Form 8-K Essent Group Ltd. For: Feb 08

February 8, 2019 7:17 AM

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of report (Date of Earliest Event Reported): February 8, 2019

ESSENT GROUP LTD.

(Exact name of registrant as specified in its charter)




Bermuda	001-36157	Not Applicable
(State of Incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

Clarendon House 2 Church Street Hamilton HM11, Bermuda
(Address of Principal Executive Offices and Zip Code)

(441) 297‑9901
(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:



¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Item 2.02. Results of Operations and Financial Condition

On February 8, 2019, Essent Group Ltd. (the “Company”) issued a press release announcing its financial results for the quarter and year ended December 31, 2018. A copy of this press release is furnished as Exhibit 99.1 to this report.

The information in this report, including Exhibit 99.1, has been “furnished” and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to liability under that section. The information in this report shall not be incorporated by reference into any filing or other document under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing or document.

Item 9.01. Financial Statements and Exhibits



(d)	Exhibits



Exhibit No.		Description
99.1		Press Release issued by Essent Group Ltd. on February 8, 2019.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: February 8, 2019

ESSENT GROUP LTD.


By:	/s/ Lawrence E. McAlee

Name: Lawrence E. McAlee

Title: Senior Vice President and Chief Financial Officer

Exhibit 99.1

Essent Group Ltd. Reports Fourth Quarter & Full Year 2018 Results

HAMILTON, Bermuda--(BUSINESS WIRE)--February 8, 2019--Essent Group Ltd. (NYSE: ESNT) today reported net income for the quarter ended December 31, 2018 of $128.5 million or $1.31 per diluted share, which includes a reduction of $9.9 million, or $.08 per diluted share, of the $11.1 million loss reserve established in the fourth quarter of 2017 for defaulted loans identified as related to Hurricanes Harvey and Irma. For the full year 2018, net income was $467.4 million or $4.77 per diluted share.

“We are pleased with our strong fourth quarter and full year 2018 results as we continued growing our high credit quality and profitable mortgage insurance portfolio,” said Mark Casale, Chairman and Chief Executive Officer. “Also during 2018, we successfully piloted our risk based pricing engine, EssentEDGE^TM, and executed in the reinsurance markets. We believe that increased sophistication in the front-end and back-end of our business positions us well to shape our insured portfolio and profitably manage the long tail mortgage credit risk.”

Financial Highlights:


•	Insurance in force as of December 31, 2018 was $137.7 billion, compared to $131.2 billion as of September 30, 2018 and $110.5 billion as of December 31, 2017.


•	New insurance written for the fourth quarter was $11.4 billion, compared to $13.9 billion in the third quarter of 2018 and $11.2 billion in the fourth quarter of 2017.


•	Net premiums earned for the fourth quarter were $173.3 million, compared to $166.7 million in the third quarter of 2018 and $148.0 million in the fourth quarter of 2017.


•	The expense ratio for the fourth quarter was 22.8%, compared to 22.1% in the third quarter of 2018 and 24.7% in the fourth quarter of 2017.

•

The provision for losses and LAE for the fourth quarter was a benefit of $1.0 million, compared to a provision of $5.5 million in the third quarter of 2018 and a provision of $17.5 million in the fourth quarter of 2017. The provision in the fourth quarter of 2018 included a $9.9 million release of the $11.1 million reserve associated with loans identified as related to Hurricanes Harvey and Irma that was established in the fourth quarter of 2017.


•	The percentage of loans in default as of December 31, 2018 was 0.66%, compared to 0.61% as of September 30, 2018 and 0.96% as of December 31, 2017.


•	The combined ratio for the fourth quarter was 22.2%, compared to 25.4% in the third quarter of 2018 and 36.4% in the fourth quarter of 2017.


•	The consolidated balance of cash and investments at December 31, 2018 was $2.9 billion, including cash and investment balances at Essent Group Ltd. of $78.4 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 13.9:1 as of December 31, 2018.


•	In December, Essent Guaranty, Inc. entered into an excess of loss (“XOL”) reinsurance agreement with a panel of U.S. and global reinsurers for $165.2 million of additional protection on mortgage insurance policies written by Essent in 2017.

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 866-393-4306 inside the U.S., or 734-385-2616 for international callers, using passcode 1164457 or by referencing Essent.

A replay of the webcast will be available on the Essent website approximately two hours after the live broadcast ends for a period of one year. A replay of the conference call will be available approximately two hours after the call ends for a period of two weeks, using the following dial-in numbers and passcode: 855-859-2056 inside the U.S., or 404-537-3406 for international callers, passcode 1164457.

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, 2017 filed with the Securities and Exchange Commission on February 20, 2018. 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 and Year Ended December 31, 2018


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



										Exhibit A

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


	Three Months Ended December 31,						Year Ended December 31,
(In thousands, except per share amounts)	2018			2017			2018			2017
Revenues:
Net premiums written	$	176,437		$	161,771		$	685,287		$	570,186
Increase in unearned premiums	(3,136		)	(13,795		)	(35,795		)	(40,056		)
Net premiums earned	173,301			147,976			649,492			530,130
Net investment income	18,597			11,765			64,091			40,226
Realized investment gains, net	158			252			1,318			2,015
Other income	1,068			1,117			4,452			4,140
Total revenues	193,124			161,110			719,353			576,511

Losses and expenses:
Provision for losses and LAE	(999		)	17,456			11,575			27,232
Other underwriting and operating expenses	39,449			36,480			150,900			145,533
Interest expense	2,611			1,817			10,179			5,178
Total losses and expenses	41,061			55,753			172,654			177,943

Income before income taxes	152,063			105,357			546,699			398,568
Income tax expense (benefit)	23,535			(57,281		)	79,336			18,821
Net income	$	128,528		$	162,638		$	467,363		$	379,747


Earnings per share:
Basic	$	1.32		$	1.69		$	4.80		$	4.07
Diluted	1.31			1.65			4.77			3.99

Weighted average shares outstanding:
Basic	97,450			96,429			97,403			93,330
Diluted	98,066			98,497			97,974			95,211

Net income	$	128,528		$	162,638		$	467,363		$	379,747

Other comprehensive income (loss):
Change in unrealized appreciation (depreciation) of investments	18,456			(7,230		)	(25,741		)	8,068
Total other comprehensive income (loss)	18,456			(7,230		)	(25,741		)	8,068
Comprehensive income	$	146,984		$	155,408		$	441,622		$	387,815


Loss ratio	(0.6		)%	11.8		%	1.8		%	5.1		%
Expense ratio	22.8			24.7			23.2			27.5
Combined ratio	22.2		%	36.4		%	25.0		%	32.6		%



				Exhibit B

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


	December 31,			December 31,
(In thousands, except per share amounts)	2018			2017
Assets
Investments
Fixed maturities available for sale, at fair value	$	2,605,666		$	1,992,371
Short-term investments available for sale, at fair value	154,400			312,694
Total investments available for sale	2,760,066			2,305,065
Other invested assets	30,952			500
Total investments	2,791,018			2,305,565
Cash	64,946			43,524
Accrued investment income	17,627			12,807
Accounts receivable	36,881			29,752
Deferred policy acquisition costs	16,049			15,354
Property and equipment	7,629			6,979
Prepaid federal income tax	202,385			252,157
Other assets	13,436			8,230

Total assets	$	3,149,971		$	2,674,368

Liabilities and Stockholders' Equity
Liabilities
Reserve for losses and LAE	$	49,464		$	46,850
Unearned premium reserve	295,467			259,672
Net deferred tax liability	172,642			127,636
Credit facility borrowings, net of deferred costs	223,664			248,591
Securities purchased payable	2,041			14,999
Other accrued liabilities	40,976			36,184
Total liabilities	784,254			733,932

Commitments and contingencies

Stockholders' Equity
Common shares	1,472			1,476
Additional paid-in capital	1,110,800			1,127,137
Accumulated other comprehensive loss	(28,993		)	(3,252		)
Retained earnings	1,282,438			815,075
Total stockholders' equity	2,365,717			1,940,436

Total liabilities and stockholders' equity	$	3,149,971		$	2,674,368

Return on average equity	21.7		%	23.1		%



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


	2018												2017
Selected Income Statement Data	December 31			September 30			June 30			March 31			December 31			September 30			June 30			March 31
(In thousands, except per share amounts)
Revenues:
Net premiums written	$	176,437		$	175,221		$	168,404		$	165,225		$	161,771		$	155,055		$	134,063		$	119,297

Net premiums earned (1)	173,301			166,675			156,958			152,558			147,976			137,940			126,563			117,651
Other revenues	19,823			18,323			16,810			14,905			13,134			12,263			11,043			9,941
Total revenues	193,124			184,998			173,768			167,463			161,110			150,203			137,606			127,592

Losses and expenses:
Provision for losses and LAE (2)	(999		)	5,452			1,813			5,309			17,456			4,313			1,770			3,693
Other underwriting and operating expenses	39,449			36,899			36,428			38,124			36,480			37,035			35,686			36,332
Interest expense	2,611			2,500			2,618			2,450			1,817			1,456			1,189			716
Total losses and expenses	41,061			44,851			40,859			45,883			55,753			42,804			38,645			40,741

Income before income taxes	152,063			140,147			132,909			121,580			105,357			107,399			98,961			86,851
Income tax expense (benefit) (3) (4)	23,535			24,136			21,154			10,511			(57,281		)	29,006			26,843			20,253
Net income	$	128,528		$	116,011		$	111,755		$	111,069		$	162,638		$	78,393		$	72,118		$	66,598

Earnings per share:
Basic	$	1.32		$	1.19		$	1.15		$	1.14		$	1.69		$	0.83		$	0.79		$	0.73
Diluted	1.31			1.18			1.14			1.13			1.65			0.82			0.77			0.72

Weighted average shares outstanding:
Basic	97,450			97,438			97,426			97,298			96,429			94,185			91,381			91,258
Diluted	98,066			98,013			97,866			97,951			98,497			96,094			93,162			93,023

Other Data:
Loss ratio (5)	(0.6		)%	3.3		%	1.2		%	3.5		%	11.8		%	3.1		%	1.4		%	3.1		%
Expense ratio (6)	22.8			22.1			23.2			25.0			24.7			26.8			28.2			30.9
Combined ratio	22.2		%	25.4		%	24.4		%	28.5		%	36.4		%	30.0		%	29.6		%	34.0		%

Return on average equity (annualized)	22.4		%	21.5		%	21.8		%	22.6		%	35.0		%	19.1		%	19.8		%	19.3		%

(1) Net premiums earned are net of premiums ceded to third-party reinsurers beginning in 2018. Premiums ceded totaled $3,731, $3,158, $3,585 and $294 in the three months ended December 31, 2018, September 30, 2018, June 30, 2018 and March 31, 2018, respectively.
(2) Provision for losses and LAE for the quarter ended December 31, 2018 includes a $9.9 million 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. Provision for losses and LAE for the quarter ended December 31, 2017 includes an $11.1 million provision associated with defaults identified as related to Hurricanes Harvey and Irma.
(3) Income tax expense for the quarter 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. Income tax expense for the quarters ended March 31, 2018 and 2017 was reduced by $9,549 and $3,023, respectively, of excess tax benefits associated with the vesting of common shares and common share units during each period.
(4) Income tax expense for the quarter ended December 31, 2017 was reduced by $85,091 of income tax benefit due to the one-time impact of the reduced U.S. corporate income tax rate on the company's net deferred tax liability position.
(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


	2018												2017
Other Data, continued:	December 31			September 30			June 30			March 31			December 31			September 30			June 30			March 31
($ in thousands)

U.S. Mortgage Insurance Portfolio
Flow:
New insurance written	$	11,408,542		$	13,913,191		$	12,850,642		$	9,336,150		$	11,234,855		$	13,221,038		$	11,368,276		$	8,034,153
New risk written	2,838,530			3,430,942			3,201,610			2,295,314			2,737,008			3,228,603			2,786,501			1,929,832

Bulk:
New insurance written	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
New risk written	—			—			—			—			—			—			—			—

Total:
Average gross premium rate (7)	0.50		%	0.51		%	0.52		%	0.52		%	0.53		%	0.53		%	0.53		%	0.53		%
Average net premium rate (8)	0.49		%	0.50		%	0.51		%	0.52		%	0.53		%	0.53		%	0.53		%	0.53		%
New insurance written	$	11,408,542		$	13,913,191		$	12,850,642		$	9,336,150		$	11,234,855		$	13,221,038		$	11,368,276		$	8,034,153
New risk written	$	2,838,530		$	3,430,942		$	3,201,610		$	2,295,314		$	2,737,008		$	3,228,603		$	2,786,501		$	1,929,832
Insurance in force (end of period)	$	137,720,786		$	131,249,957		$	122,501,246		$	115,250,949		$	110,461,950		$	103,936,307		$	95,494,390		$	87,993,227
Gross risk in force (end of period) (9)	$	34,482,448		$	32,786,194		$	30,579,106		$	28,691,561		$	27,443,985		$	25,807,358		$	23,665,045		$	21,801,667
Risk in force (end of period)	$	33,892,869		$	32,361,782		$	30,154,694		$	28,267,149		$	27,443,985		$	25,807,358		$	23,665,045		$	21,801,667
Policies in force	608,135			581,570			546,576			517,215			496,477			467,483			430,585			397,650
Weighted average coverage (10)	25.0		%	25.0		%	25.0		%	24.9		%	24.8		%	24.8		%	24.8		%	24.8		%
Annual persistency	84.9		%	84.0		%	83.0		%	83.5		%	83.9		%	82.1		%	80.1		%	78.2		%

Loans in default (count)	4,024			3,538			3,519			4,442			4,783			2,153			1,776			1,777
Percentage of loans in default	0.66		%	0.61		%	0.64		%	0.86		%	0.96		%	0.46		%	0.41		%	0.45		%

Other Risk in Force
GSE and other risk share (11)	$	655,384		$	612,750		$	592,493		$	557,692		$	538,944		$	501,485		$	479,762		$	436,991

Credit Facility
Borrowings outstanding	$	225,000		$	225,000		$	225,000		$	265,000		$	250,000		$	175,000		$	175,000		$	125,000
Undrawn committed capacity	$	275,000		$	275,000		$	275,000		$	110,000		$	125,000		$	200,000		$	200,000		$	75,000
Weighted average interest rate	4.43		%

(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, including in connection with Freddie Mac's Agency Credit Insurance Structure ("ACIS") and Fannie Mae's Credit Insurance Risk Transfer ("CIRT") programs.



																Exhibit D

Essent Group Ltd. and Subsidiaries
Supplemental Information
New Insurance Written: Flow


NIW by Credit Score
	Three Months Ended										Year Ended
	December 31, 2018					December 31, 2017					December 31, 2018					December 31, 2017
($ in thousands)
>=760	$	4,737,774		41.5	%	$	4,551,775		40.5	%	$	19,903,369		41.9	%	$	18,455,482		42.1	%
740-759	1,959,523			17.2		1,793,713			16.0		8,076,182			17.0		6,851,174			15.6
720-739	1,665,931			14.6		1,644,956			14.6		6,875,823			14.5		6,223,802			14.2
700-719	1,349,689			11.8		1,378,170			12.3		5,715,076			12.0		5,228,590			11.9
680-699	875,125			7.7		1,024,440			9.1		3,722,490			7.8		3,843,164			8.8
<=679	820,500			7.2		841,801			7.5		3,215,585			6.8		3,256,110			7.4
Total	$	11,408,542		100.0	%	$	11,234,855		100.0	%	$	47,508,525		100.0	%	$	43,858,322		100.0	%

Weighted average credit score	745					743					745					744



NIW by LTV
	Three Months Ended										Year Ended
	December 31, 2018					December 31, 2017					December 31, 2018					December 31, 2017
($ in thousands)
85.00% and below	$	1,384,296		12.1	%	$	1,532,008		13.6	%	$	5,731,894		12.1	%	$	5,839,270		13.3	%
85.01% to 90.00%	3,124,625			27.4		3,286,879			29.3		13,227,075			27.8		13,072,845			29.8
90.01% to 95.00%	4,955,729			43.4		4,845,713			43.1		20,579,615			43.3		19,301,353			44.0
95.01% and above	1,943,892			17.1		1,570,255			14.0		7,969,941			16.8		5,644,854			12.9
Total	$	11,408,542		100.0	%	$	11,234,855		100.0	%	$	47,508,525		100.0	%	$	43,858,322		100.0	%

Weighted average LTV	92		%			92		%			92		%			92		%



NIW by Product
	Three Months Ended										Year Ended
	December 31, 2018					December 31, 2017					December 31, 2018					December 31, 2017
Single Premium policies				13.5	%				19.0	%				15.3	%				16.3	%
Monthly Premium policies				86.5					81.0					84.7					83.7
				100.0	%				100.0	%				100.0	%				100.0	%



NIW by Purchase vs. Refinance
	Three Months Ended										Year Ended
	December 31, 2018					December 31, 2017					December 31, 2018					December 31, 2017
Purchase				93.3	%				84.4	%				91.8	%				85.2	%
Refinance				6.7					15.6					8.2					14.8
				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	December 31, 2018					September 30, 2018					December 31, 2017
($ in thousands)
>=760	$	59,249,659		43.0	%	$	56,686,270		43.2	%	$	48,668,705		44.1	%
740-759	22,843,145			16.6		21,661,445			16.5		17,939,206			16.2
720-739	19,898,885			14.5		18,909,281			14.4		15,761,787			14.3
700-719	15,714,206			11.4		14,928,024			11.4		12,167,285			11.0
680-699	11,299,829			8.2		10,828,068			8.2		9,156,196			8.3
<=679	8,715,062			6.3		8,236,869			6.3		6,768,771			6.1
Total	$	137,720,786		100.0	%	$	131,249,957		100.0	%	$	110,461,950		100.0	%

Weighted average credit score	746					746					747

Gross RIF by FICO score	December 31, 2018					September 30, 2018					December 31, 2017
($ in thousands)
>=760	$	14,789,783		42.9	%	$	14,119,178		43.1	%	$	12,058,196		43.9	%
740-759	5,736,432			16.6		5,434,079			16.6		4,485,439			16.4
720-739	5,036,063			14.6		4,773,174			14.5		3,957,922			14.4
700-719	3,943,925			11.4		3,735,034			11.4		3,018,341			11.0
680-699	2,846,297			8.3		2,718,524			8.3		2,286,082			8.3
<=679	2,129,948			6.2		2,006,205			6.1		1,638,005			6.0
Total	$	34,482,448		100.0	%	$	32,786,194		100.0	%	$	27,443,985		100.0	%

Portfolio by LTV
IIF by LTV	December 31, 2018					September 30, 2018					December 31, 2017
($ in thousands)
85.00% and below	$	15,123,578		11.0	%	$	14,641,309		11.2	%	$	12,917,751		11.7	%
85.01% to 90.00%	41,020,839			29.8		39,598,332			30.2		34,794,108			31.5
90.01% to 95.00%	66,028,990			47.9		63,167,371			48.1		54,323,103			49.2
95.01% and above	15,547,379			11.3		13,842,945			10.5		8,426,988			7.6
Total	$	137,720,786		100.0	%	$	131,249,957		100.0	%	$	110,461,950		100.0	%

Weighted average LTV	92		%			92		%			92		%

Gross RIF by LTV	December 31, 2018					September 30, 2018					December 31, 2017
($ in thousands)
85.00% and below	$	1,741,823		5.1	%	$	1,680,050		5.1	%	$	1,462,351		5.3	%
85.01% to 90.00%	9,819,171			28.5		9,458,067			28.8		8,262,322			30.1
90.01% to 95.00%	18,912,421			54.8		18,090,207			55.2		15,576,125			56.8
95.01% and above	4,009,033			11.6		3,557,870			10.9		2,143,187			7.8
Total	$	34,482,448		100.0	%	$	32,786,194		100.0	%	$	27,443,985		100.0	%

Portfolio by Loan Amortization Period
IIF by Loan Amortization Period	December 31, 2018					September 30, 2018					December 31, 2017
($ in thousands)
FRM 30 years and higher	$	128,083,429		93.0	%	$	121,455,115		92.6	%	$	100,592,946		91.1	%
FRM 20-25 years	2,965,782			2.2		3,032,593			2.3		2,879,977			2.6
FRM 15 years	3,445,447			2.5		3,571,994			2.7		3,857,152			3.5
ARM 5 years and higher	3,226,128			2.3		3,190,255			2.4		3,131,875			2.8
Total	$	137,720,786		100.0	%	$	131,249,957		100.0	%	$	110,461,950		100.0	%



							Exhibit F

Essent Group Ltd. and Subsidiaries
Supplemental Information
Other Risk in Force


($ in thousands)	December 31, 2018			September 30, 2018			December 31, 2017

GSE and other risk share (1)	$	655,384		$	612,750		$	538,944

Weighted average credit score	748			749			749
Weighted average LTV	85		%	85		%	84		%

(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, including in connection with Freddie Mac's Agency Credit Insurance Structure ("ACIS") and Fannie Mae's Credit Insurance Risk Transfer ("CIRT") programs.



																						Exhibit G

Essent Group Ltd. and Subsidiaries
Supplemental Information
Portfolio Vintage Data
December 31, 2018


								Insurance in Force
Origination Year	Original Insurance Written ($ in thousands)		Remaining Insurance in Force ($ in thousands)		% Remaining of Original Insurance		Number of Policies in Force	% Purchase		>90% LTV		>95% LTV		FICO < 700		FICO >= 760		% FRM		Incurred Loss Ratio (Inception to Date) (1)		Number of Loans in Default

2010	$	245,898	$	7,725	3.1	%	54	74.2	%	67.2	%	0.0	%	1.2	%	62.7	%	100.0	%	2.6	%	—
2011	3,229,720		228,682		7.1		1,354	72.1		58.5		0.3		6.2		52.3		97.9		3.7		32
2012	11,241,161		1,857,304		16.5		9,894	75.9		62.4		0.6		5.6		56.3		98.9		2.3		106
2013	21,152,638		5,005,615		23.7		26,241	79.9		62.1		2.1		7.8		51.4		98.5		2.3		281
2014	24,799,434		8,257,561		33.3		44,041	88.7		64.1		4.5		15.6		41.4		96.5		3.2		585
2015	26,193,656		13,410,795		51.2		63,698	84.2		58.0		2.6		14.7		43.7		97.7		3.0		664
2016	34,949,319		25,252,309		72.3		110,903	82.0		56.7		6.6		13.6		45.4		98.4		3.4		900
2017	43,858,322		37,850,574		86.3		166,006	86.2		58.4		13.7		16.1		41.6		97.0		4.6		1,160
2018	47,508,525		45,850,221		96.5		185,944	91.8		60.4		17.1		14.7		41.4		97.8		3.3		296
Total	$	213,178,673	$	137,720,786	64.6		608,135	86.9		59.2		11.3		14.5		43.0		97.7		3.1		4,024

(1) Incurred loss ratio is calculated by dividing the sum of case reserves and cumulative amount paid for claims by cumulative net premiums earned.



					Exhibit H

Essent Group Ltd. and Subsidiaries
Supplemental Information
Portfolio Geographic Data


IIF by State
	December 31, 2018		September 30, 2018		December 31, 2017
CA	9.1	%	9.1	%	9.4	%
TX	7.9		7.9		8.0
FL	7.4		7.3		7.0
WA	4.7		4.8		4.8
IL	3.8		3.9		4.0
NJ	3.8		3.8		3.7
NC	3.5		3.5		3.5
GA	3.4		3.4		3.4
CO	3.4		3.3		3.1
OH	3.3		3.3		3.2
All Others	49.7		49.7		49.9
Total	100.0	%	100.0	%	100.0	%



Gross RIF by State
	December 31, 2018		September 30, 2018		December 31, 2017
CA	8.9	%	8.9	%	9.1	%
TX	8.1		8.1		8.3
FL	7.5		7.4		7.1
WA	4.7		4.8		4.9
IL	3.8		3.8		3.9
NJ	3.7		3.7		3.6
NC	3.5		3.5		3.5
GA	3.5		3.5		3.5
OH	3.3		3.3		3.2
CO	3.3		3.3		3.0
All Others	49.7		49.7		49.9
Total	100.0	%	100.0	%	100.0	%



										Exhibit I

Essent Group Ltd. and Subsidiaries
Supplemental Information
Defaults, Reserve for Losses and LAE, and Claims


Rollforward of Insured Loans in Default
	Three Months Ended						Year Ended
	December 31,			December 31,			December 31,			December 31,
	2018			2017			2018			2017
Beginning default inventory	3,538			2,153			4,783			1,757
Plus: new defaults	2,747			4,332			8,727			8,229
Less: cures	(2,183		)	(1,648		)	(9,226		)	(4,970		)
Less: claims paid	(75		)	(53		)	(254		)	(229		)
Less: rescissions and denials, net	(3		)	(1		)	(6		)	(4		)
Ending default inventory	4,024			4,783			4,024			4,783



Rollforward of Reserve for Losses and LAE
	Three Months Ended						Year Ended
	December 31,			December 31,			December 31,			December 31,
($ in thousands)	2018			2017			2018			2017
Reserve for losses and LAE at beginning of period	$	53,355		$	31,579		$	46,850		$	28,142
Add provision for losses and LAE occurring in:
Current year	11,239			18,912			36,438			38,178
Prior years	(12,238		)	(1,456		)	(24,863		)	(10,946		)
Incurred losses and LAE during the period	(999		)	17,456			11,575			27,232
Deduct payments for losses and LAE occurring in:
Current year	690			390			1,310			633
Prior years	2,202			1,795			7,651			7,891
Loss and LAE payments during the period	2,892			2,185			8,961			8,524
Reserve for losses and LAE at end of period	$	49,464		$	46,850		$	49,464		$	46,850



Claims
	Three Months Ended						Year Ended
	December 31,			December 31,			December 31,			December 31,
	2018			2017			2018			2017
Number of claims paid	75			53			254			229
Total amount paid for claims (in thousands)	$	2,711		$	2,125		$	8,559		$	8,280
Average amount paid per claim (in thousands)	$	36		$	40		$	34		$	36
Severity	82		%	87		%	73		%	83		%



								Exhibit I, continued
Essent Group Ltd. and Subsidiaries
Supplemental Information
Defaults, Reserve for Losses and LAE, and Claims


	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%

	December 31, 2017
	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	3,243	68	%	$	15,925	37	%	$	187,163	9	%
Four to eleven payments	1,284	27		18,087		42		73,547		25
Twelve or more payments	211	4		6,781		16		11,139		61
Pending claims	45	1		2,075		5		2,355		88
Total case reserves	4,783	100	%	42,868		100	%	$	274,204	16
IBNR				3,215
LAE				767
Total reserves for losses and LAE				$	46,850

Average reserve per default:
Case				$	9.0
Total				$	9.8

Default Rate	0.96%



								Exhibit J

Essent Group Ltd. and Subsidiaries
Supplemental Information
Investments Available for Sale


Investments Available for Sale by Asset Class
Asset Class	December 31, 2018					December 31, 2017
($ in thousands)	Fair Value			Percent		Fair Value		Percent
U.S. Treasury securities	$	289,892		10.5	%	$	227,805	9.9	%
U.S. agency securities	32,997			1.2		33,114		1.4
U.S. agency mortgage-backed securities	637,178			23.1		456,037		19.8
Municipal debt securities	483,879			17.5		465,255		20.2
Non-U.S. government securities	45,001			1.6		—		—
Corporate debt securities	725,201			26.3		611,728		26.5
Residential and commercial mortgage securities	121,838			4.4		79,407		3.5
Asset-backed securities	284,997			10.3		167,922		7.3
Money market funds	139,083			5.1		263,797		11.4
Total investments available for sale	$	2,760,066		100.0	%	$	2,305,065	100.0	%

Investments Available for Sale by Credit Rating
Rating (1)	December 31, 2018					December 31, 2017
($ in thousands)	Fair Value			Percent		Fair Value		Percent
Aaa	$	1,362,781		49.4	%	$	1,160,200	50.3	%
Aa1	124,435			4.5		115,237		5.0
Aa2	196,218			7.1		123,551		5.4
Aa3	143,315			5.2		127,785		5.6
A1	222,073			8.0		205,369		8.9
A2	199,238			7.2		157,651		6.8
A3	146,300			5.3		148,246		6.4
Baa1	162,695			5.9		115,178		5.0
Baa2	140,168			5.1		87,869		3.8
Baa3	26,805			1.0		43,024		1.9
Below Baa3	36,038			1.3		20,955		0.9
Total investments available for sale	$	2,760,066		100.0	%	$	2,305,065	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	December 31, 2018					December 31, 2017
($ in thousands)	Fair Value			Percent		Fair Value		Percent
< 1 Year	$	529,545		19.2	%	$	628,958	27.3	%
1 to < 2 Years	285,060			10.3		164,856		7.2
2 to < 3 Years	251,763			9.1		280,177		12.2
3 to < 4 Years	278,804			10.1		263,799		11.4
4 to < 5 Years	429,005			15.6		263,273		11.4
5 or more Years	985,889			35.7		704,002		30.5
Total investments available for sale	$	2,760,066		100.0	%	$	2,305,065	100.0	%

Pre-tax investment income yield:
Three months ended December 31, 2018	2.77		%
Year ended December 31, 2018	2.56		%

Net cash and investments at holding company, Essent Group Ltd.:
($ in thousands)
As of December 31, 2018	$	78,405
As of December 31, 2017	$	104,167



				Exhibit K

Essent Group Ltd. and Subsidiaries
Supplemental Information
Insurance Company Capital


		December 31, 2018		December 31, 2017
($ in thousands)
U.S. Mortgage Insurance Subsidiaries:
Combined statutory capital (1)		$	1,886,929	$	1,528,869

Combined net risk in force (2)		$	26,233,783	$	21,637,409

Risk-to-capital ratios: (3)
	Essent Guaranty, Inc.	14.4:1		14.7:1
	Essent Guaranty of PA, Inc.	4.2:1		5.4:1
	Combined (4)	13.9:1		14.2:1

Essent Reinsurance Ltd.:
Stockholder's equity (GAAP basis)		$	798,612	$	662,819

Net risk in force (2)		$	8,265,763	$	6,299,437


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

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

Adjusted Book Value per Share is calculated by dividing Adjusted Book Value by Common Shares and Share Units Outstanding. Adjusted Book Value is defined as consolidated stockholders’ equity of the Company, excluding accumulated other comprehensive income (loss) plus the proceeds, if any, from the assumed exercise of all "in-the-money" options, warrants and similar instruments. Common Shares and Share Units Outstanding is defined as total common shares outstanding plus all equity instruments (including restricted share units) issued to management and the Board of Directors and any "in-the-money" options, warrants and similar instruments. Accumulated other comprehensive income (loss) includes unrealized gains and losses that arise from changes in the market value of the Company’s investments that are classified as available for sale. The Company does not view these unrealized gains and losses to be indicative of our fundamental operating performance. As of December 31, 2018 and December 31, 2017, 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 December 31, 2018 and December 31, 2017 in accordance with Regulation G:




(In thousands, except per share amounts)	December 31, 2018			December 31, 2017

Numerator:
Total Stockholders' Equity (Book Value)	$	2,365,717		$	1,940,436

Subtract: Accumulated Other Comprehensive Income (Loss)	(28,993		)	(3,252		)

Adjusted Book Value	$	2,394,710		$	1,943,688

Denominator:
Total Common Shares Outstanding	98,139			98,434

Add: Restricted Share Units Outstanding	449			536

Total Common Shares and Share Units Outstanding	98,588			98,970

Adjusted Book Value per Share	$	24.29		$	19.64

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Form 8-K Essent Group Ltd. For: Feb 08

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