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Investments
 9 Months Ended
Sep. 30, 2022
Investments, Debt and Equity Securities [Abstract]  
Investments Investments
 
Investments available for sale consist of the following:
September 30, 2022 (In thousands)Amortized
Cost		Unrealized
Gains		Unrealized
Losses		Fair
Value
U.S. Treasury securities$566,466 $2 $(30,832)$535,636 
U.S. agency securities— — — — 
U.S. agency mortgage-backed securities879,028 — (126,792)752,236 
Municipal debt securities (1)627,772 95 (68,083)559,784 
Non-U.S. government securities70,126 — (9,292)60,834 
Corporate debt securities (2)1,501,150 7 (155,888)1,345,269 
Residential and commercial mortgage securities586,771 123 (63,286)523,608 
Asset-backed securities645,522 15 (37,207)608,330 
Money market funds199,147 — — 199,147 
Total investments available for sale$5,075,982 $242 $(491,380)$4,584,844 
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 
 September 30,December 31,
(1) The following table summarizes municipal debt securities as of:20222021
Special revenue bonds78.5 %77.1 %
General obligation bonds21.5 20.5 
Certificate of participation bonds — 1.9 
Tax allocation bonds— 0.5 
Total100.0 %100.0 %
 September 30,December 31,
(2) The following table summarizes corporate debt securities as of:20222021
Financial39.4 %33.7 %
Consumer, non-cyclical17.5 19.8 
Communications8.8 11.4 
Industrial6.8 7.0 
Consumer, cyclical7.2 7.0 
Energy6.6 6.0 
Technology5.6 6.8 
Utilities6.1 4.6 
Basic materials2.0 3.7 
Total100.0 %100.0 %
The amortized cost and fair value of investments available for sale at September 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$169,120 $167,667 
Due after 1 but within 5 years353,483 330,053 
Due after 5 but within 10 years38,835 34,103 
Due after 10 years5,028 3,813 
Subtotal566,466 535,636 
U.S. agency securities:  
Due in 1 year— — 
Due after 1 but within 5 years— — 
Subtotal— — 
Municipal debt securities:  
Due in 1 year6,992 6,943 
Due after 1 but within 5 years141,922 137,108 
Due after 5 but within 10 years164,538 151,508 
Due after 10 years314,320 264,225 
Subtotal627,772 559,784 
Non-U.S. government securities:
Due in 1 year10,452 10,396 
Due after 1 but within 5 years27,362 25,697 
Due after 5 but within 10 years8,893 7,979 
Due after 10 years23,419 16,762 
Subtotal70,126 60,834 
Corporate debt securities:  
Due in 1 year235,975 233,177 
Due after 1 but within 5 years696,023 657,186 
Due after 5 but within 10 years419,294 345,569 
Due after 10 years149,858 109,337 
Subtotal1,501,150 1,345,269 
U.S. agency mortgage-backed securities879,028 752,236 
Residential and commercial mortgage securities586,771 523,608 
Asset-backed securities645,522 608,330 
Money market funds199,147 199,147 
Total investments available for sale$5,075,982 $4,584,844 
The components of realized investment (losses) gains, net on the condensed consolidated statements of comprehensive income were as follows:
 
 Three Months Ended September 30,Nine Months Ended September 30,
(In thousands)2022202120222021
Realized gross gains$1,650 $654 $14,397 $1,422 
Realized gross losses(1,370)(433)(14,634)(813)
Impairment loss(105)— (7,411)— 
 
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
September 30, 2022 (In thousands)Fair
Value		Gross
Unrealized
Losses		Fair
Value		Gross
Unrealized
Losses		Fair
Value		Gross
Unrealized
Losses
U.S. Treasury securities$361,655 $(15,490)$161,968 $(15,342)$523,623 $(30,832)
U.S. agency mortgage-backed securities508,415 (74,350)243,821 (52,442)752,236 (126,792)
Municipal debt securities527,796 (64,097)14,588 (3,986)542,384 (68,083)
Non-U.S. government securities51,784 (5,922)9,050 (3,370)60,834 (9,292)
Corporate debt securities1,166,786 (127,688)143,745 (28,200)1,310,531 (155,888)
Residential and commercial mortgage securities
376,356 (38,046)143,118 (25,240)519,474 (63,286)
Asset-backed securities481,105 (27,029)122,339 (10,178)603,444 (37,207)
Total$3,473,897 $(352,622)$838,629 $(138,758)$4,312,526 $(491,380)
 
 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 September 30, 2022 and December 31, 2021, we held 2,720 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 September 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 September 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 nine months ended September 30, 2022, we recorded impairments of $0.1 million and $7.4 million, respectively, due to our intent to sell securities in an unrealized loss position. There were no impairments recorded during the three or nine months ended September 30, 2021.
The Company's other invested assets at September 30, 2022 and December 31, 2021 totaled $263.1 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 nine months ended September 30, 2022, includes $9.9 million and $22.5 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 $172.6 million as of September 30, 2022. The majority of these investments were in limited partnerships invested in real estate or technology. At September 30, 2022, maximum future funding commitments were $29.3 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 $9.1 million at September 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 September 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 $8.6 million at September 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 September 30, 2022 and $9.0 million at December 31, 2021.

Net investment income consists of: 
 Three Months Ended September 30,Nine Months Ended September 30,
(In thousands)2022202120222021
Fixed maturities$33,948 $23,001 $91,245 $69,037 
Short-term investments872 30 1,132 158 
Gross investment income34,820 23,031 92,377 69,195 
Investment expenses(2,226)(1,458)(5,764)(4,091)
Net investment income$32,594 $21,573 $86,613 $65,104