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Reinsurance (Tables)

6 Months Ended

Jun. 30, 2025

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%

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.

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%

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(1)Under QSR-2019, Essent Guaranty cedes 40% of premiums on singles policies and 20% on all other policies.

Schedule of Coverages and Retentions

The following table summarizes Essent Guaranty's excess of loss coverages and retentions provided by insurance linked notes as of 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

Schedule of VIE Assets and Total Maximum Exposure to Loss

The following table presents total assets of each Radnor Re special purpose insurer as well as our maximum exposure to loss associated with each Radnor Re entity, representing the fair value of the embedded derivatives, using observable inputs in active markets (Level 2), included in other assets (other accrued liabilities) on our condensed consolidated balance sheet and the estimated net present value of investment earnings on the assets in the reinsurance trusts, each as of 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)

- Definition

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

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