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Reinsurance (Tables)

3 Months Ended

Mar. 31, 2025

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


	Three Months Ended March 31,
(In thousands)	2025		2024
Net premiums written:
Direct	$	272,394	$	268,931
Ceded (1)	(34,123)		(30,391)
Net premiums written	$	238,271	$	238,540

Net premiums earned:
Direct	$	279,971	$	275,981
Ceded (1)	(34,123)		(30,391)
Net premiums earned	$	245,848	$	245,590

(1)Net of profit commission.

The following table summarizes Essent Guaranty's quota share reinsurance agreements as of March 31, 2025:

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%

QSR-2025

January 1, 2025 - December 31, 2025

25%

QSR-2026

January 1, 2026 - December 31, 2026

25%

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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 March 31, 2025:


(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	$	22,498,132	$	6,194,669	$	165,266	$	277,360	June 26, 2028
Radnor Re 2021-2	Apr. 2021 - Sep. 2021	28,457,873		7,936,192		248,077		274,846		November 25, 2027
Radnor Re 2022-1	Oct. 2021 - Jul. 2022	26,997,277		7,409,659		160,941		298,719		September 25, 2028
Radnor Re 2023-1	Aug. 2022 - Jun. 2023	27,368,762		7,507,563		250,291		279,930		July 25, 2028
Radnor Re 2024-1	Jul. 2023 - Jul. 2024	28,317,296		7,832,167		316,494		256,495		September 25, 2029
Total		$	133,639,340	$	36,880,250	$	1,141,069	$	1,387,350

The following table summarizes Essent Guaranty's excess of loss reinsurance coverages and retentions provided by panels of reinsurers as of March 31, 2025:


(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	$	4,334,575	$	1,143,163	$	76,144	$	243,099	February 25, 2026
XOL 2020-1	Jan. 2019 - Aug. 2019	5,525,478		1,461,723		29,152		211,464		January 25, 2027
XOL 2022-1	Oct. 2021 - Dec. 2022	61,141,314		16,718,151		141,992		494,068		January 1, 2030
XOL 2023-1	Jan. 2023 - Dec. 2023	35,938,114		9,967,019		36,627		365,476		January 1, 2028
XOL 2024-1	Jan. 2024 - Dec. 2024	39,383,053		10,817,438		58,005		331,456		January 1, 2030
Total		$	146,322,534	$	40,107,494	$	341,920	$	1,645,563

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 condensed consolidated balance sheet and the estimated net present value of investment earnings on the assets in the reinsurance trusts, each as of March 31, 2025:


			Maximum Exposure to Loss
(In thousands)	Total VIE Assets		On - Balance Sheet		Off - Balance Sheet		Total
Radnor Re 2021-1 Ltd.	$	165,266	$	(5,453)	$	18	$	(5,435)
Radnor Re 2021-2 Ltd.	248,077		(6,016)		43		(5,973)
Radnor Re 2022-1 Ltd.	160,941		(210)		31		(179)
Radnor Re 2023-1 Ltd.	250,291		145		52		197
Radnor Re 2024-1 Ltd.	316,494		171		82		253
Total	$	1,141,069	$	(11,363)	$	226	$	(11,137)

- 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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