Essent Group Ltd. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Essent Group Ltd. has submitted its annual 10-K filing for the fiscal year ended December 31, 2023.</b>

AI Summary

Essent Group Ltd. (ESNT) filed a Annual Report (10-K) with the SEC on February 16, 2024. Essent Group Ltd. filed its 2023 Form 10-K on February 16, 2024. The filing covers the fiscal year ending December 31, 2023. The company's principal executive offices are located in Hamilton, Bermuda. Essent Group Ltd. is classified under SIC code 6351 for Surety Insurance. The filing was made under the Securities Exchange Act of 1934.

Why It Matters

For investors and stakeholders tracking Essent Group Ltd., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Essent Group Ltd.'s financial performance, risk factors, and business operations for the fiscal year 2023, crucial for investors to assess the company's health and future prospects. The detailed financial statements and disclosures within the 10-K allow stakeholders to understand the company's financial position, including assets, liabilities, equity, and changes therein, as well as its operational performance and strategic direction.

Risk Assessment

Risk Level: medium — Essent Group Ltd. shows moderate risk based on this filing. The company operates in the surety insurance industry, which is subject to regulatory oversight and market fluctuations that could impact financial performance.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to understand Essent Group Ltd.'s financial health and potential risks.

Key Numbers

• 2023-12-31 — Fiscal Year End (Conformed Period of Report)
• 2024-02-16 — Filing Date (Filed as of date)
• 2023-01-01 — Fiscal Year Start (Reporting period start date)

Key Players & Entities

• Essent Group Ltd. (company) — Filer name
• 0001448893 (company) — Central Index Key
• 6351 (company) — Standard Industrial Classification
• 980673656 (company) — IRS Number
• Hamilton (company) — Business address city
• 001-36157 (company) — SEC File Number

FAQ

Industry Context

Essent Group Ltd. operates within the financial services sector, specifically focusing on mortgage insurance and related services.

Regulatory Implications

The company is subject to regulations governing the insurance and financial services industries in the jurisdictions where it operates.

What Investors Should Do

1. Analyze the financial statements for revenue trends, profitability, and balance sheet strength.
2. Review the risk factors section for potential threats to the company's business and financial stability.
3. Examine management's discussion and analysis for insights into strategic priorities and outlook.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-02-16: Filing Date — Date the 10-K was officially filed with the SEC.

Year-Over-Year Comparison

This is the initial 10-K filing for the period ending December 31, 2023, as indicated by the filing date of February 16, 2024.

Key Financial Figures

• $0.015 — nge on which registered Common Shares, $0.015 par value ESNT New York Stock Exchange
• $47.7 b — rance written, or NIW, of approximately $47.7 billion, $63.1 billion and $84.2 billion,
• $63.1 billion — or NIW, of approximately $47.7 billion, $63.1 billion and $84.2 billion, respectively. As of
• $84.2 b — mately $47.7 billion, $63.1 billion and $84.2 billion, respectively. As of December 31,
• $239.1 billion — December 31, 2023, we had approximately $239.1 billion of private mortgage insurance in force.
• $2.2 billion — nce transactions covering approximately $2.2 billion of risk. Essent Re also reinsures prima
• $13.9 — of the largest in the world, with over $13.9 trillion of debt outstanding as of Sept
• $6.6 — e GSEs held or guaranteed approximately $6.6 trillion, or 47.8%, of total U.S. resid
• $1.64 — age origination volume was estimated at $1.64 trillion, comprised of $1.33 trillion o
• $1.33 — timated at $1.64 trillion, comprised of $1.33 trillion of purchase originations and $
• $0.31 — 3 trillion of purchase originations and $0.31 trillion of refinancing originations. T

Filing Documents

• esnt-20231231.htm (10-K) — 3507KB
• a123123ex211.htm (EX-21.1) — 27KB
• a123123ex231.htm (EX-23.1) — 2KB
• a123123ex311.htm (EX-31.1) — 14KB
• a123123ex312.htm (EX-31.2) — 14KB
• a123123ex321.htm (EX-32.1) — 8KB
• a123123ex97.htm (EX-97) — 42KB
• esnt-20231231_g1.jpg (GRAPHIC) — 308KB
• esnt-20231231_g2.jpg (GRAPHIC) — 356KB
• esnt-20231231_g3.jpg (GRAPHIC) — 297KB
• esnt-20231231_g4.jpg (GRAPHIC) — 320KB
• 0001448893-24-000015.txt (&nbsp;) — 19194KB
• esnt-20231231.xsd (EX-101.SCH) — 94KB
• esnt-20231231_cal.xml (EX-101.CAL) — 147KB
• esnt-20231231_def.xml (EX-101.DEF) — 610KB
• esnt-20231231_lab.xml (EX-101.LAB) — 1109KB
• esnt-20231231_pre.xml (EX-101.PRE) — 804KB
• esnt-20231231_htm.xml (XML) — 3013KB

BUSINESS

BUSINESS 1 ITEM 1A.

RISK FACTORS

RISK FACTORS 29 ITEM 1B. UNRESOLVED STAFF COMMENTS 51 ITEM 1C. CYBERSECURITY 51 ITEM 2.

PROPERTIES

PROPERTIES 52 ITEM 3.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 52 ITEM 4. MINE SAFETY DISCLOSURES 52 PART II ITEM 5. MARKET FOR THE COMPANY'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES 53 ITEM 6. [RESERVED] 54 ITEM 7.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 55 ITEM 7A.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 79 ITEM 8.

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 80 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 125 ITEM 9A.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 125 ITEM 9B. OTHER INFORMATION 125 ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 126 PART III ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 127 ITEM 11.

EXECUTIVE COMPENSATION

EXECUTIVE COMPENSATION 127 ITEM 12.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS 127 ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE 127 ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES 128 PART IV ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES 128 ITEM 16. FORM 10-K SUMMARY 129

SIGNATURES

SIGNATURES 130 i SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K, or Annual 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 Annual Report reflect our views as of the date of this Annual 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 in Part I, Item 1A "Risk Factors" and in Part II, Item 7 "Management's Discussion and Analysis of Financial Condition and Results of Operations." Readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cau

BUSINESS

ITEM 1. BUSINESS Overview We serve the housing finance industry by providing private mortgage insurance, reinsurance, risk management products and title insurance and settlement services to mortgage lenders, borrowers, and investors to support homeownership. Private mortgage insurance plays a critical role in the U.S. housing finance system, extending affordable homeownership by facilitating the sale of low down payment loans into the secondary market. Fannie Mae and Freddie Mac, which we refer to collectively as the GSEs, are U.S. Federal government-sponsored enterprises which purchase residential mortgages from banks and other lenders and guaranty mortgage-backed securities that are offered to investors in the secondary mortgage market. The GSEs are restricted by their charters from purchasing or guaranteeing low down payment loans, defined as loans with less than a 20% down payment, that are not covered by certain credit protections. Private mortgage insurance satisfies the GSEs' credit protection requirements for low down payment loans. Essent and other private mortgage insurers provide credit protection to lenders and mortgage investors, supporting a robust secondary mortgage market in the United States by covering a portion of the unpaid principal balance of a mortgage and certain related expenses in the event of a default. In doing so, we provide private capital to mitigate mortgage credit risk, allowing lenders to make additional mortgage financing available to prospective homeowners. For the years ended December 31, 2023, 2022 and 2021, we generated private mortgage insurance new insurance written, or NIW, of approximately $47.7 billion, $63.1 billion and $84.2 billion, respectively. As of December 31, 2023, we had approximately $239.1 billion of private mortgage insurance in force. We are approved by Fannie Mae and Freddie Mac and are licensed to write private mortgage insurance coverage in all 50 states and the District of Columbia. The financial

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View this 10-K filing on SEC EDGAR