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Investments
 6 Months Ended
Jun. 30, 2022
Investments, Debt and Equity Securities [Abstract]  
Investments Investments
 
Investments available for sale consist of the following:
June 30, 2022 (In thousands)Amortized
Cost		Unrealized
Gains		Unrealized
Losses		Fair
Value
U.S. Treasury securities$489,448 $358 $(19,660)$470,146 
U.S. agency securities2,000 — — 2,000 
U.S. agency mortgage-backed securities867,198 21 (83,781)783,438 
Municipal debt securities (1)581,406 2,158 (42,792)540,772 
Non-U.S. government securities71,378 265 (6,508)65,135 
Corporate debt securities (2)1,463,318 361 (109,569)1,354,110 
Residential and commercial mortgage securities591,239 87 (45,327)545,999 
Asset-backed securities645,854 26 (27,765)618,115 
Money market funds240,625 — — 240,625 
Total investments available for sale$4,952,466 $3,276 $(335,402)$4,620,340 
December 31, 2021 (In thousands)Amortized
Cost		Unrealized
Gains		Unrealized
Losses		Fair
Value
U.S. Treasury securities$447,926 $3,833 $(2,966)$448,793 
U.S. agency securities5,501 3 — 5,504 
U.S. agency mortgage-backed securities1,005,611 13,365 (10,113)1,008,863 
Municipal debt securities (1)598,764 30,122 (1,287)627,599 
Non-U.S. government securities77,366 3,232 (855)79,743 
Corporate debt securities (2)1,428,645 36,067 (9,465)1,455,247 
Residential and commercial mortgage securities541,638 10,452 (6,667)545,423 
Asset-backed securities582,144 1,673 (2,114)581,703 
Money market funds210,012 — — 210,012 
Total investments available for sale$4,897,607 $98,747 $(33,467)$4,962,887 
 June 30,December 31,
(1) The following table summarizes municipal debt securities as of:20222021
Special revenue bonds78.0 %77.1 %
General obligation bonds21.9 20.5 
Certificate of participation bonds — 1.9 
Tax allocation bonds0.1 0.5 
Total100.0 %100.0 %
 June 30,December 31,
(2) The following table summarizes corporate debt securities as of:20222021
Financial38.0 %33.7 %
Consumer, non-cyclical17.1 19.8 
Communications9.9 11.4 
Industrial7.0 7.0 
Consumer, cyclical7.2 7.0 
Energy6.8 6.0 
Technology6.0 6.8 
Utilities6.0 4.6 
Basic materials2.0 3.7 
Total100.0 %100.0 %
The amortized cost and fair value of investments available for sale at June 30, 2022, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Because most U.S. agency mortgage-backed securities, residential and commercial mortgage securities and asset-backed securities provide for periodic payments throughout their lives, they are listed below in separate categories.
 
(In thousands)Amortized
Cost		Fair
Value
U.S. Treasury securities:  
Due in 1 year$108,482 $107,709 
Due after 1 but within 5 years336,849 321,947 
Due after 5 but within 10 years39,085 36,247 
Due after 10 years5,032 4,243 
Subtotal489,448 470,146 
U.S. agency securities:  
Due in 1 year2,000 2,000 
Due after 1 but within 5 years— — 
Subtotal2,000 2,000 
Municipal debt securities:  
Due in 1 year5,969 5,971 
Due after 1 but within 5 years135,891 135,078 
Due after 5 but within 10 years179,701 173,078 
Due after 10 years259,845 226,645 
Subtotal581,406 540,772 
Non-U.S. government securities:
Due in 1 year10,451 10,491 
Due after 1 but within 5 years27,720 26,989 
Due after 5 but within 10 years8,885 8,440 
Due after 10 years24,322 19,215 
Subtotal71,378 65,135 
Corporate debt securities:  
Due in 1 year250,985 249,089 
Due after 1 but within 5 years650,651 627,318 
Due after 5 but within 10 years425,659 370,729 
Due after 10 years136,023 106,974 
Subtotal1,463,318 1,354,110 
U.S. agency mortgage-backed securities867,198 783,438 
Residential and commercial mortgage securities591,239 545,999 
Asset-backed securities645,854 618,115 
Money market funds240,625 240,625 
Total investments available for sale$4,952,466 $4,620,340 
The components of realized investment (losses) gains, net on the condensed consolidated statements of comprehensive income were as follows:
 
 Three Months Ended June 30,Six Months Ended June 30,
(In thousands)2022202120222021
Realized gross gains$171 $18 $12,747 $768 
Realized gross losses(173)(271)(13,264)(380)
Impairment loss(469)— (7,306)— 
 
The fair value of investments available for sale in an unrealized loss position and the related unrealized losses for which no allowance for credit loss has been recorded were as follows:
 
 Less than 12 months12 months or moreTotal
June 30, 2022 (In thousands)Fair
Value		Gross
Unrealized
Losses		Fair
Value		Gross
Unrealized
Losses		Fair
Value		Gross
Unrealized
Losses
U.S. Treasury securities$351,173 $(14,844)$75,530 $(4,816)$426,703 $(19,660)
U.S. agency mortgage-backed securities580,870 (55,313)195,262 (28,468)776,132 (83,781)
Municipal debt securities379,124 (41,896)6,161 (896)385,285 (42,792)
Non-U.S. government securities24,663 (2,893)12,551 (3,615)37,214 (6,508)
Corporate debt securities1,087,132 (86,308)128,734 (23,261)1,215,866 (109,569)
Residential and commercial mortgage securities
444,392 (32,637)93,519 (12,690)537,911 (45,327)
Asset-backed securities538,273 (25,420)64,208 (2,345)602,481 (27,765)
Total$3,405,627 $(259,311)$575,965 $(76,091)$3,981,592 $(335,402)
 
 Less than 12 months12 months or moreTotal
December 31, 2021 (In thousands)Fair
Value		Gross
Unrealized
Losses		Fair
Value		Gross
Unrealized
Losses		Fair
Value		Gross
Unrealized
Losses
U.S. Treasury securities$207,122 $(2,170)$28,012 $(796)$235,134 $(2,966)
U.S. agency mortgage-backed securities582,108 (9,414)26,131 (699)608,239 (10,113)
Municipal debt securities91,719 (1,281)312 (6)92,031 (1,287)
Non-U.S. government securities22,986 (855)— — 22,986 (855)
Corporate debt securities522,120 (7,200)46,875 (2,265)568,995 (9,465)
Residential and commercial mortgage securities
268,617 (5,200)38,256 (1,467)306,873 (6,667)
Asset-backed securities339,137 (1,954)13,101 (160)352,238 (2,114)
Total$2,033,809 $(28,074)$152,687 $(5,393)$2,186,496 $(33,467)
 
At June 30, 2022 and December 31, 2021, we held 2,465 and 1,180 individual investment securities, respectively, that were in an unrealized loss position. We assess our intent to sell these securities and whether we will be required to sell these securities before the recovery of their amortized cost basis when determining whether to record an impairment on the securities in an unrealized loss position. In assessing whether the decline in the fair value at June 30, 2022 of any of these securities resulted from a credit loss or other factors, we made inquiries of our investment managers to determine that each issuer was current on its scheduled interest and principal payments. We reviewed the credit rating of these securities noting that approximately 98% of the securities at June 30, 2022 had investment-grade ratings. We concluded that gross unrealized losses noted above were primarily associated with the changes in interest rates subsequent to purchase rather than due to credit. During the three and six months ended June 30, 2022, we recorded impairments of $0.5 million and $7.3 million, respectively, due to our intent to sell securities in an unrealized loss position. There were no impairments recorded during the three or six months ended June 30, 2021.
The Company's other invested assets at June 30, 2022 and December 31, 2021 totaled $217.8 million and $170.5 million, respectively. Other invested assets are principally comprised of limited partnership interests which are generally accounted for under the equity method or fair value using net asset value (or its equivalent) as a practical expedient. Our proportionate share of earnings or losses or changes in fair value are reported in income from other invested assets on the condensed consolidated statements of comprehensive income. For entities accounted for under the equity method that follow industry-specific guidance for investment companies, our proportionate share of earnings or losses includes changes in the fair value of the underlying assets of these entities. Due to the timing of receiving financial information from these partnerships, the results are generally reported on a one month or quarter lag.

Through June 30, 2021, unrealized gains and losses reported by these entities were included in other comprehensive income (“OCI”). Subsequent to June 30, 2021, management concluded that unrealized gains and losses on these investments should be reflected in earnings rather than OCI. Income from other invested assets for the three and six months ended June 30, 2022, includes $2.4 million of net unrealized losses and $12.6 million of net unrealized gains, respectively.

Other invested assets that are accounted for at fair value using the net asset value (or its equivalent) as a practical expedient totaled $134.5 million as of June 30, 2022. Substantially all of these investments were in limited partnerships invested in real estate or technology. At June 30, 2022, maximum future funding commitments were $28.6 million. For limited partnership investments that have a contractual expiration date, we expect the liquidation of the underlying assets to occur over the next two to nine years. For certain of these investments, the Company does not have the contractual option to redeem, but receives distributions based on the liquidation of the underlying assets. In addition, the Company generally does not have the ability to sell or transfer these investments without the consent from the general partner of individual limited partnerships.

The fair value of investments deposited with insurance regulatory authorities to meet statutory requirements was $9.3 million at June 30, 2022 and $9.7 million at December 31, 2021. In connection with its insurance and reinsurance activities, Essent Re is required to maintain assets in trusts for the benefit of its contractual counterparties. The fair value of the investments on deposit in these trusts was $1.0 billion at June 30, 2022 and $982.6 million at December 31, 2021. Essent Guaranty is required to maintain assets on deposit in connection with its fully collateralized reinsurance agreements (see Note 4). The fair value of the assets on deposit was $8.5 million at June 30, 2022 and $8.5 million at December 31, 2021. Essent Guaranty is also required to maintain assets on deposit for the benefit of the sponsor of a fixed income investment commitment. The fair value of the assets on deposit was $9.0 million at June 30, 2022 and $9.0 million at December 31, 2021.

Net investment income consists of: 
 Three Months Ended June 30,Six Months Ended June 30,
(In thousands)2022202120222021
Fixed maturities$31,074 $23,012 $57,298 $46,036 
Short-term investments215 47 258 128 
Gross investment income31,289 23,059 57,556 46,164 
Investment expenses(1,950)(1,316)(3,537)(2,633)
Net investment income$29,339 $21,743 $54,019 $43,531