0001448893-20-000081 | 10-Q | XBRL Viewer

Cover Page - shares	6 Months Ended
Cover Page - shares	Jun. 30, 2020	Aug. 03, 2020
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2020
Document Transition Report	false
Entity File Number	001-36157
Entity Registrant Name	ESSENT GROUP LTD.
Entity Incorporation, State or Country Code	D0
Entity Address, Address Line One	Clarendon House
Entity Address, Address Line Two	2 Church Street
Entity Address, City or Town	Hamilton
Entity Address, Postal Zip Code	HM11
Entity Address, Country	BM
City Area Code	441
Local Phone Number	297-9901
Title of 12(b) Security	Common Shares, $0.015 par value
Trading Symbol	ESNT
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		112,423,304
Entity Central Index Key	0001448893
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Investments
Total investments available for sale	$ 4,352,103	$ 3,350,747
Other invested assets	78,536	78,873
Total investments	4,430,639	3,429,620
Cash	72,787	71,350
Accrued investment income	18,711	18,535
Accounts receivable	39,750	40,655
Deferred policy acquisition costs	15,856	15,705
Property and equipment (at cost, less accumulated depreciation of $59,374 in 2020 and $57,639 in 2019)	15,458	17,308
Prepaid federal income tax	279,136	261,885
Other assets	27,611	18,367
Total assets	4,899,948	3,873,425
Liabilities
Reserve for losses and LAE	250,890	69,362
Unearned premium reserve	258,567	278,887
Net deferred tax liability	272,746	249,620
Credit facility borrowings (at carrying value, less unamortized deferred costs of $477 in 2020 and $763 in 2019)	424,523	224,237
Other accrued liabilities	69,893	66,474
Total liabilities	1,276,619	888,580
Commitments and contingencies (see Note 7)
Stockholders’ Equity
Common shares, $0.015 par value: Authorized - 233,333; issued and outstanding - 112,423 shares in 2020 and 98,394 shares in 2019	1,686	1,476
Additional paid-in capital	1,561,737	1,118,655
Accumulated other comprehensive income	120,398	56,187
Retained earnings	1,939,508	1,808,527
Total stockholders’ equity	3,623,329	2,984,845
Total liabilities and stockholders’ equity	4,899,948	3,873,425
Fixed maturities available for sale, at fair value (amortized cost: 2020 — $3,078,843; 2019 — $2,967,225)
Investments
Total investments available for sale	3,221,149	3,035,385
Short-term investments available for sale, at fair value (amortized cost: 2020 — $1,130,963; 2019 — $315,360)
Investments
Total investments available for sale	$ 1,130,954	$ 315,362

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Investment available for sale
Amortized cost	$ 4,209,806	$ 3,282,585
Property and equipment
Accumulated depreciation	59,374	57,639
Credit Facility Borrowings
Unamortized deferred costs	$ 477	$ 763
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)	112,423	98,394
Common shares, outstanding (in shares)	112,423	98,394
Fixed maturities
Investment available for sale
Amortized cost	$ 3,078,843	$ 2,967,225
Short-term investments
Investment available for sale
Amortized cost	$ 1,130,963	$ 315,360

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Revenues:
Net premiums written	$ 205,904	$ 188,404	$ 397,647	$ 366,048
Decrease in unearned premiums	5,567	86	20,320	233
Net premiums earned	211,471	188,490	417,967	366,281
Net investment income	19,866	20,581	40,499	40,461
Realized investment gains (losses), net	(1,269)	583	1,866	1,243
Other income	6,009	2,238	4,585	4,433
Total revenues	236,077	211,892	464,917	412,418
Losses and expenses:
Provision for losses and LAE	175,877	4,960	183,940	12,067
Other underwriting and operating expenses	38,819	41,520	80,766	82,550
Interest expense	2,566	2,679	4,698	5,349
Total losses and expenses	217,262	49,159	269,404	99,966
Income before income taxes	18,815	162,733	195,513	312,452
Income tax expense	3,435	26,328	30,610	48,327
Net income	$ 15,380	$ 136,405	$ 164,903	$ 264,125
Earnings per share:
Basic (in dollars per share)	$ 0.15	$ 1.39	$ 1.65	$ 2.70
Diluted (in dollars per share)	$ 0.15	$ 1.39	$ 1.64	$ 2.69
Weighted average shares outstanding:
Basic (in shares)	102,500	97,798	100,224	97,697
Diluted (in shares)	102,605	98,170	100,466	98,137
Net income	$ 15,380	$ 136,405	$ 164,903	$ 264,125
Other comprehensive income (loss):
Change in unrealized appreciation of investments, net of tax expense of $17,592 and $7,094 in the three months ended June 30, 2020 and 2019 and $10,613 and $15,045 in the six months ended June 30, 2020 and 2019	74,285	35,987	64,211	74,353
Total other comprehensive income	74,285	35,987	64,211	74,353
Comprehensive income	$ 89,665	$ 172,392	$ 229,114	$ 338,478

Condensed Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Statement of Comprehensive Income [Abstract]
Change in unrealized appreciation (depreciation) of investments, tax expense (benefit)	$ 17,592	$ 7,094	$ 10,613	$ 15,045

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, 2018		$ 1,472	$ 1,110,800	$ (28,993)	$ 1,282,438	$ 0
Changes in Stockholders' Equity
Issuance of management incentive shares		7	(7)
Cancellation of treasury stock		(3)	(8,222)			8,225
Stock-based compensation expense			8,322
Other comprehensive income	$ 74,353			74,353
Net income	264,125				264,125
Treasury stock acquired						(8,225)
Stockholders equity, end of period at Jun. 30, 2019	2,704,292	1,476	1,110,893	45,360	1,546,563	0
Stockholders equity, beginning of period at Mar. 31, 2019		1,475	1,106,797	9,373	1,410,158	0
Changes in Stockholders' Equity
Issuance of management incentive shares		1	(1)
Cancellation of treasury stock			(125)			125
Stock-based compensation expense			4,222
Other comprehensive income	35,987			35,987
Net income	136,405				136,405
Treasury stock acquired						(125)
Stockholders equity, end of period at Jun. 30, 2019	2,704,292	1,476	1,110,893	45,360	1,546,563	0
Stockholders equity, beginning of period at Dec. 31, 2019	2,984,845	1,476	1,118,655	56,187	1,808,527	0
Changes in Stockholders' Equity
Issuance of common shares, net of issuance costs		207	439,768
Issuance of management incentive shares		5	(5)
Cancellation of treasury stock		(2)	(6,352)			6,354
Dividends and dividend equivalents declared			323		(33,922)
Stock-based compensation expense			9,348
Other comprehensive income	64,211			64,211
Net income	164,903				164,903
Treasury stock acquired						(6,354)
Stockholders equity, end of period at Jun. 30, 2020	3,623,329	1,686	1,561,737	120,398	1,939,508	0
Stockholders equity, beginning of period at Mar. 31, 2020		1,479	1,117,286	46,113	1,942,196	0
Changes in Stockholders' Equity
Issuance of common shares, net of issuance costs		207	439,768
Cancellation of treasury stock			(48)			48
Dividends and dividend equivalents declared			163		(18,068)
Stock-based compensation expense			4,568
Other comprehensive income	74,285			74,285
Net income	15,380				15,380
Treasury stock acquired						(48)
Stockholders equity, end of period at Jun. 30, 2020	$ 3,623,329	$ 1,686	$ 1,561,737	$ 120,398	$ 1,939,508	$ 0

Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) (Parenthetical) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2020
Additional Paid-In Capital
Issuance costs	$ 18,875	$ 18,875

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Operating Activities
Net income	$ 15,380	$ 136,405	$ 164,903	$ 264,125
Adjustments to reconcile net income to net cash provided by operating activities:
Gain on the sale of investments, net	1,269	(583)	(1,866)	(1,243)
Equity in net loss (income) of other invested assets			(228)	291
Distribution of income from other invested assets			794	0
Depreciation and amortization			1,735	1,826
Stock-based compensation expense			9,348	8,322
Amortization of premium on investment securities			11,548	7,455
Deferred income tax provision	(4,534)	13,527	12,513	28,973
Change in:
Accrued investment income			(176)	(760)
Accounts receivable			1,238	(1,508)
Deferred policy acquisition costs			(151)	219
Prepaid federal income tax			(17,251)	(28,000)	$ (59,500)
Other assets			(7,622)	(7,832)
Reserve for losses and LAE			181,528	5,674
Unearned premium reserve			(20,320)	(233)
Other accrued liabilities			9,792	(11,825)
Net cash provided by operating activities			345,785	265,484
Investing Activities
Net change in short-term investments			(815,592)	(97,068)
Purchase of investments available for sale			(541,193)	(498,210)
Proceeds from maturity of investments available for sale			113,217	39,527
Proceeds from sales of investments available for sale			299,149	299,443
Purchase of other invested assets			(6,618)	(39,408)
Return of investment from other invested assets			7,078	556
Purchase of property and equipment			(934)	(1,775)
Net cash used in investing activities			(944,893)	(296,935)
Financing Activities
Issuance of common shares, net of costs			440,498	0
Credit facility borrowings			200,000	0
Treasury stock acquired			(6,354)	(8,225)
Payment of issuance costs for credit facility			0	(15)
Dividends paid			(33,599)	0
Net cash provided by (used in) financing activities			600,545	(8,240)
Net increase (decrease) in cash			1,437	(39,691)
Cash at beginning of year			71,350	64,946	64,946
Cash at end of period	$ 72,787	$ 25,255	72,787	25,255	$ 71,350
Supplemental Disclosure of Cash Flow Information
Income tax payments			(10,000)	(21,005)
Interest payments			(4,283)	(5,179)
Noncash Transactions
Lease liabilities arising from obtaining right-of-use assets			$ 0	$ 18

Nature of Operations and Basis of Presentation	6 Months Ended
Nature of Operations and Basis of Presentation	Jun. 30, 2020
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. Essent Guaranty reinsures 25% of 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 then in effect, Essent Guaranty also reinsures that portion of the risk that is in excess of 25% of the mortgage balance with respect to loans insured prior to April 1, 2019, 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, 2019, 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 June 30, 2020 prior to the issuance of these condensed consolidated financial statements.

Recently Issued Accounting Standards	6 Months Ended
Recently Issued Accounting Standards	Jun. 30, 2020
Accounting Policies [Abstract]
Recently Issued Accounting Standards	Recently Issued Accounting Standards Accounting Standards Adopted During 2020 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 accounting for insurance losses and loss adjustment expenses ("LAE") are not within the scope of this ASU. The provisions of this update were effective for annual and interim periods beginning after December 15, 2019 and we adopted this standard on January 1, 2020 using the modified retrospective approach. The adoption of this ASU did not have a material effect on the Company's consolidated operating results or financial position. 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 were effective for interim and annual periods beginning after December 15, 2019, with early adoption permitted for the removed disclosures. We adopted this standard on January 1, 2020. The adoption of this ASU did not have a material impact on our condensed consolidated financial statements. Accounting Standards Not Yet Adopted In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments in this update provide temporary optional guidance to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform. It provides optional expedients and exceptions for applying generally accepted accounting principles to contract, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The amendments in this update are effective as of March 12, 2020 through December 31, 2022. The Company is evaluating the impact the adoption of this ASU will have on our consolidated operating results and financial position.

Investments

6 Months Ended

Jun. 30, 2020

Investments, Debt and Equity Securities [Abstract]

Investments

Investments available for sale consist of the following:



June 30, 2020 (In thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
U.S. Treasury securities	$	248,140	$	11,120	$	(1	)	$	259,259
U.S. agency securities	14,435		247		—			14,682
U.S. agency mortgage-backed securities	791,142		39,048		(66		)	830,124
Municipal debt securities (1)	436,386		29,068		(391		)	465,063
Non-U.S. government securities	50,710		4,069		(142		)	54,637
Corporate debt securities (2)	862,027		50,939		(829		)	912,137
Residential and commercial mortgage securities	300,021		15,170		(2,680		)	312,511
Asset-backed securities	388,732		2,410		(5,656		)	385,486
Money market funds	1,118,213		1		(10		)	1,118,204
Total investments available for sale	$	4,209,806	$	152,072	$	(9,775	)	$	4,352,103



December 31, 2019 (In thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
U.S. Treasury securities	$	239,087	$	3,526	$	(407	)	$	242,206
U.S. agency securities	33,620		36		(51		)	33,605
U.S. agency mortgage-backed securities	836,710		13,956		(2,332		)	848,334
Municipal debt securities (1)	339,511		22,245		(118		)	361,638
Non-U.S. government securities	52,230		2,812		(47		)	54,995
Corporate debt securities (2)	856,638		24,255		(592		)	880,301
Residential and commercial mortgage securities	282,840		6,542		(1,101		)	288,281
Asset-backed securities	326,589		857		(1,421		)	326,025
Money market funds	315,360		2		—			315,362
Total investments available for sale	$	3,282,585	$	74,231	$	(6,069	)	$	3,350,747



	June 30,		December 31,
(1) The following table summarizes municipal debt securities as of :	2020		2019
Special revenue bonds	74.3	%	74.5	%
General obligation bonds	22.2		21.3
Certificate of participation bonds	2.8		3.4
Tax allocation bonds	0.7		0.8
Total	100.0	%	100.0	%



	June 30,		December 31,
(2) The following table summarizes corporate debt securities as of :	2020		2019
Financial	35.0	%	34.4	%
Consumer, non-cyclical	20.8		20.1
Communications	10.9		10.3
Energy	7.6		8.3
Consumer, cyclical	7.2		7.6
Utilities	6.2		6.2
Technology	5.5		4.8
Industrial	3.5		4.2
Basic materials	3.3		4.1
Total	100.0	%	100.0	%

The amortized cost and fair value of investments available for sale at June 30, 2020, 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	$	83,842	$	84,360
Due after 1 but within 5 years	101,678		106,198
Due after 5 but within 10 years	61,636		67,516
Due after 10 years	984		1,185
Subtotal	248,140		259,259
U.S. agency securities:
Due in 1 year	1,897		1,914
Due after 1 but within 5 years	12,538		12,768
Subtotal	14,435		14,682
Municipal debt securities:
Due in 1 year	212		213
Due after 1 but within 5 years	39,539		41,489
Due after 5 but within 10 years	228,199		244,273
Due after 10 years	168,436		179,088
Subtotal	436,386		465,063
Non-U.S. government securities:
Due in 1 year	—		—
Due after 1 but within 5 years	22,258		23,589
Due after 5 but within 10 years	24,235		26,769
Due after 10 years	4,217		4,279
Subtotal	50,710		54,637
Corporate debt securities:
Due in 1 year	119,423		120,451
Due after 1 but within 5 years	456,301		479,892
Due after 5 but within 10 years	260,406		284,702
Due after 10 years	25,897		27,092
Subtotal	862,027		912,137
U.S. agency mortgage-backed securities	791,142		830,124
Residential and commercial mortgage securities	300,021		312,511
Asset-backed securities	388,732		385,486
Money market funds	1,118,213		1,118,204
Total investments available for sale	$	4,209,806	$	4,352,103

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



	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2020		2019		2020		2019
Realized gross gains	$	1,263	$	1,923	$	4,525	$	2,594
Realized gross losses	2,103		1,225		2,230		1,236

The fair value of investments available for sale in an unrealized loss position and the related unrealized losses for which no allowance for credit loss has been recorded were as follows:



	Less than 12 months					12 months or more					Total
June 30, 2020 (In thousands)	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
U.S. Treasury securities	$	15,983	$	(1	)	$	—	$	—		$	15,983	$	(1	)
U.S. agency mortgage-backed securities	5,057		(30		)	1,677		(36		)	6,734		(66		)
Municipal debt securities	32,488		(391		)	—		—			32,488		(391		)
Non-U.S. government securities	3,903		(142		)	—		—			3,903		(142		)
Corporate debt securities	14,953		(829		)	—		—			14,953		(829		)
Residential and commercial mortgage securities	50,165		(2,016		)	10,535		(664		)	60,700		(2,680		)
Asset-backed securities	155,022		(2,974		)	74,305		(2,682		)	229,327		(5,656		)
Money market funds	65,010		(10		)	—		—			65,010		(10		)
Total	$	342,581	$	(6,393	)	$	86,517	$	(3,382	)	$	429,098	$	(9,775	)



	Less than 12 months					12 months or more					Total
December 31, 2019 (In thousands)	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
U.S. Treasury securities	$	29,013	$	(331	)	$	42,981	$	(76	)	$	71,994	$	(407	)
U.S. agency securities	—		—			25,605		(51		)	25,605		(51		)
U.S. agency mortgage-backed securities	101,684		(1,042		)	113,866		(1,290		)	215,550		(2,332		)
Municipal debt securities	10,651		(112		)	624		(6		)	11,275		(118		)
Non-U.S. government securities	9,664		(47		)	—		—			9,664		(47		)
Corporate debt securities	83,013		(576		)	14,531		(16		)	97,544		(592		)
Residential and commercial mortgage securities	59,341		(1,059		)	3,442		(42		)	62,783		(1,101		)
Asset-backed securities	78,813		(202		)	109,536		(1,219		)	188,349		(1,421		)
Total	$	372,179	$	(3,369	)	$	310,585	$	(2,700	)	$	682,764	$	(6,069	)

At June 30, 2020 and December 31, 2019, we held 274 and 365 individual investment securities, respectively, that were in an unrealized loss position. 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 to record an impairment on the securities in an unrealized loss position. In assessing whether the decline in the fair value at June 30, 2020 of any of these securities resulted from a credit loss or other factors, we made inquiries of our investment managers to determine that each issuer was current on its scheduled interest and principal payments. We reviewed the credit rating of these securities noting that over 98% of the securities at June 30, 2020 had investment-grade ratings. We concluded that gross unrealized losses noted above are principally associated with the changes in credit spreads subsequent to purchase rather than due to credit impairment. We recorded impairments of $0.4 million in the three and six months ended June 30, 2020 and other-than-temporary impairments of $0.1 million in the three and six months ended June 30, 2019 on securities in an unrealized loss position. The impairments resulted from our intent to sell the securities subsequent to the reporting date.

The Company's other invested assets at June 30, 2020 and December 31, 2019 totaled $78.5 million and $78.9 million, respectively. Other invested assets are comprised of limited partnership interests which are generally 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 $9.9 million at June 30, 2020 and $9.4 million at December 31, 2019. 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 $979.8 million at June 30, 2020 and $805.5 million at December 31, 2019. Essent Guaranty is required to maintain assets on deposit in connection with its fully collateralized reinsurance agreements (see Note 4). The fair value of the assets on deposit was $8.5 million at June 30, 2020 and $6.4 million at December 31, 2019. 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 $12.0 million at June 30, 2020 and $6.4 million at December 31, 2019.

Net investment income consists of:



	Three Months Ended June 30,						Six Months Ended June 30,
(In thousands)	2020			2019			2020			2019
Fixed maturities	$	20,569		$	20,180		$	41,183		$	39,923
Short-term investments	358			1,310			1,480			2,368
Gross investment income	20,927			21,490			42,663			42,291
Investment expenses	(1,061		)	(909		)	(2,164		)	(1,830		)
Net investment income	$	19,866		$	20,581		$	40,499		$	40,461

Reinsurance

6 Months Ended

Jun. 30, 2020

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 and included in other assets on our condensed consolidated balance sheets, 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.

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



	Three Months Ended June 30,						Six Months Ended June 30,
(In thousands)	2020			2019			2020			2019
Net premiums written:
Direct	$	228,044		$	196,832		$	434,024		$	380,514
Ceded (1)	(22,140		)	(8,428		)	(36,377		)	(14,466		)
Net premiums written	$	205,904		$	188,404		$	397,647		$	366,048

Net premiums earned:
Direct	$	233,611		$	196,918		$	454,344		$	380,747
Ceded (1)	(22,140		)	(8,428		)	(36,377		)	(14,466		)
Net premiums earned	$	211,471		$	188,490		$	417,967		$	366,281


(1)	Net of profit commission.

Quota Share Reinsurance

Effective September 1, 2019, Essent Guaranty entered into a quota share reinsurance agreement with a panel of third-party reinsurers (the "QSR Agreement"). Each of the third-party reinsurers has an insurer financial strength rating of A or better by S&P Global Ratings, A.M. Best or both. Under the QSR Agreement, Essent Guaranty will cede premiums earned related to 40% of risk on eligible single premium policies and 20% of risk on all other eligible policies written September 1, 2019 through December 31, 2020, in exchange for reimbursement of ceded claims and claims expenses on covered policies, a 20% ceding commission, and a profit commission of up to 60% that varies directly and inversely with ceded claims. The QSR Agreement is scheduled to terminate on December 31, 2030. Essent Guaranty has certain termination rights under the QSR Agreement, including the option to terminate the QSR Agreement with no termination fee on December 31, 2021, and the option, subject to

a termination fee, to terminate the QSR Agreement on December 31, 2022, or annually thereafter. Should Essent Guaranty not exercise its option to terminate the QSR Agreement on December 31, 2021, the maximum profit commission that Essent Guaranty could earn would increase to 63% in 2022 and thereafter. RIF ceded under the QSR Agreement was $3.3 billion as of June 30, 2020.

Excess of Loss Reinsurance

Essent Guaranty has entered into fully collateralized reinsurance agreements ("Radnor Re Transactions") with unaffiliated special purpose insurers domiciled in Bermuda. 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. The Radnor Re entities collateralized 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 and 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 panels 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 these reinsurance agreements.

The following table summarizes Essent Guaranty's excess of loss reinsurance agreements as of June 30, 2020:



Vintage Year	Reinsurer	Effective Date	Optional Termination Date
2015 & 2016	Radnor Re 2019-2 Ltd.	June 20, 2019	June 25, 2024
2017	Radnor Re 2018-1 Ltd.	March 22, 2018	March 25, 2023	(1)
2017	Panel of Reinsurers	November 1, 2018	October 1, 2023	(2)
2018	Radnor Re 2019-1 Ltd.	February 28, 2019	February 25, 2026
2018	Panel of Reinsurers	February 28, 2019	February 25, 2026
2019	Radnor Re 2020-1 Ltd.	January 30, 2020	January 25, 2027
2019	Panel of Reinsurers	January 30, 2020	January 25, 2027


(1)	If the reinsurance agreement is not terminated at the optional termination date, the risk margin component of the reinsurance premium increases by 50%.


(2)	If the reinsurance agreement is not terminated at the optional termination date, the reinsurance premium increases by 50%.

The following table summarizes Essent Guaranty's excess of loss reinsurance coverages and retentions as of June 30, 2020:



(In thousands)					Remaining Reinsurance in Force
Vintage Year	Remaining Insurance in Force		Remaining Risk in Force		ILN		Other Reinsurance			Total		Remaining First Layer Retention
2015 & 2016	$	22,315,283	$	6,025,734	$	216,480	$	—		$	216,480	$	207,849
2017	22,597,869		5,742,641		242,123		165,167		(4)	407,290		220,308
2018	26,393,162		6,676,437		325,537		76,144		(5)	401,681		252,392
2019 (3)	30,475,038		7,724,225		495,889		55,102		(6)	550,991		215,605
Total	$	101,781,352	$	26,169,037	$	1,280,029	$	296,413		$	1,576,442	$	896,154


(3)	Reinsurance coverage on new insurance written from January 1, 2019 through August 31, 2019.


(4)	Coverage provided immediately above the coverage provided by Radnor Re 2018-1 Ltd.


(5)	Coverage provided pari-passu to the coverage provided by Radnor Re 2019-1 Ltd.


(6)	Coverage provided pari-passu to the coverage provided by Radnor Re 2020-1 Ltd.

Based on the level of delinquencies reported to us, the ILN transactions listed above became subject to a "trigger event" as of June 25, 2020. The amortization of principal of the notes issued by the unaffiliated special purpose insurers in connection with the ILNs is suspended and the aggregate excess of loss reinsurance coverage will not amortize during the continuation of a trigger event.

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 (other accrued liabilities) 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 June 30, 2020:



			Maximum Exposure to Loss
(In thousands)	Total VIE Assets		On - Balance Sheet			Off - Balance Sheet		Total
Radnor Re 2018-1 Ltd.	$	242,123	$	573		$	132	$	705
Radnor Re 2019-1 Ltd.	325,537		(1,858		)	307		(1,551		)
Radnor Re 2019-2 Ltd.	216,480		(1,409		)	172		(1,237		)
Radnor Re 2020-1 Ltd.	495,889		(765		)	503		(262		)
Total	$	1,280,029	$	(3,459	)	$	1,114	$	(2,345	)

Reserve for Losses and Loss Adjustment Expenses

6 Months Ended

Jun. 30, 2020

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 six months ended June 30:



($ in thousands)	2020			2019
Reserve for losses and LAE at beginning of period	$	69,362		$	49,464
Less: Reinsurance recoverables	71			—
Net reserve for losses and LAE at beginning of period	69,291			49,464
Add provision for losses and LAE, net of reinsurance, occurring in:
Current period	197,195			23,182
Prior years	(13,255		)	(11,115		)
Net incurred losses and LAE during the current period	183,940			12,067
Deduct payments for losses and LAE, net of reinsurance, occurring in:
Current period	289			245
Prior years	9,813			6,148
Net loss and LAE payments during the current period	10,102			6,393
Net reserve for losses and LAE at end of period	243,129			55,138
Plus: Reinsurance recoverables	7,761			—
Reserve for losses and LAE at end of period	$	250,890		$	55,138

Loans in default at end of period	38,068			4,405

For the six months ended June 30, 2020, $9.8 million was paid for incurred claims and claim adjustment expenses attributable to insured events of prior years. There has been a $13.3 million favorable prior year development during the six months ended June 30, 2020. Reserves remaining as of June 30, 2020 for prior years are $46.2 million as a result of re-estimation of unpaid losses and loss adjustment expenses. For the six months ended June 30, 2019, $6.1 million was paid for incurred claims and claim adjustment expenses attributable to insured events of prior years. There was a $11.1 million favorable prior year development during the six months ended June 30, 2019. Reserves remaining as of June 30, 2019 for prior years were $32.2 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.

Due to business restrictions, stay-at-home orders and travel restrictions initially implemented in March 2020 as a result of COVID-19, unemployment in the United States has increased significantly. As unemployment is one of the most common reasons for borrowers to default on their mortgage, the increase in unemployment has increased the number of delinquencies on

the mortgages that we insure and has the potential to increase claim frequencies on defaults. As of June 30, 2020, insured loans in default totaled 38,068 and included 34,352 defaults classified as COVID-19 defaults. For borrowers that have the ability to begin to pay their mortgage at the end of the forbearance period, we expect that mortgage servicers will work with them to modify their loans at which time the mortgage will be removed from delinquency status. We believe that the forbearance process could have a favorable effect on the frequency of claims that we ultimately pay. Based on the forbearance programs in place and the credit characteristics of the COVID-19 defaulted loans, we expect the ultimate number of COVID-19-related defaults that result in claims will be less than our historical default-to-claim experience. Accordingly, we recorded a reserve equal to approximately 7% of the risk in force for the COVID-19 default notices received in the three months ended June 30, 2020, compared to approximately a 9% reserve estimate for defaults that had missed three payments or less as of December 31, 2019. The reserve for losses and LAE on COVID-19 defaults was $189.0 million at June 30, 2020. It is reasonably possible that our estimate of the losses for the COVID-19 defaults could change in the near term as a result of the continued impact of the pandemic on the economic environment, the results of existing and future governmental programs designed to assist individuals and businesses impacted by the virus and the performance of the COVID-19 defaults in the forbearance programs. A 100 basis point increase or decrease in the reserve rate applied to COVID-19 new default notices would result in a corresponding increase or decrease in our reserve for loss and LAE of approximately $26 million as of June 30, 2020. The impact on our reserves in future periods will be dependent upon the amount of delinquent notices received from loan servicers, the performance of COVID-19 defaults and our expectations for the amount of ultimate losses on these delinquencies.

Debt Obligations	6 Months Ended
Debt Obligations	Jun. 30, 2020
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 annual commitment fee rate at June 30, 2020 was 0.25%. 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 15). The borrowings under the Credit Facility contractually mature on May 17, 2021. As of June 30, 2020, the Company was in compliance with the covenants and $425 million had been borrowed under the Credit Facility with a weighted average interest rate of 1.93%. As of December 31, 2019, $225 million had been borrowed with a weighted average interest rate of 3.51%.

Commitments and Contingencies

6 Months Ended

Jun. 30, 2020

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 six months ended June 30, 2020 and 2019, respectively. As of June 30, 2020, management believes any potential claims for indemnification related to contract underwriting services through June 30, 2020 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 June 30, 2020, 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. Operating lease right-of-use assets of $9.0 million and $10.0 million as of June 30, 2020 and December 31, 2019, respectively, are reported on our condensed consolidated balance sheet as property and equipment. Operating lease liabilities of $11.3 million and $12.6 million as of June 30, 2020 and December 31, 2019, respectively, are reported on our condensed consolidated balance sheet as other accrued liabilities. Total rent expense was $0.6 million for each of the three months ended June 30, 2020 and 2019 and $1.2 million for each of the six months ended June 30, 2020 and 2019.

The following table presents lease cost for the three and six months ended June 30, 2020 and 2019 and other lease information at June 30, 2020 and 2019:



	Three Months Ended June 30,						Six Months Ended June 30,
($ in thousands)	2020			2019			2020			2019
Lease cost:
Operating lease cost	$	601		$	606		$	1,301		$	1,197
Short-term lease cost	5			39			10			81
Sublease income	(33		)	(32		)	(66		)	(64		)
Total lease cost	$	573		$	613		$	1,245		$	1,214

Other information:
Weighted average remaining lease term - operating leases							4.3 years			5.3 years
Weighted average discount rate - operating leases							4.0		%	4.1		%

The following table presents a maturity analysis of our lease liabilities as follows at June 30, 2020:



(In thousands)
2020 (July 1 through December 31)	$	1,490
2021	2,999
2022	3,003
2023	2,752
2024	1,334
2025 and thereafter	793
Total lease payments to be paid	12,371
Less: Future interest expense	(1,055		)
Present value of lease liabilities	$	11,316

Capital Stock	6 Months Ended
Capital Stock	Jun. 30, 2020
Banking Regulation, Total Capital [Abstract]
Capital Stock	Capital Stock Our authorized share capital consists of 233.3 million shares of a single class of common shares. The common shares have no pre-emptive rights or other rights to subscribe for additional shares, and no rights of redemption, conversion or exchange. Under certain circumstances and subject to the provisions of Bermuda law and our bye-laws, we may be required to make an offer to repurchase shares held by members. The common shares rank pari-passu with one another in all respects as to rights of payment and distribution. In general, holders of common shares will have one vote for each common share held by them and will be entitled to vote, on a non-cumulative basis, at all meetings of shareholders. In the event that a shareholder is considered a 9.5% Shareholder under our bye-laws, such shareholder's votes will be reduced by whatever amount is necessary so that after any such reduction the votes of such shareholder will not result in any other person being treated as a 9.5% Shareholder with respect to the vote on such matter. Under these provisions certain shareholders may have their voting rights limited to less than one vote per share, while other shareholders may have voting rights in excess of one vote per share. In June 2020, Essent Group completed the sale of 13.8 million common shares in a public offering at a price of $33.25 per share. The total net proceeds from this offering were approximately $440.0 million after deducting underwriting discounts, commissions and other offering expenses. Dividends In February 2020, the Board of Directors declared a quarterly cash dividend of $0.16 per common share which was paid on March 20, 2020. In May 2020, the Board of Directors declared a quarterly cash dividend of $0.16 per common share which was paid on June 12, 2020. In August 2020, the Board of Directors declared a quarterly cash dividend of $0.16 per common share payable on September 10, 2020, to shareholders of record on August 31, 2020.

Stock-Based Compensation

6 Months Ended

Jun. 30, 2020

Share-based Payment Arrangement [Abstract]

Stock-Based Compensation

In connection with the IPO in 2013, Essent Group's Board of Directors adopted, and Essent Group's shareholders approved, the Essent Group Ltd. 2013 Long-Term Incentive Plan (the "2013 Plan"), which was effective upon completion of the initial public offering. The types of awards available under the 2013 Plan include nonvested shares, nonvested share units, non-qualified share options, incentive stock options, share appreciation rights, and other share-based or cash-based awards. Nonvested shares and nonvested share units granted under the 2013 Plan have rights to dividends, which entitle holders to the same dividend value per share as holders of common shares in the form of dividend equivalent units ("DEUs"). DEUs are subject to the same vesting and other terms and conditions as the corresponding nonvested shares and nonvested share units. DEUs vest when the underlying shares or share units vest and are forfeited if the underlying share or share units forfeit prior to vesting.

The following table summarizes nonvested common share, nonvested common share unit and DEU activity for the six months ended June 30, 2020:



	Time and Performance- Based Share Awards				Time-Based Share Awards				Share Units				DEUs
(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		Dividend Equivalent Units		Weighted Average Grant Date Fair Value
Outstanding at beginning of year	394		$	42.02	169		$	41.31	351		$	39.78	5		$	51.11
Granted	109		51.52		69		51.52		350		48.75		10		31.38
Vested	(140	)	36.29		(85	)	40.47		(192	)	37.76		(2	)	49.79
Forfeited	—		N/A		—		N/A		(12	)	49.70		—		34.46
Outstanding at June 30, 2020	363		$	47.09	153		$	46.34	497		$	46.64	13		$	35.83

In February 2020, 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 and performance-based vesting. The time-based share awards granted in February 2020 vest in three equal installments on March 1, 2021, 2022 and 2023. The performance-based share awards granted in February 2020 vest based upon our compounded annual book value per share growth percentage during a three-year performance period that commenced on January 1, 2020 and vest on March 1, 2023. 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
	<13	%	0	%
Threshold	13	%	10	%
	14	%	35	%
	15	%	60	%
	16	%	85	%
Maximum	≥17	%	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 January 2020, time-based share units were issued to all vice president and staff level employees and vest in three equal installments on January 2021, 2022 and 2023. In connection with our incentive program covering bonus awards for performance year 2019, in February 2020, time-based share units were issued to certain employees that vest in three equal installments on March 1, 2021, 2022 and 2023. In May 2020, 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, share units or DEUs that vested was $18.5 million and $23.6 million for the six months ended June 30, 2020 and 2019, respectively. As of June 30, 2020, there was $33.6 million of total unrecognized compensation expense related to nonvested shares or share units outstanding at June 30, 2020 and we expect to recognize the expense over a weighted average period of 2.2 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 141,801 in the six months ended June 30, 2020. The tendered shares were recorded at cost and included in treasury stock. All treasury stock has been cancelled as of June 30, 2020.

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



	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2020		2019		2020		2019
Compensation expense	$	4,568	$	4,222	$	9,348	$	8,322
Income tax benefit	868		790		1,786		1,555

Dividend Restrictions	6 Months Ended
Dividend Restrictions	Jun. 30, 2020
Statutory Accounting Practices, Statutory Amount Available for Dividend Payments [Abstract]
Dividends Restrictions	Dividends Restrictions Our U.S. insurance subsidiaries are subject to certain capital and dividend rules and regulations as prescribed by jurisdictions in which they are authorized to operate. Under the insurance laws of the Commonwealth of Pennsylvania, Essent Guaranty and Essent PA may pay dividends during any 12-month period in an amount equal to the greater of (i) 10% of the preceding year-end statutory policyholders' surplus or (ii) the preceding year's statutory net income. The Pennsylvania statute also specifies that dividends and other distributions can be paid out of positive unassigned surplus without prior approval. At June 30, 2020, Essent Guaranty had unassigned surplus of approximately $298.5 million. Essent Guaranty did not pay dividends to Essent Group or any intermediate holding companies in the three and six months ended June 30, 2020 or 2019. As a result of PMIERs guidance issued by the GSEs, effective June 30, 2020 through March 31, 2021, Essent Guaranty is required to obtain GSE written approval before paying a dividend. Essent PA had unassigned surplus of approximately $14.4 million as of June 30, 2020. Essent PA did not pay a dividend in the three and six months ended June 30, 2020 or 2019. Essent Re is subject to certain dividend restrictions as prescribed by the Bermuda Monetary Authority and under certain agreements with counterparties. In connection with the quota share reinsurance agreement with Essent Guaranty, Essent Re has agreed to maintain a minimum total equity of $100 million. As of June 30, 2020, Essent Re had total equity of $1.0 billion. At June 30, 2020, our insurance subsidiaries were in compliance with these rules, regulations and agreements.

Income Taxes

6 Months Ended

Jun. 30, 2020

Income Tax Disclosure [Abstract]

Income Taxes

As of June 30, 2020, the statutory income tax rates of the countries where the Company does business are 21% in the United States and 0.0% in Bermuda. The statutory income tax rate of each country is applied against the taxable income from each country to calculate the income tax expense. For the three and six months ended June 30, 2020, our provision for income taxes was not based on an estimated annual effective rate due to uncertainty regarding the potential impacts of COVID-19 on our results of operations. Due to that uncertainty, we were unable to make a reliable estimate of pretax income and the annual effective tax rate for the full year 2020. Accordingly, the provision for income taxes for the three and six months ended June 30, 2020 was based on the actual effective tax rate for the year to date period.

Income tax expense consists of the following components:



	Three Months Ended June 30,					Six Months Ended June 30,
(In thousands)	2020			2019		2020		2019
Current	$	7,969		$	12,801	$	18,097	$	19,354
Deferred	(4,534		)	13,527		12,513		28,973
Total income tax expense	$	3,435		$	26,328	$	30,610	$	48,327

Income tax expense is different from that which would be obtained by applying the applicable statutory income tax rates to income before taxes by jurisdiction (i.e. U.S. 21%; Bermuda 0.0%). The reconciliation of the difference between income tax expense and the expected tax provision at the weighted average tax rate was as follows:



	Three Months Ended June 30,
	2020					2019
($ in thousands)	$			% of pretax income		$			% of pretax income
Tax provision at weighted average statutory rates	$	2,750		14.6	%	$	25,795		15.9	%
Non-deductible expenses	707			3.8		439			0.3
Tax exempt interest, net of proration	(358		)	(1.9	)	(418		)	(0.3	)
Excess tax benefits from stock-based compensation	21			0.1		(22		)	0.0
Other	315			1.7		534			0.3
Total income tax expense	$	3,435		18.3	%	$	26,328		16.2	%

	Six Months Ended June 30,
	2020					2019
($ in thousands)	$			% of pretax income		$			% of pretax income
Tax provision at weighted average statutory rates	$	30,126		15.4	%	$	49,733		15.9	%
Non-deductible expenses	1,421			0.7		763			0.3
Tax exempt interest, net of proration	(700		)	(0.4	)	(861		)	(0.3	)
Excess tax benefits from stock-based compensation	(599		)	(0.3	)	(1,978		)	(0.6	)
Other	362			0.3		670			0.2
Total income tax expense	$	30,610		15.7	%	$	48,327		15.5	%

We provide deferred taxes to reflect the estimated future tax effects of the differences between the financial statement and tax bases of assets and liabilities using currently enacted tax laws. The net deferred tax liability was comprised of the following:



	June 30,			December 31,
(In thousands)	2020			2019
Deferred tax assets	$	28,124		$	29,392
Deferred tax liabilities	(300,870		)	(279,012		)
Net deferred tax liability	$	(272,746	)	$	(249,620	)

The components of the net deferred tax liability were as follows:



	June 30,			December 31,
(In thousands)	2020			2019
Contingency reserves	$	(273,077	)	$	(261,855	)
Unrealized (gain) loss on investments	(23,828		)	(13,214		)
Unearned premium reserve	15,233			16,641
Accrued expenses	4,279			3,391
Deferred policy acquisition costs	(3,330		)	(3,298		)
Unearned ceding commissions	3,021			3,227
Loss reserves	1,493			416
Start-up expenditures, net	1,274			1,410
Fixed assets	1,260			1,502
Nonvested shares	830			2,426
Change in fair market value of derivatives	726			370
Investments in limited partnerships	(400		)	(400		)
Prepaid expenses	(131		)	(132		)
Loss reserves - TCJA transition adjustment	(104		)	(113		)
Organizational expenditures	8			9
Net deferred tax liability	$	(272,746	)	$	(249,620	)

As a mortgage guaranty insurer, we are eligible for a tax deduction, subject to certain limitations, under Section 832(e) of the IRC for amounts required by state law or regulation to be set aside in statutory contingency reserves. The deduction is allowed only to the extent that we purchase non-interest-bearing United States Mortgage Guaranty Tax and Loss Bonds ("T&L Bonds") issued by the Treasury Department in an amount equal to the tax benefit derived from deducting any portion of our statutory contingency reserves. During the six months ended June 30, 2020, we had purchases of T&L Bonds in the amount of $17.3 million and for the year ended December 31, 2019, we had net purchases of T&L Bonds in the amount of $59.5 million. As of June 30, 2020 and December 31, 2019, we held $279.1 million and $261.9 million of T&L Bonds, respectively.

In evaluating our ability to realize the benefit of our deferred tax assets, we consider the relevant impact of all available positive and negative evidence including our past operating results and our forecasts of future taxable income. At June 30, 2020 and December 31, 2019, after weighing all the evidence, management concluded that it was more likely than not that our deferred tax assets would be realized.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

Earnings per Share (EPS)

6 Months Ended

Jun. 30, 2020

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 June 30,				Six Months Ended June 30,
(In thousands, except per share amounts)	2020		2019		2020		2019
Net income	$	15,380	$	136,405	$	164,903	$	264,125

Basic weighted average shares outstanding	102,500		97,798		100,224		97,697
Dilutive effect of nonvested shares	105		372		242		440
Diluted weighted average shares outstanding	102,605		98,170		100,466		98,137

Basic earnings per share	$	0.15	$	1.39	$	1.65	$	2.70
Diluted earnings per share	$	0.15	$	1.39	$	1.64	$	2.69

There were 578,659 and 17,018 antidilutive shares for the three months ended June 30, 2020 and 2019, respectively, and 465,945 and 79,483 antidilutive shares for the six months ended June 30, 2020 and 2019, 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 June 30, 2020, the following percentages of the performance-based share awards would be issuable under the terms of the arrangements if June 30, 2020 was the end of the contingency period:



2018 Performance-Based Grants	100	%
2019 Performance-Based Grants	100	%
2020 Performance-Based Grants	—	%

Based on the compounded annual book value per share growth as of June 30, 2019, 100% of all performance-based share awards would have been issuable under the terms of the arrangements if June 30, 2019 was the end of the contingency period.

Accumulated Other Comprehensive Income (Loss)

6 Months Ended

Jun. 30, 2020

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 and six months ended June 30, 2020 and 2019:



	Three Months Ended June 30,
	2020									2019
(In thousands)	Before Tax			Tax Effect			Net of Tax			Before Tax			Tax Effect			Net of Tax
Balance at beginning of period	$	52,348		$	(6,235	)	$	46,113		$	13,041		$	(3,668	)	$	9,373
Other comprehensive income (loss):
Unrealized holding gains (losses) on investments:
Unrealized holding gains arising during the period	90,608			(17,344		)	73,264			43,664			(7,211		)	36,453
Less: Reclassification adjustment for losses (gains) included in net income (1)	1,269			(248		)	1,021			(583		)	117			(466		)
Net unrealized gains on investments	91,877			(17,592		)	74,285			43,081			(7,094		)	35,987
Other comprehensive income	91,877			(17,592		)	74,285			43,081			(7,094		)	35,987
Balance at end of period	$	144,225		$	(23,827	)	$	120,398		$	56,122		$	(10,762	)	$	45,360

	Six Months Ended June 30,
	2020									2019
(In thousands)	Before Tax			Tax Effect			Net of Tax			Before Tax			Tax Effect			Net of Tax
Balance at beginning of year	$	69,401		$	(13,214	)	$	56,187		$	(33,276	)	$	4,283		$	(28,993	)
Other comprehensive income (loss):
Unrealized holding gains (losses) on investments:
Unrealized holding gains arising during the period	76,690			(10,941		)	65,749			90,641			(15,282		)	75,359
Less: Reclassification adjustment for gains included in net income (1)	(1,866		)	328			(1,538		)	(1,243		)	237			(1,006		)
Net unrealized gains on investments	74,824			(10,613		)	64,211			89,398			(15,045		)	74,353
Other comprehensive income	74,824			(10,613		)	64,211			89,398			(15,045		)	74,353
Balance at end of period	$	144,225		$	(23,827	)	$	120,398		$	56,122		$	(10,762	)	$	45,360

(1)

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

Fair Value of Financial Instruments

6 Months Ended

Jun. 30, 2020

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.



June 30, 2020 (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	$	259,259	$	—	$	—	$	259,259
U.S. agency securities	—		14,682		—		14,682
U.S. agency mortgage-backed securities	—		830,124		—		830,124
Municipal debt securities	—		465,063		—		465,063
Non-U.S. government securities	—		54,637		—		54,637
Corporate debt securities	—		912,137		—		912,137
Residential and commercial mortgage securities	—		312,511		—		312,511
Asset-backed securities	—		385,486		—		385,486
Money market funds	1,118,204		—		—		1,118,204
Total assets at fair value (1)	$	1,377,463	$	2,974,640	$	—	$	4,352,103


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



December 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	$	242,206	$	—	$	—	$	242,206
U.S. agency securities	—		33,605		—		33,605
U.S. agency mortgage-backed securities	—		848,334		—		848,334
Municipal debt securities	—		361,638		—		361,638
Non-U.S. government securities	—		54,995		—		54,995
Corporate debt securities	—		880,301		—		880,301
Residential and commercial mortgage securities	—		288,281		—		288,281
Asset-backed securities	—		326,025		—		326,025
Money market funds	315,362		—		—		315,362
Total assets at fair value (1)	$	557,568	$	2,793,179	$	—	$	3,350,747

(1)

Does not include the fair value of embedded derivatives, which we have accounted for separately as freestanding derivatives and included in other assets or other accrued liabilities in our condensed consolidated balance sheet. See Note 4 for more information.

- 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

6 Months Ended

Jun. 30, 2020

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 six months ended June 30:



(In thousands)	2020		2019
Essent Guaranty
Statutory net income	$	120,883	$	208,268
Statutory surplus	1,003,812		940,290
Contingency reserve liability	1,345,263		1,049,236

Essent PA
Statutory net income	$	2,258	$	4,216
Statutory surplus	53,432		51,151
Contingency reserve liability	54,685		50,915

Net income determined in accordance with statutory accounting practices differs from GAAP. In 2020 and 2019, 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 June 30, 2020 and 2019, 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 June 30, 2020, 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 six months ended June 30, 2020, Essent Guaranty increased its contingency reserve by $148.0 million and Essent PA increased its contingency reserve by $1.7 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 six months ended June 30, 2020 or 2019.

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, 2019, all such requirements were met.

Essent Re's statutory capital and surplus was $1.0 billion as of June 30, 2020 and $939.2 million as of December 31, 2019. Essent Re's statutory net income was $59.0 million and $82.7 million for the six months ended June 30, 2020 and 2019, respectively. Statutory capital and surplus as of June 30, 2020 and December 31, 2019 and statutory net income in the six months ended June 30, 2020 and 2019 determined in accordance with statutory accounting practices were not significantly different than the amounts determined under GAAP.

Recently Issued Accounting Standards (Policies)	6 Months Ended
Recently Issued Accounting Standards (Policies)	Jun. 30, 2020
Accounting Policies [Abstract]
Recently Issued Accounting Standards	Recently Issued Accounting Standards Accounting Standards Adopted During 2020 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 accounting for insurance losses and loss adjustment expenses ("LAE") are not within the scope of this ASU. The provisions of this update were effective for annual and interim periods beginning after December 15, 2019 and we adopted this standard on January 1, 2020 using the modified retrospective approach. The adoption of this ASU did not have a material effect on the Company's consolidated operating results or financial position. 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 were effective for interim and annual periods beginning after December 15, 2019, with early adoption permitted for the removed disclosures. We adopted this standard on January 1, 2020. The adoption of this ASU did not have a material impact on our condensed consolidated financial statements. Accounting Standards Not Yet Adopted In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments in this update provide temporary optional guidance to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform. It provides optional expedients and exceptions for applying generally accepted accounting principles to contract, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The amendments in this update are effective as of March 12, 2020 through December 31, 2022. The Company is evaluating the impact the adoption of this ASU will have on our consolidated operating results and financial position.

Investments (Tables)

6 Months Ended

Jun. 30, 2020

Investments, Debt and Equity Securities [Abstract]

Schedule of investments available for sale

Investments available for sale consist of the following:



June 30, 2020 (In thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
U.S. Treasury securities	$	248,140	$	11,120	$	(1	)	$	259,259
U.S. agency securities	14,435		247		—			14,682
U.S. agency mortgage-backed securities	791,142		39,048		(66		)	830,124
Municipal debt securities (1)	436,386		29,068		(391		)	465,063
Non-U.S. government securities	50,710		4,069		(142		)	54,637
Corporate debt securities (2)	862,027		50,939		(829		)	912,137
Residential and commercial mortgage securities	300,021		15,170		(2,680		)	312,511
Asset-backed securities	388,732		2,410		(5,656		)	385,486
Money market funds	1,118,213		1		(10		)	1,118,204
Total investments available for sale	$	4,209,806	$	152,072	$	(9,775	)	$	4,352,103



December 31, 2019 (In thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
U.S. Treasury securities	$	239,087	$	3,526	$	(407	)	$	242,206
U.S. agency securities	33,620		36		(51		)	33,605
U.S. agency mortgage-backed securities	836,710		13,956		(2,332		)	848,334
Municipal debt securities (1)	339,511		22,245		(118		)	361,638
Non-U.S. government securities	52,230		2,812		(47		)	54,995
Corporate debt securities (2)	856,638		24,255		(592		)	880,301
Residential and commercial mortgage securities	282,840		6,542		(1,101		)	288,281
Asset-backed securities	326,589		857		(1,421		)	326,025
Money market funds	315,360		2		—			315,362
Total investments available for sale	$	3,282,585	$	74,231	$	(6,069	)	$	3,350,747



	June 30,		December 31,
(1) The following table summarizes municipal debt securities as of :	2020		2019
Special revenue bonds	74.3	%	74.5	%
General obligation bonds	22.2		21.3
Certificate of participation bonds	2.8		3.4
Tax allocation bonds	0.7		0.8
Total	100.0	%	100.0	%



	June 30,		December 31,
(2) The following table summarizes corporate debt securities as of :	2020		2019
Financial	35.0	%	34.4	%
Consumer, non-cyclical	20.8		20.1
Communications	10.9		10.3
Energy	7.6		8.3
Consumer, cyclical	7.2		7.6
Utilities	6.2		6.2
Technology	5.5		4.8
Industrial	3.5		4.2
Basic materials	3.3		4.1
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	$	83,842	$	84,360
Due after 1 but within 5 years	101,678		106,198
Due after 5 but within 10 years	61,636		67,516
Due after 10 years	984		1,185
Subtotal	248,140		259,259
U.S. agency securities:
Due in 1 year	1,897		1,914
Due after 1 but within 5 years	12,538		12,768
Subtotal	14,435		14,682
Municipal debt securities:
Due in 1 year	212		213
Due after 1 but within 5 years	39,539		41,489
Due after 5 but within 10 years	228,199		244,273
Due after 10 years	168,436		179,088
Subtotal	436,386		465,063
Non-U.S. government securities:
Due in 1 year	—		—
Due after 1 but within 5 years	22,258		23,589
Due after 5 but within 10 years	24,235		26,769
Due after 10 years	4,217		4,279
Subtotal	50,710		54,637
Corporate debt securities:
Due in 1 year	119,423		120,451
Due after 1 but within 5 years	456,301		479,892
Due after 5 but within 10 years	260,406		284,702
Due after 10 years	25,897		27,092
Subtotal	862,027		912,137
U.S. agency mortgage-backed securities	791,142		830,124
Residential and commercial mortgage securities	300,021		312,511
Asset-backed securities	388,732		385,486
Money market funds	1,118,213		1,118,204
Total investments available for sale	$	4,209,806	$	4,352,103

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 June 30,				Six Months Ended June 30,
(In thousands)	2020		2019		2020		2019
Realized gross gains	$	1,263	$	1,923	$	4,525	$	2,594
Realized gross losses	2,103		1,225		2,230		1,236

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 for which no allowance for credit loss has been recorded were as follows:



	Less than 12 months					12 months or more					Total
June 30, 2020 (In thousands)	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
U.S. Treasury securities	$	15,983	$	(1	)	$	—	$	—		$	15,983	$	(1	)
U.S. agency mortgage-backed securities	5,057		(30		)	1,677		(36		)	6,734		(66		)
Municipal debt securities	32,488		(391		)	—		—			32,488		(391		)
Non-U.S. government securities	3,903		(142		)	—		—			3,903		(142		)
Corporate debt securities	14,953		(829		)	—		—			14,953		(829		)
Residential and commercial mortgage securities	50,165		(2,016		)	10,535		(664		)	60,700		(2,680		)
Asset-backed securities	155,022		(2,974		)	74,305		(2,682		)	229,327		(5,656		)
Money market funds	65,010		(10		)	—		—			65,010		(10		)
Total	$	342,581	$	(6,393	)	$	86,517	$	(3,382	)	$	429,098	$	(9,775	)



	Less than 12 months					12 months or more					Total
December 31, 2019 (In thousands)	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
U.S. Treasury securities	$	29,013	$	(331	)	$	42,981	$	(76	)	$	71,994	$	(407	)
U.S. agency securities	—		—			25,605		(51		)	25,605		(51		)
U.S. agency mortgage-backed securities	101,684		(1,042		)	113,866		(1,290		)	215,550		(2,332		)
Municipal debt securities	10,651		(112		)	624		(6		)	11,275		(118		)
Non-U.S. government securities	9,664		(47		)	—		—			9,664		(47		)
Corporate debt securities	83,013		(576		)	14,531		(16		)	97,544		(592		)
Residential and commercial mortgage securities	59,341		(1,059		)	3,442		(42		)	62,783		(1,101		)
Asset-backed securities	78,813		(202		)	109,536		(1,219		)	188,349		(1,421		)
Total	$	372,179	$	(3,369	)	$	310,585	$	(2,700	)	$	682,764	$	(6,069	)

Schedule of net investment income

Net investment income consists of:



	Three Months Ended June 30,						Six Months Ended June 30,
(In thousands)	2020			2019			2020			2019
Fixed maturities	$	20,569		$	20,180		$	41,183		$	39,923
Short-term investments	358			1,310			1,480			2,368
Gross investment income	20,927			21,490			42,663			42,291
Investment expenses	(1,061		)	(909		)	(2,164		)	(1,830		)
Net investment income	$	19,866		$	20,581		$	40,499		$	40,461

Reinsurance (Tables)

6 Months Ended

Jun. 30, 2020

Reinsurance Disclosures [Abstract]

Effect of reinsurance

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



	Three Months Ended June 30,						Six Months Ended June 30,
(In thousands)	2020			2019			2020			2019
Net premiums written:
Direct	$	228,044		$	196,832		$	434,024		$	380,514
Ceded (1)	(22,140		)	(8,428		)	(36,377		)	(14,466		)
Net premiums written	$	205,904		$	188,404		$	397,647		$	366,048

Net premiums earned:
Direct	$	233,611		$	196,918		$	454,344		$	380,747
Ceded (1)	(22,140		)	(8,428		)	(36,377		)	(14,466		)
Net premiums earned	$	211,471		$	188,490		$	417,967		$	366,281

(1)

Net of profit commission.

Schedule of coverages and retentions

The following table summarizes Essent Guaranty's excess of loss reinsurance agreements as of June 30, 2020:



Vintage Year	Reinsurer	Effective Date	Optional Termination Date
2015 & 2016	Radnor Re 2019-2 Ltd.	June 20, 2019	June 25, 2024
2017	Radnor Re 2018-1 Ltd.	March 22, 2018	March 25, 2023	(1)
2017	Panel of Reinsurers	November 1, 2018	October 1, 2023	(2)
2018	Radnor Re 2019-1 Ltd.	February 28, 2019	February 25, 2026
2018	Panel of Reinsurers	February 28, 2019	February 25, 2026
2019	Radnor Re 2020-1 Ltd.	January 30, 2020	January 25, 2027
2019	Panel of Reinsurers	January 30, 2020	January 25, 2027


(1)	If the reinsurance agreement is not terminated at the optional termination date, the risk margin component of the reinsurance premium increases by 50%.


(2)	If the reinsurance agreement is not terminated at the optional termination date, the reinsurance premium increases by 50%.

The following table summarizes Essent Guaranty's excess of loss reinsurance coverages and retentions as of June 30, 2020:



(In thousands)					Remaining Reinsurance in Force
Vintage Year	Remaining Insurance in Force		Remaining Risk in Force		ILN		Other Reinsurance			Total		Remaining First Layer Retention
2015 & 2016	$	22,315,283	$	6,025,734	$	216,480	$	—		$	216,480	$	207,849
2017	22,597,869		5,742,641		242,123		165,167		(4)	407,290		220,308
2018	26,393,162		6,676,437		325,537		76,144		(5)	401,681		252,392
2019 (3)	30,475,038		7,724,225		495,889		55,102		(6)	550,991		215,605
Total	$	101,781,352	$	26,169,037	$	1,280,029	$	296,413		$	1,576,442	$	896,154


(3)	Reinsurance coverage on new insurance written from January 1, 2019 through August 31, 2019.


(4)	Coverage provided immediately above the coverage provided by Radnor Re 2018-1 Ltd.


(5)	Coverage provided pari-passu to the coverage provided by Radnor Re 2019-1 Ltd.

(6)

Coverage provided pari-passu to the coverage provided by Radnor Re 2020-1 Ltd.

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.	$	242,123	$	573		$	132	$	705
Radnor Re 2019-1 Ltd.	325,537		(1,858		)	307		(1,551		)
Radnor Re 2019-2 Ltd.	216,480		(1,409		)	172		(1,237		)
Radnor Re 2020-1 Ltd.	495,889		(765		)	503		(262		)
Total	$	1,280,029	$	(3,459	)	$	1,114	$	(2,345	)

- 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)

6 Months Ended

Jun. 30, 2020

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 six months ended June 30:



($ in thousands)	2020			2019
Reserve for losses and LAE at beginning of period	$	69,362		$	49,464
Less: Reinsurance recoverables	71			—
Net reserve for losses and LAE at beginning of period	69,291			49,464
Add provision for losses and LAE, net of reinsurance, occurring in:
Current period	197,195			23,182
Prior years	(13,255		)	(11,115		)
Net incurred losses and LAE during the current period	183,940			12,067
Deduct payments for losses and LAE, net of reinsurance, occurring in:
Current period	289			245
Prior years	9,813			6,148
Net loss and LAE payments during the current period	10,102			6,393
Net reserve for losses and LAE at end of period	243,129			55,138
Plus: Reinsurance recoverables	7,761			—
Reserve for losses and LAE at end of period	$	250,890		$	55,138

Loans in default at end of period	38,068			4,405

Commitments and Contingencies (Tables)

6 Months Ended

Jun. 30, 2020

Commitments and Contingencies Disclosure [Abstract]

Schedule of lease cost and other information

The following table presents lease cost for the three and six months ended June 30, 2020 and 2019 and other lease information at June 30, 2020 and 2019:



	Three Months Ended June 30,						Six Months Ended June 30,
($ in thousands)	2020			2019			2020			2019
Lease cost:
Operating lease cost	$	601		$	606		$	1,301		$	1,197
Short-term lease cost	5			39			10			81
Sublease income	(33		)	(32		)	(66		)	(64		)
Total lease cost	$	573		$	613		$	1,245		$	1,214

Other information:
Weighted average remaining lease term - operating leases							4.3 years			5.3 years
Weighted average discount rate - operating leases							4.0		%	4.1		%

Schedule of lease liability maturity

The following table presents a maturity analysis of our lease liabilities as follows at June 30, 2020:



(In thousands)
2020 (July 1 through December 31)	$	1,490
2021	2,999
2022	3,003
2023	2,752
2024	1,334
2025 and thereafter	793
Total lease payments to be paid	12,371
Less: Future interest expense	(1,055		)
Present value of lease liabilities	$	11,316

Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2020

Share-based Payment Arrangement [Abstract]

Summary of nonvested Common Share and nonvested Common Share unit activity

The following table summarizes nonvested common share, nonvested common share unit and DEU activity for the six months ended June 30, 2020:



	Time and Performance- Based Share Awards				Time-Based Share Awards				Share Units				DEUs
(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		Dividend Equivalent Units		Weighted Average Grant Date Fair Value
Outstanding at beginning of year	394		$	42.02	169		$	41.31	351		$	39.78	5		$	51.11
Granted	109		51.52		69		51.52		350		48.75		10		31.38
Vested	(140	)	36.29		(85	)	40.47		(192	)	37.76		(2	)	49.79
Forfeited	—		N/A		—		N/A		(12	)	49.70		—		34.46
Outstanding at June 30, 2020	363		$	47.09	153		$	46.34	497		$	46.64	13		$	35.83

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
	<13	%	0	%
Threshold	13	%	10	%
	14	%	35	%
	15	%	60	%
	16	%	85	%
Maximum	≥17	%	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 June 30,				Six Months Ended June 30,
(In thousands)	2020		2019		2020		2019
Compensation expense	$	4,568	$	4,222	$	9,348	$	8,322
Income tax benefit	868		790		1,786		1,555

Income Taxes (Tables)

6 Months Ended

Jun. 30, 2020

Income Tax Disclosure [Abstract]

Schedule of components of income tax expense

Income tax expense consists of the following components:



	Three Months Ended June 30,					Six Months Ended June 30,
(In thousands)	2020			2019		2020		2019
Current	$	7,969		$	12,801	$	18,097	$	19,354
Deferred	(4,534		)	13,527		12,513		28,973
Total income tax expense	$	3,435		$	26,328	$	30,610	$	48,327

Schedule of reconciliation of difference between income tax expense and expected tax provision at weighted average tax rate

The reconciliation of the difference between income tax expense and the expected tax provision at the weighted average tax rate was as follows:



	Three Months Ended June 30,
	2020					2019
($ in thousands)	$			% of pretax income		$			% of pretax income
Tax provision at weighted average statutory rates	$	2,750		14.6	%	$	25,795		15.9	%
Non-deductible expenses	707			3.8		439			0.3
Tax exempt interest, net of proration	(358		)	(1.9	)	(418		)	(0.3	)
Excess tax benefits from stock-based compensation	21			0.1		(22		)	0.0
Other	315			1.7		534			0.3
Total income tax expense	$	3,435		18.3	%	$	26,328		16.2	%

	Six Months Ended June 30,
	2020					2019
($ in thousands)	$			% of pretax income		$			% of pretax income
Tax provision at weighted average statutory rates	$	30,126		15.4	%	$	49,733		15.9	%
Non-deductible expenses	1,421			0.7		763			0.3
Tax exempt interest, net of proration	(700		)	(0.4	)	(861		)	(0.3	)
Excess tax benefits from stock-based compensation	(599		)	(0.3	)	(1,978		)	(0.6	)
Other	362			0.3		670			0.2
Total income tax expense	$	30,610		15.7	%	$	48,327		15.5	%

Schedule of net deferred tax (liability) asset and components



	June 30,			December 31,
(In thousands)	2020			2019
Deferred tax assets	$	28,124		$	29,392
Deferred tax liabilities	(300,870		)	(279,012		)
Net deferred tax liability	$	(272,746	)	$	(249,620	)

The components of the net deferred tax liability were as follows:



	June 30,			December 31,
(In thousands)	2020			2019
Contingency reserves	$	(273,077	)	$	(261,855	)
Unrealized (gain) loss on investments	(23,828		)	(13,214		)
Unearned premium reserve	15,233			16,641
Accrued expenses	4,279			3,391
Deferred policy acquisition costs	(3,330		)	(3,298		)
Unearned ceding commissions	3,021			3,227
Loss reserves	1,493			416
Start-up expenditures, net	1,274			1,410
Fixed assets	1,260			1,502
Nonvested shares	830			2,426
Change in fair market value of derivatives	726			370
Investments in limited partnerships	(400		)	(400		)
Prepaid expenses	(131		)	(132		)
Loss reserves - TCJA transition adjustment	(104		)	(113		)
Organizational expenditures	8			9
Net deferred tax liability	$	(272,746	)	$	(249,620	)

Earnings per Share (EPS) (Tables)

6 Months Ended

Jun. 30, 2020

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 June 30,				Six Months Ended June 30,
(In thousands, except per share amounts)	2020		2019		2020		2019
Net income	$	15,380	$	136,405	$	164,903	$	264,125

Basic weighted average shares outstanding	102,500		97,798		100,224		97,697
Dilutive effect of nonvested shares	105		372		242		440
Diluted weighted average shares outstanding	102,605		98,170		100,466		98,137

Basic earnings per share	$	0.15	$	1.39	$	1.65	$	2.70
Diluted earnings per share	$	0.15	$	1.39	$	1.64	$	2.69

Disclosure of share-based compensation arrangements by share-based payment award

Based on the compounded annual book value per share growth as of June 30, 2020, the following percentages of the performance-based share awards would be issuable under the terms of the arrangements if June 30, 2020 was the end of the contingency period:



2018 Performance-Based Grants	100	%
2019 Performance-Based Grants	100	%
2020 Performance-Based Grants	—	%

Accumulated Other Comprehensive Income (Loss) (Tables)

6 Months Ended

Jun. 30, 2020

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 and six months ended June 30, 2020 and 2019:



	Three Months Ended June 30,
	2020									2019
(In thousands)	Before Tax			Tax Effect			Net of Tax			Before Tax			Tax Effect			Net of Tax
Balance at beginning of period	$	52,348		$	(6,235	)	$	46,113		$	13,041		$	(3,668	)	$	9,373
Other comprehensive income (loss):
Unrealized holding gains (losses) on investments:
Unrealized holding gains arising during the period	90,608			(17,344		)	73,264			43,664			(7,211		)	36,453
Less: Reclassification adjustment for losses (gains) included in net income (1)	1,269			(248		)	1,021			(583		)	117			(466		)
Net unrealized gains on investments	91,877			(17,592		)	74,285			43,081			(7,094		)	35,987
Other comprehensive income	91,877			(17,592		)	74,285			43,081			(7,094		)	35,987
Balance at end of period	$	144,225		$	(23,827	)	$	120,398		$	56,122		$	(10,762	)	$	45,360

	Six Months Ended June 30,
	2020									2019
(In thousands)	Before Tax			Tax Effect			Net of Tax			Before Tax			Tax Effect			Net of Tax
Balance at beginning of year	$	69,401		$	(13,214	)	$	56,187		$	(33,276	)	$	4,283		$	(28,993	)
Other comprehensive income (loss):
Unrealized holding gains (losses) on investments:
Unrealized holding gains arising during the period	76,690			(10,941		)	65,749			90,641			(15,282		)	75,359
Less: Reclassification adjustment for gains included in net income (1)	(1,866		)	328			(1,538		)	(1,243		)	237			(1,006		)
Net unrealized gains on investments	74,824			(10,613		)	64,211			89,398			(15,045		)	74,353
Other comprehensive income	74,824			(10,613		)	64,211			89,398			(15,045		)	74,353
Balance at end of period	$	144,225		$	(23,827	)	$	120,398		$	56,122		$	(10,762	)	$	45,360

(1)

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

Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2020

Fair Value Disclosures [Abstract]

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



June 30, 2020 (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	$	259,259	$	—	$	—	$	259,259
U.S. agency securities	—		14,682		—		14,682
U.S. agency mortgage-backed securities	—		830,124		—		830,124
Municipal debt securities	—		465,063		—		465,063
Non-U.S. government securities	—		54,637		—		54,637
Corporate debt securities	—		912,137		—		912,137
Residential and commercial mortgage securities	—		312,511		—		312,511
Asset-backed securities	—		385,486		—		385,486
Money market funds	1,118,204		—		—		1,118,204
Total assets at fair value (1)	$	1,377,463	$	2,974,640	$	—	$	4,352,103


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



December 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	$	242,206	$	—	$	—	$	242,206
U.S. agency securities	—		33,605		—		33,605
U.S. agency mortgage-backed securities	—		848,334		—		848,334
Municipal debt securities	—		361,638		—		361,638
Non-U.S. government securities	—		54,995		—		54,995
Corporate debt securities	—		880,301		—		880,301
Residential and commercial mortgage securities	—		288,281		—		288,281
Asset-backed securities	—		326,025		—		326,025
Money market funds	315,362		—		—		315,362
Total assets at fair value (1)	$	557,568	$	2,793,179	$	—	$	3,350,747


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

Statutory Accounting (Tables)

6 Months Ended

Jun. 30, 2020

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 six months ended June 30:



(In thousands)	2020		2019
Essent Guaranty
Statutory net income	$	120,883	$	208,268
Statutory surplus	1,003,812		940,290
Contingency reserve liability	1,345,263		1,049,236

Essent PA
Statutory net income	$	2,258	$	4,216
Statutory surplus	53,432		51,151
Contingency reserve liability	54,685		50,915

- 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) - state	3 Months Ended	6 Months Ended
	Mar. 31, 2019	Jun. 30, 2020
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%

Investments (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Investments available for sale
Amortized Cost	$ 4,209,806	$ 3,282,585
Unrealized Gains	152,072	74,231
Unrealized Losses	(9,775)	(6,069)
Fair Value	4,352,103	3,350,747
U.S. Treasury securities
Investments available for sale
Amortized Cost	248,140	239,087
Unrealized Gains	11,120	3,526
Unrealized Losses	(1)	(407)
Fair Value	259,259	242,206
U.S. agency securities
Investments available for sale
Amortized Cost	14,435	33,620
Unrealized Gains	247	36
Unrealized Losses	0	(51)
Fair Value	14,682	33,605
U.S. agency mortgage-backed securities
Investments available for sale
Amortized Cost	791,142	836,710
Unrealized Gains	39,048	13,956
Unrealized Losses	(66)	(2,332)
Fair Value	830,124	848,334
Municipal debt securities
Investments available for sale
Amortized Cost	436,386	339,511
Unrealized Gains	29,068	22,245
Unrealized Losses	(391)	(118)
Fair Value	465,063	361,638
Non-U.S. government securities
Investments available for sale
Amortized Cost	50,710	52,230
Unrealized Gains	4,069	2,812
Unrealized Losses	(142)	(47)
Fair Value	54,637	54,995
Corporate debt securities
Investments available for sale
Amortized Cost	862,027	856,638
Unrealized Gains	50,939	24,255
Unrealized Losses	(829)	(592)
Fair Value	912,137	880,301
Residential and commercial mortgage securities
Investments available for sale
Amortized Cost	300,021	282,840
Unrealized Gains	15,170	6,542
Unrealized Losses	(2,680)	(1,101)
Fair Value	312,511	288,281
Asset-backed securities
Investments available for sale
Amortized Cost	388,732	326,589
Unrealized Gains	2,410	857
Unrealized Losses	(5,656)	(1,421)
Fair Value	385,486	326,025
Money market funds
Investments available for sale
Amortized Cost	1,118,213	315,360
Unrealized Gains	1	2
Unrealized Losses	(10)	0
Fair Value	$ 1,118,204	$ 315,362

Investments (Details 2)	Jun. 30, 2020	Dec. 31, 2019
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%
Special revenue bonds \| Municipal debt securities
Investments available for sale
Percentage of debt securities	74.30%	74.50%
General obligation bonds \| Municipal debt securities
Investments available for sale
Percentage of debt securities	22.20%	21.30%
Certificate of participation bonds \| Municipal debt securities
Investments available for sale
Percentage of debt securities	2.80%	3.40%
Tax allocation bonds \| Municipal debt securities
Investments available for sale
Percentage of debt securities	0.70%	0.80%
Financial \| Corporate debt securities
Investments available for sale
Percentage of debt securities	35.00%	34.40%
Consumer, non-cyclical \| Corporate debt securities
Investments available for sale
Percentage of debt securities	20.80%	20.10%
Communications \| Corporate debt securities
Investments available for sale
Percentage of debt securities	10.90%	10.30%
Energy \| Corporate debt securities
Investments available for sale
Percentage of debt securities	7.60%	8.30%
Consumer, cyclical \| Corporate debt securities
Investments available for sale
Percentage of debt securities	7.20%	7.60%
Utilities \| Corporate debt securities
Investments available for sale
Percentage of debt securities	6.20%	6.20%
Technology \| Corporate debt securities
Investments available for sale
Percentage of debt securities	5.50%	4.80%
Industrial \| Corporate debt securities
Investments available for sale
Percentage of debt securities	3.50%	4.20%
Basic materials \| Corporate debt securities
Investments available for sale
Percentage of debt securities	3.30%	4.10%

Investments (Details 3) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Amortized Cost
Amortized Cost	$ 4,209,806	$ 3,282,585
Fair Value
Fair Value	4,352,103	3,350,747
U.S. Treasury securities
Amortized Cost
Due in 1 year	83,842
Due after 1 but within 5 years	101,678
Due after 5 but within 10 years	61,636
Due after 10 years	984
Subtotal	248,140
Amortized Cost	248,140	239,087
Fair Value
Due in 1 year	84,360
Due after 1 but within 5 years	106,198
Due after 5 but within 10 years	67,516
Due after 10 years	1,185
Subtotal	259,259
Fair Value	259,259	242,206
U.S. agency securities
Amortized Cost
Due in 1 year	1,897
Due after 1 but within 5 years	12,538
Subtotal	14,435
Amortized Cost	14,435	33,620
Fair Value
Due in 1 year	1,914
Due after 1 but within 5 years	12,768
Subtotal	14,682
Fair Value	14,682	33,605
Municipal debt securities
Amortized Cost
Due in 1 year	212
Due after 1 but within 5 years	39,539
Due after 5 but within 10 years	228,199
Due after 10 years	168,436
Subtotal	436,386
Amortized Cost	436,386	339,511
Fair Value
Due in 1 year	213
Due after 1 but within 5 years	41,489
Due after 5 but within 10 years	244,273
Due after 10 years	179,088
Subtotal	465,063
Fair Value	465,063	361,638
Non-U.S. government securities:
Amortized Cost
Due in 1 year	0
Due after 1 but within 5 years	22,258
Due after 5 but within 10 years	24,235
Due after 10 years	4,217
Subtotal	50,710
Amortized Cost	50,710	52,230
Fair Value
Due in 1 year	0
Due after 1 but within 5 years	23,589
Due after 5 but within 10 years	26,769
Due after 10 years	4,279
Subtotal	54,637
Fair Value	54,637	54,995
Corporate debt securities
Amortized Cost
Due in 1 year	119,423
Due after 1 but within 5 years	456,301
Due after 5 but within 10 years	260,406
Due after 10 years	25,897
Subtotal	862,027
Amortized Cost	862,027	856,638
Fair Value
Due in 1 year	120,451
Due after 1 but within 5 years	479,892
Due after 5 but within 10 years	284,702
Due after 10 years	27,092
Subtotal	912,137
Fair Value	912,137	880,301
U.S. agency mortgage-backed securities
Amortized Cost
Amortized Cost	791,142	836,710
Fair Value
Fair Value	830,124	848,334
Residential and commercial mortgage securities
Amortized Cost
Amortized Cost	300,021	282,840
Fair Value
Fair Value	312,511	288,281
Asset-backed securities
Amortized Cost
Amortized Cost	388,732	326,589
Fair Value
Fair Value	385,486	326,025
Money market funds
Amortized Cost
Amortized Cost	1,118,213	315,360
Fair Value
Fair Value	$ 1,118,204	$ 315,362

Investments (Details 4) $ in Thousands	3 Months Ended		6 Months Ended
Investments (Details 4) $ in Thousands	Jun. 30, 2020 USD ($) security	Jun. 30, 2019 USD ($)	Jun. 30, 2020 USD ($) security	Jun. 30, 2019 USD ($)	Dec. 31, 2019 USD ($) security
Investments, Debt and Equity Securities [Abstract]
Realized gross gains	$ 1,263	$ 1,923	$ 4,525	$ 2,594
Realized gross losses	2,103	1,225	2,230	1,236
Fair Value
Less than 12 months	342,581		342,581		$ 372,179
12 months or more	86,517		86,517		310,585
Total	429,098		429,098		682,764
Gross Unrealized Losses
Less than 12 months	(6,393)		(6,393)		(3,369)
12 months or more	(3,382)		(3,382)		(2,700)
Total	$ (9,775)		$ (9,775)		$ (6,069)
Other Information
Number of investment securities in an unrealized loss position \| security	274		274		365
Other-than-temporary impairments	$ 400	$ 100	$ 400	$ 100
Other invested assets	78,536		78,536		$ 78,873
Fair value of investments deposited with insurance regulatory authorities	9,900		9,900		9,400
U.S. Treasury securities
Fair Value
Less than 12 months	15,983		15,983		29,013
12 months or more	0		0		42,981
Total	15,983		15,983		71,994
Gross Unrealized Losses
Less than 12 months	(1)		(1)		(331)
12 months or more	0		0		(76)
Total	(1)		(1)		(407)
U.S. agency securities
Fair Value
Less than 12 months					0
12 months or more					25,605
Total					25,605
Gross Unrealized Losses
Less than 12 months					0
12 months or more					(51)
Total					(51)
U.S. agency mortgage-backed securities
Fair Value
Less than 12 months	5,057		5,057		101,684
12 months or more	1,677		1,677		113,866
Total	6,734		6,734		215,550
Gross Unrealized Losses
Less than 12 months	(30)		(30)		(1,042)
12 months or more	(36)		(36)		(1,290)
Total	(66)		(66)		(2,332)
Municipal debt securities
Fair Value
Less than 12 months	32,488		32,488		10,651
12 months or more	0		0		624
Total	32,488		32,488		11,275
Gross Unrealized Losses
Less than 12 months	(391)		(391)		(112)
12 months or more	0		0		(6)
Total	(391)		(391)		(118)
Non-U.S. government securities:
Fair Value
Less than 12 months	3,903		3,903		9,664
12 months or more	0		0		0
Total	3,903		3,903		9,664
Gross Unrealized Losses
Less than 12 months	(142)		(142)		(47)
12 months or more	0		0		0
Total	(142)		(142)		(47)
Corporate debt securities
Fair Value
Less than 12 months	14,953		14,953		83,013
12 months or more	0		0		14,531
Total	14,953		14,953		97,544
Gross Unrealized Losses
Less than 12 months	(829)		(829)		(576)
12 months or more	0		0		(16)
Total	(829)		(829)		(592)
Residential and commercial mortgage securities
Fair Value
Less than 12 months	50,165		50,165		59,341
12 months or more	10,535		10,535		3,442
Total	60,700		60,700		62,783
Gross Unrealized Losses
Less than 12 months	(2,016)		(2,016)		(1,059)
12 months or more	(664)		(664)		(42)
Total	(2,680)		(2,680)		(1,101)
Asset-backed securities
Fair Value
Less than 12 months	155,022		155,022		78,813
12 months or more	74,305		74,305		109,536
Total	229,327		229,327		188,349
Gross Unrealized Losses
Less than 12 months	(2,974)		(2,974)		(202)
12 months or more	(2,682)		(2,682)		(1,219)
Total	(5,656)		(5,656)		(1,421)
Money market funds
Fair Value
Less than 12 months	65,010		65,010
12 months or more	0		0
Total	65,010		65,010
Gross Unrealized Losses
Less than 12 months	(10)		(10)
12 months or more	0		0
Total	(10)		(10)
Essent Re
Other Information
Fair value of the required investments on deposit in trusts	979,800		979,800		805,500
Essent Guaranty
Other Information
Assets on deposit under reinsurance agreement	8,500		8,500		6,400
Assets on deposit for the benefit of the sponsor	$ 12,000		$ 12,000		$ 6,400
Internal Investment Grade \| Credit Concentration Risk \| Securities
Other Information
Concentration risk, percentage			98.00%

Investments (Details 5) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Investments (Details 5) - USD ($) $ in Thousands	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Components of net investment income
Gross investment income	$ 20,927	$ 21,490	$ 42,663	$ 42,291
Investment expenses	(1,061)	(909)	(2,164)	(1,830)
Net investment income	19,866	20,581	40,499	40,461
Fixed maturities
Components of net investment income
Gross investment income	20,569	20,180	41,183	39,923
Short-term investments
Components of net investment income
Gross investment income	$ 358	$ 1,310	$ 1,480	$ 2,368

Reinsurance (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Reinsurance (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Net premiums written:
Direct	$ 228,044	$ 196,832	$ 434,024	$ 380,514
Ceded	(22,140)	(8,428)	(36,377)	(14,466)
Net premiums written	205,904	188,404	397,647	366,048
Net premiums earned:
Direct	233,611	196,918	454,344	380,747
Ceded	(22,140)	(8,428)	(36,377)	(14,466)
Net premiums earned	$ 211,471	$ 188,490	$ 417,967	$ 366,281

Reinsurance (Details 2) - USD ($) $ in Billions		6 Months Ended	12 Months Ended
Reinsurance (Details 2) - USD ($) $ in Billions	Sep. 01, 2019	Jun. 30, 2020	Dec. 31, 2022
Quota Share Reinsurance
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items]
Ceded premiums earned related to percent of risk on eligible single premium policies	40.00%
Ceded premiums earned related to percent of risk on all other eligible policies written	20.00%
Ceding commission, percent	20.00%
Profit commission, percent, maximum	60.00%
RIF ceded		$ 3.3
Other Reinsurance \| Essent Guaranty \| Mortgage Insurance
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items]
Amortization period		10 years
Variable Interest Entity, Not Primary Beneficiary \| Radnor Re \| Essent Guaranty \| Mortgage Insurance
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 \| Mortgage Insurance
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items]
Reinsurance retention policy, debt issued to cover insurance, term		10 years
Forecast \| Quota Share Reinsurance
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items]
Profit commission, percent, maximum			63.00%

Reinsurance (Details 3) - 2017	Jun. 30, 2020
Radnor Re 2018-1 Ltd.
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items]
Increase of margin component of reinsurance premium	50.00%
Panel of Reinsurers
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items]
Increase of margin component of reinsurance premium	50.00%

Reinsurance (Details 4) $ in Thousands	6 Months Ended
Reinsurance (Details 4) $ in Thousands	Jun. 30, 2020 USD ($)
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items]
Remaining Insurance in Force	$ 101,781,352
Remaining Risk in Force	26,169,037
Remaining Reinsurance in Force	1,576,442
Remaining First Layer Retention	896,154
Radnor Entities
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items]
Remaining Reinsurance in Force	1,280,029
Other Reinsurance
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items]
Remaining Reinsurance in Force	296,413
2015 & 2016
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items]
Remaining Insurance in Force	22,315,283
Remaining Risk in Force	6,025,734
Remaining Reinsurance in Force	216,480
Remaining First Layer Retention	207,849
2015 & 2016 \| Radnor Re 2019-2 Ltd
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items]
Remaining Reinsurance in Force	216,480
2015 & 2016 \| Other Reinsurance
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items]
Remaining Reinsurance in Force	0
2017
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items]
Remaining Insurance in Force	22,597,869
Remaining Risk in Force	5,742,641
Remaining Reinsurance in Force	407,290
Remaining First Layer Retention	220,308
2017 \| Radnor Re 2018-1 Ltd.
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items]
Remaining Reinsurance in Force	242,123
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	26,393,162
Remaining Risk in Force	6,676,437
Remaining Reinsurance in Force	401,681
Remaining First Layer Retention	252,392
2018 \| Radnor Re 2019-1 Ltd.
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items]
Remaining Reinsurance in Force	325,537
2018 \| Other Reinsurance
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items]
Remaining Reinsurance in Force	76,144
2019
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items]
Remaining Insurance in Force	30,475,038
Remaining Risk in Force	7,724,225
Remaining Reinsurance in Force	550,991
Remaining First Layer Retention	215,605
2019 \| Radnor Re 2020-1 Ltd.
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items]
Remaining Reinsurance in Force	495,889
2019 \| Other Reinsurance
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items]
Remaining Reinsurance in Force	$ 55,102

Reinsurance (Details 5) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Variable Interest Entity [Line Items]
Total VIE Assets	$ 4,899,948	$ 3,873,425
Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Total VIE Assets	1,280,029
Maximum Exposure to Loss, On - Balance Sheet	(3,459)
Maximum Exposure to Loss, Off - Balance Sheet	1,114
Maximum Exposure to Loss	(2,345)
Radnor Re 2018-1 Ltd. \| Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Total VIE Assets	242,123
Maximum Exposure to Loss, On - Balance Sheet	573
Maximum Exposure to Loss, Off - Balance Sheet	132
Maximum Exposure to Loss	705
Radnor Re 2019-1 Ltd. \| Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Total VIE Assets	325,537
Maximum Exposure to Loss, On - Balance Sheet	(1,858)
Maximum Exposure to Loss, Off - Balance Sheet	307
Maximum Exposure to Loss	(1,551)
Radnor Re 2019-2 Ltd. \| Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Total VIE Assets	216,480
Maximum Exposure to Loss, On - Balance Sheet	(1,409)
Maximum Exposure to Loss, Off - Balance Sheet	172
Maximum Exposure to Loss	(1,237)
Radnor Re 2020-1 Ltd. \| Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Total VIE Assets	495,889
Maximum Exposure to Loss, On - Balance Sheet	(765)
Maximum Exposure to Loss, Off - Balance Sheet	503
Maximum Exposure to Loss	$ (262)

Reserve for Losses and Loss Adjustment Expenses (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020 USD ($) loan	Jun. 30, 2019 USD ($) loan	Jun. 30, 2020 USD ($) loan	Jun. 30, 2019 USD ($) loan	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)
Reconciliation of the beginning and ending reserve balances for losses and loss adjustment expenses (LAE)
Reserve for losses and LAE at beginning of period			$ 69,362	$ 49,464
Less: Reinsurance recoverables	$ 7,761	$ 0	7,761	0	$ 71	$ 0
Net reserve for losses and LAE at beginning of period			69,291	49,464
Add provision for losses and LAE, net of reinsurance, occurring in:
Current period			197,195	23,182
Prior years			(13,255)	(11,115)
Net incurred losses and LAE during the current period	175,877	4,960	183,940	12,067
Deduct payments for losses and LAE, net of reinsurance, occurring in:
Current period			289	245
Prior years			9,813	6,148
Net loss and LAE payments during the current period			10,102	6,393
Net reserve for losses and LAE at end of period	243,129	55,138	243,129	55,138
Plus: Reinsurance recoverables	7,761	0	7,761	0	$ 71	$ 0
Reserve for losses and LAE at end of period	$ 250,890	$ 55,138	$ 250,890	$ 55,138
Loans in default at end of period \| loan	38,068	4,405	38,068	4,405

Reserve for Losses and Loss Adjustment Expenses (Details 2) $ in Thousands		3 Months Ended	6 Months Ended
	Dec. 31, 2019 USD ($)	Jun. 30, 2020 USD ($) loan	Jun. 30, 2020 USD ($) loan	Jun. 30, 2019 USD ($) loan	Dec. 31, 2018 USD ($)
Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract]
Incurred claims and claim adjustment expenses			$ 9,813	$ 6,148
Favorable prior year development			13,255	11,115
Reserve for losses and LAE, for prior years		$ 46,200	$ 46,200	$ 32,200
Debt Instrument [Line Items]
Loans in default at end of period \| loan		38,068	38,068	4,405
Reserve percentage defaults for three or less missed payments	9.00%
Reserve for losses and LAE	$ 69,362	$ 250,890	$ 250,890	$ 55,138	$ 49,464
COVID-19
Debt Instrument [Line Items]
Loans in default at end of period \| loan		34,352	34,352
Reserve rate		7.00%
Reserve for losses and LAE		$ 189,000	$ 189,000
Effect of percentage point decrease on liability claim and claim expense adjustment expense		$ 26,000	$ 26,000
Percent change used in calculation of expense			1.00%

Debt Obligations (Details) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Credit Facility [Line Items]
Credit facility, maximum borrowing capacity	$ 500,000,000
Amount outstanding, gross	$ 425,000,000	$ 225,000,000
Weighted average interest during period	1.93%	3.51%
Revolving Credit Facility
Credit Facility [Line Items]
Credit facility, maximum borrowing capacity	$ 275,000,000
Credit facility, commitment fee rate	0.25%
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 Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Loss Contingencies [Line Items]
Renewal term (up to)	10 years		10 years
Operating lease	$ 9,000		$ 9,000		$ 10,000
Present value of lease liabilities	11,316		11,316		$ 12,600
Lease cost	$ 573	$ 613	1,245	$ 1,214
Indemnifications related to contract underwriting services
Loss Contingencies [Line Items]
Amount paid for remedies (less than)			$ 100	$ 100

Commitments and Contingencies (Details 2) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Lease cost:
Operating lease cost	$ 601	$ 606	$ 1,301	$ 1,197
Short-term lease cost	5	39	10	81
Sublease income	(33)	(32)	(66)	(64)
Total lease cost	$ 573	$ 613	$ 1,245	$ 1,214
Other information:
Weighted average remaining lease term - operating leases	4 years 3 months 18 days	5 years 3 months 18 days	4 years 3 months 18 days	5 years 3 months 18 days
Weighted average discount rate - operating leases	4.00%	4.10%	4.00%	4.10%

Commitments and Contingencies (Details 3) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
2020 (July 1 through December 31)	$ 1,490
2021	2,999
2022	3,003
2023	2,752
2024	1,334
2025 and thereafter	793
Total lease payments to be paid	12,371
Less: Future interest expense	(1,055)
Present value of lease liabilities	$ 11,316	$ 12,600

Capital Stock (Details) $ / shares in Units, shares in Thousands, $ in Millions					1 Months Ended
	Sep. 10, 2020 $ / shares	Aug. 07, 2020 $ / shares	Jun. 12, 2020 $ / shares	Mar. 20, 2020 $ / shares	Jun. 30, 2020 USD ($) vote $ / shares shares	May 31, 2020 $ / shares	Feb. 29, 2020 $ / shares	Dec. 31, 2019 shares
Banking Regulation, Total Capital [Abstract]
Common shares, authorized (in shares) \| shares					233,333			233,333
Number of votes per share \| vote					1
Maximum percent of individual ownership					9.50%
Minimum number of votes per share for other shareholders under 9.5% shareholder provision \| vote					1
Number of shares issued in transaction \| shares					13,800
Price per share (in dollars per shares)					$ 33.25
Consideration received on transaction \| $					$ 440.0
Dividends Payable [Line Items]
Quarterly cash dividends declared (in dollars per share)						$ 0.16	$ 0.16
Quarterly cash dividends paid (in dollars per share)			$ 0.16	$ 0.16
Subsequent Event
Dividends Payable [Line Items]
Quarterly cash dividends declared (in dollars per share)		$ 0.16
Forecast
Dividends Payable [Line Items]
Quarterly cash dividends paid (in dollars per share)	$ 0.16

Stock-Based Compensation (Details) shares in Thousands	6 Months Ended
Stock-Based Compensation (Details) shares in Thousands	Jun. 30, 2020 $ / shares shares
Share Units
Number of Shares
Outstanding at beginning of year (in shares)	351
Granted (in shares)	350
Vested (in shares)	(192)
Forfeited (in shares)	(12)
Outstanding at end of period (in shares)	497
Weighted Average Grant Date Fair Value
Outstanding at beginning of year (in dollars per share) \| $ / shares	$ 39.78
Granted (in dollars per share) \| $ / shares	48.75
Vested (in dollars per share) \| $ / shares	37.76
Forfeited (in dollars per share) \| $ / shares	49.70
Outstanding at end of period (in dollars per share) \| $ / shares	$ 46.64
DEUs
Number of Shares
Outstanding at beginning of year (in shares)	5
Granted (in shares)	10
Vested (in shares)	(2)
Forfeited (in shares)	0
Outstanding at end of period (in shares)	13
Weighted Average Grant Date Fair Value
Outstanding at beginning of year (in dollars per share) \| $ / shares	$ 51.11
Granted (in dollars per share) \| $ / shares	31.38
Vested (in dollars per share) \| $ / shares	49.79
Forfeited (in dollars per share) \| $ / shares	34.46
Outstanding at end of period (in dollars per share) \| $ / shares	$ 35.83
Time and Performance- Based Share Awards \| Nonvested shares
Number of Shares
Outstanding at beginning of year (in shares)	394
Granted (in shares)	109
Vested (in shares)	(140)
Forfeited (in shares)	0
Outstanding at end of period (in shares)	363
Weighted Average Grant Date Fair Value
Outstanding at beginning of year (in dollars per share) \| $ / shares	$ 42.02
Granted (in dollars per share) \| $ / shares	51.52
Vested (in dollars per share) \| $ / shares	36.29
Outstanding at end of period (in dollars per share) \| $ / shares	$ 47.09
Time-Based Share Awards \| Nonvested shares
Number of Shares
Outstanding at beginning of year (in shares)	169
Granted (in shares)	69
Vested (in shares)	(85)
Forfeited (in shares)	0
Outstanding at end of period (in shares)	153
Weighted Average Grant Date Fair Value
Outstanding at beginning of year (in dollars per share) \| $ / shares	$ 41.31
Granted (in dollars per share) \| $ / shares	51.52
Vested (in dollars per share) \| $ / shares	40.47
Outstanding at end of period (in dollars per share) \| $ / shares	$ 46.34

Stock-Based Compensation (Details 2) - 2013 Plan - Nonvested shares - Certain members of senior management	1 Months Ended
	Feb. 29, 2020
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	6 Months Ended
Stock-Based Compensation (Details 3) - Nonvested shares	Jun. 30, 2020
Compounded Annual Book Value Per Share Growth 13%
Stock-based compensation
Compounded Annual Book Value Per Share Growth	13.00%
Nonvested Common Shares Earned	10.00%
Compounded Annual Book Value Per Share Growth 13% \| Maximum
Stock-based compensation
Compounded Annual Book Value Per Share Growth	13.00%
Nonvested Common Shares Earned	0.00%
Compounded Annual Book Value Per Share Growth 14%
Stock-based compensation
Compounded Annual Book Value Per Share Growth	14.00%
Nonvested Common Shares Earned	35.00%
Compounded Annual Book Value Per Share Growth 15%
Stock-based compensation
Compounded Annual Book Value Per Share Growth	15.00%
Nonvested Common Shares Earned	60.00%
Compounded Annual Book Value Per Share Growth 16%
Stock-based compensation
Compounded Annual Book Value Per Share Growth	16.00%
Nonvested Common Shares Earned	85.00%
Compounded Annual Book Value Per Share Growth 17% \| Minimum
Stock-based compensation
Compounded Annual Book Value Per Share Growth	17.00%
Nonvested Common Shares Earned	100.00%

Stock-Based Compensation (Details 4) - shares shares in Thousands		1 Months Ended		6 Months Ended
	May 08, 2020	Feb. 29, 2020	Jan. 31, 2020	Jun. 30, 2020
Share Units
Stock-based compensation
Shares granted (in shares)				350
Time-Based \| Nonvested shares
Stock-based compensation
Shares granted (in shares)				69
Employee \| Incentive Program Bonus Award Fiscal Year Performance \| Time-Based \| Share Units
Stock-based compensation
Award vesting period		3 years	3 years
Employee \| First Vesting Period \| Incentive Program Bonus Award Fiscal Year Performance \| Time-Based \| Share Units
Stock-based compensation
Vesting (as a percent)		33.33%	33.33%
Employee \| Second Vesting Period \| Incentive Program Bonus Award Fiscal Year Performance \| Time-Based \| Share Units
Stock-based compensation
Vesting (as a percent)		33.33%	33.33%
Employee \| Third Vesting Period \| Incentive Program Bonus Award Fiscal Year Performance \| Time-Based \| Share Units
Stock-based compensation
Vesting (as a percent)		33.33%	33.33%
Maximum \| Director \| Time-Based \| Share Units
Stock-based compensation
Award vesting period	1 year

Stock-Based Compensation (Details 5) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Stock-based compensation
Shares tendered by employees to pay employee withholding taxes (in shares)			141,801
Compensation expense, net of forfeitures, and related tax effects recognized in connection with nonvested shares
Compensation expense	$ 4,568	$ 4,222	$ 9,348	$ 8,322
Income tax benefit	868	$ 790	1,786	1,555
Nonvested Shares, Share Units Or DEU
Stock-based compensation
Total fair value of shares vested			18,500	$ 23,600
Nonvested Shares, Share Units
Stock-based compensation
Total unrecognized compensation expense	$ 33,600		$ 33,600
Expected weighted average period for recognition of expense			2 years 2 months 12 days

Dividend Restrictions (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019	Jun. 30, 2019
Dividends Restrictions
Stockholders' equity	$ 3,623,329	$ 2,984,845	$ 2,704,292
Essent Guaranty
Dividends Restrictions
Unassigned surplus	298,500
Essent Re
Dividends Restrictions
Stockholders' equity	1,000,000
Essent PA
Dividends Restrictions
Unassigned surplus	14,400
Essent Guaranty \| Quota share reinsurance \| Minimum \| Essent Re
Dividends Restrictions
Stockholders' equity	$ 100,000

- Definition

Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.

+ References + Details

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Components of income tax expense
Current	$ 7,969	$ 12,801	$ 18,097	$ 19,354
Deferred	(4,534)	13,527	12,513	28,973
Total income tax expense	3,435	26,328	30,610	48,327
Effective Income Tax Rate Reconciliation, Amount
Tax provision at weighted average statutory rates	2,750	25,795	30,126	49,733
Non-deductible expenses	707	439	1,421	763
Tax exempt interest, net of proration	(358)	(418)	(700)	(861)
Excess tax benefits from stock-based compensation	21	(22)	(599)	(1,978)
Other	315	534	362	670
Total income tax expense	$ 3,435	$ 26,328	$ 30,610	$ 48,327
% of pretax income
Tax provision at weighted average statutory rates	14.60%	15.90%	15.40%	15.90%
Non-deductible expenses	3.80%	0.30%	0.70%	0.30%
Tax exempt interest, net of proration	(1.90%)	(0.30%)	(0.40%)	(0.30%)
Excess tax benefits from stock-based compensation	0.10%	0.00%	(0.30%)	(0.60%)
Other	1.70%	0.30%	0.30%	0.20%
Total income tax expense	18.30%	16.20%	15.70%	15.50%

Income Taxes (Details 2) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Net deferred tax asset
Deferred tax assets	$ 28,124	$ 29,392
Deferred tax liabilities	(300,870)	(279,012)
Net deferred tax liability	(272,746)	(249,620)
Components of the net deferred tax asset
Contingency reserves	(273,077)	(261,855)
Unrealized (gain) loss on investments	(23,828)	(13,214)
Unearned premium reserve	15,233	16,641
Accrued expenses	4,279	3,391
Deferred policy acquisition costs	(3,330)	(3,298)
Unearned ceding commissions	3,021	3,227
Loss reserves	1,493	416
Start-up expenditures, net	1,274	1,410
Fixed assets	1,260	1,502
Nonvested shares	830	2,426
Change in fair market value of derivatives	726	370
Investments in limited partnerships	(400)	(400)
Prepaid expenses	(131)	(132)
Loss reserves - TCJA transition adjustment	(104)	(113)
Organizational expenditures	8	9
Net deferred tax liability	$ (272,746)	$ (249,620)

Income Taxes (Details 3) - USD ($) $ in Thousands	6 Months Ended		12 Months Ended
Income Taxes (Details 3) - USD ($) $ in Thousands	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Net purchases of T&L Bonds	$ 17,251	$ 28,000	$ 59,500
T&L Bonds held as of end of period	$ 279,136		$ 261,885

Earnings per Share (EPS) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Earnings Per Share [Abstract]
Net income	$ 15,380	$ 136,405	$ 164,903	$ 264,125
Basic weighted average shares outstanding (in shares)	102,500	97,798	100,224	97,697
Dilutive effect of nonvested shares (in shares)	105	372	242	440
Diluted weighted average shares outstanding (in shares)	102,605	98,170	100,466	98,137
Basic earnings per share (in dollars per share)	$ 0.15	$ 1.39	$ 1.65	$ 2.70
Diluted earnings per share (in dollars per share)	$ 0.15	$ 1.39	$ 1.64	$ 2.69

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22583-107794

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=121326447&loc=d3e1448-109256

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22595-107794

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=121326447&loc=d3e1337-109256

Reference 7: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 52
-URI http://asc.fasb.org/extlink&oid=120380238&loc=d3e4984-109258

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(23))
-URI http://asc.fasb.org/extlink&oid=120400993&loc=SL114874131-224263

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=120380238&loc=d3e3842-109258

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 7
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22644-107794

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(25))
-URI http://asc.fasb.org/extlink&oid=120395209&loc=SL114868664-224227

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=121326447&loc=d3e1252-109256

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121326447&loc=SL5780133-109256

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(27))
-URI http://asc.fasb.org/extlink&oid=120399700&loc=SL114874048-224260

+ 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

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 52
-URI http://asc.fasb.org/extlink&oid=120380238&loc=d3e4984-109258

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 7
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22644-107794

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=120380238&loc=d3e3842-109258

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=121326447&loc=d3e1252-109256

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22595-107794

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22583-107794

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121326447&loc=SL5780133-109256

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(27))
-URI http://asc.fasb.org/extlink&oid=120399700&loc=SL114874048-224260

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(23))
-URI http://asc.fasb.org/extlink&oid=120400993&loc=SL114874131-224263

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=121326447&loc=d3e1337-109256

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(25))
-URI http://asc.fasb.org/extlink&oid=120395209&loc=SL114868664-224227

+ Details

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1A
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121641772&loc=SL7669619-108580

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(22))
-URI http://asc.fasb.org/extlink&oid=120399700&loc=SL114874048-224260

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721683-107760

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22595-107794

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1B
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121641772&loc=SL7669625-108580

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 11: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(18))
-URI http://asc.fasb.org/extlink&oid=120400993&loc=SL114874131-224263

Reference 12: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(20))
-URI http://asc.fasb.org/extlink&oid=120395209&loc=SL114868664-224227

Reference 13: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=121586364&loc=d3e3602-108585

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22499-107794

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22663-107794

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=75031198&loc=d3e14064-108612

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8906-108599

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22583-107794

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 20: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121326447&loc=SL5780133-109256

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-Section 50
-Paragraph 3
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=114001798&loc=d3e33918-111571

Reference 22: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 23: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22658-107794

+ Details

Earnings per Share (EPS) (Details 2) - shares	3 Months Ended		6 Months Ended
Earnings per Share (EPS) (Details 2) - shares	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
EPS calculation
Antidilutive nonvested shares (in shares)	578,659	17,018	465,945	79,483
2018 Performance-Based Grants
EPS calculation
Percentage of award issuable if current period end were end of contingency period	100.00%		100.00%
2019 Performance-Based Grants
EPS calculation
Percentage of award issuable if current period end were end of contingency period	100.00%		100.00%
2020 Performance-Based Grants
EPS calculation
Percentage of award issuable if current period end were end of contingency period	0.00%		0.00%
Performance Shares
EPS calculation
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		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Other comprehensive income (loss):
Other comprehensive income, before tax	$ 91,877	$ 43,081	$ 74,824	$ 89,398
Other comprehensive income (loss):
Other comprehensive income, tax effect	(17,592)	(7,094)	(10,613)	(15,045)
Net of Tax
Stockholders equity, beginning of period			2,984,845
Other comprehensive income (loss):
Total other comprehensive income	74,285	35,987	64,211	74,353
Stockholders equity, end of period	3,623,329	2,704,292	3,623,329	2,704,292
Accumulated Other Comprehensive Income (Loss)
Before Tax
AOCI before tax, beginning of period	52,348	13,041	69,401	(33,276)
Other comprehensive income (loss):
AOCI before tax, end of period	144,225	56,122	144,225	56,122
Tax Effect
AOCI tax effect, beginning of period	(6,235)	(3,668)	(13,214)	4,283
Other comprehensive income (loss):
AOCI tax effect, end of period	(23,827)	(10,762)	(23,827)	(10,762)
Net of Tax
Stockholders equity, beginning of period	46,113	9,373	56,187	(28,993)
Other comprehensive income (loss):
Total other comprehensive income	74,285	35,987	64,211	74,353
Stockholders equity, end of period	120,398	45,360	120,398	45,360
Accumulated Net Investment Gains (Losses) On Investments
Other comprehensive income (loss):
Unrealized holding gains arising during the period, before tax	90,608	43,664	76,690	90,641
Less: Reclassification adjustment for losses (gains) included in net income, before tax	1,269	(583)	(1,866)	(1,243)
Other comprehensive income, before tax	91,877	43,081	74,824	89,398
Other comprehensive income (loss):
Unrealized holding gains arising during the period, tax effect	(17,344)	(7,211)	(10,941)	(15,282)
Less: Reclassification adjustment for losses (gains) included in net income, tax effect	(248)	117	328	237
Other comprehensive income, tax effect	(17,592)	(7,094)	(10,613)	(15,045)
Other comprehensive income (loss):
Unrealized holding gains arising during the period, net of tax	73,264	36,453	65,749	75,359
Less: Reclassification adjustment for losses (gains) included in net income, net of tax	1,021	(466)	(1,538)	(1,006)
Total other comprehensive income	$ 74,285	$ 35,987	$ 64,211	$ 74,353

Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Financial Assets:
Fair Value	$ 4,352,103	$ 3,350,747
Fair Value, Measurements, Recurring
Financial Assets:
Total assets at fair value	4,352,103	3,350,747
Fair Value, Measurements, Recurring \| U.S. Treasury securities
Financial Assets:
Fair Value	259,259	242,206
Fair Value, Measurements, Recurring \| U.S. agency securities
Financial Assets:
Fair Value	14,682	33,605
Fair Value, Measurements, Recurring \| U.S. agency mortgage-backed securities
Financial Assets:
Fair Value	830,124	848,334
Fair Value, Measurements, Recurring \| Municipal debt securities
Financial Assets:
Fair Value	465,063	361,638
Fair Value, Measurements, Recurring \| Non-U.S. government securities:
Financial Assets:
Fair Value	54,637	54,995
Fair Value, Measurements, Recurring \| Corporate debt securities
Financial Assets:
Fair Value	912,137	880,301
Fair Value, Measurements, Recurring \| Residential and commercial mortgage securities
Financial Assets:
Fair Value	312,511	288,281
Fair Value, Measurements, Recurring \| Asset-backed securities
Financial Assets:
Fair Value	385,486	326,025
Fair Value, Measurements, Recurring \| Money market funds
Financial Assets:
Fair Value	1,118,204	315,362
Fair Value, Measurements, Recurring \| Quoted Prices in Active Markets for Identical Instruments (Level 1)
Financial Assets:
Total assets at fair value	1,377,463	557,568
Fair Value, Measurements, Recurring \| Quoted Prices in Active Markets for Identical Instruments (Level 1) \| U.S. Treasury securities
Financial Assets:
Fair Value	259,259	242,206
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	1,118,204	315,362
Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2)
Financial Assets:
Total assets at fair value	2,974,640	2,793,179
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	14,682	33,605
Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2) \| U.S. agency mortgage-backed securities
Financial Assets:
Fair Value	830,124	848,334
Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2) \| Municipal debt securities
Financial Assets:
Fair Value	465,063	361,638
Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2) \| Non-U.S. government securities:
Financial Assets:
Fair Value	54,637	54,995
Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2) \| Corporate debt securities
Financial Assets:
Fair Value	912,137	880,301
Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2) \| Residential and commercial mortgage securities
Financial Assets:
Fair Value	312,511	288,281
Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2) \| Asset-backed securities
Financial Assets:
Fair Value	385,486	326,025
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

Statutory Accounting (Details) - USD ($) $ in Thousands	6 Months Ended
Statutory Accounting (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Essent Guaranty
Dividends Restrictions
Statutory net income	$ 120,883	$ 208,268
Statutory surplus	1,003,812	940,290
Contingency reserve liability	1,345,263	1,049,236
Increase in contingency reserve	148,000
Essent PA
Dividends Restrictions
Statutory net income	2,258	4,216
Statutory surplus	53,432	51,151
Contingency reserve liability	54,685	50,915
Increase in contingency reserve	1,700
Essent Re
Dividends Restrictions
Statutory net income	59,000	$ 82,700
Statutory capital and surplus	$ 1,000,000		$ 939,200