News Details

HAMILTON, Bermuda--(BUSINESS WIRE)-- Essent Group Ltd. (NYSE: ESNT) today reported net income for the quarter ended September 30, 2016 of $59.7 million or $0.65 per diluted share, compared to $40.8 million or $0.44 per diluted share for the quarter ended September 30, 2015. As of September 30, 2016, Essent had insurance in force of $77.6 billion and consolidated stockholders’ equity of $1.3 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. “We grew insurance in force 25% year over year, which drove year over year growth in quarterly net income of 46% while also producing a 17.6% annualized return on average equity for the nine month period ended September 30, 2016.”

Financial Highlights:

• Insurance in force as of September 30, 2016 was $77.6 billion, compared to $62.1 billion as of September 30, 2015.
• New insurance written for the third quarter was $10.3 billion, compared to $7.6 billion in the third quarter of 2015.
• Net premiums earned for the third quarter were $110.8 million, compared to $83.7 million in the third quarter of 2015.
• The expense ratio for the third quarter was 29.6%, compared to 34.3% in the third quarter of 2015.
• The provision for losses and LAE for the third quarter was $5.0 million, compared to $3.4 million in the third quarter of 2015.
• The percentage of loans in default as of September 30, 2016 was 0.41%, compared to 0.29% as of September 30, 2015.
• The combined ratio for the third quarter was 34.1%, compared to 38.4% in the third quarter of 2015.
• The consolidated balance of cash and investments at September 30, 2016 was $1.6 billion, including cash and investment balances at Essent Group Ltd. of $44.6 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 14.8:1 as of September 30, 2016.
• Essent’s net income for the third quarter reflects a positive $2.0 million valuation adjustment associated with an amendment to certain GSE risk share transactions at Essent Reinsurance Ltd., which resulted in a conversion from derivative accounting to insurance accounting.
• Essent Reinsurance Ltd. reinsured a total of $5.2 million of risk in GSE risk share transactions in the third quarter of 2016.
• Essent drew $50.0 million under its revolving credit facility in the third quarter of 2016. The proceeds of the draw were contributed to Essent Reinsurance Ltd.
• On November 3, 2016, S&P Global Ratings assigned its ‘BBB+’ long-term counterparty and financial strength ratings to Essent Reinsurance Ltd.

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 93871346 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 93871346.

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 the 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, 2015 filed with the Securities and Exchange Commission on February 29, 2016. 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 September 30, 2016
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 September 30,								Nine Months Ended September 30,
(In thousands, except per share amounts)		2016				2015				2016				2015
Revenues:
Net premiums written		$	115,887			$	97,478			$	324,866			$	272,134
Increase in unearned premiums		(5,086		)		(13,784		)		(18,951		)		(35,041		)
Net premiums earned		110,801				83,694				305,915				237,093
Net investment income		6,781				5,322				19,665				14,322
Realized investment gains, net		435				548				1,489				1,765
Other income		3,237				2,172				4,816				2,634
Total revenues		121,254				91,736				331,885				255,814
Losses and expenses:
Provision for losses and LAE		4,965				3,393				11,660				7,706
Other underwriting and operating expenses		32,848				28,714				95,645				83,360
Total losses and expenses		37,813				32,107				107,305				91,066
Income before income taxes		83,441				59,629				224,580				164,748
Income tax expense		23,730				18,808				64,660				51,896
Net income		$	59,711			$	40,821			$	159,920			$	112,852
Earnings per share:
Basic		$	0.66			$	0.45			$	1.76			$	1.25
Diluted		0.65				0.44				1.74				1.23
Weighted average shares outstanding:
Basic		90,961				90,418				90,886				90,317
Diluted		92,399				91,841				92,133				91,678
Net income		$	59,711			$	40,821			$	159,920			$	112,852
Other comprehensive income (loss):
Change in unrealized (depreciation) appreciation of investments		(2,008		)		4,260				22,053				380
Total other comprehensive (loss) income		(2,008		)		4,260				22,053				380
Comprehensive income		$	57,703			$	45,081			$	181,973			$	113,232
Loss ratio		4.5		%		4.1		%		3.8		%		3.3		%
Expense ratio		29.6		%		34.3		%		31.2		%		35.2		%
Combined ratio		34.1		%		38.4		%		35.1		%		38.4		%

						Exhibit B
Essent Group Ltd. and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)
		September 30,				December 31,
(In thousands, except per share amounts)		2016				2015
Assets
Investments available for sale, at fair value
Fixed maturities		$	1,431,673			$	1,190,638
Short-term investments		150,483				85,996
Total investments		1,582,156				1,276,634
Cash		16,336				24,606
Accrued investment income		8,858				7,768
Accounts receivable		20,253				16,637
Deferred policy acquisition costs		13,013				11,529
Property and equipment (at cost, less accumulated depreciation of $45,567 in 2016 and $42,479 in 2015)		8,291				9,021
Prepaid federal income tax		163,022				119,412
Other assets		5,799				3,492
Total assets		$	1,817,728			$	1,469,099
Liabilities and Stockholders' Equity
Liabilities
Reserve for losses and LAE		$	25,731			$	17,760
Unearned premium reserve		219,996				201,045
Net deferred tax liability		140,641				87,964
Revolving credit facility borrowings		50,000				—
Securities purchased payable		45,770				14,996
Other accrued liabilities		25,375				28,093
Total liabilities		507,513				349,858
Commitments and contingencies
Stockholders' Equity
Common shares, $0.015 par value:
Authorized - 233,333; issued - 93,102 shares in 2016 and 92,650 shares in 2015		1,397				1,390
Additional paid-in capital		913,215				904,221
Accumulated other comprehensive income (loss)		21,954				(99		)
Retained earnings		373,649				213,729
Total stockholders' equity		1,310,215				1,119,241
Total liabilities and stockholders' equity		$	1,817,728			$	1,469,099
Return on average equity (1)		17.6		%		15.2		%

(1) The 2016 return on average equity is calculated by dividing annualized year-to-date 2016 net income by average equity. The 2015 return on average equity is calculated by dividing full year 2015 net income by average equity.

																						Exhibit C
Essent Group Ltd. and Subsidiaries
Supplemental Information
Historical Quarterly Data
		2016												2015
Selected Income Statement Data		September 30				June 30				March 31				December 31				September 30				June 30				March 31
(In thousands, except per share amounts)
Revenues:
Net premiums written		$	115,887			$	108,513			$	100,466			$	98,434			$	97,478			$	92,399			$	82,257
Net premiums earned		110,801				100,711				94,403				89,378				83,694				78,361				75,038
Other revenues (1)		10,453				7,454				8,063				8,098				8,042				5,706				4,973
Total revenues		121,254				108,165				102,466				97,476				91,736				84,067				80,011
Losses and expenses:
Provision for losses and LAE		4,965				2,964				3,731				4,199				3,393				2,314				1,999
Other underwriting and operating expenses		32,848				31,409				31,388				29,627				28,714				27,148				27,498
Total losses and expenses		37,813				34,373				35,119				33,826				32,107				29,462				29,497
Income before income taxes		83,441				73,792				67,347				63,650				59,629				54,605				50,514
Income tax expense		23,730				21,534				19,396				19,171				18,808				17,412				15,676
Net income		$	59,711			$	52,258			$	47,951			$	44,479			$	40,821			$	37,193			$	34,838
Earnings per share:
Basic		$	0.66			$	0.57			$	0.53			$	0.49			$	0.45			$	0.41			$	0.39
Diluted		0.65				0.57				0.52				0.48				0.44				0.41				0.38
Weighted average shares outstanding:
Basic		90,961				90,912				90,785				90,454				90,418				90,344				90,185
Diluted		92,399				92,138				91,859				91,918				91,841				91,674				91,514
Other Data:
Loss ratio (2)		4.5		%		2.9		%		4.0		%		4.7		%		4.1		%		3.0		%		2.7		%
Expense ratio (3)		29.6		%		31.2		%		33.2		%		33.1		%		34.3		%		34.6		%		36.6		%
Combined ratio		34.1		%		34.1		%		37.2		%		37.8		%		38.4		%		37.6		%		39.3		%
Return on average equity (annualized)		18.7		%		17.2		%		16.7		%		16.2		%		15.5		%		14.7		%		14.3		%

(1) Other revenues include the change in the fair value of insurance and certain reinsurance policies issued by Essent Reinsurance Ltd. in connection with Freddie Mac’s 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), $677, $974, $1,258, ($391) and ($749) in the three months ended September 30, 2016, June 30, 2016, March 31, 2016, December 31, 2015, September 30, 2015, June 30, 2015 and March 31, 2015, respectively.

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

(3) 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
		2016												2015
Other Data, continued:		September 30				June 30				March 31				December 31				September 30				June 30				March 31
($ in thousands)
U.S. Mortgage Insurance Portfolio
Flow:
New insurance written		$	10,299,161			$	8,715,171			$	5,366,675			$	5,970,656			$	7,384,654			$	7,225,401			$	5,346,820
New risk written		2,536,734				2,167,333				1,340,588				1,486,328				1,854,884				1,800,027				1,302,710
Bulk:
New insurance written		$	—			$	—			$	93,054			$	—			$	204,867			$	61,258			$	—
New risk written		—				—				8,480				—				25,760				4,062				—
Total:
Average premium rate (4)		0.58		%		0.57		%		0.56		%		0.55		%		0.55		%		0.57		%		0.58		%
New insurance written		$	10,299,161			$	8,715,171			$	5,459,729			$	5,970,656			$	7,589,521			$	7,286,659			$	5,346,820
New risk written		$	2,536,734			$	2,167,333			$	1,349,068			$	1,486,328			$	1,880,644			$	1,804,089			$	1,302,710
Insurance in force (end of period)		$	77,614,373			$	72,267,099			$	67,716,741			$	65,242,453			$	62,141,406			$	57,435,859			$	53,253,632
Risk in force (end of period)		$	19,289,387			$	17,937,364			$	16,745,819			$	16,073,174			$	15,229,575			$	13,992,701			$	12,891,462
Policies in force		350,600				328,441				308,779				297,437				282,671				261,996				242,477
Weighted average coverage (5)		24.9		%		24.8		%		24.7		%		24.6		%		24.5		%		24.4		%		24.2		%
Annual persistency		79.4		%		81.0		%		81.0		%		80.2		%		80.2		%		80.3		%		82.8		%
Loans in default (count)		1,453				1,174				1,060				1,028				814				605				505
Percentage of loans in default		0.41		%		0.36		%		0.34		%		0.35		%		0.29		%		0.23		%		0.21		%
Other Risk in Force
GSE Risk Share (6)		$	302,211			$	305,357			$	188,766			$	156,347			$	118,073			$	66,291			$	63,533
Revolving Credit Facility
Borrowings outstanding		$	50,000			$	—			N/A				N/A				N/A				N/A				N/A
Undrawn committed capacity		$	150,000			$	200,000			N/A				N/A				N/A				N/A				N/A
Interest rate at September 30, 2016:		2.52		%

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

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

(6) Essent Reinsurance Ltd. ("Essent Re") provides insurance or reinsurance in connection with Freddie Mac's Agency Credit Insurance Structure ("ACIS") program and covers the risk in force on the loans in the reference pools associated with STACR notes issued by Freddie Mac. Essent Re also provides reinsurance in connection with Fannie Mae's Credit Insurance Risk Transfer ("CIRT") program and covers the risk in force on the loans in reference pools acquired by Fannie Mae.

																							Exhibit D
Essent Group Ltd. and Subsidiaries
Supplemental Information
New Insurance Written: Flow
NIW by Credit Score
		Three Months Ended														Nine Months Ended
		September 30, 2016							September 30, 2015							September 30, 2016							September 30, 2015
($ in thousands)
>=760		$	4,883,884			47.4	%		$	3,255,765			44.1	%		$	11,185,023			45.9	%		$	8,864,296			44.4	%
740-759		1,651,059				16.0			1,197,552				16.2			3,897,484				16.0			3,257,712				16.3
720-739		1,358,205				13.2			1,016,419				13.8			3,294,793				13.5			2,859,595				14.3
700-719		1,112,745				10.8			815,726				11.0			2,646,441				10.8			2,088,333				10.5
680-699		746,419				7.3			621,126				8.4			1,921,913				7.9			1,647,611				8.3
<=679		546,849				5.3			478,066				6.5			1,435,353				5.9			1,239,328				6.2
Total		$	10,299,161			100.0	%		$	7,384,654			100.0	%		$	24,381,007			100.0	%		$	19,956,875			100.0	%
Weighted average credit score		750							747							749							748
NIW by LTV
		Three Months Ended														Nine Months Ended
		September 30, 2016							September 30, 2015							September 30, 2016							September 30, 2015
($ in thousands)
85.00% and below		$	1,506,576			14.6	%		$	803,370			10.9	%		$	3,346,647			13.7	%		$	2,506,565			12.6	%
85.01% to 90.00%		3,254,538				31.6			2,582,442				35.0			7,906,420				32.4			6,915,908				34.6
90.01% to 95.00%		4,930,162				47.9			3,826,960				51.8			11,991,142				49.2			10,105,040				50.6
95.01% and above		607,885				5.9			171,882				2.3			1,136,798				4.7			429,362				2.2
Total		$	10,299,161			100.0	%		$	7,384,654			100.0	%		$	24,381,007			100.0	%		$	19,956,875			100.0	%
Weighted average LTV		92		%					92		%					92		%					92		%
NIW by Product
		Three Months Ended														Nine Months Ended
		September 30, 2016							September 30, 2015							September 30, 2016							September 30, 2015
Single Premium policies						16.2	%						21.7	%						18.8	%						23.0	%
Monthly Premium policies						83.8							78.3							81.2							77.0
						100.0	%						100.0	%						100.0	%						100.0	%
NIW by Purchase vs. Refinance
		Three Months Ended														Nine Months Ended
		September 30, 2016							September 30, 2015							September 30, 2016							September 30, 2015
Purchase						80.7	%						85.8	%						81.5	%						78.7	%
Refinance						19.3							14.2							18.5							21.3
						100.0	%						100.0	%						100.0	%						100.0	%

													Exhibit D, continued
Essent Group Ltd. and Subsidiaries
Supplemental Information
New Insurance Written: Bulk
NIW by Credit Score
		Three Months Ended														Nine Months Ended
		September 30, 2016							September 30, 2015							September 30, 2016							September 30, 2015
($ in thousands)
>=760		$	—			0.0	%		$	153,281			74.8	%		$	45,625			49.0	%		$	201,990			75.9	%
740-759		—				—			25,159				12.3			18,154				19.5			31,425				11.8
720-739		—				—			14,941				7.3			11,475				12.3			19,891				7.5
700-719		—				—			11,486				5.6			8,220				8.8			12,819				4.8
680-699		—				—			—				—			6,453				7.0			—				—
<=679		—				—			—				—			3,127				3.4			—				—
Total		$	—			0.0	%		$	204,867			100.0	%		$	93,054			100.0	%		$	266,125			100.0	%
Weighted average credit score		N/A							773							750							774
NIW by LTV
		Three Months Ended														Nine Months Ended
		September 30, 2016							September 30, 2015							September 30, 2016							September 30, 2015
($ in thousands)
85.00% and below		$	—			0.0	%		$	2,190			1.1	%		$	755			0.8	%		$	63,448			23.8	%
85.01% to 90.00%		—				—			94,984				46.3			27,757				29.8			94,984				35.7
90.01% to 95.00%		—				—			107,693				52.6			64,542				69.4			107,693				40.5
95.01% and above		—				—			—				—			—				—			—				—
Total		$	—			0.0	%		$	204,867			100.0	%		$	93,054			100.0	%		$	266,125			100.0	%
Weighted average LTV		N/A							91		%					91		%					89		%
NIW by Product
		Three Months Ended														Nine Months Ended
		September 30, 2016							September 30, 2015							September 30, 2016							September 30, 2015
Single Premium policies						0.0	%						100.0	%						100.0	%						100.0	%
Monthly Premium policies						—							—							—							—
						0.0	%						100.0	%						100.0	%						100.0	%
NIW by Purchase vs. Refinance
		Three Months Ended														Nine Months Ended
		September 30, 2016							September 30, 2015							September 30, 2016							September 30, 2015
Purchase						0.0	%						87.9	%						100.0	%						90.1	%
Refinance						—							12.1							—							9.9
						0.0	%						100.0	%						100.0	%						100.0	%

																				Exhibit E
Essent Group Ltd. and Subsidiaries
Supplemental Information
Insurance in Force and Risk in Force
Portfolio by Credit Score
Total IIF by FICO score		September 30, 2016							June 30, 2016							September 30, 2015
($ in thousands)
>=760		$	35,510,017			45.8	%		$	33,032,120			45.7	%		$	29,034,420			46.7	%
740-759			12,924,061			16.6				12,096,199			16.7				10,548,621			17.0
720-739			11,075,479			14.3				10,374,218			14.4				8,920,180			14.4
700-719			7,985,448			10.3				7,365,368			10.2				6,146,299			9.9
680-699			6,079,109			7.8				5,696,562			7.9				4,675,449			7.5
<=679			4,040,259			5.2				3,702,632			5.1				2,816,437			4.5
Total		$	77,614,373			100.0	%		$	72,267,099			100.0	%		$	62,141,406			100.0	%
Weighted average credit score			749							749							751
Total RIF by FICO score		September 30, 2016							June 30, 2016							September 30, 2015
($ in thousands)
>=760		$	8,763,990			45.4	%		$	8,138,995			45.4	%		$	7,066,840			46.4	%
740-759			3,236,792			16.8				3,023,589			16.9				2,604,845			17.1
720-739			2,784,413			14.4				2,607,057			14.5				2,215,539			14.6
700-719			1,977,518			10.3				1,820,731			10.1				1,493,506			9.8
680-699			1,529,092			7.9				1,432,032			8.0				1,160,601			7.6
<=679			997,582			5.2				914,960			5.1				688,244			4.5
Total		$	19,289,387			100.0	%		$	17,937,364			100.0	%		$	15,229,575			100.0	%
Portfolio by LTV
Total IIF by LTV		September 30, 2016							June 30, 2016							September 30, 2015
($ in thousands)
85.00% and below		$	8,697,580			11.2	%		$	7,957,849			11.0	%		$	7,119,316			11.5	%
85.01% to 90.00%			25,916,495			33.4				24,456,328			33.8				21,345,266			34.3
90.01% to 95.00%			40,553,061			52.2				37,911,936			52.5				32,267,048			51.9
95.01% and above			2,447,237			3.2				1,940,986			2.7				1,409,776			2.3
Total		$	77,614,373			100.0	%		$	72,267,099			100.0	%		$	62,141,406			100.0	%
Weighted average LTV			92	%						92	%						92	%
Total RIF by LTV		September 30, 2016							June 30, 2016							September 30, 2015
($ in thousands)
85.00% and below		$	986,759			5.1	%		$	901,838			5.0	%		$	799,556			5.2	%
85.01% to 90.00%			6,173,686			32.0				5,824,455			32.5				5,064,459			33.3
90.01% to 95.00%			11,574,082			60.0				10,802,375			60.2				9,108,483			59.8
95.01% and above			554,860			2.9				408,696			2.3				257,077			1.7
Total		$	19,289,387			100.0	%		$	17,937,364			100.0	%		$	15,229,575			100.0	%
Portfolio by Loan Amortization Period
Total IIF by Loan Amortization Period		September 30, 2016							June 30, 2016							September 30, 2015
($ in thousands)
FRM 30 years and higher		$	70,363,929			90.7	%		$	65,269,610			90.3	%		$	55,347,061			89.1	%
FRM 20-25 years			1,808,715			2.3				1,660,361			2.3				1,477,612			2.4
FRM 15 years			2,757,521			3.5				2,653,056			3.7				2,709,749			4.3
ARM 5 years and higher			2,684,208			3.5				2,684,072			3.7				2,606,984			4.2
Total		$	77,614,373			100.0	%		$	72,267,099			100.0	%		$	62,141,406			100.0	%

										Exhibit F
Essent Group Ltd. and Subsidiaries
Supplemental Information
Other Risk in Force
($ in thousands)		September 30, 2016				June 30, 2016				September 30, 2015
GSE Risk Share (1)		$	302,211			$	305,357			$	118,073
Weighted average credit score			751				751				754
Weighted average LTV			80	%			80	%			76	%

(1) Essent Reinsurance Ltd. ("Essent Re") provides insurance or reinsurance in connection with Freddie Mac's Agency Credit Insurance Structure ("ACIS") program and covers the risk in force on the loans in the reference pools associated with STACR notes issued by Freddie Mac. Essent Re also provides reinsurance in connection with Fannie Mae's Credit Insurance Risk Transfer ("CIRT") program and covers the risk in force on the loans in reference pools acquired by Fannie Mae.

																																		Exhibit G
Essent Group Ltd. and Subsidiaries
Supplemental Information
Portfolio Vintage Data
September 30, 2016
													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		$	34,787		14.1	%		217		78.5	%		47.9	%		0.0	%		3.3	%		58.4	%		98.7	%		2.8	%		1
2011			3,229,720			647,804		20.1			3,500		76.2			43.8			0.2			5.2			56.0			95.2			3.7			45
2012			11,241,161			4,247,993		37.8			20,996		74.6			51.9			0.5			5.4			55.9			97.6			2.6			156
2013			21,152,638			10,373,377		49.0			50,378		77.9			55.6			1.9			7.7			51.0			97.2			2.6			337
2014			24,799,434			16,001,540		64.5			77,889		86.5			60.1			3.6			15.2			42.2			94.1			4.0			598
2015			26,193,656			22,509,458		85.9			99,714		81.1			54.4			2.4			14.8			43.7			96.6			3.1			274
2016 (through September 30)			24,474,061			23,799,414		97.2			97,906		81.6			54.1			4.7			13.8			45.7			97.7			1.6			42
Total		$	111,336,568		$	77,614,373		69.7			350,600		81.5			55.4			3.2			13.0			45.8			96.5			3.1			1,453
(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
		September 30, 2016				June 30, 2016			September 30, 2015
CA		9.4	%			9.5	%		9.8	%
TX		8.3				8.3			8.3
FL		6.5				6.5			6.0
WA		4.8				4.7			4.6
IL		4.1				4.1			4.1
NC		3.7				3.8			3.9
NJ		3.4				3.4			3.4
GA		3.4				3.3			3.3
MN		3.2				3.0			2.9
AZ		3.1				3.2			3.2
All Others		50.1				50.2			50.5
Total		100.0	%			100.0	%		100.0	%
RIF by State
		September 30, 2016				June 30, 2016			September 30, 2015
CA		9.0	%			9.1	%		9.3	%
TX		8.5				8.6			8.6
FL		6.8				6.7			6.2
WA		4.8				4.8			4.8
IL		4.1				4.1			4.1
NC		3.8				3.9			4.0
GA		3.5				3.5			3.5
NJ		3.4				3.4			3.3
MN		3.3				3.1			3.0
AZ		3.1				3.1			3.2
All Others		49.7				49.7			50.0
Total		100.0	%			100.0	%		100.0	%

Exhibit I
Essent Group Ltd. and Subsidiaries
Supplemental Information
Defaults, Reserve for Losses and LAE, and Claims
Rollforward of Insured Loans in Default
			Three Months Ended										Nine Months Ended
			September 30,					September 30,					September 30,					September 30,
			2016					2015					2016					2015
Beginning default inventory				1,174					605					1,028					457
Plus: new defaults				1,015					562					2,538					1,328
Less: cures				(682	)				(327	)				(1,996	)				(917	)
Less: claims paid				(54	)				(26	)				(115	)				(54	)
Less: rescissions and denials				—					—					(2	)				—
Ending default inventory				1,453					814					1,453					814
Rollforward of Reserve for Losses and LAE
			Three Months Ended										Nine Months Ended
			September 30,					September 30,					September 30,					September 30,
($ in thousands)			2016					2015					2016					2015
Reserve for losses and LAE at beginning of period			$	22,474				$	11,931				$	17,760				$	8,427
Add provision for losses and LAE occurring in:
Current year				6,819					4,277					16,387					10,356
Prior years				(1,854	)				(884	)				(4,727	)				(2,650	)
Incurred losses during the period				4,965					3,393					11,660					7,706
Deduct payments for losses and LAE occurring in:
Current year				355					122					467					262
Prior years				1,353					654					3,222					1,323
Loss and LAE payments during the period				1,708					776					3,689					1,585
Reserve for losses and LAE at end of period			$	25,731				$	14,548				$	25,731				$	14,548
Claims
			Three Months Ended										Nine Months Ended
			September 30,					September 30,					September 30,					September 30,
			2016					2015					2016					2015
Number of claims paid				54					26					115					54
Total amount paid for claims (in thousands)			$	1,668				$	750				$	3,590				$	1,530
Average amount paid per claim (in thousands)			$	31				$	29				$	31				$	28
Severity				68	%				92	%				75	%				86	%

Exhibit I, continued
Essent Group Ltd. and Subsidiaries
Supplemental Information
Defaults, Reserve for Losses and LAE, and Claims
			September 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			779				54	%			$	6,245			26	%			$	43,000			15	%
Four to eleven payments			484				33					10,207			43					25,814			40
Twelve or more payments			158				11					5,351			23					8,387			64
Pending claims			32				2					1,769			8					1,878			94
Total case reserves			1,453				100	%				23,572			100	%			$	79,079			30
IBNR												1,768
LAE												391
Total reserves for losses and LAE											$	25,731
Average reserve per default:
Case											$	16.2
Total											$	17.7
Default Rate			0.41	%
			December 31, 2015
			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			535				52	%			$	4,492			28	%			$	29,003			15	%
Four to eleven payments			383				37					8,283			51					20,825			40
Twelve or more payments			89				9					2,688			16					4,299			63
Pending claims			21				2					809			5					844			96
Total case reserves			1,028				100	%				16,272			100	%			$	54,971			30
IBNR												1,220
LAE												268
Total reserves for losses and LAE											$	17,760
Average reserve per default:
Case											$	15.8
Total											$	17.3
Default Rate			0.35	%
			September 30, 2015
			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			434				53	%			$	3,700			28	%			$	23,220			16	%
Four to eleven payments			287				35					6,570			49					15,771			42
Twelve or more payments			79				10					2,484			19					3,414			73
Pending claims			14				2					589			4					590			100
Total case reserves			814				100	%				13,343			100	%			$	42,995			31
IBNR												1,001
LAE												204
Total reserves for losses and LAE											$	14,548
Average reserve per default:
Case											$	16.4
Total											$	17.9
Default Rate			0.29	%

Exhibit J
Essent Group Ltd. and Subsidiaries
Supplemental Information
Investment Portfolio
Investment Portfolio by Asset Class
Asset Class			September 30, 2016									December 31, 2015
($ in thousands)			Fair Value					Percent				Fair Value				Percent
U.S. Treasury securities			$	192,769				12.2	%			$	177,607			13.9	%
U.S. agency securities				17,385				1.1					13,782			1.1
U.S. agency mortgage-backed securities				284,610				18.0					159,602			12.5
Municipal debt securities				332,063				21.0					279,828			21.9
Corporate debt securities				443,882				28.0					396,732			31.1
Mortgage-backed securities				48,465				3.1					55,356			4.3
Asset-backed securities				127,498				8.0					126,629			9.9
Money market funds				135,484				8.6					67,098			5.3
Total Investments			$	1,582,156				100.0	%			$	1,276,634			100.0	%
Investment Portfolio by Credit Rating
Rating (1)			September 30, 2016									December 31, 2015
($ in thousands)			Fair Value					Percent				Fair Value				Percent
Aaa			$	766,996				48.5	%			$	554,789			43.5	%
Aa1				86,306				5.5					74,322			5.8
Aa2				104,229				6.6					89,533			7.0
Aa3				78,244				4.9					68,587			5.4
A1				149,804				9.5					126,920			9.9
A2				122,374				7.7					122,745			9.6
A3				86,904				5.5					87,781			6.9
Baa1				83,698				5.3					80,137			6.3
Baa2				79,609				5.0					51,528			4.0
Baa3				21,222				1.3					19,662			1.5
Below Baa3				2,770				0.2					630			0.1
Total Investments			$	1,582,156				100.0	%			$	1,276,634			100.0	%
(1) Based on ratings issued by Moody's, if available. S&P rating utilized if Moody's not available.
Investment Portfolio by Duration and Book Yield
Effective Duration			September 30, 2016									December 31, 2015
($ in thousands)			Fair Value					Percent				Fair Value				Percent
< 1 Year			$	368,735				23.3	%			$	235,001			18.4	%
1 to < 2 Years				226,659				14.3					141,995			11.1
2 to < 3 Years				161,027				10.2					214,274			16.8
3 to < 4 Years				206,732				13.1					104,772			8.2
4 to < 5 Years				104,669				6.6					141,428			11.1
5 or more Years				514,334				32.5					439,164			34.4
Total Investments			$	1,582,156				100.0	%			$	1,276,634			100.0	%
Pre-tax investment income yield:
Three months ended September 30, 2016				2.02	%
Nine months ended September 30, 2016				2.05	%
Net cash and investments at holding company, Essent Group Ltd.:
($ in thousands)
As of September 30, 2016			$	44,592
As of December 31, 2015			$	70,601

Exhibit K
Essent Group Ltd. and Subsidiaries
Supplemental Information
Insurance Company Capital
			September 30, 2016				December 31, 2015
($ in thousands)
U.S. Mortgage Insurance Subsidiaries:
Combined statutory capital (1)			$	1,078,491			$	913,182
Combined net risk in force (2)			$	15,912,766			$	13,847,336
Risk-to-capital ratios: (3)
Essent Guaranty, Inc.				15.4:1				15.7:1
Essent Guaranty of PA, Inc.				7.5:1				9.7:1
Combined (4)				14.8:1				15.2:1
Essent Reinsurance Ltd.:
Stockholder's equity (GAAP basis)			$	343,376			$	220,178
Net risk in force (2)			$	3,653,492			$	2,364,692

(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.
(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 September 30, 2016 and December 31, 2015, the Company does not have any options, warrants and similar instruments outstanding.

The following table sets forth the reconciliation of Adjusted Book Value to the most comparable GAAP amount as of September 30, 2016 and December 31, 2015 in accordance with Regulation G:

(In thousands, except per share amounts)			September 30, 2016				December 31, 2015
Numerator:
Total Stockholders' Equity (Book Value)			$	1,310,215			$	1,119,241
Subtract: Accumulated Other Comprehensive Income (Loss)				21,954				(99	)
Adjusted Book Value			$	1,288,261			$	1,119,340
Denominator:
Total Common Shares Outstanding				93,102				92,650
Add: Restricted Share Units Outstanding				488				544
Total Common Shares and Share Units Outstanding				93,590				93,194
Adjusted Book Value per Share			$	13.76			$	12.01

View source version on businesswire.com: http://www.businesswire.com/news/home/20161104005081/en/

Source: Essent Group Ltd.