ESNT

New in FY2025

• Our mortgage insurance business depends on our relationships with our largest lending customers.
• Our top ten customers generated 59.3% of our NIW during year ended December 31, 2025, compared to 50.2% and 39.9% for the years ended December 31, 2024 and 2023, respectively.
• For the year ended December 31, 2025, one customer represented more than 10% of our consolidated revenues.
• As a result of the significant decrease in our persistency rate largely as a result of a high level of refinancings in 2020 and 2021 triggered by historically low interest rates precipitated by the economic impacts of the COVID-19 pandemic, approximately 93% of our aggregate insurance in force as of December 31, 2025 corresponds to policies we have written since January 1, 2020.
• Our annual persistency rate was 85.7%, 85.7% and 86.9% at December 31, 2025, 2024 and 2023, respectively.
• As part of our overall investment strategy, we also allocate a percentage of our portfolio to limited partnership investments and traditional venture capital and private equity investments.
• We establish reserves for our mortgage-related insurance and reinsurance businesses using estimated claim rates and claim amounts in estimating the ultimate loss on delinquent loans.
• Our mortgage insurance master policy provides us the right to rescind or deny claims under certain circumstances.
• The establishment of loss reserves for mortgage-related risk is subject to inherent uncertainty and requires judgment by management.
• Our results could be adversely affected by catastrophic events.
• Through our reinsurance arrangements with participants in the Lloyd’s insurance markets we are exposed to, and to the extent that we enter into new non-mortgage reinsurance arrangements in the future we may be further exposed to, unpredictable catastrophic events, including, but not limited to, weather-related and other natural catastrophes, as well as political unrest, geopolitical uncertainty and instability, acts of terrorism and wars, pandemics and communicable diseases, and cyber-risks.
• We cannot predict or eliminate our exposure to these loss events, and as a result, our operating results may be significantly affected by the frequency and severity of such events.
• Furthermore, the frequency and/or severity of catastrophic events may be impacted in the future by the continued effects of climate change.
• Climate change and resulting changes in global temperatures, weather patterns, and sea levels may both increase the frequency and severity of natural catastrophes and the resulting losses in the future and impact our risk modeling assumptions.
• We cannot predict the impact that changing climate conditions, if any, may have on our results of operations or our financial condition.
• Additionally, we cannot predict how legal, regulatory and/or social responses to concerns around global climate change and the resulting impact on various sectors of the economy may impact our business.
• The occurrence, or nonoccurrence, of catastrophic events, the frequency and severity of which are inherently unpredictable, may cause significant volatility in our quarterly and annual financial results and may materially adversely affect our financial condition, results of operations and cash flows.
• Underwriting risks and reserving for losses in our non-mortgage reinsurance business are based on actuarially determined methods and assumptions, which are subject to inherent uncertainties.
• The success of our non-mortgage reinsurance businesses is dependent upon our ability to assess accurately the risks associated with the businesses that we reinsure.
• We establish reserves for losses and loss adjustment expenses in our non-mortgage reinsurance business which represent estimates based on actuarial and statistical projections, at a given point in time, of our expectations of the ultimate future settlement and administration costs of losses incurred.
• We utilize actuarial models as well as available historical insurance industry loss ratio experience and loss development patterns to assist in the establishment of loss reserves.
• Most or all of these factors are not directly quantifiable, particularly on a prospective basis, and the effects of these and unforeseen factors could negatively impact our ability to accurately assess the risks of the reinsurance policies that we write.
• Changes in the assumptions used could lead to an increase in our estimate of ultimate losses in the future.
• In addition, there may be significant reporting lags between the occurrence of the insured event and the time it is reported to the insurer and additional lags between the time of reporting and final settlement of claims.
• In addition, the estimation of loss reserves is more difficult during times of adverse economic and market conditions due to unexpected changes in behavior of claimants and policyholders, including an increase in fraudulent reporting of exposures and/or losses, reduced maintenance of insured properties or increased frequency of small claims.
• Changes in the level of inflation also result in an increased level of uncertainty in our estimation of loss reserves.
• As a result, actual losses and loss adjustment expenses paid can deviate, perhaps substantially, from the reserve estimates reflected in our financial statements.
• If our loss reserves for our reinsurance business are determined to be inadequate, we will be required to increase loss reserves at the time of such determination with a corresponding reduction in our net income in the period when the deficiency becomes known.
• It is possible that claims in respect of events that have occurred could exceed our claim reserves and have a material adverse effect on our results of operations, in a particular period, or our financial condition in general.
• As a compounding factor, the nature of property and casualty insurance and reinsurance is such that losses and the associated expenses could significantly exceed the premiums received on the underlying policies, thereby further adversely affecting our financial condition.
• Although we believe the FHFA's conservatorship was intended to be temporary, the GSEs have remained in conservatorship for over 17 years.
• The mortgage insurance industry faces litigation risk in the ordinary course of operations, including the risk of class action lawsuits and administrative enforcement by Federal and state agencies.
• However, our foreign subsidiaries are or could become subject to U.S. excise taxes on (re)insurance premium as well as U.S. withholding taxes on certain U.S. source investment income, and dividends paid from U.S. subsidiaries from U.S. earnings and profits.
• Further, proposed regulations could, if finalized in their current form, substantially expand the definition of RPII to include insurance income of Essent Re related to affiliate reinsurance transactions.
• We believe that the dividends paid on the common shares should qualify as "qualified dividend income" if, as is intended, our common shares remain listed on a national securities exchange and Essent Group Ltd. is not a PFIC.
• The base erosion anti-abuse tax or “BEAT” could make certain levels of affiliate reinsurance between United States and non-U.S. members of our group economically unfeasible.
• Companies are not subject to the CAMT if they do not meet a certain net income threshold on a trailing 3-year average calculation.
• Final Treasury Regulations were issued on November 24, 2025 regarding the stock repurchase FET.
• Those regulations confirm that we are not subject to the tax as currently enacted; however, future legislative changes to the stock repurchase FET could cause us to become subject to it.
• Our primary U.S. operating subsidiary, Essent Guaranty, Inc., had unassigned surplus of approximately $245.8 million as of December 31, 2025, and paid to its parent, Essent US Holdings, Inc., dividends totaling $495.0 million in 2025.

and 1 more.

Gone since FY2024

• Our U.S. mortgage insurance business depends on our relationships with our largest lending customers.
• Our top ten customers generated 50.2% of our NIW during year ended December 31, 2024, compared to 39.9% and 41.6% for the years ended December 31, 2023 and 2022, respectively.
• For the year ended December 31, 2024, one customer represented more than 10% of our consolidated revenues.
• Although the claims experience on NIW by us since we began to write coverage in 2010 has been relatively favorable to date, 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.
• As a result of the significant decrease in our persistency rate largely as a result of a high level of refinancings in 2020 and 2021 triggered by historically low interest rates precipitated by the economic impacts of the COVID-19 pandemic, approximately 91% of our aggregate insurance in force as of December 31, 2024 corresponds to policies we have written since January 1, 2020.
• Our annual persistency rate was 85.7%, 86.9% and 82.1% at December 31, 2024, 2023 and 2022, respectively.
• 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.
• We establish reserves using estimated claim rates and claim amounts in estimating the ultimate loss on delinquent loans.
• Our master policy provides us the right to rescind or deny claims under certain circumstances.
• The establishment of loss reserves is subject to inherent uncertainty and requires judgment by management.
• Although we believe the FHFA's conservatorship was intended to be temporary, the GSEs have remained in conservatorship for over 16 years.
• The U.S. mortgage insurance industry faces litigation risk in the ordinary course of operations, including the risk of class action lawsuits and administrative enforcement by Federal and state agencies.
• However, our foreign subsidiaries are or could become subject to U.S. excise taxes on (re)insurance premium, and on stock repurchases, as well as U.S. withholding taxes on certain U.S. source investment income, and dividends paid from U.S. subsidiaries from U.S. earnings and profits.
• Further, recently proposed regulations were published which could, if finalized in their current form, substantially expand the definition of RPII to include insurance income of Essent Re related to affiliate reinsurance transactions.
• We believe that the dividends paid on the common shares should qualify as "qualified dividend income" if, as is intended, our common shares remain listed on a national securities exchange and Essent Group is not a PFIC.
• The base erosion anti-abuse tax or “BEAT” that could make certain levels of affiliate reinsurance between United States and non-U.S. members of our group economically unfeasible.
• Companies are not subject to the CAMT if it does not meet a certain net income threshold on a trailing 3-year average calculation.
• Generally, the Excise Tax on certain stock repurchases applies to U.S.-domiciled companies.
• Proposed regulations issued in 2024, which may apply retroactively if finalized in their present form, provide in part that a foreign-parented MNC’s stock repurchase is subject to the FET if it is funded by its U.S affiliate with a principal purpose of avoiding the FET.
• The Proposed Regulations provide that the determination of whether a funding by a U.S. affiliate has a principal purpose of avoiding the FET is based on all the facts and circumstances.
• Final regulations were also issued in 2024 which provide several procedural rules related to the payment of the tax and related compliance obligations.
• The Company may become subject to the FET on stock repurchases in 2025 and future years based on facts and circumstances regarding sources and uses of Essent Group Ltd capital under the Proposed Regulations.
• Our primary U.S. operating subsidiary, Essent Guaranty, Inc., had unassigned surplus of approximately $396.6 million as of December 31, 2024, and paid to its parent, Essent US Holdings, Inc., dividends totaling $165.5 million in 2024.
• As of February 14, 2025, we had 103,835,368 outstanding common shares.