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Segment Reporting | 12 Months Ended
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Dec. 31, 2024
Segment Reporting [Abstract] |
Segment Reporting | Segment Reporting We have one reportable business segment: Mortgage Insurance. Our Mortgage Insurance segment offers private mortgage insurance and reinsurance for mortgages secured by residential properties located in the United States. We provide private mortgage insurance on residential first-lien mortgage loans (“U.S. mortgage insurance”) through our U.S. mortgage insurance subsidiary, Essent Guaranty, and also offer other credit risk management solutions, including contract underwriting, to our customers. Through our Bermuda-based reinsurance subsidiary, Essent Re, we reinsure U.S. mortgage risk primarily through the GSE credit risk transfer market (“GSE and other risk share”) and provide underwriting consulting services to third-party reinsurers. Our U.S. mortgage insurance business and GSE and other risk share business each represent operating segments that we have aggregated as one reportable segment based on their shared economic characteristics and the similarities between the two operating segments. In addition, our "Corporate & Other" category is used to reconcile our reportable segment to consolidated results and includes business activities associated with our title insurance operations, income and losses from holding company treasury operations, as well as general corporate operating expenses not attributable to our operating segments. Our title insurance operations are an operating segment that does not meet the quantitative thresholds of a separate reportable segment. We allocate corporate management and support expenses to operating segments based on their percentage of total operating segment revenues, which approximates the estimated percentage of management time and resources spent on each operating segment. We view our borrowings as holding company capital and liquidity and as such, all interest expense is included in Corporate & Other. Our senior management team, including our President & Chief Executive Officer (Essent's chief operating decision maker or "CODM"), uses income (loss) before income taxes as the primary measure to evaluate the financial performance of the operating segments and to allocate resources to those segments, including capital allocations and assessing headcount. The CODM also assesses the profitability of our Mortgage Insurance segment through analysis of the loss ratio, expense ratio and combined ratio. We do not manage our segments by assets. Segment Information: Profit & Loss The following tables reconcile the components of reportable segment profit and loss to consolidated profit and loss. Within the tables, we have disclosed significant segment expenses at a level of disaggregation that coincides with what is regularly provided to the CODM. Other underwriting and operating expenses in the Mortgage Insurance segment include software, professional fees, travel, and occupancy costs. The accounting policies of our operating segments are the same as those described in the summary of significant accounting policies. We do not have inter-segment transactions.
|  | Year Ended December 31, 2024
(In thousands) |  | Mortgage Insurance |  | Corporate & Other |  | Consolidated
Revenues: |  |  |  |  |  |
Net premiums earned |  | $ | 924,676 |  |  | $ | 66,206 |  |  | $ | 990,882 |
Net investment income |  | 183,341 |  |  | 38,729 |  |  | 222,070 |
Realized investment (losses) gains, net |  | (2,343) |  |  | (7) |  |  | (2,350) |
Income (loss) from other invested assets |  | 7,171 |  |  | 204 |  |  | 7,375 |
Other income |  | 14,152 |  |  | 10,775 |  |  | 24,927 |
Total revenues |  | 1,126,997 |  |  | 115,907 |  |  | 1,242,904 |
Losses and expenses: |  |  |  |  |  |
Provision (benefit) for losses and LAE |  | 75,182 |  |  | 6,038 |  |  | 81,220 |
Compensation and benefits |  | 72,156 |  |  | 64,236 |  |  | 136,392 |
Premium and other taxes |  | 23,007 |  |  | 1,497 |  |  | 24,504 |
Ceding commission |  | (24,248) |  |  | — |  |  | (24,248) |
Other underwriting and operating expenses |  | 44,829 |  |  | 89,397 |  |  | 134,226 |
Net operating expenses before allocations |  | 115,744 |  |  | 155,130 |  |  | 270,874 |
Corporate expense allocations |  | 43,787 |  |  | (43,787) |  |  | — |
Operating expenses after allocations |  | 159,531 |  |  | 111,343 |  |  | 270,874 |
Interest expense |  | — |  |  | 35,319 |  |  | 35,319 |
Income (loss) before income taxes |  | $ | 892,284 |  |  | $ | (36,793) |  |  | $ | 855,491 |
Loss ratio (1) |  | 8.1 | % |  |  |  |
Expense ratio (2) |  | 17.3 | % |  |  |  |
Combined ratio |  | 25.4 | % |  |  |  |
(1) Loss ratio is calculated by dividing the provision (benefit) for losses and LAE by net premiums earned. |  |  |  |  |  |
(2) Expense ratio is calculated by dividing operating expenses after allocations by net premiums earned. |  |  |  |  |  |
|  | Year Ended December 31, 2023
(In thousands) |  | Mortgage Insurance |  | Corporate & Other |  | Consolidated
Revenues: |  |  |  |  |  |
Net premiums earned |  | $ | 878,937 |  |  | $ | 37,969 |  |  | $ | 916,906 |
Net investment income |  | 159,868 |  |  | 26,271 |  |  | 186,139 |
Realized investment (losses) gains, net |  | (6,392) |  |  | (812) |  |  | (7,204) |
Income (loss) from other invested assets |  | (490) |  |  | (10,628) |  |  | (11,118) |
Other income |  | 20,692 |  |  | 4,344 |  |  | 25,036 |
Total revenues |  | 1,052,615 |  |  | 57,144 |  |  | 1,109,759 |
Losses and expenses: |  |  |  |  |  |
Provision (benefit) for losses and LAE |  | 30,120 |  |  | 1,422 |  |  | 31,542 |
Compensation and benefits |  | 68,996 |  |  | 45,902 |  |  | 114,898 |
Premium and other taxes |  | 22,544 |  |  | (376) |  |  | 22,168 |
Ceding commission |  | (21,326) |  |  | — |  |  | (21,326) |
Other underwriting and operating expenses |  | 44,968 |  |  | 64,373 |  |  | 109,341 |
Net operating expenses before allocations |  | 115,182 |  |  | 109,899 |  |  | 225,081 |
Corporate expense allocations |  | 47,274 |  |  | (47,274) |  |  | — |
Operating expenses after allocations |  | 162,456 |  |  | 62,625 |  |  | 225,081 |
Interest expense |  | — |  |  | 30,137 |  |  | 30,137 |
Income (loss) before income taxes |  | $ | 860,039 |  |  | $ | (37,040) |  |  | $ | 822,999 |
Loss ratio (1) |  | 3.4 | % |  |  |  |
Expense ratio (2) |  | 18.5 | % |  |  |  |
Combined ratio |  | 21.9 | % |  |  |  |
(1) Loss ratio is calculated by dividing the provision (benefit) for losses and LAE by net premiums earned. |  |  |  |  |  |
(2) Expense ratio is calculated by dividing operating expenses after allocations by net premiums earned. |  |  |  |  |  |
|  | Year Ended December 31, 2022
Summary of Profit & Loss (In thousands) |  | Mortgage Insurance |  | Corporate & Other |  | Consolidated
Revenues: |  |  |  |  |  |
Net premiums earned |  | $ | 842,527 |  |  | $ | — |  |  | $ | 842,527 |
Net investment income |  | 112,285 |  |  | 12,124 |  |  | 124,409 |
Realized investment (losses) gains, net |  | (1,829) |  |  | (11,343) |  |  | (13,172) |
Income (loss) from other invested assets |  | 33,142 |  |  | (4,466) |  |  | 28,676 |
Other income |  | 18,384 |  |  | — |  |  | 18,384 |
Total revenues |  | 1,004,509 |  |  | (3,685) |  |  | 1,000,824 |
Losses and expenses: |  |  |  |  |  |
Provision (benefit) for losses and LAE |  | (174,704) |  |  | — |  |  | (174,704) |
Compensation and benefits |  | 66,410 |  |  | 33,892 |  |  | 100,302 |
Premium and other taxes |  | 20,977 |  |  | — |  |  | 20,977 |
Ceding commission |  | (17,516) |  |  | — |  |  | (17,516) |
Other underwriting and operating expenses |  | 41,634 |  |  | 26,336 |  |  | 67,970 |
Net operating expenses before allocations |  | 111,505 |  |  | 60,228 |  |  | 171,733 |
Corporate expense allocations |  | 48,100 |  |  | (48,100) |  |  | — |
Operating expenses after allocations |  | 159,605 |  |  | 12,128 |  |  | 171,733 |
Interest expense |  | — |  |  | 15,608 |  |  | 15,608 |
Income (loss) before income tax expense |  | $ | 1,019,608 |  |  | $ | (31,421) |  |  | $ | 988,187 |
Loss ratio (1) |  | (20.7) | % |  |  |  |
Expense ratio (2) |  | 18.9 | % |  |  |  |
Combined ratio |  | (1.8) | % |  |  |  |
(1) Loss ratio is calculated by dividing the provision (benefit) for losses and LAE by net premiums earned. |  |  |  |  |  |
(2) Expense ratio is calculated by dividing operating expenses after allocations by net premiums earned. |  |  |  |  |  |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 48 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-48 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards 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