0001448893 false--12-31 2025 Q2 false false false false P1Y P3Y P3Y 33.33 33.33 33.33 33.33 33.33 33.33 xbrli:shares iso4217:USD iso4217:USD xbrli:shares xbrli:pure esnt:state esnt:segment esnt:security esnt:agreement esnt:loan esnt:vote 0001448893 2025-01-01 2025-06-30 0001448893 2025-07-31 0001448893 2025-04-01 2025-06-30 0001448893 us-gaap:FixedMaturitiesMember 2025-06-30 0001448893 us-gaap:FixedMaturitiesMember 2024-12-31 0001448893 us-gaap:ShortTermInvestmentsMember 2025-06-30 0001448893 us-gaap:ShortTermInvestmentsMember 2024-12-31 0001448893 2025-06-30 0001448893 2024-12-31 0001448893 2024-04-01 2024-06-30 0001448893 2024-01-01 2024-06-30 0001448893 us-gaap:CommonStockMember 2025-03-31 0001448893 us-gaap:CommonStockMember 2024-03-31 0001448893 us-gaap:CommonStockMember 2024-12-31 0001448893 us-gaap:CommonStockMember 2023-12-31 0001448893 us-gaap:CommonStockMember 2025-04-01 2025-06-30 0001448893 us-gaap:CommonStockMember 2024-04-01 2024-06-30 0001448893 us-gaap:CommonStockMember 2025-01-01 2025-06-30 0001448893 us-gaap:CommonStockMember 2024-01-01 2024-06-30 0001448893 us-gaap:CommonStockMember 2025-06-30 0001448893 us-gaap:CommonStockMember 2024-06-30 0001448893 us-gaap:AdditionalPaidInCapitalMember 2025-03-31 0001448893 us-gaap:AdditionalPaidInCapitalMember 2024-03-31 0001448893 us-gaap:AdditionalPaidInCapitalMember 2024-12-31 0001448893 us-gaap:AdditionalPaidInCapitalMember 2023-12-31 0001448893 us-gaap:AdditionalPaidInCapitalMember 2025-04-01 2025-06-30 0001448893 us-gaap:AdditionalPaidInCapitalMember 2024-04-01 2024-06-30 0001448893 us-gaap:AdditionalPaidInCapitalMember 2025-01-01 2025-06-30 0001448893 us-gaap:AdditionalPaidInCapitalMember 2024-01-01 2024-06-30 0001448893 us-gaap:AdditionalPaidInCapitalMember 2025-06-30 0001448893 us-gaap:AdditionalPaidInCapitalMember 2024-06-30 0001448893 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2025-03-31 0001448893 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2024-03-31 0001448893 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2024-12-31 0001448893 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2023-12-31 0001448893 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2025-04-01 2025-06-30 0001448893 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2024-04-01 2024-06-30 0001448893 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2025-01-01 2025-06-30 0001448893 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2024-01-01 2024-06-30 0001448893 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2025-06-30 0001448893 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2024-06-30 0001448893 us-gaap:RetainedEarningsMember 2025-03-31 0001448893 us-gaap:RetainedEarningsMember 2024-03-31 0001448893 us-gaap:RetainedEarningsMember 2024-12-31 0001448893 us-gaap:RetainedEarningsMember 2023-12-31 0001448893 us-gaap:RetainedEarningsMember 2025-04-01 2025-06-30 0001448893 us-gaap:RetainedEarningsMember 2024-04-01 2024-06-30 0001448893 us-gaap:RetainedEarningsMember 2025-01-01 2025-06-30 0001448893 us-gaap:RetainedEarningsMember 2024-01-01 2024-06-30 0001448893 us-gaap:RetainedEarningsMember 2025-06-30 0001448893 us-gaap:RetainedEarningsMember 2024-06-30 0001448893 us-gaap:TreasuryStockCommonMember 2025-03-31 0001448893 us-gaap:TreasuryStockCommonMember 2024-03-31 0001448893 us-gaap:TreasuryStockCommonMember 2024-12-31 0001448893 us-gaap:TreasuryStockCommonMember 2023-12-31 0001448893 us-gaap:TreasuryStockCommonMember 2025-04-01 2025-06-30 0001448893 us-gaap:TreasuryStockCommonMember 2024-04-01 2024-06-30 0001448893 us-gaap:TreasuryStockCommonMember 2025-01-01 2025-06-30 0001448893 us-gaap:TreasuryStockCommonMember 2024-01-01 2024-06-30 0001448893 us-gaap:TreasuryStockCommonMember 2025-06-30 0001448893 us-gaap:TreasuryStockCommonMember 2024-06-30 0001448893 2024-06-30 0001448893 2023-12-31 0001448893 srt:MaximumMember 2025-01-01 2025-06-30 0001448893 srt:AffiliatedEntityMember esnt:EssentGuarantyIncMember 2025-06-30 0001448893 esnt:RadnorReMember January 1, 2025 to Present 2025-01-01 2025-06-30 0001448893 esnt:RadnorReMember January 1, 2021 to December 31, 2024 2025-01-01 2025-06-30 0001448893 esnt:RadnorReMember Prior to January 1, 2021 2025-01-01 2025-06-30 0001448893 esnt:EssentPAMember srt:AffiliatedEntityMember esnt:ExcessMortgageInsuranceCoverageMember 2019-03-31 2019-03-31 0001448893 us-gaap:USTreasurySecuritiesMember 2025-06-30 0001448893 us-gaap:MortgageBackedSecuritiesMember 2025-06-30 0001448893 us-gaap:MunicipalBondsMember 2025-06-30 0001448893 us-gaap:ForeignGovernmentDebtSecuritiesMember 2025-06-30 0001448893 us-gaap:CorporateDebtSecuritiesMember 2025-06-30 0001448893 esnt:ResidentialAndCommercialMortgageSecuritiesMember 2025-06-30 0001448893 us-gaap:AssetBackedSecuritiesMember 2025-06-30 0001448893 us-gaap:MoneyMarketFundsMember 2025-06-30 0001448893 us-gaap:USTreasurySecuritiesMember 2024-12-31 0001448893 us-gaap:MortgageBackedSecuritiesMember 2024-12-31 0001448893 us-gaap:MunicipalBondsMember 2024-12-31 0001448893 us-gaap:ForeignGovernmentDebtSecuritiesMember 2024-12-31 0001448893 us-gaap:CorporateDebtSecuritiesMember 2024-12-31 0001448893 esnt:ResidentialAndCommercialMortgageSecuritiesMember 2024-12-31 0001448893 us-gaap:AssetBackedSecuritiesMember 2024-12-31 0001448893 us-gaap:MoneyMarketFundsMember 2024-12-31 0001448893 esnt:SpecialRevenueMunicipalBondsMember us-gaap:MunicipalBondsMember 2025-06-30 0001448893 esnt:SpecialRevenueMunicipalBondsMember us-gaap:MunicipalBondsMember 2024-12-31 0001448893 esnt:GeneralObligationMunicipalBondsMember us-gaap:MunicipalBondsMember 2025-06-30 0001448893 esnt:GeneralObligationMunicipalBondsMember us-gaap:MunicipalBondsMember 2024-12-31 0001448893 esnt:FinancialSectorMember us-gaap:CorporateDebtSecuritiesMember 2025-06-30 0001448893 esnt:FinancialSectorMember us-gaap:CorporateDebtSecuritiesMember 2024-12-31 0001448893 esnt:ConsumerNoncyclicalSectorMember us-gaap:CorporateDebtSecuritiesMember 2025-06-30 0001448893 esnt:ConsumerNoncyclicalSectorMember us-gaap:CorporateDebtSecuritiesMember 2024-12-31 0001448893 esnt:UtilitiesSectorMember us-gaap:CorporateDebtSecuritiesMember 2025-06-30 0001448893 esnt:UtilitiesSectorMember us-gaap:CorporateDebtSecuritiesMember 2024-12-31 0001448893 esnt:IndustrialSectorMember us-gaap:CorporateDebtSecuritiesMember 2025-06-30 0001448893 esnt:IndustrialSectorMember us-gaap:CorporateDebtSecuritiesMember 2024-12-31 0001448893 esnt:TechnologyDebtSectorMember us-gaap:CorporateDebtSecuritiesMember 2025-06-30 0001448893 esnt:TechnologyDebtSectorMember us-gaap:CorporateDebtSecuritiesMember 2024-12-31 0001448893 esnt:ConsumerCyclicalSectorMember us-gaap:CorporateDebtSecuritiesMember 2025-06-30 0001448893 esnt:ConsumerCyclicalSectorMember us-gaap:CorporateDebtSecuritiesMember 2024-12-31 0001448893 esnt:CommunicationsSectorMember us-gaap:CorporateDebtSecuritiesMember 2025-06-30 0001448893 esnt:CommunicationsSectorMember us-gaap:CorporateDebtSecuritiesMember 2024-12-31 0001448893 us-gaap:EnergySectorMember us-gaap:CorporateDebtSecuritiesMember 2025-06-30 0001448893 us-gaap:EnergySectorMember us-gaap:CorporateDebtSecuritiesMember 2024-12-31 0001448893 esnt:BasicMaterialsSectorMember us-gaap:CorporateDebtSecuritiesMember 2025-06-30 0001448893 esnt:BasicMaterialsSectorMember us-gaap:CorporateDebtSecuritiesMember 2024-12-31 0001448893 us-gaap:InternalInvestmentGradeMember us-gaap:CreditConcentrationRiskMember esnt:SecuritiesMember 2025-01-01 2025-06-30 0001448893 esnt:LimitedPartnershipInvestmentMember 2025-06-30 0001448893 esnt:LimitedPartnershipInvestmentMember 2024-12-31 0001448893 esnt:LimitedPartnershipInvestmentMember 2025-01-01 2025-06-30 0001448893 esnt:LimitedPartnershipInvestmentMember srt:MinimumMember 2025-01-01 2025-06-30 0001448893 esnt:LimitedPartnershipInvestmentMember srt:MaximumMember 2025-01-01 2025-06-30 0001448893 esnt:EssentReinsuranceLtdMember 2025-06-30 0001448893 esnt:EssentReinsuranceLtdMember 2024-12-31 0001448893 esnt:EssentGuarantyIncMember 2025-06-30 0001448893 esnt:EssentGuarantyIncMember 2024-12-31 0001448893 us-gaap:FixedMaturitiesMember 2025-04-01 2025-06-30 0001448893 us-gaap:FixedMaturitiesMember 2024-04-01 2024-06-30 0001448893 us-gaap:FixedMaturitiesMember 2025-01-01 2025-06-30 0001448893 us-gaap:FixedMaturitiesMember 2024-01-01 2024-06-30 0001448893 us-gaap:ShortTermInvestmentsMember 2025-04-01 2025-06-30 0001448893 us-gaap:ShortTermInvestmentsMember 2024-04-01 2024-06-30 0001448893 us-gaap:ShortTermInvestmentsMember 2025-01-01 2025-06-30 0001448893 us-gaap:ShortTermInvestmentsMember 2024-01-01 2024-06-30 0001448893 esnt:QSR2022Member Quota Share Reinsurance 2025-01-01 2025-06-30 0001448893 esnt:QSR2023Member Quota Share Reinsurance 2025-01-01 2025-06-30 0001448893 esnt:QSR2024Member Quota Share Reinsurance 2025-01-01 2025-06-30 0001448893 esnt:QSR2025Member Quota Share Reinsurance 2025-01-01 2025-06-30 0001448893 esnt:QSR2019Member Quota Share Reinsurance 2025-01-01 2025-06-30 0001448893 esnt:QSRMember Quota Share Reinsurance 2025-06-30 0001448893 us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember esnt:RadnorReMember Mortgage Insurance 2025-01-01 2025-06-30 0001448893 esnt:MortgageInsuranceLinkedNotesMember esnt:RadnorReMember us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember Mortgage Insurance 2025-01-01 2025-06-30 0001448893 esnt:RadnorRe20211LtdMember Vintage Year Aug 2020 - Mar 2021 2025-06-30 0001448893 esnt:RadnorRe20211LtdMember Vintage Year Aug 2020 - Mar 2021 2025-01-01 2025-06-30 0001448893 esnt:RadnorRe20212LtdMember Vintage Year Apr 2021 - Sep 2021 2025-06-30 0001448893 esnt:RadnorRe20212LtdMember Vintage Year Apr 2021 - Sep 2021 2025-01-01 2025-06-30 0001448893 esnt:RadnorRe20221LtdMember Vintage Year Oct 2021 - Jul 2022 2025-06-30 0001448893 esnt:RadnorRe20221LtdMember Vintage Year Oct 2021 - Jul 2022 2025-01-01 2025-06-30 0001448893 esnt:RadnorRe20231LtdMember Vintage Year August 2022- June 2023 2025-06-30 0001448893 esnt:RadnorRe20231LtdMember Vintage Year August 2022- June 2023 2025-01-01 2025-06-30 0001448893 esnt:RadnorRe20241LtdMember Vintage Year July 2023- July 2024 2025-06-30 0001448893 esnt:RadnorRe20241LtdMember Vintage Year July 2023- July 2024 2025-01-01 2025-06-30 0001448893 esnt:RadnorReTotalMember 2025-06-30 0001448893 esnt:RadnorReTotalMember 2025-01-01 2025-06-30 0001448893 esnt:XOL20191Member Vintage Year Jan 2018 - Dec 2018 2025-06-30 0001448893 esnt:XOL20191Member Vintage Year Jan 2018 - Dec 2018 2025-01-01 2025-06-30 0001448893 esnt:XOL20201Member Vintage Year Jan 2019 - Aug 2019 2025-06-30 0001448893 esnt:XOL20201Member Vintage Year Jan 2019 - Aug 2019 2025-01-01 2025-06-30 0001448893 esnt:XOL20221Member Vintage Year Oct 2021 - Dec 2022 2025-06-30 0001448893 esnt:XOL20221Member Vintage Year Oct 2021 - Dec 2022 2025-01-01 2025-06-30 0001448893 esnt:XOL20231Member Vintage Year Jan 2023 - Dec 2023 2025-06-30 0001448893 esnt:XOL20231Member Vintage Year Jan 2023 - Dec 2023 2025-01-01 2025-06-30 0001448893 esnt:XOL20241Member Vintage Year Jan 2024 - Dec 2024 2025-06-30 0001448893 esnt:XOL20241Member Vintage Year Jan 2024 - Dec 2024 2025-01-01 2025-06-30 0001448893 esnt:OXLMember 2025-06-30 0001448893 esnt:OXLMember 2025-01-01 2025-06-30 0001448893 esnt:EssentGuarantyIncMember Calendar Years 2025 And 2026 2025-04-01 2025-04-30 0001448893 esnt:RadnorRe20211LtdMember us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember 2025-06-30 0001448893 esnt:RadnorRe20212LtdMember us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember 2025-06-30 0001448893 esnt:RadnorRe20221LtdMember us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember 2025-06-30 0001448893 esnt:RadnorRe20231LtdMember us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember 2025-06-30 0001448893 esnt:RadnorRe20241LtdMember us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember 2025-06-30 0001448893 us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember 2025-06-30 0001448893 us-gaap:HurricaneMember 2024-01-01 2024-12-31 0001448893 us-gaap:ReinsurerConcentrationRiskMember esnt:WildfireMember esnt:ReinsuranceRiskInForceAffectedMember 2025-01-01 2025-06-30 0001448893 esnt:ExistingCreditFacilityMember us-gaap:SecuredDebtMember us-gaap:LineOfCreditMember 2024-06-30 2024-06-30 0001448893 esnt:ExistingCreditFacilityMember us-gaap:SecuredDebtMember us-gaap:LineOfCreditMember 2024-06-30 0001448893 esnt:A6.250SeniorNotesDue2029Member us-gaap:SeniorNotesMember 2024-07-01 0001448893 esnt:A6.250SeniorNotesDue2029Member us-gaap:SeniorNotesMember 2024-07-01 2024-07-01 0001448893 us-gaap:RevolvingCreditFacilityMember us-gaap:LineOfCreditMember 2024-07-01 2024-07-01 0001448893 us-gaap:RevolvingCreditFacilityMember us-gaap:LineOfCreditMember 2024-07-01 0001448893 us-gaap:RevolvingCreditFacilityMember 2025-01-01 2025-06-30 0001448893 esnt:A6.250SeniorNotesDue2029Member us-gaap:SeniorNotesMember 2025-06-30 0001448893 esnt:A6.250SeniorNotesDue2029Member us-gaap:SeniorNotesMember 2024-12-31 0001448893 us-gaap:IndemnificationGuaranteeMember 2024-01-01 2024-06-30 0001448893 us-gaap:IndemnificationGuaranteeMember 2025-01-01 2025-06-30 0001448893 2025-01-01 2025-03-31 0001448893 2024-01-01 2024-03-31 0001448893 srt:ScenarioForecastMember 2025-07-01 2025-09-30 0001448893 2024-07-01 2024-09-30 0001448893 srt:ScenarioForecastMember 2025-10-01 2025-12-31 0001448893 2024-10-01 2024-12-31 0001448893 srt:ScenarioForecastMember 2025-01-01 2025-12-31 0001448893 2024-01-01 2024-12-31 0001448893 us-gaap:SubsequentEventMember srt:ScenarioForecastMember 2025-08-01 2025-08-31 0001448893 2023-10-31 0001448893 2025-02-28 0001448893 esnt:EssentGroupLimited2013LongTermIncentivePlanMember 2023-05-01 2023-05-31 0001448893 esnt:EssentGroupLimited2013LongTermIncentivePlanMember 2013-12-31 0001448893 esnt:EssentGroupLimited2013LongTermIncentivePlanMember 2025-06-30 0001448893 us-gaap:RestrictedStockMember esnt:VestingBasedOnServiceAndPerformanceMember 2024-12-31 0001448893 us-gaap:RestrictedStockMember esnt:VestingBasedOnServiceMember 2024-12-31 0001448893 us-gaap:PhantomShareUnitsPSUsMember 2024-12-31 0001448893 us-gaap:RestrictedStockUnitsRSUMember 2024-12-31 0001448893 esnt:DividendEquivalentUnitMember 2024-12-31 0001448893 us-gaap:RestrictedStockMember esnt:VestingBasedOnServiceAndPerformanceMember 2025-01-01 2025-06-30 0001448893 us-gaap:RestrictedStockMember esnt:VestingBasedOnServiceMember 2025-01-01 2025-06-30 0001448893 us-gaap:PhantomShareUnitsPSUsMember 2025-01-01 2025-06-30 0001448893 us-gaap:RestrictedStockUnitsRSUMember 2025-01-01 2025-06-30 0001448893 esnt:DividendEquivalentUnitMember 2025-01-01 2025-06-30 0001448893 us-gaap:RestrictedStockMember esnt:VestingBasedOnServiceAndPerformanceMember 2025-06-30 0001448893 us-gaap:RestrictedStockMember esnt:VestingBasedOnServiceMember 2025-06-30 0001448893 us-gaap:PhantomShareUnitsPSUsMember 2025-06-30 0001448893 us-gaap:RestrictedStockUnitsRSUMember 2025-06-30 0001448893 esnt:DividendEquivalentUnitMember 2025-06-30 0001448893 esnt:VestingBasedOnServiceMember esnt:EssentGroupLimited2013LongTermIncentivePlanMember us-gaap:RestrictedStockMember esnt:CertainSeniorManagementMember 2025-02-01 2025-02-28 0001448893 esnt:VestingBasedOnPerformanceMember esnt:EssentGroupLimited2013LongTermIncentivePlanMember us-gaap:RestrictedStockMember esnt:CertainSeniorManagementMember 2025-02-01 2025-02-28 0001448893 esnt:VestingBasedOnPerformanceMember esnt:CertainSeniorManagementMember srt:MaximumMember esnt:EssentGroupLimited2013LongTermIncentivePlanMember us-gaap:RestrictedStockMember 2025-02-01 2025-02-28 0001448893 esnt:CompoundedAnnualGrowthRateThreeYearBookValueAchieved11PercentMember us-gaap:RestrictedStockMember srt:ScenarioForecastMember 2025-01-01 2027-12-31 0001448893 esnt:CompoundedAnnualGrowthRateThreeYearBookValueAchieved11PercentMember us-gaap:RestrictedStockMember esnt:ShareBasedPaymentArrangementLessThanOrEqualTo25thPercentileMember srt:ScenarioForecastMember 2025-01-01 2027-12-31 0001448893 esnt:CompoundedAnnualGrowthRateThreeYearBookValueAchieved11PercentMember us-gaap:RestrictedStockMember esnt:ShareBasedPaymentArrangement50thPercentileMember srt:ScenarioForecastMember 2025-01-01 2027-12-31 0001448893 esnt:CompoundedAnnualGrowthRateThreeYearBookValueAchieved11PercentMember us-gaap:RestrictedStockMember esnt:ShareBasedPaymentArrangementGreaterThanOrEqualTo75thPercentileMember srt:ScenarioForecastMember 2025-01-01 2027-12-31 0001448893 esnt:CompoundedAnnualGrowthRateThreeYearBookValueAchieved10PercentMember us-gaap:RestrictedStockMember srt:ScenarioForecastMember 2025-01-01 2027-12-31 0001448893 esnt:CompoundedAnnualGrowthRateThreeYearBookValueAchieved10PercentMember us-gaap:RestrictedStockMember esnt:ShareBasedPaymentArrangementLessThanOrEqualTo25thPercentileMember srt:ScenarioForecastMember 2025-01-01 2027-12-31 0001448893 esnt:CompoundedAnnualGrowthRateThreeYearBookValueAchieved10PercentMember us-gaap:RestrictedStockMember esnt:ShareBasedPaymentArrangement50thPercentileMember srt:ScenarioForecastMember 2025-01-01 2027-12-31 0001448893 esnt:CompoundedAnnualGrowthRateThreeYearBookValueAchieved10PercentMember us-gaap:RestrictedStockMember esnt:ShareBasedPaymentArrangementGreaterThanOrEqualTo75thPercentileMember srt:ScenarioForecastMember 2025-01-01 2027-12-31 0001448893 esnt:CompoundedAnnualGrowthRateThreeYearBookValueAchieved9PercentMember us-gaap:RestrictedStockMember srt:ScenarioForecastMember 2025-01-01 2027-12-31 0001448893 esnt:CompoundedAnnualGrowthRateThreeYearBookValueAchieved9PercentMember us-gaap:RestrictedStockMember esnt:ShareBasedPaymentArrangementLessThanOrEqualTo25thPercentileMember srt:ScenarioForecastMember 2025-01-01 2027-12-31 0001448893 esnt:CompoundedAnnualGrowthRateThreeYearBookValueAchieved9PercentMember us-gaap:RestrictedStockMember esnt:ShareBasedPaymentArrangement50thPercentileMember srt:ScenarioForecastMember 2025-01-01 2027-12-31 0001448893 esnt:CompoundedAnnualGrowthRateThreeYearBookValueAchieved9PercentMember us-gaap:RestrictedStockMember esnt:ShareBasedPaymentArrangementGreaterThanOrEqualTo75thPercentileMember srt:ScenarioForecastMember 2025-01-01 2027-12-31 0001448893 esnt:CompoundedAnnualGrowthRateThreeYearBookValueAchieved7PercentMember us-gaap:RestrictedStockMember srt:ScenarioForecastMember 2025-01-01 2027-12-31 0001448893 esnt:CompoundedAnnualGrowthRateThreeYearBookValueAchieved7PercentMember us-gaap:RestrictedStockMember esnt:ShareBasedPaymentArrangementLessThanOrEqualTo25thPercentileMember srt:ScenarioForecastMember 2025-01-01 2027-12-31 0001448893 esnt:CompoundedAnnualGrowthRateThreeYearBookValueAchieved7PercentMember us-gaap:RestrictedStockMember esnt:ShareBasedPaymentArrangement50thPercentileMember srt:ScenarioForecastMember 2025-01-01 2027-12-31 0001448893 esnt:CompoundedAnnualGrowthRateThreeYearBookValueAchieved7PercentMember us-gaap:RestrictedStockMember esnt:ShareBasedPaymentArrangementGreaterThanOrEqualTo75thPercentileMember srt:ScenarioForecastMember 2025-01-01 2027-12-31 0001448893 esnt:CompoundedAnnualGrowthRateThreeYearBookValueAchieved6PercentMember us-gaap:RestrictedStockMember srt:ScenarioForecastMember 2025-01-01 2027-12-31 0001448893 esnt:CompoundedAnnualGrowthRateThreeYearBookValueAchieved6PercentMember us-gaap:RestrictedStockMember esnt:ShareBasedPaymentArrangementLessThanOrEqualTo25thPercentileMember srt:ScenarioForecastMember 2025-01-01 2027-12-31 0001448893 esnt:CompoundedAnnualGrowthRateThreeYearBookValueAchieved6PercentMember us-gaap:RestrictedStockMember esnt:ShareBasedPaymentArrangement50thPercentileMember srt:ScenarioForecastMember 2025-01-01 2027-12-31 0001448893 esnt:CompoundedAnnualGrowthRateThreeYearBookValueAchieved6PercentMember us-gaap:RestrictedStockMember esnt:ShareBasedPaymentArrangementGreaterThanOrEqualTo75thPercentileMember srt:ScenarioForecastMember 2025-01-01 2027-12-31 0001448893 esnt:VestingBasedOnServiceMember esnt:IncentiveProgramBonusAwardFiscalYearPerformanceMember us-gaap:RestrictedStockUnitsRSUMember esnt:EmployeeMember 2025-02-01 2025-02-28 0001448893 esnt:NonvestedSharesShareUnitsOrDEUMember 2025-01-01 2025-06-30 0001448893 esnt:NonvestedSharesShareUnitsOrDEUMember 2024-01-01 2024-06-30 0001448893 esnt:NonvestedSharesShareUnitsMember 2025-06-30 0001448893 esnt:NonvestedSharesShareUnitsMember 2025-01-01 2025-06-30 0001448893 esnt:VestingBasedOnServiceMember esnt:CertainSeniorManagementMember esnt:EssentGroupLimited2013LongTermIncentivePlanMember us-gaap:RestrictedStockMember us-gaap:ShareBasedCompensationAwardTrancheOneMember 2025-02-01 2025-02-28 0001448893 esnt:VestingBasedOnServiceMember esnt:CertainSeniorManagementMember esnt:EssentGroupLimited2013LongTermIncentivePlanMember us-gaap:RestrictedStockMember us-gaap:ShareBasedCompensationAwardTrancheTwoMember 2025-02-01 2025-02-28 0001448893 esnt:VestingBasedOnServiceMember esnt:CertainSeniorManagementMember esnt:EssentGroupLimited2013LongTermIncentivePlanMember us-gaap:RestrictedStockMember us-gaap:ShareBasedCompensationAwardTrancheThreeMember 2025-02-01 2025-02-28 0001448893 esnt:VestingBasedOnServiceMember esnt:IncentiveProgramBonusAwardFiscalYearPerformanceMember esnt:EmployeeMember us-gaap:RestrictedStockUnitsRSUMember us-gaap:ShareBasedCompensationAwardTrancheOneMember 2025-02-01 2025-02-28 0001448893 esnt:VestingBasedOnServiceMember esnt:IncentiveProgramBonusAwardFiscalYearPerformanceMember esnt:EmployeeMember us-gaap:RestrictedStockUnitsRSUMember us-gaap:ShareBasedCompensationAwardTrancheTwoMember 2025-02-01 2025-02-28 0001448893 esnt:VestingBasedOnServiceMember esnt:IncentiveProgramBonusAwardFiscalYearPerformanceMember esnt:EmployeeMember us-gaap:RestrictedStockUnitsRSUMember us-gaap:ShareBasedCompensationAwardTrancheThreeMember 2025-02-01 2025-02-28 0001448893 us-gaap:RelatedPartyMember esnt:EssentGuarantyIncMember 2025-06-30 0001448893 srt:AffiliatedEntityMember esnt:EssentGuarantyIncMember 2025-04-01 2025-06-30 0001448893 srt:AffiliatedEntityMember esnt:EssentGuarantyIncMember 2025-01-01 2025-06-30 0001448893 srt:AffiliatedEntityMember esnt:EssentGuarantyIncMember 2024-04-01 2024-06-30 0001448893 srt:AffiliatedEntityMember esnt:EssentGuarantyIncMember 2024-01-01 2024-06-30 0001448893 esnt:EssentReinsuranceLtdMember srt:AffiliatedEntityMember srt:MinimumMember esnt:QuotaShareReinsuranceTransactionMember 2025-06-30 0001448893 srt:AffiliatedEntityMember esnt:EssentReinsuranceLtdMember 2025-06-30 0001448893 srt:AffiliatedEntityMember esnt:EssentReinsuranceLtdMember 2025-04-01 2025-06-30 0001448893 srt:AffiliatedEntityMember esnt:EssentReinsuranceLtdMember 2025-01-01 2025-06-30 0001448893 srt:AffiliatedEntityMember esnt:EssentReinsuranceLtdMember 2024-04-01 2024-06-30 0001448893 srt:AffiliatedEntityMember esnt:EssentReinsuranceLtdMember 2024-01-01 2024-06-30 0001448893 us-gaap:PerformanceSharesMember 2023-01-01 2023-12-31 0001448893 us-gaap:PerformanceSharesMember srt:ScenarioForecastMember 2025-01-01 2025-12-31 0001448893 us-gaap:PerformanceSharesMember 2024-01-01 2024-12-31 0001448893 esnt:TwoThousandTwentyFivePerformanceBasedGrantsMember 2025-01-01 2025-06-30 0001448893 esnt:TwoThousandTwentyFivePerformanceBasedGrantsMember 2025-06-30 0001448893 esnt:TwoThousandTwentyFourPerformanceBasedGrantsMember 2025-01-01 2025-06-30 0001448893 esnt:TwoThousandTwentyFourPerformanceBasedGrantsMember 2025-06-30 0001448893 esnt:TwoThousandTwentyThreePerformanceBasedGrantsMember 2025-01-01 2025-06-30 0001448893 esnt:TwoThousandTwentyThreePerformanceBasedGrantsMember 2025-06-30 0001448893 esnt:TwoThousandTwentyFourPerformanceBasedGrantsMember 2024-01-01 2024-06-30 0001448893 esnt:TwoThousandTwentyFourPerformanceBasedGrantsMember 2024-06-30 0001448893 esnt:TwoThousandTwentyThreePerformanceBasedGrantsMember 2024-01-01 2024-06-30 0001448893 esnt:TwoThousandTwentyThreePerformanceBasedGrantsMember 2024-06-30 0001448893 esnt:TwoThousandTwentyTwoPerformanceBasedGrantsMember 2024-01-01 2024-06-30 0001448893 esnt:TwoThousandTwentyTwoPerformanceBasedGrantsMember 2024-06-30 0001448893 esnt:TwoThousandTwentyTwoPerformanceBasedGrantsMember 2025-01-01 2025-06-30 0001448893 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2025-04-01 2025-06-30 0001448893 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2024-04-01 2024-06-30 0001448893 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2025-01-01 2025-06-30 0001448893 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2024-01-01 2024-06-30 0001448893 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USTreasurySecuritiesMember 2025-06-30 0001448893 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USTreasurySecuritiesMember 2025-06-30 0001448893 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USTreasurySecuritiesMember 2025-06-30 0001448893 us-gaap:FairValueMeasurementsRecurringMember us-gaap:USTreasurySecuritiesMember 2025-06-30 0001448893 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:MortgageBackedSecuritiesMember 2025-06-30 0001448893 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:MortgageBackedSecuritiesMember 2025-06-30 0001448893 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:MortgageBackedSecuritiesMember 2025-06-30 0001448893 us-gaap:FairValueMeasurementsRecurringMember us-gaap:MortgageBackedSecuritiesMember 2025-06-30 0001448893 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:MunicipalBondsMember 2025-06-30 0001448893 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:MunicipalBondsMember 2025-06-30 0001448893 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:MunicipalBondsMember 2025-06-30 0001448893 us-gaap:FairValueMeasurementsRecurringMember us-gaap:MunicipalBondsMember 2025-06-30 0001448893 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:ForeignGovernmentDebtSecuritiesMember 2025-06-30 0001448893 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:ForeignGovernmentDebtSecuritiesMember 2025-06-30 0001448893 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:ForeignGovernmentDebtSecuritiesMember 2025-06-30 0001448893 us-gaap:FairValueMeasurementsRecurringMember us-gaap:ForeignGovernmentDebtSecuritiesMember 2025-06-30 0001448893 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember 2025-06-30 0001448893 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember 2025-06-30 0001448893 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember 2025-06-30 0001448893 us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember 2025-06-30 0001448893 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember esnt:ResidentialAndCommercialMortgageSecuritiesMember 2025-06-30 0001448893 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember esnt:ResidentialAndCommercialMortgageSecuritiesMember 2025-06-30 0001448893 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember esnt:ResidentialAndCommercialMortgageSecuritiesMember 2025-06-30 0001448893 us-gaap:FairValueMeasurementsRecurringMember esnt:ResidentialAndCommercialMortgageSecuritiesMember 2025-06-30 0001448893 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:AssetBackedSecuritiesMember 2025-06-30 0001448893 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:AssetBackedSecuritiesMember 2025-06-30 0001448893 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:AssetBackedSecuritiesMember 2025-06-30 0001448893 us-gaap:FairValueMeasurementsRecurringMember us-gaap:AssetBackedSecuritiesMember 2025-06-30 0001448893 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:MoneyMarketFundsMember 2025-06-30 0001448893 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:MoneyMarketFundsMember 2025-06-30 0001448893 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:MoneyMarketFundsMember 2025-06-30 0001448893 us-gaap:FairValueMeasurementsRecurringMember us-gaap:MoneyMarketFundsMember 2025-06-30 0001448893 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2025-06-30 0001448893 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2025-06-30 0001448893 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2025-06-30 0001448893 us-gaap:FairValueMeasurementsRecurringMember 2025-06-30 0001448893 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USTreasurySecuritiesMember 2024-12-31 0001448893 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USTreasurySecuritiesMember 2024-12-31 0001448893 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USTreasurySecuritiesMember 2024-12-31 0001448893 us-gaap:FairValueMeasurementsRecurringMember us-gaap:USTreasurySecuritiesMember 2024-12-31 0001448893 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:MortgageBackedSecuritiesMember 2024-12-31 0001448893 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:MortgageBackedSecuritiesMember 2024-12-31 0001448893 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:MortgageBackedSecuritiesMember 2024-12-31 0001448893 us-gaap:FairValueMeasurementsRecurringMember us-gaap:MortgageBackedSecuritiesMember 2024-12-31 0001448893 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:MunicipalBondsMember 2024-12-31 0001448893 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:MunicipalBondsMember 2024-12-31 0001448893 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:MunicipalBondsMember 2024-12-31 0001448893 us-gaap:FairValueMeasurementsRecurringMember us-gaap:MunicipalBondsMember 2024-12-31 0001448893 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:ForeignGovernmentDebtSecuritiesMember 2024-12-31 0001448893 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:ForeignGovernmentDebtSecuritiesMember 2024-12-31 0001448893 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:ForeignGovernmentDebtSecuritiesMember 2024-12-31 0001448893 us-gaap:FairValueMeasurementsRecurringMember us-gaap:ForeignGovernmentDebtSecuritiesMember 2024-12-31 0001448893 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember 2024-12-31 0001448893 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember 2024-12-31 0001448893 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember 2024-12-31 0001448893 us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember 2024-12-31 0001448893 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember esnt:ResidentialAndCommercialMortgageSecuritiesMember 2024-12-31 0001448893 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember esnt:ResidentialAndCommercialMortgageSecuritiesMember 2024-12-31 0001448893 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember esnt:ResidentialAndCommercialMortgageSecuritiesMember 2024-12-31 0001448893 us-gaap:FairValueMeasurementsRecurringMember esnt:ResidentialAndCommercialMortgageSecuritiesMember 2024-12-31 0001448893 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:AssetBackedSecuritiesMember 2024-12-31 0001448893 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:AssetBackedSecuritiesMember 2024-12-31 0001448893 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:AssetBackedSecuritiesMember 2024-12-31 0001448893 us-gaap:FairValueMeasurementsRecurringMember us-gaap:AssetBackedSecuritiesMember 2024-12-31 0001448893 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:MoneyMarketFundsMember 2024-12-31 0001448893 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:MoneyMarketFundsMember 2024-12-31 0001448893 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:MoneyMarketFundsMember 2024-12-31 0001448893 us-gaap:FairValueMeasurementsRecurringMember us-gaap:MoneyMarketFundsMember 2024-12-31 0001448893 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2024-12-31 0001448893 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2024-12-31 0001448893 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2024-12-31 0001448893 us-gaap:FairValueMeasurementsRecurringMember 2024-12-31 0001448893 srt:AffiliatedEntityMember esnt:EssentGuarantyIncMember 2024-12-31 0001448893 srt:AffiliatedEntityMember esnt:EssentReinsuranceLtdMember 2024-12-31 0001448893 us-gaap:OperatingSegmentsMember us-gaap:CorporateMember 2024-12-31 0001448893 us-gaap:OperatingSegmentsMember us-gaap:CorporateMember 2025-06-30 0001448893 us-gaap:OperatingSegmentsMember esnt:MortgageInsuranceSegmentMember 2025-04-01 2025-06-30 0001448893 us-gaap:OperatingSegmentsMember us-gaap:CorporateMember 2025-04-01 2025-06-30 0001448893 us-gaap:OperatingSegmentsMember esnt:MortgageInsuranceSegmentMember 2024-04-01 2024-06-30 0001448893 us-gaap:OperatingSegmentsMember us-gaap:CorporateMember 2024-04-01 2024-06-30 0001448893 us-gaap:IntersegmentEliminationMember esnt:MortgageInsuranceSegmentMember 2025-04-01 2025-06-30 0001448893 us-gaap:IntersegmentEliminationMember us-gaap:CorporateMember 2025-04-01 2025-06-30 0001448893 us-gaap:IntersegmentEliminationMember esnt:MortgageInsuranceSegmentMember 2024-04-01 2024-06-30 0001448893 us-gaap:IntersegmentEliminationMember us-gaap:CorporateMember 2024-04-01 2024-06-30 0001448893 esnt:MortgageInsuranceSegmentMember 2025-04-01 2025-06-30 0001448893 us-gaap:CorporateMember 2025-04-01 2025-06-30 0001448893 esnt:MortgageInsuranceSegmentMember 2024-04-01 2024-06-30 0001448893 us-gaap:CorporateMember 2024-04-01 2024-06-30 0001448893 us-gaap:OperatingSegmentsMember esnt:MortgageInsuranceSegmentMember 2025-01-01 2025-06-30 0001448893 us-gaap:OperatingSegmentsMember us-gaap:CorporateMember 2025-01-01 2025-06-30 0001448893 us-gaap:OperatingSegmentsMember esnt:MortgageInsuranceSegmentMember 2024-01-01 2024-06-30 0001448893 us-gaap:OperatingSegmentsMember us-gaap:CorporateMember 2024-01-01 2024-06-30 0001448893 us-gaap:IntersegmentEliminationMember esnt:MortgageInsuranceSegmentMember 2025-01-01 2025-06-30 0001448893 us-gaap:IntersegmentEliminationMember us-gaap:CorporateMember 2025-01-01 2025-06-30 0001448893 us-gaap:IntersegmentEliminationMember esnt:MortgageInsuranceSegmentMember 2024-01-01 2024-06-30 0001448893 us-gaap:IntersegmentEliminationMember us-gaap:CorporateMember 2024-01-01 2024-06-30 0001448893 esnt:MortgageInsuranceSegmentMember 2025-01-01 2025-06-30 0001448893 us-gaap:CorporateMember 2025-01-01 2025-06-30 0001448893 esnt:MortgageInsuranceSegmentMember 2024-01-01 2024-06-30 0001448893 us-gaap:CorporateMember 2024-01-01 2024-06-30
Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

(Mark One)
☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the period ended June 30, 2025
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission file number 001-36157

ESSENT GROUP LTD.
(Exact name of registrant as specified in its charter)

Bermuda |  | Not Applicable
(State or other jurisdiction of incorporation or organization) |  | (I.R.S. Employer Identification Number)

Clarendon House
2 Church Street
Hamilton HM11, Bermuda
(Address of principal executive offices and zip code)
(441) 297-9901
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:

Title of each class | Trading Symbol(s) | Name of each exchange on which registered
Common Shares, $0.015 par value | ESNT | New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232-405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files.) Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer | ☒ |  | Accelerated filer | ☐
Non-accelerated filer | ☐ |  | Smaller reporting company | ☐
|  |  | Emerging growth company | ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
The number of the registrant’s common shares outstanding as of July 31, 2025 was 98,533,757.

Table of Contents
Essent Group Ltd. and Subsidiaries
Form 10-Q
Index

PART I. | FINANCIAL INFORMATION | 1
Item 1. | Financial Statements (Unaudited) | 1
| Condensed Consolidated Balance Sheets (Unaudited) | 1
| Condensed Consolidated Statements of Comprehensive Income (Unaudited) | 2
| Condensed Consolidated Statements of Changes in Stockholders’ Equity (Unaudited) | 3
| Condensed Consolidated Statements of Cash Flows (Unaudited) | 4
| Notes to Condensed Consolidated Financial Statements (Unaudited) | 5
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 28
Item 3. | Quantitative and Qualitative Disclosures About Market Risk | 51
Item 4. | Controls and Procedures | 51
PART II. | OTHER INFORMATION | 52
Item 1. | Legal Proceedings | 52
Item 1A. | Risk Factors | 52
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 52
Item 6. | Exhibits | 52
SIGNATURES | 53

i

Table of Contents
Unless the context otherwise indicates or requires, the terms “we,” “our,” “us,” “Essent,” and the “Company,” as used in this Quarterly Report on Form 10-Q, refer to Essent Group Ltd. and its directly and indirectly owned subsidiaries, including our primary operating subsidiaries, Essent Guaranty, Inc. and Essent Reinsurance Ltd., as a combined entity, except where otherwise stated or where it is clear that the terms mean only Essent Group Ltd. exclusive of its subsidiaries.
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q, or Quarterly Report, includes forward-looking statements pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts or present facts or conditions, such as statements regarding our future financial condition or results of operations, our prospects and strategies for future growth, the introduction of new products and services, and the implementation of our marketing and branding strategies. In many cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential” or the negative of these terms or other comparable terminology.
The forward-looking statements contained in this Quarterly Report reflect our views as of the date of this Quarterly Report about future events and are subject to risks, uncertainties, assumptions and changes in circumstances that may cause events or our actual activities or results to differ significantly from those expressed in any forward-looking statement. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future events, results, actions, levels of activity, performance or achievements. A number of important factors could cause actual results to differ materially from those indicated by the forward-looking statements, including, but not limited to, those factors described below, in Part I, Item 2 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of this Quarterly Report, and in Part I, Item 1A “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2024 filed with the Securities and Exchange Commission. These factors include, without limitation, the following:
•changes in or to Fannie Mae and Freddie Mac, which we refer to collectively as the GSEs, whether through Federal legislation, restructurings or a shift in business practices;
•failure to continue to meet the mortgage insurer eligibility requirements of the GSEs;
•competition for our customers or the loss of a significant customer;
•lenders or investors seeking alternatives to private mortgage insurance;
•increase in the number of loans insured through Federal government mortgage insurance programs, including those offered by the Federal Housing Administration;
•decline in the volume of low down payment mortgage originations;
•uncertainty of loss reserve estimates;
•decrease in the length of time our insurance policies are in force;
•deteriorating economic conditions;
•recently enacted U.S. Federal tax reform and its impact on us, our shareholders and our operations;
•the definition of “Qualified Mortgage” reducing the size of the mortgage origination market or creating incentives to use government mortgage insurance programs;
•the definition of “Qualified Residential Mortgage” reducing the number of low down payment loans or lenders and investors seeking alternatives to private mortgage insurance;
•the implementation of the Basel III Capital Accord, which may discourage the use of private mortgage insurance;
•management of risk in our investment portfolio;
•fluctuations in interest rates;
ii

Table of Contents
•inadequacy of the premiums we charge to compensate for our losses incurred;
•dependence on management team and qualified personnel;
•disturbance to our information technology systems;
•change in our customers’ capital requirements discouraging the use of mortgage insurance;
•declines in the value of borrowers’ homes;
•limited availability of capital or reinsurance;
•unanticipated claims arise under and risks associated with our contract underwriting program;
•industry practice that loss reserves are established only upon a loan default;
•disruption in mortgage loan servicing;
•risk of future legal proceedings;
•customers’ technological demands;
•our non-U.S. operations becoming subject to U.S. Federal income taxation;
•becoming considered a passive foreign investment company for U.S. Federal income tax purposes; and
•potential restrictions on the ability of our insurance subsidiaries to pay dividends.
Readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on these forward-looking statements. All of the forward-looking statements we have included in this Quarterly Report are based on information available to us on the date of this Quarterly Report. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as otherwise required by law.
We intend to use our website as a means of disclosing material non-public information and for complying with our disclosure obligations under Regulation FD. Such disclosures will be included on our website in the "Events & Presentations" section. Accordingly, investors should monitor such portion of our website, in addition to following our press releases, SEC filings and public conference calls and webcasts.
iii

Table of Contents
PART I — FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
Essent Group Ltd. and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)

|  | June 30, |  | December 31,
(In thousands, except per share amounts) |  | 2025 |  | 2024
Assets |  |  |  |
Investments |  |  |  |
Fixed maturities available for sale, at fair value (amortized cost: 2025 — $5,636,118; 2024 — $5,467,238) |  | $ | 5,383,504 |  |  | $ | 5,112,697 |
Short-term investments available for sale, at fair value (amortized cost: 2025 — $583,033; 2024 — $763,780) |  | 583,033 |  |  | 764,024 |
Total investments available for sale |  | 5,966,537 |  |  | 5,876,721 |
Other invested assets |  | 359,823 |  |  | 303,900 |
Total investments |  | 6,326,360 |  |  | 6,180,621 |
Cash |  | 92,116 |  |  | 131,480 |
Accrued investment income |  | 45,940 |  |  | 43,732 |
Accounts receivable |  | 52,340 |  |  | 55,564 |
Deferred policy acquisition costs |  | 9,237 |  |  | 9,653 |
Property and equipment (at cost, less accumulated depreciation of $74,283 in 2025 and $72,270 in 2024) |  | 42,434 |  |  | 41,871 |
Prepaid federal income tax |  | 497,356 |  |  | 489,600 |
Goodwill and acquired intangible assets, net |  | 78,855 |  |  | 79,556 |
Other assets |  | 75,923 |  |  | 79,572 |
Total assets |  | $ | 7,220,561 |  |  | $ | 7,111,649 |
Liabilities and Stockholders’ Equity |  |  |  |
Liabilities |  |  |  |
Reserve for losses and LAE |  | $ | 364,749 |  |  | $ | 328,866 |
Unearned premium reserve |  | 102,382 |  |  | 115,983 |
Net deferred tax liability |  | 427,202 |  |  | 392,428 |
Senior Notes due 2029, net |  | 494,630 |  |  | 493,959 |
Other liabilities |  | 158,750 |  |  | 176,755 |
Total liabilities |  | 1,547,713 |  |  | 1,507,991 |
Commitments and contingencies (see Note 7) |  |  |  |
Stockholders’ Equity |  |  |  |
Common shares, $0.015 par value: |  |  |  |
Authorized - 233,333; issued and outstanding - 99,556 shares in 2025 and 105,015 shares in 2024 |  | 1,493 |  |  | 1,575 |
Additional paid-in capital |  | 888,337 |  |  | 1,214,956 |
Accumulated other comprehensive loss |  | (215,666) |  |  | (303,984) |
Retained earnings |  | 4,998,684 |  |  | 4,691,111 |
Total stockholders’ equity |  | 5,672,848 |  |  | 5,603,658 |
Total liabilities and stockholders’ equity |  | $ | 7,220,561 |  |  | $ | 7,111,649 |

See accompanying notes to condensed consolidated financial statements.
1

Table of Contents
Essent Group Ltd. and Subsidiaries
Condensed Consolidated Statements of Comprehensive Income (Unaudited)

|  | Three Months Ended June 30, |  | Six Months Ended June 30,
(In thousands, except per share amounts) |  | 2025 |  | 2024 |  | 2025 |  | 2024
Revenues: |  |  |  |  |  |  |  |
Net premiums written |  | $ | 241,488 |  |  | $ | 245,566 |  |  | $ | 479,759 |  |  | $ | 484,106 |
Decrease in unearned premiums |  | 7,321 |  |  | 6,325 |  |  | 14,898 |  |  | 13,375 |
Net premiums earned |  | 248,809 |  |  | 251,891 |  |  | 494,657 |  |  | 497,481 |
Net investment income |  | 59,289 |  |  | 56,086 |  |  | 117,499 |  |  | 108,171 |
Realized investment losses, net |  | (129) |  |  | (1,164) |  |  | (310) |  |  | (2,304) |
Income (loss) from other invested assets |  | 4,466 |  |  | (419) |  |  | 11,874 |  |  | (2,334) |
Other income |  | 6,708 |  |  | 6,548 |  |  | 12,981 |  |  | 10,285 |
Total revenues |  | 319,143 |  |  | 312,942 |  |  | 636,701 |  |  | 611,299 |
Losses and expenses: |  |  |  |  |  |  |  |
Provision (benefit) for losses and LAE |  | 17,055 |  |  | (334) |  |  | 48,342 |  |  | 9,579 |
Other underwriting and operating expenses |  | 62,765 |  |  | 66,202 |  |  | 133,889 |  |  | 133,042 |
Interest expense |  | 8,148 |  |  | 7,849 |  |  | 16,296 |  |  | 15,711 |
Total losses and expenses |  | 87,968 |  |  | 73,717 |  |  | 198,527 |  |  | 158,332 |
Income before income taxes |  | 231,175 |  |  | 239,225 |  |  | 438,174 |  |  | 452,967 |
Income tax expense |  | 35,836 |  |  | 35,616 |  |  | 67,402 |  |  | 67,639 |
Net income |  | $ | 195,339 |  |  | $ | 203,609 |  |  | $ | 370,772 |  |  | $ | 385,328 |
Earnings per share: |  |  |  |  |  |  |  |
Basic |  | $ | 1.95 |  |  | $ | 1.93 |  |  | $ | 3.65 |  |  | $ | 3.65 |
Diluted |  | 1.93 |  |  | 1.91 |  |  | 3.62 |  |  | 3.61 |
Weighted average shares outstanding: |  |  |  |  |  |  |  |
Basic |  | 100,037 |  |  | 105,657 |  |  | 101,451 |  |  | 105,677 |
Diluted |  | 101,059 |  |  | 106,778 |  |  | 102,495 |  |  | 106,774 |
Net income |  | $ | 195,339 |  |  | $ | 203,609 |  |  | $ | 370,772 |  |  | $ | 385,328 |
Other comprehensive income (loss): |  |  |  |  |  |  |  |
Change in unrealized appreciation (depreciation) of investments, net of tax expense (benefit) of $2,070 and ($1,592) in the three months ended June 30, 2025 and 2024, and $13,365 and ($4,714) in the six months ended June 30, 2025 and 2024, respectively. |  | 16,580 |  |  | (5,375) |  |  | 88,318 |  |  | (27,141) |
Total other comprehensive income (loss) |  | 16,580 |  |  | (5,375) |  |  | 88,318 |  |  | (27,141) |
Comprehensive income |  | $ | 211,919 |  |  | $ | 198,234 |  |  | $ | 459,090 |  |  | $ | 358,187 |

See accompanying notes to condensed consolidated financial statements.
2

Table of Contents
Essent Group Ltd. and Subsidiaries
Condensed Consolidated Statements of Changes in Stockholders’ Equity (Unaudited)

|  | Three Months Ended June 30, |  | Six Months Ended June 30,
(In thousands) |  | 2025 |  | 2024 |  | 2025 |  | 2024
Common Shares |  |  |  |  |  |  |  |
Balance, beginning of period |  | $ | 1,537 |  |  | $ | 1,601 |  |  | $ | 1,575 |  |  | $ | 1,599 |
Issuance of management incentive shares |  | — |  |  | 1 |  |  | 8 |  |  | 8 |
Forfeiture of management incentive shares |  | — |  |  | — |  |  | (1) |  |  | (1) |
Cancellation of treasury stock |  | (44) |  |  | (6) |  |  | (89) |  |  | (10) |
Balance, end of period |  | 1,493 |  |  | 1,596 |  |  | 1,493 |  |  | 1,596 |
Additional Paid-In Capital |  |  |  |  |  |  |  |
Balance, beginning of period |  | 1,055,340 |  |  | 1,293,424 |  |  | 1,214,956 |  |  | 1,299,869 |
Dividends and dividend equivalents declared |  | 464 |  |  | 514 |  |  | 669 |  |  | 803 |
Issuance of management incentive shares |  | — |  |  | (1) |  |  | (8) |  |  | (8) |
Forfeiture of management incentive shares |  | — |  |  | — |  |  | 1 |  |  | 1 |
Stock-based compensation expense |  | 3,950 |  |  | 6,972 |  |  | 12,942 |  |  | 13,792 |
Cancellation of treasury stock |  | (171,417) |  |  | (21,991) |  |  | (340,223) |  |  | (35,539) |
Balance, end of period |  | 888,337 |  |  | 1,278,918 |  |  | 888,337 |  |  | 1,278,918 |
Accumulated Other Comprehensive Loss |  |  |  |  |  |  |  |
Balance, beginning of period |  | (232,246) |  |  | (302,262) |  |  | (303,984) |  |  | (280,496) |
Other comprehensive income (loss) |  | 16,580 |  |  | (5,375) |  |  | 88,318 |  |  | (27,141) |
Balance, end of period |  | (215,666) |  |  | (307,637) |  |  | (215,666) |  |  | (307,637) |
Retained Earnings |  |  |  |  |  |  |  |
Balance, beginning of period |  | 4,834,675 |  |  | 4,233,391 |  |  | 4,691,111 |  |  | 4,081,578 |
Net income |  | 195,339 |  |  | 203,609 |  |  | 370,772 |  |  | 385,328 |
Dividends and dividend equivalents declared |  | (31,330) |  |  | (30,087) |  |  | (63,199) |  |  | (59,993) |
Balance, end of period |  | 4,998,684 |  |  | 4,406,913 |  |  | 4,998,684 |  |  | 4,406,913 |
Treasury Stock |  |  |  |  |  |  |  |
Balance, beginning of period |  | — |  |  | — |  |  | — |  |  | — |
Treasury stock acquired |  | (171,461) |  |  | (21,997) |  |  | (340,312) |  |  | (35,549) |
Cancellation of treasury stock |  | 171,461 |  |  | 21,997 |  |  | 340,312 |  |  | 35,549 |
Balance, end of period |  | — |  |  | — |  |  | — |  |  | — |
Total Stockholders' Equity |  | $ | 5,672,848 |  |  | $ | 5,379,790 |  |  | $ | 5,672,848 |  |  | $ | 5,379,790 |

See accompanying notes to condensed consolidated financial statements.
3

Table of Contents
Essent Group Ltd. and Subsidiaries
Condensed Consolidated Statements of Cash Flows (Unaudited)

|  | Six Months Ended June 30,
(In thousands) |  | 2025 |  | 2024
Operating Activities |  |  |  |
Net income |  | $ | 370,772 |  |  | $ | 385,328 |
Adjustments to reconcile net income to net cash provided by operating activities: |  |  |  |
Realized investment losses, net |  | 310 |  |  | 2,304 |
(Income) loss from other invested assets |  | (11,874) |  |  | 2,334 |
Distribution of income from other invested assets |  | 3,327 |  |  | 3,124 |
Depreciation and amortization |  | 2,714 |  |  | 2,859 |
Stock-based compensation expense |  | 12,942 |  |  | 13,792 |
Amortization of premium on investment securities |  | 7,007 |  |  | 9,675 |
Deferred income tax provision |  | 21,409 |  |  | 20,623 |
Change in: |  |  |  |
Accrued investment income |  | (2,208) |  |  | 155 |
Accounts receivable |  | 3,786 |  |  | 9,992 |
Deferred policy acquisition costs |  | 416 |  |  | (60) |
Prepaid federal income tax |  | (7,756) |  |  | (16,810) |
Other assets |  | (2,147) |  |  | 1,513 |
Reserve for losses and LAE |  | 35,883 |  |  | 593 |
Unearned premium reserve |  | (13,601) |  |  | (13,347) |
Other accrued liabilities |  | (9,876) |  |  | (16,449) |
Net cash provided by operating activities |  | 411,104 |  |  | 405,626 |
Investing Activities |  |  |  |
Net change in short-term investments |  | 180,990 |  |  | (594,781) |
Purchase of investments available for sale |  | (602,313) |  |  | (63,548) |
Proceeds from maturity and paydowns of investments available for sale |  | 414,860 |  |  | 245,491 |
Proceeds from sales of investments available for sale |  | 6,226 |  |  | 174,121 |
Purchase of other invested assets |  | (48,617) |  |  | (12,816) |
Return of investment from other invested assets |  | 1,241 |  |  | 1,803 |
Purchase of property and equipment |  | (963) |  |  | (5,542) |
Net cash used in investing activities |  | (48,576) |  |  | (255,272) |
Financing Activities |  |  |  |
Treasury stock acquired |  | (339,362) |  |  | (35,549) |
Dividends paid |  | (62,530) |  |  | (59,190) |
Net cash used in financing activities |  | (401,892) |  |  | (94,739) |
Net (decrease) increase in cash |  | (39,364) |  |  | 55,615 |
Cash at beginning of year |  | 131,480 |  |  | 141,787 |
Cash at end of period |  | $ | 92,116 |  |  | $ | 197,402 |
Supplemental Disclosure of Cash Flow Information |  |  |  |
Income tax payments |  | $ | (53,737) |  |  | $ | (51,526) |
Interest payments |  | (15,625) |  |  | (15,444) |
Noncash Transactions |  |  |  |
Excise taxes payable for share repurchases |  | $ | 950 |  |  | $ | — |
Lease liabilities arising from obtaining right-of-use assets |  | 4,294 |  |  | — |

See accompanying notes to condensed consolidated financial statements.
4

Table of Contents
Essent Group Ltd. and Subsidiaries
Notes to Condensed Consolidated Financial Statements (Unaudited)
In these notes to condensed consolidated financial statements, “Essent”, “Company”, “we”, “us”, and “our” refer to Essent Group Ltd. and its subsidiaries, unless the context otherwise requires.
Note 1. Nature of Operations and Basis of Presentation
Essent Group Ltd. (“Essent Group”) is a Bermuda-based holding company, which, through its wholly-owned subsidiaries, offers private mortgage insurance and reinsurance for mortgages secured by residential properties located in the United States. Mortgage insurance facilitates the sale of low down payment (generally less than 20%) mortgage loans into the secondary mortgage market, primarily to two government-sponsored enterprises (“GSEs”), Fannie Mae and Freddie Mac.
The primary mortgage insurance operations are conducted through Essent Guaranty, Inc. (“Essent Guaranty”), which is domiciled in the state of Pennsylvania. Essent Guaranty is headquartered in Radnor, Pennsylvania and maintains an operations center in Winston-Salem, North Carolina. Essent Guaranty is approved as a qualified mortgage insurer by the GSEs and is licensed to write mortgage insurance in all 50 states and the District of Columbia.
Essent Guaranty reinsures new insurance written ("NIW") to Essent Reinsurance Ltd. (“Essent Re”), an affiliated Bermuda domiciled Class 3B Insurer licensed pursuant to Section 4 of the Bermuda Insurance Act 1978 that provides insurance and reinsurance coverage of mortgage credit risk. Essent Re also provides insurance and reinsurance to Freddie Mac and Fannie Mae. The following table summarizes the quota share reinsurance coverage that Essent Re has provided to Essent Guaranty for the respective NIW periods:

NIW Period |  | Ceding Percentage
January 1, 2025 to Present |  | 50%
January 1, 2021 to December 31, 2024 |  | 35%
Prior to January 1, 2021 |  | 25%

In 2016, Essent Re formed Essent Agency (Bermuda) Ltd., a wholly-owned subsidiary, which provides underwriting consulting services to third-party reinsurers.
Prior to December 31, 2024, Essent Guaranty also reinsured that portion of the risk that is in excess of 25% of the mortgage balance with respect to any loan insured prior to April 1, 2019, after consideration of other reinsurance, to Essent Guaranty of PA, Inc. (“Essent PA”), an affiliate domiciled in the state of Pennsylvania. On December 31, 2024, Essent Guaranty and Essent PA entered into a commutation and release agreement in which all outstanding risk in force assumed by Essent PA was commuted back to Essent Guaranty in exchange for cash. Upon the commutation and release, Essent PA surrendered its insurance license and is no longer an insurance subsidiary of Essent Group Ltd. as of December 31, 2024.
In addition to offering mortgage insurance, we provide contract underwriting services on a limited basis through CUW Solutions, LLC ("CUW Solutions"), a Delaware limited liability company, that provides, among other things, mortgage contract underwriting services to lenders and mortgage insurance underwriting services to affiliates. CUW Solutions is headquartered in Radnor, Pennsylvania and it maintains an operations center in Winston-Salem, North Carolina that is subleased from Essent Guaranty.
As a result of our acquisitions of Agents National Title Insurance Company (renamed Essent Title Insurance, Inc. effective January 1, 2025) and Boston National Holdings LLC on July 1, 2023, we now offer title insurance products and title and settlement services. Our title insurance operations are headquartered in Radnor, Pennsylvania, with additional locations in Charlotte, North Carolina, Columbia, Missouri and Pittsburgh, Pennsylvania.
5

Table of Contents
Essent Group Ltd. and Subsidiaries
Notes to Condensed Consolidated Financial Statements (Unaudited)
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.
We have prepared the condensed consolidated financial statements included herein pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). We have condensed or omitted certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) pursuant to such rules and regulations. In the opinion of management, the statements include all adjustments (which include normal recurring adjustments) required for a fair statement of financial position, results of operations and cash flows for the interim periods presented. These statements should be read in conjunction with the consolidated financial statements and notes thereto, including Note 1 and Note 2 to the consolidated financial statements, included in our Annual Report on Form 10-K for the year ended December 31, 2024, which discloses the principles of consolidation and a summary of significant accounting policies. The results of operations for the interim periods are not necessarily indicative of the results for the full year. We evaluated the need to recognize or disclose events that occurred subsequent to June 30, 2025 prior to the issuance of these condensed consolidated financial statements.
Certain amounts in prior years have been reclassified to conform to the current year presentation.
Note 2. Recently Issued Accounting Standards
Accounting Standards Not Yet Adopted
In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures. The standard requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid, including taxes paid by jurisdiction. The ASU will be effective for annual periods beginning after December 15, 2024. The guidance will be applied on a prospective basis with the option to apply the standard retrospectively, with early adoption permitted. The Company is currently evaluating the impact that the ASU will have on our consolidated financial statements.
In November 2024, the FASB issued ASU No. 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (“ASU 2024-03”) and in January 2025, the FASB issued ASU No. 2025-01, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date, which clarified the effective date of ASU 2024-03. ASU 2024-03 will require the Company to disclose the amounts of purchases of inventory, employee compensation, depreciation and intangible asset amortization, as applicable, included in certain expense captions in the Consolidated Statements of Operations, as well as qualitatively describe remaining amounts included in those captions. ASU 2024-03 will also require the Company to disclose both the amount and the Company’s definition of selling expenses. The ASU is effective for annual reporting periods beginning after December 15, 2026 and interim reporting periods within annual reporting periods beginning after December 15, 2027. The Company is currently evaluating the impact that the ASU will have on our consolidated financial statements.
6

Table of Contents
Essent Group Ltd. and Subsidiaries
Notes to Condensed Consolidated Financial Statements (Unaudited)
Note 3. Investments
Investments available for sale consist of the following:

June 30, 2025 (In thousands) |  | Amortized Cost |  | Unrealized Gains |  | Unrealized Losses |  | Fair Value
U.S. Treasury securities |  | $ | 398,591 |  |  | $ | 1,707 |  |  | $ | (8,837) |  |  | $ | 391,461 |
U.S. agency mortgage-backed securities |  | 1,265,904 |  |  | 2,646 |  |  | (95,835) |  |  | 1,172,715 |
Municipal debt securities(1) |  | 645,877 |  |  | 1,734 |  |  | (46,993) |  |  | 600,618 |
Non-U.S. government securities |  | 72,261 |  |  | — |  |  | (10,095) |  |  | 62,166 |
Corporate debt securities |  | 1,968,972 |  |  | 8,497 |  |  | (69,302) |  |  | 1,908,167 |
Residential and commercial mortgage securities |  | 484,715 |  |  | 646 |  |  | (30,980) |  |  | 454,381 |
Asset-backed securities |  | 801,867 |  |  | 2,362 |  |  | (8,164) |  |  | 796,065 |
Money market funds |  | 580,964 |  |  | — |  |  | — |  |  | 580,964 |
Total investments available for sale |  | $ | 6,219,151 |  |  | $ | 17,592 |  |  | $ | (270,206) |  |  | $ | 5,966,537 |

December 31, 2024 (In thousands) |  | Amortized Cost |  | Unrealized Gains |  | Unrealized Losses |  | Fair Value
U.S. Treasury securities |  | $ | 561,853 |  |  | $ | 325 |  |  | $ | (14,888) |  |  | $ | 547,290 |
U.S. agency mortgage-backed securities |  | 1,249,259 |  |  | 42 |  |  | (123,865) |  |  | 1,125,436 |
Municipal debt securities (1) |  | 631,015 |  |  | 1,596 |  |  | (49,110) |  |  | 583,501 |
Non-U.S. government securities |  | 81,631 |  |  | — |  |  | (11,833) |  |  | 69,798 |
Corporate debt securities (2) |  | 1,887,647 |  |  | 1,064 |  |  | (105,665) |  |  | 1,783,046 |
Residential and commercial mortgage securities |  | 519,613 |  |  | 527 |  |  | (42,054) |  |  | 478,086 |
Asset-backed securities |  | 642,395 |  |  | 601 |  |  | (11,037) |  |  | 631,959 |
Money market funds |  | 657,605 |  |  | — |  |  | — |  |  | 657,605 |
Total investments available for sale |  | $ | 6,231,018 |  |  | $ | 4,155 |  |  | $ | (358,452) |  |  | $ | 5,876,721 |

|  | June 30, |  | December 31,
(1) The following table summarizes municipal debt securities as of : |  | 2025 |  | 2024
Special revenue bonds |  | 82.6 | % |  | 83.3 | %
General obligation bonds |  | 17.4 |  |  | 16.7 |
Total |  | 100.0 | % |  | 100.0 | %

|  | June 30, |  | December 31,
(2) The following table summarizes corporate debt securities as of : |  | 2025 |  | 2024
Financial |  | 41.5 | % |  | 41.8 | %
Consumer, non-cyclical |  | 16.1 |  |  | 15.1 |
Utilities |  | 8.7 |  |  | 8.7 |
Industrial |  | 8.2 |  |  | 8.2 |
Technology |  | 6.4 |  |  | 6.4 |
Consumer, cyclical |  | 6.2 |  |  | 6.3 |
Communications |  | 5.2 |  |  | 5.7 |
Energy |  | 5.0 |  |  | 5.1 |
Basic Materials |  | 2.7 |  |  | 2.7 |
Total |  | 100.0 | % |  | 100.0 | %

7

Table of Contents
Essent Group Ltd. and Subsidiaries
Notes to Condensed Consolidated Financial Statements (Unaudited)
The amortized cost and fair value of investments available for sale at June 30, 2025, 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 |  | $ | 94,020 |  |  | $ | 92,725 |
Due after 1 but within 5 years |  | 268,372 |  |  | 265,801 |
Due after 5 but within 10 years |  | 21,709 |  |  | 20,340 |
Due after 10 years |  | 14,490 |  |  | 12,595 |
Subtotal |  | 398,591 |  |  | 391,461 |
Municipal debt securities: |  |  |  |
Due in 1 year |  | 20,710 |  |  | 20,575 |
Due after 1 but within 5 years |  | 91,433 |  |  | 89,634 |
Due after 5 but within 10 years |  | 147,229 |  |  | 140,145 |
Due after 10 years |  | 386,505 |  |  | 350,264 |
Subtotal |  | 645,877 |  |  | 600,618 |
Non-U.S. government securities: |  |  |  |
Due in 1 year |  | 6,529 |  |  | 6,455 |
Due after 1 but within 5 years |  | 25,938 |  |  | 25,340 |
Due after 5 but within 10 years |  | 7,696 |  |  | 6,545 |
Due after 10 years |  | 32,098 |  |  | 23,826 |
Subtotal |  | 72,261 |  |  | 62,166 |
Corporate debt securities: |  |  |  |
Due in 1 year |  | 165,479 |  |  | 164,573 |
Due after 1 but within 5 years |  | 612,577 |  |  | 597,076 |
Due after 5 but within 10 years |  | 990,216 |  |  | 973,327 |
Due after 10 years |  | 200,700 |  |  | 173,191 |
Subtotal |  | 1,968,972 |  |  | 1,908,167 |
U.S. agency mortgage-backed securities |  | 1,265,904 |  |  | 1,172,715 |
Residential and commercial mortgage securities |  | 484,715 |  |  | 454,381 |
Asset-backed securities |  | 801,867 |  |  | 796,065 |
Money market funds |  | 580,964 |  |  | 580,964 |
Total investments available for sale |  | $ | 6,219,151 |  |  | $ | 5,966,537 |

The components of realized investment (losses) gains, net on the condensed consolidated statements of comprehensive income were as follows:

|  | Three Months Ended June 30, |  | Six Months Ended June 30,
(In thousands) |  | 2025 |  | 2024 |  | 2025 |  | 2024
Realized gross gains |  | $ | 19 |  |  | $ | 51 |  |  | $ | 19 |  |  | $ | 55 |
Realized gross losses |  | (148) |  |  | (692) |  |  | (329) |  |  | (1,836) |
Impairment loss |  | — |  |  | (523) |  |  | — |  |  | (523) |

8

Table of Contents
Essent Group Ltd. and Subsidiaries
Notes to Condensed Consolidated Financial Statements (Unaudited)
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 months |  | 12 months or more |  | Total
June 30, 2025 (In thousands) |  | Fair Value |  | Gross Unrealized Losses |  | Fair Value |  | Gross Unrealized Losses |  | Fair Value |  | Gross Unrealized Losses
U.S. Treasury securities |  | $ | 33,700 |  |  | $ | (201) |  |  | $ | 205,869 |  |  | $ | (8,636) |  |  | $ | 239,569 |  |  | $ | (8,837) |
U.S. agency mortgage-backed securities |  | 321,777 |  |  | (5,139) |  |  | 606,917 |  |  | (90,696) |  |  | 928,694 |  |  | (95,835) |
Municipal debt securities |  | 203,037 |  |  | (7,028) |  |  | 281,737 |  |  | (39,965) |  |  | 484,774 |  |  | (46,993) |
Non-U.S. government securities |  | 15,049 |  |  | (4,027) |  |  | 47,117 |  |  | (6,068) |  |  | 62,166 |  |  | (10,095) |
Corporate debt securities |  | 524,650 |  |  | (8,344) |  |  | 645,501 |  |  | (60,958) |  |  | 1,170,151 |  |  | (69,302) |
Residential and commercial mortgage securities |  | 25,314 |  |  | (327) |  |  | 395,500 |  |  | (30,653) |  |  | 420,814 |  |  | (30,980) |
Asset-backed securities |  | 230,813 |  |  | (2,830) |  |  | 119,064 |  |  | (5,334) |  |  | 349,877 |  |  | (8,164) |
Total |  | $ | 1,354,340 |  |  | $ | (27,896) |  |  | $ | 2,301,705 |  |  | $ | (242,310) |  |  | $ | 3,656,045 |  |  | $ | (270,206) |

|  | Less than 12 months |  | 12 months or more |  | Total
December 31, 2024 (In thousands) |  | Fair Value |  | Gross Unrealized Losses |  | Fair Value |  | Gross Unrealized Losses |  | Fair Value |  | Gross Unrealized Losses
U.S. Treasury securities |  | $ | 141,789 |  |  | $ | (1,620) |  |  | $ | 279,143 |  |  | $ | (13,268) |  |  | $ | 420,932 |  |  | $ | (14,888) |
U.S. agency mortgage-backed securities |  | 476,695 |  |  | (13,028) |  |  | 629,036 |  |  | (110,837) |  |  | 1,105,731 |  |  | (123,865) |
Municipal debt securities |  | 204,810 |  |  | (5,688) |  |  | 282,312 |  |  | (43,422) |  |  | 487,122 |  |  | (49,110) |
Non-U.S. government securities |  | 4,146 |  |  | (262) |  |  | 65,652 |  |  | (11,571) |  |  | 69,798 |  |  | (11,833) |
Corporate debt securities |  | 898,449 |  |  | (25,547) |  |  | 725,148 |  |  | (80,118) |  |  | 1,623,597 |  |  | (105,665) |
Residential and commercial mortgage securities |  | 39,931 |  |  | (1,168) |  |  | 421,891 |  |  | (40,886) |  |  | 461,822 |  |  | (42,054) |
Asset-backed securities |  | 188,475 |  |  | (2,701) |  |  | 164,683 |  |  | (8,336) |  |  | 353,158 |  |  | (11,037) |
Total |  | $ | 1,954,295 |  |  | $ | (50,014) |  |  | $ | 2,567,865 |  |  | $ | (308,438) |  |  | $ | 4,522,160 |  |  | $ | (358,452) |

At June 30, 2025 and December 31, 2024, we held 2,178 and 2,481 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 June 30, 2025 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 99% of the securities at June 30, 2025 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 impairment. There were no impairments recorded in the three and six months ended June 30, 2025. We recorded impairments of $0.5 million during the three and six months ended June 30, 2024 due to our intent to sell securities in an unrealized loss position.
The Company's other invested assets at June 30, 2025 and December 31, 2024 totaled $359.8 million and $303.9 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.
9

Table of Contents
Essent Group Ltd. and Subsidiaries
Notes to Condensed Consolidated Financial Statements (Unaudited)
Other invested assets that are accounted for at fair value using the net asset value (or its equivalent) as a practical expedient totaled $179.7 million as of June 30, 2025 and $171.7 million as of December 31, 2024. The majority of these investments were in limited partnerships invested in real estate or consumer credit. At June 30, 2025, maximum future funding commitments were $44 million. For limited partnership investments that have a contractual expiration date, we expect the liquidation of the underlying assets to occur over the next one 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 $8.7 million at June 30, 2025 and $9.3 million at December 31, 2024. 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 June 30, 2025 and $983.5 million at December 31, 2024. 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 $5.1 million at June 30, 2025 and $9.3 million at December 31, 2024.
Net investment income consists of:

|  | Three Months Ended June 30, |  | Six Months Ended June 30,
(In thousands) |  | 2025 |  | 2024 |  | 2025 |  | 2024
Fixed maturities |  | $ | 54,946 |  |  | $ | 45,368 |  |  | $ | 107,432 |  |  | $ | 91,656 |
Short-term investments |  | 6,073 |  |  | 11,831 |  |  | 13,548 |  |  | 18,974 |
Gross investment income |  | 61,019 |  |  | 57,199 |  |  | 120,980 |  |  | 110,630 |
Investment expenses |  | (1,730) |  |  | (1,113) |  |  | (3,481) |  |  | (2,459) |
Net investment income |  | $ | 59,289 |  |  | $ | 56,086 |  |  | $ | 117,499 |  |  | $ | 108,171 |

Note 4. 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 condensed 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:

|  | Three Months Ended June 30, |  | Six Months Ended June 30,
(In thousands) |  | 2025 |  | 2024 |  | 2025 |  | 2024
Net premiums written: |  |  |  |  |  |  |  |
Direct |  | $ | 274,872 |  |  | $ | 272,910 |  |  | $ | 547,266 |  |  | $ | 541,841 |
Ceded (1) |  | (33,384) |  |  | (27,344) |  |  | (67,507) |  |  | (57,735) |
Net premiums written |  | $ | 241,488 |  |  | $ | 245,566 |  |  | $ | 479,759 |  |  | $ | 484,106 |
Net premiums earned: |  |  |  |  |  |  |  |
Direct |  | $ | 282,193 |  |  | $ | 279,235 |  |  | $ | 562,164 |  |  | $ | 555,216 |
Ceded (1) |  | (33,384) |  |  | (27,344) |  |  | (67,507) |  |  | (57,735) |
Net premiums earned |  | $ | 248,809 |  |  | $ | 251,891 |  |  | $ | 494,657 |  |  | $ | 497,481 |

(1)Net of profit commission.
10

Table of Contents
Essent Group Ltd. and Subsidiaries
Notes to Condensed Consolidated Financial Statements (Unaudited)
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 financial strength rating of A- or better by S&P Global Ratings, A.M. Best Ratings Services, Inc. or both. Under each QSR agreement, Essent Guaranty will cede premiums earned 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, and 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 table summarizes Essent Guaranty's quota share reinsurance agreements as of June 30, 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%

_______________________________________________________________________________
(1)Under QSR-2019, Essent Guaranty cedes 40% of premiums on singles policies and 20% on all other policies.
Total risk in force (RIF) ceded under the QSR agreements was $9.5 billion as of June 30, 2025. During the first quarter of 2025, Essent also entered into a forward quota share transaction covering 25% of the risk of all eligible policies written by Essent Guaranty, Inc. in calendar year 2026.
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.
Essent Guaranty has also 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.
11

Table of Contents
Essent Group Ltd. and Subsidiaries
Notes to Condensed Consolidated Financial Statements (Unaudited)
The following table summarizes Essent Guaranty's excess of loss coverages and retentions provided by insurance linked notes as of June 30, 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 |  | $ | 21,095,901 |  |  | $ | 5,826,753 |  |  |  |  | $ | 139,755 |  |  |  |  |  | $ | 277,158 |  |  |  |  |  |  | June 26, 2028
Radnor Re 2021-2 | Apr. 2021 - Sep. 2021 |  | 26,864,364 |  |  | 7,566,871 |  |  |  |  | 228,819 |  |  |  |  |  | 273,926 |  |  |  |  |  |  | November 25, 2027
Radnor Re 2022-1 | Oct. 2021 - Jul. 2022 |  | 26,046,456 |  |  | 7,171,205 |  |  |  |  | 146,841 |  |  |  |  |  | 297,208 |  |  |  |  |  |  | September 25, 2028
Radnor Re 2023-1 | Aug. 2022 - Jun. 2023 |  | 26,469,770 |  |  | 7,268,636 |  |  |  |  | 235,647 |  |  |  |  |  | 278,466 |  |  |  |  |  |  | July 25, 2028
Radnor Re 2024-1 | Jul. 2023 - Jul. 2024 |  | 27,346,263 |  |  | 7,567,326 |  |  |  |  | 297,147 |  |  |  |  |  | 256,437 |  |  |  |  |  |  | September 25, 2029
Total |  |  | $ | 127,822,754 |  |  | $ | 35,400,791 |  |  |  |  | $ | 1,048,209 |  |  |  |  |  | $ | 1,383,195 |  |  |  |  |  |  |

The following table summarizes Essent Guaranty's excess of loss reinsurance coverages and retentions provided by panels of reinsurers as of June 30, 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 |  | $ | 4,124,729 |  |  | $ | 1,088,405 |  |  |  |  | $ | 76,144 |  |  |  |  |  | $ | 242,687 |  |  |  |  |  |  | February 25, 2026
XOL 2020-1 | Jan. 2019 - Aug. 2019 |  | 5,279,113 |  |  | 1,397,295 |  |  |  |  | 29,152 |  |  |  |  |  | 211,235 |  |  |  |  |  |  | January 25, 2027
XOL 2022-1 | Oct. 2021 - Dec. 2022 |  | 59,046,810 |  |  | 16,186,034 |  |  |  |  | 141,992 |  |  |  |  |  | 489,255 |  |  |  |  |  |  | January 1, 2030
XOL 2023-1 | Jan. 2023 - Dec. 2023 |  | 34,703,053 |  |  | 9,630,585 |  |  |  |  | 36,627 |  |  |  |  |  | 364,437 |  |  |  |  |  |  | January 1, 2028
XOL 2024-1 | Jan. 2024 - Dec. 2024 |  | 38,318,310 |  |  | 10,531,084 |  |  |  |  | 58,005 |  |  |  |  |  | 331,178 |  |  |  |  |  |  | January 1, 2030
Total |  |  | $ | 141,472,015 |  |  | $ | 38,833,403 |  |  |  |  | $ | 341,920 |  |  |  |  |  | $ | 1,638,792 |  |  |  |  |  |  |

In April 2025, Essent entered into two excess of loss transactions, effective July 1 of each year, with panels of highly rated third-party reinsurers covering 20% of all eligible policies written by Essent Guaranty, Inc. in calendar years 2025 and 2026.
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.
12

Table of Contents
Essent Group Ltd. and Subsidiaries
Notes to Condensed Consolidated Financial Statements (Unaudited)
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 June 30, 2025:

|  |  |  | Maximum Exposure to Loss
(In thousands) |  | Total VIE Assets |  | On - Balance Sheet |  | Off - Balance Sheet |  | Total
Radnor Re 2021-1 Ltd. |  | $ | 139,755 |  |  | $ | (5,548) |  |  | $ | 11 |  |  | $ | (5,537) |
Radnor Re 2021-2 Ltd. |  | 228,819 |  |  | (6,064) |  |  | 37 |  |  | (6,027) |
Radnor Re 2022-1 Ltd. |  | 146,841 |  |  | (268) |  |  | 25 |  |  | (243) |
Radnor Re 2023-1 Ltd. |  | 235,647 |  |  | 217 |  |  | 44 |  |  | 261 |
Radnor Re 2024-1 Ltd. |  | 297,147 |  |  | 271 |  |  | 66 |  |  | 337 |
Total |  | $ | 1,048,209 |  |  | $ | (11,392) |  |  | $ | 183 |  |  | $ | (11,209) |

The assets of the Radnor Re entities are the source of reinsurance claim payments to Essent Guaranty and provide capital relief under the PMIERs financial strength requirements (see Note 14). A decline in the assets available to pay claims would reduce the capital relief available to Essent Guaranty.
Note 5. Reserve for Losses and Loss Adjustment Expenses
The following table provides a reconciliation of the beginning and ending reserve balances for losses and loss adjustment expenses (“LAE”) for the six months ended June 30:

(In thousands) |  | 2025 |  | 2024
Reserve for losses and LAE at beginning of period |  | $ | 328,866 |  |  | $ | 260,095 |
Less: Reinsurance recoverables |  | 36,754 |  |  | 24,104 |
Net reserve for losses and LAE at beginning of period |  | 292,112 |  |  | 235,991 |
Add provision for losses and LAE, net of reinsurance, occurring in: |  |  |  |
Current period |  | 96,403 |  |  | 70,584 |
Prior years |  | (48,061) |  |  | (61,005) |
Net incurred losses and LAE during the current period |  | 48,342 |  |  | 9,579 |
Deduct payments for losses and LAE, net of reinsurance, occurring in: |  |  |  |
Current period |  | 367 |  |  | 885 |
Prior years |  | 17,403 |  |  | 10,118 |
Net loss and LAE payments during the current period |  | 17,770 |  |  | 11,003 |
Net reserve for losses and LAE at end of period |  | 322,684 |  |  | 234,567 |
Plus: Reinsurance recoverables |  | 42,065 |  |  | 26,121 |
Reserve for losses and LAE at end of period |  | $ | 364,749 |  |  | $ | 260,668 |

For the six months ended June 30, 2025, $17.4 million was paid for incurred claims and claim adjustment expenses attributable to insured events of prior years. There has been $48.1 million of favorable prior year development during the six months ended June 30, 2025. Net reserves remaining as of June 30, 2025 for prior years are $226.6 million as a result of re-estimation of unpaid losses and loss adjustment expenses. For the six months ended June 30, 2024, $10.1 million was paid for incurred claims and claim adjustment expenses attributable to insured events of prior years. There was $61.0 million of favorable prior year development during the six months ended June 30, 2024. Reserves remaining as of June 30, 2024 for prior years were $164.9 million as a result of re-estimation of unpaid losses and loss adjustment expenses. In both periods, the favorable prior years' loss development was the result of a re-estimation of amounts ultimately to be paid on prior year defaults in the default inventory, including the impact of previously identified defaults that cured. Original estimates are increased or decreased as additional information becomes known regarding individual claims.
13

Table of Contents
Essent Group Ltd. and Subsidiaries
Notes to Condensed Consolidated Financial Statements (Unaudited)
On September 26, 2024, Hurricane Helene made landfall and caused property damage in certain counties in Florida, Georgia, South Carolina, North Carolina, Tennessee and Virginia. On October 9, 2024, Hurricane Milton made landfall, causing damage in certain counties in Florida. Loans in default at December 31, 2024 included 2,119 defaults that we identified as hurricane-related defaults. Based on prior industry experience, we expect the ultimate number of hurricane-related defaults that result in claims will be less than the default-to-claim experience of non-hurricane-related defaults. In addition, under our master policy, our exposure may be limited on hurricane-related claims. For example, we are permitted to exclude a claim entirely where damage to the property underlying a mortgage was the proximate cause of the default and adjust a claim where the property underlying a mortgage in default is subject to unrestored physical damage. Accordingly, when establishing our loss reserves as of December 31, 2024, we applied a lower estimated claim rate to new default notices received in the fourth quarter of 2024 from the affected areas than the claim rate we apply to other notices in our default inventory. The impact on our reserves in future periods will be dependent upon the performance of the hurricane-related defaults and our expectations for the amount of ultimate losses on these delinquencies. As of June 30, 2025, the reserves established for the Hurricane Milton and Helene defaults are materially unchanged from December 31, 2024 as this amount continues to be our best estimate of the ultimate losses to be incurred for claims associated with those defaults.
In January 2025, several wildfires caused property damage in Southern California. As of June 30, 2025, our insurance in force in areas with Federal Emergency Management Agency ("FEMA") disaster declarations due to these wildfires was less than 0.1% of our total insurance in force. These wildfires have not materially affected our reserves as of June 30, 2025.
The Federal Reserve increased the target federal funds rate several times during 2022 and 2023 in an effort to reduce consumer price inflation. As a result of progress on inflation, the Federal Reserve reduced the target federal funds rate by 100 basis points since September 2024. Mortgage interest rates remain elevated which has reduced home sale activity and may affect the options available to delinquent borrowers. It is reasonably possible that our estimate of losses could change in the near term as a result of changes in the economic environment, the impact of elevated mortgage interest rates on home sale activity, housing inventory and home prices.
Note 6. Debt Obligations
Credit Facility
Through June 30, 2024, Essent Group and its subsidiaries, Essent Irish Intermediate Holdings Limited and Essent US Holdings, Inc. (collectively, the "Borrowers"), were parties to a five-year secured credit facility with a committed capacity of $825 million (the "Existing Credit Facility"). The Existing Credit Facility also provided for up to $175 million aggregate principal amount of uncommitted incremental term loan and/or revolving credit facilities that may be exercised at the Borrowers’ option so long as the Borrowers receive commitments from the lenders. Borrowings under the Existing Credit Facility may have been used for working capital and general corporate purposes, including, without limitation, capital contributions to Essent’s insurance and reinsurance subsidiaries. Borrowings accrued interest at a floating rate tied to a standard short-term borrowing index, selected at the Company’s option, plus an applicable margin. A commitment fee was due quarterly on the average daily amount of the undrawn revolving commitment. The applicable margin and the commitment fee were based on the senior unsecured debt rating or long-term issuer rating of Essent Group to the extent available, or the insurer financial strength rating of Essent Guaranty. The obligations under the Existing Credit Facility were secured by certain assets of the Borrowers, excluding the stock and assets of its insurance and reinsurance subsidiaries. The Credit Facility contained several covenants, including financial covenants relating to minimum net worth, capital and liquidity levels, maximum debt to capitalization level and Essent Guaranty's compliance with the PMIERs (see Note 14). As of June 30, 2024, the Company was in compliance with the covenants and $425 million had been borrowed under the term loan portion of the Existing Credit Facility with a weighted average interest rate of 7.07%.
On July 1, 2024, Essent Group completed an underwritten public offering of $500 million principal amount of 6.25% Senior Notes due 2029 (the “Senior Notes"). Interest on the Senior Notes will be payable semi-annually in arrears on January 1 and July 1 of each year, beginning on January 1, 2025. The Senior Notes will mature on July 1, 2029. At any time prior to June 1, 2029 (one month prior to the maturity date), the Company may redeem the Senior Notes, at its option, in whole or in part, at any time and from time to time, at a redemption price described in the Supplemental Indenture plus accrued and unpaid interest, if any, to, but excluding, the redemption date. At any time and from time to time on or after June 1, 2029, the Company may redeem, at its option, in whole or in part, the Senior Notes at a redemption price equal to 100% of the principal amount of the Senior Notes to be redeemed plus accrued and unpaid interest, if any, to, but excluding, the redemption date. The net proceeds
14

Table of Contents
Essent Group Ltd. and Subsidiaries
Notes to Condensed Consolidated Financial Statements (Unaudited)
from the sale of the Senior Notes, after deducting the underwriting discounts and commissions and estimated offering expenses, were approximately $495.3 million. The Company used the net proceeds from the sale of the Senior Notes to repay all of the borrowings outstanding under the term loan portion of the Existing Credit Facility described above, and intends to use the remaining net proceeds for general corporate purposes.
On July 1, 2024, concurrently with the closing of the Offering of the Senior Notes and the repayment of all of the borrowings outstanding under the term loan portion of its Existing Credit Agreement, the Fourth Amended and Restated Credit Agreement (the “Revolving Credit Agreement”) became effective and amends and restates the Existing Credit Facility. Under the Revolving Credit Agreement, the Refinancing Agreement Revolving Lenders (as defined therein) agreed to provide the Company with a five-year unsecured revolving credit facility of up to $500 million of senior unsecured revolving loans (the “Revolving Credit Facility”). A commitment fee is due quarterly on the average daily amount of the undrawn revolving commitment. The annual commitment fee rate at June 30, 2025 was 0.225%. The Revolving Credit Facility also provides for an aggregate principal amount of up to $250 million in uncommitted incremental revolving credit facilities that may be exercised at the Company’s option, so long as the Company receives sufficient commitments from the bank lenders.
The Senior Notes are presented on the consolidated balance sheets net of an unamortized issuance discount of $1.5 million and $1.7 million and deferred issuance costs of $3.9 million and $4.4 million as of June 30, 2025 and December 31, 2024, respectively.
Note 7. Commitments and Contingencies
Obligations under Guarantees
Under the terms of CUW Solutions' contract underwriting agreements with lenders and subject to contractual limitations on liability, we agree to indemnify certain lenders against losses incurred in the event that we make an error in determining whether loans processed meet specified underwriting criteria, to the extent that such error materially restricts or impairs the salability of such loan, results in a material reduction in the value of such loan or results in the lender repurchasing the loan. The indemnification may be in the form of monetary or other remedies. We paid less than $0.1 million in the six months ended June 30, 2025 and 2024, respectively. As of June 30, 2025, management believes any potential claims for indemnification related to contract underwriting services through June 30, 2025 are not material to our consolidated financial position or results of operations.
In addition to the indemnifications discussed above, in the normal course of business, we enter into agreements or other relationships with third parties pursuant to which we may be obligated under specified circumstances to indemnify the counterparties with respect to certain matters. Our contractual indemnification obligations typically arise in the context of agreements entered into by us to, among other things, purchase or sell services, finance our business and business transactions, lease real property and license intellectual property. The agreements we enter into in the normal course of business generally require us to pay certain amounts to the other party associated with claims or losses if they result from our breach of the agreement, including the inaccuracy of representations or warranties. The agreements we enter into may also contain other indemnification provisions that obligate us to pay amounts upon the occurrence of certain events, such as the negligence or willful misconduct of our employees, infringement of third-party intellectual property rights or claims that performance of the agreement constitutes a violation of law. Generally, payment by us under an indemnification provision is conditioned upon the other party making a claim, and typically we can challenge the other party’s claims. Further, our indemnification obligations may be limited in time and/or amount, and in some instances, we may have recourse against third parties for certain payments made by us under an indemnification agreement or obligation. As of June 30, 2025, contingencies triggering material indemnification obligations or payments have not occurred historically and are not expected to occur. The nature of the indemnification provisions in the various types of agreements and relationships described above are believed to be low risk and pervasive, and we consider them to have a remote risk of loss or payment. We have not recorded any provisions on the condensed consolidated balance sheets related to indemnifications.
15

Table of Contents
Essent Group Ltd. and Subsidiaries
Notes to Condensed Consolidated Financial Statements (Unaudited)
Note 8. Capital Stock
Our authorized share capital consists of 233.3 million shares of a single class of common shares. The common shares have no preemptive rights or other rights to subscribe for additional shares, and no rights of redemption, conversion or exchange. Under certain circumstances and subject to the provisions of Bermuda law and our bye-laws, we may be required to make an offer to repurchase shares held by members. The common shares rank pari passu with one another in all respects as to rights of payment and distribution. In general, holders of common shares will have one vote for each common share held by them and will be entitled to vote, on a non-cumulative basis, at all meetings of shareholders. In the event that a shareholder is considered a 9.5% Shareholder under our bye-laws, such shareholder's votes will be reduced by whatever amount is necessary so that after any such reduction the votes of such shareholder will not result in any other person being treated as a 9.5% Shareholder with respect to the vote on such matter. Under these provisions certain shareholders may have their voting rights limited to less than one vote per share, while other shareholders may have voting rights in excess of one vote per share.
Dividends
The following table presents the amounts declared and paid per common share each quarter:

Quarter Ended |  | 2025 |  | 2024 |  |
March 31 |  | $ | 0.31 |  |  | $ | 0.28 |  |  |
June 30 |  | 0.31 |  |  | 0.28 |  |  |
September 30 |  | — |  |  | 0.28 |  |  |
December 31 |  | — |  |  | 0.28 |  |  |
Total dividends per common share declared and paid |  | $ | 0.62 |  |  | $ | 1.12 |  |  |

In August 2025, the Board of Directors declared a quarterly cash dividend of $0.31 per common share payable on September 10, 2025 to shareholders of record on August 29, 2025.
Share Repurchase Plan
In October 2023, the Board of Directors approved a share repurchase plan that authorized the Company to repurchase $250 million of common shares in the open market between January 1, 2024 and December 31, 2025. Through the year ended December 31, 2024, the Company repurchased 1,859,695 common shares at a cost of $102.7 million. In February 2025, the Board of Directors approved a share repurchase plan that authorizes the Company to repurchase an additional $500 million of common shares in the open market through December 31, 2026. From January 1, 2025 through June 30, 2025 the Company purchased 5,755,400 common shares at a cost of $328.5 million. The shares repurchased were recorded at cost and included in treasury stock. All treasury stock has been cancelled as of June 30, 2025.
Note 9. Stock-Based Compensation
In 2013, Essent Group's Board of Directors adopted, and Essent Group's shareholders approved, the Essent Group Ltd. 2013 Long-Term Incentive Plan (the "2013 Plan"), which was effective upon completion of the initial public offering. The 2013 Plan was most recently amended effective upon shareholder approval in May 2023 to increase the number of shares available for issuance under the 2013 Plan by 2 million shares. The types of awards available under the 2013 Plan include nonvested shares, nonvested share units, non-qualified share options, incentive stock options, share appreciation rights, and other share-based or cash-based awards. Nonvested shares and nonvested share units granted under the 2013 Plan have rights to dividends, which entitle holders to the same dividend value per share as holders of common shares in the form of dividend equivalent units ("DEUs"). DEUs are subject to the same vesting and other terms and conditions as the corresponding nonvested shares and nonvested share units. DEUs vest when the underlying shares or share units vest and are forfeited if the underlying share or share units forfeit prior to vesting. The maximum number of shares and share units available for issuance is 7.5 million under the 2013 Plan, as amended. As of June 30, 2025, there were 3.0 million common shares available for future grant under the 2013 Plan.
16

Table of Contents
Essent Group Ltd. and Subsidiaries
Notes to Condensed Consolidated Financial Statements (Unaudited)
The following table summarizes nonvested common share, nonvested common share unit and DEU activity for the six months ended June 30, 2025:

|  | 2025
|  | Time and Performance- Based Share Awards |  | Time-Based Share Awards |  | Time and Performance-Based Share Units |  | Time-Based Share Units |  | DEUs
(Shares in thousands) |  | Number of Shares |  | Weighted Average Grant Date Fair Value |  | Number of Shares |  | Weighted Average Grant Date Fair Value |  | Number of Share Units |  | Weighted Average Grant Date Fair Value |  | Number of Share Units |  | Weighted Average Grant Date Fair Value |  | Dividend Equivalent Units |  | Weighted Average Grant Date Fair Value
Outstanding at beginning of year |  | 837 |  |  | $ | 16.09 |  |  | 127 |  |  | $ | 48.27 |  |  | 67 |  |  | $ | 19.15 |  |  | 763 |  |  | $ | 46.88 |  |  | 67 |  |  | $ | 51.25 |
Granted |  | 236 |  |  | 23.00 |  |  | 53 |  |  | 57.11 |  |  | 44 |  |  | 23.00 |  |  | 123 |  |  | 57.65 |  |  | 18 |  |  | 57.32 |
Vested |  | (246) |  |  | 14.83 |  |  | (67) |  |  | 47.13 |  |  | (4) |  |  | 15.35 |  |  | (229) |  |  | 44.97 |  |  | (27) |  |  | 49.18 |
Forfeited |  | (47) |  |  | 14.83 |  |  | — |  |  | — |  |  | (4) |  |  | 20.38 |  |  | (104) |  |  | 49.78 |  |  | (6) |  |  | 50.84 |
Outstanding at end of period |  | 780 |  |  | $ | 18.66 |  |  | 113 |  |  | $ | 53.07 |  |  | 103 |  |  | $ | 20.92 |  |  | 553 |  |  | $ | 49.53 |  |  | 52 |  |  | $ | 54.45 |

In February 2025, certain members of senior management were granted nonvested common shares under the 2013 Plan that are subject to time-based and performance-based vesting. The time-based share awards granted in February 2025 vest annually in three equal installments commencing on March 1 of the year following the grant year. The performance-based share awards granted in February 2025 vest based upon our compounded annual book value per share growth percentage and relative total shareholder return during a three-year performance period that commenced on January 1, 2025, and they vest on March 1, 2028. Shares were issued at the maximum 200% of target. The portion of these nonvested performance-based share awards that will be earned is as follows:

|  |  |  | Relative Total Shareholder Return vs. S&P 1500 Financial Services Index
|  |  |  | ≤25th percentile |  | 50th percentile |  | ≥75th percentile
Three-Year Book Value Per Share CAGR |  | 11% |  | 100% |  | 150% |  | 200%
| 10% |  | 75% |  | 125% |  | 175%
| 9% |  | 50% |  | 100% |  | 150%
| 7% |  | 25% |  | 75% |  | 125%
| 6% |  | 0% |  | 50% |  | 100%

Certain time-and-performance based share awards and units granted in 2022 and subsequent periods include retirement provisions under which the service requirements are considered satisfied when the employee with a required minimum years of continuous service reaches the eligible retirement age. Under these provisions, stock-based compensation is expensed from the grant date through the date that the employee will satisfy these conditions.
In the event that the compounded annual book value per share growth or the relative total shareholder return falls between the performance levels shown above, the nonvested common shares earned will be determined on a straight-line basis between the respective levels shown.
In connection with our incentive program covering bonus awards for performance year 2024, in February 2025, time-based share units were issued to certain employees that vest in three equal installments on March 1, 2026, 2027 and 2028.
Quoted market prices are used for the valuation of common shares granted that do not contain a market condition under ASC 718. The performance-based share awards granted in February 2023, 2024 and 2025 contain a market condition and
17

Table of Contents
Essent Group Ltd. and Subsidiaries
Notes to Condensed Consolidated Financial Statements (Unaudited)
were valued based on analysis provided by a third-party valuation firm using a risk-neutral simulation taking into effect the vesting conditions of the grant.
The total fair value on the vesting date of nonvested shares, share units or DEUs that vested was $32.8 million and $24.3 million for the six months ended June 30, 2025 and 2024, respectively. As of June 30, 2025, there was $24.6 million of total unrecognized compensation expense related to nonvested shares or share units outstanding at June 30, 2025 and we expect to recognize the expense over a weighted average period of 2.2 years.
Employees have the option to tender shares to Essent Group to pay the minimum employee statutory withholding taxes associated with shares upon vesting. Common shares tendered by employees to pay employee withholding taxes totaled 206,984 in the six months ended June 30, 2025. The tendered shares were recorded at cost and included in treasury stock. All treasury stock has been cancelled as of June 30, 2025.
Compensation expense, net of forfeitures, and related tax effects recognized in connection with nonvested shares and share units was as follows:

|  | Three Months Ended June 30, |  | Six Months Ended June 30,
(In thousands) |  | 2025 |  | 2024 |  | 2025 |  | 2024
Compensation expense |  | $ | 3,950 |  |  | $ | 6,972 |  |  | $ | 12,942 |  |  | $ | 13,792 |
Income tax benefit |  | 752 |  |  | 1,400 |  |  | 2,569 |  |  | 2,778 |

Note 10. Dividends Restrictions
Our U.S. insurance subsidiaries are subject to certain capital and dividend rules and regulations as prescribed by jurisdictions in which they are authorized to operate. Under the insurance laws of the Commonwealth of Pennsylvania, an insurance company may pay dividends during any 12-month period in an amount equal to the greater of (i) 10% of the preceding year-end statutory policyholders' surplus or (ii) the preceding year's statutory net income. The Pennsylvania statute also specifies that dividends and other distributions can be paid out of positive unassigned surplus without prior approval. At June 30, 2025, Essent Guaranty had unassigned surplus of approximately $444.8 million. As of June 30, 2025, Essent Guaranty could pay additional ordinary dividends in 2025 of $365.5 million. In three and six months ended June 30, 2025, Essent Guaranty paid dividends of $65 million and $130 million, respectively, to its parent, Essent US Holdings, Inc. In three and six months ended June 30, 2024, Essent Guaranty paid dividends of $62.5 million and $107.5 million, respectively, to its parent, Essent US Holdings, Inc.
Essent Re is subject to certain dividend restrictions as prescribed by the Bermuda Monetary Authority and under certain agreements with counterparties. In connection with the quota share reinsurance agreement with Essent Guaranty, Essent Re has agreed to maintain a minimum total equity of $100 million. As of June 30, 2025, Essent Re had total equity of $1.8 billion. In the three and six months ended June 30, 2025, Essent Re paid dividends of $120.0 million and $220.0 million, respectively, to its parent, Essent Group Ltd. In the three and six months ended June 30, 2024, Essent Re paid dividends of $87.5 million and $125.0 million, respectively, to its parent, Essent Group Ltd.
At June 30, 2025, our insurance subsidiaries were in compliance with these rules, regulations and agreements.
18

Table of Contents
Essent Group Ltd. and Subsidiaries
Notes to Condensed Consolidated Financial Statements (Unaudited)
Note 11. Earnings per Share (EPS)
The following table reconciles the net income and the weighted average common shares outstanding used in the computations of basic and diluted earnings per common share:

|  | Three Months Ended June 30, |  | Six Months Ended June 30,
(In thousands, except per share amounts) |  | 2025 |  | 2024 |  | 2025 |  | 2024
Net income |  | $ | 195,339 |  |  | $ | 203,609 |  |  | $ | 370,772 |  |  | $ | 385,328 |
Basic weighted average shares outstanding |  | 100,037 |  |  | 105,657 |  |  | 101,451 |  |  | 105,677 |
Dilutive effect of nonvested shares |  | 1,022 |  |  | 1,121 |  |  | 1,044 |  |  | 1,097 |
Diluted weighted average shares outstanding |  | 101,059 |  |  | 106,778 |  |  | 102,495 |  |  | 106,774 |
Basic earnings per share |  | $ | 1.95 |  |  | $ | 1.93 |  |  | $ | 3.65 |  |  | $ | 3.65 |
Diluted earnings per share |  | $ | 1.93 |  |  | $ | 1.91 |  |  | $ | 3.62 |  |  | $ | 3.61 |

There were 24,270 and 37,219 antidilutive shares for the three months ended June 30, 2025 and 2024, respectively, and 68,254 and 102,475 antidilutive shares for the six months ended June 30, 2025 and 2024, respectively
Nonvested performance-based share awards are considered contingently issuable for purposes of the EPS calculation. The 2025, 2024 and 2023 performance-based share awards vest based upon our compounded annual book value per share growth percentage and relative total shareholder return during a three-year performance period. The following table summarizes the performance-based shares issuable if the reporting date was the end of the contingency period:

|  | 2025 Performance-Based Grants |  | 2024 Performance-Based Grants |  | 2023 Performance-Based Grants |  | 2022 Performance-Based Grants
Reporting Date |  | Percent Issuable Relative to Target |  | As a Percent of Shares Issued |  | Percent Issuable Relative to Target |  | As a Percent of Shares Issued |  | Percent Issuable Relative to Target |  | As a Percent of Shares Issued |  | Percent Issuable Relative to Target |  | As a Percent of Shares Issued
June 30, 2025 |  | 200% |  | 100% |  | 128% |  | 64% |  | 195% |  | 97.5% |  | (1) |  | (1)
June 30, 2024 |  |  |  |  |  | 190% |  | 95% |  | 200% |  | 100% |  | 200% |  | 100%

(1) The 2022 performance based awards vested at 168% relative to target on March 1, 2025.
19

Table of Contents
Essent Group Ltd. and Subsidiaries
Notes to Condensed Consolidated Financial Statements (Unaudited)
Note 12. Accumulated Other Comprehensive Income (Loss)
The following table presents the rollforward of accumulated other comprehensive loss for the three and six months ended June 30, 2025 and 2024:

|  | Three Months Ended June 30,
|  | 2025 |  | 2024
(In thousands) |  | Before Tax |  | Tax Effect |  | Net of Tax |  | Before Tax |  | Tax Effect |  | Net of Tax
Balance at beginning of period |  | $ | (271,265) |  |  | $ | 39,019 |  |  | $ | (232,246) |  |  | $ | (347,880) |  |  | $ | 45,618 |  |  | $ | (302,262) |
Other comprehensive income (loss): |  |  |  |  |  |  |  |  |  |  |  |
Unrealized holding gains (losses) on investments: |  |  |  |  |  |  |  |  |  |  |  |
Unrealized holding gains (losses) arising during the period |  | 18,521 |  |  | (2,043) |  |  | 16,478 |  |  | (8,131) |  |  | 1,773 |  |  | (6,358) |
Less: Reclassification adjustment for (gains) losses included in net income (1) |  | 129 |  |  | (27) |  |  | 102 |  |  | 1,164 |  |  | (181) |  |  | 983 |
Net unrealized gains (losses) on investments |  | 18,650 |  |  | (2,070) |  |  | 16,580 |  |  | (6,967) |  |  | 1,592 |  |  | (5,375) |
Other comprehensive income (loss) |  | 18,650 |  |  | (2,070) |  |  | 16,580 |  |  | (6,967) |  |  | 1,592 |  |  | (5,375) |
Balance at end of period |  | $ | (252,615) |  |  | $ | 36,949 |  |  | $ | (215,666) |  |  | $ | (354,847) |  |  | $ | 47,210 |  |  | $ | (307,637) |
|  | Six Months Ended June 30,
|  | 2025 |  | 2024
(In thousands) |  | Before Tax |  | Tax Effect |  | Net of Tax |  | Before Tax |  | Tax Effect |  | Net of Tax
Balance at beginning of period |  | $ | (354,298) |  |  | $ | 50,314 |  |  | $ | (303,984) |  |  | $ | (322,992) |  |  | $ | 42,496 |  |  | $ | (280,496) |
Other comprehensive income (loss): |  |  |  |  |  |  |  |  |  |  |  |
Unrealized holding gains (losses) on investments: |  |  |  |  |  |  |  |  |  |  |  |
Unrealized holding gains (losses) arising during the period |  | 101,373 |  |  | (13,303) |  |  | 88,070 |  |  | (34,159) |  |  | 5,142 |  |  | (29,017) |
Less: Reclassification adjustment for (gains) losses included in net income (1) |  | 310 |  |  | (62) |  |  | 248 |  |  | 2,304 |  |  | (428) |  |  | 1,876 |
Net unrealized gains (losses) on investments |  | 101,683 |  |  | (13,365) |  |  | 88,318 |  |  | (31,855) |  |  | 4,714 |  |  | (27,141) |
Other comprehensive income (loss) |  | 101,683 |  |  | (13,365) |  |  | 88,318 |  |  | (31,855) |  |  | 4,714 |  |  | (27,141) |
Balance at end of period |  | $ | (252,615) |  |  | $ | 36,949 |  |  | $ | (215,666) |  |  | $ | (354,847) |  |  | $ | 47,210 |  |  | $ | (307,637) |

(1)Included in net realized investment losses on our condensed consolidated statements of comprehensive income.
Note 13. Fair Value of Financial Instruments
We carry certain of our financial instruments at fair value. We define fair value as the current amount that would be exchanged to sell an asset or transfer a liability, other than in a forced liquidation.
Fair Value Hierarchy
ASC No. 820 specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our market assumptions. The level within the fair value hierarchy to measure the financial instrument shall be determined based on the lowest level input that is significant to the fair value measurement. The three levels of the fair value hierarchy are as follows:
20

Table of Contents
Essent Group Ltd. and Subsidiaries
Notes to Condensed Consolidated Financial Statements (Unaudited)
•Level 1 — Quoted prices for identical instruments in active markets accessible at the measurement date.
•Level 2 — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and valuations in which all significant inputs are observable in active markets. Inputs are observable for substantially the full term of the financial instrument.
•Level 3 — Valuations derived from one or more significant inputs that are unobservable.
Determination of Fair Value
When available, we generally use quoted market prices to determine fair value and classify the financial instrument in Level 1. In cases where quoted market prices for similar financial instruments are available, we utilize these inputs for valuation techniques and classify the financial instrument in Level 2. In cases where quoted market prices are not available, fair values are based on estimates using discounted cash flows, present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rates and estimates of future cash flows and we classify the financial instrument in Level 3. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument.
We used the following methods and assumptions in estimating fair values of financial instruments:
•Investments available for sale — Investments available for sale are valued using quoted market prices in active markets, when available, and those investments are classified as Level 1 of the fair value hierarchy. Level 1 investments available for sale include investments such as U.S. Treasury securities and money market funds. Investments available for sale are classified as Level 2 of the fair value hierarchy if quoted market prices are not available and fair values are estimated using quoted prices of similar securities or recently executed transactions for the securities. U.S. agency securities, U.S. agency mortgage-backed securities, municipal debt securities, non-U.S. government securities, corporate debt securities, residential and commercial mortgage securities and asset-backed securities are classified as Level 2 investments.
We use independent pricing sources to determine the fair value of securities available for sale in Level 1 and Level 2 of the fair value hierarchy. We use one primary pricing service to provide individual security pricing based on observable market data and receive one quote per security. To ensure securities are appropriately classified in the fair value hierarchy, we review the pricing techniques and methodologies of the independent pricing service and believe that their policies adequately consider market activity, either based on specific transactions for the issue valued or based on modeling of securities with similar credit quality, duration, yield and structure that were recently traded. U.S. agency securities, U.S. agency mortgage-backed securities, municipal debt securities, non-U.S. government securities and corporate debt securities are valued by our primary vendor using recently executed transactions and proprietary models based on observable inputs, such as interest rate spreads, yield curves and credit risk. Residential and commercial mortgage securities and asset-backed securities are valued by our primary vendor using proprietary models based on observable inputs, such as interest rate spreads, prepayment speeds and credit risk. As part of our evaluation of investment prices provided by our primary pricing service, we obtained and reviewed their pricing methodologies which include a description of how each security type is evaluated and priced. We review the reasonableness of prices received from our primary pricing service by comparison to prices obtained from additional pricing sources. We have not made any adjustments to the prices obtained from our primary pricing service.
21

Table of Contents
Essent Group Ltd. and Subsidiaries
Notes to Condensed Consolidated Financial Statements (Unaudited)
Assets and Liabilities Measured at Fair Value
All assets measured at fair value are categorized in the table below based upon the lowest level of significant input to the valuations. All fair value measurements at the reporting date were on a recurring basis.

June 30, 2025 (In thousands) |  | Quoted Prices in Active Markets for Identical Instruments (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3) |  | Total
Recurring fair value measurements |  |  |  |  |  |  |  |
Financial Assets: |  |  |  |  |  |  |  |
U.S. Treasury securities |  | $ | 391,461 |  |  | $ | — |  |  | $ | — |  |  | $ | 391,461 |
U.S. agency mortgage-backed securities |  | — |  |  | 1,172,715 |  |  | — |  |  | 1,172,715 |
Municipal debt securities |  | — |  |  | 600,618 |  |  | — |  |  | 600,618 |
Non-U.S. government securities |  | — |  |  | 62,166 |  |  | — |  |  | 62,166 |
Corporate debt securities |  | — |  |  | 1,908,167 |  |  | — |  |  | 1,908,167 |
Residential and commercial mortgage securities |  | — |  |  | 454,381 |  |  | — |  |  | 454,381 |
Asset-backed securities |  | — |  |  | 796,065 |  |  | — |  |  | 796,065 |
Money market funds |  | 580,964 |  |  | — |  |  | — |  |  | 580,964 |
Total assets at fair value (1) (2) |  | $ | 972,425 |  |  | $ | 4,994,112 |  |  | $ | — |  |  | $ | 5,966,537 |

December 31, 2024 (In thousands) |  | Quoted Prices in Active Markets for Identical Instruments (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3) |  | Total
Recurring fair value measurements |  |  |  |  |  |  |  |
Financial Assets: |  |  |  |  |  |  |  |
U.S. Treasury securities |  | $ | 547,290 |  |  | $ | — |  |  | $ | — |  |  | $ | 547,290 |
U.S. agency mortgage-backed securities |  | — |  |  | 1,125,436 |  |  | — |  |  | 1,125,436 |
Municipal debt securities |  | — |  |  | 583,501 |  |  | — |  |  | 583,501 |
Non-U.S. government securities |  | — |  |  | 69,798 |  |  | — |  |  | 69,798 |
Corporate debt securities |  | — |  |  | 1,783,046 |  |  | — |  |  | 1,783,046 |
Residential and commercial mortgage securities |  | — |  |  | 478,086 |  |  | — |  |  | 478,086 |
Asset-backed securities |  | — |  |  | 631,959 |  |  | — |  |  | 631,959 |
Money market funds |  | 657,605 |  |  | — |  |  | — |  |  | 657,605 |
Total assets at fair value (1) (2) |  | $ | 1,204,895 |  |  | $ | 4,671,826 |  |  | $ | — |  |  | $ | 5,876,721 |

(1)Does not include the fair value of embedded derivatives, which we have accounted for separately as freestanding derivatives and included in other assets or other accrued liabilities in our condensed consolidated balance sheet. See Note 4 for more information.
(2)Does not include certain other invested assets that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient, as applicable accounting standards do not provide for classification within the fair value hierarchy.
22

Table of Contents
Essent Group Ltd. and Subsidiaries
Notes to Condensed Consolidated Financial Statements (Unaudited)
Assets and Liabilities Not Carried at Fair Value
Our senior notes are carried at amortized cost, net of issuance costs, on our condensed consolidated balance sheets. The carrying amount and estimated fair value of our senior notes was $494.3 million and $518.1 million, respectively, as of June 30, 2025. The carrying amount and estimated fair value of our senior notes was $494.0 million and $510.8 million, respectively, as of December 31, 2024. The fair value of our senior notes is estimated based on quoted market prices.
Note 14. Statutory Accounting
Our U.S. insurance subsidiaries prepare statutory-basis financial statements in accordance with the accounting practices prescribed or permitted by their respective state’s department of insurance, which is a comprehensive basis of accounting other than GAAP. We did not use any prescribed or permitted statutory accounting practices (individually or in the aggregate) that resulted in reported statutory surplus or capital that was significantly different from the statutory surplus or capital that would have been reported had National Association of Insurance Commissioners’ statutory accounting practices been followed. The following tables present Essent Guaranty’s statutory net income for the six months ended June 30, 2025 and 2024 as well as statutory surplus and contingency reserve liability at June 30, 2025 and December 31, 2024:

|  | Six Months Ended June 30,
(In thousands) |  | 2025 |  | 2024
Essent Guaranty |  |  |  |
Statutory net income |  | $ | 248,689 |  |  | $ | 261,082 |

|  | June 30, |  | December 31,
(In thousands) |  | 2025 |  | 2024
Essent Guaranty |  |  |  |
Statutory surplus |  | $ | 1,150,106 |  |  | $ | 1,101,894 |
Contingency reserve liability |  | 2,564,039 |  |  | 2,492,487 |

Prior to December 31, 2024, Essent Guaranty reinsured that portion of the risk that is in excess of 25% of the mortgage balance with respect to any loan insured prior to April 1, 2019, after consideration of other reinsurance, to Essent Guaranty of PA, Inc. On December 31, 2024, Essent Guaranty and Essent PA entered into a commutation and release agreement in which all outstanding risk in force assumed by Essent PA was commuted back to Essent Guaranty in exchange for cash. Upon the commutation and release, Essent PA surrendered its insurance license and was no longer an insurance subsidiary of Essent Group Ltd. as of December 31, 2024.
Net income determined in accordance with statutory accounting practices differs from GAAP. In 2025 and 2024, the more significant differences between net income determined under statutory accounting practices and GAAP for Essent Guaranty relate to policy acquisition costs and income taxes. Under statutory accounting practices, policy acquisition costs are expensed as incurred while such costs are capitalized and amortized to expense over the life of the policy under GAAP. We are eligible for a tax deduction, subject to certain limitations for amounts required by state law or regulation to be set aside in statutory contingency reserves when we purchase non-interest-bearing United States Mortgage Guaranty Tax and Loss Bonds (“T&L Bonds”) issued by the Treasury Department. Under statutory accounting practices, this deduction reduces the tax provision recorded by Essent Guaranty and, as a result, increases statutory net income and surplus as compared to net income and equity determined in accordance with GAAP.
At June 30, 2025 and December 31, 2024, the statutory capital of Essent Guaranty, which is defined as the total of statutory surplus and contingency reserves, was in excess of the statutory capital necessary to satisfy its regulatory requirements.
Fannie Mae and Freddie Mac, at the direction of the Federal Housing Finance Agency, maintain coordinated Private Mortgage Insurer Eligibility Requirements, which we refer to as the "PMIERs." The PMIERs represent the standards by which private mortgage insurers are eligible to provide mortgage insurance on loans owned or guaranteed by Fannie Mae and Freddie Mac. The PMIERs include financial strength requirements incorporating a risk-based framework that require approved insurers to have a sufficient level of liquid assets from which to pay claims. The PMIERs also include enhanced operational
23

Table of Contents
Essent Group Ltd. and Subsidiaries
Notes to Condensed Consolidated Financial Statements (Unaudited)
performance expectations and define remedial actions that apply should an approved insurer fail to comply with these requirements. In August 2024, the GSEs issued updates to the PMIERs calculation of Available Assets. The updated PMIERs Available Asset requirements are subject to a phased-in implementation beginning with the quarter ending March 31, 2025, and will become fully effective on September 30, 2026. As of June 30, 2025, Essent Guaranty, our GSE-approved mortgage insurance company, was in compliance with the PMIERs.
Statement of Statutory Accounting Principles No. 58, Mortgage Guaranty Insurance, requires mortgage insurers to establish a special contingency reserve for statutory accounting purposes included in total liabilities equal to 50% of earned premium for that year. This reserve is required to be maintained for a period of 120 months to protect against the effects of adverse economic cycles. After 120 months, the reserve is released to unassigned funds. In the event an insurer’s loss ratio in any calendar year exceeds 35%, however, the insurer may, after regulatory approval, release from its contingency reserves an amount equal to the excess portion of such losses. During the six months ended June 30, 2025, Essent Guaranty increased its contingency reserve by $71.6 million. During the six months ended June 30, 2025 and 2024, Essent Guaranty released contingency reserves of $70.7 million and $43.2 million, respectively, to unassigned funds upon completion of the 120 month holding period.
Under The Insurance Act 1978, as amended, and related regulations of Bermuda (the "Insurance Act"), Essent Re is required to annually prepare statutory financial statements and a statutory financial return in accordance with the financial reporting provisions of the Insurance Act, which is a basis other than GAAP. The Insurance Act also requires that Essent Re maintain minimum share capital of $1 million and must ensure that the value of its general business assets exceeds the amount of its general business liabilities by an amount greater than the prescribed minimum solvency margins and enhanced capital requirement pertaining to its general business. At June 30, 2025, all such requirements were met.
Essent Re's statutory capital and surplus was $1.7 billion as of June 30, 2025 and $1.8 billion as of December 31, 2024. Essent Re's statutory net income was $161.7 million and $170.5 million for the six months ended June 30, 2025 and 2024, respectively. Statutory capital and surplus as of June 30, 2025 and December 31, 2024 and statutory net income in the six months ended June 30, 2025 and 2024 determined in accordance with statutory accounting practices were not significantly different than the amounts determined under GAAP.
24

Table of Contents
Essent Group Ltd. and Subsidiaries
Notes to Condensed Consolidated Financial Statements (Unaudited)
Note 15. 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 and 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.
As of June 30, 2025 and December 31, 2024, all goodwill is assigned to our Title operating segment, which is included in our Corporate & Other category. Goodwill was $48.8 million at both June 30, 2025 and December 31, 2024. Goodwill decreased by $1.1 million and $1.2 million during the three and six months ended June 30, 2024, respectively, as a result of measurement period adjustments.
Segment Information: Profit & Loss
The following table reconciles the components of reportable segment profit and loss to consolidated profit and loss for the periods presented. 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 in our Form 10-K. We do not have inter-segment transactions.
25

Table of Contents
Essent Group Ltd. and Subsidiaries
Notes to Condensed Consolidated Financial Statements (Unaudited)

|  | Three Months Ended June 30, 2025 |  | Three Months Ended June 30, 2024
(In thousands) |  | Mortgage Insurance |  | Corporate & Other |  | Consolidated |  | Mortgage Insurance |  | Corporate & Other |  | Consolidated
Revenues: |  |  |  |  |  |  |  |  |  |  |  |
Net premiums earned |  | $ | 233,907 |  |  | $ | 14,902 |  |  | $ | 248,809 |  |  | $ | 235,258 |  |  | $ | 16,633 |  |  | $ | 251,891 |
Net investment income |  | 48,892 |  |  | 10,397 |  |  | 59,289 |  |  | 46,708 |  |  | 9,378 |  |  | 56,086 |
Realized investment losses, net |  | (124) |  |  | (5) |  |  | (129) |  |  | (1,156) |  |  | (8) |  |  | (1,164) |
Income (loss) from other invested assets |  | 3,619 |  |  | 847 |  |  | 4,466 |  |  | 1,633 |  |  | (2,052) |  |  | (419) |
Other income |  | 3,523 |  |  | 3,185 |  |  | 6,708 |  |  | 4,662 |  |  | 1,886 |  |  | 6,548 |
Total revenues |  | 289,817 |  |  | 29,326 |  |  | 319,143 |  |  | 287,105 |  |  | 25,837 |  |  | 312,942 |
Losses and expenses: |  |  |  |  |  |  |  |  |  |  |  |
Provision (benefit) for losses and LAE |  | 15,359 |  |  | 1,696 |  |  | 17,055 |  |  | (1,225) |  |  | 891 |  |  | (334) |
Compensation and benefits |  | 16,793 |  |  | 13,926 |  |  | 30,719 |  |  | 17,756 |  |  | 15,608 |  |  | 33,364 |
Premium and other taxes |  | 6,000 |  |  | 495 |  |  | 6,495 |  |  | 5,568 |  |  | 370 |  |  | 5,938 |
Ceding commission |  | (6,910) |  |  | — |  |  | (6,910) |  |  | (5,715) |  |  | — |  |  | (5,715) |
Other underwriting and operating expenses |  | 11,128 |  |  | 21,333 |  |  | 32,461 |  |  | 10,787 |  |  | 21,828 |  |  | 32,615 |
Net operating expenses before allocations |  | 27,011 |  |  | 35,754 |  |  | 62,765 |  |  | 28,396 |  |  | 37,806 |  |  | 66,202 |
Corporate expense allocations |  | 9,241 |  |  | (9,241) |  |  | — |  |  | 10,840 |  |  | (10,840) |  |  | — |
Operating expenses after allocations |  | 36,252 |  |  | 26,513 |  |  | 62,765 |  |  | 39,236 |  |  | 26,966 |  |  | 66,202 |
Interest expense |  | — |  |  | 8,148 |  |  | 8,148 |  |  | — |  |  | 7,849 |  |  | 7,849 |
Income (loss) before income taxes |  | $ | 238,206 |  |  | $ | (7,031) |  |  | $ | 231,175 |  |  | $ | 249,094 |  |  | $ | (9,869) |  |  | $ | 239,225 |
Loss ratio (1) |  | 6.6 | % |  |  |  |  |  | (0.5) | % |  |  |  |
Expense ratio (2) |  | 15.5 | % |  |  |  |  |  | 16.7 | % |  |  |  |
Combined ratio |  | 22.1 | % |  |  |  |  |  | 16.2 | % |  |  |  |
(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. |  |  |  |

26

Table of Contents
Essent Group Ltd. and Subsidiaries
Notes to Condensed Consolidated Financial Statements (Unaudited)

|  | Six Months Ended June 30, 2025 |  | Six Months Ended June 30, 2024
(In thousands) |  | Mortgage Insurance |  | Corporate & Other |  | Consolidated |  | Mortgage Insurance |  | Corporate & Other |  | Consolidated
Revenues: |  |  |  |  |  |  |  |  |  |  |  |
Net premiums earned |  | $ | 467,537 |  |  | $ | 27,120 |  |  | $ | 494,657 |  |  | $ | 465,564 |  |  | $ | 31,917 |  |  | $ | 497,481 |
Net investment income |  | 96,522 |  |  | 20,977 |  |  | 117,499 |  |  | 90,909 |  |  | 17,262 |  |  | 108,171 |
Realized investment losses, net |  | (225) |  |  | (85) |  |  | (310) |  |  | (2,296) |  |  | (8) |  |  | (2,304) |
Income (loss) from other invested assets |  | 6,828 |  |  | 5,046 |  |  | 11,874 |  |  | 1,114 |  |  | (3,448) |  |  | (2,334) |
Other income |  | 8,024 |  |  | 4,957 |  |  | 12,981 |  |  | 6,562 |  |  | 3,723 |  |  | 10,285 |
Total revenues |  | 578,686 |  |  | 58,015 |  |  | 636,701 |  |  | 561,853 |  |  | 49,446 |  |  | 611,299 |
Losses and expenses: |  |  |  |  |  |  |  |  |  |  |  |
Provision (benefit) for losses and LAE |  | 46,081 |  |  | 2,261 |  |  | 48,342 |  |  | 8,112 |  |  | 1,467 |  |  | 9,579 |
Compensation and benefits |  | 36,683 |  |  | 33,728 |  |  | 70,411 |  |  | 36,463 |  |  | 31,610 |  |  | 68,073 |
Premium and other taxes |  | 11,574 |  |  | 1,824 |  |  | 13,398 |  |  | 11,176 |  |  | 496 |  |  | 11,672 |
Ceding commission |  | (13,418) |  |  | — |  |  | (13,418) |  |  | (11,268) |  |  | — |  |  | (11,268) |
Other underwriting and operating expenses |  | 22,765 |  |  | 40,733 |  |  | 63,498 |  |  | 22,252 |  |  | 42,313 |  |  | 64,565 |
Net operating expenses before allocations |  | 57,604 |  |  | 76,285 |  |  | 133,889 |  |  | 58,623 |  |  | 74,419 |  |  | 133,042 |
Corporate expense allocations |  | 22,255 |  |  | (22,255) |  |  | — |  |  | 22,458 |  |  | (22,458) |  |  | — |
Operating expenses after allocations |  | 79,859 |  |  | 54,030 |  |  | 133,889 |  |  | 81,081 |  |  | 51,961 |  |  | 133,042 |
Interest expense |  | — |  |  | 16,296 |  |  | 16,296 |  |  | — |  |  | 15,711 |  |  | 15,711 |
Income (loss) before income taxes |  | $ | 452,746 |  |  | $ | (14,572) |  |  | $ | 438,174 |  |  | $ | 472,660 |  |  | $ | (19,693) |  |  | $ | 452,967 |
Loss ratio (1) |  | 9.9 | % |  |  |  |  |  | 1.7 | % |  |  |  |
Expense ratio (2) |  | 17.1 | % |  |  |  |  |  | 17.4 | % |  |  |  |
Combined ratio |  | 26.9 | % |  |  |  |  |  | 19.2 | % |  |  |  |
(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. |  |  |  |

27

Table of Contents
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
The following discussion should be read together with the “Selected Financial Data” and our audited consolidated financial statements and related notes included in our Annual Report on Form 10-K as of and for the year ended December 31, 2024 as filed with the Securities and Exchange Commission and referred to herein as the “Annual Report,” and our condensed consolidated financial statements and related notes as of and for the three and six months ended June 30, 2025 included in Part I, Item 1 of this Quarterly Report on Form 10-Q, which we refer to as the “Quarterly Report.” In addition to historical information, this discussion contains forward-looking statements that involve risks, uncertainties and assumptions that could cause actual results to differ materially from management’s expectations. Factors that could cause such differences are discussed in the sections entitled “Special Note Regarding Forward-Looking Statements” in this Quarterly Report and Part I, Item 1A “Risk Factors” in our Annual Report and Part II, Item 1A “Risk Factors” in this Quarterly Report. We are not undertaking any obligation to update any forward-looking statements or other statements we may make in the following discussion or elsewhere in this document even though these statements may be affected by events or circumstances occurring after the forward-looking statements or other statements were made.
Overview
Essent Group Ltd. (collectively with its subsidiaries, “Essent”) serves the housing finance industry by offering private mortgage insurance and reinsurance, title insurance and settlement services to mortgage lenders, borrowers and investors to support homeownership. We have one reportable segment: Mortgage Insurance.
Essent Guaranty, Inc., our wholly-owned mortgage insurance subsidiary which we refer to as "Essent Guaranty," is approved by Fannie Mae and Freddie Mac and licensed to write coverage in all 50 states and the District of Columbia. Our mortgage insurance operations generated new insurance written, or NIW, of approximately $12.5 billion and $22.5 billion for the three and six months ended June 30, 2025, respectively, compared to approximately $12.5 billion and $20.8 billion for the three and six months ended June 30, 2024, respectively. The financial strength ratings of Essent Guaranty are A2 with a stable outlook by Moody’s Investors Service (“Moody's”) (up from A3 with a positive outlook as a result of an upgrade by Moody’s announced on August 6, 2025), A- with a stable outlook by S&P Global Ratings (“S&P”) and A (Excellent) with a stable outlook by A.M. Best Ratings Services, Inc. ("AM Best").
Through our wholly-owned Bermuda-based subsidiary, Essent Reinsurance Ltd., which we refer to as "Essent Re", we reinsure U.S. mortgage risk in the GSE credit risk transfer market and provide underwriting consulting services to third-party reinsurers. As of June 30, 2025, Essent Re provided insurance or reinsurance relating to GSE risk share and other reinsurance transactions covering approximately $2.3 billion of risk. Essent Re also reinsures Essent Guaranty’s NIW under a quota share reinsurance agreement. The insurer financial strength ratings of Essent Re are A- with a stable outlook by S&P and A (Excellent) with a stable outlook by AM Best.
We also offer title insurance products both directly and through a network of title insurance agents, as well as title and settlement services. This operating segment was established upon our acquisitions of Agents National Title Insurance Company (renamed Essent Title Insurance, Inc. effective January 1, 2025), a title insurance underwriter, and Boston National Title, a national title agency, which was effective July 1, 2023. Title insurance operations are included in the Corporate & Other category.
We have a highly experienced, talented team with 521 employees as of June 30, 2025. Our holding company and reinsurance business are domiciled in Bermuda. Our U.S. mortgage insurance and title insurance operations are headquartered in Radnor, Pennsylvania.
Current Developments
The Federal Reserve increased the target federal funds rate several times during 2022 and 2023 in an effort to reduce consumer price inflation. As a result of progress on inflation, the Federal Reserve has reduced the target federal funds rate by 100 basis points since September 2024. Mortgage interest rates, however, remain elevated, which has reduced home buying and mortgage refinance activity resulting in lower volumes of mortgage originations, NIW and title insurance and settlement service transactions. Higher interest rates have also resulted in increases in our net investment income generated by our investment portfolio and the persistency of our mortgage insurance in force.
On September 26, 2024, Hurricane Helene made landfall and caused property damage in certain counties in Florida, Georgia, South Carolina, North Carolina, Tennessee and Virginia. On October 9, 2024, Hurricane Milton made landfall, causing damage in certain counties in Florida. Based on prior industry experience, we expect the ultimate number of hurricane-related defaults that result in claims will be less than the default-to-claim experience of non-hurricane-related defaults. The impact on our reserves in future periods will be dependent upon the performance of the hurricane-related defaults and our
28

Table of Contents
expectations for the amount of ultimate losses on these delinquencies.
In January 2025, several wildfires caused property damage in Southern California. As of June 30, 2025 our insurance in force in areas with Federal Emergency Management Agency (FEMA) disaster declarations due to these wildfires was less than 0.1% of our total insurance in force. These wildfires are not expected to have a material impact our reserves.
Legislative and Regulatory Developments
Our results are significantly impacted by, and our future success may be affected by, legislative and regulatory developments affecting the housing finance industry. See Part I, Item 1 “Business—Regulation” and Part II, Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Legislative and Regulatory Developments” in our Annual Report for a discussion of the laws and regulations to which we are subject as well as legislative and regulatory developments affecting the housing finance industry.
U.S. Tax Reform
On August 16, 2022, the “Inflation Reduction Act of 2022” (“IRA”), was enacted, which, among other things, provides for a corporate alternative minimum tax and an excise tax on corporate stock repurchases. Based on our current analysis of the provisions, we do not expect the IRA to have a material impact on our financial position or results of operations. As the IRS issues additional guidance related to the IRA, we will evaluate any potential impact to our consolidated financial statements.
On July 4, 2025, a budget reconciliation package known as the One Big Beautiful Bill Act of 2025 (“OBBBA”) was enacted which includes both tax and non-tax provisions. Based on our current analysis of the provisions, we do not expect the OBBBA to have a material impact on our financial position or results of operations.
Bermuda Corporate Income Tax
On December 27, 2023, the Government of Bermuda enacted the Corporate Income Tax Act 2023 (CIT). Starting January 1, 2025, the CIT will result in a new 15% corporate income tax on in-scope entities that are resident in Bermuda or that have a Bermuda permanent establishment, without regard to any assurances that had previously been given pursuant to the Exempted Undertakings Tax Protection Act 1966.
The CIT also includes various transitional provisions and elections that we are in the process of evaluating. In particular, we believe that, based on their current structure and operations, our Bermuda companies will be eligible to elect a five-year “limited international presence” exemption under the CIT. We intend to make this election within the timeframe required under Bermuda law, and therefore do not expect the CIT to have a material impact upon our effective tax rate until we no longer meet the exemption criteria, or January 1, 2030, the fifth anniversary of the inception date of the tax, whichever may occur sooner. The exemption criteria are subject to interpretation of existing Bermuda law, as well as any related new regulations that may be issued by the Government of Bermuda. No assurances can be made that we will continue meeting such criteria for the entire five-year period.
Factors Affecting Our Results of Operations
Net Premiums Written and Earned
Premiums associated with our U.S. mortgage insurance business are based on mortgage insurance in force, or IIF, during all or a portion of a period. A change in the average IIF during a period causes premiums to increase or decrease as compared to prior periods. Average net premium rates in effect during a given period will also cause premiums to differ when compared to earlier periods. IIF at the end of a reporting period is a function of the IIF at the beginning of such reporting period plus NIW less policy cancellations (including claims paid) during the period. As a result, premiums are generally influenced by:
•NIW, which is the aggregate principal amount of the new mortgages that are insured during a period. Many factors affect NIW, including, among others, the volume of low down payment home mortgage originations, the competition to provide credit enhancement on those mortgages, the number of customers who have approved us to provide mortgage insurance and changes in our NIW from certain customers;
29

Table of Contents
•Cancellations of our insurance policies, which are impacted by payments on mortgages, home price appreciation, or refinancings, which in turn are affected by mortgage interest rates. Cancellations are also impacted by the levels of claim payments and rescissions;
•Premium rates, which represent the amount of the premium due as a percentage of IIF. Premium rates are based on the risk characteristics of the loans insured, the percentage of coverage on the loans, competition from other mortgage insurers and general industry conditions; and
•Premiums ceded or assumed under reinsurance arrangements. See Note 4 to our condensed consolidated financial statements.
Mortgage insurance premiums are paid either on a monthly installment basis (“monthly premiums”), in a single payment at origination (“single premiums”), or in some cases as an annual premium. For monthly premiums, we receive a monthly premium payment which is recorded as net premiums earned in the month the coverage is provided. Monthly premium payments are based on the original mortgage amount rather than the amortized loan balance. Net premiums written may be in excess of net premiums earned due to single premium policies. For single premiums, we receive a single premium payment at origination, which is recorded as “unearned premium” and earned over the estimated life of the policy, which ranges from 36 to 156 months depending on the term of the underlying mortgage and loan-to-value ratio at date of origination. If single premium policies are cancelled due to repayment of the underlying loan and the premium is non-refundable, the remaining unearned premium balance is immediately recognized as earned premium revenue. Substantially all of our single premium policies in force as of June 30, 2025 were non-refundable. Premiums collected on annual policies are recognized as net premiums earned on a straight-line basis over the year of coverage. For the six months ended June 30, 2025 and 2024, monthly premium policies comprised 99% and 98% of our NIW, respectively.
Premiums associated with our GSE and other risk share transactions are based on the level of risk in force and premium rates on the transactions.
Title insurance premiums are based on the number of title insurance policies issued and generally recognized as income at the transaction closing date which approximates the policy effective date.
Persistency and Business Mix
The percentage of IIF that remains on our books after any 12-month period is defined as our persistency rate. Because our insurance premiums are earned over the life of a policy, higher persistency rates can have a significant impact on our profitability. The persistency rate on our portfolio was 85.8% at June 30, 2025. Generally, higher prepayment speeds lead to lower persistency.
Prepayment speeds and the relative mix of business between single premium policies and monthly premium policies also impact our profitability. Our premium rates include certain assumptions regarding repayment or prepayment speeds of the mortgages. Because premiums are paid at origination on single premium policies, assuming all other factors remain constant, if loans are prepaid earlier than expected, our profitability on these loans is likely to increase and, if loans are repaid slower than expected, our profitability on these loans is likely to decrease. By contrast, if monthly premium loans are repaid earlier than anticipated, our premium earned with respect to those loans and therefore our profitability declines. Currently, the expected return on single premium policies is less than the expected return on monthly policies.
Net Investment Income
Our investment portfolio was predominantly comprised of investment-grade fixed income securities and money market funds as of June 30, 2025. The principal factors that influence investment income are the size of the investment portfolio and the yield on individual securities. As measured by amortized cost (which excludes changes in fair market value, such as from changes in interest rates), the size of our investment portfolio is mainly a function of increases in capital and cash generated from or used in operations which is impacted by net premiums received, investment earnings, net claim payments and expenses. Realized gains and losses are a function of the difference between the amount received on the sale of a security and the security’s amortized cost, as well as any provision for credit losses or impairments recognized in earnings. The amount received on the sale of fixed income securities is affected by the coupon rate of the security compared to the yield of comparable securities at the time of sale.
30

Table of Contents
Income from Other Invested Assets
As part of our overall investment strategy, we also allocate a relatively small percentage of our portfolio to limited partnership investments in real estate, consumer credit and traditional venture capital and private equity investments. The results of these investing activities are reported in income from other invested assets. These investments are generally accounted for under the equity method or fair value using net asset value (or its equivalent) as a practical expedient. 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. Fluctuations in the fair value of these entities may increase the volatility of the Company’s reported results of operations.
Other Income
Other income includes revenues associated with underwriting consulting services to third-party reinsurers, title settlement services and contract underwriting services. The level of these revenues are dependent upon the number of customers who have engaged us for these services. Revenue from underwriting consulting services to third-party reinsurers is also dependent upon the level of premiums associated with the transactions underwritten for these customers. Revenue from title settlement services and contract underwriting revenue are also dependent upon the number of loans underwritten for these customers.
In connection with the acquisition of our mortgage insurance platform, we entered into a services agreement with Triad Guaranty Inc. and its wholly-owned subsidiary, Triad Guaranty Insurance Corporation, which we refer to collectively as “Triad,” to provide certain information technology maintenance and development and customer support-related services. In return for these services, we receive a flat monthly fee which is recorded in other income. During 2023, Triad entered into a three year renewal and extended the services agreement through November 2026.
As more fully described in Note 4 to our condensed consolidated financial statements, the premiums ceded under certain reinsurance contracts with unaffiliated third parties varies based on changes in market interest rates. Under GAAP, these contracts contain embedded derivatives that are accounted for separately as freestanding derivatives. The change in the fair value of the embedded derivatives is reported in earnings and included in other income.
Provision for Losses and Loss Adjustment Expenses
The provision for losses and loss adjustment expenses reflects the current expense that is recorded within a particular period to reflect actual and estimated loss payments that we believe will ultimately be made as a result of insured loans that are in default.
Losses incurred are generally affected by:
•the overall state of the economy, which broadly affects the likelihood that borrowers may default on their loans and have the ability to cure such defaults;
•changes in housing values, which affect our ability to mitigate our losses through the sale of properties with loans in default as well as borrower willingness to continue to make mortgage payments when the value of the home is below or perceived to be below the mortgage balance;
•the product mix of IIF, with loans having higher risk characteristics generally resulting in higher defaults and claims;
•the size of loans insured, with higher average loan amounts tending to increase losses incurred;
•the loan-to-value ratio, with higher average loan-to-value ratios tending to increase losses incurred;
•the percentage of coverage on insured loans, with deeper average coverage tending to increase losses incurred;
•credit quality of borrowers, including higher debt-to-income ratios and lower FICO scores, which tend to increase incurred losses;
•the level and amount of reinsurance coverage maintained with third parties;
31

Table of Contents
•the rate at which we rescind policies. Because of tighter underwriting standards generally in the mortgage lending industry and terms set forth in our master policy, we expect that our level of rescission activity will be lower than rescission activity seen in the mortgage insurance industry for vintages originated prior to the financial crisis; and
•the distribution of claims over the life of a book. As of June 30, 2025, 41% of our IIF relates to business written since January 1, 2023 and was less than three years old. As a result, based on historical industry performance, we expect the number of defaults and claims we experience, as well as our provision for losses and loss adjustment expenses ("LAE"), to increase as our portfolio seasons. See “— Mortgage Insurance Earnings and Cash Flow Cycle” below.
We establish loss reserves for delinquent loans when we are notified that a borrower has missed at least two consecutive monthly payments (“Case Reserves”), as well as estimated reserves for defaults that may have occurred but not yet been reported to us (“IBNR Reserves”). We also establish reserves for the associated loss adjustment expenses, consisting of the estimated cost of the claims administration process, including legal and other fees. Using both internal and external information, we establish our reserves based on the likelihood that a default will reach claim status and estimated claim severity. See Part II, Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Critical Accounting Policies” included in our Annual Report for further information.
Based upon our experience and industry data, claims incidence for mortgage insurance is generally highest in the third through sixth years after loan origination. As of June 30, 2025, 41% of our IIF relates to business written since January 1, 2023 and was less than three years old. Although the claims experience on new insurance written by us to date has been favorable, we expect incurred losses and claims to increase as a greater amount of this book of insurance reaches its anticipated period of highest claim frequency. The actual default rate and the average reserve per default that we experience as our portfolio matures is difficult to predict and is dependent on the specific characteristics of our current in-force book (including the credit score of the borrower, the loan-to-value ratio of the mortgage, geographic concentrations, etc.), as well as the profile of new business we write in the future. In addition, the default rate and the average reserve per default will be affected by future macroeconomic factors such as housing prices, interest rates and employment.
The Federal Reserve increased the target federal funds rate several times during 2022 and 2023 in an effort to reduce consumer price inflation. As a result of subsequent reductions in inflation rates, the Federal Reserve has reduced the target federal funds rate by 100 basis points since September 2024. Mortgage interest rates, however, have remained elevated, which may lower home sale activity and affect the options available to delinquent borrowers. It is reasonably possible that our estimate of losses could change in the near term as a result of changes in the economic environment, the impact of elevated levels of consumer price inflation on home sale activity, housing inventory, and home prices.
On September 26, 2024, Hurricane Helene made landfall and caused property damage in certain counties in Florida, Georgia, South Carolina, North Carolina, Tennessee and Virginia. On October 9, 2024, Hurricane Milton made landfall, causing damage in certain counties in Florida. Loans in default at December 31, 2024 included 2,119 defaults that we identified as hurricane-related defaults. Based on prior industry experience, we expect the ultimate number of hurricane-related defaults that result in claims will be less than the default-to-claim experience of non-hurricane-related defaults. In addition, under our master policy, our exposure may be limited on hurricane-related claims. For example, we are permitted to exclude a claim entirely where damage to the property underlying a mortgage was the proximate cause of the default and adjust a claim where the property underlying a mortgage in default is subject to unrestored physical damage. Accordingly, when establishing our loss reserves as of December 31, 2024, we applied a lower estimated claim rate to new default notices received in the fourth quarter of 2024 from the affected areas than the claim rate we apply to other notices in our default inventory. The impact on our reserves in future periods will be dependent upon the performance of the hurricane-related defaults and our expectations for the amount of ultimate losses on these delinquencies. As of June 30, 2025, the reserves established for the Hurricane Milton and Helene defaults are materially unchanged from December 31, 2024 as this amount continues to be our best estimate of the ultimate losses to be incurred for claims associated with those defaults.
In January 2025, several wildfires caused property damage in Southern California. As of June 30, 2025, our insurance in force in areas with Federal Emergency Management Agency ("FEMA") disaster declarations due to these wildfires was less than 0.1% of our total insurance in force. These wildfires are not expected to have a material impact on our reserves.
As more fully described in Note 4 to our condensed consolidated financial statements, at June 30, 2025, we had approximately $1.4 billion of excess of loss reinsurance covering NIW from January 1, 2018 through August 31, 2019 and August 1, 2020 through December 31, 2024 and quota share reinsurance on portions of our NIW effective September 1, 2019 through December 31, 2020 and January 1, 2022 through December 31, 2025. The impact on our reserves in future periods will be dependent upon the amount of delinquent notices received from loan servicers, the performance of defaults and our expectations for the amount of ultimate losses on these delinquencies.
32

Table of Contents
Title Insurance
Our reserve for title insurance claim losses includes reserves for known claims as well as for losses that have been incurred but not yet reported to us (“IBNR”), net of recoupments. We reserve for each known claim based on our review of the estimated amount of the claim and the costs required to settle the claim. Reserves for IBNR claims are estimates that are established at the time the premium revenue is recognized and are based upon historical experience and other factors, including industry trends, claim loss history, legal environment, geographic considerations, and the types of policies written. We also reserve for losses arising from closing and disbursement functions due to fraud or operational error.
Although claims against title insurance policies can be reported relatively soon after the policy has been issued, claims may also be reported many years later. By their nature, title claims are often complex, vary greatly in dollar amounts and are affected by economic and market conditions, as well as the legal environment existing at the time of settlement of the claims. Estimating future title loss payments is difficult because of the complex nature of title claims, the long periods of time over which claims are paid, significantly varying dollar amounts of individual claims and other factors.
Reinsurance
We use reinsurance to provide protection against adverse loss experience in our mortgage insurance and title insurance portfolios and to expand our capital sources. When we enter into a reinsurance agreement, the reinsurer receives a premium and, in exchange, agrees to insure an agreed upon portion of incurred losses. These arrangements have the impact of reducing our earned premiums, but also reduce our mortgage insurance risk in force (RIF), which provides capital relief, and may include capital relief under the PMIERs financial strength requirements. Our incurred losses are reduced by any incurred losses ceded in accordance with the reinsurance agreement. For additional information regarding reinsurance, see Note 4 to our condensed consolidated financial statements.
Other Underwriting and Operating Expenses
Our other underwriting and operating expenses include components that are substantially fixed, as well as expenses that generally increase or decrease in line with the level of mortgage insurance NIW, title insurance policies issued and settlement services provided.
Our most significant expense is compensation and benefits for our employees, which represented 49% and 53% of other underwriting and operating expenses for the three and six months ended June 30, 2025, respectively, compared to 50% and 51% of other underwriting and operating expenses for the three and six months ended June 30, 2024, respectively. Compensation and benefits expense includes base and incentive cash compensation, stock compensation expense, benefits and payroll taxes.
Underwriting and other expenses include legal, consulting, other professional fees, premium taxes, travel, entertainment, marketing, licensing, supplies, hardware, software, rent, utilities, depreciation and amortization and other expenses. We anticipate that as we continue to add new customers and increase our mortgage insurance IIF, title insurance policies issued and settlement services provided, our expenses will also continue to increase.
Other underwriting and operating expenses also include premiums retained by agents, which represent the portion of title insurance premiums retained by our third-party agents pursuant to the terms of their respective agency contracts and are recorded as an expense. The percentage of premiums retained by agents vary according to regional differences in real estate closing practices and state regulations.
Interest Expense
Through June 30, 2024, interest expense was incurred as a result of borrowings under our secured credit facility (the “Existing Credit Facility”). Borrowings accrued interest at a floating rate tied to a standard short-term borrowing index, selected at the Company’s option, plus an applicable margin. On July 1, 2024, we completed an underwritten public offering of $500 million of 6.25% Senior Notes due in 2029 and used approximately $425 million of the net proceeds to repay all of the borrowings outstanding under the term loan portion of the Existing Credit Facility. Concurrently, on July 1, 2024, the Fourth Amended and Restated Credit Agreement (the “Revolving Credit Agreement”) became effective providing for an effective increase in the Company’s revolving credit facility borrowing capacity from $400 million to $500 million. See Note 6 to our condensed consolidated financial statements.
33

Table of Contents
Income Taxes
Income taxes are incurred based on the amount of earnings or losses generated in the jurisdictions in which we operate and the applicable tax rates and regulations in those jurisdictions. Our U.S. insurance subsidiaries are generally not subject to income taxes in most states in which we operate; however, our non-insurance subsidiaries are subject to state income taxes. In lieu of state income taxes, our insurance subsidiaries pay premium taxes that are recorded in other underwriting and operating expenses.
Essent Group Ltd. ("Essent Group") and its wholly-owned subsidiary, Essent Re, are domiciled in Bermuda, and their income is currently not subject to a corporate income tax. See "—Legislative and Regulatory Developments—Bermuda Corporate Income Tax" above. Under a quota share reinsurance agreement, Essent Re reinsures 25% of Essent Guaranty’s NIW through December 31, 2020 and 35% of Essent Guaranty’s NIW after December 31, 2020. In April 2025, Essent Guaranty and Essent Re agreed to increase the quota share reinsurance coverage of Essent Guaranty’s NIW provided by Essent Re to 50% effective January 1, 2025. The quota share reinsurance coverage provided by Essent Re for Essent Guaranty’s NIW prior to January 1, 2025 will continue at the quota share percentage in effect at the time NIW was first ceded. Essent Re also provides insurance and reinsurance to Freddie Mac and Fannie Mae.
The amount of income tax expense or benefit recorded in future periods will be dependent on the jurisdictions in which we operate and the tax laws and regulations in effect.
Mortgage Insurance Earnings and Cash Flow Cycle
In general, the majority of any underwriting profit (premium revenue minus losses) that a book generates occurs in the early years of the book, with the largest portion of any underwriting profit realized in the first year. Subsequent years of a book generally result in modest underwriting profit or underwriting losses. This pattern generally occurs because relatively few of the claims that a book will ultimately experience typically occur in the first few years of the book, when premium revenue is highest, while subsequent years are affected by declining premium revenues, as the number of insured loans decreases (primarily due to loan prepayments), and by increasing losses.
Key Performance Indicators
Insurance In Force
As discussed above, mortgage insurance premiums we collect and earn are generated based on our IIF, which is a function of our NIW and cancellations. The following table includes a summary of the change in our IIF for the three and six months ended June 30, 2025 and 2024 for our U.S. mortgage insurance portfolio. In addition, this table includes our RIF at the end of each period.

|  | Three Months Ended June 30, |  | Six Months Ended June 30,
(In thousands) |  | 2025 |  | 2024 |  | 2025 |  | 2024
IIF, beginning of period |  | $ | 244,692,492 |  |  | $ | 239,078,262 |  |  | $ | 243,645,423 |  |  | $ | 239,078,262 |
NIW - Flow |  | 12,544,731 |  |  | 12,503,125 |  |  | 22,490,067 |  |  | 20,826,669 |
Cancellations |  | (10,439,604) |  |  | (10,912,222) |  |  | (19,337,871) |  |  | (19,235,766) |
IIF, end of period |  | $ | 246,797,619 |  |  | $ | 240,669,165 |  |  | $ | 246,797,619 |  |  | $ | 240,669,165 |
Average IIF during the period |  | $ | 245,747,813 |  |  | $ | 239,538,571 |  |  | $ | 244,902,942 |  |  | $ | 239,151,136 |
RIF, end of period |  | $ | 56,811,096 |  |  | $ | 55,521,538 |  |  | $ | 56,811,096 |  |  | $ | 55,521,538 |

34

Table of Contents
The following is a summary of our IIF at June 30, 2025 by vintage:

($ in thousands) |  | $ |  | %
2025 (through June 30) |  | $ | 21,981,050 |  |  | 8.9 | %
2024 |  | 41,260,566 |  |  | 16.7 |
2023 |  | 38,646,995 |  |  | 15.7 |
2022 |  | 48,421,149 |  |  | 19.6 |
2021 |  | 45,343,252 |  |  | 18.4 |
2020 |  | 31,595,082 |  |  | 12.8 |
2019 and prior |  | 19,549,525 |  |  | 7.9 |
|  | $ | 246,797,619 |  |  | 100.0 | %

Average Net Premium Rate
Our average net premium rate is calculated by dividing net premiums earned for the U.S. mortgage insurance portfolio by average insurance in force for the period and is dependent on a number of factors, including: (1) the risk characteristics and average coverage on the mortgages we insure; (2) the mix of monthly premiums compared to single premiums in our portfolio; (3) cancellations of non-refundable single premiums during the period; (4) changes to our pricing for NIW; and (5) premiums ceded under third-party reinsurance agreements. The following table presents the average net premium rate for our U.S. mortgage insurance portfolio:

|  | Three Months Ended June 30, |  | Six Months Ended June 30,
|  | 2025 |  | 2024 |  | 2025 |  | 2024
Base average premium rate |  | 0.41 | % |  | 0.41 | % |  | 0.41 | % |  | 0.41 | %
Single premium cancellations |  | — |  |  | — |  |  | — |  |  | — |
Gross average premium rate |  | 0.41 |  |  | 0.41 |  |  | 0.41 |  |  | 0.41 |
Ceded premiums |  | (0.05) |  |  | (0.05) |  |  | (0.05) |  |  | (0.05) |
Net average premium rate |  | 0.36 | % |  | 0.36 | % |  | 0.36 | % |  | 0.36 | %

The continued use of third-party reinsurance along with changes to the level of future cancellations of non-refundable single premium policies and mix of IIF may impact our average net premium rate in future periods.
Persistency Rate
The measure for assessing the impact of policy cancellations on IIF is our persistency rate, defined as the percentage of IIF that remains on our books after any twelve-month period. See additional discussion regarding the impact of the persistency rate on our performance in “— Factors Affecting Our Results of Operations — Persistency and Business Mix.”
Risk-to-Capital
The risk-to-capital ratio has historically been used as a measure of capital adequacy in the U.S. mortgage insurance industry and is calculated as a ratio of net risk in force to statutory capital. Net risk in force represents total risk in force net of reinsurance ceded and net of exposures on policies for which loss reserves have been established. Statutory capital for our U.S. insurance companies is computed based on accounting practices prescribed or permitted by the Pennsylvania Insurance Department. See additional discussion in “— Liquidity and Capital Resources — Insurance Company Capital.”
As of June 30, 2025, the net risk in force for Essent Guaranty was $34.0 billion and its statutory capital was $3.7 billion, resulting in a risk-to-capital ratio of 9.2:1. The amount of capital required varies in each jurisdiction in which we operate; however, generally, the maximum permitted risk-to-capital ratio is 25.0 to 1. State insurance regulators have continued to examine their respective capital rules to determine whether, in light of the 2007-2008 financial crisis, changes are needed to more accurately assess mortgage insurers' ability to withstand stressful economic conditions. As a result, the capital metrics under which they assess and measure capital adequacy may change in the future. Independent of the state regulator and GSE capital requirements, management continually assesses the risk of our insurance portfolio and current market and economic conditions to determine the appropriate levels of capital to support our business.
35

Table of Contents
Results of Operations: Consolidated
The following table sets forth our consolidated results of operations for the periods indicated:

|  | Three Months Ended June 30, |  | Six Months Ended June 30,
(In thousands) |  | 2025 |  | 2024 |  | 2025 |  | 2024
Revenues: |  |  |  |  |  |  |  |
Net premiums written |  | $ | 241,488 |  |  | $ | 245,566 |  |  | $ | 479,759 |  |  | $ | 484,106 |
Decrease in unearned premiums |  | 7,321 |  |  | 6,325 |  |  | 14,898 |  |  | 13,375 |
Net premiums earned |  | 248,809 |  |  | 251,891 |  |  | 494,657 |  |  | 497,481 |
Net investment income |  | 59,289 |  |  | 56,086 |  |  | 117,499 |  |  | 108,171 |
Realized investment gains (losses), net |  | (129) |  |  | (1,164) |  |  | (310) |  |  | (2,304) |
Income (loss) from other invested assets |  | 4,466 |  |  | (419) |  |  | 11,874 |  |  | (2,334) |
Other income |  | 6,708 |  |  | 6,548 |  |  | 12,981 |  |  | 10,285 |
Total revenues |  | 319,143 |  |  | 312,942 |  |  | 636,701 |  |  | 611,299 |
Losses and expenses: |  |  |  |  |  |  |  |
Provision (benefit) for losses and LAE |  | 17,055 |  |  | (334) |  |  | 48,342 |  |  | 9,579 |
Other underwriting and operating expenses |  | 62,765 |  |  | 66,202 |  |  | 133,889 |  |  | 133,042 |
Interest expense |  | 8,148 |  |  | 7,849 |  |  | 16,296 |  |  | 15,711 |
Total losses and expenses |  | 87,968 |  |  | 73,717 |  |  | 198,527 |  |  | 158,332 |
Income before income taxes |  | 231,175 |  |  | 239,225 |  |  | 438,174 |  |  | 452,967 |
Income tax expense |  | 35,836 |  |  | 35,616 |  |  | 67,402 |  |  | 67,639 |
Net income |  | $ | 195,339 |  |  | $ | 203,609 |  |  | $ | 370,772 |  |  | $ | 385,328 |

Revenues
Net Premiums Earned
Net premiums earned for the three and six months ended June 30, 2025 decreased compared to the three and six months ended June 30, 2024. For more information, see Net Premiums Written and Earned under “Results of Operations: Mortgage Insurance” and Net Premiums Earned under “Results of Operations: Corporate & Other”.
Net Investment Income
Our net investment income was derived from the following sources for the periods indicated:

|  | Three Months Ended June 30, |  | Six Months Ended June 30,
(In thousands) |  | 2025 |  | 2024 |  | 2025 |  | 2024
Fixed maturities |  | $ | 54,946 |  |  | $ | 45,368 |  |  | $ | 107,432 |  |  | $ | 91,656 |
Short-term investments |  | 6,073 |  |  | 11,831 |  |  | 13,548 |  |  | 18,974 |
Gross investment income |  | 61,019 |  |  | 57,199 |  |  | 120,980 |  |  | 110,630 |
Investment expenses |  | (1,730) |  |  | (1,113) |  |  | (3,481) |  |  | (2,459) |
Net investment income |  | $ | 59,289 |  |  | $ | 56,086 |  |  | $ | 117,499 |  |  | $ | 108,171 |

The increase in net investment income for the three months ended June 30, 2025 as compared to the same period in 2024 was due to an increase in the weighted average balance of our investment portfolio as well as an increase in the pre-tax investment income yield. The increase in net investment income for the six months ended June 30, 2025 compared to the same period in 2024 was due to an increase in the weighted average balance of the investment portfolio.
The average cash and investment portfolio balance increased to $6.3 billion for the three months ended June 30, 2025 from $6.0 billion for the three months ended June 30, 2024 and increased to $6.4 billion for the six months ended June 30, 2025 from $5.9 billion for the six months ended June 30, 2024. The increase in the average cash and investment portfolio was primarily due to investing cash flows from operations.
36

Table of Contents
The pre-tax investment income yield increased from 3.8% in the three months ended June 30, 2024 to 3.9% for the three months ended June 30, 2025, primarily due to a general increase in investment yields due to rising interest rates. The pre-tax investment income yield was 3.8% for both the six months ended June 30, 2025 and 2024. See “— Liquidity and Capital Resources” for further details of our investment portfolio.
Income (Loss) from Other Invested Assets
Income (loss) from other invested assets for the three months ended June 30, 2025 was income of $4.5 million as compared to a loss of $0.4 million for the three months ended June 30, 2024 and income of $11.9 million for the six months ended June 30, 2025 compared to a loss of $2.3 million for the six months ended June 30, 2024. The increase in income from other invested assets was primarily due to favorable fair value adjustments recorded during the three and six months ended June 30, 2025 as compared to the same periods in 2024.
Other Income
Other income for the three months ended June 30, 2025 was $6.7 million as compared to $6.5 million for the three months ended June 30, 2024 and $13.0 million for the six months ended June 30, 2025 compared to $10.3 million for the six months ended June 30, 2024. The increase in other income for the six months ended June 30, 2025 compared to the same period in 2024 was largely due to fair value adjustments on embedded derivatives contained in certain of our reinsurance agreements. For the six months ended June 30, 2025 we recorded a net unfavorable decrease in the fair value of the embedded derivatives of $0.2 million compared to a net unfavorable decrease of $1.2 million for the six months ended June 30, 2024.
Expenses
Provision for Losses
The increased provision for losses for the three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024 was primarily due to the aging of defaults remaining within the mortgage insurance portfolio as of June 30, 2025, which resulted in an increase in our reserve per default. See “Results of Operations: Mortgage Insurance" for more information.
Other Underwriting and Operating Expenses
The decrease in underwriting and operating expenses for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 was primarily due to a decrease in compensation expense as a result of a decrease in stock based compensation and a reduction in title operating expenses as a result of fewer title policies issued. Other underwriting and operating expenses for the six months ended June 30, 2025 were largely unchanged compared to the six months ended June 30, 2024. For more information, see “Results of Operations: Mortgage Insurance” and “Results of Operations: Corporate & Other.”
Interest Expense
For the three and six months ended June 30, 2025, we incurred interest expense of $8.1 million and $16.3 million as compared to $7.8 million and $15.7 million for the three and six months ended June 30, 2024, respectively. On July 1, 2024, Essent Group completed an underwritten public offering of $500 million principal amount of 6.25% Senior Notes due 2029 (the “Senior Notes"). The Company used the net proceeds from the sale of the Senior Notes to repay all of the borrowings outstanding under the term loan portion of the Existing Credit Facility on July 1, 2024. The increase in interest expense was due to an increase in the average borrowings outstanding during the three and six months ended June 30, 2025 compared to same periods in 2024. For the three and six month periods ended June 30, 2025, the average amount of borrowings outstanding were $500 million compared to $425 million for the three and six months ended June 30, 2024. For the three and six months ended June 30, 2025, our total borrowings had a weighted average interest rate of 6.25% as compared to 7.14% for the three and six months ended June 30, 2024, respectively.
37

Table of Contents
Income Taxes
Our subsidiaries in the United States file a consolidated U.S. Federal income tax return. Our income tax expense was $35.8 million and $35.6 million for the three months ended June 30, 2025 and 2024, respectively and $67.4 million and $67.6 million for the six months ended June 30, 2025 and 2024, respectively. The provision for income taxes for the six months ended June 30, 2025 was calculated using an estimated annual effective tax rate of 15.4% compared to 15.1% for the six months ended June 30, 2024. For the six months ended June 30, 2025, income tax expense includes $2.7 million of discrete tax expense associated with realized and unrealized gains recognized during the period partially offset by $0.8 million excess tax benefits associated with the vesting of common shares and common share units. For the six months ended June 30, 2024, income tax expense includes $1.3 million of discrete tax benefit associated with realized and unrealized losses recognized during the period partially offset by excess tax deficits associated with the vesting of common shares and common share units.
Results of Operations: Mortgage Insurance

|  | Three Months Ended June 30, |  | Six Months Ended June 30,
(In thousands) |  | 2025 |  | 2024 |  | 2025 |  | 2024
Revenues: |  |  |  |  |  |  |  |
Net premiums earned |  | $ | 233,907 |  |  | $ | 235,258 |  |  | $ | 467,537 |  |  | $ | 465,564 |
Net investment income |  | 48,892 |  |  | 46,708 |  |  | 96,522 |  |  | 90,909 |
Realized investment gains (losses), net |  | (124) |  |  | (1,156) |  |  | (225) |  |  | (2,296) |
Income (loss) from other invested assets |  | 3,619 |  |  | 1,633 |  |  | 6,828 |  |  | 1,114 |
Other income |  | 3,523 |  |  | 4,662 |  |  | 8,024 |  |  | 6,562 |
Total revenues |  | 289,817 |  |  | 287,105 |  |  | 578,686 |  |  | 561,853 |
Losses and expenses: |  |  |  |  |  |  |  |
Provision (benefit) for losses and LAE |  | 15,359 |  |  | (1,225) |  |  | 46,081 |  |  | 8,112 |
Other underwriting and operating expenses |  | 27,011 |  |  | 28,396 |  |  | 57,604 |  |  | 58,623 |
Total losses and expenses before allocations |  | 42,370 |  |  | 27,171 |  |  | 103,685 |  |  | 66,735 |
Corporate expense allocations |  | 9,241 |  |  | 10,840 |  |  | 22,255 |  |  | 22,458 |
Total losses and expenses after allocations |  | 51,611 |  |  | 38,011 |  |  | 125,940 |  |  | 89,193 |
Income before income tax expense |  | $ | 238,206 |  |  | $ | 249,094 |  |  | $ | 452,746 |  |  | $ | 472,660 |
Loss ratio (1) |  | 6.6 | % |  | (0.5) | % |  | 9.9 | % |  | 1.7 | %
Expense ratio (2) |  | 15.5 | % |  | 16.7 | % |  | 17.1 | % |  | 17.4 | %
Combined ratio |  | 22.1 | % |  | 16.2 | % |  | 27.0 | % |  | 19.1 | %
(1) Loss ratio is calculated by dividing the provision for losses and LAE by net premiums earned. |  |  |  |  |  |  |  |
(2) Expense ratio is calculated by dividing the sum of other underwriting and operating expenses and corporate expense allocations by net premiums earned. |  |  |  |  |  |  |  |

Three and Six Months Ended June 30, 2025 Compared to the Three and Six Months Ended June 30, 2024
For the three months ended June 30, 2025, our Mortgage Insurance segment reported income before income tax expense of $238.2 million, compared to income before income tax expense of $249.1 million for the three months ended June 30, 2024. The decrease in our operating results during the three months ended June 30, 2025 compared to the same period in 2024 was primarily due to an increase in the provision for losses partially offset by increases in net investment income and income from other invested assets and a decrease in other underwriting and operating expenses.
For the six months ended June 30, 2025, our Mortgage Insurance segment reported income before income tax expense of $452.7 million, compared to income before income tax expense of $472.7 million for the six months ended June 30, 2024. The decrease in our operating results during the six months ended June 30, 2025 compared to the same period in 2024 was primarily due to an increase in the provision for losses partially offset by increases in net premiums earned, net investment income and income from other invested assets and a decrease in other underwriting and operating expenses.
38

Table of Contents
Net Premiums Written and Earned
Net premiums earned decreased in the three months ended June 30, 2025 by 0.6% compared to the three months ended June 30, 2024. The decrease in net premiums earned was primarily due to an increase in ceded premiums as a result of higher ceded losses under our third party quota share arrangements, partially offset by an increase in our average IIF from $239.5 billion for the three months ended June 30, 2024 to $245.7 billion for the three months ended and June 30, 2025. The average net premium rate was 0.36% for both the three months ended June 30, 2025 and 2024.
Net premiums earned increased in the six months ended June 30, 2025 by 0.4% compared to the six months ended June 30, 2024. The increase in net premiums earned was due to an increase in our average IIF from $239.2 billion for the six months ended June 30, 2024 to $244.9 billion for the six months ended June 30, 2025, partially offset by an increase in ceded premiums as a result of higher ceded losses under our third party quota share arrangements. The average net premium rate was 0.36% for the six months ended June 30, 2025 and 2024, respectively.
In the three months ended June 30, 2025 and 2024, unearned premiums decreased by $7.3 million and $6.3 million, respectively. The change in unearned premiums was a result of net premiums written on single premium policies of $2.2 million and $1.6 million, respectively, which was offset by $9.5 million and $7.9 million, respectively, of unearned premium that was recognized in earnings during the periods. In the six months ended June 30, 2025 and 2024, unearned premiums decreased by $14.9 million and $13.4 million, respectively. This was a result of net premiums written on single premium policies of $4.1 million and $4.5 million, respectively, which was offset by $19.0 million and $17.9 million, respectively, of unearned premium that was recognized in earnings during the periods.
Provision for Losses and Loss Adjustment Expenses
In the three months ended June 30, 2025 we recorded a provision for losses of $15.4 million compared to a benefit of $1.2 million for the three months ended June 30, 2024. In the six months ended June 30, 2025 we recorded a provision of $46.1 million compared to a provision of $8.1 million for the six months ended June 30, 2024. The increase in the provision for losses in the three and six months ended June 30, 2025 compared to the same periods in 2024 was primarily due to the aging of defaults remaining within the mortgage insurance portfolio as of June 30, 2025, which resulted in an increase in our reserve per default.
The following table presents a rollforward of insured loans in default for our U.S. mortgage insurance portfolio for the periods indicated:

|  | Three Months Ended June 30, |  | Six Months Ended June 30,
|  | 2025 |  | 2024 |  | 2025 |  | 2024
Beginning default inventory |  | 17,759 |  |  | 13,992 |  |  | 18,439 |  |  | 14,819 |
Plus: new defaults |  | 8,810 |  |  | 8,119 |  |  | 18,474 |  |  | 16,379 |
Less: cures |  | (9,078) |  |  | (7,956) |  |  | (19,251) |  |  | (16,907) |
Less: claims paid |  | (215) |  |  | (183) |  |  | (368) |  |  | (306) |
Less: rescissions and denials, net |  | (21) |  |  | (18) |  |  | (39) |  |  | (31) |
Ending default inventory |  | 17,255 |  |  | 13,954 |  |  | 17,255 |  |  | 13,954 |

39

Table of Contents
The following table includes additional information about our loans in default as of the dates indicated for our U.S. mortgage insurance portfolio:

|  | As of June 30,
|  | 2025 |  | 2024
Case reserves (in thousands) (1) |  | $ | 319,408 |  |  | $ | 226,976 |
Total reserves (in thousands) (1) |  | $ | 345,952 |  |  | $ | 246,107 |
Ending default inventory |  | 17,255 |  |  | 13,954 |
Average case reserve per default (in thousands) |  | $ | 18.5 |  |  | $ | 16.3 |
Average total reserve per default (in thousands) |  | $ | 20.0 |  |  | $ | 17.6 |
Default rate |  | 2.12 | % |  | 1.71 | %
Claims received included in ending default inventory |  | 214 |  |  | 135 |

(1)The U.S. mortgage insurance portfolio reserves exclude reserves on GSE and other risk share risk in force at Essent Re of $88 thousand and $33 thousand as of June 30, 2025 and June 30, 2024.
The following table provides a reconciliation of the beginning and ending U.S. mortgage insurance reserve balances for losses and LAE:

|  | Three Months Ended June 30, |  | Six Months Ended June 30,
(In thousands) |  | 2025 |  | 2024 |  | 2025 |  | 2024
Reserve for losses and LAE at beginning of period |  | $ | 338,128 |  |  | $ | 253,565 |  |  | $ | 310,156 |  |  | $ | 245,402 |
Less: Reinsurance recoverables |  | 40,351 |  |  | 26,570 |  |  | 36,655 |  |  | 24,005 |
Net reserve for losses and LAE at beginning of period |  | 297,777 |  |  | 226,995 |  |  | 273,501 |  |  | 221,397 |
Add provision for losses and LAE occurring in: |  |  |  |  |  |  |  |
Current period |  | 45,119 |  |  | 30,653 |  |  | 94,047 |  |  | 70,049 |
Prior years |  | (29,796) |  |  | (31,880) |  |  | (48,004) |  |  | (61,942) |
Incurred losses and LAE during the current period |  | 15,323 |  |  | (1,227) |  |  | 46,043 |  |  | 8,107 |
Deduct payments for losses and LAE occurring in: |  |  |  |  |  |  |  |
Current period |  | 315 |  |  | 478 |  |  | 366 |  |  | 479 |
Prior years |  | 8,799 |  |  | 5,205 |  |  | 15,192 |  |  | 10,940 |
Loss and LAE payments during the current period |  | 9,114 |  |  | 5,683 |  |  | 15,558 |  |  | 9,419 |
Net reserve for losses and LAE at end of period |  | 303,986 |  |  | 220,085 |  |  | 303,986 |  |  | 220,085 |
Plus: Reinsurance recoverables |  | 41,966 |  |  | 26,022 |  |  | 41,966 |  |  | 26,022 |
Reserve for losses and LAE at end of period (1) |  | $ | 345,952 |  |  | $ | 246,107 |  |  | $ | 345,952 |  |  | $ | 246,107 |

(1)The U.S. mortgage insurance portfolio reserves exclude reserves on GSE and other risk share risk in force at Essent Re of $88 thousand and $33 thousand as of June 30, 2025 and June 30, 2024.
40

Table of Contents
The following tables provide a detail of reserves and defaulted RIF by the number of missed payments and pending claims for our U.S. mortgage insurance portfolio:

|  | As of June 30, 2025
($ in thousands) |  | Number of Policies in Default |  | Percentage of Policies in Default |  | Amount of Reserves |  | Percentage of Reserves |  | Defaulted RIF |  | Reserves as a Percentage of Defaulted RIF
Missed payments: |  |  |  |  |  |  |  |  |  |  |  |
Two payments |  | 5,634 |  |  | 33 | % |  | $ | 29,534 |  |  | 9 | % |  | $ | 436,738 |  |  | 7%
Three payments |  | 2,375 |  |  | 14 |  |  | 23,028 |  |  | 7 |  |  | 189,938 |  |  | 12
Four to eleven payments |  | 6,644 |  |  | 38 |  |  | 134,497 |  |  | 42 |  |  | 561,051 |  |  | 24
Twelve or more payments |  | 2,388 |  |  | 14 |  |  | 118,154 |  |  | 37 |  |  | 190,189 |  |  | 62
Pending claims |  | 214 |  |  | 1 |  |  | 14,195 |  |  | 5 |  |  | 15,789 |  |  | 90
Total case reserves (1) |  | 17,255 |  |  | 100 | % |  | $ | 319,408 |  |  | 100 | % |  | $ | 1,393,705 |  |  | 23%
IBNR |  |  |  |  |  | 23,956 |  |  |  |  |  |  |
LAE |  |  |  |  |  | 2,588 |  |  |  |  |  |  |
Total reserves for losses and LAE (1) |  |  |  |  |  | $ | 345,952 |  |  |  |  |  |  |

(1)The U.S. mortgage insurance portfolio reserves exclude reserves on GSE and other risk share risk in force at Essent Re of $88 thousand as of June 30, 2025.

|  | As of June 30, 2024
($ in thousands) |  | Number of Policies in Default |  | Percentage of Policies in Default |  | Amount of Reserves |  | Percentage of Reserves |  | Defaulted RIF |  | Reserves as a Percentage of Defaulted RIF
Missed payments: |  |  |  |  |  |  |  |  |  |  |  |
Two payments |  | 4,989 |  |  | 36 | % |  | $ | 25,458 |  |  | 11 | % |  | $ | 372,669 |  |  | 7%
Three payments |  | 2,035 |  |  | 14 |  |  | 17,938 |  |  | 9 |  |  | 153,207 |  |  | 12
Four to eleven payments |  | 4,887 |  |  | 35 |  |  | 93,489 |  |  | 41 |  |  | 383,685 |  |  | 24
Twelve or more payments |  | 1,908 |  |  | 14 |  |  | 82,529 |  |  | 36 |  |  | 135,616 |  |  | 61
Pending claims |  | 135 |  |  | 1 |  |  | 7,562 |  |  | 3 |  |  | 8,540 |  |  | 89
Total case reserves (2) |  | 13,954 |  |  | 100 | % |  | $ | 226,976 |  |  | 100 | % |  | $ | 1,053,717 |  |  | 22%
IBNR |  |  |  |  |  | 17,023 |  |  |  |  |  |  |
LAE |  |  |  |  |  | 2,108 |  |  |  |  |  |  |
Total reserves for losses and LAE (2) |  |  |  |  |  | $ | 246,107 |  |  |  |  |  |  |

(2)The U.S. mortgage insurance portfolio reserves exclude reserves on GSE and other risk share risk in force at Essent Re of $33 thousand as of June 30, 2024.
During the three months ended June 30, 2025, the Mortgage Insurance provision for losses and LAE was a provision of $15.3 million, comprised of $45.1 million of current year losses partially offset by $29.8 million of favorable prior years’ loss development. During the three months ended June 30, 2024, the benefit for losses and LAE was $1.2 million, comprised of $30.7 million of current year losses offset by $31.9 million of favorable prior years’ loss development.
During the six months ended June 30, 2025, the Mortgage Insurance provision for losses and LAE was $46.0 million, comprised of $94.0 million of current year losses partially offset by $48.0 million of favorable prior years’ loss development. During the six months ended June 30, 2024, the provision for losses and LAE was $8.1 million, comprised of $70.0 million of current year losses partially offset by $61.9 million of favorable prior years’ loss development.
In all periods, the prior years’ loss development was the result of a re-estimation of amounts ultimately to be paid on prior year defaults in the default inventory, including the impact of previously identified defaults that cured.
The following table includes additional information about our claims paid and claim severity for our U.S. mortgage insurance portfolio for the periods indicated:
41

Table of Contents

|  | Three Months Ended June 30, |  | Six Months Ended June 30,
($ in thousands) |  | 2025 |  | 2024 |  | 2025 |  | 2024
Number of claims paid |  | 215 |  |  | 183 |  |  | 368 |  |  | 306 |
Amount of claims paid |  | $ | 9,007 |  |  | $ | 5,566 |  |  | $ | 15,337 |  |  | $ | 9,171 |
Claim severity |  | 67 | % |  | 60 | % |  | 68 | % |  | 62 | %

Other Underwriting and Operating Expenses
Following are the components of other underwriting and operating expenses for the Mortgage Insurance segment for the periods indicated:

|  | Three Months Ended June 30, |  | Six Months Ended June 30,
|  | 2025 |  | 2024 |  | 2025 |  | 2024
($ in thousands) |  | $ |  | % |  | $ |  | % |  | $ |  | % |  | $ |  | %
Compensation and benefits |  | $ | 16,793 |  |  | 62 | % |  | $ | 17,756 |  |  | 63 | % |  | $ | 36,683 |  |  | 64 | % |  | $ | 36,463 |  |  | 62 | %
Premium taxes |  | 6,000 |  |  | 22 | % |  | 5,568 |  |  | 20 | % |  | 11,574 |  |  | 20 | % |  | 11,176 |  |  | 19 | %
Ceding commission |  | (6,910) |  |  | (25 | %) |  | (5,715) |  |  | (20 | %) |  | (13,418) |  |  | (24 | %) |  | (11,268) |  |  | (19 | %)
Other |  | 11,128 |  |  | 41 | % |  | 10,787 |  |  | 37 | % |  | 22,765 |  |  | 40 | % |  | 22,252 |  |  | 38 | %
Total other underwriting and operating expenses |  | $ | 27,011 |  |  | 100 | % |  | $ | 28,396 |  |  | 100 | % |  | $ | 57,604 |  |  | 100 | % |  | $ | 58,623 |  |  | 100 | %
Average number of employees during the period |  |  |  | 279 |  |  |  |  | 298 |  |  |  |  | 288 |  |  |  |  | 298 |

The significant factors contributing to the change in other underwriting and operating expenses are:
•Compensation and benefits decreased during the three months ended June 30, 2025 compared to the same period in 2024 primarily due to a decrease in average number of employees during the current period. Compensation and benefits during the six months ended June 30, 2025 were largely unchanged compared to the same period in 2024 as the impact of lower average employees in 2025 was offset by the timing of stock-based compensation due to provisions in certain equity grants that reduced the service period resulting in higher expense in early 2025. Compensation and benefits includes salaries, wages and bonus, stock compensation expense, benefits and payroll taxes. The first quarter of each year typically has higher compensation and benefits expense than the subsequent quarters due to payroll taxes on annual bonus payouts and vesting of nonvested stock and stock units, as well as higher stock-based compensation expense.
•The increases in ceding commission during the three and six month periods ended June 30, 2025 compared to the same periods in 2024 results from increases in the amount of reinsured insurance in force under our outstanding quota share arrangements.
•Other expenses include professional fees, travel, marketing, hardware, software, rent, depreciation and amortization and other facilities expenses.
42

Table of Contents
Results of Operations: Corporate & Other

|  | Three Months Ended June 30, |  | Six Months Ended June 30,
(In thousands) |  | 2025 |  | 2024 |  | 2025 |  | 2024 |  |  |  |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |
Net premiums earned |  | $ | 14,902 |  |  | $ | 16,633 |  |  | $ | 27,120 |  |  | $ | 31,917 |  |  |  |  |
Net investment income |  | 10,397 |  |  | 9,378 |  |  | 20,977 |  |  | 17,262 |  |  |  |  |
Realized investment gains (losses), net |  | (5) |  |  | (8) |  |  | (85) |  |  | (8) |  |  |  |  |
Income (loss) from other invested assets |  | 847 |  |  | (2,052) |  |  | 5,046 |  |  | (3,448) |  |  |  |  |
Other income |  | 3,185 |  |  | 1,886 |  |  | 4,957 |  |  | 3,723 |  |  |  |  |
Total revenues |  | 29,326 |  |  | 25,837 |  |  | 58,015 |  |  | 49,446 |  |  |  |  |
Losses and expenses: |  |  |  |  |  |  |  |  |  |  |  |
Provision for losses and LAE |  | 1,696 |  |  | 891 |  |  | 2,261 |  |  | 1,467 |  |  |  |  |
Other underwriting and operating expenses |  | 35,754 |  |  | 37,806 |  |  | 76,285 |  |  | 74,419 |  |  |  |  |
Interest expense |  | 8,148 |  |  | 7,849 |  |  | 16,296 |  |  | 15,711 |  |  |  |  |
Total losses and expenses before allocations |  | 45,598 |  |  | 46,546 |  |  | 94,842 |  |  | 91,597 |  |  |  |  |
Corporate expense allocations |  | (9,241) |  |  | (10,840) |  |  | (22,255) |  |  | (22,458) |  |  |  |  |
Total losses and expenses after allocations |  | 36,357 |  |  | 35,706 |  |  | 54,030 |  |  | 54,030 |  |  |  |  |
Loss before income tax expense |  | $ | (7,031) |  |  | $ | (9,869) |  |  | $ | (14,572) |  |  | $ | (19,693) |  |  |  |  |

Three and Six Months Ended June 30, 2025 Compared to the Three and Six Months Ended June 30, 2024
Net Premiums Earned
Net premiums earned reported in Corporate & Other relate to premiums earned by our title insurance operations. The decrease in net premiums earned is primarily due to a decrease in title insurance policies issued in the three and six month periods ended June 30, 2025 compared to the same periods in 2024.
Provision for Losses & LAE
The provision for losses reported in Corporate & Other relates to loss provisions recorded by our title insurance operations. The increase in the provision for losses in the three and six month periods ended June 30, 2025 compared to the same periods in 2024 is primarily due to the impact of recent industry experience and trends on our IBNR reserves. Title insurance reserves were $18.7 million at both June 30, 2025 and December 31, 2024.
Other Underwriting and Operating Expenses
Following are the components of other underwriting and operating expenses for the Corporate & Other category for the periods indicated:

|  | Three Months Ended June 30, |  | Six Months Ended June 30,
|  | 2025 |  | 2024 |  | 2025 |  | 2024
($ in thousands) |  | $ |  | % |  | $ |  | % |  | $ |  | % |  | $ |  | %
Compensation and benefits |  | $ | 13,926 |  |  | 39 | % |  | $ | 15,608 |  |  | 41 | % |  | $ | 33,728 |  |  | 44 | % |  | $ | 31,610 |  |  | 42 | %
Premium taxes |  | 495 |  |  | 1 | % |  | 370 |  |  | 1 | % |  | 1,824 |  |  | 2 | % |  | 496 |  |  | 1 | %
Other |  | 21,333 |  |  | 60 | % |  | 21,828 |  |  | 58 | % |  | 40,733 |  |  | 54 | % |  | 42,313 |  |  | 57 | %
Total other underwriting and operating expenses |  | $ | 35,754 |  |  | 100 | % |  | $ | 37,806 |  |  | 100 | % |  | $ | 76,285 |  |  | 100 | % |  | $ | 74,419 |  |  | 100 | %
Average number of employees during the period |  |  |  | 257 |  |  |  |  | 228 |  |  |  |  | 278 |  |  |  |  | 232 |

The significant factors contributing to the change in other underwriting and operating expenses are:
•Compensation and benefits decreased in the three months ended June 30, 2025 compared to the same period in 2024 primarily due to decreases in stock based compensation expense as a result of provisions in certain equity grants that
43

Table of Contents
reduced the service period, resulting in higher expense in early 2025. Compensation and benefits increased during the six months ended June 30, 2025 compared to the same period in 2024 as a result of an increase in the average number of employees. Compensation and benefits includes salaries, wages and bonus, stock compensation expense, benefits and payroll taxes.
•Premium taxes increased during the six months ended June 30, 2025 compared to the same period in 2024 primarily due to $1.0 million of net expense associated with prior year premium tax returns. Premium taxes were largely unchanged in the three months ended June 30, 2025 compared to the same period in 2024.
•Other expenses include title and settlement services direct cost, professional fees, travel, marketing, hardware, software, rent, depreciation and amortization and other facilities expenses. Other expenses also includes premiums retained by agents which represents the portion of title insurance premiums retained by our third-party agents pursuant to the terms of their respective agency contracts. Other expenses were largely unchanged in the three months ended June 30, 2025 compared to the same period in 2024 and decreased during the six months ended June 30, 2025 compared to the same period in 2024 primarily due to decreases in title and settlement services direct cost and premiums retained by agents due to a decrease in title insurance policies issued 2025, partially offset by an increase in professional fees.
Liquidity and Capital Resources
Overview
Our sources of funds consist primarily of:
•our investment portfolio and interest income on the portfolio;
•net premiums that we will receive from our existing IIF as well as policies that we write in the future;
•borrowings under our Revolving Credit Facility; and
•issuance of capital shares.
Our obligations consist primarily of:
•claim payments under our policies;
•interest payments and repayment of borrowings under our Senior Notes and Revolving Credit Facility;
•the other costs and operating expenses of our business;
•the repurchase of common shares under the share repurchase plan approved by our Board of Directors; and
•the payment of dividends on our common shares.
As of June 30, 2025, we had substantial liquidity with cash of $92.1 million, short-term investments of $583.0 million and fixed maturity investments of $5.4 billion. We also had $500 million available capacity under our Revolving Credit Facility. Cash and investments available for sale at the holding companies totaled $1.0 billion at June 30, 2025. In addition, Essent Guaranty is a member of the Federal Home Loan Bank of Pittsburgh (the “FHLBank”) and has access to secured borrowing capacity with the FHLBank to provide Essent Guaranty with supplemental liquidity. Essent Guaranty had no outstanding borrowings with the FHLBank at June 30, 2025.
On July 1, 2024, we completed an underwritten public offering of $500 million of 6.25% Senior Notes due in 2029. The Company used the net proceeds from the sale of the Senior Notes to repay the $425 million of borrowings outstanding under the term loan portion of the Existing Credit Facility and intends to use the remaining net proceeds for general corporate purposes. On July 1, 2024, concurrently with the closing of the offering of the Senior Notes and the repayment of all of the borrowings outstanding under the term loan portion of the Existing Credit Facility, the Fourth Amended and Restated Credit Agreement (the “Revolving Credit Agreement”) became effective and amends and restates the Existing Credit Facility. The
44

Table of Contents
Revolving Credit Agreement provides for an effective increase in the Company’s revolving credit facility borrowing capacity from $400 million to $500 million.
Management believes that the Company has sufficient liquidity available both at its holding companies and in its insurance and other operating subsidiaries to meet its operating cash needs and obligations and committed capital expenditures for the next 12 months.
While the Company and all of its subsidiaries are expected to have sufficient liquidity to meet all their expected obligations, additional capital may be required to meet any new capital requirements that are adopted by regulatory authorities or the GSEs, to respond to changes in the business or economic environment, to provide additional capital related to the growth of our risk in force in our mortgage insurance portfolio, or to fund new business initiatives. We regularly review potential investments and acquisitions, some of which may be material, that, if consummated, would expand our existing business or result in new lines of business, and at any given time we may be in discussions concerning possible transactions. We continually evaluate opportunities based upon market conditions to further increase our financial flexibility through the issuance of equity or debt, or other options including reinsurance or credit risk transfer transactions. There can be no guarantee that any such opportunities will be available on acceptable terms or at all.
At the operating subsidiary level, liquidity could be impacted by any one of the following factors:
•significant decline in the value of our investments;
•inability to sell investment assets to provide cash to fund operating needs;
•decline in expected revenues generated from operations;
•increase in expected claim payments related to our IIF; or
•increase in operating expenses.
Our U.S. insurance subsidiaries are subject to certain capital and dividend rules and regulations prescribed by jurisdictions in which they are authorized to operate and, in the case of Essent Guaranty, the GSEs. Under the insurance laws of the Commonwealth of Pennsylvania, the insurance subsidiaries may pay dividends during any twelve-month period in an amount equal to the greater of (i) 10% of the preceding year-end statutory policyholders' surplus or (ii) the preceding year’s statutory net income. The Pennsylvania statute also requires that, without the prior approval of the Pennsylvania Insurance Department, dividends and other distributions may only be paid out of positive unassigned surplus. At June 30, 2025, Essent Guaranty had unassigned surplus of approximately $444.8 million. As of June 30, 2025, Essent Guaranty could pay additional ordinary dividends in 2025 of $365.5 million.
Essent Re is subject to certain dividend restrictions as prescribed by the Bermuda Monetary Authority and under certain agreements with counterparties. Class 3B insurers must obtain the BMA's prior approval for a reduction by 15% or more of total statutory capital or for a reduction by 25% or more of total statutory capital and surplus as set forth in its previous year's statutory financial statements. In connection with a quota share reinsurance agreement with Essent Guaranty, Essent Re has agreed to maintain a minimum total equity of $100 million. As of June 30, 2025, Essent Re had total equity of $1.8 billion. In connection with its insurance and reinsurance activities, Essent Re is required to maintain assets in trusts for the benefit of its contractual counterparties. See Note 3 to our condensed consolidated financial statements. As of June 30, 2025, Essent Re could pay additional dividends in 2025 of $221.9 million without prior approval from the BMA.
At June 30, 2025, our insurance subsidiaries were in compliance with these rules, regulations and agreements.
45

Table of Contents
Cash Flows
The following table summarizes our consolidated cash flows from operating, investing and financing activities:

|  | Six Months Ended June 30,
(In thousands) |  | 2025 |  | 2024
Net cash provided by operating activities |  | $ | 411,104 |  |  | $ | 405,626 |
Net cash used in investing activities |  | (48,576) |  |  | (255,272) |
Net cash used in financing activities |  | (401,892) |  |  | (94,739) |
Net (decrease) increase in cash |  | $ | (39,364) |  |  | $ | 55,615 |

Operating Activities
Cash flow provided by operating activities totaled $411.1 million for the six months ended June 30, 2025, as compared to $405.6 million for the six months ended June 30, 2024. The increase in cash flow provided by operating activities was primarily due to increases in investment income.
Investing Activities
Cash flows used in investing activities totaled $48.6 million for the six months ended June 30, 2025 compared to $255.3 million for the six months ended June 30, 2024. The decrease in cash flows used in investing activities in the six months ended June 30, 2025 compared to six months ended June 30, 2024 were the result of maintaining higher cash balances to fund future financing activities. In the six months ended June 30, 2024 cash flow used in investing activities relates primarily to investing cash flows from operations.
Financing Activities
Cash flow used in financing activities totaled $401.9 million and $94.7 million for the six months ended June 30, 2025 and 2024, respectively, primarily related to the quarterly cash dividends paid, repurchases of common stock under our share repurchase plans and treasury stock acquired from employees to satisfy tax withholding obligations.
Insurance Company Capital
We compute a risk-to-capital ratio for our U.S. mortgage insurance company on a separate company statutory basis. The risk-to-capital ratio is our net risk in force divided by our statutory capital. Our net risk in force represents risk in force net of reinsurance ceded, if any, and net of exposures on policies for which loss reserves have been established. Statutory capital consists primarily of statutory policyholders’ surplus (which increases as a result of statutory net income and decreases as a result of statutory net loss and dividends paid), plus the statutory contingency reserve. The statutory contingency reserve is reported as a liability on the statutory balance sheet. A mortgage insurance company is required to make annual contributions to the contingency reserve of 50% of net premiums earned. These contributions must generally be maintained for a period of ten years. However, with regulatory approval, a mortgage insurance company may make early withdrawals from the contingency reserve when incurred losses exceed 35% of net premiums earned in a calendar year.
During the six months ended June 30, 2025 and 2024, no capital contributions were made to our U.S. mortgage insurance subsidiary and Essent Guaranty paid dividends to Essent US Holdings, Inc. of $130 million and $107.5 million, respectively. During the six months ended June 30, 2025, and 2024, no capital contributions were made to Essent Title Insurance.
Prior to December 31, 2024, Essent Guaranty reinsured that portion of the risk that is in excess of 25% of the mortgage balance with respect to any loan insured prior to April 1, 2019, after consideration of other reinsurance, to Essent Guaranty of PA, Inc. On December 31, 2024, Essent Guaranty and Essent PA entered into a commutation and release agreement in which all outstanding risk in force assumed by Essent PA was commuted back to Essent Guaranty in exchange for cash. Upon the commutation and release, Essent PA surrendered its insurance license and is no longer an insurance subsidiary of Essent Group Ltd. as of December 31, 2024.
Essent Guaranty has entered into reinsurance agreements that provide excess of loss reinsurance coverage for new defaults on portfolios of mortgage insurance policies issued from January 1, 2018 through August 31, 2019 and August 1, 2020
46

Table of Contents
through December 31, 2024. The aggregate excess of loss reinsurance coverages decrease over a ten-year period as the underlying covered mortgages amortize. In April 2025, Essent entered into two excess of loss transactions, effective July 1 of each year, with panels of highly rated third-party reinsurers covering 20% of all eligible policies written by Essent Guaranty, Inc. in calendar years 2025 and 2026.
Essent Guaranty has entered into a quota share reinsurance agreement with a panel of third-party reinsurers ("QSR" agreement"). Each of the third-party reinsurers has an insurer minimum financial strength rating of A- or better by S&P Global Ratings, AM Best or both. Under each QSR agreement, Essent Guaranty will cede premiums 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 specific ceding commission, as well as a profit commission that varies directly and inversely with ceded claims. These reinsurance coverages also reduces net risk in force and PMIERs Minimum Required Assets. See Note 4 to our condensed consolidated financial statements.
The following table summarizes Essent Guaranty's quota share reinsurance agreements as of June 30, 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%

_______________________________________________________________________________
(1) Under QSR-2019, Essent Guaranty cedes 40% of premiums on singles policies and 20% on all other policies.
During the first quarter of 2025, Essent also entered into a forward quota share transaction covering 25% of the risk of all eligible policies written by Essent Guaranty, Inc. in calendar year 2026.
Our risk-to-capital calculation for Essent Guaranty as of June 30, 2025 was as follows:

Statutory capital: ($ in thousands) |
Policyholders’ surplus | $ | 1,150,106 |
Contingency reserves | 2,564,039 |
Statutory capital | $ | 3,714,146 |
Net risk in force | $ | 33,986,508 |
Risk-to-capital ratio | 9.2:1

For additional information regarding regulatory capital, see Note 14 to our condensed consolidated financial statements. The information above has been derived from the annual and quarterly statements of Essent Guaranty, which have been prepared in conformity with accounting practices prescribed or permitted by the Pennsylvania Insurance Department and the National Association of Insurance Commissioners Accounting Practices and Procedures Manual. Such practices vary from accounting principles generally accepted in the United States.
Essent Re has entered into GSE and other risk share transactions, including insurance and reinsurance transactions with Freddie Mac and Fannie Mae. Under a quota share reinsurance agreement, Essent Re reinsures 25% of Essent Guaranty’s NIW through December 31, 2020 and 35% of Essent Guaranty’s NIW after December 31, 2020. In April 2025, Essent Guaranty and Essent Re agreed to increase the quota share reinsurance coverage of Essent Guaranty’s NIW provided by Essent Re to 50% effective January 1, 2025. The quota share reinsurance coverage provided by Essent Re for Essent Guaranty’s NIW prior to January 1, 2025 will continue at the quota share percentage in effect at the time NIW was first ceded. During the six months ended June 30, 2025 and 2024, Essent Re paid $220 million and $125 million in dividends to Essent Group, respectively. Essent Group made no capital contributions to Essent Re during the six months ended June 30, 2025 and 2024. As of June 30, 2025, Essent Re had total stockholders’ equity of $1.8 billion and net risk in force of $24.8 billion.
47

Table of Contents
Financial Strength Ratings
The insurer financial strength rating of Essent Guaranty, our principal mortgage insurance subsidiary, is rated A2 with a stable outlook by Moody’s Investors Service (“Moody's”) (up from A3 with a positive outlook as a result of an upgrade by Moody’s announced on August 6, 2025), A- with a stable outlook by S&P and A (Excellent) with stable outlook by AM Best. The insurer financial strength rating of Essent Re is A- with a stable outlook by S&P and A (Excellent) with stable outlook by AM Best.
Private Mortgage Insurer Eligibility Requirements
Fannie Mae and Freddie Mac, maintain coordinated Private Mortgage Insurer Eligibility Requirements, which we refer to as the "PMIERs." The PMIERs represent the standards by which private mortgage insurers are eligible to provide mortgage insurance on loans owned or guaranteed by Fannie Mae and Freddie Mac. The PMIERs include financial strength requirements incorporating a risk-based framework that require approved insurers to have a sufficient level of liquid assets from which to pay claims. This risk-based framework provides that an insurer must hold a substantially higher level of required assets for insured loans that are in default compared to a performing loan. The PMIERs also include enhanced operational performance expectations and define remedial actions that apply should an approved insurer fail to comply with these requirements. As of June 30, 2025, Essent Guaranty, our GSE-approved mortgage insurance company, was in compliance with the PMIERs. As of June 30, 2025, Essent Guaranty's Available Assets were $3.7 billion or 176% of its Minimum Required Assets of $2.1 billion based on our interpretation of the PMIERs.
Under PMIERs guidance issued by the GSEs effective June 30, 2020, Essent will apply a 0.30 multiplier to the risk-based required asset amount factor for each insured loan in default backed by a property located in a FEMA Declared Major Disaster Area eligible for Individual Assistance and that either (1) is subject to a forbearance plan granted in response to a FEMA Declared Major Disaster, the terms of which are materially consistent with terms of forbearance plans, repayment plans or loan modification trial period offered by Fannie Mae or Freddie Mac, or (2) has an initial missed payment occurring up to either (i) 30 days prior to the first day of the incident period specified in the FEMA Major Disaster Declaration or (ii) 90 days following the last day of the incident period specified in the FEMA Major Disaster Declaration, not to exceed 180 days from the first day of the incident period specified in the FEMA Major Disaster Declaration. In the case of the foregoing, the 0.30 multiplier shall be applied to the risk-based required asset amount factor for a non-performing primary mortgage guaranty insurance loan for no longer than three calendar months beginning with the month the loan becomes a non-performing primary mortgage guaranty insurance loan by reaching two missed monthly payments absent a forbearance plan described in 1) above. Further, under temporary provisions provided by the PMIERs guidance, Essent will apply a 0.30 multiplier to the risk-based required asset amount factor for each insured loan in default backed by a property that has an initial missed payment occurring on or after March 1, 2020 and prior to April 1, 2021 (COVID-19 Crisis Period). The 0.30 multiplier will be applicable for insured loans in default (1) subject to a forbearance plan granted in response to a financial hardship related to COVID-19 (which shall be assumed to be the case for any loan that has an initial missed payment occurring during the COVID-19 Crisis Period and is subject to a forbearance plan, repayment plan or loan modification trial period), the terms of which are materially consistent with terms offered by Fannie Mae or Freddie Mac, or (2) for no longer than three calendar months beginning with the month the loan becomes a non-performing primary mortgage guaranty insurance loan by reaching two missed monthly payments.
FHFA and the GSEs announced that effective November 1, 2023, defaulted loans will be no longer eligible for COVID forbearance plans and will follow the GSEs standard forbearance plans going forward. In August 2024, Fannie Mae and Freddie Mac, under the oversight of FHFA, issued an update to the planned sunset of the use of the 0.3x Required Asset multiplier for loans in a COVID forbearance plan. The sunset of the 0.3x Required Asset multiplier for loans in a COVID forbearance plan became effective on March 31, 2025. Also in August 2024, the GSEs issued updates to the PMIERs calculation of Available Assets. The updated PMIERs Available Asset requirements are subject to a phased-in implementation beginning with the quarter ending March 31, 2025, and will become fully effective on September 30, 2026. Essent expects to remain in full compliance with the PMIERs requirements.
48

Table of Contents
Financial Condition
Stockholders’ Equity
As of June 30, 2025, stockholders’ equity was $5.7 billion, compared to $5.6 billion as of December 31, 2024. Stockholders' equity increased primarily due to net income generated in 2025 and a decrease in accumulated other comprehensive loss related to a decrease in our net unrealized investment losses, partially offset by dividends paid and the repurchase of common shares under our share repurchase plan.
Investments
As of June 30, 2025 and December 31, 2024, investments totaled $6.3 billion and $6.2 billion, respectively. In addition, our total cash was $92.1 million as of June 30, 2025, compared to $131.5 million as of December 31, 2024.
Investments Available for Sale by Asset Class

Asset Class |  | June 30, 2025 |  | December 31, 2024
($ in thousands) |  | Fair Value |  | Percent |  | Fair Value |  | Percent
U.S. Treasury securities |  | $ | 391,461 |  |  | 6.6 | % |  | $ | 547,290 |  |  | 9.3 | %
U.S. agency mortgage-backed securities |  | 1,172,715 |  |  | 19.7 |  |  | 1,125,436 |  |  | 19.2 |
Municipal debt securities(1) |  | 600,618 |  |  | 10.0 |  |  | 583,501 |  |  | 9.9 |
Non-U.S. government securities |  | 62,166 |  |  | 1.0 |  |  | 69,798 |  |  | 1.2 |
Corporate debt securities(2) |  | 1,908,167 |  |  | 32.0 |  |  | 1,783,046 |  |  | 30.3 |
Residential and commercial mortgage securities |  | 454,381 |  |  | 7.6 |  |  | 478,086 |  |  | 8.1 |
Asset-backed securities |  | 796,065 |  |  | 13.4 |  |  | 631,959 |  |  | 10.8 |
Money market funds |  | 580,964 |  |  | 9.7 |  |  | 657,605 |  |  | 11.2 |
Total Investments Available for Sale |  | $ | 5,966,537 |  |  | 100.0 | % |  | $ | 5,876,721 |  |  | 100.0 | %

|  | June 30, |  | December 31,
(1) The following table summarizes municipal debt securities as of : |  | 2025 |  | 2024
Special revenue bonds |  | 82.6 | % |  | 83.3 | %
General obligation bonds |  | 17.4 |  |  | 16.7 |
Total |  | 100.0 | % |  | 100.0 | %

|  | June 30, |  | December 31,
(2) The following table summarizes corporate debt securities as of : |  | 2025 |  | 2024
Financial |  | 41.5 | % |  | 41.8 | %
Consumer, non-cyclical |  | 16.1 |  |  | 15.1 |
Utilities |  | 8.7 |  |  | 8.7 |
Industrial |  | 8.2 |  |  | 8.2 |
Technology |  | 6.4 |  |  | 6.4 |
Consumer, cyclical |  | 6.2 |  |  | 6.3 |
Communications |  | 5.2 |  |  | 5.7 |
Energy |  | 5.0 |  |  | 5.1 |
Basic Materials |  | 2.7 |  |  | 2.7 |
Total |  | 100.0 | % |  | 100.0 | %

49

Table of Contents
Investments Available for Sale by Rating

Rating (1) |  | June 30, 2025 |  | December 31, 2024
($ in thousands) |  | Fair Value |  | Percent |  | Fair Value |  | Percent
Aaa |  | $ | 816,766 |  |  | 15.2 | % |  | $ | 2,513,014 |  |  | 48.1 | %
Aa1 |  | 1,815,159 |  |  | 33.7 |  |  | 101,809 |  |  | 2.0 |
Aa2 |  | 297,712 |  |  | 5.5 |  |  | 301,080 |  |  | 5.8 |
Aa3 |  | 289,201 |  |  | 5.3 |  |  | 271,069 |  |  | 5.2 |
A1 |  | 559,198 |  |  | 10.4 |  |  | 511,076 |  |  | 9.8 |
A2 |  | 461,980 |  |  | 8.6 |  |  | 411,999 |  |  | 7.9 |
A3 |  | 503,243 |  |  | 9.3 |  |  | 463,616 |  |  | 8.8 |
Baa1 |  | 210,077 |  |  | 3.9 |  |  | 218,454 |  |  | 4.2 |
Baa2 |  | 209,301 |  |  | 3.9 |  |  | 198,193 |  |  | 3.8 |
Baa3 |  | 149,083 |  |  | 2.8 |  |  | 151,729 |  |  | 2.9 |
Below Baa3 |  | 73,853 |  |  | 1.4 |  |  | 77,077 |  |  | 1.5 |
Total (2) |  | $ | 5,385,573 |  |  | 100.0 | % |  | $ | 5,219,116 |  |  | 100.0 | %

(1)Based on ratings issued by Moody’s, if available. S&P or Fitch Ratings ("Fitch") rating utilized if Moody’s not available.
(2)Excludes $580,964 and $657,605 of money market funds at June 30, 2025 and December 31, 2024, respectively.
Investments Available for Sale by Effective Duration

Effective Duration |  | June 30, 2025 |  | December 31, 2024
($ in thousands) |  | Fair Value |  | Percent |  | Fair Value |  | Percent
< 1 Year |  | $ | 1,431,564 |  |  | 24.0 | % |  | $ | 1,587,022 |  |  | 26.9 | %
1 to < 2 Years |  | 605,824 |  |  | 10.2 |  |  | 544,630 |  |  | 9.3 |
2 to < 3 Years |  | 472,256 |  |  | 7.9 |  |  | 473,301 |  |  | 8.1 |
3 to < 4 Years |  | 526,581 |  |  | 8.8 |  |  | 445,614 |  |  | 7.6 |
4 to < 5 Years |  | 595,792 |  |  | 10.0 |  |  | 546,414 |  |  | 9.3 |
5 or more Years |  | 2,334,520 |  |  | 39.1 |  |  | 2,279,740 |  |  | 38.8 |
Total Investments Available for Sale |  | $ | 5,966,537 |  |  | 100.0 | % |  | $ | 5,876,721 |  |  | 100.0 | %

Off-Balance Sheet Arrangements
Essent Guaranty has entered into fully collateralized reinsurance agreements ("Radnor Re Transactions") with unaffiliated special purpose insurers domiciled in Bermuda. The Radnor Re special purpose insurers are special purpose variable interest entities that are not consolidated in our condensed consolidated financial statements because we do not have the unilateral power to direct those activities that are significant to their economic performance. As of June 30, 2025, our estimated off-balance sheet maximum exposure to loss from the Radnor Re entities was $0.2 million, representing the estimated net present value of investment earnings on the assets in the reinsurance trusts. See Note 4 to our condensed consolidated financial statements for additional information.
Critical Accounting Policies
As of the filing date of this report, there were no significant changes in our critical accounting policies from those discussed in our 2024 Form 10-K. See Note 2 to our condensed consolidated financial statements for recently issued accounting standards adopted or under evaluation.
50

Table of Contents
Item 3. Quantitative and Qualitative Disclosures About Market Risk
We own and manage a large investment portfolio of various holdings, types and maturities. Investment income is one of our primary sources of cash flow supporting operations and claim payments. The assets within the investment portfolio are exposed to the same factors that affect overall financial market performance. While our investment portfolio is exposed to factors affecting markets worldwide, it is most sensitive to fluctuations in the drivers of U.S. markets.
We manage market risk via defined investment policy implemented by our treasury function with oversight from our board of directors and our senior management. Important drivers of our market risk exposure monitored and managed by us include but are not limited to:
•Changes to the level of interest rates. Increasing interest rates may reduce the value of certain fixed-rate bonds held in the investment portfolio. Higher rates may cause variable-rate assets to generate additional income. Decreasing rates will have the reverse impact. Significant changes in interest rates can also affect persistency and claim rates which may in turn require that the investment portfolio be restructured to better align it with future liabilities and claim payments. Such restructuring may cause investments to be liquidated when market conditions are adverse.
•Changes to the term structure of interest rates. Rising or falling rates typically change by different amounts along the yield curve. These changes may have unforeseen impacts on the value of certain assets.
•Market volatility/changes in the real or perceived credit quality of investments. Deterioration in the quality of investments, identified through changes to our own or third-party (e.g., rating agency) assessments, will reduce the value and potentially the liquidity of investments.
•Concentration Risk. If the investment portfolio is highly concentrated in one asset, or in multiple assets whose values are highly correlated, the value of the total portfolio may be greatly affected by the change in value of just one asset or a group of highly correlated assets.
•Prepayment Risk. Bonds may have call provisions that permit debtors to repay prior to maturity when it is to their advantage. This typically occurs when rates fall below the interest rate of the debt.
Market risk is measured for all investment assets at the individual security level. Market risks that are not fully captured by the quantitative analysis are highlighted. In addition, material market risk changes that occur from the last reporting period to the current are discussed. Changes to how risks are managed will also be identified and described.
At June 30, 2025, the effective duration of our investments available for sale was 4.0 years, which means that an instantaneous parallel shift (movement up or down) in the yield curve of 100 basis points would result in a change of 4.0% in fair value of our investments available for sale. Excluding short-term investments, our investments available for sale effective duration was 4.4 years, which means that an instantaneous parallel shift (movement up or down) in the yield curve of 100 basis points would result in a change of 4.4% in fair value of our investments available for sale.
Item 4. Controls and Procedures
Disclosure Controls and Procedures
Our management carried out an evaluation, under the supervision and with the participation of our chief executive officer and chief financial officer, of the effectiveness of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this Quarterly Report. Based on this evaluation, our chief executive officer and chief financial officer concluded that our disclosure controls and procedures were effective as of June 30, 2025, the end of the period covered by this Quarterly Report.
Changes in Internal Control Over Financial Reporting
During our most recent fiscal quarter, there has not been any change in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
51

Table of Contents
PART II — OTHER INFORMATION
Item 1. Legal Proceedings
We are not currently subject to any material legal proceedings.
Item 1A. Risk Factors
Risk factors that affect our business and financial results are discussed in Part I, Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024. There have been no material changes in our risk factors from those previously disclosed in our Annual Report. You should carefully consider the risks described in our Annual Report, which could materially affect our business, financial condition or future results. The risks described in our Annual Report, along with the disclosure below are not the only risks we face. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition, and/or operating results. If any of the risks actually occur, our business, financial condition, and/or results of operations could be negatively affected.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Repurchases of Securities
The table below sets forth information regarding repurchases of our common shares during the three months ended June 30, 2025.

Period ($ in thousands, except per share amounts) |  | Total Number of Shares Purchased |  | Average Price Paid Per Share |  | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs |  | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (1)
April 1 - April 30, 2025 |  | 1,106,146 |  |  | $ | 55.37 |  |  | 1,102,525 |  |  |
May 1 - May 31, 2025 |  | 964,205 |  |  | $ | 58.41 |  |  | 964,205 |  |  |
June 1 - June 30, 2025 |  | 904,049 |  |  | $ | 59.62 |  |  | 904,049 |  |  |
Total |  | 2,974,400 |  |  |  |  | 2,970,779 |  |  | $ | 318,784 |

(1)During the three months ended June 30, 2025, the Company repurchased 2,970,779 common shares at a total cost of $171.3 million. The remaining $318.8 million in the table represents the amount available to repurchase shares under the February 2025 share repurchase authorization as of June 30, 2025. In July 2025, we repurchased 1,024,539 shares for $58.8 million, leaving approximately $260.0 million remaining for repurchases as of July 31, 2025.
Item 6. Exhibits
(a) Exhibits:

Exhibit No. |  | Description
31.1 |  | Certification of Chief Executive Officer required by Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2 |  | Certification of Chief Financial Officer required by Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1 |  | Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101 |  | The following financial information from this Quarterly Report on Form 10-Q for the quarter ended June 30, 2025, formatted in Inline XBRL: (i) the Condensed Consolidated Balance Sheets (Unaudited); (ii) the Condensed Consolidated Statements of Comprehensive Income (Unaudited); (iii) the Condensed Consolidated Statements of Changes in Stockholders’ Equity (Unaudited); (iv) the Condensed Consolidated Statements of Cash Flows (Unaudited); and (v) the Notes to Condensed Consolidated Financial Statements (Unaudited).
* | Management contract or compensatory plan or arrangement.

52

Table of Contents
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized, on the date indicated.

|  | ESSENT GROUP LTD.
Date: August 8, 2025 |  | /s/ MARK A. CASALE
|  | Mark A. Casale
|  | President, Chief Executive Officer and Chairman (Principal Executive Officer)
Date: August 8, 2025 |  | /s/ DAVID B. WEINSTOCK
|  | David B. Weinstock
|  | Senior Vice President and Chief Financial Officer (Principal Financial Officer)

53