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Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2019	May 01, 2019
Document and Entity Information
Entity Registrant Name	Essent Group Ltd.
Entity Central Index Key	0001448893
Document Type	10-Q
Document Period End Date	Mar. 31, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Common Stock, Shares Outstanding		98,368,533
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Investments
Fixed maturities available for sale, at fair value (amortized cost: 2019 — $2,752,373; 2018 — $2,638,950)	$ 2,765,267	$ 2,605,666
Short-term investments available for sale, at fair value (amortized cost: 2019 — $210,821; 2018 — $154,400)	210,822	154,400
Total investments available for sale	2,976,089	2,760,066
Other invested assets	32,735	30,952
Total investments	3,008,824	2,791,018
Cash	40,489	64,946
Accrued investment income	18,176	17,627
Accounts receivable	38,194	36,881
Deferred policy acquisition costs	15,657	16,049
Property and equipment (at cost, less accumulated depreciation of $54,771 in 2019 and $53,870 in 2018)	17,940	7,629
Prepaid federal income tax	202,385	202,385
Other assets	11,580	13,436
Total assets	3,353,245	3,149,971
Liabilities
Reserve for losses and LAE	53,484	49,464
Unearned premium reserve	295,320	295,467
Net deferred tax liability	196,040	172,642
Credit facility borrowings (at carrying value, less unamortized deferred costs of $1,193 in 2019 and $1,336 in 2018)	223,807	223,664
Securities purchases payable	22,546	2,041
Other accrued liabilities	34,245	40,976
Total liabilities	825,442	784,254
Commitments and contingencies (see Note 7)
Stockholders’ Equity
Common shares, $0.015 par value: Authorized - 233,333; issued and outstanding - 98,364 shares in 2019 and 98,139 shares in 2018	1,475	1,472
Additional paid-in capital	1,106,797	1,110,800
Accumulated other comprehensive income (loss)	9,373	(28,993)
Retained earnings	1,410,158	1,282,438
Total stockholders’ equity	2,527,803	2,365,717
Total liabilities and stockholders’ equity	$ 3,353,245	$ 3,149,971

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Investment available for sale
Amortized cost	$ 2,963,194	$ 2,793,350
Property and equipment
Accumulated depreciation	54,771	53,870
Credit Facility Borrowings
Unamortized deferred costs	$ 1,193	$ 1,336
Stockholders’ Equity
Common Shares, par value (in dollars per share)	$ 0.015	$ 0.015
Common Shares, authorized (in shares)	233,333	233,333
Common Shares, issued (in shares)	98,364	98,139
Common Shares, outstanding (in shares)	98,364	98,139
Fixed maturities
Investment available for sale
Amortized cost	$ 2,752,373	$ 2,638,950
Short-term investments
Investment available for sale
Amortized cost	$ 210,821	$ 154,400

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Revenues:
Net premiums written	$ 177,644	$ 165,225
Decrease (increase) in unearned premiums	147	(12,667)
Net premiums earned	177,791	152,558
Net investment income	19,880	13,714
Realized investment gains, net	660	197
Other income	2,195	994
Total revenues	200,526	167,463
Losses and expenses:
Provision for losses and LAE	7,107	5,309
Other underwriting and operating expenses	41,030	38,124
Interest expense	2,670	2,450
Total losses and expenses	50,807	45,883
Income before income taxes	149,719	121,580
Income tax expense	21,999	10,511
Net income	$ 127,720	$ 111,069
Earnings per share:
Basic (in dollars per share)	$ 1.31	$ 1.14
Diluted (in dollars per share)	$ 1.30	$ 1.13
Weighted average shares outstanding:
Basic (in shares)	97,595	97,298
Diluted (in shares)	98,104	97,951
Net income	$ 127,720	$ 111,069
Other comprehensive income (loss):
Change in unrealized appreciation (depreciation) of investments, net of tax expense (benefit) of $7,951 in 2019 and ($5,193) in 2018	38,366	(28,750)
Total other comprehensive income (loss)	38,366	(28,750)
Comprehensive income	$ 166,086	$ 82,319

Condensed Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Statement of Comprehensive Income [Abstract]
Change in unrealized appreciation (depreciation) of investments, tax expense (benefit)	$ 7,951	$ (5,193)

Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Common Shares	Additional Paid-In Capital	Accumulated Other Comprehensive Income (Loss)	Retained Earnings	Treasury Stock
Stockholders equity, beginning of period at Dec. 31, 2017	$ 1,940,436	$ 1,476	$ 1,127,137	$ (3,252)	$ 815,075	$ 0
Changes in Stockholders' Equity
Net income	111,069				111,069
Other comprehensive (loss) income	(28,750)			(28,750)
Issuance of management incentive shares		6	(6)
Stock-based compensation expense	3,605		3,605
Treasury stock acquired	(31,070)					(31,070)
Cancellation of treasury stock		(10)	(31,060)			31,070
Stockholders equity, end of period at Mar. 31, 2018	1,995,290	1,472	1,099,676	(32,002)	926,144	0
Stockholders equity, beginning of period at Dec. 31, 2018	2,365,717	1,472	1,110,800	(28,993)	1,282,438	0
Changes in Stockholders' Equity
Net income	127,720				127,720
Other comprehensive (loss) income	38,366			38,366
Issuance of management incentive shares		6	(6)
Stock-based compensation expense	4,100		4,100
Treasury stock acquired	(8,100)					(8,100)
Cancellation of treasury stock		(3)	(8,097)			8,100
Stockholders equity, end of period at Mar. 31, 2019	$ 2,527,803	$ 1,475	$ 1,106,797	$ 9,373	$ 1,410,158	$ 0

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Operating Activities
Net income	$ 127,720	$ 111,069
Adjustments to reconcile net income to net cash provided by operating activities:
Gain on the sale of investments, net	(660)	(197)
Equity in net income of other invested assets	159	0
Depreciation and amortization	901	897
Stock-based compensation expense	4,100	3,605
Amortization of premium on investment securities	3,551	3,287
Deferred income tax provision	15,447	9,882
Change in:
Accrued investment income	(549)	(1,576)
Accounts receivable	(1,319)	(2,238)
Deferred policy acquisition costs	392	(209)
Prepaid federal income tax	0	100,863
Other assets	2,370	(4,619)
Reserve for losses and LAE	4,020	3,116
Unearned premium reserve	(147)	12,667
Other accrued liabilities	(17,303)	(14,679)
Net cash provided by operating activities	138,682	221,868
Investing Activities
Net change in short-term investments	(56,422)	(68,068)
Purchase of investments available for sale	(192,530)	(266,847)
Proceeds from maturity of investments available for sale	17,014	16,601
Proceeds from sales of investments available for sale	79,714	102,458
Purchase of other invested assets	(1,983)	0
Return of investment from other invested assets	179	0
Purchase of property and equipment	(1,011)	(508)
Net cash used in investing activities	(155,039)	(216,364)
Financing Activities
Credit facility borrowings	0	15,000
Treasury stock acquired	(8,100)	(31,070)
Net cash used in financing activities	(8,100)	(16,070)
Net decrease in cash	(24,457)	(10,566)
Cash at beginning of year	64,946	43,524
Cash at end of period	40,489	32,958
Supplemental Disclosure of Cash Flow Information
Income tax payments	(5)	0
Interest payments	$ (2,532)	$ (2,324)

Nature of Operations and Basis of Presentation	3 Months Ended
Nature of Operations and Basis of Presentation	Mar. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Operations and Basis of Presentation	Nature of Operations and Basis of Presentation Essent Group Ltd. (“Essent Group”) is a Bermuda-based holding company, which, through its wholly-owned subsidiaries, offers private mortgage insurance and reinsurance for mortgages secured by residential properties located in the United States. Mortgage insurance facilitates the sale of low down payment (generally less than 20%) mortgage loans into the secondary mortgage market, primarily to two government-sponsored enterprises (“GSEs”), Fannie Mae and Freddie Mac. The primary mortgage insurance operations are conducted through Essent Guaranty, Inc. (“Essent Guaranty”), a wholly-owned subsidiary approved as a qualified mortgage insurer by the GSEs and is licensed to write mortgage insurance in all 50 states and the District of Columbia. A significant portion of our premium revenue relates to master policies with certain lending institutions. For the three months ended March 31, 2019, one lender represented 10% of our total revenue. The loss of this customer could have a significant impact on our revenues and results of operations. Essent Guaranty reinsures 25% of GSE-eligible new insurance written to Essent Reinsurance Ltd. (“Essent Re”), an affiliated Bermuda domiciled Class 3A Insurer licensed pursuant to Section 4 of the Bermuda Insurance Act 1978 that provides insurance and reinsurance coverage of mortgage credit risk. Essent Re also provides insurance and reinsurance to Freddie Mac and Fannie Mae. In 2016, Essent Re formed Essent Agency (Bermuda) Ltd., a wholly-owned subsidiary, which provides underwriting consulting services to third-party reinsurers. In accordance with certain state law requirements, Essent Guaranty also reinsures that portion of the risk that is in excess of 25% of the mortgage balance with respect to any loan insured, after consideration of other reinsurance, to Essent Guaranty of PA, Inc. (“Essent PA”), an affiliate. In addition to offering mortgage insurance, we provide contract underwriting services on a limited basis through CUW Solutions, LLC ("CUW Solutions"), a Delaware limited liability company, that provides, among other things, mortgage contract underwriting services to lenders and mortgage insurance underwriting services to affiliates. We have prepared the condensed consolidated financial statements included herein pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). We have condensed or omitted certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) pursuant to such rules and regulations. In the opinion of management, the statements include all adjustments (which include normal recurring adjustments) required for a fair statement of financial position, results of operations and cash flows for the interim periods presented. These statements should be read in conjunction with the consolidated financial statements and notes thereto, including Note 1 and Note 2 to the consolidated financial statements, included in our Annual Report on Form 10-K for the year ended December 31, 2018, which discloses the principles of consolidation and a summary of significant accounting policies. The results of operations for the interim periods are not necessarily indicative of the results for the full year. We evaluated the need to recognize or disclose events that occurred subsequent to March 31, 2019 prior to the issuance of these condensed consolidated financial statements.

Recently Issued Accounting Standards	3 Months Ended
Recently Issued Accounting Standards	Mar. 31, 2019
Accounting Policies [Abstract]
Recently Issued Accounting Standards	Recently Issued Accounting Standards In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). This update requires organizations that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. The new guidance also requires additional disclosures about the amount, timing and uncertainty of cash flows arising from leases. The provisions of this update were effective for annual and interim periods beginning after December 15, 2018. We adopted this standard on January 1, 2019 using the modified retrospective adoption approach for our existing operating leases at January 1, 2019. As permitted by this ASU, for leases that commenced before January 1, 2019 we elected the practical expedients of not reassessing whether any expired or existing contracts are or contain leases, not reassessing the lease classification for any expired or existing leases and not reassessing any initial direct costs for existing leases. In addition, we elected the practical expedient to use hindsight in determining the lease term. We also elected to recognize rent expense for short-term leases on a straight line basis over the lease term as permitted under this ASU. The adoption of this ASU did not have a material effect on the Company's consolidated operating results or financial position. In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments (Topic 326). This update is intended to provide financial statement users with more information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The amendments in this ASU replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The new guidance requires financial assets measured at amortized cost to be presented at the net amount expected to be collected through the use of an allowance for credit losses. Credit losses relating to available-for-sale debt securities will also be recorded through an allowance rather than as a write-down of the amortized cost of the securities. The provisions of this update are effective for annual and interim periods beginning after December 15, 2019. While the Company is still evaluating this ASU, we do not expect it to impact our accounting for insurance losses and loss adjustment expenses ("LAE") as these items are not within the scope of this ASU. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. The amendments in this update modify the disclosure requirements for fair value measurements by removing, modifying, or adding certain disclosures. The provisions of this update are effective for interim and annual periods beginning after December 15, 2019, with early adoption permitted for the removed disclosures. The Company is evaluating the impact the adoption of this ASU will have on the consolidated financial statements and related disclosures. In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The amendments in this update align the requirements for capitalizing implementation costs associated with cloud computing arrangements hosted by a vendor with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The provisions of this update are effective for interim and annual periods beginning after December 15, 2019, with early adoption permitted. The Company has elected to adopt this ASU prospectively to eligible costs incurred effective January 1, 2019. The adoption of this ASU did not have a material effect on the Company’s consolidated operating results or financial position.

Investments

3 Months Ended

Mar. 31, 2019

Investments, Debt and Equity Securities [Abstract]

Investments

Investments available for sale consist of the following:



March 31, 2019 (In thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
U.S. Treasury securities	$	288,897	$	1,377	$	(3,431	)	$	286,843
U.S. agency securities	33,638		—		(451		)	33,187
U.S. agency mortgage-backed securities	675,268		5,601		(8,727		)	672,142
Municipal debt securities(1)	447,538		14,172		(328		)	461,382
Non-U.S. government securities	45,034		1,332		—			46,366
Corporate debt securities(2)	759,846		7,690		(4,135		)	763,401
Residential and commercial mortgage securities	185,393		2,579		(762		)	187,210
Asset-backed securities	316,759		488		(2,511		)	314,736
Money market funds	210,821		1		—			210,822
Total investments available for sale	$	2,963,194	$	33,240	$	(20,345	)	$	2,976,089



December 31, 2018 (In thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
U.S. Treasury securities	$	295,145	$	693	$	(5,946	)	$	289,892
U.S. agency securities	33,645		—		(648		)	32,997
U.S. agency mortgage-backed securities	649,228		2,520		(14,570		)	637,178
Municipal debt securities(1)	481,547		5,351		(3,019		)	483,879
Non-U.S. government securities	44,999		285		(283		)	45,001
Corporate debt securities(2)	738,964		1,005		(14,768		)	725,201
Residential and commercial mortgage securities	122,369		686		(1,217		)	121,838
Asset-backed securities	288,371		305		(3,679		)	284,997
Money market funds	139,082		1		—			139,083
Total investments available for sale	$	2,793,350	$	10,846	$	(44,130	)	$	2,760,066



	March 31,		December 31,
(1) The following table summarizes municipal debt securities as of :	2019		2018
Special revenue bonds	68.9	%	69.0	%
General obligation bonds	25.8		26.0
Certificate of participation bonds	3.8		3.6
Tax allocation bonds	1.0		0.9
Special tax bonds	0.5		0.5
Total	100.0	%	100.0	%



	March 31,		December 31,
(2) The following table summarizes corporate debt securities as of :	2019		2018
Financial	36.1	%	37.1	%
Consumer, non-cyclical	21.9		20.7
Communications	11.8		12.6
Consumer, cyclical	7.6		7.6
Energy	5.5		5.7
Industrial	5.0		4.7
Utilities	4.9		5.0
Technology	3.9		3.1
Basic materials	3.3		3.5
Total	100.0	%	100.0	%

The amortized cost and fair value of investments available for sale at March 31, 2019, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Because most U.S. agency mortgage-backed securities, residential and commercial mortgage securities and asset-backed securities provide for periodic payments throughout their lives, they are listed below in separate categories.



(In thousands)	Amortized Cost		Fair Value
U.S. Treasury securities:
Due in 1 year	$	9,992	$	9,932
Due after 1 but within 5 years	179,482		179,829
Due after 5 but within 10 years	99,423		97,082
Subtotal	288,897		286,843
U.S. agency securities:
Due in 1 year	—		—
Due after 1 but within 5 years	33,638		33,187
Subtotal	33,638		33,187
Municipal debt securities:
Due in 1 year	4,246		4,251
Due after 1 but within 5 years	85,262		85,920
Due after 5 but within 10 years	184,082		190,665
Due after 10 years	173,948		180,546
Subtotal	447,538		461,382
Non-U.S. government securities:
Due in 1 year	—		—
Due after 1 but within 5 years	19,804		20,275
Due after 5 but within 10 years	25,230		26,091
Subtotal	45,034		46,366
Corporate debt securities:
Due in 1 year	82,329		82,043
Due after 1 but within 5 years	421,500		422,725
Due after 5 but within 10 years	254,780		257,349
Due after 10 years	1,237		1,284
Subtotal	759,846		763,401
U.S. agency mortgage-backed securities	675,268		672,142
Residential and commercial mortgage securities	185,393		187,210
Asset-backed securities	316,759		314,736
Money market funds	210,821		210,822
Total investments available for sale	$	2,963,194	$	2,976,089

Gross gains and losses realized on the sale of investments available for sale were as follows:



	Three Months Ended March 31,
(In thousands)	2019		2018
Realized gross gains	$	671	$	791
Realized gross losses	11		594

The fair value of investments available for sale in an unrealized loss position and the related unrealized losses were as follows:



	Less than 12 months					12 months or more					Total
March 31, 2019 (In thousands)	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
U.S. Treasury securities	$	—	$	—		$	185,624	$	(3,431	)	$	185,624	$	(3,431	)
U.S. agency securities	—		—			33,187		(451		)	33,187		(451		)
U.S. agency mortgage-backed securities	34,343		(102		)	361,212		(8,625		)	395,555		(8,727		)
Municipal debt securities	539		—			47,265		(328		)	47,804		(328		)
Corporate debt securities	17,581		(46		)	371,460		(4,089		)	389,041		(4,135		)
Residential and commercial mortgage securities	43,743		(463		)	12,345		(299		)	56,088		(762		)
Asset-backed securities	191,697		(1,910		)	51,473		(601		)	243,170		(2,511		)
Total	$	287,903	$	(2,521	)	$	1,062,566	$	(17,824	)	$	1,350,469	$	(20,345	)



	Less than 12 months					12 months or more					Total
December 31, 2018 (In thousands)	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
U.S. Treasury securities	$	45,505	$	(215	)	$	165,015	$	(5,731	)	$	210,520	$	(5,946	)
U.S. agency securities	—		—			32,997		(648		)	32,997		(648		)
U.S. agency mortgage-backed securities	106,177		(1,070		)	341,579		(13,500		)	447,756		(14,570		)
Municipal debt securities	114,442		(1,176		)	104,930		(1,843		)	219,372		(3,019		)
Non-U.S. government securities	13,497		(283		)	—		—			13,497		(283		)
Corporate debt securities	381,912		(7,538		)	231,124		(7,230		)	613,036		(14,768		)
Residential and commercial mortgage securities	51,477		(650		)	13,321		(567		)	64,798		(1,217		)
Asset-backed securities	217,546		(3,165		)	29,852		(514		)	247,398		(3,679		)
Total	$	930,556	$	(14,097	)	$	918,818	$	(30,033	)	$	1,849,374	$	(44,130	)

The gross unrealized losses on these investment securities are principally associated with the changes in market interest rates as well as changes in credit spreads subsequent to their purchase. Each issuer is current on its scheduled interest and principal payments. We assess our intent to sell these securities and whether we will be required to sell these securities before the recovery of their amortized cost basis when determining whether an impairment is other-than-temporary. There were no other-than-temporary impairments in each of the three months ended March 31, 2019 and 2018.

The Company's other invested assets at March 31, 2019 and December 31, 2018 totaled $32.7 million and $31.0 million, respectively. Other invested assets are comprised of limited partnership interests which are accounted for under the equity method of accounting with changes in value reported in other income. Due to the timing of receiving financial information from these partnerships, the results are generally reported on a one month or quarter lag.

The fair value of investments deposited with insurance regulatory authorities to meet statutory requirements was $9.2 million at March 31, 2019 and $8.9 million at December 31, 2018. In connection with its insurance and reinsurance activities, Essent Re is required to maintain assets in trusts for the benefit of its contractual counterparties. The fair value of the investments on deposit in these trusts was $871.8 million at March 31, 2019 and $759.9 million at December 31, 2018. In connection with excess of loss reinsurance agreements (see Note 4), Essent Guaranty is required to maintain assets on deposit for the benefit of the reinsurers. The fair value of the assets on deposit was $6.8 million at March 31, 2019 and $3.4 million at December 31, 2018. Essent Guaranty is also required to maintain assets on deposit for the benefit of the sponsor of a fixed income investment commitment. The fair value of the assets on deposit was $6.3 million at March 31, 2019 and $6.3 million at December 31, 2018.

Net investment income consists of:



	Three Months Ended March 31,
(In thousands)	2019			2018
Fixed maturities	$	19,743		$	13,643
Short-term investments	1,058			751
Gross investment income	20,801			14,394
Investment expenses	(921		)	(680		)
Net investment income	$	19,880		$	13,714

Reinsurance

3 Months Ended

Mar. 31, 2019

Reinsurance Disclosures [Abstract]

Reinsurance

In the ordinary course of business, our insurance subsidiaries may use reinsurance to provide protection against adverse loss experience and to expand our capital sources. Reinsurance recoverables are recorded as assets, predicated on a reinsurer's ability to meet their obligations under the reinsurance agreements. If the reinsurers are unable to satisfy their obligations under the agreements, our insurance subsidiaries would be liable for such defaulted amounts.

Essent Guaranty has entered into fully collateralized reinsurance agreements with unaffiliated special purpose insurers domiciled in Bermuda ("Radnor Re Transactions"). For the reinsurance coverage periods, Essent Guaranty and its affiliates retain the first layer of the respective aggregate losses, and a Radnor Re special purpose insurer will then provide second layer coverage up to the outstanding reinsurance coverage amount. Essent Guaranty and its affiliates retain losses in excess of the outstanding reinsurance coverage amount. The reinsurance premium due to each Radnor Re special purpose insurer is calculated by multiplying the outstanding reinsurance coverage amount at the beginning of a period by a coupon rate, which is the sum of one-month LIBOR plus a risk margin, and then subtracting actual investment income collected on the assets in the related reinsurance trust during that period. The aggregate excess of loss reinsurance coverage decreases over a ten-year period as the underlying covered mortgages amortize. Essent Guaranty has rights to terminate the Radnor Re Transactions, which include an option to terminate the reinsurance agreement with Radnor Re 2018-1 Ltd. after five years from issuance and an option to terminate the reinsurance agreement with Radnor Re 2019-1 Ltd. after seven years from issuance. If the reinsurance agreement with Radnor Re 2018-1 Ltd. is not terminated after five years from issuance, the risk margin component of the reinsurance premium payable to Radnor Re 2018-1 Ltd. increases by 50%. If the reinsurance agreement with Radnor Re 2019-1 Ltd. is not terminated after seven years from issuance, there is no increase in the the risk margin component of the reinsurance premium payable to Radnor Re 2019-1 Ltd. The Radnor Re entities financed the coverage by issuing mortgage insurance-linked notes ("ILNs") in an aggregate amount equal to the initial coverage to unaffiliated investors. The notes have ten-year legal maturities and are non-recourse to any assets of Essent Guaranty or its affiliates. The proceeds of the notes were deposited into reinsurance trusts for the benefit of Essent Guaranty that will be the source of reinsurance claim payments to Essent Guaranty and principal repayments on the ILNs.

Essent Guaranty has also entered into reinsurance agreements with a panel of reinsurers that provide aggregate excess of loss coverage immediately above or pari-passu to the coverage provided by the Radnor Re Transactions. The aggregate excess of loss reinsurance coverage decreases over a ten-year period as the underlying covered mortgages amortize. Essent Guaranty has rights to terminate the reinsurance agreement, which includes an option to terminate after five years from issuance. If the reinsurance agreement is not terminated after five years from issuance, the reinsurance premium payable will increase by 50%.

The following table summarizes the respective coverages and retentions as March 31, 2019:



(In thousands)					Remaining Reinsurance in Force
Origination Year	Remaining Insurance in Force		Remaining Risk in Force		ILN			Other Reinsurance			Total		Remaining First Layer Retention
2017	$	35,526,434	$	8,869,353	$	424,412	(1)	$	165,167	(2)	$	589,579	$	224,453
2018	43,948,691		11,010,711		473,184		(3)	118,650		(4)	591,834		253,643
Total	$	79,475,125	$	19,880,064	$	897,596		$	283,817		$	1,181,413	$	478,096


(1)	Reinsurance provided by Radnor Re 2018-1 Ltd., through its issuance of ILNs, effective March 2018.


(2)	Reinsurance provided by a panel of reinsurers effective November 2018. Coverage provided immediately above the coverage provided by Radnor Re 2018-1 Ltd.


(3)	Reinsurance provided by Radnor Re 2019-1 Ltd., through its issuance of ILNs, effective February 2019.


(4)	Reinsurance provided by a panel of reinsurers effective February 2019. Coverage provided pari-passu to the coverage provided by Radnor Re 2019-1 Ltd.

The effect of reinsurance on net premiums written and earned is as follows:



	Three Months Ended March 31,
(In thousands)	2019			2018
Net premiums written:
Direct	$	183,682		$	165,519
Ceded	(6,038		)	(294		)
Net premiums written	$	177,644		$	165,225

Net premiums earned:
Direct	$	183,829		$	152,852
Ceded	(6,038		)	(294		)
Net premiums earned	$	177,791		$	152,558

The amount of monthly reinsurance premium ceded to the Radnor Re entities will fluctuate due to changes in one-month LIBOR and changes in money market rates that affect investment income collected on the assets in the reinsurance trusts. As the reinsurance premium will vary based on changes in these rates, we concluded that the Radnor Re Transactions contain embedded derivatives that will be accounted for separately like freestanding derivatives.

In connection with the Radnor Re Transactions, we concluded that the risk transfer requirements for reinsurance accounting were met as each Radnor Re entity is assuming significant insurance risk and a reasonable possibility of a significant loss. In addition, we assessed whether each Radnor Re entity was a variable interest entity ("VIE") and the appropriate accounting for the Radnor Re entities if they were VIEs. A VIE is a legal entity that does not have sufficient equity at risk to finance its activities without additional subordinated financial support or is structured such that equity investors lack the ability to make significant decisions relating to the entity’s operations through voting rights or do not substantively participate in the gains and losses of the entity. A VIE is consolidated by its primary beneficiary. The primary beneficiary is the entity that has both (1) the power to direct the activities of the VIE that most significantly affect the entity’s economic performance and (2) the obligation to absorb losses or the right to receive benefits that could be potentially significant to the VIE. While also considering these factors, the consolidation conclusion depends on the breadth of the decision-making ability and ability to influence activities that significantly affect the economic performance of the VIE. We concluded that the Radnor Re entities are VIEs. However, given that Essent Guaranty (1) does not have the unilateral power to direct the activities that most significantly affect their economic performance and (2) does not have the obligation to absorb losses or the right to receive benefits that could be potentially significant to these entities, the Radnor Re entities are not consolidated in these financial statements.

The following table presents total assets of each Radnor Re special purpose insurer as well as our maximum exposure to loss associated with each Radnor Re entity, representing the fair value of the embedded derivative included in other assets on our condensed consolidated balance sheet and the estimated net present value of investment earnings on the assets in the reinsurance trust, each as of March 31, 2019:



			Maximum Exposure to Loss
(In thousands)	Total VIE Assets		On - Balance Sheet		Off - Balance Sheet		Total
Radnor Re 2018-1 Ltd.	$	424,412	$	1,288	$	18,051	$	19,339
Radnor Re 2019-1 Ltd.	473,184		136		27,246		27,382
Total	$	897,596	$	1,424	$	45,297	$	46,721

Reserve for Losses and Loss Adjustment Expenses

3 Months Ended

Mar. 31, 2019

Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract]

Reserve for Losses and Loss Adjustment Expenses

The following table provides a reconciliation of the beginning and ending reserve balances for losses and loss adjustment expenses (“LAE”) for the three months ended March 31:



($ in thousands)	2019			2018
Reserve for losses and LAE at beginning of period	$	49,464		$	46,850
Less: Reinsurance recoverables	—			—
Net reserve for losses and LAE at beginning of period	49,464			46,850
Add provision for losses and LAE, net of reinsurance, occurring in:
Current period	11,828			9,952
Prior years	(4,721		)	(4,643		)
Net incurred losses and LAE during the current period	7,107			5,309
Deduct payments for losses and LAE, net of reinsurance, occurring in:
Current period	15			—
Prior years	3,072			2,193
Net loss and LAE payments during the current period	3,087			2,193
Net reserve for losses and LAE at end of period	53,484			49,966
Plus: Reinsurance recoverables	—			—
Reserve for losses and LAE at end of period	$	53,484		$	49,966

Loans in default at end of period	4,096			4,442

For the three months ended March 31, 2019, $3.1 million was paid for incurred claims and claim adjustment expenses attributable to insured events of prior years. There has been a $4.7 million favorable prior year development during the three months ended March 31, 2019. Reserves remaining as of March 31, 2019 for prior years are $41.7 million as a result of re-estimation of unpaid losses and loss adjustment expenses. For the three months ended March 31, 2018, $2.2 million was paid for incurred claims and claim adjustment expenses attributable to insured events of prior years. There was a $4.6 million favorable prior year development during the three months ended March 31, 2018. Reserves remaining as of March 31, 2018 for prior years were $40.0 million as a result of re-estimation of unpaid losses and loss adjustment expenses. In both periods, the favorable prior years' loss development was the result of a re-estimation of amounts ultimately to be paid on prior year defaults in the default inventory, including the impact of previously identified defaults that cured. Original estimates are increased or decreased as additional information becomes known regarding individual claims.

Debt Obligations	3 Months Ended
Debt Obligations	Mar. 31, 2019
Debt Disclosure [Abstract]
Debt Obligations	Debt Obligations Credit Facility Essent Group and its subsidiaries, Essent Irish Intermediate Holdings Limited and Essent US Holdings, Inc. (collectively, the "Borrowers"), are parties to a secured credit facility (the “Credit Facility”) with committed capacity of $500 million. The Credit Facility provides for a $275 million revolving credit facility, $225 million of term loans and a $100 million uncommitted line that may be exercised at the Borrowers’ option so long as the Borrowers receive commitments from the lenders. Borrowings under the Credit Facility may be used for working capital and general corporate purposes, including, without limitation, capital contributions to Essent’s insurance and reinsurance subsidiaries. Borrowings accrue interest at a floating rate tied to a standard short-term borrowing index, selected at the Company’s option, plus an applicable margin. A commitment fee is due quarterly on the average daily amount of the undrawn revolving commitment. The applicable margin and the commitment fee are based on the senior unsecured debt rating or long-term issuer rating of Essent Group to the extent available, or the insurer financial strength rating of Essent Guaranty. The current annual commitment fee rate is 0.35%. The obligations under the Credit Facility are secured by certain assets of the Borrowers, excluding the stock and assets of its insurance and reinsurance subsidiaries. The Credit Facility contains several covenants, including financial covenants relating to minimum net worth, capital and liquidity levels, maximum debt to capitalization level and Essent Guaranty's compliance with the PMIERs (see Note 12). The borrowings under the Credit Facility contractually mature on May 17, 2021. This description is not intended to be complete in all respects and is qualified in its entirety by the terms of the Credit Facility, including its covenants. As of March 31, 2019, the Company was in compliance with the covenants and $225 million had been borrowed under the Credit Facility with a weighted average interest rate of 4.48%. As of December 31, 2018, $225 million had been borrowed with a weighted average interest rate of 4.43%.

Commitments and Contingencies

3 Months Ended

Mar. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Obligations under Guarantees

Under the terms of CUW Solutions' contract underwriting agreements with lenders and subject to contractual limitations on liability, we agree to indemnify certain lenders against losses incurred in the event that we make an error in determining whether loans processed meet specified underwriting criteria, to the extent that such error materially restricts or impairs the salability of such loan, results in a material reduction in the value of such loan or results in the lender repurchasing the loan. The indemnification may be in the form of monetary or other remedies. We paid less than $0.1 million related to remedies for each of the three months ended March 31, 2019 and 2018. As of March 31, 2019, management believes any potential claims for indemnification related to contract underwriting services through March 31, 2019 are not material to our consolidated financial position or results of operations.

In addition to the indemnifications discussed above, in the normal course of business, we enter into agreements or other relationships with third parties pursuant to which we may be obligated under specified circumstances to indemnify the counterparties with respect to certain matters. Our contractual indemnification obligations typically arise in the context of agreements entered into by us to, among other things, purchase or sell services, finance our business and business transactions, lease real property and license intellectual property. The agreements we enter into in the normal course of business generally require us to pay certain amounts to the other party associated with claims or losses if they result from our breach of the agreement, including the inaccuracy of representations or warranties. The agreements we enter into may also contain other indemnification provisions that obligate us to pay amounts upon the occurrence of certain events, such as the negligence or willful misconduct of our employees, infringement of third-party intellectual property rights or claims that performance of the agreement constitutes a violation of law. Generally, payment by us under an indemnification provision is conditioned upon the other party making a claim, and typically we can challenge the other party’s claims. Further, our indemnification obligations may be limited in time and/or amount, and in some instances, we may have recourse against third parties for certain payments made by us under an indemnification agreement or obligation. As of March 31, 2019, contingencies triggering material indemnification obligations or payments have not occurred historically and are not expected to occur. The nature of the indemnification provisions in the various types of agreements and relationships described above are believed to be low risk and pervasive, and we consider them to have a remote risk of loss or payment. We have not recorded any provisions on the condensed consolidated balance sheets related to indemnifications.

Commitments

We lease office space for use in our operations under leases accounted for as operating leases. These leases generally include options to extend them for periods of up to ten years. Our option to extend the term of our primary office locations at the greater of existing or prevailing market rates was not recognized in our right-of-use asset and lease liability. When establishing the value of our right-of-use asset and lease liability, we determine the discount rate for the underlying leases using the prevailing market interest rate for a borrowing of the same duration of the lease plus the risk premium inherent in the borrowings under our Credit Facility. Right-of-use assets and lease liabilities are reported on the condensed consolidated balance sheet as property and equipment and other accrued liabilities, respectively.

The following table presents lease cost and other lease information as of March 31, 2019:



	Three Months Ended March 31,
($ in thousands)	2019
Lease cost:
Operating lease cost	$	591
Short-term lease cost	42
Sublease income	(32		)
Total lease cost	$	601

Other information:
Weighted average remaining lease term - operating leases	5.5 years
Weighted average discount rate - operating leases	4.1		%

The following table presents a maturity analysis of our lease liabilities as follows at March 31, 2019:



(In thousands)
2019 (April 1 through December 31)	$	1,984
2020	2,628
2021	2,657
2022	2,711
2023	2,553
2024 and thereafter	1,963
Total lease payments to be paid	14,496
Less: Future interest expense	(1,584		)
Present value of lease liabilities	$	12,912

The future minimum lease payments of non-cancelable operating leases are as follows at December 31, 2018:



Year Ended December 31 (In thousands)
2019	$	2,674
2020	2,628
2021	2,657
2022	2,711
2023	2,553
2024 and thereafter	1,963
Total minimum payments required	$	15,186

Minimum lease payments shown above have not been reduced by minimum sublease rental income of $0.1 million due in 2019 under the non-cancelable sublease.

Stock-Based Compensation

3 Months Ended

Mar. 31, 2019

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

The following table summarizes nonvested common share and nonvested common share unit activity for the three months ended March 31, 2019:



	Time and Performance- Based Share Awards				Time-Based Share Awards				Share Units
(Shares in thousands)	Number of Shares		Weighted Average Grant Date Fair Value		Number of Shares		Weighted Average Grant Date Fair Value		Number of Share Units		Weighted Average Grant Date Fair Value
Outstanding at beginning of year	482		$	29.49	207		$	32.82	449		$	34.35
Granted	141		45.32		90		40.98		115		40.98
Vested	(209	)	17.01		(123	)	27.48		(184	)	30.71
Forfeited	—		N/A		—		N/A		(6	)	35.98
Outstanding at March 31, 2019	414		$	41.18	174		$	40.83	374		$	38.14

In February 2019, certain members of senior management were granted nonvested common shares under the Essent Group Ltd. 2013 Long-Term Incentive Plan ("2013 Plan") that were subject to time-based vesting. These awards vest in three equal installments on March 1, 2020, 2021 and 2022. In March 2019, certain members of senior management were granted nonvested common shares under the 2013 Plan that were subject to performance-based vesting. The performance-based share awards vest based upon our compounded annual book value per share growth percentage during a three-year performance period that commenced on January 1, 2019 and vest on March 1, 2022. The portion of these nonvested performance-based share awards that will be earned based upon the achievement of compounded annual book value per share growth is as follows:



Performance level	Compounded Annual Book Value Per Share Growth		Nonvested Common Shares Earned
	<14	%	0	%
Threshold	14	%	10	%
	15	%	35	%
	16	%	60	%
	17	%	85	%
Maximum	≥18	%	100	%

In the event that the compounded annual book value per share growth falls between the performance levels shown above, the nonvested common shares earned will be determined on a straight-line basis between the respective levels shown.

In connection with our incentive program covering bonus awards for performance year 2018, in February 2019, time-based share units were issued to certain employees that vest in three equal installments on March 1, 2020, 2021 and 2022. In May 2019, 17,024 time-based share units were granted to non-employee directors that vest one year from the date of grant.

The total fair value on the vesting date of nonvested shares or share units that vested was $22.0 million and $74.0 million for the three months ended March 31, 2019 and 2018, respectively. As of March 31, 2019, there was $28.7 million of total unrecognized compensation expense related to nonvested shares or share units outstanding at March 31, 2019 and we expect to recognize the expense over a weighted average period of 2.3 years.

Employees have the option to tender shares to Essent Group to pay the minimum employee statutory withholding taxes associated with shares upon vesting. Common shares tendered by employees to pay employee withholding taxes totaled 189,965 in the three months ended March 31, 2019. The tendered shares were recorded at cost and included in treasury stock. All treasury stock has been cancelled as of March 31, 2019.

Compensation expense, net of forfeitures, and related tax effects recognized in connection with nonvested shares was as follows:



	Three Months Ended March 31,
(In thousands)	2019		2018
Compensation expense	$	4,100	$	3,605
Income tax benefit	765		672

Earnings per Share (EPS)

3 Months Ended

Mar. 31, 2019

Earnings Per Share [Abstract]

Earnings per Share (EPS)

The following table reconciles the net income and the weighted average common shares outstanding used in the computations of basic and diluted earnings per common share:



	Three Months Ended March 31,
(In thousands, except per share amounts)	2019		2018
Net income	$	127,720	$	111,069
Less: dividends declared	—		—
Net income available to common shareholders	$	127,720	$	111,069

Basic earnings per share	$	1.31	$	1.14
Diluted earnings per share	$	1.30	$	1.13
Basic weighted average shares outstanding	97,595		97,298
Dilutive effect of nonvested shares	509		653
Diluted weighted average shares outstanding	98,104		97,951

There were 142,642 and 166,323 antidilutive shares for the three months ended March 31, 2019 and 2018, respectively.

The nonvested performance-based share awards are considered contingently issuable for purposes of the EPS calculation. Based on the compounded annual book value per share growth as of March 31, 2019 and 2018, 100% of the dilutive performance-based share awards would be issuable under the terms of the arrangements at each date if March 31 was the end of the contingency period.

Accumulated Other Comprehensive Income (Loss)

3 Months Ended

Mar. 31, 2019

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated Other Comprehensive Income (Loss)

The following table presents the rollforward of accumulated other comprehensive income (loss) for the three months ended March 31, 2019 and 2018:



	Three Months Ended March 31,
	2019									2018
(In thousands)	Before Tax			Tax Effect			Net of Tax			Before Tax			Tax Effect			Net of Tax
Balance at beginning of period	$	(33,276	)	$	4,283		$	(28,993	)	$	(1,849	)	$	(1,403	)	$	(3,252	)
Other comprehensive income (loss):
Unrealized holding gains (losses) on investments:
Unrealized holding gains (losses) arising during the period	46,977			(8,071		)	38,906			(33,746		)	5,120			(28,626		)
Less: Reclassification adjustment for gains included in net income (1)	(660		)	120			(540		)	(197		)	73			(124		)
Net unrealized gains (losses) on investments	46,317			(7,951		)	38,366			(33,943		)	5,193			(28,750		)
Other comprehensive income (loss)	46,317			(7,951		)	38,366			(33,943		)	5,193			(28,750		)
Balance at end of period	$	13,041		$	(3,668	)	$	9,373		$	(35,792	)	$	3,790		$	(32,002	)


(1)	Included in net realized investment gains on our condensed consolidated statements of comprehensive income.

Fair Value of Financial Instruments

3 Months Ended

Mar. 31, 2019

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

We carry certain of our financial instruments at fair value. We define fair value as the current amount that would be exchanged to sell an asset or transfer a liability, other than in a forced liquidation.

Fair Value Hierarchy

ASC No. 820 specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our market assumptions. The level within the fair value hierarchy to measure the financial instrument shall be determined based on the lowest level input that is significant to the fair value measurement. The three levels of the fair value hierarchy are as follows:


•	Level 1 — Quoted prices for identical instruments in active markets accessible at the measurement date.


•	Level 2 — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and valuations in which all significant inputs are observable in active markets. Inputs are observable for substantially the full term of the financial instrument.


•	Level 3 — Valuations derived from one or more significant inputs that are unobservable.

Determination of Fair Value

When available, we generally use quoted market prices to determine fair value and classify the financial instrument in Level 1. In cases where quoted market prices for similar financial instruments are available, we utilize these inputs for valuation techniques and classify the financial instrument in Level 2. In cases where quoted market prices are not available, fair values are based on estimates using discounted cash flows, present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rates and estimates of future cash flows and we classify the financial instrument in Level 3. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument.

We used the following methods and assumptions in estimating fair values of financial instruments:

•

Investments available for sale — Investments available for sale are valued using quoted market prices in active markets, when available, and those investments are classified as Level 1 of the fair value hierarchy. Level 1 investments available for sale include investments such as U.S. Treasury securities and money market funds. Investments available for sale are classified as Level 2 of the fair value hierarchy if quoted market prices are not available and fair values are estimated using quoted prices of similar securities or recently executed transactions for the securities. U.S. agency securities, U.S. agency mortgage-backed securities, municipal debt securities, non-U.S. government securities, corporate debt securities, residential and commercial mortgage securities and asset-backed securities are classified as Level 2 investments.

We use independent pricing sources to determine the fair value of securities available for sale in Level 1 and Level 2 of the fair value hierarchy. We use one primary pricing service to provide individual security pricing based on observable market data and receive one quote per security. To ensure securities are appropriately classified in the fair value hierarchy, we review the pricing techniques and methodologies of the independent pricing service and believe that their policies adequately consider market activity, either based on specific transactions for the issue valued or based on modeling of securities with similar credit quality, duration, yield and structure that were recently traded. U.S. agency securities, U.S. agency mortgage-backed securities, municipal debt securities, non-U.S. government securities and corporate debt securities are valued by our primary vendor using recently executed transactions and proprietary models based on observable inputs, such as interest rate spreads, yield curves and credit risk. Residential and commercial mortgage securities and asset-backed securities are valued by our primary vendor using proprietary models based on observable inputs, such as interest rate spreads, prepayment speeds and credit risk. As part of our evaluation of investment prices provided by our primary pricing service, we obtained and reviewed their pricing methodologies which include a description of how each security type is evaluated and priced. We review the reasonableness of prices received from our primary pricing service by comparison to prices obtained from additional pricing sources. We have not made any adjustments to the prices obtained from our primary pricing service.

Assets and Liabilities Measured at Fair Value

All assets measured at fair value are categorized in the table below based upon the lowest level of significant input to the valuations. All fair value measurements at the reporting date were on a recurring basis.



March 31, 2019 (In thousands)	Quoted Prices in Active Markets for Identical Instruments (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Recurring fair value measurements
Financial Assets:
U.S. Treasury securities	$	286,843	$	—	$	—	$	286,843
U.S. agency securities	—		33,187		—		33,187
U.S. agency mortgage-backed securities	—		672,142		—		672,142
Municipal debt securities	—		461,382		—		461,382
Non-U.S. government securities	—		46,366		—		46,366
Corporate debt securities	—		763,401		—		763,401
Residential and commercial mortgage securities	—		187,210		—		187,210
Asset-backed securities	—		314,736		—		314,736
Money market funds	210,822		—		—		210,822
Total assets at fair value (1)	$	497,665	$	2,478,424	$	—	$	2,976,089


(1)	Does not include the fair value of an immaterial embedded derivative, which we have accounted for separately as a freestanding derivative and included in other assets in our condensed consolidated balance sheet. See Note 4 for more information.



December 31, 2018 (In thousands)	Quoted Prices in Active Markets for Identical Instruments (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Recurring fair value measurements
Financial Assets:
U.S. Treasury securities	$	289,892	$	—	$	—	$	289,892
U.S. agency securities	—		32,997		—		32,997
U.S. agency mortgage-backed securities	—		637,178		—		637,178
Municipal debt securities	—		483,879		—		483,879
Non-U.S. government securities	—		45,001		—		45,001
Corporate debt securities	—		725,201		—		725,201
Residential and commercial mortgage securities	—		121,838		—		121,838
Asset-backed securities	—		284,997		—		284,997
Money market funds	139,083		—		—		139,083
Total assets at fair value	$	428,975	$	2,331,091	$	—	$	2,760,066

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Statutory Accounting

3 Months Ended

Mar. 31, 2019

Insurance [Abstract]

Statutory Accounting

Our U.S. insurance subsidiaries prepare statutory-basis financial statements in accordance with the accounting practices prescribed or permitted by their respective state’s department of insurance, which is a comprehensive basis of accounting other than GAAP. We did not use any prescribed or permitted statutory accounting practices (individually or in the aggregate) that resulted in reported statutory surplus or capital that was significantly different from the statutory surplus or capital that would have been reported had National Association of Insurance Commissioners’ statutory accounting practices been followed. The following table presents Essent Guaranty’s and Essent PA’s statutory net income, statutory surplus and contingency reserve liability as of and for the three months ended March 31:



(In thousands)	2019		2018
Essent Guaranty
Statutory net income	$	101,989	$	93,002
Statutory surplus	905,534		807,363
Contingency reserve liability	981,207		734,944

Essent PA
Statutory net income	$	2,093	$	2,475
Statutory surplus	50,216		46,505
Contingency reserve liability	49,744		44,606

Net income determined in accordance with statutory accounting practices differs from GAAP. In 2019 and 2018, the more significant differences between net income determined under statutory accounting practices and GAAP for Essent Guaranty and Essent PA relate to policy acquisition costs and income taxes. Under statutory accounting practices, policy acquisition costs are expensed as incurred while such costs are capitalized and amortized to expense over the life of the policy under GAAP. We are eligible for a tax deduction, subject to certain limitations for amounts required by state law or regulation to be set aside in statutory contingency reserves when we purchase non-interest-bearing United States Mortgage Guaranty Tax and Loss Bonds (“T&L Bonds”) issued by the Treasury Department. Under statutory accounting practices, this deduction reduces the tax provision recorded by Essent Guaranty and Essent PA and, as a result, increases statutory net income and surplus as compared to net income and equity determined in accordance with GAAP.

At March 31, 2019 and 2018, the statutory capital of our U.S. insurance subsidiaries, which is defined as the total of statutory surplus and contingency reserves, was in excess of the statutory capital necessary to satisfy their regulatory requirements.

Effective December 31, 2015, Fannie Mae and Freddie Mac, at the direction of the Federal Housing Finance Agency, implemented new coordinated Private Mortgage Insurer Eligibility Requirements, which we refer to as the "PMIERs." The PMIERs represent the standards by which private mortgage insurers are eligible to provide mortgage insurance on loans owned or guaranteed by Fannie Mae and Freddie Mac. The PMIERs include financial strength requirements incorporating a risk-based framework that require approved insurers to have a sufficient level of liquid assets from which to pay claims. The PMIERs also include enhanced operational performance expectations and define remedial actions that apply should an approved insurer fail to comply with these requirements. In 2018, the GSEs released revised PMIERs framework ("PMIERs 2.0") which became effective on March 31, 2019. As of March 31, 2019, Essent Guaranty, our GSE-approved mortgage insurance company, was in compliance with PMIERs 2.0.

Statement of Statutory Accounting Principles No. 58, Mortgage Guaranty Insurance, requires mortgage insurers to establish a special contingency reserve for statutory accounting purposes included in total liabilities equal to 50% of earned premium for that year. During the three months ended March 31, 2019, Essent Guaranty increased its contingency reserve by $64.6 million and Essent PA increased its contingency reserve by $1.2 million. This reserve is required to be maintained for a period of 120 months to protect against the effects of adverse economic cycles. After 120 months, the reserve is released to unassigned funds. In the event an insurer’s loss ratio in any calendar year exceeds 35%, however, the insurer may, after regulatory approval, release from its contingency reserves an amount equal to the excess portion of such losses. Essent Guaranty and Essent PA did not release any amounts from their contingency reserves in the three months ended March 31, 2019 or 2018.

Under The Insurance Act 1978, as amended, and related regulations of Bermuda (the "Insurance Act"), Essent Re is required to annually prepare statutory financial statements and a statutory financial return in accordance with the financial reporting provisions of the Insurance Act, which is a basis other than GAAP. The Insurance Act also requires that Essent Re maintain minimum share capital of $1 million and must ensure that the value of its general business assets exceeds the amount of its general business liabilities by an amount greater than the prescribed minimum solvency margins and enhanced capital requirement pertaining to its general business. At December 31, 2018, all such requirements were met.

Essent Re's statutory capital and surplus was $846.4 million as of March 31, 2019 and $798.5 million as of December 31, 2018. Essent Re's statutory net income was $39.5 million and $31.2 million for the three months ended March 31, 2019 and 2018, respectively. Statutory capital and surplus as of March 31, 2019 and December 31, 2018 and statutory net income in the three months ended March 31, 2019 and 2018 determined in accordance with statutory accounting practices were not significantly different than the amounts determined under GAAP.

Recently Issued Accounting Standards (Policies)	3 Months Ended
Recently Issued Accounting Standards (Policies)	Mar. 31, 2019
Accounting Policies [Abstract]
Recently Issued Accounting Standards	Recently Issued Accounting Standards In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). This update requires organizations that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. The new guidance also requires additional disclosures about the amount, timing and uncertainty of cash flows arising from leases. The provisions of this update were effective for annual and interim periods beginning after December 15, 2018. We adopted this standard on January 1, 2019 using the modified retrospective adoption approach for our existing operating leases at January 1, 2019. As permitted by this ASU, for leases that commenced before January 1, 2019 we elected the practical expedients of not reassessing whether any expired or existing contracts are or contain leases, not reassessing the lease classification for any expired or existing leases and not reassessing any initial direct costs for existing leases. In addition, we elected the practical expedient to use hindsight in determining the lease term. We also elected to recognize rent expense for short-term leases on a straight line basis over the lease term as permitted under this ASU. The adoption of this ASU did not have a material effect on the Company's consolidated operating results or financial position. In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments (Topic 326). This update is intended to provide financial statement users with more information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The amendments in this ASU replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The new guidance requires financial assets measured at amortized cost to be presented at the net amount expected to be collected through the use of an allowance for credit losses. Credit losses relating to available-for-sale debt securities will also be recorded through an allowance rather than as a write-down of the amortized cost of the securities. The provisions of this update are effective for annual and interim periods beginning after December 15, 2019. While the Company is still evaluating this ASU, we do not expect it to impact our accounting for insurance losses and loss adjustment expenses ("LAE") as these items are not within the scope of this ASU. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. The amendments in this update modify the disclosure requirements for fair value measurements by removing, modifying, or adding certain disclosures. The provisions of this update are effective for interim and annual periods beginning after December 15, 2019, with early adoption permitted for the removed disclosures. The Company is evaluating the impact the adoption of this ASU will have on the consolidated financial statements and related disclosures. In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The amendments in this update align the requirements for capitalizing implementation costs associated with cloud computing arrangements hosted by a vendor with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The provisions of this update are effective for interim and annual periods beginning after December 15, 2019, with early adoption permitted. The Company has elected to adopt this ASU prospectively to eligible costs incurred effective January 1, 2019. The adoption of this ASU did not have a material effect on the Company’s consolidated operating results or financial position.

Investments (Tables)

3 Months Ended

Mar. 31, 2019

Investments, Debt and Equity Securities [Abstract]

Schedule of investments available for sale

Investments available for sale consist of the following:



March 31, 2019 (In thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
U.S. Treasury securities	$	288,897	$	1,377	$	(3,431	)	$	286,843
U.S. agency securities	33,638		—		(451		)	33,187
U.S. agency mortgage-backed securities	675,268		5,601		(8,727		)	672,142
Municipal debt securities(1)	447,538		14,172		(328		)	461,382
Non-U.S. government securities	45,034		1,332		—			46,366
Corporate debt securities(2)	759,846		7,690		(4,135		)	763,401
Residential and commercial mortgage securities	185,393		2,579		(762		)	187,210
Asset-backed securities	316,759		488		(2,511		)	314,736
Money market funds	210,821		1		—			210,822
Total investments available for sale	$	2,963,194	$	33,240	$	(20,345	)	$	2,976,089



December 31, 2018 (In thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
U.S. Treasury securities	$	295,145	$	693	$	(5,946	)	$	289,892
U.S. agency securities	33,645		—		(648		)	32,997
U.S. agency mortgage-backed securities	649,228		2,520		(14,570		)	637,178
Municipal debt securities(1)	481,547		5,351		(3,019		)	483,879
Non-U.S. government securities	44,999		285		(283		)	45,001
Corporate debt securities(2)	738,964		1,005		(14,768		)	725,201
Residential and commercial mortgage securities	122,369		686		(1,217		)	121,838
Asset-backed securities	288,371		305		(3,679		)	284,997
Money market funds	139,082		1		—			139,083
Total investments available for sale	$	2,793,350	$	10,846	$	(44,130	)	$	2,760,066



	March 31,		December 31,
(1) The following table summarizes municipal debt securities as of :	2019		2018
Special revenue bonds	68.9	%	69.0	%
General obligation bonds	25.8		26.0
Certificate of participation bonds	3.8		3.6
Tax allocation bonds	1.0		0.9
Special tax bonds	0.5		0.5
Total	100.0	%	100.0	%



	March 31,		December 31,
(2) The following table summarizes corporate debt securities as of :	2019		2018
Financial	36.1	%	37.1	%
Consumer, non-cyclical	21.9		20.7
Communications	11.8		12.6
Consumer, cyclical	7.6		7.6
Energy	5.5		5.7
Industrial	5.0		4.7
Utilities	4.9		5.0
Technology	3.9		3.1
Basic materials	3.3		3.5
Total	100.0	%	100.0	%

Schedule of amortized cost and fair value of investments available for sale by contractual maturity



(In thousands)	Amortized Cost		Fair Value
U.S. Treasury securities:
Due in 1 year	$	9,992	$	9,932
Due after 1 but within 5 years	179,482		179,829
Due after 5 but within 10 years	99,423		97,082
Subtotal	288,897		286,843
U.S. agency securities:
Due in 1 year	—		—
Due after 1 but within 5 years	33,638		33,187
Subtotal	33,638		33,187
Municipal debt securities:
Due in 1 year	4,246		4,251
Due after 1 but within 5 years	85,262		85,920
Due after 5 but within 10 years	184,082		190,665
Due after 10 years	173,948		180,546
Subtotal	447,538		461,382
Non-U.S. government securities:
Due in 1 year	—		—
Due after 1 but within 5 years	19,804		20,275
Due after 5 but within 10 years	25,230		26,091
Subtotal	45,034		46,366
Corporate debt securities:
Due in 1 year	82,329		82,043
Due after 1 but within 5 years	421,500		422,725
Due after 5 but within 10 years	254,780		257,349
Due after 10 years	1,237		1,284
Subtotal	759,846		763,401
U.S. agency mortgage-backed securities	675,268		672,142
Residential and commercial mortgage securities	185,393		187,210
Asset-backed securities	316,759		314,736
Money market funds	210,821		210,822
Total investments available for sale	$	2,963,194	$	2,976,089

Schedule of realized gross gains and losses on sale of investments available for sale

Gross gains and losses realized on the sale of investments available for sale were as follows:



	Three Months Ended March 31,
(In thousands)	2019		2018
Realized gross gains	$	671	$	791
Realized gross losses	11		594

Schedule of fair value of investments in an unrealized loss position and related unrealized losses

The fair value of investments available for sale in an unrealized loss position and the related unrealized losses were as follows:



	Less than 12 months					12 months or more					Total
March 31, 2019 (In thousands)	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
U.S. Treasury securities	$	—	$	—		$	185,624	$	(3,431	)	$	185,624	$	(3,431	)
U.S. agency securities	—		—			33,187		(451		)	33,187		(451		)
U.S. agency mortgage-backed securities	34,343		(102		)	361,212		(8,625		)	395,555		(8,727		)
Municipal debt securities	539		—			47,265		(328		)	47,804		(328		)
Corporate debt securities	17,581		(46		)	371,460		(4,089		)	389,041		(4,135		)
Residential and commercial mortgage securities	43,743		(463		)	12,345		(299		)	56,088		(762		)
Asset-backed securities	191,697		(1,910		)	51,473		(601		)	243,170		(2,511		)
Total	$	287,903	$	(2,521	)	$	1,062,566	$	(17,824	)	$	1,350,469	$	(20,345	)



	Less than 12 months					12 months or more					Total
December 31, 2018 (In thousands)	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
U.S. Treasury securities	$	45,505	$	(215	)	$	165,015	$	(5,731	)	$	210,520	$	(5,946	)
U.S. agency securities	—		—			32,997		(648		)	32,997		(648		)
U.S. agency mortgage-backed securities	106,177		(1,070		)	341,579		(13,500		)	447,756		(14,570		)
Municipal debt securities	114,442		(1,176		)	104,930		(1,843		)	219,372		(3,019		)
Non-U.S. government securities	13,497		(283		)	—		—			13,497		(283		)
Corporate debt securities	381,912		(7,538		)	231,124		(7,230		)	613,036		(14,768		)
Residential and commercial mortgage securities	51,477		(650		)	13,321		(567		)	64,798		(1,217		)
Asset-backed securities	217,546		(3,165		)	29,852		(514		)	247,398		(3,679		)
Total	$	930,556	$	(14,097	)	$	918,818	$	(30,033	)	$	1,849,374	$	(44,130	)

Schedule of net investment income

Net investment income consists of:



	Three Months Ended March 31,
(In thousands)	2019			2018
Fixed maturities	$	19,743		$	13,643
Short-term investments	1,058			751
Gross investment income	20,801			14,394
Investment expenses	(921		)	(680		)
Net investment income	$	19,880		$	13,714

Reinsurance (Tables)

3 Months Ended

Mar. 31, 2019

Reinsurance Disclosures [Abstract]

Schedule Of Coverages And Retentions

The following table summarizes the respective coverages and retentions as March 31, 2019:



(In thousands)					Remaining Reinsurance in Force
Origination Year	Remaining Insurance in Force		Remaining Risk in Force		ILN			Other Reinsurance			Total		Remaining First Layer Retention
2017	$	35,526,434	$	8,869,353	$	424,412	(1)	$	165,167	(2)	$	589,579	$	224,453
2018	43,948,691		11,010,711		473,184		(3)	118,650		(4)	591,834		253,643
Total	$	79,475,125	$	19,880,064	$	897,596		$	283,817		$	1,181,413	$	478,096


(1)	Reinsurance provided by Radnor Re 2018-1 Ltd., through its issuance of ILNs, effective March 2018.


(2)	Reinsurance provided by a panel of reinsurers effective November 2018. Coverage provided immediately above the coverage provided by Radnor Re 2018-1 Ltd.


(3)	Reinsurance provided by Radnor Re 2019-1 Ltd., through its issuance of ILNs, effective February 2019.


(4)	Reinsurance provided by a panel of reinsurers effective February 2019. Coverage provided pari-passu to the coverage provided by Radnor Re 2019-1 Ltd.

Effect of reinsurance

The effect of reinsurance on net premiums written and earned is as follows:



	Three Months Ended March 31,
(In thousands)	2019			2018
Net premiums written:
Direct	$	183,682		$	165,519
Ceded	(6,038		)	(294		)
Net premiums written	$	177,644		$	165,225

Net premiums earned:
Direct	$	183,829		$	152,852
Ceded	(6,038		)	(294		)
Net premiums earned	$	177,791		$	152,558

Schedule of VIE assets and maximum exposure



			Maximum Exposure to Loss
(In thousands)	Total VIE Assets		On - Balance Sheet		Off - Balance Sheet		Total
Radnor Re 2018-1 Ltd.	$	424,412	$	1,288	$	18,051	$	19,339
Radnor Re 2019-1 Ltd.	473,184		136		27,246		27,382
Total	$	897,596	$	1,424	$	45,297	$	46,721

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

+ References + Details

Reserve for Losses and Loss Adjustment Expenses (Tables)

3 Months Ended

Mar. 31, 2019

Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract]

Schedule of reconciliation of beginning and ending reserve balances for losses and loss adjustment expenses (LAE)

The following table provides a reconciliation of the beginning and ending reserve balances for losses and loss adjustment expenses (“LAE”) for the three months ended March 31:



($ in thousands)	2019			2018
Reserve for losses and LAE at beginning of period	$	49,464		$	46,850
Less: Reinsurance recoverables	—			—
Net reserve for losses and LAE at beginning of period	49,464			46,850
Add provision for losses and LAE, net of reinsurance, occurring in:
Current period	11,828			9,952
Prior years	(4,721		)	(4,643		)
Net incurred losses and LAE during the current period	7,107			5,309
Deduct payments for losses and LAE, net of reinsurance, occurring in:
Current period	15			—
Prior years	3,072			2,193
Net loss and LAE payments during the current period	3,087			2,193
Net reserve for losses and LAE at end of period	53,484			49,966
Plus: Reinsurance recoverables	—			—
Reserve for losses and LAE at end of period	$	53,484		$	49,966

Loans in default at end of period	4,096			4,442

Commitments and Contingencies (Tables)

3 Months Ended

Mar. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Schedule of lease cost and other information

The following table presents lease cost and other lease information as of March 31, 2019:



	Three Months Ended March 31,
($ in thousands)	2019
Lease cost:
Operating lease cost	$	591
Short-term lease cost	42
Sublease income	(32		)
Total lease cost	$	601

Other information:
Weighted average remaining lease term - operating leases	5.5 years
Weighted average discount rate - operating leases	4.1		%

Schedule of lease liability maturity

The following table presents a maturity analysis of our lease liabilities as follows at March 31, 2019:



(In thousands)
2019 (April 1 through December 31)	$	1,984
2020	2,628
2021	2,657
2022	2,711
2023	2,553
2024 and thereafter	1,963
Total lease payments to be paid	14,496
Less: Future interest expense	(1,584		)
Present value of lease liabilities	$	12,912

Schedule of future minimum rental payments for operating leases

The future minimum lease payments of non-cancelable operating leases are as follows at December 31, 2018:



Year Ended December 31 (In thousands)
2019	$	2,674
2020	2,628
2021	2,657
2022	2,711
2023	2,553
2024 and thereafter	1,963
Total minimum payments required	$	15,186

Stock-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2019

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Summary of nonvested Common Share and nonvested Common Share unit activity

The following table summarizes nonvested common share and nonvested common share unit activity for the three months ended March 31, 2019:



	Time and Performance- Based Share Awards				Time-Based Share Awards				Share Units
(Shares in thousands)	Number of Shares		Weighted Average Grant Date Fair Value		Number of Shares		Weighted Average Grant Date Fair Value		Number of Share Units		Weighted Average Grant Date Fair Value
Outstanding at beginning of year	482		$	29.49	207		$	32.82	449		$	34.35
Granted	141		45.32		90		40.98		115		40.98
Vested	(209	)	17.01		(123	)	27.48		(184	)	30.71
Forfeited	—		N/A		—		N/A		(6	)	35.98
Outstanding at March 31, 2019	414		$	41.18	174		$	40.83	374		$	38.14

Schedule of portion of nonvested Common Shares earned based upon achievement of compounded annual book value per share growth

The portion of these nonvested performance-based share awards that will be earned based upon the achievement of compounded annual book value per share growth is as follows:



Performance level	Compounded Annual Book Value Per Share Growth		Nonvested Common Shares Earned
	<14	%	0	%
Threshold	14	%	10	%
	15	%	35	%
	16	%	60	%
	17	%	85	%
Maximum	≥18	%	100	%

Schedule of compensation expense, net of forfeitures, and related tax effects recognized in connection with nonvested shares

Compensation expense, net of forfeitures, and related tax effects recognized in connection with nonvested shares was as follows:



	Three Months Ended March 31,
(In thousands)	2019		2018
Compensation expense	$	4,100	$	3,605
Income tax benefit	765		672

Earnings per Share (EPS) (Tables)

3 Months Ended

Mar. 31, 2019

Earnings Per Share [Abstract]

Schedule of reconciliation of net income and weighted average common shares outstanding used in computations of basic and diluted earnings per common share

The following table reconciles the net income and the weighted average common shares outstanding used in the computations of basic and diluted earnings per common share:



	Three Months Ended March 31,
(In thousands, except per share amounts)	2019		2018
Net income	$	127,720	$	111,069
Less: dividends declared	—		—
Net income available to common shareholders	$	127,720	$	111,069

Basic earnings per share	$	1.31	$	1.14
Diluted earnings per share	$	1.30	$	1.13
Basic weighted average shares outstanding	97,595		97,298
Dilutive effect of nonvested shares	509		653
Diluted weighted average shares outstanding	98,104		97,951

Accumulated Other Comprehensive Income (Loss) (Tables)

3 Months Ended

Mar. 31, 2019

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Rollforward of accumulated other comprehensive income (loss)

The following table presents the rollforward of accumulated other comprehensive income (loss) for the three months ended March 31, 2019 and 2018:



	Three Months Ended March 31,
	2019									2018
(In thousands)	Before Tax			Tax Effect			Net of Tax			Before Tax			Tax Effect			Net of Tax
Balance at beginning of period	$	(33,276	)	$	4,283		$	(28,993	)	$	(1,849	)	$	(1,403	)	$	(3,252	)
Other comprehensive income (loss):
Unrealized holding gains (losses) on investments:
Unrealized holding gains (losses) arising during the period	46,977			(8,071		)	38,906			(33,746		)	5,120			(28,626		)
Less: Reclassification adjustment for gains included in net income (1)	(660		)	120			(540		)	(197		)	73			(124		)
Net unrealized gains (losses) on investments	46,317			(7,951		)	38,366			(33,943		)	5,193			(28,750		)
Other comprehensive income (loss)	46,317			(7,951		)	38,366			(33,943		)	5,193			(28,750		)
Balance at end of period	$	13,041		$	(3,668	)	$	9,373		$	(35,792	)	$	3,790		$	(32,002	)


(1)	Included in net realized investment gains on our condensed consolidated statements of comprehensive income.

Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2019

Fair Value Disclosures [Abstract]

Schedule of assets and liabilities measured at fair vale on a recurring basis



March 31, 2019 (In thousands)	Quoted Prices in Active Markets for Identical Instruments (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Recurring fair value measurements
Financial Assets:
U.S. Treasury securities	$	286,843	$	—	$	—	$	286,843
U.S. agency securities	—		33,187		—		33,187
U.S. agency mortgage-backed securities	—		672,142		—		672,142
Municipal debt securities	—		461,382		—		461,382
Non-U.S. government securities	—		46,366		—		46,366
Corporate debt securities	—		763,401		—		763,401
Residential and commercial mortgage securities	—		187,210		—		187,210
Asset-backed securities	—		314,736		—		314,736
Money market funds	210,822		—		—		210,822
Total assets at fair value (1)	$	497,665	$	2,478,424	$	—	$	2,976,089


(1)	Does not include the fair value of an immaterial embedded derivative, which we have accounted for separately as a freestanding derivative and included in other assets in our condensed consolidated balance sheet. See Note 4 for more information.



December 31, 2018 (In thousands)	Quoted Prices in Active Markets for Identical Instruments (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Recurring fair value measurements
Financial Assets:
U.S. Treasury securities	$	289,892	$	—	$	—	$	289,892
U.S. agency securities	—		32,997		—		32,997
U.S. agency mortgage-backed securities	—		637,178		—		637,178
Municipal debt securities	—		483,879		—		483,879
Non-U.S. government securities	—		45,001		—		45,001
Corporate debt securities	—		725,201		—		725,201
Residential and commercial mortgage securities	—		121,838		—		121,838
Asset-backed securities	—		284,997		—		284,997
Money market funds	139,083		—		—		139,083
Total assets at fair value	$	428,975	$	2,331,091	$	—	$	2,760,066

Statutory Accounting (Tables)

3 Months Ended

Mar. 31, 2019

Insurance [Abstract]

Schedule of statutory net income, statutory surplus and contingency reserve liability

The following table presents Essent Guaranty’s and Essent PA’s statutory net income, statutory surplus and contingency reserve liability as of and for the three months ended March 31:



(In thousands)	2019		2018
Essent Guaranty
Statutory net income	$	101,989	$	93,002
Statutory surplus	905,534		807,363
Contingency reserve liability	981,207		734,944

Essent PA
Statutory net income	$	2,093	$	2,475
Statutory surplus	50,216		46,505
Contingency reserve liability	49,744		44,606

- Definition

Tabular disclosure of how the entity's reporting under GAAP as of the balance sheet date differs from the results based on prescribed and permitted accounting practices of the state or country of domicile in which a relevant statutory filing is made, or differences in results based on the National Association of Insurance Commissioners (NAIC) prescribed practices, or a combination thereof. Describes the accounting practices used and the related monetary effect on statutory surplus, net income, and risk-based capital. If an insurance enterprise's risk-based capital would have triggered a regulatory event had it not used a permitted practice, that fact is disclosed in the financial statements. Permitted statutory accounting practices include practices not prescribed but allowed by the domiciliary state insurance department regulatory authority.

+ References + Details

Nature of Operations and Basis of Presentation (Details)	3 Months Ended
	Mar. 31, 2019 state
Essent Guaranty
Insurance Premium Revenue Recognition
Number of states in which the entity is licensed to write mortgage insurance	50
Affiliated Entity \| Essent Re \| Quota share reinsurance
Insurance Premium Revenue Recognition
Reinsurance percentage	25.00%
Affiliated Entity \| Essent PA \| Reinsurance for mortgage insurance coverage in excess of 25%
Insurance Premium Revenue Recognition
Reinsurance for mortgage insurance coverage threshold (in excess of)	25.00%
Maximum
Insurance Premium Revenue Recognition
Residential mortgage down payment percentage for which mortgage insurance is generally required (less than)	20.00%
Total revenue \| Customer concentration \| One lender
Customer concentration
Concentration risk, percentage	10.00%

Investments (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Investments available for sale
Amortized Cost	$ 2,963,194	$ 2,793,350
Unrealized Gains	33,240	10,846
Unrealized Losses	(20,345)	(44,130)
Fair Value	2,976,089	2,760,066
U.S. Treasury securities
Investments available for sale
Amortized Cost	288,897	295,145
Unrealized Gains	1,377	693
Unrealized Losses	(3,431)	(5,946)
Fair Value	286,843	289,892
U.S. agency securities
Investments available for sale
Amortized Cost	33,638	33,645
Unrealized Gains	0	0
Unrealized Losses	(451)	(648)
Fair Value	33,187	32,997
U.S. agency mortgage-backed securities
Investments available for sale
Amortized Cost	675,268	649,228
Unrealized Gains	5,601	2,520
Unrealized Losses	(8,727)	(14,570)
Fair Value	672,142	637,178
Municipal debt securities
Investments available for sale
Amortized Cost	447,538	481,547
Unrealized Gains	14,172	5,351
Unrealized Losses	(328)	(3,019)
Fair Value	461,382	483,879
Non-U.S. government securities
Investments available for sale
Amortized Cost	45,034	44,999
Unrealized Gains	1,332	285
Unrealized Losses	0	(283)
Fair Value	46,366	45,001
Corporate debt securities
Investments available for sale
Amortized Cost	759,846	738,964
Unrealized Gains	7,690	1,005
Unrealized Losses	(4,135)	(14,768)
Fair Value	763,401	725,201
Residential and commercial mortgage securities
Investments available for sale
Amortized Cost	185,393	122,369
Unrealized Gains	2,579	686
Unrealized Losses	(762)	(1,217)
Fair Value	187,210	121,838
Asset-backed securities
Investments available for sale
Amortized Cost	316,759	288,371
Unrealized Gains	488	305
Unrealized Losses	(2,511)	(3,679)
Fair Value	314,736	284,997
Money market funds
Investments available for sale
Amortized Cost	210,821	139,082
Unrealized Gains	1	1
Unrealized Losses	0	0
Fair Value	$ 210,822	$ 139,083

Investments (Details 2)	Mar. 31, 2019	Dec. 31, 2018
Municipal debt securities
Investments available for sale
Percentage of debt securities	100.00%	100.00%
Corporate debt securities
Investments available for sale
Percentage of debt securities	100.00%	100.00%
Financial \| Corporate debt securities
Investments available for sale
Percentage of debt securities	36.10%	37.10%
Consumer, non-cyclical \| Corporate debt securities
Investments available for sale
Percentage of debt securities	21.90%	20.70%
Communications \| Corporate debt securities
Investments available for sale
Percentage of debt securities	11.80%	12.60%
Consumer, cyclical \| Corporate debt securities
Investments available for sale
Percentage of debt securities	7.60%	7.60%
Energy \| Corporate debt securities
Investments available for sale
Percentage of debt securities	5.50%	5.70%
Industrial \| Corporate debt securities
Investments available for sale
Percentage of debt securities	5.00%	4.70%
Utilities \| Corporate debt securities
Investments available for sale
Percentage of debt securities	4.90%	5.00%
Technology \| Corporate debt securities
Investments available for sale
Percentage of debt securities	3.90%	3.10%
Basic materials \| Corporate debt securities
Investments available for sale
Percentage of debt securities	3.30%	3.50%
Special revenue bonds \| Municipal debt securities
Investments available for sale
Percentage of debt securities	68.90%	69.00%
General obligation bonds \| Municipal debt securities
Investments available for sale
Percentage of debt securities	25.80%	26.00%
Certificate of participation bonds \| Municipal debt securities
Investments available for sale
Percentage of debt securities	3.80%	3.60%
Tax allocation bonds \| Municipal debt securities
Investments available for sale
Percentage of debt securities	1.00%	0.90%
Special tax bonds \| Municipal debt securities
Investments available for sale
Percentage of debt securities	0.50%	0.50%

Investments (Details 3) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Amortized Cost
Amortized Cost	$ 2,963,194	$ 2,793,350
Fair Value
Fair Value	2,976,089	2,760,066
U.S. Treasury securities
Amortized Cost
Due in 1 year	9,992
Due after 1 but within 5 years	179,482
Due after 5 but within 10 years	99,423
Subtotal	288,897
Amortized Cost	288,897	295,145
Fair Value
Due in 1 year	9,932
Due after 1 but within 5 years	179,829
Due after 5 but within 10 years	97,082
Subtotal	286,843
Fair Value	286,843	289,892
U.S. agency securities
Amortized Cost
Due in 1 year	0
Due after 1 but within 5 years	33,638
Subtotal	33,638
Amortized Cost	33,638	33,645
Fair Value
Due in 1 year	0
Due after 1 but within 5 years	33,187
Subtotal	33,187
Fair Value	33,187	32,997
Municipal debt securities
Amortized Cost
Due in 1 year	4,246
Due after 1 but within 5 years	85,262
Due after 5 but within 10 years	184,082
Due after 10 years	173,948
Subtotal	447,538
Amortized Cost	447,538	481,547
Fair Value
Due in 1 year	4,251
Due after 1 but within 5 years	85,920
Due after 5 but within 10 years	190,665
Due after 10 years	180,546
Subtotal	461,382
Fair Value	461,382	483,879
Non-U.S. government securities:
Amortized Cost
Due in 1 year	0
Due after 1 but within 5 years	19,804
Due after 5 but within 10 years	25,230
Subtotal	45,034
Amortized Cost	45,034	44,999
Fair Value
Due in 1 year	0
Due after 1 but within 5 years	20,275
Due after 5 but within 10 years	26,091
Subtotal	46,366
Fair Value	46,366	45,001
Corporate debt securities
Amortized Cost
Due in 1 year	82,329
Due after 1 but within 5 years	421,500
Due after 5 but within 10 years	254,780
Due after 10 years	1,237
Subtotal	759,846
Amortized Cost	759,846	738,964
Fair Value
Due in 1 year	82,043
Due after 1 but within 5 years	422,725
Due after 5 but within 10 years	257,349
Due after 10 years	1,284
Subtotal	763,401
Fair Value	763,401	725,201
U.S. agency mortgage-backed securities
Amortized Cost
Amortized Cost	675,268	649,228
Fair Value
Fair Value	672,142	637,178
Residential and commercial mortgage securities
Amortized Cost
Amortized Cost	185,393	122,369
Fair Value
Fair Value	187,210	121,838
Asset-backed securities
Amortized Cost
Amortized Cost	316,759	288,371
Fair Value
Fair Value	314,736	284,997
Money market funds
Amortized Cost
Amortized Cost	210,821	139,082
Fair Value
Fair Value	$ 210,822	$ 139,083

Investments (Details 4) - USD ($)	3 Months Ended
Investments (Details 4) - USD ($)	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Investments, Debt and Equity Securities [Abstract]
Realized gross gains	$ 671,000	$ 791,000
Realized gross losses	11,000	594,000
Fair Value
Less than 12 months	287,903,000		$ 930,556,000
12 months or more	1,062,566,000		918,818,000
Total	1,350,469,000		1,849,374,000
Gross Unrealized Losses
Less than 12 months	(2,521,000)		(14,097,000)
12 months or more	(17,824,000)		(30,033,000)
Total	(20,345,000)		(44,130,000)
Other Information
Other-than-temporary impairments	0	$ 0
Other invested assets	32,735,000		30,952,000
Fair value of investments deposited with insurance regulatory authorities	9,200,000		8,900,000
U.S. Treasury securities
Fair Value
Less than 12 months	0		45,505,000
12 months or more	185,624,000		165,015,000
Total	185,624,000		210,520,000
Gross Unrealized Losses
Less than 12 months	0		(215,000)
12 months or more	(3,431,000)		(5,731,000)
Total	(3,431,000)		(5,946,000)
U.S. agency securities
Fair Value
Less than 12 months	0		0
12 months or more	33,187,000		32,997,000
Total	33,187,000		32,997,000
Gross Unrealized Losses
Less than 12 months	0		0
12 months or more	(451,000)		(648,000)
Total	(451,000)		(648,000)
U.S. agency mortgage-backed securities
Fair Value
Less than 12 months	34,343,000		106,177,000
12 months or more	361,212,000		341,579,000
Total	395,555,000		447,756,000
Gross Unrealized Losses
Less than 12 months	(102,000)		(1,070,000)
12 months or more	(8,625,000)		(13,500,000)
Total	(8,727,000)		(14,570,000)
Municipal debt securities
Fair Value
Less than 12 months	539,000		114,442,000
12 months or more	47,265,000		104,930,000
Total	47,804,000		219,372,000
Gross Unrealized Losses
Less than 12 months	0		(1,176,000)
12 months or more	(328,000)		(1,843,000)
Total	(328,000)		(3,019,000)
Non-U.S. government securities:
Fair Value
Less than 12 months			13,497,000
12 months or more			0
Total			13,497,000
Gross Unrealized Losses
Less than 12 months			(283,000)
12 months or more			0
Total			(283,000)
Corporate debt securities
Fair Value
Less than 12 months	17,581,000		381,912,000
12 months or more	371,460,000		231,124,000
Total	389,041,000		613,036,000
Gross Unrealized Losses
Less than 12 months	(46,000)		(7,538,000)
12 months or more	(4,089,000)		(7,230,000)
Total	(4,135,000)		(14,768,000)
Residential and commercial mortgage securities
Fair Value
Less than 12 months	43,743,000		51,477,000
12 months or more	12,345,000		13,321,000
Total	56,088,000		64,798,000
Gross Unrealized Losses
Less than 12 months	(463,000)		(650,000)
12 months or more	(299,000)		(567,000)
Total	(762,000)		(1,217,000)
Asset-backed securities
Fair Value
Less than 12 months	191,697,000		217,546,000
12 months or more	51,473,000		29,852,000
Total	243,170,000		247,398,000
Gross Unrealized Losses
Less than 12 months	(1,910,000)		(3,165,000)
12 months or more	(601,000)		(514,000)
Total	(2,511,000)		(3,679,000)
Essent Re
Other Information
Fair value of the required investments on deposit in trusts	871,800,000		759,900,000
Essent Guaranty
Other Information
Assets on deposit for the benefit of the reinsurer	6,800,000		3,400,000
Assets on deposit for the benefit of the sponsor	$ 6,300,000		$ 6,300,000

Investments (Details 5) - USD ($) $ in Thousands	3 Months Ended
Investments (Details 5) - USD ($) $ in Thousands	Mar. 31, 2019	Mar. 31, 2018
Components of net investment income
Gross investment income	$ 20,801	$ 14,394
Investment expenses	(921)	(680)
Net investment income	19,880	13,714
Fixed maturities
Components of net investment income
Gross investment income	19,743	13,643
Short-term investments
Components of net investment income
Gross investment income	$ 1,058	$ 751

Reinsurance (Details) - Mortgage Insurance	3 Months Ended
Reinsurance (Details) - Mortgage Insurance	Mar. 31, 2019
Other Reinsurance \| Essent Guaranty
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items]
Amortization period	10 years
Option to terminate, commencement period	5 years
Ceded premium payable increase, percent	50.00%
Variable Interest Entity, Not Primary Beneficiary \| Radnor Re 2018-1 Ltd. \| Essent Guaranty
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items]
Option to terminate, commencement period	5 years
Ceded premium payable increase, percent	50.00%
Variable Interest Entity, Not Primary Beneficiary \| Radnor Re 2019-1 Ltd. \| Essent Guaranty
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items]
Option to terminate, commencement period	7 years
Variable Interest Entity, Not Primary Beneficiary \| Radnor Re \| Essent Guaranty
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items]
Amortization period	10 years
Mortgage Insurance Linked Notes \| Variable Interest Entity, Not Primary Beneficiary \| Radnor Re
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items]
Reinsurance retention policy, debt issued to cover insurance, term	10 years

Reinsurance (Details 2)	3 Months Ended
Reinsurance (Details 2)	Mar. 31, 2019 USD ($)
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items]
Remaining Insurance in Force	$ 79,475,125
Remaining Risk in Force	19,880,064
Remaining Reinsurance in Force	1,181,413
Remaining First Layer Retention	478,096
Radnor Entities
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items]
Remaining Reinsurance in Force	897,596
Other Reinsurance
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items]
Remaining Reinsurance in Force	283,817
2017
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items]
Remaining Insurance in Force	35,526,434
Remaining Risk in Force	8,869,353
Remaining Reinsurance in Force	589,579
Remaining First Layer Retention	224,453
2017 \| Radnor Re 2018-1 Ltd.
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items]
Remaining Reinsurance in Force	424,412
2017 \| Other Reinsurance
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items]
Remaining Reinsurance in Force	165,167
2018
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items]
Remaining Insurance in Force	43,948,691
Remaining Risk in Force	11,010,711
Remaining Reinsurance in Force	591,834
Remaining First Layer Retention	253,643
2018 \| Radnor Re 2019-1 Ltd.
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items]
Remaining Reinsurance in Force	473,184
2018 \| Other Reinsurance
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items]
Remaining Reinsurance in Force	$ 118,650

Reinsurance (Details 3) - USD ($) $ in Thousands	3 Months Ended
Reinsurance (Details 3) - USD ($) $ in Thousands	Mar. 31, 2019	Mar. 31, 2018
Net premiums written:
Direct	$ 183,682	$ 165,519
Ceded	(6,038)	(294)
Net premiums written	177,644	165,225
Net premiums earned:
Direct	183,829	152,852
Ceded	(6,038)	(294)
Net premiums earned	$ 177,791	$ 152,558

Reinsurance (Details 4) $ in Thousands	Mar. 31, 2019 USD ($)
Variable Interest Entity [Line Items]
Total VIE Assets	$ 897,596
Maximum Exposure to Loss, On - Balance Sheet	1,424
Maximum Exposure to Loss, Off - Balance Sheet	45,297
Maximum Exposure to Loss	46,721
Radnor Re 2018-1 Ltd. \| Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Total VIE Assets	424,412
Maximum Exposure to Loss, On - Balance Sheet	1,288
Maximum Exposure to Loss, Off - Balance Sheet	18,051
Maximum Exposure to Loss	19,339
Radnor Re 2019-1 Ltd. \| Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Total VIE Assets	473,184
Maximum Exposure to Loss, On - Balance Sheet	136
Maximum Exposure to Loss, Off - Balance Sheet	27,246
Maximum Exposure to Loss	$ 27,382

Reserve for Losses and Loss Adjustment Expenses (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019 USD ($) loan	Mar. 31, 2018 USD ($) loan	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Reconciliation of the beginning and ending reserve balances for losses and loss adjustment expenses (LAE)
Reserve for losses and LAE at beginning of period	$ 49,464	$ 46,850
Less: Reinsurance recoverables	0	0	$ 0	$ 0
Net reserve for losses and LAE at beginning of period	49,464	46,850
Add provision for losses and LAE, net of reinsurance, occurring in:
Current period	11,828	9,952
Prior years	(4,721)	(4,643)
Net incurred losses and LAE during the current period	7,107	5,309
Deduct payments for losses and LAE, net of reinsurance, occurring in:
Current period	15	0
Prior years	3,072	2,193
Net loss and LAE payments during the current period	3,087	2,193
Net reserve for losses and LAE at end of period	53,484	49,966
Plus: Reinsurance recoverables	0	0	$ 0	$ 0
Reserve for losses and LAE at end of period	$ 53,484	$ 49,966
Loans in default at end of period \| loan	4,096	4,442

Reserve for Losses and Loss Adjustment Expenses (Details 2) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract]
Incurred claims and claim adjustment expenses	$ 3,072	$ 2,193
Favorable prior year development	(4,721)	(4,643)
Reserve for losses and LAE, for prior years	$ 41,700	$ 40,000

Debt Obligations (Details) - USD ($)	3 Months Ended
Debt Obligations (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Credit Facility [Line Items]
Credit facility, maximum borrowing capacity	$ 500,000,000
Amount outstanding, gross	$ 225,000,000	$ 225,000,000
Weighted average interest during period	4.48%	4.43%
Revolving Credit Facility
Credit Facility [Line Items]
Credit facility, maximum borrowing capacity	$ 275,000,000
Credit facility, commitment fee rate	0.35%
Term Loan
Credit Facility [Line Items]
Credit facility, maximum borrowing capacity	$ 225,000,000
Uncommited Line
Credit Facility [Line Items]
Credit facility, maximum borrowing capacity	$ 100,000,000

Commitments and Contingencies (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Loss Contingencies [Line Items]
Renewal term	10 years
Future minimum sublease rental income			$ 0.1
Indemnifications related to contract underwriting services
Loss Contingencies [Line Items]
Amount paid for remedies (less than)	$ 0.1	$ 0.1

Commitments and Contingencies (Details 2) $ in Thousands	3 Months Ended
Commitments and Contingencies (Details 2) $ in Thousands	Mar. 31, 2019 USD ($)
Lease, Cost [Abstract]
Operating lease cost	$ 591
Short-term lease cost	42
Sublease income	(32)
Total lease cost	$ 601
Other information:
Weighted average remaining lease term - operating leases	5 years 6 months
Weighted average discount rate - operating leases	4.10%

Commitments and Contingencies (Details 3) $ in Thousands	Mar. 31, 2019 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2019 (April 1 through December 31)	$ 1,984
2020	2,628
2021	2,657
2022	2,711
2023	2,553
2024 and thereafter	1,963
Total lease payments to be paid	14,496
Less: Future interest expense	(1,584)
Present value of lease liabilities	$ 12,912

Commitments and Contingencies (Details 4) $ in Thousands	Dec. 31, 2018 USD ($)
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
2019	$ 2,674
2020	2,628
2021	2,657
2022	2,711
2023	2,553
2024 and thereafter	1,963
Total minimum payments required	$ 15,186

Stock-Based Compensation (Details) shares in Thousands	3 Months Ended
Stock-Based Compensation (Details) shares in Thousands	Mar. 31, 2019 $ / shares shares
Nonvested share units
Number of Shares
Outstanding at beginning of year (in shares)	449
Granted (in shares)	115
Vested (in shares)	(184)
Forfeited (in shares)	(6)
Outstanding at end of period (in shares)	374
Weighted Average Grant Date Fair Value
Outstanding at beginning of year (in dollars per share) \| $ / shares	$ 34.35
Granted (in dollars per share) \| $ / shares	40.98
Vested (in dollars per share) \| $ / shares	30.71
Forfeited (in dollars per share) \| $ / shares	35.98
Outstanding at end of period (in dollars per share) \| $ / shares	$ 38.14
Time and Performance- Based Share Awards \| Nonvested shares
Number of Shares
Outstanding at beginning of year (in shares)	482
Granted (in shares)	141
Vested (in shares)	(209)
Forfeited (in shares)	0
Outstanding at end of period (in shares)	414
Weighted Average Grant Date Fair Value
Outstanding at beginning of year (in dollars per share) \| $ / shares	$ 29.49
Granted (in dollars per share) \| $ / shares	45.32
Vested (in dollars per share) \| $ / shares	17.01
Outstanding at end of period (in dollars per share) \| $ / shares	$ 41.18
Time-Based Share Awards \| Nonvested shares
Number of Shares
Outstanding at beginning of year (in shares)	207
Granted (in shares)	90
Vested (in shares)	(123)
Forfeited (in shares)	0
Outstanding at end of period (in shares)	174
Weighted Average Grant Date Fair Value
Outstanding at beginning of year (in dollars per share) \| $ / shares	$ 32.82
Granted (in dollars per share) \| $ / shares	40.98
Vested (in dollars per share) \| $ / shares	27.48
Outstanding at end of period (in dollars per share) \| $ / shares	$ 40.83

Stock-Based Compensation (Details 2) - 2013 Plan - Nonvested shares - Certain members of senior management	1 Months Ended
	Feb. 28, 2019
Time-Based
Stock-based compensation
Performance period	3 years
Performance -Based
Stock-based compensation
Performance period	3 years
First Vesting Period \| Time-Based
Stock-based compensation
Vesting (as a percent)	33.33%
Second Vesting Period \| Time-Based
Stock-based compensation
Vesting (as a percent)	33.33%
Third Vesting Period \| Time-Based
Stock-based compensation
Vesting (as a percent)	33.33%

Stock-Based Compensation (Details 3) - Nonvested shares	3 Months Ended
Stock-Based Compensation (Details 3) - Nonvested shares	Mar. 31, 2019
Compounded Annual Book Value Per Share Growth 14%
Stock-based compensation
Compounded Annual Book Value Per Share Growth	14.00%
Nonvested Common Shares Earned	10.00%
Compounded Annual Book Value Per Share Growth 14% \| Maximum
Stock-based compensation
Compounded Annual Book Value Per Share Growth	14.00%
Nonvested Common Shares Earned	0.00%
Compounded Annual Book Value Per Share Growth 15%
Stock-based compensation
Compounded Annual Book Value Per Share Growth	15.00%
Nonvested Common Shares Earned	35.00%
Compounded Annual Book Value Per Share Growth 16%
Stock-based compensation
Compounded Annual Book Value Per Share Growth	16.00%
Nonvested Common Shares Earned	60.00%
Compounded Annual Book Value Per Share Growth 17%
Stock-based compensation
Compounded Annual Book Value Per Share Growth	17.00%
Nonvested Common Shares Earned	85.00%
Compounded Annual Book Value Per Share Growth 18% \| Minimum
Stock-based compensation
Compounded Annual Book Value Per Share Growth	18.00%
Nonvested Common Shares Earned	100.00%

Stock-Based Compensation (Details 4) - shares		1 Months Ended	3 Months Ended
Stock-Based Compensation (Details 4) - shares	May 06, 2019	Feb. 28, 2019	Mar. 31, 2019
Nonvested share units
Stock-based compensation
Shares granted (in shares)			115,000
Time-Based \| Nonvested shares
Stock-based compensation
Shares granted (in shares)			90,000
Employee \| Incentive Program Bonus Award Fiscal Year Performance \| Time-Based \| Nonvested share units
Stock-based compensation
Award vesting period		3 years
Employee \| First Vesting Period \| Incentive Program Bonus Award Fiscal Year Performance \| Time-Based \| Nonvested share units
Stock-based compensation
Vesting (as a percent)		33.33%
Employee \| Second Vesting Period \| Incentive Program Bonus Award Fiscal Year Performance \| Time-Based \| Nonvested share units
Stock-based compensation
Vesting (as a percent)		33.33%
Employee \| Third Vesting Period \| Incentive Program Bonus Award Fiscal Year Performance \| Time-Based \| Nonvested share units
Stock-based compensation
Vesting (as a percent)		33.33%
Subsequent Event \| Director \| Time-Based \| Nonvested share units
Stock-based compensation
Shares granted (in shares)	17,024
Subsequent Event \| Maximum \| Director \| Time-Based \| Nonvested share units
Stock-based compensation
Award vesting period	1 year

Stock-Based Compensation (Details 5) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Stock-based compensation
Shares tendered by employees to pay employee withholding taxes (in shares)	189,965
Compensation expense, net of forfeitures, and related tax effects recognized in connection with nonvested shares
Compensation expense	$ 4,100	$ 3,605
Income tax benefit	765	672
Nonvested shares
Stock-based compensation
Total fair value of shares vested	22,000	$ 74,000
Total unrecognized compensation expense	$ 28,700
Expected weighted average period for recognition of expense	2 years 3 months 18 days

Earnings per Share (EPS) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Earnings Per Share [Abstract]
Net income	$ 127,720	$ 111,069
Less: dividends declared	0	0
Net income	$ 127,720	$ 111,069
Basic earnings per share (in dollars per share)	$ 1.31	$ 1.14
Diluted earnings per share (in dollars per share)	$ 1.30	$ 1.13
Basic weighted average shares outstanding (in shares)	97,595	97,298
Dilutive effect of nonvested shares (in shares)	509	653
Diluted weighted average shares outstanding (in shares)	98,104	97,951

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References

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+ Details

- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

+ References

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+ Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Earnings per Share (EPS) (Details 2) - shares	3 Months Ended
Earnings per Share (EPS) (Details 2) - shares	Mar. 31, 2019	Mar. 31, 2018
Contingently issuable awards
Antidilutive nonvested shares (in shares)	142,642	166,323
Performance-based share awards
Contingently issuable awards
Percentage of award issuable if current period end were end of contingency period	100.00%	100.00%

Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Other comprehensive income (loss):
Other comprehensive income (loss), before tax	$ 46,317	$ (33,943)
Other comprehensive income (loss):
Other comprehensive (income) loss, tax effect	(7,951)	5,193
Net of Tax
Stockholders equity, beginning of period	2,365,717	1,940,436
Other comprehensive income (loss):
Total other comprehensive income (loss)	38,366	(28,750)
Stockholders equity, end of period	2,527,803	1,995,290
Accumulated Other Comprehensive Income (Loss)
Before Tax
AOCI before tax, beginning of period	(33,276)	(1,849)
Other comprehensive income (loss):
AOCI before tax, end of period	13,041	(35,792)
Tax Effect
AOCI tax effect, beginning of period	4,283	(1,403)
Other comprehensive income (loss):
AOCI tax effect, end of period	(3,668)	3,790
Net of Tax
Stockholders equity, beginning of period	(28,993)	(3,252)
Other comprehensive income (loss):
Total other comprehensive income (loss)	38,366	(28,750)
Stockholders equity, end of period	9,373	(32,002)
Accumulated Net Investment Gains (Losses) On Investments
Other comprehensive income (loss):
Unrealized holding gains (losses) arising during the period, before tax	46,977	(33,746)
Less: Reclassification adjustment for gains included in net income, before tax	(660)	(197)
Other comprehensive income (loss), before tax	46,317	(33,943)
Other comprehensive income (loss):
Unrealized holding (gains) losses arising during the period, tax effect	(8,071)	5,120
Less: Reclassification adjustment for gains included in net income, tax effect	120	73
Other comprehensive (income) loss, tax effect	(7,951)	5,193
Other comprehensive income (loss):
Unrealized holding gains (losses) arising during the period, net of tax	38,906	(28,626)
Less: Reclassification adjustment for gains included in net income, net of tax	(540)	(124)
Total other comprehensive income (loss)	$ 38,366	$ (28,750)

Statutory Accounting (Details) - USD ($) $ in Thousands	3 Months Ended
Statutory Accounting (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Essent Guaranty
Dividends Restrictions
Statutory net income	$ 101,989	$ 93,002
Statutory surplus	905,534	807,363
Contingency reserve liability	981,207	734,944
Increase in contingency reserve	64,600
Essent PA
Dividends Restrictions
Statutory net income	2,093	2,475
Statutory surplus	50,216	46,505
Contingency reserve liability	49,744	44,606
Increase in contingency reserve	1,200
Essent Re
Dividends Restrictions
Statutory net income	39,500	$ 31,200
Statutory capital and surplus	$ 846,400		$ 798,500

Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Financial Assets:
Fair Value	$ 2,976,089	$ 2,760,066
U.S. Treasury securities
Financial Assets:
Fair Value	286,843	289,892
U.S. agency securities
Financial Assets:
Fair Value	33,187	32,997
U.S. agency mortgage-backed securities
Financial Assets:
Fair Value	672,142	637,178
Municipal debt securities
Financial Assets:
Fair Value	461,382	483,879
Non-U.S. government securities:
Financial Assets:
Fair Value	46,366	45,001
Corporate debt securities
Financial Assets:
Fair Value	763,401	725,201
Residential and commercial mortgage securities
Financial Assets:
Fair Value	187,210	121,838
Asset-backed securities
Financial Assets:
Fair Value	314,736	284,997
Money market funds
Financial Assets:
Fair Value	210,822	139,083
Fair Value, Measurements, Recurring
Financial Assets:
Total assets at fair value	2,976,089	2,760,066
Fair Value, Measurements, Recurring \| U.S. Treasury securities
Financial Assets:
Fair Value	286,843	289,892
Fair Value, Measurements, Recurring \| U.S. agency securities
Financial Assets:
Fair Value	33,187	32,997
Fair Value, Measurements, Recurring \| U.S. agency mortgage-backed securities
Financial Assets:
Fair Value	672,142	637,178
Fair Value, Measurements, Recurring \| Municipal debt securities
Financial Assets:
Fair Value	461,382	483,879
Fair Value, Measurements, Recurring \| Non-U.S. government securities:
Financial Assets:
Fair Value	46,366	45,001
Fair Value, Measurements, Recurring \| Corporate debt securities
Financial Assets:
Fair Value	763,401	725,201
Fair Value, Measurements, Recurring \| Residential and commercial mortgage securities
Financial Assets:
Fair Value	187,210	121,838
Fair Value, Measurements, Recurring \| Asset-backed securities
Financial Assets:
Fair Value	314,736	284,997
Fair Value, Measurements, Recurring \| Money market funds
Financial Assets:
Fair Value	210,822	139,083
Fair Value, Measurements, Recurring \| Quoted Prices in Active Markets for Identical Instruments (Level 1)
Financial Assets:
Total assets at fair value	497,665	428,975
Fair Value, Measurements, Recurring \| Quoted Prices in Active Markets for Identical Instruments (Level 1) \| U.S. Treasury securities
Financial Assets:
Fair Value	286,843	289,892
Fair Value, Measurements, Recurring \| Quoted Prices in Active Markets for Identical Instruments (Level 1) \| U.S. agency securities
Financial Assets:
Fair Value	0	0
Fair Value, Measurements, Recurring \| Quoted Prices in Active Markets for Identical Instruments (Level 1) \| U.S. agency mortgage-backed securities
Financial Assets:
Fair Value	0	0
Fair Value, Measurements, Recurring \| Quoted Prices in Active Markets for Identical Instruments (Level 1) \| Municipal debt securities
Financial Assets:
Fair Value	0	0
Fair Value, Measurements, Recurring \| Quoted Prices in Active Markets for Identical Instruments (Level 1) \| Non-U.S. government securities:
Financial Assets:
Fair Value	0	0
Fair Value, Measurements, Recurring \| Quoted Prices in Active Markets for Identical Instruments (Level 1) \| Corporate debt securities
Financial Assets:
Fair Value	0	0
Fair Value, Measurements, Recurring \| Quoted Prices in Active Markets for Identical Instruments (Level 1) \| Residential and commercial mortgage securities
Financial Assets:
Fair Value	0	0
Fair Value, Measurements, Recurring \| Quoted Prices in Active Markets for Identical Instruments (Level 1) \| Asset-backed securities
Financial Assets:
Fair Value	0	0
Fair Value, Measurements, Recurring \| Quoted Prices in Active Markets for Identical Instruments (Level 1) \| Money market funds
Financial Assets:
Fair Value	210,822	139,083
Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2)
Financial Assets:
Total assets at fair value	2,478,424	2,331,091
Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2) \| U.S. Treasury securities
Financial Assets:
Fair Value	0	0
Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2) \| U.S. agency securities
Financial Assets:
Fair Value	33,187	32,997
Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2) \| U.S. agency mortgage-backed securities
Financial Assets:
Fair Value	672,142	637,178
Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2) \| Municipal debt securities
Financial Assets:
Fair Value	461,382	483,879
Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2) \| Non-U.S. government securities:
Financial Assets:
Fair Value	46,366	45,001
Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2) \| Corporate debt securities
Financial Assets:
Fair Value	763,401	725,201
Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2) \| Residential and commercial mortgage securities
Financial Assets:
Fair Value	187,210	121,838
Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2) \| Asset-backed securities
Financial Assets:
Fair Value	314,736	284,997
Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2) \| Money market funds
Financial Assets:
Fair Value	0	0
Fair Value, Measurements, Recurring \| Significant Unobservable Inputs (Level 3)
Financial Assets:
Total assets at fair value	0	0
Fair Value, Measurements, Recurring \| Significant Unobservable Inputs (Level 3) \| U.S. Treasury securities
Financial Assets:
Fair Value	0	0
Fair Value, Measurements, Recurring \| Significant Unobservable Inputs (Level 3) \| U.S. agency securities
Financial Assets:
Fair Value	0	0
Fair Value, Measurements, Recurring \| Significant Unobservable Inputs (Level 3) \| U.S. agency mortgage-backed securities
Financial Assets:
Fair Value	0	0
Fair Value, Measurements, Recurring \| Significant Unobservable Inputs (Level 3) \| Municipal debt securities
Financial Assets:
Fair Value	0	0
Fair Value, Measurements, Recurring \| Significant Unobservable Inputs (Level 3) \| Non-U.S. government securities:
Financial Assets:
Fair Value	0	0
Fair Value, Measurements, Recurring \| Significant Unobservable Inputs (Level 3) \| Corporate debt securities
Financial Assets:
Fair Value	0	0
Fair Value, Measurements, Recurring \| Significant Unobservable Inputs (Level 3) \| Residential and commercial mortgage securities
Financial Assets:
Fair Value	0	0
Fair Value, Measurements, Recurring \| Significant Unobservable Inputs (Level 3) \| Asset-backed securities
Financial Assets:
Fair Value	0	0
Fair Value, Measurements, Recurring \| Significant Unobservable Inputs (Level 3) \| Money market funds
Financial Assets:
Fair Value	$ 0	$ 0