News Details

30% Increase in Net Income versus First Quarter 2014

Essent Reinsurance, Ltd. Executes First Transaction

HAMILTON, Bermuda--(BUSINESS WIRE)-- Essent Group Ltd. (NYSE: ESNT) today reported net income for the quarter ended June 30, 2014 of $19.6 million or $0.23 per diluted share. As of June 30, 2014, Essent had primary insurance in force of $39.4 billion and consolidated stockholders’ equity of $768.0 million. Essent’s combined risk to capital ratio, which includes statutory capital for both Essent Guaranty, Inc. and Essent Guaranty of PA, Inc., was 16.2:1 as of June 30, 2014.

Essent also reported that subsequent to the end of the second quarter 2014 its Bermuda-based reinsurer, Essent Reinsurance, Ltd. (“Essent Re”), insured a portion of Freddie Mac’s most recent Agency Credit Insurance Structure (“ACIS”) transaction. Additionally, Essent reported that its domestic flagship mortgage insurer, Essent Guaranty, Inc., entered into a quota-share agreement with Essent Re to prospectively reinsure 25% of its GSE eligible new insurance written effective July 1, 2014. This agreement, which has received approval from both Freddie Mac and Fannie Mae, remains subject to approval from the Pennsylvania Insurance Department. During the third quarter, Essent Group Ltd. plans to contribute $100 million in capital to Essent Re in support of the affiliate quota share and current and future reinsurance transactions.

“Our strong earnings for the quarter reflect our success in increasing the number of customers doing business with Essent and the growth in our high credit quality insurance portfolio,” said Mark Casale, Chairman and Chief Executive Officer. "Also, we are pleased to have Essent Re execute its first transaction and we believe the affiliate quota share will improve our capital efficiency and provide incremental shareholder value. We remain very excited about Essent’s long term prospects.”

Financial Highlights:

• Insurance in force as of June 30, 2014 was $39.4 billion, compared to $34.8 billion as of March 31, 2014 and $22.6 billion as of June 30, 2013.
• New insurance written for the second quarter of 2014 was $5.9 billion, compared to $3.6 billion in the first quarter of 2014 and $5.9 billion in the second quarter of 2013.
• Income before taxes for the second quarter of 2014 was $29.7 million, compared to $23.5 million for the first quarter of 2014 and $13.4 million for the second quarter of 2013.
• Net premiums earned for the second quarter of 2014 were $50.3 million, compared to $44.8 million in the first quarter of 2014 and $27.5 million in the second quarter of 2013.
• The expense ratio for the second quarter of 2014 was 47.0%, compared to 52.4% for the first quarter of 2014 and 56.6% for the second quarter of 2013.
• The provision for losses and LAE for the second quarter of 2014 was $1.0 million, compared to $0.9 million for the first quarter of 2014 and $0.6 million for the second quarter of 2013.
• The percentage of loans in default as of June 30, 2014 was 0.13%, compared to 0.12% as of March 31, 2014 and 0.09% as of June 30, 2013.
• The combined ratio for the second quarter of 2014 was 48.9%, compared to 54.4% for the first quarter of 2014 and 58.7% for the second quarter of 2013.
• In July, through a competitive bidding process, Essent Guaranty, Inc. was selected by Fannie Mae to be the sole insurer on a pool of loans of approximately $1.5 billion.
• Essent had $171.0 million of net cash and investments at the holding company as of June 30, 2014.

Conference Call

Essent management will hold a conference call at 10:00 AM Eastern time today to discuss its results. The conference call will be broadcast live over the Internet at http://ir.essentgroup.com/investors/webcasts-and-presentations/event-calendar/default.aspx. The call may also be accessed by dialing 877-201-0168 inside the U.S., or 647-788-4901 for international callers, using passcode 76436919 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 76436919.

In addition to the information provided in the company's earnings news release, other statistical and financial information, which may be referred to during the conference call, will be available on Essent's website at http://ir.essentgroup.com/investors/financial-information/quarterly-financial-supplements/default.aspx.

Forward Looking Statements

This press release may include “forward-looking statements” which are subject to known and unknown risks and uncertainties, many of which may be beyond our control. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "plan," "seek," "comfortable with," "will," "expect," "intend," "estimate," "anticipate," "believe" or "continue" or the negative thereof or variations thereon or similar terminology. Actual events, results and outcomes may differ materially from our expectations due to a variety of known and unknown risks, uncertainties and other factors. Although it is not possible to identify all of these risks and factors, they include, among others, the following: changes in or to Fannie Mae and Freddie Mac (the “GSEs”), whether through Federal legislation, restructurings or a shift in business practices; failure to continue to meet the mortgage insurer eligibility requirements of the GSEs; competition for customers; lenders or investors seeking alternatives to private mortgage insurance; an increase in the number of loans insured through Federal government mortgage insurance programs, including those offered by the Federal Housing Administration; decline in new insurance written and franchise value due to loss of a significant customer; decline in the volume of low down payment mortgage originations; the definition of "Qualified Mortgage" reducing the size of the mortgage origination market or creating incentives to use government mortgage insurance programs; the definition of "Qualified Residential Mortgage" reducing the number of low down payment loans or lenders and investors seeking alternatives to private mortgage insurance; the implementation of the Basel III Capital Accord discouraging the use of private mortgage insurance; a decrease in the length of time that insurance policies are in force; uncertainty of loss reserve estimates; deteriorating economic conditions; non-U.S. operations becoming subject to U.S. Federal income taxation; becoming considered a passive foreign investment company for U.S. Federal income tax purposes; and other risks and factors described in Part I, Item 1A “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2013 filed with the Securities and Exchange Commission on March 10, 2014. Any forward-looking information presented herein is made only as of the date of this press release, and we do not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

Non-GAAP Financial Measures

In presenting Essent Group Ltd.’s results, management has included financial measures, including adjusted book value per share, that are not calculated under standards or rules that comprise accounting principles generally accepted in the United States (“GAAP”). Such measures are referred to as “non-GAAP measures.” These non-GAAP measures may be defined or calculated differently by other companies. Management believes these measures allow for a more complete understanding of the underlying business. These measures are used to monitor our results and should not be viewed as a substitute for those determined in accordance with GAAP. Reconciliations of such measures to the most comparable GAAP figures are included in the attached financial supplement in accordance with Regulation G.

About the Company

Essent Group Ltd. (NYSE: ESNT) is a Bermuda-based holding company which, through its wholly-owned subsidiary Essent Guaranty, Inc., offers private mortgage insurance for single-family mortgage loans in the United States. Essent provides private capital to mitigate mortgage credit risk, allowing lenders to make additional mortgage financing available to prospective homeowners. Headquartered in Radnor, Pennsylvania, Essent Guaranty, Inc. is licensed to write mortgage insurance in all 50 states and the District of Columbia, and is approved by Fannie Mae and Freddie Mac. Additional information regarding Essent may be found at www.essentgroup.com.

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

														Exhibit A
Essent Group Ltd. and Subsidiaries
Condensed Consolidated Statements of Comprehensive Income (Unaudited)
		Three Months Ended June 30,								Six Months Ended June 30,
(In thousands, except per share amounts)			2014				2013				2014				2013
Revenues:
Net premiums written		$	63,505			$	44,923			$	115,697			$	78,296
Increase in unearned premiums			(13,163	)			(17,442	)			(20,605	)			(29,551	)
Net premiums earned			50,342				27,481				95,092				48,745
Net investment income			3,080				1,014				4,978				1,744
Realized investment gains, net			68				83				468				93
Other income			793				986				1,566				2,013
Total revenues			54,283				29,564				102,104				52,595
Losses and expenses:
Provision for losses and LAE			966				580				1,868				1,310
Other underwriting and operating expenses			23,648				15,557				47,107				30,519
Total losses and expenses			24,614				16,137				48,975				31,829
Income before income taxes			29,669				13,427				53,129				20,766
Income tax expense (benefit)			10,114				(10,150	)			18,568				(10,011	)
Net income		$	19,555			$	23,577			$	34,561			$	30,777
Earnings per share:
Basic:
Common Shares		$	0.23				N/A			$	0.42				N/A
Class A common shares			N/A			$	0.63				N/A			$	0.88
Class B-2 common shares			N/A				0.40				N/A				0.49
Diluted:
Common Shares		$	0.23				N/A			$	0.41				N/A
Class A common shares			N/A			$	0.62				N/A			$	0.88
Class B-2 common shares			N/A				0.09				N/A				0.09
Weighted average common shares outstanding:
Basic:
Common Shares			83,276				N/A				83,071				N/A
Class A common shares			N/A				36,793				N/A				34,313
Class B-2 common shares			N/A				1,334				N/A				1,095
Diluted:
Common Shares			84,706				N/A				84,701				N/A
Class A common shares			N/A				36,901				N/A				34,408
Class B-2 common shares			N/A				5,994				N/A				6,004
Net income		$	19,555			$	23,577			$	34,561			$	30,777
Other comprehensive income (loss)
Change in unrealized appreciation (depreciation) of investments, net of tax expense (benefit) of $2,095 and $(2,043) in the three months ended June 30, 2014 and 2013 and $2,465 and $(2,182) in the six months ended June 30, 2014 and 2013			4,915				(3,795	)			5,394				(4,053	)
Total other comprehensive income (loss)			4,915				(3,795	)			5,394				(4,053	)
Comprehensive income		$	24,470			$	19,782			$	39,955			$	26,724
Loss ratio			1.9	%			2.1	%			2.0	%			2.7	%
Expense ratio			47.0	%			56.6	%			49.5	%			62.6	%
Combined ratio			48.9	%			58.7	%			51.5	%			65.3	%

						Exhibit B
Essent Group Ltd. and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)
		June 30,				December 31,
(In thousands, except per share amounts)			2014				2013
Assets
Investments available for sale, at fair value
Fixed maturities		$	672,699			$	318,476
Short-term investments			173,171				14,079
Total investments			845,870				332,555
Cash			14,180				477,655
Accrued investment income			4,641				1,978
Accounts receivable			12,249				10,006
Deferred policy acquisition costs			7,539				6,173
Property and equipment (at cost, less accumulated depreciation of $38,013 in 2014 and $36,796 in 2013)			4,865				4,411
Prepaid federal income tax			34,000				8,000
Net deferred tax asset			-				10,346
Other assets			2,021				2,846
Total assets		$	925,365			$	853,970
Liabilities and Stockholders' Equity
Liabilities
Reserve for losses and LAE		$	4,506			$	3,070
Unearned premium reserve			124,004				103,399
Amounts due under Asset Purchase Agreement			2,483				4,949
Accrued payroll and bonuses			7,957				13,076
Net deferred tax liability			9,430				-
Other accrued liabilities			9,026				7,335
Total liabilities			157,406				131,829
Commitments and contingencies
Stockholders' Equity
Common Shares, $0.015 par value:
Authorized - 233,333; issued - 86,528 shares in 2014 and 86,491 shares in 2013			1,298				1,297
Additional paid-in capital			760,252				754,390
Accumulated other comprehensive income (loss)			3,947				(1,447	)
Retained earnings (accumulated deficit)			2,462				(32,099	)
Total stockholders' equity			767,959				722,141
Total liabilities and stockholders' equity		$	925,365			$	853,970

																											Exhibit C
Essent Group Ltd. and Subsidiaries
Supplemental Information
New Insurance Written
NIW by Credit Score
		Three months ended														Six months ended
		June 30, 2014							June 30, 2013							June 30, 2014							June 30, 2013
($ in thousands)
>=760		$	2,651,224			45.1	%		$	3,161,194			53.7	%		$	4,265,660			44.9	%		$	5,598,784			54.7	%
740-759			964,322			16.4				1,038,781			17.6				1,601,181			16.8				1,814,340			17.8
720-739			858,348			14.6				791,569			13.4				1,394,819			14.7				1,364,466			13.4
700-719			629,211			10.7				482,263			8.2				1,004,711			10.6				796,736			7.8
680-699			490,259			8.3				331,699			5.6				805,526			8.5				506,558			5.0
<=679			280,970			4.9				89,621			1.5				433,010			4.5				135,799			1.3
Total		$	5,874,334			100.0	%		$	5,895,127			100.0	%		$	9,504,907			100.0	%		$	10,216,683			100.0	%
Weighted-average Credit Score			749							758							749							759
NIW by LTV
		Three months ended														Six months ended
		June 30, 2014							June 30, 2013							June 30, 2014							June 30, 2013
($ in thousands)
85.00% and below		$	671,651			11.4	%		$	879,352			14.9	%		$	1,107,384			11.7	%		$	1,698,838			16.6	%
85.01% to 90.00%			1,976,596			33.6				2,152,742			36.5				3,217,124			33.8				3,787,024			37.1
90.01% to 95.00%			3,204,930			54.6				2,800,064			47.5				5,130,693			54.0				4,638,486			45.4
95.01% and above			21,157			0.4				62,969			1.1				49,706			0.5				92,335			0.9
		$	5,874,334			100.0	%		$	5,895,127			100.0	%		$	9,504,907			100.0	%		$	10,216,683			100.0	%
Weighted-average LTV			92	%						91	%						92	%						91	%
NIW by Product
		Three months ended														Six months ended
		June 30, 2014							June 30, 2013							June 30, 2014							June 30, 2013
Single Premium policies						18.6	%						20.4	%						18.5	%						19.7	%
Monthly Premium policies						81.4							79.6							81.5							80.3
						100.0	%						100.0	%						100.0	%						100.0	%
NIW by Purchase vs. Refinance
		Three months ended														Six months ended
		June 30, 2014							June 30, 2013							June 30, 2014							June 30, 2013
Purchase						86.6	%						67.5	%						86.0	%						61.5	%
Refinance						13.4							32.5							14.0							38.5
						100.0	%						100.0	%						100.0	%						100.0	%

																				Exhibit D
Essent Group Ltd. and Subsidiaries
Supplemental Information
Insurance in Force and Risk in Force
Portfolio by Credit Score
Total IIF by FICO score		June 30, 2014							March 31, 2014							June 30, 2013
($ in thousands)
>=760		$	20,157,165			51.2	%		$	18,212,476			52.3	%		$	12,579,842			55.7	%
740-759			6,963,735			17.7				6,218,225			17.9				4,011,141			17.8
720-739			5,502,718			14.0				4,804,322			13.8				3,022,359			13.4
700-719			3,481,564			8.8				2,955,696			8.5				1,704,037			7.5
680-699			2,368,613			6.0				1,940,162			5.6				994,955			4.5
<=679			906,084			2.3				647,176			1.9				263,966			1.1
Total		$	39,379,879			100.0	%		$	34,778,057			100.0	%		$	22,576,300			100.0	%
Weighted-average Credit Score			756							757							760
Total RIF by FICO score		June 30, 2014							March 31, 2014							June 30, 2013
($ in thousands)
>=760		$	4,913,013			50.6	%		$	4,403,362			51.9	%		$	2,954,484			55.2	%
740-759			1,722,247			17.8				1,527,784			18.0				957,841			17.9
720-739			1,376,538			14.2				1,192,630			14.0				728,822			13.6
700-719			855,985			8.8				717,501			8.4				400,692			7.5
680-699			601,426			6.2				488,405			5.8				241,489			4.6
<=679			231,340			2.4				164,180			1.9				65,589			1.2
Total		$	9,700,549			100.0	%		$	8,493,862			100.0	%		$	5,348,917			100.0	%
Portfolio by LTV
Total IIF by LTV		June 30, 2014							March 31, 2014							June 30, 2013
($ in thousands)
85.00% and below		$	4,928,612			12.5	%		$	4,540,795			13.1	%		$	3,392,450			15.0	%
85.01% to 90.00%			14,516,271			36.9				13,054,922			37.5				8,937,420			39.6
90.01% to 95.00%			19,489,901			49.5				16,748,932			48.2				10,097,956			44.7
95.01% and above			445,095			1.1				433,408			1.2				148,474			0.7
		$	39,379,879			100.0	%		$	34,778,057			100.0	%		$	22,576,300			100.0	%
Weighted-average LTV			91	%						91	%						91	%
Total RIF by LTV		June 30, 2014							March 31, 2014							June 30, 2013
($ in thousands)
85.00% and below		$	550,950			5.7	%		$	503,315			5.9	%		$	368,071			6.9	%
85.01% to 90.00%			3,434,553			35.4				3,074,541			36.2				2,080,074			38.9
90.01% to 95.00%			5,567,538			57.4				4,770,413			56.2				2,851,732			53.3
95.01% and above			147,508			1.5				145,593			1.7				49,040			0.9
		$	9,700,549			100.0	%		$	8,493,862			100.0	%		$	5,348,917			100.0	%
Portfolio by Loan Amortization Period
Total IIF by Loan Amortization Period		June 30, 2014							March 31, 2014							June 30, 2013
($ in thousands)
FRM 30 years and higher		$	34,103,315			86.6	%		$	29,906,738			85.9	%		$	18,901,211			83.7	%
FRM 20-25 years			1,150,105			2.9				1,105,372			3.2				917,020			4.1
FRM 15 years			2,434,151			6.2				2,383,315			6.9				1,940,110			8.6
ARM 5 years and higher			1,692,308			4.3				1,382,632			4.0				817,959			3.6
Total		$	39,379,879			100.0	%		$	34,778,057			100.0	%		$	22,576,300			100.0	%

																										Exhibit E
Essent Group Ltd. and Subsidiaries
Supplemental Information
Portfolio Vintage Data
		Original			Remaining
		Insurance			Insurance			% Remaining of			Insurance in Force as of June 30, 2014
Origination year		Written ($ in thousands)			in Force ($ in thousands)			Original Insurance			% Purchase			>90% LTV			>95% LTV			FICO < 700			FICO >= 760			% FRM
2010		$	245,898		$	91,810		37.3	%		72.4	%		35.1	%		0.0	%		3.0	%		59.6	%		98.0	%
2011			3,229,720			1,527,938		47.3			70.8			40.0			0.3			4.2			57.6			92.8
2012			11,241,161			8,832,491		78.6			68.0			47.6			0.5			5.2			56.1			96.7
2013			21,152,638			19,547,594		92.4			73.2			51.0			1.8			7.8			51.5			96.4
2014 (through June 30)			9,504,907			9,380,046		98.7			86.0			54.6			0.5			13.1			44.8			93.7
Total		$	45,374,324		$	39,379,879		86.8			75.0			50.6			1.1			8.3			51.2			95.7

						Exhibit F
Essent Group Ltd. and Subsidiaries
Supplemental Information
Portfolio Geographic Data
IIF by State
		As of June 30, 2014		As of March 31, 2014		As of June 30, 2013
CA		11.0%		11.2%		11.2%
TX		8.5		8.3		8.1
FL		5.1		4.9		4.2
NC		4.3		4.3		4.4
WA		4.0		3.7		3.4
IL		3.9		3.9		4.1
NJ		3.5		3.7		3.9
AZ		3.5		3.5		3.5
GA		3.5		3.5		3.5
CO		3.4		3.4		3.4
All Others		49.3		49.6		50.3
TOTAL		100.0%		100.0%		100.0%
RIF by State
		As of June 30, 2014		As of March 31, 2014		As of June 30, 2013
CA		10.4%		10.6%		10.6%
TX		8.3		8.1		7.9
FL		5.3		5.0		4.4
NC		4.4		4.4		4.6
WA		4.0		3.8		3.5
IL		4.0		3.9		4.2
GA		3.6		3.7		3.7
NJ		3.4		3.6		3.8
PA		3.4		3.5		3.8
AZ		3.3		3.3		3.2
All Others		49.9		50.1		50.3
TOTAL		100.0%		100.0%		100.0%

														Exhibit G
Essent Group Ltd. and Subsidiaries
Supplemental Information
Defaults, Reserve for Losses and LAE, and Claims
Rollforward of Insured Loans in Default
		Three months ended								Six months ended
		June 30,				June 30,				June 30,				June 30,
			2014				2013				2014				2013
Beginning default inventory			192				75				159				56
Plus: new defaults			151				65				318				135
Less: cures			(98	)			(46	)			(226	)			(95	)
Less: claims paid			(10	)			(4	)			(16	)			(6	)
Ending default inventory			235				90				235				90
Rollforward of Reserve for Losses and LAE
		Three months ended								Six months ended
		June 30,				June 30,				June 30,				June 30,
($ in thousands)			2014				2013				2014				2013
Reserve for losses and LAE at beginning of period		$	3,804			$	2,164			$	3,070			$	1,499
Add provision for losses and LAE occurring in:
Current year			1,166				511				2,452				1,435
Prior years			(200	)			69				(584	)			(125	)
Incurred losses during the period			966				580				1,868				1,310
Deduct payments for losses and LAE occurring in:
Current year			-				3				-				4
Prior years			264				193				432				257
Loss and LAE payments during the period			264				196				432				261
Reserve for losses and LAE at end of period		$	4,506			$	2,548			$	4,506			$	2,548
Claims
		Three months ended								Six months ended
		June 30,				June 30,				June 30,				June 30,
			2014				2013				2014				2013
Number of claims paid			10				4				16				6
Total amount paid for claims (in thousands)		$	263			$	191			$	422			$	248
Average amount paid per claim (in thousands)		$	26			$	48			$	26			$	41
Severity			54	%			81	%			62	%			86	%

																	Exhibit G, continued
Essent Group Ltd. and Subsidiaries
Supplemental Information
Defaults, Reserve for Losses and LAE, and Claims
		As of June 30, 2014
		Number of Policies in Default			Percentage of Policies in Default			Amount of Reserves			Percentage of Reserves			Defaulted RIF			Reserves as a Percentage of RIF
($ in thousands)
Missed Payments:
Three payments or less		121			51	%		$	1,266		31	%		$	6,316		20	%
Four to eleven payments		92			39				2,026		48				4,083		50
Twelve or more payments		20			9				724		18				990		73
Pending claims		2			1				105		3				103		102
TOTAL		235			100	%			4,121		100	%		$	11,492		36
IBNR									309
LAE									76
TOTAL								$	4,506
Average reserve per default:
Case								$	17.5
Total								$	19.2
Default Rate		0.13	%
		As of December 31, 2013
		Number of Policies in Default			Percentage of Policies in Default			Amount of Reserves			Percentage of Reserves			Defaulted RIF			Reserves as a Percentage of RIF
($ in thousands)
Missed Payments:
Three payments or less		88			56	%		$	841		30	%		$	3,972		21	%
Four to eleven payments		56			35				1,497		53				2,672		56
Twelve or more payments		10			6				300		11				447		67
Pending claims		5			3				169		6				166		102
TOTAL		159			100	%			2,807		100	%		$	7,257		39
IBNR									211
LAE									52
TOTAL								$	3,070
Average reserve per default:
Case								$	17.7
Total								$	19.3
Default Rate		0.11	%
		As of June 30, 2013
		Number of Policies in Default			Percentage of Policies in Default			Amount of Reserves			Percentage of Reserves			Defaulted RIF			Reserves as a Percentage of RIF
($ in thousands)
Missed Payments:
Three payments or less		49			55	%		$	740		32	%		$	2,559		29	%
Four to eleven payments		34			38				1,154		50				1,762		66
Twelve or more payments		4			4				215		9				287		75
Pending claims		3			3				206		9				196		105
TOTAL		90			100	%			2,315		100	%		$	4,804		48
IBNR									174
LAE									59
TOTAL								$	2,548
Average reserve per default:
Case								$	25.7
Total								$	28.3
Default Rate		0.09	%

													Exhibit H
Essent Group Ltd. and Subsidiaries
Supplemental Information
Investment Portfolio
Investment Portfolio by Asset Class
Asset Class		June 30, 2014								December 31, 2013
($ in thousands)		Fair Value				Percent				Fair Value			Percent
U.S. Treasury securities		$	66,719				7.9	%		$	59,187		17.8	%
U.S. Agency securities			8,165				1.0				14,839		4.5
U.S. Agency Mortgage-backed securities			60,928				7.2				22,241		6.7
Municipal debt securities			170,795				20.2				57,650		17.3
Corporate debt securities			241,874				28.5				125,593		37.8
Mortgage-backed securities			54,207				6.4				18,581		5.6
Asset-backed securities			88,710				10.5				20,385		6.1
Money market investments			154,472				18.3				14,079		4.2
Total Investments		$	845,870				100.0	%		$	332,555		100.0	%
Investment Portfolio by Credit Rating
Rating (1)		June 30, 2014								December 31, 2013
($ in thousands)		Fair Value				Percent				Fair Value			Percent
Aaa		$	436,451				51.7	%		$	147,862		44.5	%
Aa1			34,913				4.1				21,570		6.5
Aa2			41,658				4.9				15,464		4.6
Aa3			31,776				3.8				11,902		3.6
A1			67,136				7.9				26,541		8.0
A2			46,785				5.5				17,045		5.1
A3			56,170				6.6				29,886		9.0
Baa1			52,043				6.2				24,441		7.3
Baa2			68,474				8.1				30,782		9.3
Baa3			10,464				1.2				7,062		2.1
Below Baa3			-				-				-		-
Total Investments		$	845,870				100.0	%		$	332,555		100.0	%
(1) Based on ratings issued by Moody's, if available. S&P rating utilized if Moody's not available.
Portfolio by Duration and Book Yield
Effective Duration		June 30, 2014								December 31, 2013
($ in thousands)		Fair Value				Percent				Fair Value			Percent
< 1 Year		$	261,123				30.8	%		$	65,092		19.6	%
1 to < 2 Years			64,615				7.6				19,093		5.7
2 to < 3 Years			97,011				11.5				74,335		22.4
3 to < 4 Years			109,829				13.0				63,214		19.0
4 to < 5 Years			62,328				7.4				66,230		19.9
5 or more Years			250,964				29.7				44,591		13.4
Total Investments		$	845,870				100.0	%		$	332,555		100.0	%
Pre-tax investment income yield:
Three months ended June 30, 2014			1.60	%
Six months ended June 30, 2014			1.31	%
Net cash and Investments at holding company Essent Group Ltd. ($ in thousands):
As of June 30, 2014						$	170,982
As of December 31, 2013						$	246,220

					Exhibit I
Essent Group Ltd. and Subsidiaries
Supplemental Information
Insurance Company Capital
		As of
		June 30, 2014			December 31, 2013
Combined statutory capital ($ in thousands) (A)		$	599,928		$	469,424
Risk to capital ratios: (B)
Essent Guaranty, Inc.			16.1:1			16.6:1
Essent Guaranty of PA, Inc.			17.6:1			17.1:1
Combined (C)			16.2:1			16.5:1

(A) Combined statutory capital equals the sum of statutory capital of Essent Guaranty, Inc. plus Essent Guaranty of PA, Inc., after eliminating the impact of intercompany transactions. Statutory capital is computed based on accounting practices prescribed or permitted by the Pennsylvania Insurance Department.

(B) The risk to capital ratio is calculated as the ratio of net risk in force to statutory capital. Net risk in force represents total risk in force, net of reinsurance ceded and net of exposures on policies for which loss reserves have been established.

(C) The combined risk to capital ratio equals the sum of the net risk in force of Essent Guaranty, Inc. and Essent Guaranty of PA, Inc. divided by the combined statutory capital.

																						Exhibit J
Essent Group Ltd. and Subsidiaries
Supplemental Information
Historical Quarterly Data
		2014								2013
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		$	63,505			$	52,192			$	52,878			$	55,026			$	44,923			$	33,373
Net premiums earned			50,342				44,750				40,344				34,282				27,481				21,264
Other revenues			3,941				3,071				2,009				2,173				2,083				1,767
Total revenues			54,283				47,821				42,353				36,455				29,564				23,031
Losses and expenses:
Provision for losses and LAE			966				902				692				319				580				730
Other underwriting and operating expenses			23,648				23,459				22,299				18,237				15,557				14,962
Total losses and expenses			24,614				24,361				22,991				18,556				16,137				15,692
Income before income taxes			29,669				23,460				19,362				17,899				13,427				7,339
Income tax expense (benefit)			10,114				8,454				345				2,280				(10,150	)			139
Net income		$	19,555			$	15,006			$	19,017			$	15,619			$	23,577			$	7,200
Earnings per share:
Basic:
Common Shares		$	0.23			$	0.18			$	0.23				N/A				N/A				N/A
Class A common shares			N/A				N/A				N/A			$	0.36			$	0.63			$	0.23
Class B-2 common shares			N/A				N/A				N/A				0.07				0.40				-
Diluted:
Common Shares		$	0.23			$	0.18			$	0.22				N/A				N/A				N/A
Class A common shares			N/A				N/A				N/A			$	0.35			$	0.62			$	0.23
Class B-2 common shares			N/A				N/A				N/A				0.02				0.09				-
Weighted average common shares outstanding:
Basic:
Common Shares			83,276				82,864				51,741				N/A				N/A				N/A
Class A common shares			N/A				N/A				N/A				43,616				36,793				31,805
Class B-2 common shares			N/A				N/A				N/A				1,822				1,334				853
Diluted:
Common Shares			84,706				84,696				55,130				N/A				N/A				N/A
Class A common shares			N/A				N/A				N/A				43,788				36,901				31,864
Class B-2 common shares			N/A				N/A				N/A				6,054				5,994				6,009
Other Data:
($ in thousands)
Loss ratio (1)			1.9	%			2.0	%			1.7	%			0.9	%			2.1	%			3.4	%
Expense ratio (2)			47.0	%			52.4	%			55.3	%			53.2	%			56.6	%			70.4	%
Combined ratio			48.9	%			54.4	%			57.0	%			54.1	%			58.7	%			73.8	%
New insurance written		$	5,874,334			$	3,630,573			$	4,527,900			$	6,408,055			$	5,895,127			$	4,321,556
New risk written			1,477,547				907,257				1,147,560				1,584,267				1,409,905				991,011
Average premium rate (3)			0.54	%			0.54	%			0.54	%			0.54	%			0.55	%			0.55	%
Insurance in force (end of period)		$	39,379,879			$	34,778,057			$	32,028,196			$	28,198,722			$	22,576,300			$	17,430,810
Policies in force			175,773				154,451				141,417				123,737				98,818				76,455
Weighted-average coverage (4)			24.6	%			24.4	%			24.3	%			24.0	%			23.7	%			23.5	%
Annual persistency			89.1	%			87.9	%			86.1	%			83.1	%			80.1	%			80.9	%
Loans in default (count)			235				192				159				116				90				75
Percentage of loans in default			0.13	%			0.12	%			0.11	%			0.09	%			0.09	%			0.10	%

(1)		Loss ratio is calculated by dividing the provision for loss and loss adjustment expenses by net premiums earned.
(2)		Expense ratio is calculated by dividing other underwriting and operating expenses by net premiums earned.
(3)		Average premium rate is net premium earned as a percentage of average insurance in force for the period.
(4)		Weighted-average coverage is end of period risk in force divided by insurance in force.

											Exhibit K
Essent Group Ltd. and Subsidiaries
Supplemental Information
Earnings per Share
		Three months ended June 30,						Six months ended June 30,
		2014			2013			2014			2013
(In thousands, except per share amounts)
Net income		$	19,555		$	23,577		$	34,561		$	30,777
Less: Class A dividends declared			N/A			-			N/A			-
Less: Class B-2 dividends declared			N/A			-			N/A			-
Undistributed net income		$	19,555		$	23,577		$	34,561		$	30,777
Net income allocable to Common Shares		$	19,555			N/A		$	34,561			N/A
Net income allocable to Class A common shares			N/A		$	23,037			N/A		$	30,237
Net income allocable to Class B-2 common shares			N/A			540			N/A			540
Basic earnings per common share:
Common Shares		$	0.23			N/A		$	0.42			N/A
Class A common shares			N/A		$	0.63			N/A		$	0.88
Class B-2 common shares			N/A			0.40			N/A			0.49
Diluted earnings per common share:
Common Shares		$	0.23			N/A		$	0.41			N/A
Class A common shares			N/A		$	0.62			N/A		$	0.88
Class B-2 common shares			N/A			0.09			N/A			0.09
Basic weighted average common shares outstanding:
Common Shares			83,276			N/A			83,071			N/A
Class A common shares			N/A			36,793			N/A			34,313
Class B-2 common shares			N/A			1,334			N/A			1,095
Diluted weighted average common shares outstanding:
Common Shares			84,706			N/A			84,701			N/A
Class A common shares			N/A			36,901			N/A			34,408
Class B-2 common shares			N/A			5,994			N/A			6,004

Note:		Prior to the Company’s initial public offering on November 5, 2013 (“IPO”), the Company had two classes of common shares outstanding: Class A common shares and Class B-2 common shares. Upon the completion of the IPO, all of the Class A common shares and the Class B-2 common shares converted into a single class of common shares of the Company (the “Common Shares”), as more fully described in the Company’s prospectus dated October 30, 2013. Earnings Per Share (“EPS”) was calculated and presented prior to the IPO using the “two-class” method which provides that earnings and losses are allocated to each class of common shares according to the dividends declared or unpaid cumulative dividends earned, with the remaining undistributed earnings allocated according to each share’s respective participation rights.

						Exhibit 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 Outstanding Restricted Share Units is defined as total common shares outstanding plus all equity instruments (including Restricted Stock Units) issued to management and the Board of Directors and any in the money options, warrants and similar instruments.  Accumulated other comprehensive income (loss) includes unrealized gains and losses that arise from changes in the market value of the Company’s investments that are classified as available for sale. The Company does not view these unrealized gains and losses to be indicative of our fundamental operating performance.  As of June 30, 2014 and December 31, 2013, the Company does not have any options, warrants and similar instruments outstanding.
The following table sets forth the reconciliation of adjusted book value to the most comparable GAAP amount as of June 30, 2014 and December 31, 2013 in accordance with Regulation G:

(In thousands, except per share amounts)		June 30, 2014				December 31, 2013
Numerator:
Total Stockholders' Equity (Book Value)		$	767,959			$	722,141
Subtract: Accumulated Other Comprehensive Income (Loss)			3,947				(1,447	)
Adjusted Book Value		$	764,012			$	723,588
Denominator:
Total Outstanding Common Shares			86,528				86,491
Add: Outstanding Restricted Share Units			678				528
Total Outstanding Common Shares and Restricted Share Units			87,206				87,019
Adjusted Book Value per Share		$	8.76			$	8.32

Source: Essent Group Ltd.