Essent Group Ltd. Reports Second Quarter 2019 Results & Declares Inaugural Dividend

HAMILTON, Bermuda--(BUSINESS WIRE)--Essent Group Ltd. (NYSE: ESNT) today reported net income for the quarter ended June 30, 2019 of $136.4 million or $1.39 per diluted share, compared to $111.8 million or $1.14 per diluted share for the quarter ended June 30, 2018.

Essent also announced today that its Board of Directors has declared a quarterly cash dividend of $0.15 per common share. The dividend is payable on September 16, 2019, to shareholders of record on September 4, 2019.

“We are pleased with our strong financial results for the second quarter and our continued progress in transitioning our franchise to a buy, manage and distribute model through utilization of EssentEDGE and reinsurance,” said Mark Casale, Chairman and Chief Executive Officer. “Our performance, along with the use of reinsurance, continues to generate excess capital. As a result, we are pleased to announce our inaugural dividend and believe that it is a tangible demonstration of the benefits in a buy, manage and distribute operating model.”

Financial Highlights:

• Insurance in force as of June 30, 2019 was $153.3 billion, compared to $143.2 billion as of March 31, 2019 and $122.5 billion as of June 30, 2018.
• New insurance written for the second quarter was $18.0 billion, compared to $11.0 billion in the first quarter of 2019 and $12.9 billion in the second quarter of 2018.
• Net premiums earned for the second quarter were $188.5 million, compared to $177.8 million in the first quarter of 2019 and $157.0 million in the second quarter of 2018.
• The expense ratio for the second quarter was 22.0%, compared to 23.1% in the first quarter of 2019 and 23.2% in the second quarter of 2018.
• The provision for losses and LAE for the second quarter was $5.0 million, compared to a provision of $7.1 million in the first quarter of 2019 and a provision of $1.8 million in the second quarter of 2018.
• The percentage of loans in default as of June 30, 2019 was 0.66%, compared to 0.65% as of March 31, 2019 and 0.64% as of June 30, 2018.
• The combined ratio for the second quarter was 24.7%, compared to 27.1% in the first quarter of 2019 and 24.4% in the second quarter of 2018.
• The consolidated balance of cash and investments at June 30, 2019 was $3.2 billion, including cash and investment balances at Essent Group Ltd. of $72.0 million.
• The combined risk-to-capital ratio of the U.S. mortgage insurance business, which includes statutory capital for both Essent Guaranty, Inc. and Essent Guaranty of PA, Inc., was 13.6:1 as of June 30, 2019.
• In June, Essent Guaranty, Inc. obtained $333.8 million of excess of loss reinsurance coverage on mortgage insurance policies written by Essent in 2015 and 2016. The reinsurance is fully collateralized by ten-year mortgage insurance-linked notes (“ILNs”) issued by Radnor Re 2019-2 Ltd., an unaffiliated special purpose insurer.

Conference Call

Essent management will hold a conference call at 10:00 AM Eastern time today to discuss its results. The conference call will be broadcast live over the Internet at http://ir.essentgroup.com/investors/webcasts-and-presentations/event-calendar/default.aspx. The call may also be accessed by dialing 833-287-0797 inside the U.S., or 647-689-4456 for international callers, using passcode 7877815 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: 800-585-8367 inside the U.S., or 416-621-4642 for international callers, passcode 7877815.

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

Forward-Looking Statements

This press release may include “forward-looking statements” which are subject to known and unknown risks and uncertainties, many of which may be beyond our control. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "will," “should,” “expect,” "plan," "anticipate," "believe," “estimate,” “predict,” or "potential" or the negative thereof or variations thereon or similar terminology. Actual events, results and outcomes may differ materially from our expectations due to a variety of known and unknown risks, uncertainties and other factors. Although it is not possible to identify all of these risks and factors, they include, among others, the following: changes in or to Fannie Mae and Freddie Mac (the “GSEs”), whether through Federal legislation, restructurings or a shift in business practices; failure to continue to meet the mortgage insurer eligibility requirements of the GSEs; competition for customers; lenders or investors seeking alternatives to private mortgage insurance; an increase in the number of loans insured through Federal government mortgage insurance programs, including those offered by the Federal Housing Administration; decline in new insurance written and franchise value due to loss of a significant customer; decline in the volume of low down payment mortgage originations; the definition of "Qualified Mortgage" reducing the size of the mortgage origination market or creating incentives to use government mortgage insurance programs; the definition of "Qualified Residential Mortgage" reducing the number of low down payment loans or lenders and investors seeking alternatives to private mortgage insurance; the implementation of the Basel III Capital Accord discouraging the use of private mortgage insurance; a decrease in the length of time that insurance policies are in force; uncertainty of loss reserve estimates; deteriorating economic conditions; our non-U.S. operations becoming subject to U.S. Federal income taxation; becoming considered a passive foreign investment company for U.S. Federal income tax purposes; and other risks and factors described in Part I, Item 1A “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2018 filed with the Securities and Exchange Commission on February 19, 2019. Any forward-looking information presented herein is made only as of the date of this press release, and we do not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

Non-GAAP Financial Measures

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

About the Company

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

Source: Essent Group Ltd.

Essent Group Ltd. and Subsidiaries
Financial Results and Supplemental Information (Unaudited)
Quarter Ended June 30, 2019
Exhibit A	Condensed Consolidated Statements of Comprehensive Income (Unaudited)
Exhibit B	Condensed Consolidated Balance Sheets (Unaudited)
Exhibit C	Historical Quarterly Data
Exhibit D	New Insurance Written
Exhibit E	Insurance in Force and Risk in Force
Exhibit F	Other Risk in Force
Exhibit G	Portfolio Vintage Data
Exhibit H	Reinsurance Vintage Data
Exhibit I	Portfolio Geographic Data
Exhibit J	Defaults, Reserve for Losses and LAE, and Claims
Exhibit K	Investments Available for Sale
Exhibit L	Insurance Company Capital
Exhibit M	Reconciliation of Non-GAAP Financial Measure - Adjusted Book Value per Share

										Exhibit A
Essent Group Ltd. and Subsidiaries
Condensed Consolidated Statements of Comprehensive Income (Unaudited)
	Three Months Ended June 30,						Six Months Ended June 30,
(In thousands, except per share amounts)	2019			2018			2019			2018
Revenues:
Net premiums written	$	188,404		$	168,404		$	366,048		$	333,629
Decrease (increase) in unearned premiums	86			(11,446		)	233			(24,113		)
Net premiums earned	188,490			156,958			366,281			309,516
Net investment income	20,581			15,134			40,461			28,848
Realized investment gains, net	583			439			1,243			636
Other income	2,238			1,237			4,433			2,231
Total revenues	211,892			173,768			412,418			341,231
Losses and expenses:
Provision for losses and LAE	4,960			1,813			12,067			7,122
Other underwriting and operating expenses	41,520			36,428			82,550			74,552
Interest expense	2,679			2,618			5,349			5,068
Total losses and expenses	49,159			40,859			99,966			86,742
Income before income taxes	162,733			132,909			312,452			254,489
Income tax expense	26,328			21,154			48,327			31,665
Net income	$	136,405		$	111,755		$	264,125		$	222,824
Earnings per share:
Basic	$	1.39		$	1.15		$	2.70		$	2.29
Diluted	1.39			1.14			2.69			2.28
Weighted average shares outstanding:
Basic	97,798			97,426			97,697			97,362
Diluted	98,170			97,866			98,137			97,908
Net income	$	136,405		$	111,755		$	264,125		$	222,824
Other comprehensive income (loss):
Change in unrealized appreciation (depreciation) of investments	35,987			(7,246		)	74,353			(35,996		)
Total other comprehensive income (loss)	35,987			(7,246		)	74,353			(35,996		)
Comprehensive income	$	172,392		$	104,509		$	338,478		$	186,828
Loss ratio	2.6		%	1.2		%	3.3		%	2.3		%
Expense ratio	22.0			23.2			22.5			24.1
Combined ratio	24.7		%	24.4		%	25.8		%	26.4		%

				Exhibit B
Essent Group Ltd. and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)
	June 30,			December 31,
($ in thousands)	2019			2018
Assets
Investments
Fixed maturities available for sale, at fair value	$	2,848,746		$	2,605,666
Short-term investments available for sale, at fair value	251,468			154,400
Total investments available for sale	3,100,214			2,760,066
Other invested assets	69,853			30,952
Total investments	3,170,067			2,791,018
Cash	25,255			64,946
Accrued investment income	18,387			17,627
Accounts receivable	40,395			36,881
Deferred policy acquisition costs	15,830			16,049
Property and equipment	17,324			7,629
Prepaid federal income tax	230,385			202,385
Other assets	22,256			13,436
Total assets	$	3,539,899		$	3,149,971
Liabilities and Stockholders' Equity
Liabilities
Reserve for losses and LAE	$	55,138		$	49,464
Unearned premium reserve	295,234			295,467
Net deferred tax liability	216,660			172,642
Credit facility borrowings, net of deferred costs	223,950			223,664
Securities purchased payable	5,041			2,041
Other accrued liabilities	39,584			40,976
Total liabilities	835,607			784,254
Commitments and contingencies
Stockholders' Equity
Common shares	1,476			1,472
Additional paid-in capital	1,110,893			1,110,800
Accumulated other comprehensive income (loss)	45,360			(28,993		)
Retained earnings	1,546,563			1,282,438
Total stockholders' equity	2,704,292			2,365,717
Total liabilities and stockholders' equity	$	3,539,899		$	3,149,971
Return on average equity (1)	20.9		%	21.7		%

(1) The 2019 return on average equity is calculated by dividing annualized year-to-date 2019 net income by average equity. The 2018 return on average equity is calculated by dividing full year 2018 net income by average equity.

													Exhibit C
Essent Group Ltd. and Subsidiaries
Supplemental Information
Historical Quarterly Data
	2019						2018
Selected Income Statement Data	June 30			March 31			December 31			September 30			June 30			March 31
(In thousands, except per share amounts)
Revenues:
Net premiums written	$	188,404		$	177,644		$	176,437		$	175,221		$	168,404		$	165,225
Net premiums earned (1)	188,490			177,791			173,301			166,675			156,958			152,558
Other revenues (2)	23,402			22,735			19,823			18,323			16,810			14,905
Total revenues	211,892			200,526			193,124			184,998			173,768			167,463
Losses and expenses:
Provision for losses and LAE (3)	4,960			7,107			(999		)	5,452			1,813			5,309
Other underwriting and operating expenses	41,520			41,030			39,449			36,899			36,428			38,124
Interest expense	2,679			2,670			2,611			2,500			2,618			2,450
Total losses and expenses	49,159			50,807			41,061			44,851			40,859			45,883
Income before income taxes	162,733			149,719			152,063			140,147			132,909			121,580
Income tax expense (4)	26,328			21,999			23,535			24,136			21,154			10,511
Net income	$	136,405		$	127,720		$	128,528		$	116,011		$	111,755		$	111,069
Earnings per share:
Basic	$	1.39		$	1.31		$	1.32		$	1.19		$	1.15		$	1.14
Diluted	1.39			1.30			1.31			1.18			1.14			1.13
Weighted average shares outstanding:
Basic	97,798			97,595			97,450			97,438			97,426			97,298
Diluted	98,170			98,104			98,066			98,013			97,866			97,951
Other Data:
Loss ratio (5)	2.6		%	4.0		%	(0.6		)%	3.3		%	1.2		%	3.5		%
Expense ratio (6)	22.0			23.1			22.8			22.1			23.2			25.0
Combined ratio	24.7		%	27.1		%	22.2		%	25.4		%	24.4		%	28.5		%
Return on average equity (annualized)	20.9		%	20.9		%	22.4		%	21.5		%	21.8		%	22.6		%

(1) Net premiums earned are net of premiums ceded to third-party reinsurers. Premiums ceded totaled $8,428, $6,038, $3,731, $3,158, $3,585 and $294 in the three months ended June 30, 2019, March 31, 2019, December 31, 2018, September 30, 2018, June 30, 2018 and March 31, 2018, respectively.

(2) Certain of our third-party reinsurance agreements contain an embedded derivative as the premium ceded under those agreements will vary based on changes in interest rates. Other revenues for the three months ended June 30, 2019 and March 31, 2019 include a $1,160 and $1,424 favorable increase, respectively, in the fair value of these embedded derivatives.

(3) Provision for losses and LAE for the three months ended December 31, 2018 includes a $9,941 reduction associated with previously identified hurricane-related defaults based on the performance to date and our expectations of the amount of ultimate losses on the remaining delinquencies.

(4) Income tax expense for the three months ended March 31, 2019 and 2018 was reduced by $1,956 and $9,549, respectively, of excess tax benefits associated with the vesting of common shares and common share units during each period. Income tax expense for the three months ended September 30, 2018 includes $1,450 of expense associated with accrual to return adjustments associated with the completion of the 2017 U.S. federal income tax return.

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

(6) Expense ratio is calculated by dividing other underwriting and operating expenses by net premiums earned.

													Exhibit C, continued
Essent Group Ltd. and Subsidiaries
Supplemental Information
Historical Quarterly Data
	2019						2018
Other Data, continued:	June 30			March 31			December 31			September 30			June 30			March 31
($ in thousands)
U.S. Mortgage Insurance Portfolio
Flow:
New insurance written	$	17,973,505		$	10,945,307		$	11,408,542		$	13,913,191		$	12,850,642		$	9,336,150
New risk written	4,485,217			2,713,389			2,838,530			3,430,942			3,201,610			2,295,314
Bulk:
New insurance written	$	29,524		$	55,002		$	—		$	—		$	—		$	—
New risk written	2,129			6,542			—			—			—			—
Total:
Average gross premium rate (7)	0.51		%	0.50		%	0.50		%	0.51		%	0.52		%	0.52		%
Average net premium rate (8)	0.49		%	0.48		%	0.49		%	0.50		%	0.51		%	0.52		%
New insurance written	$	18,003,029		$	11,000,309		$	11,408,542		$	13,913,191		$	12,850,642		$	9,336,150
New risk written	$	4,487,346		$	2,719,931		$	2,838,530		$	3,430,942		$	3,201,610		$	2,295,314
Insurance in force (end of period)	$	153,317,157		$	143,181,641		$	137,720,786		$	131,249,957		$	122,501,246		$	115,250,949
Gross risk in force (end of period) (9)	$	38,531,090		$	35,925,830		$	34,482,448		$	32,786,194		$	30,579,106		$	28,691,561
Risk in force (end of period)	$	37,034,687		$	34,744,417		$	33,892,869		$	32,361,782		$	30,154,694		$	28,267,149
Policies in force	666,705			629,808			608,135			581,570			546,576			517,215
Weighted average coverage (10)	25.1		%	25.1		%	25.0		%	25.0		%	25.0		%	24.9		%
Annual persistency	84.8		%	85.1		%	84.9		%	84.0		%	83.0		%	83.5		%
Loans in default (count)	4,405			4,096			4,024			3,538			3,519			4,442
Percentage of loans in default	0.66		%	0.65		%	0.66		%	0.61		%	0.64		%	0.86		%
Other Risk in Force
GSE and other risk share (11)	$	802,530		$	771,175		$	655,384		$	612,750		$	592,493		$	557,692
Credit Facility
Borrowings outstanding	$	225,000		$	225,000		$	225,000		$	225,000		$	225,000		$	265,000
Undrawn committed capacity	$	275,000		$	275,000		$	275,000		$	275,000		$	275,000		$	110,000
Weighted average interest rate	4.41		%

(7) Average gross premium rate is calculated by dividing annualized premiums earned for the U.S. mortgage insurance portfolio, before reductions for premiums ceded under third-party reinsurance, by average insurance in force for the period.

(8) Average net premium rate is calculated by dividing annualized net premiums earned for the U.S. mortgage insurance portfolio by average insurance in force for the period.

(9) Gross risk in force includes risk ceded under third-party reinsurance.

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

(11) GSE and other risk share includes GSE risk share and other reinsurance transactions. Essent Re provides insurance or reinsurance relating to the risk in force on loans in reference pools acquired by Freddie Mac and Fannie Mae.

																Exhibit D
Essent Group Ltd. and Subsidiaries
Supplemental Information
New Insurance Written: Flow
NIW by Credit Score
	Three Months Ended										Six Months Ended
	June 30, 2019					June 30, 2018					June 30, 2019					June 30, 2018
($ in thousands)
>=760	$	7,313,814		40.7	%	$	5,460,040		42.5	%	$	11,784,317		40.8	%	$	9,292,258		41.9	%
740-759	3,073,807			17.1		2,217,294			17.3		4,985,948			17.2		3,767,432			17.0
720-739	2,572,580			14.3		1,881,334			14.6		4,138,193			14.3		3,220,479			14.5
700-719	2,140,363			11.9		1,544,303			12.0		3,492,908			12.1		2,689,203			12.1
680-699	1,534,959			8.5		940,587			7.3		2,442,928			8.4		1,750,205			7.9
<=679	1,337,982			7.5		807,084			6.3		2,074,518			7.2		1,467,215			6.6
Total	$	17,973,505		100.0	%	$	12,850,642		100.0	%	$	28,918,812		100.0	%	$	22,186,792		100.0	%
Weighted average credit score	744					746					744					745
NIW by LTV
	Three Months Ended										Six Months Ended
	June 30, 2019					June 30, 2018					June 30, 2019					June 30, 2018
($ in thousands)
85.00% and below	$	2,220,430		12.3	%	$	1,491,036		11.6	%	$	3,663,263		12.7	%	$	2,703,372		12.2	%
85.01% to 90.00%	4,851,313			27.0		3,589,257			27.9		7,801,661			27.0		6,297,769			28.4
90.01% to 95.00%	7,525,709			41.9		5,584,368			43.5		12,185,046			42.1		9,662,576			43.5
95.01% and above	3,376,053			18.8		2,185,981			17.0		5,268,842			18.2		3,523,075			15.9
Total	$	17,973,505		100.0	%	$	12,850,642		100.0	%	$	28,918,812		100.0	%	$	22,186,792		100.0	%
Weighted average LTV	92		%			92		%			92		%			92		%
NIW by Product
	Three Months Ended										Six Months Ended
	June 30, 2019					June 30, 2018					June 30, 2019					June 30, 2018
Single Premium policies				11.1	%				14.5	%				11.6	%				17.0	%
Monthly Premium policies				88.9					85.5					88.4					83.0
				100.0	%				100.0	%				100.0	%				100.0	%
NIW by Purchase vs. Refinance
	Three Months Ended										Six Months Ended
	June 30, 2019					June 30, 2018					June 30, 2019					June 30, 2018
Purchase				84.5	%				93.1	%				85.7	%				89.8	%
Refinance				15.5					6.9					14.3					10.2
				100.0	%				100.0	%				100.0	%				100.0	%

														Exhibit E
Essent Group Ltd. and Subsidiaries
Supplemental Information
Insurance in Force and Risk in Force
Portfolio by Credit Score
IIF by FICO score	June 30, 2019					March 31, 2019					June 30, 2018
($ in thousands)
>=760	$	64,977,185		42.4	%	$	61,191,185		42.7	%	$	53,145,884		43.4	%
740-759	25,747,495			16.8		23,919,745			16.7		20,127,254			16.4
720-739	22,203,764			14.5		20,728,151			14.5		17,605,819			14.4
700-719	17,723,067			11.5		16,454,730			11.5		13,836,837			11.3
680-699	12,697,092			8.3		11,774,884			8.2		10,145,188			8.3
<=679	9,968,554			6.5		9,112,946			6.4		7,640,264			6.2
Total	$	153,317,157		100.0	%	$	143,181,641		100.0	%	$	122,501,246		100.0	%
Weighted average credit score	746					746					746
Gross RIF by FICO score	June 30, 2019					March 31, 2019					June 30, 2018
($ in thousands)
>=760	$	16,258,608		42.2	%	$	15,303,364		42.6	%	$	13,245,851		43.3	%
740-759	6,478,145			16.8		6,012,004			16.7		5,052,409			16.5
720-739	5,643,012			14.6		5,257,051			14.6		4,438,671			14.5
700-719	4,473,871			11.6		4,144,221			11.6		3,450,490			11.3
680-699	3,217,062			8.4		2,974,758			8.3		2,540,531			8.3
<=679	2,460,392			6.4		2,234,432			6.2		1,851,154			6.1
Total	$	38,531,090		100.0	%	$	35,925,830		100.0	%	$	30,579,106		100.0	%
Portfolio by LTV
IIF by LTV	June 30, 2019					March 31, 2019					June 30, 2018
($ in thousands)
85.00% and below	$	16,525,093		10.8	%	$	15,581,861		10.9	%	$	13,868,422		11.3	%
85.01% to 90.00%	44,234,770			28.9		42,045,657			29.3		37,558,668			30.6
90.01% to 95.00%	72,549,888			47.3		68,414,122			47.8		59,491,807			48.6
95.01% and above	20,007,406			13.0		17,140,001			12.0		11,582,349			9.5
Total	$	153,317,157		100.0	%	$	143,181,641		100.0	%	$	122,501,246		100.0	%
Weighted average LTV	92		%			92		%			92		%
Gross RIF by LTV	June 30, 2019					March 31, 2019					June 30, 2018
($ in thousands)
85.00% and below	$	1,907,272		5.0	%	$	1,797,794		5.0	%	$	1,584,294		5.2	%
85.01% to 90.00%	10,625,848			27.6		10,083,981			28.1		8,950,145			29.3
90.01% to 95.00%	20,784,261			53.9		19,605,747			54.6		17,068,140			55.8
95.01% and above	5,213,709			13.5		4,438,308			12.3		2,976,527			9.7
Total	$	38,531,090		100.0	%	$	35,925,830		100.0	%	$	30,579,106		100.0	%
Portfolio by Loan Amortization Period
IIF by Loan Amortization Period	June 30, 2019					March 31, 2019					June 30, 2018
($ in thousands)
FRM 30 years and higher	$	143,827,908		93.8	%	$	133,725,528		93.4	%	$	112,753,292		92.0	%
FRM 20-25 years	2,901,947			1.9		2,912,323			2.1		3,040,764			2.5
FRM 15 years	3,391,072			2.2		3,335,714			2.3		3,638,461			3.0
ARM 5 years and higher	3,196,230			2.1		3,208,076			2.2		3,068,729			2.5
Total	$	153,317,157		100.0	%	$	143,181,641		100.0	%	$	122,501,246		100.0	%

							Exhibit F
Essent Group Ltd. and Subsidiaries
Supplemental Information
Other Risk in Force
($ in thousands)	June 30, 2019			March 31, 2019			June 30, 2018
GSE and other risk share (1)	$	802,530		$	771,175		$	592,493
Weighted average credit score	748			747			748
Weighted average LTV	85		%	85		%	85		%

(1) GSE and other risk share includes GSE risk share and other reinsurance transactions. Essent Reinsurance Ltd. ("Essent Re") provides insurance or reinsurance relating to the risk in force on loans in reference pools acquired by Freddie Mac and Fannie Mae.

																						Exhibit G
Essent Group Ltd. and Subsidiaries
Supplemental Information
Portfolio Vintage Data
June 30, 2019
								Insurance in Force
Year	Original Insurance Written ($ in thousands)		Remaining Insurance in Force ($ in thousands)		% Remaining of Original Insurance		Number of Policies in Force	% Purchase		>90% LTV		>95% LTV		FICO < 700		FICO >= 760		% FRM		Incurred Loss Ratio (Inception to Date) (1)		Number of Loans in Default
2010	$	245,898	$	6,255	2.5	%	46	71.1	%	60.6	%	0.0	%	1.5	%	63.4	%	100.0	%	2.6	%	—
2011	3,229,720		186,982		5.8		1,091	70.5		61.5		0.3		6.2		52.7		97.8		3.8		24
2012	11,241,161		1,405,500		12.5		7,534	73.1		70.9		0.7		5.4		56.9		99.0		2.3		92
2013	21,152,638		4,237,378		20.0		22,517	79.7		64.3		2.2		7.8		51.4		98.8		2.3		246
2014	24,799,434		7,141,438		28.8		38,770	89.2		66.4		4.7		15.7		41.1		96.9		3.1		508
2015	26,193,656		11,777,504		45.0		56,811	84.7		58.9		2.7		14.7		43.8		98.0		2.8		632
2016	34,949,319		22,423,350		64.2		100,102	83.0		57.9		6.9		13.6		45.5		98.5		3.1		860
2017	43,858,322		34,821,992		79.4		154,934	86.9		59.4		14.1		15.8		41.7		97.1		4.2		1,250
2018	47,508,525		42,790,095		90.1		177,166	92.0		61.0		17.6		14.9		41.0		97.9		4.8		751
2019 (through June 30)	29,003,338		28,526,663		98.4		107,734	85.6		60.5		18.4		15.7		40.5		98.5		1.6		42
Total	$	242,182,011	$	153,317,157	63.3		666,705	87.1		60.4		13.0		14.8		42.4		97.9		3.1		4,405
(1) Incurred loss ratio is calculated by dividing the sum of case reserves and cumulative amount paid for claims by cumulative net premiums earned.

																											Exhibit H
Essent Group Ltd. and Subsidiaries
Supplemental Information
Reinsurance Vintage Data
June 30, 2019
($ in thousands)					Original Reinsurance in Force								Remaining Reinsurance in Force
Year	Remaining Insurance in Force		Remaining Risk in Force		ILN			Other Reinsurance			Total		ILN		Other Reinsurance		Total		Losses Ceded to Date		Original First Layer Retention		Remaining First Layer Retention		Quarter-to-Date Premiums Ceded		Year-to-Date Premiums Ceded
2015 & 2016	$	30,826,843	$	8,331,331	$	333,844	(1)	$	—		$	333,844	$	333,844	$	—	$	333,844	$	—	$	208,111	$	208,111	$	340	$	340
2017	33,789,568		8,468,723		424,412		(2)	165,167		(3)	589,579		405,558		165,167		570,725		—		224,689		224,017		3,692		7,423
2018	41,985,709		10,531,739		473,184		(4)	118,650		(5)	591,834		473,184		118,650		591,834		—		253,643		253,643		4,396		6,703
Total	$	106,602,120	$	27,331,793	$	1,231,440		$	283,817		$	1,515,257	$	1,212,586	$	283,817	$	1,496,403	$	—	$	686,443	$	685,771	$	8,428	$	14,466
(1) Reinsurance provided by Radnor Re 2019-2 Ltd., through its issuance of mortgage insurance-linked notes ("ILNs"), effective June 2019.
(2) Reinsurance provided by Radnor Re 2018-1 Ltd., through its issuance of ILNs, effective March 2018.
(3) Reinsurance provided by a panel of reinsurers effective November 2018. Coverage provided immediately above the coverage provided by Radnor Re 2018-1 Ltd.
(4) Reinsurance provided by Radnor Re 2019-1 Ltd., through its issuance of ILNs, effective February 2019.
(5) Reinsurance provided by a panel of reinsurers effective February 2019. Coverage provided pari-passu to the coverage provided by Radnor Re 2019-1 Ltd.

					Exhibit I
Essent Group Ltd. and Subsidiaries
Supplemental Information
Portfolio Geographic Data
IIF by State
	June 30, 2019		March 31, 2019		June 30, 2018
CA	9.6	%	9.3	%	9.2	%
TX	8.0		7.9		8.0
FL	7.5		7.4		7.2
WA	4.6		4.7		4.8
IL	3.8		3.8		3.9
NJ	3.7		3.7		3.7
CO	3.6		3.4		3.3
NC	3.4		3.5		3.5
OH	3.4		3.3		3.2
GA	3.4		3.4		3.4
All Others	49.0		49.6		49.8
Total	100.0	%	100.0	%	100.0	%
Gross RIF by State
	June 30, 2019		March 31, 2019		June 30, 2018
CA	9.4	%	9.0	%	8.9	%
TX	8.3		8.1		8.2
FL	7.6		7.6		7.3
WA	4.6		4.7		4.9
IL	3.7		3.7		3.8
NJ	3.6		3.7		3.6
CO	3.5		3.3		3.2
GA	3.4		3.5		3.5
NC	3.4		3.5		3.5
OH	3.4		3.4		3.3
All Others	49.1		49.5		49.8
Total	100.0	%	100.0	%	100.0	%

Exhibit J
Essent Group Ltd. and Subsidiaries
Supplemental Information
Defaults, Reserve for Losses and LAE, and Claims
Rollforward of Insured Loans in Default
	Three Months Ended						Six Months Ended
	June 30,			June 30,			June 30,			June 30,
	2019			2018			2019			2018
Beginning default inventory		4,096			4,442			4,024			4,783
Plus: new defaults		2,849			1,701			5,767			3,695
Less: cures		(2,433	)		(2,572	)		(5,182	)		(4,842	)
Less: claims paid		(106	)		(52	)		(194	)		(115	)
Less: rescissions and denials, net		(1	)		—			(10	)		(2	)
Ending default inventory		4,405			3,519			4,405			3,519
Rollforward of Reserve for Losses and LAE
	Three Months Ended						Six Months Ended
	June 30,			June 30,			June 30,			June 30,
($ in thousands)	2019			2018			2019			2018
Reserve for losses and LAE at beginning of period	$	53,484		$	49,966		$	49,464		$	46,850
Add provision for losses and LAE occurring in:
Current year		11,354			6,576			23,182			16,528
Prior years		(6,394	)		(4,763	)		(11,115	)		(9,406	)
Incurred losses and LAE during the period		4,960			1,813			12,067			7,122
Deduct payments for losses and LAE occurring in:
Current year		230			211			245			211
Prior years		3,076			1,552			6,148			3,745
Loss and LAE payments during the period		3,306			1,763			6,393			3,956
Reserve for losses and LAE at end of period	$	55,138		$	50,016		$	55,138		$	50,016
Claims
	Three Months Ended						Six Months Ended
	June 30,			June 30,			June 30,			June 30,
	2019			2018			2019			2018
Number of claims paid		106			52			194			115
Total amount paid for claims (in thousands)	$	3,208		$	1,676		$	6,107		$	3,819
Average amount paid per claim (in thousands)	$	30		$	32		$	31		$	33
Severity		69	%		64	%		74	%		70	%

Exhibit J, continued
Essent Group Ltd. and Subsidiaries
Supplemental Information
Defaults, Reserve for Losses and LAE, and Claims
	June 30, 2019
	Number of Policies in Default		Percentage of Policies in Default		Amount of Reserves		Percentage of Reserves		Defaulted RIF		Reserves as a Percentage of Defaulted RIF
($ in thousands)
Missed Payments:
Three payments or less	2,511		57	%	$	12,646	25	%	$	133,536	9	%
Four to eleven payments	1,443		33			22,292	44			78,047	29
Twelve or more payments	369		8			11,583	23			22,093	52
Pending claims	82		2			4,055	8			4,657	87
Total case reserves	4,405		100	%		50,576	100	%	$	238,333	21
IBNR						3,792
LAE						770
Total reserves for losses and LAE					$	55,138
Average reserve per default:
Case					$	11.5
Total					$	12.5
Default Rate	0.66	%
	December 31, 2018
	Number of Policies in Default		Percentage of Policies in Default		Amount of Reserves		Percentage of Reserves		Defaulted RIF		Reserves as a Percentage of Defaulted RIF
($ in thousands)
Missed Payments:
Three payments or less	2,254		56	%	$	12,005	27	%	$	119,666	10	%
Four to eleven payments	1,350		33			20,031	44			72,222	28
Twelve or more payments	357		9			10,523	23			20,419	52
Pending claims	63		2			2,749	6			3,182	86
Total case reserves	4,024		100	%		45,308	100	%	$	215,489	21
IBNR						3,398
LAE						758
Total reserves for losses and LAE					$	49,464
Average reserve per default:
Case					$	11.3
Total					$	12.3
Default Rate	0.66	%
	June 30, 2018
	Number of Policies in Default		Percentage of Policies in Default		Amount of Reserves		Percentage of Reserves		Defaulted RIF		Reserves as a Percentage of Defaulted RIF
($ in thousands)
Missed Payments:
Three payments or less	1,543		44	%	$	9,077	20	%	$	84,685	11	%
Four to eleven payments	1,675		47			26,688	58			96,627	28
Twelve or more payments	268		8			8,368	18			14,476	58
Pending claims	33		1			1,640	4			1,946	84
Total case reserves	3,519		100	%		45,773	100	%	$	197,734	23
IBNR						3,433
LAE						810
Total reserves for losses and LAE					$	50,016
Average reserve per default:
Case					$	13.0
Total					$	14.2
Default Rate	0.64	%

Exhibit K
Essent Group Ltd. and Subsidiaries
Supplemental Information
Investments Available for Sale
Investments Available for Sale by Asset Class
Asset Class	June 30, 2019					December 31, 2018
($ in thousands)	Fair Value			Percent		Fair Value		Percent
U.S. Treasury securities	$	305,152		9.8	%	$	289,892	10.5	%
U.S. agency securities		33,473		1.1			32,997	1.2
U.S. agency mortgage-backed securities		724,382		23.4			637,178	23.1
Municipal debt securities		402,715		13.0			483,879	17.5
Non-U.S. government securities		47,670		1.5			45,001	1.6
Corporate debt securities		774,506		25.0			725,201	26.3
Residential and commercial mortgage securities		250,793		8.1			121,838	4.4
Asset-backed securities		352,053		11.3			284,997	10.3
Money market funds		209,470		6.8			139,083	5.1
Total investments available for sale	$	3,100,214		100.0	%	$	2,760,066	100.0	%
Investments Available for Sale by Credit Rating
Rating (1)	June 30, 2019					December 31, 2018
($ in thousands)	Fair Value			Percent		Fair Value		Percent
Aaa	$	1,638,005		52.8	%	$	1,362,781	49.4	%
Aa1		127,936		4.1			124,435	4.5
Aa2		159,631		5.2			196,218	7.1
Aa3		164,922		5.3			143,315	5.2
A1		216,738		7.0			222,073	8.0
A2		174,426		5.6			199,238	7.2
A3		174,948		5.7			146,300	5.3
Baa1		170,537		5.5			162,695	5.9
Baa2		161,799		5.2			140,168	5.1
Baa3		44,854		1.5			26,805	1.0
Below Baa3		66,418		2.1			36,038	1.3
Total investments available for sale	$	3,100,214		100.0	%	$	2,760,066	100.0	%
(1) Based on ratings issued by Moody's, if available. S&P or Fitch rating utilized if Moody's not available.
Investments Available for Sale by Duration and Book Yield
Effective Duration	June 30, 2019					December 31, 2018
($ in thousands)	Fair Value			Percent		Fair Value		Percent
< 1 Year	$	812,953		26.2	%	$	529,545	19.2	%
1 to < 2 Years		401,313		12.9			285,060	10.3
2 to < 3 Years		277,580		9.0			251,763	9.1
3 to < 4 Years		395,083		12.7			278,804	10.1
4 to < 5 Years		303,485		9.8			429,005	15.6
5 or more Years		909,800		29.4			985,889	35.7
Total investments available for sale	$	3,100,214		100.0	%	$	2,760,066	100.0	%
Pre-tax investment income yield:
Three months ended June 30, 2019		2.84	%
Six months ended June 30, 2019		2.85	%
Net cash and investments at holding company, Essent Group Ltd.:
($ in thousands)
As of June 30, 2019	$	71,972
As of December 31, 2018	$	78,405

Exhibit L
Essent Group Ltd. and Subsidiaries
Supplemental Information
Insurance Company Capital
	June 30, 2019		December 31, 2018
($ in thousands)
U.S. Mortgage Insurance Subsidiaries:
Combined statutory capital (1)	$	2,091,907	$	1,886,929
Combined net risk in force (2)	$	28,459,376	$	26,233,783
Risk-to-capital ratios: (3)
Essent Guaranty, Inc.		14.1:1		14.4:1
Essent Guaranty of PA, Inc.		3.8:1		4.2:1
Combined (4)		13.6:1		13.9:1
Essent Reinsurance Ltd.:
Stockholder's equity (GAAP basis)	$	899,117	$	798,612
Net risk in force (2)	$	9,323,473	$	8,265,763
(1) Combined statutory capital equals the sum of statutory capital of Essent Guaranty, Inc. plus Essent Guaranty of PA, Inc., after eliminating the impact of intercompany transactions. Statutory capital is computed based on accounting practices prescribed or permitted by the Pennsylvania Insurance Department and the National Association of Insurance Commissioners Accounting Practices and Procedures Manual.
(2) Net risk in force represents total risk in force, net of reinsurance ceded and net of exposures on policies for which loss reserves have been established.
(3) The risk-to-capital ratio is calculated as the ratio of net risk in force to statutory capital.
(4) The combined risk-to-capital ratio equals the sum of the net risk in force of Essent Guaranty, Inc. and Essent Guaranty of PA, Inc. divided by the combined statutory capital.

Exhibit M

Essent Group Ltd. and Subsidiaries
Supplemental Information
Reconciliation of Non-GAAP Financial Measure - Adjusted Book Value per Share

We believe that long-term growth in Adjusted Book Value per Share is an important measure of our financial performance and is a measure used to determine vesting on certain restricted stock granted to senior management under the Company’s long-term incentive plan. Adjusted Book Value per Share is a financial measure that is not calculated under standards or rules that comprise accounting principles generally accepted in the United States (GAAP) and is referred to as a non-GAAP measure. Adjusted Book Value per Share may be defined or calculated differently by other companies. Adjusted Book Value per Share is one measure used to monitor our results and should not be viewed as a substitute for those measures determined in accordance with GAAP.

Adjusted Book Value per Share is calculated by dividing Adjusted Book Value by Common Shares and Share Units Outstanding. Adjusted Book Value is defined as consolidated stockholders’ equity of the Company, excluding accumulated other comprehensive income (loss) plus the proceeds, if any, from the assumed exercise of all "in-the-money" options, warrants and similar instruments. Common Shares and Share Units Outstanding is defined as total common shares outstanding plus all equity instruments (including restricted share units) issued to management and the Board of Directors and any "in-the-money" options, warrants and similar instruments. Accumulated other comprehensive income (loss) includes unrealized gains and losses that arise from changes in the market value of the Company’s investments. The Company does not view these unrealized gains and losses to be indicative of our fundamental operating performance. As of June 30, 2019, December 31, 2018 and June 30, 2018, the Company does not have any options, warrants and similar instruments outstanding.

The following table sets forth the reconciliation of Adjusted Book Value to the most comparable GAAP amount as of June 30, 2019, December 31, 2018 and June 30, 2018 in accordance with Regulation G:

(In thousands, except per share amounts)	June 30, 2019		December 31, 2018			June 30, 2018
Numerator:
Total Stockholders' Equity (Book Value)	$	2,704,292	$	2,365,717		$	2,103,571
Subtract: Accumulated Other Comprehensive Income (Loss)		45,360		(28,993	)		(39,248	)
Adjusted Book Value	$	2,658,932	$	2,394,710		$	2,142,819
Denominator:
Total Common Shares Outstanding		98,396		98,139			98,128
Add: Restricted Share Units Outstanding		365		449			452
Total Common Shares and Share Units Outstanding		98,761		98,588			98,580
Adjusted Book Value per Share	$	26.92	$	24.29		$	21.74