Essent Group Ltd. (NYSE:ESNT) today reported net income for the quarter ended March 31, 2024 of $181.7 million or $1.70 per diluted share, compared to $170.8 million or $1.59 per diluted share for the quarter ended March 31, 2023.

Essent also announced today that its Board of Directors has declared a quarterly cash dividend of $0.28 per common share. The dividend is payable on June 10, 2024, to shareholders of record on May 31, 2024.

"We are pleased with our financial results in the first quarter, as our high-quality portfolio and consumer resilience have translated to favorable credit performance, and the current rate environment has benefited investment income and persistency," said Mark A. Casale, Chairman and Chief Executive Officer. "The Essent franchise continues to grow, propelled by the strong performance of our mortgage insurance and reinsurance operations, and integration of the title business."

Financial Highlights:

New insurance written for the first quarter of 2024 was $8.3 billion, compared to $8.8 billion in the fourth quarter of 2023 and $12.9 billion in the first quarter of 2023.
Insurance in force as of March 31, 2024 was $238.5 billion, compared to $239.1 billion as of December 31, 2023 and $231.5 billion as of March 31, 2023.
Net investment income for the first quarter of 2024 was $52.1 million, up 20% from the first quarter of 2023.
During the first quarter of 2024, we entered into a quota share reinsurance transaction with a panel of highly rated third-party reinsurers. The quota share agreement covers 15% of all eligible policies written by Essent Guaranty, Inc. in the calendar year 2024.
On January 8, 2024, S&P Global Ratings raised its long-term financial strength and issuer credit ratings on Essent Guaranty, Inc. and Essent Reinsurance Ltd. to ‘A-' from ‘BBB+', with a stable outlook.
On March 27, 2024, Moody's Ratings affirmed the A3 insurance financial strength rating of Essent Guaranty, Inc. and raised the outlook to positive from stable.

Conference Call:

Essent management will hold a conference call at 10:00 AM Eastern time today to discuss its results. The conference call will be broadcast live over the Internet at http://ir.essentgroup.com/events-and-presentations/events/default.aspx. The call may also be accessed by dialing 888-330-2384 inside the U.S., or 240-789-2701 for international callers, using passcode 9824537 or by referencing Essent.

A replay of the webcast will be available on the Essent website approximately two hours after the live broadcast ends for a period of one year. A replay of the conference call will be available approximately two hours after the call ends for a period of two weeks, using the following dial-in numbers and passcode: 800-770-2030 inside the U.S., or 647-362-9199 for international callers, passcode 9824537.

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

Forward-Looking Statements:

This press release may include "forward-looking statements" which are subject to known and unknown risks and uncertainties, many of which may be beyond our control. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "will," "should," "expect," "plan," "anticipate," "believe," "estimate," "predict," or "potential" or the negative thereof or variations thereon or similar terminology. Actual events, results and outcomes may differ materially from our expectations due to a variety of known and unknown risks, uncertainties and other factors. Although it is not possible to identify all of these risks and factors, they include, among others, the following: changes in or to Fannie Mae and Freddie Mac (the "GSEs"), whether through Federal legislation, restructurings or a shift in business practices; failure to continue to meet the mortgage insurer eligibility requirements of the GSEs; competition for customers; lenders or investors seeking alternatives to private mortgage insurance; deteriorating economic conditions (including inflation, rising interest rates and other adverse economic trends); the impact of COVID-19 and related economic conditions; an increase in the number of loans insured through Federal government mortgage insurance programs, including those offered by the Federal Housing Administration; decline in new insurance written and franchise value due to loss of a significant customer; decline in the volume of low down payment mortgage originations; the definition of "Qualified Mortgage" reducing the size of the mortgage origination market or creating incentives to use government mortgage insurance programs; the definition of "Qualified Residential Mortgage" reducing the number of low down payment loans or lenders and investors seeking alternatives to private mortgage insurance; the implementation of the Basel III Capital Accord discouraging the use of private mortgage insurance; a decrease in the length of time that insurance policies are in force; uncertainty of loss reserve estimates; our non-U.S. operations becoming subject to U.S. Federal income taxation; becoming considered a passive foreign investment company for U.S. Federal income tax purposes; and other risks and factors described in Part I, Item 1A "Risk Factors" of our Annual Report on Form 10-K for the year ended December 31, 2023 filed with the Securities and Exchange Commission on February 16, 2024, as subsequently updated through other reports we file with the Securities and Exchange Commission. Any forward-looking information presented herein is made only as of the date of this press release, and we do not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

About the Company:

Essent Group Ltd. (NYSE:ESNT) is a Bermuda-based holding company (collectively with its subsidiaries, "Essent") which serves the housing finance industry by offering private mortgage insurance, reinsurance, risk management products and title insurance and settlement services to mortgage lenders, borrowers, and investors to support homeownership. Additional information regarding Essent may be found at www.essentgroup.com.

Source: Essent Group Ltd.



Essent Group Ltd. and Subsidiaries
Financial Results and Supplemental Information (Unaudited)
Quarter Ended March 31, 2024


Exhibit A		Condensed Consolidated Statements of Comprehensive Income (Unaudited)
Exhibit B		Condensed Consolidated Balance Sheets (Unaudited)
Exhibit C		Consolidated Historical Quarterly Data
Exhibit D		U.S. Mortgage Insurance Portfolio Historical Quarterly Data
Exhibit E		New Insurance Written - U.S. Mortgage Insurance Portfolio
Exhibit F		Insurance in Force and Risk in Force - U.S. Mortgage Insurance Portfolio
Exhibit G		Other Risk in Force
Exhibit H		U.S. Mortgage Insurance Portfolio Vintage Data
Exhibit I		U.S. Mortgage Insurance Portfolio Reinsurance Vintage Data
Exhibit J		U.S. Mortgage Insurance Portfolio Geographic Data
Exhibit K		Rollforward of Defaults and Reserve for Losses and LAE - U.S. Mortgage Insurance Portfolio
Exhibit L		Detail of Reserves by Default Delinquency - U.S. Mortgage Insurance Portfolio
Exhibit M		Investments Available for Sale
Exhibit N		U.S. Mortgage Insurance Company Capital
Exhibit O		Ratios and Reconciliation of Non-GAAP Financial Measures

				Exhibit A

Essent Group Ltd. and Subsidiaries
Condensed Consolidated Statements of Comprehensive Income (Unaudited)


	Three Months Ended March 31,
(In thousands, except per share amounts)	2024			2023
Revenues:
Direct premiums written	$	268,931		$	239,491
Ceded premiums		(30,391	)		(33,591	)
Net premiums written		238,540			205,900
Decrease in unearned premiums		7,050			5,358
Net premiums earned		245,590			211,258
Net investment income		52,085			43,236
Realized investment gains (losses), net		(1,140	)		(488	)
Income (loss) from other invested assets		(1,915	)		(2,702	)
Other income		3,737			4,942
Total revenues		298,357			256,246

Losses and expenses:
Provision (benefit) for losses and LAE		9,913			(180	)
Other underwriting and operating expenses		57,349			48,195
Premiums retained by agents		9,491			—
Interest expense		7,862			6,936
Total losses and expenses		84,615			54,951

Income before income taxes		213,742			201,295
Income tax expense		32,023			30,468
Net income	$	181,719		$	170,827


Earnings per share:
Basic	$	1.72		$	1.60
Diluted		1.70			1.59

Weighted average shares outstanding:
Basic		105,697			106,943
Diluted		106,770			107,585

Net income	$	181,719		$	170,827

Other comprehensive income (loss):
Change in unrealized appreciation (depreciation) of investments		(21,766	)		58,753
Total other comprehensive income (loss)		(21,766	)		58,753
Comprehensive income	$	159,953		$	229,580

				Exhibit B

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


	March 31,			December 31,
(In thousands, except per share amounts)	2024			2023
*Assets*
Investments
Fixed maturities available for sale, at fair value	$	4,172,237		$	4,335,008
Short-term investments available for sale, at fair value		1,196,837			928,731
Total investments available for sale		5,369,074			5,263,739
Other invested assets		279,625			277,226
Total investments		5,648,699			5,540,965
Cash		164,255			141,787
Accrued investment income		35,817			35,689
Accounts receivable		68,932			63,266
Deferred policy acquisition costs		8,980			9,139
Property and equipment		43,751			41,304
Prepaid federal income tax		467,183			470,646
Goodwill and intangible assets, net		72,271			72,826
Other assets		55,095			51,051
Total assets	$	6,564,983		$	6,426,673

*Liabilities and Stockholders' Equity*
Liabilities
Reserve for losses and LAE	$	267,324		$	260,095
Unearned premium reserve		133,235			140,285
Net deferred tax liability		368,955			362,753
Credit facility borrowings, net of deferred costs		422,184			421,920
Other accrued liabilities		147,131			139,070
Total liabilities		1,338,829			1,324,123

Commitments and contingencies

Stockholders' Equity
Common shares, $0.015 par value:
Authorized - 233,333; issued and outstanding - 106,742 shares in 2024 and 106,597 shares in 2023		1,601			1,599
Additional paid-in capital		1,293,424			1,299,869
Accumulated other comprehensive loss		(302,262	)		(280,496	)
Retained earnings		4,233,391			4,081,578
Total stockholders' equity		5,226,154			5,102,550

Total liabilities and stockholders' equity	$	6,564,983		$	6,426,673

Return on average equity (1)		14.1	%		14.6	%

(1) The 2024 return on average equity is calculated by dividing annualized year-to-date 2024 net income by average equity. The 2023 return on average equity is calculated by dividing full year 2023 net income by average equity.

													Exhibit C
Essent Group Ltd. and Subsidiaries
Supplemental Information
Consolidated Historical Quarterly Data

	2024			2023
Selected Income Statement Data	March 31			December 31			September 30			June 30			March 31
(In thousands, except per share amounts)
Revenues:
Net premiums earned:
U.S. Mortgage Insurance Portfolio	$	212,479		$	211,083		$	209,351		$	195,502		$	196,565
GSE and other risk share		17,826			17,166			16,850			17,727			14,693
Title insurance		15,285			17,365			20,604			—			—
Net premiums earned		245,590			245,614			246,805			213,229			211,258
Net investment income		52,085			50,581			47,072			45,250			43,236
Realized investment (losses) gains, net		(1,140	)		(4,892	)		(235	)		(1,589	)		(488	)
(Loss) income from other invested assets		(1,915	)		(421	)		(3,143	)		(4,852	)		(2,702	)
Other income (loss) (1)		3,737			6,395			5,609			8,090			4,942
Total revenues		298,357			297,277			296,108			260,128			256,246

Losses and expenses:
Provision (benefit) for losses and LAE		9,913			19,640			10,822			1,260			(180	)
Other underwriting and operating expenses		57,349			55,248			54,814			42,174			48,195
Premiums retained by agents		9,491			11,475			13,175			—			—
Interest expense		7,862			7,953			7,854			7,394			6,936
Total losses and expenses		84,615			94,316			86,665			50,828			54,951

Income before income taxes		213,742			202,961			209,443			209,300			201,295
Income tax expense (2)		32,023			27,594			31,484			37,067			30,468
Net income	$	181,719		$	175,367		$	177,959		$	172,233		$	170,827

Earnings per share:
Basic	$	1.72		$	1.66		$	1.68		$	1.62		$	1.60
Diluted		1.70			1.64			1.66			1.61			1.59

Weighted average shares outstanding:
Basic		105,697			105,733			105,979			106,249			106,943
Diluted		106,770			106,823			107,025			107,093			107,585

Book value per share	$	48.96		$	47.87		$	44.98		$	44.24		$	43.18
Return on average equity (annualized)		14.1	%		14.2	%		14.9	%		14.7	%		15.0	%


Credit Facility
Borrowings outstanding	$	425,000		$	425,000		$	425,000		$	425,000		$	425,000
Undrawn committed capacity	$	400,000		$	400,000		$	400,000		$	400,000		$	400,000
Weighted average interest rate (end of period)		7.06	%		7.11	%		7.07	%		6.87	%		6.52	%
Debt-to-capital		7.52	%		7.69	%		8.12	%		8.24	%		8.38	%

(1) Other income includes net favorable (unfavorable) changes in the fair value of embedded derivatives associated with certain of our third-party reinsurance agreements, which for the quarters ended March 31, 2024, December 31, 2023, September 30, 2023, June 30, 2023 and March 31, 2023, were ($1,902), $412, ($898), $2,726, and ($368), respectively.
(2) Income tax expense for the quarters ended March 31, 2024, December 31, 2023, September 30, 2023, June 30, 2023 and March 31, 2023 includes ($1,041), ($1,132), ($763), ($888) and ($368), respectively, of discrete tax (benefit) expense associated with realized and unrealized gains and losses. Income tax expense for the quarter ended March 31, 2024 also includes ($616) of excess tax benefits associated with the vesting of common shares and common share units. Income tax expense for the quarter ended December 31, 2023 also includes a $2,731 net benefit associated with the recognition of a deferred tax asset for unrealized losses on the investment portfolios of Essent Group and Essent Re upon the enactment of the Bermuda Corporate Income Tax. Income tax expense for the quarter ended June 30, 2023 also includes $5,295 of net discrete tax expense associated with prior year tax returns.

	Exhibit D
Essent Group Ltd. and Subsidiaries
Supplemental Information
U.S. Mortgage Insurance Portfolio Historical Quarterly Data


	2024			2023
Other Data:	March 31			December 31			September 30			June 30			March 31
($ in thousands)

U.S. Mortgage Insurance Portfolio
New insurance written	$	8,323,544		$	8,769,160		$	12,505,823		$	13,498,080		$	12,893,789
New risk written		2,289,508			2,409,340			3,458,467			3,726,513			3,548,015

Average insurance in force	$	238,595,268		$	239,005,961		$	237,270,093		$	233,484,941		$	228,885,174
Insurance in force (end of period)	$	238,477,402		$	239,078,262		$	238,661,612		$	235,649,884		$	231,537,417
Gross risk in force (end of period) (1)	$	64,247,810		$	64,061,374		$	63,605,057		$	62,403,400		$	60,879,979
Risk in force (end of period)	$	54,686,533		$	54,591,590		$	53,920,308		$	53,290,643		$	51,469,312
Policies in force		815,752			822,012			825,248			821,690			815,751
Weighted average coverage (2)		26.9	%		26.8	%		26.7	%		26.5	%		26.3	%
Annual persistency		86.9	%		86.9	%		86.6	%		85.8	%		84.4	%

Loans in default (count)		13,992			14,819			13,391			12,480			12,773
Percentage of loans in default		1.72	%		1.80	%		1.62	%		1.52	%		1.57	%

U.S. Mortgage Insurance Portfolio premium rate:
Base average premium rate (3)		0.41	%		0.40	%		0.40	%		0.40	%		0.40	%
Single premium cancellations (4)		—	%		—	%		—	%		—	%		—	%
Gross average premium rate		0.41	%		0.40	%		0.40	%		0.40	%		0.40	%
Ceded premiums		(0.05	%)		(0.05	%)		(0.05	%)		(0.07	%)		(0.06	%)
Net average premium rate		0.36	%		0.35	%		0.35	%		0.33	%		0.34	%


(1) Gross risk in force includes risk ceded under third-party reinsurance.
(2) Weighted average coverage is calculated by dividing end of period gross risk in force by end of period insurance in force.
(3) Base average premium rate is calculated by dividing annualized base premiums earned by average insurance in force for the period.
(4) Single premium cancellations is calculated by dividing annualized premiums on the cancellation of non-refundable single premium policies by average insurance in force for the period.

											Exhibit E

Essent Group Ltd. and Subsidiaries
Supplemental Information - U.S. Mortgage Insurance Portfolio
New Insurance Written: Flow


NIW by Credit Score
	Three Months Ended
	March 31, 2024					December 31, 2023					March 31, 2023
($ in thousands)
>=760	$	3,596,600		43.2	%	$	3,708,316		42.3	%	$	4,847,058		37.7	%
740-759		1,410,446		16.9			1,531,800		17.5			2,397,982		18.6
720-739		1,244,648		15.0			1,333,537		15.2			2,204,844		17.1
700-719		1,140,430		13.7			1,256,250		14.3			2,002,892		15.5
680-699		563,419		6.8			581,913		6.6			1,100,815		8.5
<=679		368,001		4.4			357,344		4.1			340,198		2.6
Total	$	8,323,544		100.0	%	$	8,769,160		100.0	%	$	12,893,789		100.0	%

Weighted average credit score		747					747					745



NIW by LTV
	Three Months Ended
	March 31, 2024					December 31, 2023					March 31, 2023
($ in thousands)
85.00% and below	$	559,899		6.7	%	$	642,636		7.3	%	$	963,009		7.5	%
85.01% to 90.00%		1,732,131		20.8			1,871,854		21.3			2,685,828		20.8
90.01% to 95.00%		4,517,655		54.3			4,660,032		53.1			7,430,113		57.6
95.01% and above		1,513,859		18.2			1,594,638		18.3			1,814,839		14.1
Total	$	8,323,544		100.0	%	$	8,769,160		100.0	%	$	12,893,789		100.0	%

Weighted average LTV		93	%				93	%				93	%



NIW by Product
	Three Months Ended
	March 31, 2024					December 31, 2023					March 31, 2023
Single Premium policies				2.0	%				2.5	%				4.1	%
Monthly Premium policies				98.0					97.5					95.9
				100.0	%				100.0	%				100.0	%



NIW by Purchase vs. Refinance
	Three Months Ended
	March 31, 2024					December 31, 2023					March 31, 2023
Purchase				97.4	%				98.7	%				98.6	%
Refinance				2.6					1.3					1.4
				100.0	%				100.0	%				100.0	%

											Exhibit F

Essent Group Ltd. and Subsidiaries
Supplemental Information
Insurance in Force and Risk in Force - U.S. Mortgage Insurance Portfolio


Portfolio by Credit Score
IIF by FICO score	March 31, 2024				December 31, 2023				March 31, 2023
($ in thousands)
>=760	$	96,712,431	40.6	%	$	97,085,244	40.6	%	$	94,560,292	40.8	%
740-759		41,477,680	17.4			41,490,720	17.4			39,870,193	17.2
720-739		37,342,339	15.7			37,435,781	15.7			35,950,319	15.5
700-719		32,023,895	13.4			31,932,469	13.4			30,103,007	13.0
680-699		19,664,999	8.2			19,780,944	8.3			19,338,187	8.4
<=679		11,256,058	4.7			11,353,104	4.6			11,715,419	5.1
Total	$	238,477,402	100.0	%	$	239,078,262	100.0	%	$	231,537,417	100.0	%

Weighted average credit score		746				746				746

Gross RIF by FICO score	March 31, 2024				December 31, 2023				March 31, 2023
($ in thousands)
>=760	$	25,806,552	40.2	%	$	25,752,549	40.2	%	$	24,613,214	40.4	%
740-759		11,326,253	17.6			11,268,607	17.6			10,612,582	17.4
720-739		10,206,055	15.9			10,179,683	15.9			9,602,368	15.8
700-719		8,757,648	13.6			8,687,001	13.6			8,017,430	13.2
680-699		5,321,802	8.3			5,330,894	8.3			5,126,581	8.4
<=679

Essent Group Ltd. Announces First Quarter 2024 Results and Declares Quarterly Dividend