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Reinsurance
 12 Months Ended
Dec. 31, 2024
Reinsurance Disclosures [Abstract]  
Reinsurance Reinsurance
In the ordinary course of business, our insurance subsidiaries may use reinsurance to provide protection against adverse loss experience and to expand our capital sources. Reinsurance recoverables are recorded as assets and included in other assets on our consolidated balance sheets, predicated on a reinsurer's ability to meet their obligations under the reinsurance agreements. If the reinsurers are unable to satisfy their obligations under the agreements, our insurance subsidiaries would be liable for such defaulted amounts.
The effect of reinsurance on net premiums written and earned is as follows: 
Year Ended December 31,
(In thousands)202420232022
Net premiums written:
Direct$1,098,603 $1,028,781 $927,702 
Ceded (1)(132,023)(134,499)(107,673)
Net premiums written$966,580 $894,282 $820,029 
Net premiums earned:
Direct$1,122,905 $1,051,405 $950,200 
Ceded (1)(132,023)(134,499)(107,673)
Net premiums earned$990,882 $916,906 $842,527 
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(1)Net of profit commission.
Quota Share Reinsurance
Essent Guaranty has entered into quota share reinsurance agreements with panels of third-party reinsurers ("QSR" agreements). Each of the third-party reinsurers has an insurer minimum financial strength rating of A- or better by S&P Global Ratings, A.M. Best or both. Under each QSR agreement, Essent Guaranty will cede premiums earned on a percentage of risk on all eligible policies written during a specified period, in exchange for reimbursement of ceded claims and claims expenses on covered policies, a specified ceding commission, as well as a profit commission that varies directly and inversely with ceded claims. Essent Guaranty has certain termination rights under each QSR agreement, including the option to terminate each QSR agreement subject to a termination fee.
The following tables summarizes Essent Guaranty's quota share reinsurance agreements as of December 31, 2024:
QSR AgreementCoverage PeriodCeding Percentage
QSR-2019
September 1, 2019 - December 31, 2020
(1)
QSR-2022
January 1, 2022 - December 31, 2022
20%
QSR-2023January 1, 2023 - December 31, 202317.5%
QSR-2024
January 1, 2024 - December 31, 2024
15.0%
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(1) Under QSR-2019, Essent Guaranty cedes 40% of premiums on singles policies and 20% on all other policies.

Total RIF ceded under these QSR agreements was $8.6 billion as of December 31, 2024.
Excess of Loss Reinsurance
Essent Guaranty has entered into fully collateralized reinsurance agreements ("Radnor Re Transactions") with unaffiliated special purpose insurers domiciled in Bermuda. For the reinsurance coverage periods, Essent Guaranty and its affiliates retain the first layer of the respective aggregate losses, and a Radnor Re special purpose insurer will then provide second layer coverage up to the outstanding reinsurance coverage amount. Essent Guaranty and its affiliates retain losses in excess of the outstanding reinsurance coverage amount. The reinsurance premium due to each Radnor Re special purpose insurer is calculated by multiplying the outstanding reinsurance coverage amount at the beginning of a period by a coupon rate, which is the sum of one-month SOFR plus a risk margin, and then subtracting actual investment income collected on the assets in the related reinsurance trust during that period. The aggregate excess of loss reinsurance coverage decreases over a ten-year period as the underlying covered mortgages amortize. Essent Guaranty has rights to terminate the Radnor Re Transactions. The Radnor Re entities collateralized the coverage by issuing mortgage insurance-linked notes ("ILNs") in an aggregate amount equal to the initial coverage to unaffiliated investors. The notes have ten-year legal maturities and are non-recourse to any assets of Essent Guaranty or its affiliates. The proceeds of the notes were deposited into reinsurance trusts for the benefit of Essent Guaranty and will be the source of reinsurance claim payments to Essent Guaranty and principal repayments on the ILNs. During the year ended December 31, 2023, Radnor Re 2019-1 and Radnor Re 2020-1 retired approximately 100% and 99%,
respectively of their outstanding notes through tender offers made by these special purpose insurers. As of December 31, 2024, all outstanding notes of Radnor Re 2019-1 and 2020-1 were retired.
Essent Guaranty has entered into reinsurance agreements with panels of reinsurers that provide excess of loss coverage on new insurance written from January 1, 2018 through August 31, 2019 and from October 1, 2021 through December 31, 2024. For the reinsurance coverage periods, Essent Guaranty and its affiliates retain the first layer of the respective aggregate losses, and the reinsurance panels will then provide second layer coverage up to the outstanding reinsurance coverage amounts. Essent Guaranty and its affiliates retain losses in excess of the outstanding reinsurance coverage amounts. Essent Guaranty has rights to terminate these reinsurance agreements.
The following table summarizes Essent Guaranty's excess of loss coverages and retentions provided by insurance linked notes as of December 31, 2024:
(In thousands)
Deal NameVintageRemaining
Insurance
in Force		Remaining
Risk
in Force		Remaining
Reinsurance in Force		Remaining
First Layer
Retention		Optional Termination Date
Radnor Re 2021-1Aug. 2020 - Mar. 2021$23,839,935 $6,533,211 $190,062 $277,698 June 26, 2028
Radnor Re 2021-2Apr. 2021 - Sep. 202129,757,565 8,243,653 265,134 276,141 November 25, 2027
Radnor Re 2022-1Oct. 2021 - Jul. 202227,859,437 7,621,952 175,026 300,105 September 25, 2028
Radnor Re 2023-1
Aug. 2022 - Jun. 2023
28,058,061 7,690,718 268,320 280,559 July 25, 2028
Radnor Re 2024-1
Jul. 2023 - Jul. 2024
29,033,466 8,025,937 331,415 256,495 September 25, 2029
Total$138,548,464 $38,115,471 $1,229,957 $1,390,998 

The following table summarizes Essent Guaranty's excess of loss reinsurance coverages and retentions provided by panels of reinsurers as of December 31, 2024:

(In thousands)
Deal NameVintageRemaining
Insurance
in Force		Remaining
Risk
in Force		Remaining
Reinsurance in Force		Remaining
First Layer
Retention		Optional Termination Date
XOL 2019-1Jan. 2018 - Dec. 2018$4,535,941 $1,195,244 $76,144 $243,704 February 25, 2026
XOL 2020-1Jan. 2019 - Dec. 20195,760,682 1,522,699 29,152 211,678 January 25, 2027
XOL 2022-1Oct. 2021 - Dec. 202263,001,325 17,184,107 141,992 496,864 January 1, 2030
XOL 2023-1
Jan. 2023 - Dec. 2023
36,841,903 10,211,722 36,627 366,028 January 1, 2028
XOL 2024-1
Jan. 2024 - Dec. 2024
40,244,132 11,048,540 58,005 331,456 January 1, 2030
Total$150,383,983 $41,162,312 $341,920 $1,649,730 

The amount of monthly reinsurance premiums ceded to the Radnor Re entities will fluctuate due to changes in one-month SOFR and changes in money market rates that affect investment income collected on the assets in the reinsurance trusts. As the reinsurance premium will vary based on changes in these rates, we concluded that the Radnor Re Transactions contain embedded derivatives that will be accounted for separately like freestanding derivatives. The change in the fair value of the embedded derivatives is reported in earnings and included in other income.
In connection with the Radnor Re Transactions, we concluded that the risk transfer requirements for reinsurance accounting were met as each Radnor Re entity is assuming significant insurance risk and a reasonable possibility of a significant loss. In addition, we assessed whether each Radnor Re entity was a variable interest entity ("VIE") and the appropriate accounting for the Radnor Re entities if they were VIEs. A VIE is a legal entity that does not have sufficient equity at risk to finance its activities without additional subordinated financial support or is structured such that equity investors lack the ability to make significant decisions relating to the entity’s operations through voting rights or do not substantively participate in the gains and losses of the entity. A VIE is consolidated by its primary beneficiary. The primary beneficiary is the entity that has both (1) the power to direct the activities of the VIE that most significantly affect the entity’s economic performance and (2) the obligation to absorb losses or the right to receive benefits that could be potentially significant to the VIE. While also considering these factors, the consolidation conclusion depends on the breadth of the decision-making ability
and ability to influence activities that significantly affect the economic performance of the VIE. We concluded that the Radnor Re entities are VIEs. However, given that Essent Guaranty (1) does not have the unilateral power to direct the activities that most significantly affect their economic performance and (2) does not have the obligation to absorb losses or the right to receive benefits that could be potentially significant to these entities, the Radnor Re entities are not consolidated in these financial statements.
The following table presents total assets of each Radnor Re special purpose insurer as well as our maximum exposure to loss associated with each Radnor Re entity, representing the fair value of the embedded derivatives, using observable inputs in active markets (Level 2), included in other assets (other accrued liabilities) on our consolidated balance sheet and the estimated net present value of investment earnings on the assets in the reinsurance trusts, each as of December 31, 2024:
Maximum Exposure to Loss
(In thousands)Total VIE AssetsOn - Balance SheetOff - Balance SheetTotal
Radnor Re 2021-1 Ltd.$190,062 $(5,560)$15 $(5,545)
Radnor Re 2021-2 Ltd.265,134 (5,863)50 (5,813)
Radnor Re 2022-1 Ltd.175,026 (167)33 (134)
Radnor Re 2023-1 Ltd.268,320 111 51 162 
Radnor Re 2024-1 Ltd.331,415 $267 $82 $349 
Total$1,229,957 $(11,212)$231 $(10,981)

The assets of Radnor Re are the source of reinsurance claim payments to Essent Guaranty and provide capital relief under the PMIERs financial strength requirements (see Note 16). A decline in the assets available to pay claims would reduce the capital relief available to Essent Guaranty.