[PART I — FINANCIAL INFORMATION](index=5&type=section&id=PART%20I%20%E2%80%94%20FINANCIAL%20INFORMATION) The financial information section provides an overview of the company's financial performance and condition, including unaudited statements and management's analysis [Item 1. Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) The unaudited condensed consolidated financial statements present the financial position, results of operations, and cash flows for Essent Group Ltd. as of September 30, 2021, and for the three and nine months then ended [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section provides a snapshot of the company's assets, liabilities, and equity as of September 30, 2021, and December 31, 2020 Condensed Consolidated Balance Sheet Highlights (Unaudited) | (in thousands of USD) | September 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | **Total Assets** | **$5,589,516** | **$5,202,724** | | Total Investments | $5,031,267 | $4,654,277 | | **Total Liabilities** | **$1,421,532** | **$1,340,091** | | Reserve for losses and LAE | $412,956 | $374,941 | | **Total Stockholders' Equity** | **$4,167,984** | **$3,862,633** | [Condensed Consolidated Statements of Comprehensive Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) This statement details the company's revenues, expenses, and net income for the three and nine months ended September 30, 2021 and 2020 Statement of Comprehensive Income Highlights (Unaudited) | (in thousands of USD, except per share) | Three Months Ended Sep 30, 2021 | Three Months Ended Sep 30, 2020 | Nine Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2020 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | **$283,536** | **$243,038** | **$771,594** | **$707,955** | | Net Premiums Earned | $218,718 | $222,258 | $655,222 | $640,225 | | (Benefit) Provision for Losses | ($7,483) | $55,280 | $34,490 | $239,220 | | **Net Income** | **$205,353** | **$124,536** | **$500,796** | **$289,439** | | **Diluted EPS** | **$1.84** | **$1.11** | **$4.47** | **$2.77** | [Condensed Consolidated Statements of Changes in Stockholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) This statement outlines the changes in the company's stockholders' equity, driven by net income, dividends, and share repurchases - Total stockholders' equity increased to **$4.17 billion** as of September 30, 2021, from **$3.75 billion** as of September 30, 2020, driven by **net income of $500.8 million** for the nine-month period, partially offset by **dividends declared ($57.5 million)** and **treasury stock acquisitions ($94.8 million)**[28](index=28&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This statement summarizes the cash inflows and outflows from operating, investing, and financing activities for the nine months ended September 30, 2021 and 2020 Cash Flow Summary (Unaudited) | (in thousands of USD) | Nine Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2020 | | :--- | :--- | :--- | | Net cash provided by operating activities | $518,167 | $548,506 | | Net cash used in investing activities | ($403,412) | ($1,083,317) | | Net cash (used in) provided by financing activities | ($151,760) | $582,152 | | **Net (decrease) increase in cash** | **($37,005)** | **$47,341** | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes provide detailed information on accounting policies, investment portfolio, reinsurance, loss reserves, debt, capital stock, and statutory compliance, including PMIERs [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance, including a significant increase in net income, the impact of COVID-19, key performance indicators, liquidity, and regulatory compliance [Overview](index=29&type=section&id=Overview) This section provides a high-level summary of the company's insurance in force, new insurance written, reinsurance coverage, and the impact of COVID-19 on default reserving - As of September 30, 2021, Essent had **$208.2 billion** of insurance in force (IIF), with new insurance written (NIW) at **$23.6 billion** for Q3 2021 and **$67.8 billion** for the first nine months of 2021[151](index=151&type=chunk) - Essent Re, the company's reinsurance subsidiary, increased its quota share reinsurance coverage of Essent Guaranty's NIW from **25% to 35%** effective January 1, 2021[152](index=152&type=chunk) - The company reverted to its normal loss reserving methodology for defaults reported after September 30, 2020, as new default credit characteristics trended towards pre-pandemic levels, following a significant increase in new defaults in 2020 due to COVID-19[153](index=153&type=chunk) [Results of Operations](index=36&type=section&id=Results%20of%20Operations) This section analyzes the company's net income, premiums earned, and provision for losses, highlighting the impact of decreased defaults and favorable development from cures - Net income for Q3 2021 was **$205.4 million**, a significant increase from **$124.5 million** in Q3 2020, primarily driven by a decrease in the provision for losses and LAE and higher income from other invested assets[194](index=194&type=chunk) - Net premiums earned decreased by **2%** in Q3 2021 compared to Q3 2020, mainly due to higher ceded premiums under reinsurance agreements, despite an increase in average insurance in force[195](index=195&type=chunk) - The provision for losses and LAE was a **benefit of $7.5 million** in Q3 2021, compared to an **expense of $55.3 million** in Q3 2020, due to a decrease in new defaults and favorable development from cures[204](index=204&type=chunk)[212](index=212&type=chunk) Default Inventory Trend | Metric | Q3 2021 | Q3 2020 | | :--- | :--- | :--- | | Beginning Default Inventory | 23,504 | 38,068 | | New Defaults | 5,132 | 12,614 | | Cures | (8,862) | (15,135) | | **Ending Default Inventory** | **19,721** | **35,464** | [Liquidity and Capital Resources](index=41&type=section&id=Liquidity%20and%20Capital%20Resources) This section details the company's strong liquidity position, including cash, investments, and compliance with regulatory capital requirements like PMIERs - As of September 30, 2021, the company had substantial liquidity, including **$65.8 million in cash**, **$309.8 million in short-term investments**, and **$4.6 billion in fixed maturity investments**, with holding company net cash and investments totaling **$513.0 million**[224](index=224&type=chunk) - The combined risk-to-capital ratio for U.S. insurance subsidiaries was **10.5 to 1** as of September 30, 2021, significantly below the general maximum permitted ratio of **25.0 to 1**[191](index=191&type=chunk)[240](index=240&type=chunk) - Essent Guaranty was in compliance with PMIERs 2.0, with **Available Assets of $3.16 billion**, which is **162%** of its **Minimum Required Assets of $1.95 billion** as of September 30, 2021[245](index=245&type=chunk) [Financial Condition](index=45&type=section&id=Financial%20Condition) This section reviews the company's balance sheet strength, including growth in stockholders' equity and investments, and the quality of its investment portfolio - Stockholders' equity increased to **$4.17 billion** at September 30, 2021, from **$3.86 billion** at December 31, 2020, driven by net income, partially offset by dividends and share repurchases[247](index=247&type=chunk) - Total investments grew to **$5.0 billion** as of September 30, 2021, from **$4.7 billion** at year-end 2020, primarily from investing cash flows from operations[248](index=248&type=chunk) Investment Portfolio Quality by Rating (Fair Value) | Rating Category | September 30, 2021 (%) | December 31, 2020 (%) | | :--- | :--- | :--- | | Aaa to A3 (High Grade) | 88.2% | 91.7% | | Baa1 to Baa3 (Investment Grade) | 15.5% | 10.7% | | Below Baa3 | 1.6% | 0.7% | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=51&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's investment portfolio is primarily exposed to interest rate risk, with an effective duration of 3.8 years as of September 30, 2021 - The primary market risk exposure is to changes in interest rates, which can affect the value of fixed-rate bonds and influence persistency and claim rates[272](index=272&type=chunk) - The effective duration of the investments available for sale portfolio was **3.8 years** at September 30, 2021, indicating that a **100 basis point** change in interest rates would change the portfolio's fair value by approximately **3.8%**[276](index=276&type=chunk) [Item 4. Controls and Procedures](index=51&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of September 30, 2021, with no material changes in internal control over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures were effective based on an evaluation as of the end of the period[277](index=277&type=chunk) - No material changes occurred in the company's internal control over financial reporting during the third quarter of 2021[278](index=278&type=chunk) [PART II — OTHER INFORMATION](index=52&type=section&id=PART%20II%20%E2%80%94%20OTHER%20INFORMATION) This section covers other information including legal proceedings, risk factors, equity security sales, and exhibits [Item 1. Legal Proceedings](index=52&type=section&id=Item%201.%20Legal%20Proceedings) The company reports that it is not currently subject to any material legal proceedings - As of the reporting date, the company is not involved in any material legal proceedings[281](index=281&type=chunk) [Item 1A. Risk Factors](index=52&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2020 - No material changes have occurred in the company's risk factors since the filing of its 2020 Annual Report on Form 10-K[282](index=282&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=52&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q3 2021, the company repurchased 1,565,357 common shares under its plan, with $160.8 million remaining available for future repurchases Share Repurchases in Q3 2021 | Period | Total Shares Purchased | Average Price Paid Per Share (USD) | | :--- | :--- | :--- | | July 2021 | 586,169 | $44.10 | | August 2021 | 472,369 | $46.59 | | September 2021 | 506,819 | $45.39 | | **Total Q3** | **1,565,357** | **N/A** | - The share repurchase plan, announced in May 2021, authorized up to **$250 million** in repurchases, with **$160.8 million** remaining available under this authorization as of September 30, 2021[284](index=284&type=chunk) [Item 6. Exhibits](index=53&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including management agreements, CEO/CFO certifications, and financial statements in Inline XBRL - Exhibits filed with the report include CEO and CFO certifications (Sections 302 and 906 of Sarbanes-Oxley) and financial data in Inline XBRL format[286](index=286&type=chunk)

Company Overview - Essent Group Ltd is a leading specialty insurer in the U.S housing finance industry, offering mortgage insurance and reinsurance[4] - The company has transformed its business model to a "Buy, Manage & Distribute" approach, utilizing programmatic reinsurance[4] - EssentEDGE®, a dynamic pricing platform, allows for precise credit selection and granular pricing[4] Financial Performance - As of September 30, 2021, Essent's total Insurance In Force (IIF) reached $208.2 billion[4] - The combined risk-to-capital ratio was 10.5:1 as of September 30, 2021[4] - Net income for the quarter was $205.4 million, including income from other invested assets of $39.5 million[5] - The combined ratio was 15.9% and the annualized ROE was 19.9%[5] - Shareholders' equity stood at $4.2 billion[5] - Book value per share has an annualized growth rate of 21.4% from December 31, 2013[7] Market Position and Strategy - Essent maintains a strong market position with an average annual NIW market share of approximately 16% from 2016 through 2020[12] - The company utilizes Credit Risk Transfer (CRT) to manage housing cycles and diversify capital sources[17] - As of September 30, 2021, Essent has access to $2.4 billion in ILN/XOL reinsurance coverage, protecting 75% of its IIF[23] Capital and Liquidity - As of September 30, 2021, GAAP Equity was $4.2 billion[25] - Available liquidity was $513 million in net cash and investments at Essent Group Ltd and Essent US Holdings, Inc[25] - The company maintains conservative financial leverage below 10%[25]

Financial Data and Key Metrics Changes - For Q3 2021, the company reported net income of $205 million, an increase from $160 million in the previous quarter [7] - Diluted earnings per share were $1.84, up from $1.42 in the last quarter [8] - The annualized return on average equity for Q3 was 20% [8] - Book value per share increased to $37.58, with an annualized growth of 21% since going public in 2013 [11] Business Line Data and Key Metrics Changes - Net premium for Q3 2021 was $219 million, including $11.6 million from Essent Re's third-party business [15] - The average net premium rate for U.S. mortgage insurance decreased to 40 basis points from 41 basis points in the previous quarter [15] - Persistency increased to 62.2% at September 30, 2021, compared to 58.3% at June 30, 2021 [15] Market Data and Key Metrics Changes - As of September 30, 2021, the insurance in force was $208 billion, a 9% increase from $191 billion a year ago [8] - The default rate decreased to 2.47% from 2.96% at June 30, 2021 [16] Company Strategy and Development Direction - The company rolled out the next generation of EssentEDGE, enhancing its risk-based engine for refined pricing [9] - The focus is on leveraging technology and data analytics to optimize unit economics in a competitive mortgage insurance market [21] - The company maintains a strong capital position with $4.2 billion in GAAP equity and $2.4 billion in excess of loss re-insurance [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the portfolio, noting that the average FICO score is 745 and LTV is 92% [8] - The company is prepared for potential economic headwinds, emphasizing the importance of maintaining a fortress balance sheet [34] - Management highlighted the ongoing transition in the industry from rate card to fee-based models, positioning the company favorably due to its technological investments [28] Other Important Information - The Board approved a $0.01 increase in the dividend to $0.19 per share, representing a 19% increase from the previous year [11] - The company repurchased $70.9 million of stock during the quarter, totaling approximately $89 million in buybacks year-to-date [19] Q&A Session Summary Question: Changes in portfolio characteristics due to refinance activity - Management noted that the fundamental characteristics of the new business remain strong, with an average FICO of 745 and LTV of around 92% [23] Question: Competitive environment and pricing stability - Management confirmed that competition remains stable, with a shift from rate card to fee-only models impacting the industry [27][28] Question: Re-insurance levels and future expectations - Management indicated that re-insurance coverage is expected to increase to around 90% as new transactions are completed [32] Question: Impact of home price appreciation on persistency - Management acknowledged that while they have not seen significant changes yet, higher home price appreciation could lead to increased refinancing activity [41] Question: Technology talent acquisition and its impact on initiatives - Management stated that while attracting technology talent is competitive, they have been successful in leveraging both internal and external resources to meet their needs [46][47] Question: Participation in GSEs' CRT programs - Management confirmed participation in GSEs' CRT programs, particularly through Essent Re, and noted the potential for growth as Fannie Mae ramps up its offerings [49]

� ESSENT® ESSENT GROUP LTD. | NYSE: ESNT © 2021 Essent Group Ltd. All rights reserved. | essentgroup.com | 1 ESSENT GROUP LTD. INVESTOR PRESENTATION 2Q21 NYSE: ESNT August 6, 2021 Disclaimer This presentation 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," "anticipa ...

Essent Group Ltd. (NYSE:ESNT) Q2 2021 Results Conference Call August 6, 2021 10:00 AM ET Company Participants Chris Curran - SVP, IR Mark Casale - Chairman and CEO Larry McAlee - CFO Conference Call Participants Mark DeVries - Barclays Rick Shane - JP Morgan Mihir Bhatia - Bank of America Bose George - KBW Douglas Harter - Credit Suisse Ryan Gilbert - BTIG Operator Good day and thank you for standing by. Welcome to the Essent Group Limited Second Quarter Earnings Call. [Operator Instructions] And please be ...

Table of Contents Title of each class Trading Symbol(s) Name of each exchange on which registered Common Shares, $0.015 par value ESNT New York Stock Exchange UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the period ended June 30, 2021 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission ...

Essent Group Ltd. (NYSE:ESNT) Q1 2021 Earnings Conference Call May 7, 2021 10:00 AM ET Company Participants Chris Curran – Senior Vice President-Investor Relations Mark Casale – Chairman and Chief Executive Officer Larry McAlee – Chief Financial Officer Conference Call Participants Mark DeVries – Barclays Doug Harter – Credit Suisse Rick Shane – JPMorgan Bose George – KBW Mihir Bhatia – Bank of America Ryan Gilbert – BTIG Phil Stefano – Deutsche Bank Operator Good day and thank you for standing by. Welcome ...

Company Overview - Essent Group Ltd has transformed its business model to a "Buy, Manage & Distribute" approach through programmatic reinsurance[2] - Essent Group Ltd's total Insurance In Force (IIF) was $197.1 billion as of March 31, 2021[2] - Essent Guaranty, Inc has a combined risk-to-capital ratio of 10.6:1 as of March 31, 2021[2] Financial Performance (Q1 2021) - The company's Net Income was $135.6 million[3] - The Combined Ratio was 34%[3] - The Return on Equity (ROE) was 13.9%[3] - Shareholders' Equity stood at $3.9 billion[3] - The PMIERs Sufficiency Ratio was 161%[3] Portfolio and Risk Management - 87% of the Insurance In Force (IIF) has reinsurance protection[3] - As of March 31, 2021, Essent has access to $2.0 billion in Insurance-Linked Notes (ILN)/Excess of Loss (XOL) reinsurance coverage[20] - As of March 31, 2021, Essent Guaranty, Inc had a PMIERs required asset amount of $1.9 billion and an excess asset amount of $1.1 billion, yielding a PMIERs sufficiency ratio of 161%[49]

PART I. FINANCIAL INFORMATION [Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) The unaudited Q1 2021 financial statements detail assets, liabilities, and equity, showing net income impacted by increased COVID-19 related loss reserves [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20(Unaudited)) Condensed Consolidated Balance Sheet Highlights (Unaudited) | Account | March 31, 2021 (in thousands) | December 31, 2020 (in thousands) | | :--- | :--- | :--- | | **Total Assets** | **$5,331,846** | **$5,202,724** | | Total Investments | $4,801,869 | $4,654,277 | | Cash | $81,022 | $102,830 | | **Total Liabilities** | **$1,410,909** | **$1,340,091** | | Reserve for losses and LAE | $411,123 | $374,941 | | Unearned premium reserve | $235,730 | $250,436 | | **Total Stockholders' Equity** | **$3,920,937** | **$3,862,633** | [Condensed Consolidated Statements of Comprehensive Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Unaudited)) Condensed Consolidated Statements of Comprehensive Income (Unaudited) | Account | Three Months Ended March 31, 2021 (in thousands) | Three Months Ended March 31, 2020 (in thousands) | | :--- | :--- | :--- | | Net premiums earned | $219,067 | $206,496 | | Total revenues | $244,797 | $228,840 | | Provision for losses and LAE | $32,322 | $8,063 | | Total losses and expenses | $76,612 | $52,142 | | **Net income** | **$135,648** | **$149,523** | | **Diluted EPS** | **$1.21** | **$1.52** | | Comprehensive income | $76,445 | $139,449 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20(Unaudited)) Condensed Consolidated Statements of Cash Flows Highlights (Unaudited) | Activity | Three Months Ended March 31, 2021 (in thousands) | Three Months Ended March 31, 2020 (in thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | $187,771 | $163,131 | | Net cash used in investing activities | ($186,259) | ($381,426) | | Net cash (used in) provided by financing activities | ($23,320) | $178,000 | | **Net decrease in cash** | **($21,808)** | **($40,295)** | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) - Essent Guaranty reinsures a portion of its new insurance written (NIW) to its affiliate, Essent Re, with coverage increasing from **25% to 35%** for new business effective January 1, 2021[37](index=37&type=chunk) - The company utilizes both quota share and excess of loss reinsurance agreements with third-party reinsurers and special purpose insurers (Radnor Re Transactions) to manage risk and capital[64](index=64&type=chunk)[68](index=68&type=chunk)[69](index=69&type=chunk) - As of March 31, 2021, insured loans in default totaled **29,080**, including **26,874** classified as COVID-19 defaults, with a reserve for losses and LAE of **$362.9 million** for these defaults[80](index=80&type=chunk)[83](index=83&type=chunk) - For defaults reported between April and September 2020 ("Early COVID Defaults"), the company established a reserve equal to approximately **7%** of the risk in force, anticipating a lower claim rate due to forbearance programs, while resuming normal reserve methodology for defaults after September 2020[83](index=83&type=chunk) - In May 2021, the Board of Directors declared a quarterly cash dividend of **$0.17 per share** and approved a new share repurchase plan authorizing up to **$250 million** of its common shares through the end of 2022[91](index=91&type=chunk) - As of March 31, 2021, Essent Guaranty was in compliance with the Private Mortgage Insurer Eligibility Requirements (PMIERs 2.0) set by the GSEs[130](index=130&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2021 performance, highlighting decreased net income due to higher loss provisions from COVID-19 defaults, despite increased net premiums earned and strong capital position [Overview and COVID-19 Impact](index=27&type=section&id=Overview%20and%20COVID-19%20Impact) - The company generated new insurance written (NIW) of **$19.3 billion** for Q1 2021, up from **$13.5 billion** in Q1 2020, with total insurance in force (IIF) at **$197.1 billion** as of March 31, 2021[140](index=140&type=chunk) - Due to COVID-19, the company experienced a significant increase in new defaults in 2020, with "Early COVID Defaults" from Q2 and Q3 2020 reserved differently due to expected higher cure rates from forbearance programs and government stimulus[142](index=142&type=chunk) - For new defaults reported after September 30, 2020, the company reverted to its normal loss reserving methodology as their credit characteristics trended towards pre-pandemic levels[142](index=142&type=chunk) [Key Performance Indicators](index=32&type=section&id=Key%20Performance%20Indicators) Insurance In Force (IIF) Summary (in thousands) | Metric | Q1 2021 (in thousands) | Q1 2020 (in thousands) | | :--- | :--- | :--- | | IIF, beginning of period | $198,882,352 | $164,005,853 | | NIW - Flow | $19,254,014 | $13,549,299 | | Cancellations | ($21,045,175) | ($11,939,800) | | **IIF, end of period** | **$197,091,191** | **$165,615,503** | - The average net premium rate was **0.42%** for Q1 2021, down from **0.48%** for Q1 2020, due to increased ceded premiums, changes in business mix, and pricing changes[178](index=178&type=chunk) - The persistency rate, measuring the percentage of IIF remaining after 12 months, was **56.1%** at March 31, 2021[153](index=153&type=chunk) - The combined risk-to-capital ratio for U.S. insurance companies was **10.6 to 1** as of March 31, 2021, well below the maximum permitted ratio of **25.0 to 1**[179](index=179&type=chunk)[226](index=226&type=chunk) [Results of Operations](index=34&type=section&id=Results%20of%20Operations) - Net income decreased to **$135.6 million** in Q1 2021 from **$149.5 million** in Q1 2020, primarily due to a higher provision for losses and LAE[184](index=184&type=chunk) - Net premiums earned increased by **6%** to **$219.1 million** in Q1 2021, driven by a higher average IIF, though the average net premium rate declined[185](index=185&type=chunk) - The provision for losses and LAE increased significantly to **$32.3 million** in Q1 2021 from **$8.1 million** in Q1 2020, mainly due to an increase in defaults related to COVID-19[191](index=191&type=chunk) Default Inventory Summary | Metric | Q1 2021 | Q1 2020 | | :--- | :--- | :--- | | Beginning default inventory | 31,469 | 5,947 | | New defaults | 7,422 | 3,933 | | Cures | (9,737) | (3,914) | | **Ending default inventory** | **29,080** | **5,841** | - Other underwriting and operating expenses remained stable at **$42.2 million** in Q1 2021 compared to **$41.9 million** in Q1 2020[205](index=205&type=chunk) [Liquidity and Capital Resources](index=38&type=section&id=Liquidity%20and%20Capital%20Resources) - As of March 31, 2021, the company had substantial liquidity, including **$81.0 million** in cash, **$449.3 million** in short-term investments, and **$300 million** available under its revolving credit facility[212](index=212&type=chunk) - Net cash and investments at the holding company level were **$540.3 million** at March 31, 2021[212](index=212&type=chunk) - Essent Guaranty's Available Assets under PMIERs 2.0 were **$3.00 billion**, exceeding the Minimum Required Assets of **$1.86 billion** as of March 31, 2021[229](index=229&type=chunk) - On May 5, 2021, Essent Guaranty paid a **$100 million** dividend to its parent, Essent US Holdings, Inc., after receiving required GSE approval[216](index=216&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=50&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's investment portfolio faces market risks including interest rate, credit, concentration, and prepayment risks, with an effective duration of **3.9 years** as of March 31, 2021 - The primary market risks managed by the company include interest rate changes, credit quality deterioration, concentration risk, and prepayment risk[257](index=257&type=chunk)[258](index=258&type=chunk)[259](index=259&type=chunk) - As of March 31, 2021, the effective duration of the company's investments available for sale was **3.9 years**, implying a **3.9%** change in fair value for every **100 basis point** change in interest rates[261](index=261&type=chunk) [Controls and Procedures](index=50&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2021, with no material changes to internal control over financial reporting - Based on an evaluation as of the end of the reporting period, the CEO and CFO concluded that the company's disclosure controls and procedures were effective[262](index=262&type=chunk) - No changes occurred in the company's internal control over financial reporting during the most recent fiscal quarter that materially affected, or are reasonably likely to materially affect, these controls[263](index=263&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=51&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently subject to any material legal proceedings - The company is not currently subject to any material legal proceedings[266](index=266&type=chunk) [Risk Factors](index=51&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors have occurred since the 2020 Annual Report on Form 10-K - There have been no material changes in risk factors from those disclosed in the company's 2020 Annual Report on Form 10-K[267](index=267&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=51&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased **70,521** common shares at an average price of **$43.39** per share in Q1 2021, primarily for employee tax withholding, not a formal buyback program Repurchases of Securities (Q1 2021) | Period | Total Number of Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | Jan 1 - Jan 31, 2021 | — | N/A | | Feb 1 - Feb 28, 2021 | — | N/A | | Mar 1 - Mar 31, 2021 | 70,521 | $43.39 | | **Total** | **70,521** | **N/A** | - All repurchased shares were tendered by employees to satisfy tax withholding obligations related to the vesting of restricted shares and were not part of a publicly announced buyback program[268](index=268&type=chunk) [Other Information](index=51&type=section&id=Item%205.%20Other%20Information) The 2021 Annual General Meeting of Shareholders saw the election of directors, ratification of auditors, and a non-binding advisory vote on executive compensation that did not pass - The 2021 Annual General Meeting of Shareholders was held on May 5, 2021[270](index=270&type=chunk) - Shareholders elected three Class I directors: Jane P. Chwick, Aditya Dutt, and Roy J. Kasmar[272](index=272&type=chunk) - The appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for 2021 was ratified[276](index=276&type=chunk) - A non-binding, advisory vote on executive compensation did not receive majority approval, with **54.9 million** votes against and **46.9 million** votes for[276](index=276&type=chunk) [Exhibits](index=52&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO and CFO certifications and financial statements in Inline XBRL format - Exhibits filed with the report include CEO and CFO certifications under Sarbanes-Oxley Sections 302 and 906[275](index=275&type=chunk) - The financial statements and notes were also submitted in Inline XBRL format as required[275](index=275&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-36157 ESSENT GROUP LTD. (Exact name of registrant as specified in its charter) Bermuda Not Applicable (State or other jurisdiction of in ...