30, 2017	$	27,188
As of December 31, 2016	$	46,561


				Exhibit K

Essent Group Ltd. and Subsidiaries
Supplemental Information
Insurance Company Capital


		June 30, 2017		December 31, 2016
($ in thousands)
U.S. Mortgage Insurance Subsidiaries:
Combined statutory capital (1)		$	1,270,440	$	1,144,279

Combined net risk in force (2)		$	18,937,727	$	16,801,992

Risk-to-capital ratios: (3)
	Essent Guaranty, Inc.	15.5:1		15.3:1
	Essent Guaranty of PA, Inc.	6.2:1		6.8:1
	Combined (4)	14.9:1		14.7:1

Essent Reinsurance Ltd.:
Stockholder's equity (GAAP basis)		$	537,740	$	401,273

Net risk in force (2)		$	5,177,768	$	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 June 30, 2017, December 31, 2016 and June 30, 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 June 30, 2017, December 31, 2016 and June 30, 2016 in accordance with Regulation G:


(In thousands, except per share amounts)	June 30, 2017		December 31, 2016			June 30, 2016

Numerator:
Total Stockholders' Equity (Book Value)	$	1,497,897	$	1,343,773		$	1,248,607

Subtract: Accumulated Other Comprehensive Income (Loss)	1,065		(12,255		)	23,962

Adjusted Book Value	$	1,496,832	$	1,356,028		$	1,224,645

Denominator:
Total Common Shares Outstanding	93,424		93,105			93,106

Add: Restricted Share Units Outstanding	559		493			490

Total Common Shares and Share Units Outstanding	93,983		93,598			93,596

Adjusted Book Value per Share	$	15.93	$	14.49		$	13.08

View source version on businesswire.com: http://www.businesswire.com/news/home/20170804005071/en/

Source: Essent Group Ltd.

Essent Group Ltd.

Media Contact

610-230-0556

media@essentgroup.com

or

Investor Relations Contact

Christopher G. Curran

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