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Reinsurance (Tables)

12 Months Ended

Dec. 31, 2024

The effect of reinsurance on net premiums written and earned is as follows:


	Year Ended December 31,
(In thousands)	2024		2023		2022
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.

The following tables summarizes Essent Guaranty's quota share reinsurance agreements as of December 31, 2024:

QSR Agreement

Coverage Period

Ceding Percentage

QSR-2019

September 1, 2019 - December 31, 2020

(1)

QSR-2022

January 1, 2022 - December 31, 2022

20%

QSR-2023

January 1, 2023 - December 31, 2023

17.5%

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.

Schedule of Coverages and Retentions

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 Name	Vintage	Remaining Insurance in Force		Remaining Risk in Force		Remaining Reinsurance in Force		Remaining First Layer Retention		Optional Termination Date

Radnor Re 2021-1	Aug. 2020 - Mar. 2021	$	23,839,935	$	6,533,211	$	190,062	$	277,698	June 26, 2028
Radnor Re 2021-2	Apr. 2021 - Sep. 2021	29,757,565		8,243,653		265,134		276,141		November 25, 2027
Radnor Re 2022-1	Oct. 2021 - Jul. 2022	27,859,437		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 Name	Vintage	Remaining Insurance in Force		Remaining Risk in Force		Remaining Reinsurance in Force		Remaining First Layer Retention		Optional Termination Date
XOL 2019-1	Jan. 2018 - Dec. 2018	$	4,535,941	$	1,195,244	$	76,144	$	243,704	February 25, 2026
XOL 2020-1	Jan. 2019 - Dec. 2019	5,760,682		1,522,699		29,152		211,678		January 25, 2027
XOL 2022-1	Oct. 2021 - Dec. 2022	63,001,325		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

Schedule of VIE Assets and Total Maximum Exposure to Loss

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 Assets		On - Balance Sheet		Off - Balance Sheet		Total




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)

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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