*13748202420100101*
PROPERTY AND CASUALTY COMPANIES - ASSOCIATION EDITION
QUARTERLY STATEMENT
AS OF MARCH 31, 2024
OF THE CONDITION AND AFFAIRS OF THE
Essent Guaranty of PA, Inc.
NAIC Group Code | 4694 | 4694 | NAIC Company Code 13748 | Employer's ID Number | 27-1440460 | |||||||||||||||||||||||
(Current) | (Prior) | |||||||||||||||||||||||||||
Organized under the Laws of | Pennsylvania | , State of Domicile or Port of Entry | PA | |||||||||||||||||||||||||
Country of Domicile | United States of America | |||||||||||||||||||||||||||
Incorporated/Organized | 11/19/2009 | Commenced Business | 03/15/2010 | |||||||||||||||||||||||||
Statutory Home Office | Two Radnor Corporate Center - 100 Matsonford Rd., 3rd Floor , | Radnor, PA, US 19087 | ||||||||||||||||||||||||||
(Street and Number) | (City or Town, State, Country and Zip Code) | |||||||||||||||||||||||||||
Main Administrative Office | Two Radnor Corporate Center - 100 Matsonford Rd., 3rd Floor | |||||||||||||||||||||||||||
(Street and Number) | ||||||||||||||||||||||||||||
Radnor, PA, US 19087 | , | 877-673-8190 | ||||||||||||||||||||||||||
(City or Town, State, Country and Zip Code) | (Area Code) (Telephone Number) | |||||||||||||||||||||||||||
Mail Address | Two Radnor Corporate Center - 100 Matsonford Rd., 3rd Floor | , | Radnor, PA, US 19087 | |||||||||||||||||||||||||
(Street and Number or P.O. Box) | (City or Town, State, Country and Zip Code) | |||||||||||||||||||||||||||
Primary Location of Books and Records | Two Radnor Corporate Center - 100 Matsonford Rd., 3rd Floor | |||||||||||||||||||||||||||
(Street and Number) | ||||||||||||||||||||||||||||
Radnor, PA, US 19087 | , | 877-673-8190 | ||||||||||||||||||||||||||
(City or Town, State, Country and Zip Code) | (Area Code) (Telephone Number) | |||||||||||||||||||||||||||
Internet Website Address | www.essent.us | |||||||||||||||||||||||||||
Statutory Statement Contact | Christopher | Rhoads | , | 610-225-1849 | ||||||||||||||||||||||||
(Name) | (Area Code) (Telephone Number) | |||||||||||||||||||||||||||
christopher.rhoads@essent.us | , | 610-386-2396 | ||||||||||||||||||||||||||
(E-mail Address) | (FAX Number) |
OFFICERS
President/CEO | Mark Anthony Casale | SVP/CFO | David Bruce Weinstock | |||||||||
SVP/CLO/Secretary | Mary Lourdes Gibbons | VP/Treasurer | Joseph James Manion Jr. | |||||||||
OTHER | ||||||||||||
DIRECTORS OR TRUSTEES | ||||||||||||
Mark Anthony Casale | Christopher Gerard Curran | Robert Emil Glanville | ||||||||||
Angela Louise Heise | Anu Karna | Roy James Kasmar | ||||||||||
Douglas John Pauls | ||||||||||||
State of | Pennsylvania | SS: | ||||||||||
County of | Delaware | |||||||||||
The officers of this reporting entity being duly sworn, each depose and say that they are the described officers of said reporting entity, and that on the reporting period stated above, all of the herein described assets were the absolute property of the said reporting entity, free and clear from any liens or claims thereon, except as herein stated, and that this statement, together with related exhibits, schedules and explanations therein contained, annexed or referred to, is a full and true statement of all the assets and liabilities and of the condition and affairs of the said reporting entity as of the reporting period stated above, and of its income and deductions therefrom for the period ended, and have been completed in accordance with the NAIC Annual Statement Instructions and Accounting Practices and Procedures manual except to the extent that: (1) state law may differ; or, (2) that state rules or regulations require differences in reporting not related to accounting practices and procedures, according to the best of their information, knowledge and belief, respectively. Furthermore, the scope of this attestation by the described officers also includes the related corresponding electronic filing with the NAIC, when required, that is an exact copy (except for formatting differences due to electronic filing) of the enclosed statement. The electronic filing may be requested by various regulators in lieu of or in addition to the enclosed statement.
Mark Anthony Casale | Mary Lourdes Gibbons | David Bruce Weinstock | ||||||
President/CEO | SVP/CLO/Secretary | SVP/CFO | ||||||
a. Is this an original filing? | Yes [ X ] No [ ] | |||||||
Subscribed and sworn to before me this | b. If no, | |||||||
6th | day of | May 2024 | 1. | State the amendment number | ||||
2. | Date filed | |||||||
3. | Number of pages attached | |||||||
Lois A. Chapla | ||||||||
Notary Public | ||||||||
06/11/2027 |
STATEMENT AS OF MARCH 31, 2024 OF THE Essent Guaranty of PA, Inc.
ASSETS
Current Statement Date | 4 | |||||
1 | 2 | 3 | December 31 | |||
Net Admitted Assets | Prior Year Net | |||||
Assets | Nonadmitted Assets | (Cols. 1 - 2) | Admitted Assets | |||
1. | Bonds | ................. 97,118,005 | ................................... | ................. | 97,118,005 | ................. 97,598,798 |
2. | Stocks: | |||||
2.1 Preferred stocks | ................................... | ................................... | ................................. | 0 | .................................0 | |
2.2 Common stocks | ................................... | ................................... | ................................. | 0 | .................................0 |
3. Mortgage loans on real estate:
3.1 First liens | ................................... | ................................... | 0 | 0 | ||||
3.2 Other than first liens | ................................... | ................................... | 0 | 0 | ||||
4. | Real estate: | |||||||
4.1 Properties occupied by the company (less $ | ||||||||
encumbrances) | ................................... | ................................... | 0 | 0 | ||||
4.2 Properties held for | the production of income (less | |||||||
$ | encumbrances) | ................................... | ................................... | .................................0 | .................................0 | |||
4.3 Properties held for sale (less $ | ||||||||
.......................................................................................encumbrances) | ................................... | ................................... | .................................0 | .................................0 | ||||
5. | Cash ($ | 1,860,877 ), cash equivalents | ||||||
($ | 8,636,144 | ) and short-term | ||||||
investments ($ | ................................... | ) | 10,497,021 | ................................... | 10,497,021 | 9,730,102 | ||
6. | Contract loans (including $ | ................................... premium notes) | ................................... | ................................... | 0 | 0 | ||
7. | Derivatives | ................................... | ................................... | 0 | 0 | |||
8. | Other invested assets | ................................... | ................................... | 0 | 0 | |||
9. | Receivables for securities | ................................... | ................................... | 0 | 0 | |||
10. | Securities lending reinvested collateral assets | ................................... | ................................... | 0 | 0 | |||
11. | Aggregate write-ins for invested assets | 0 | 0 | 0 | 0 | |||
12. | Subtotals, cash and invested assets (Lines 1 to 11) | 107,615,026 | 0 | 107,615,026 | 107,328,900 | |||
13. | Title plants less $ | charged off (for Title insurers | ||||||
only) | ................................... | ................................... | 0 | 0 | ||||
14. | Investment income due and accrued | 668,576 | ................................... | 668,576 | 705,896 |
15. Premiums and considerations:
15.1 | Uncollected premiums and agents' balances in the course of collection | 58,208 | 58,208 | 61,069 | ||
15.2 | Deferred premiums, agents' balances and installments booked but | |||||
...................................deferred and not yet due (including $ | ||||||
earned but unbilled premiums) | ................................... | 0 | 0 | |||
15.3 | Accrued retrospective premiums ($ | ) and | ||||
contracts subject to redetermination ($ | ) | ................................... | ................................... .................................0 | 0 |
16. Reinsurance:
16.1 | ....................................................Amounts recoverable from reinsurers | ................................... | ................................... | .................................0 | .................................0 | |
16.2 | Funds held by or deposited with reinsured companies | ................................... | ................................... | .................................0 | .................................0 | |
16.3 | Other amounts receivable under reinsurance contracts | ................................... | ................................... | .................................0 | .................................0 | |
17. | Amounts receivable relating to uninsured plans | ................................... | ................................... | .................................0 | .................................0 | |
18.1 | ....Current federal and foreign income tax recoverable and interest thereon | ................................... | ................................... | .................................0 | .................................0 | |
18.2 | Net deferred tax asset | ................................................................................... | ................... 3,662,759 | ................... 3,652,052 | ........................ 10,707 | ........................ 11,219 |
19. | Guaranty funds receivable or on deposit | ................................... | ................................... | .................................0 | .................................0 | |
20. | Electronic data processing equipment and software | ................................... | ................................... | .................................0 | .................................0 | |
21. | Furniture and equipment, including health care delivery assets | |||||
...................................($ | ................................... | ................................... | .................................0 | .................................0 | ||
22. | .........Net adjustment in assets and liabilities due to foreign exchange rates | ................................... | ................................... | .................................0 | .................................0 | |
23. | Receivables from parent, subsidiaries and affiliates | .......................177,293 | ................................... | .......................177,293 | ...................... 109,904 | |
24. | Health care ($ | ) and other amounts receivable | ................................... | ................................... | .................................0 | .................................0 |
25. | Aggregate write-ins for other than invested assets | .................................0 | .................................0 | .................................0 | .................................0 |
26. Total assets excluding Separate Accounts, Segregated Accounts and
Protected Cell Accounts (Lines 12 to 25) | 112,181,862 | 3,652,052 | 108,529,810 | 108,216,989 | |
27. | From Separate Accounts, Segregated Accounts and Protected Cell | ||||
Accounts | ................................... | ................................... | .................................0 | .................................0 | |
28. | Total (Lines 26 and 27) | 112,181,862 | 3,652,052 | 108,529,810 | 108,216,989 |
DETAILS OF WRITE-INS | |||||
1101. | ...................................................................................................................... | .................................... | .................................... | .................................... | .................................... |
1102. | ...................................................................................................................... | .................................... | .................................... | .................................... | .................................... |
1103. | ...................................................................................................................... | .................................... | .................................... | .................................... | .................................... |
1198. | Summary of remaining write-ins for Line 11 from overflow page | .................................0 | .................................0 | .................................0 | .................................0 |
1199. | Totals (Lines 1101 through 1103 plus 1198)(Line 11 above) | 0 | 0 | 0 | 0 |
2501. | ....................................................................................................................... | .................................... | .................................... | .................................... | .................................... |
2502. | ....................................................................................................................... | .................................... | .................................... | .................................... | .................................... |
2503. | ....................................................................................................................... | .................................... | .................................... | .................................... | .................................... |
2598. | Summary of remaining write-ins for Line 25 from overflow page | .................................0 | .................................0 | .................................0 | .................................0 |
2599. | Totals (Lines 2501 through 2503 plus 2598)(Line 25 above) | 0 | 0 | 0 | 0 |
2
STATEMENT AS OF MARCH 31, 2024 OF THE Essent Guaranty of PA, Inc.
LIABILITIES, SURPLUS AND OTHER FUNDS
1 | 2 | ||||||
Current | December 31, | ||||||
Statement Date | Prior Year | ||||||
1. | Losses (current accident year $ | 33,956 | ) | ...................... 562,460 | .......................603,634 | ||
2. | .......................................................................................Reinsurance payable on paid losses and loss adjustment expenses | ................................... | .................................0 | ||||
3. | Loss adjustment expenses | ..........................6,885 | .......................... 7,239 | ||||
4. | .............................................................................Commissions payable, contingent commissions and other similar charges | ................................... | ................................... | ||||
5. | ...............................................................................................................Other expenses (excluding taxes, licenses and fees) | ........................ 45,106 | ........................ 56,685 | ||||
6. | ...................................................................................Taxes, licenses and fees (excluding federal and foreign income taxes) | ................................... | ................................... | ||||
7.1 | Current federal and foreign income taxes (including $ ................................... on realized capital gains (losses)) | ................... 1,215,273 | ...................... 971,519 | ||||
7.2 | Net deferred tax liability | ................................... | ................................... | ||||
8. | Borrowed money $ | and interest thereon $ | .............................................. | ................................... | ................................... | ||
9. | Unearned premiums (after deducting unearned premiums for ceded reinsurance of $ | and | |||||
including warranty reserves of $ | and accrued accident and health experience rating refunds | ||||||
including $ | ...............................for medical loss ratio rebate per the Public Health Service Act) | ........................ 55,972 | ........................ 66,073 | ||||
10. | Advance premium | ................................... | ................................... | ||||
11. | Dividends declared and unpaid: | ||||||
11.1 Stockholders | ................................... | ................................... | |||||
11.2 Policyholders | ................................... | ................................... | |||||
12. | ........................................................................................Ceded reinsurance premiums payable (net of ceding commissions) | ................................... | .................................0 | ||||
13. | ..................................................................................................................Funds held by company under reinsurance treaties | ................................... | .................................0 | ||||
14. | ..............................................................................................Amounts withheld or retained by company for account of others | ................................... | ................................... | ||||
15. | Remittances and items not allocated | ................................... | ................................... | ||||
16. | Provision for reinsurance (including $ | ................................... | certified) | ................................... | .................................0 | ||
17. | ...................................................................................Net adjustments in assets and liabilities due to foreign exchange rates | ................................... | ................................... | ||||
18. | Drafts outstanding | ................................... | ................................... | ||||
19. | ............................................................................................................................Payable to parent, subsidiaries and affiliates | .......................203,532 | ...................... 223,529 | ||||
20. | Derivatives | .................................0 | .................................0 | ||||
21. | Payable for securities | ................................... | ................................... | ||||
22. | Payable for securities lending | ................................... | ................................... | ||||
23. | ......................................................................................................................Liability for amounts held under uninsured plans | ................................... | ................................... | ||||
24. | Capital notes $ | and interest thereon $ | ................................................. | ................................... | ................................... | ||
25. | Aggregate write-ins for liabilities | 50,339,570 | 52,243,993 | ||||
26. | Total liabilities excluding protected cell liabilities (Lines 1 through 25) | 52,428,798 | 54,172,672 | ||||
27. | Protected cell liabilities | ................................... | ................................... | ||||
28. | Total liabilities (Lines 26 and 27) | ................. 52,428,798 | ................. 54,172,672 | ||||
29. | ............................................................................................................................Aggregate write-ins for special surplus funds | .................................0 | .................................0 | ||||
30. | Common capital stock | ...................2,500,000 | ...................2,500,000 | ||||
31. | Preferred capital stock | ................................... | ................................... | ||||
32. | Aggregate write-ins for other than special surplus funds | .................................0 | .................................0 | ||||
33. | Surplus notes | ................................... | ................................... | ||||
34. | .......................................................................................................................................Gross paid in and contributed surplus | ................. 36,500,000 | ................. 36,500,000 | ||||
35. | Unassigned funds (surplus) | 17,101,012 | 15,044,317 |
36. Less treasury stock, at cost:
36.1 | shares common (value included in Line 30 | ...................................$ | ) | ................................... | ................................... | |
36.2 | shares preferred (value included in Line 31 | $ | ) | |||
37. | Surplus as regards policyholders (Lines 29 to 35, less 36) | 56,101,012 | 54,044,317 | |||
38. | Totals (Page 2, Line 28, Col. 3) | 108,529,810 | 108,216,989 | |||
DETAILS OF WRITE-INS | ||||||
2501. | ................................................................................................................................................Statutory contingency reserve | ................. 50,339,570 | ................. 52,243,993 | |||
2502 | .................................... | |||||
2503 | .................................... | |||||
2598. | ..............................................................................................Summary of remaining write-ins for Line 25 from overflow page | .................................0 | .................................0 | |||
2599. | Totals (Lines 2501 through 2503 plus 2598)(Line 25 above) | 50,339,570 | 52,243,993 | |||
2901 | .................................... | |||||
2902 | .................................... | |||||
2903 | .................................... | |||||
2998. | ..............................................................................................Summary of remaining write-ins for Line 29 from overflow page | .................................0 | .................................0 | |||
2999. | Totals (Lines 2901 through 2903 plus 2998)(Line 29 above) | 0 | 0 | |||
3201 | .................................... | |||||
3202 | .................................... | |||||
3203 | .................................... | |||||
3298. | ..............................................................................................Summary of remaining write-ins for Line 32 from overflow page | .................................0 | .................................0 | |||
3299. | Totals (Lines 3201 through 3203 plus 3298)(Line 32 above) | 0 | 0 |
3
STATEMENT AS OF MARCH 31, 2024 OF THE Essent Guaranty of PA, Inc.
STATEMENT OF INCOME
1 | 2 | 3 | ||||||
Current | Prior Year | Prior Year Ended | ||||||
Year to Date | to Date | December 31 | ||||||
UNDERWRITING INCOME | ||||||||
1. | Premiums earned: | |||||||
1.1 Direct (written $ | ) | ................................... | ................................... | ................................... | ||||
1.2 Assumed (written $ | 219,781 | ) | ...................... 229,882 | .......................337,276 | ...................1,155,104 | |||
1.3 Ceded (written $ | ) | ................................... | ................................... | ................................... | ||||
1.4 Net (written $ | 219,781 ) | ...................... 229,882 | .......................337,276 | ...................1,155,104 | ||||
DEDUCTIONS: | ||||||||
2. | Losses incurred (current accident year $ | 33,956 | ): | |||||
2.1 Direct | ................................... | ................................... | ................................... | |||||
2.2 Assumed | (31,116) | (69,387) | .....................(167,471) | |||||
2.3 Ceded | ................................... | ................................... | ................................... | |||||
2.4 Net | .......................(31,116) | .......................(69,387) | .....................(167,471) | |||||
3. | ....................................................................................................Loss adjustment expenses incurred | ............................(354) | ........................ (1,338) | ........................ (2,588) | ||||
4. | .................................................................................................Other underwriting expenses incurred | ...................... 561,194 | ...................... 651,746 | ................... 2,152,157 | ||||
5. | Aggregate write-ins for underwriting deductions | |||||||
0 | 0 | .................................0 | ||||||
6. | Total underwriting deductions (Lines 2 through 5) | ............................................................................... | 529,724 | 581,021 | ...................1,982,098 | |||
7. | .............................................................................................................Net income of protected cells | |||||||
8. | Net underwriting gain (loss) (Line 1 minus Line 6 + Line 7) | (299,842) | (243,745) | .....................(826,994) | ||||
INVESTMENT INCOME | ||||||||
9. | Net investment income earned | 812,579 | 738,029 | ................... 3,113,175 | ||||
10. | Net realized capital gains (losses) | less capital gains tax of $ | (2) | (6) | 0 | |||
11. | Net investment gain (loss) (Lines 9 + 10) | 812,573 | 738,029 | ................... 3,113,175 | ||||
OTHER INCOME | ||||||||
12. | Net gain or (loss) from agents' or premium balances charged off (amount recovered | |||||||
$ | amount charged off $ | ) | .................................0 | .................................0 | .................................0 | |||
13. | ......................................................................Finance and service charges not included in premiums | ................................... | ................................... | ................................... | ||||
14. | Aggregate write-ins for miscellaneous income | 0 | 0 | 0 | ||||
15. | Total other income (Lines 12 through 14) | 0 | 0 | 0 |
16. Net income before dividends to policyholders, after capital gains tax and before all other federal
and foreign income taxes (Lines 8 + 11 + 15) | .......................512,731 | 494,284 | 2,286,181 |
- Dividends to policyholders ...................................................................................................................
- Net income, after dividends to policyholders, after capital gains tax and before all other federal and
foreign income taxes (Line 16 minus Line 17) | 512,731 | 494,284 | 2,286,181 | ||
19. | Federal and foreign income taxes incurred | 359,947 | 606,701 | 5,341,674 | |
20. | Net income (Line 18 minus Line 19)(to Line 22) | 152,784 | (112,417) | (3,055,493) | |
CAPITAL AND SURPLUS ACCOUNT | |||||
21. | Surplus as regards policyholders, December 31 prior year | 54,044,317 | 52,608,965 | 52,608,965 | |
22. | Net income (from Line 20) | 152,784 | (112,417) | (3,055,493) | |
23. | Net transfers (to) from Protected Cell accounts | ................................... | ................................... | ................................... | |
24. | Change in net unrealized capital gains (losses) less capital gains tax of $ | ................................... | ................................... | ................................... | |
25. | Change in net unrealized foreign exchange capital gain (loss) | ................................... | ................................... | ................................... | |
26. | Change in net deferred income tax | ............................... 38 | ........................ (1,164) | ................... 3,533,494 | |
27. | Change in nonadmitted assets | ||||
............................(550) | ............................... 43 | ................. (3,542,850) | |||
28. | Change in provision for reinsurance | ................................... | ................................... | .................................0 | |
29. | Change in surplus notes | ................................... | ................................... | ................................... | |
30. | Surplus (contributed to) withdrawn from protected cells | ................................... | ................................... | ................................... | |
31. | Cumulative effect of changes in accounting principles | ................................... | ................................... | ................................... | |
32. | Capital changes: | ||||
32.1 Paid in | ................................... | ................................... | ................................... | ||
32.2 Transferred from surplus (Stock Dividend) | ................................... | ................................... | ................................... | ||
32.3 Transferred to surplus | |||||
................................... | ................................... | ................................... | |||
33. Surplus adjustments:
33.1 Paid in | .................................0 | .................................0 | .................................0 | ||
33.2 Transferred to capital (Stock Dividend) | |||||
................................... | ................................... | ................................... | |||
33.3 Transferred from capital | ................................... | ................................... | ................................... | ||
34. | Net remittances from or (to) Home Office | ................................... | ................................... | ................................... | |
35. | Dividends to stockholders | ................................... | ................................... | ................................... | |
36. | Change in treasury stock | ................................... | ................................... | .................................0 | |
37. | Aggregate write-ins for gains and losses in surplus | 1,904,423 | 642,817 | 4,500,201 | |
38. | Change in surplus as regards policyholders (Lines 22 through 37) | 2,056,695 | 529,279 | 1,435,352 | |
39. | Surplus as regards policyholders, as of statement date (Lines 21 plus 38) | 56,101,012 | 53,138,244 | 54,044,317 | |
DETAILS OF WRITE-INS | |||||
0501 | .................................... | .................................... | .................................... | ||
0502 | .................................... | .................................... | .................................... | ||
0503 | .................................... | .................................... | .................................... | ||
0598. | Summary of remaining write-ins for Line 5 from overflow page | 0 | 0 | .................................0 | |
0599. | Totals (Lines 0501 through 0503 plus 0598)(Line 5 above) | 0 | 0 | 0 | |
1401 | .................................... | .................................... | .................................... | ||
1402 | .................................... | .................................... | .................................... | ||
1403 | .................................... | .................................... | .................................... | ||
1498. | Summary of remaining write-ins for Line 14 from overflow page | .................................0 | .................................0 | .................................0 | |
1499. | Totals (Lines 1401 through 1403 plus 1498)(Line 14 above) | 0 | 0 | 0 | |
3701. | Decrease (increase) in contingency reserve | 1,904,423 | 642,817 | ...................4,500,201 | |
3702 | .................................... | .................................... | .................................... | ||
3703 | .................................... | .................................... | .................................... | ||
3798. | Summary of remaining write-ins for Line 37 from overflow page | .................................0 | .................................0 | .................................0 | |
3799. | Totals (Lines 3701 through 3703 plus 3798)(Line 37 above) | 1,904,423 | 642,817 | 4,500,201 |
4
STATEMENT AS OF MARCH 31, 2024 OF THE Essent Guaranty of PA, Inc.
CASH FLOW
Cash from Operations
1
Current Year
To Date
2
Prior Year
To Date
3
Prior Year Ended
December 31
1. | Premiums collected net of reinsurance | ...................... 222,642 | .......................335,321 | ................... 1,117,500 | |
2. | Net investment income | .......................970,153 | .......................887,342 | ................... 3,559,159 | |
3. | Miscellaneous income | 0 | 0 | 0 | |
4. | Total (Lines 1 to 3) | 1,192,795 | 1,222,663 | 4,676,659 | |
5. | Benefit and loss related payments | ........................ 10,058 | ........................ 21,530 | ........................ 33,159 | |
6. | .................Net transfers to Separate Accounts, Segregated Accounts and Protected Cell Accounts | .................................0 | .................................0 | .................................0 | |
7. | ...............................................Commissions, expenses paid and aggregate write-ins for deductions | .......................572,773 | ...................... 589,958 | ................... 2,146,876 | |
8. | Dividends paid to policyholders | .................................0 | .................................0 | .................................0 | |
9. | Federal and foreign income taxes paid (recovered) net of $ | tax on capital | |||
gains (losses) | 116,191 | 38,609 | 4,286,137 | ||
10. | Total (Lines 5 through 9) | 699,022 | 650,097 | 6,466,172 | |
11. | Net cash from operations (Line 4 minus Line 10) | 493,773 | 572,566 | (1,789,513) | |
Cash from Investments
12. Proceeds from investments sold, matured or repaid:
12.1 | Bonds | ...................... 395,006 | ................... 1,637,863 | ................... 7,824,778 |
12.2 | Stocks | .................................0 | .................................0 | .................................0 |
12.3 | Mortgage loans | .................................0 | .................................0 | .................................0 |
12.4 | Real estate | .................................0 | .................................0 | .................................0 |
12.5 | Other invested assets | .................................0 | .................................0 | .................................0 |
12.6 | Net gains or (losses) on cash, cash equivalents and short-term investments | .................................0 | .................................0 | .................................0 |
12.7 | Miscellaneous proceeds | 0 | 0 | 0 |
12.8 Total investment proceeds (Lines 12.1 to 12.7) | ...................... 395,006 | ................... 1,637,863 | ................... 7,824,778 |
13. Cost of investments acquired (long-term only):
13.1 | Bonds | .................................0 | .................................0 | ........................ 42,103 | |
13.2 | Stocks | .................................0 | .................................0 | .................................0 | |
13.3 | Mortgage loans | .................................0 | .................................0 | .................................0 | |
13.4 | Real estate | .................................0 | .................................0 | .................................0 | |
13.5 | Other invested assets | .................................0 | .................................0 | .................................0 | |
13.6 | Miscellaneous applications | 0 | 0 | 0 | |
13.7 | Total investments acquired (Lines 13.1 to 13.6) | 0 | 0 | 42,103 | |
14. | Net increase (or decrease) in contract loans and premium notes | 0 | 0 | 0 | |
15. | Net cash from investments (Line 12.8 minus Line 13.7 and Line 14) | 395,006 | 1,637,863 | 7,782,675 | |
Cash from Financing and Miscellaneous Sources | |||||
16. | Cash provided (applied): | ||||
16.1 | Surplus notes, capital notes | ||||
.................................0 | .................................0 | .................................0 | |||
16.2 | Capital and paid in surplus, less treasury stock | .................................0 | .................................0 | .................................0 | |
16.3 | Borrowed funds | .................................0 | .................................0 | .................................0 | |
16.4 | Net deposits on deposit-type contracts and other insurance liabilities | .................................0 | .................................0 | .................................0 | |
..........................................................................................................16.5 Dividends to stockholders | .................................0 | .................................0 | .................................0 | ||
....................................................................................................16.6 Other cash provided (applied) | (121,861) | (495,757) | (587,686) | ||
17. | Net cash from financing and miscellaneous sources (Line 16.1 through Line 16.4 minus Line 16.5 | ||||
plus Line 16.6) | (121,861) | (495,757) | (587,686) | ||
RECONCILIATION OF CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS | |||||
18. | .Net change in cash, cash equivalents and short-term investments (Line 11, plus Lines 15 and 17) | ...................... 766,918 | ................... 1,714,673 | ................... 5,405,475 | |
19. | Cash, cash equivalents and short-term investments: | ||||
19.1 | Beginning of year | ................... 9,730,102 | ................... 4,324,627 | ................... 4,324,627 | |
19.2 End of period (Line 18 plus Line 19.1) | 10,497,021 | 6,039,300 | 9,730,102 |
Note: Supplemental disclosures of cash flow information for non-cash transactions:
5
STATEMENT AS OF MARCH 31, 2024 OF THE ESSENT GUARANTY OF PA, INC.
NOTES TO FINANCIAL STATEMENTS
1. Summary of Significant Accounting Policies
- The financial statements of Essent Guaranty of PA, Inc. ("the Company") are presented on the basis of accounting practices prescribed or permitted by the Pennsylvania Insurance Department and the NAIC Accounting Practices and Procedures manual.
A reconciliation of the Company's net income and capital and surplus between NAIC statutory accounting practices and procedures and practices prescribed and permitted by the State of Pennsylvania is shown below:
F/S | F/S | ||||||||||
SSAP # | Page | Line # | 2024 | 2023 | |||||||
NET INCOME | |||||||||||
(1) | Essent Guaranty of PA, Inc. state basis (Page 4, Line 20, Columns 1 & 3) | XXX | XXX | XXX | $ | 152,784 | $ (3,055,493) | ||||
(2) | State Prescribed Practices that increase/(decrease) NAIC SAP: | - | - | ||||||||
(3) | State Permitted Practices that increase/(decrease) NAIC SAP: | - | - | ||||||||
(4) | NAIC SAP | (1-2-3=4) | XXX | XXX | XXX | $ | 152,784 | $ (3,055,493) | |||
SURPLUS | |||||||||||
(5) | Essent Guaranty of PA, Inc. state basis (Page 3, Line 37, Columns 1 & 2) | XXX | XXX | XXX | $ | 56,101,012 | $ 54,044,317 | ||||
(6) | State Prescribed Practices that increase/(decrease) NAIC SAP: | - | - | ||||||||
(7) | State Permitted Practices that increase/(decrease) NAIC SAP: | - | - | ||||||||
(8) | NAIC SAP | (5-6-7=8) | XXX | XXX | XXX | $ | 56,101,012 | $ 54,044,317 | |||
- No significant change from year-end 2023.
- The Company uses the following accounting policies:
- No significant change from year-end 2023.
- Highest-qualityand high-quality (NAIC designations 1 and 2, respectively) bonds not backed by other loans are stated at amortized cost and are amortized using the interest method. All other bonds not backed by other loans (NAIC designations 3 to 6) are stated at the lower of amortized cost or fair value. The Company does not own any mandatory convertible securities or SVO-Identified investments identified in SSAP No. 26R.
(3)-(5) No significant change from year-end 2023.
- Loan-backedsecurities are stated at amortized cost. The retrospective adjustment method is used to value these securities.
(7)-(13) No significant change from year-end 2023.
- Management has not identified any issues to raise substantial doubt regarding the Company's ability to continue as a going concern.
- Accounting Changes and Correction of ErrorsNo significant change from year-end 2023.
- Business Combinations and GoodwillNo significant change from year-end 2023.
- Discontinued Operations
No significant change from year-end 2023. - Investments
- No significant change from year-end 2023.
- No significant change from year-end 2023.
- No significant change from year-end 2023.
- Loan Backed Securities
- The Company uses widely accepted models for prepayment assumptions in valuing mortgage-backed securities with inputs from major third party data providers.
V
STATEMENT AS OF MARCH 31, 2024 OF THE ESSENT GUARANTY OF PA, INC.
NOTES TO FINANCIAL STATEMENTS
- The Company has not recognized any other-than-temporary impairments on loan-backed securities.
- The Company has not recognized any other-than-temporary impairments where the present value of cash flows expected to be collected is less than the amortized cost basis of the securities
- All impaired loan-backed securities (fair value is less than cost or amortized cost) for which an other-than- temporary impairment has not been recognized in earnings as a realized loss:
The aggregate amount of unrealized losses: - Less than 12 months: $5,673
- 12 Months or longer: $2,260,773
The aggregate related fair value of securities with unrealized losses:
- Less than 12 months: $2,734,606
- 12 Months or longer: $27,040,848
- In determining whether an impairment is other-than-temporary, the Company assesses its intent to sell these securities and whether it will be required to sell these securities before the recovery of their amortized cost basis. The decline in fair values of these investment securities is principally associated with the changes in the interest rate environment subsequent to their purchase.
- The Company does not have any repurchase agreement investments and/or securities lending transactions.
- The Company does not have any repurchase agreements transactions accounted for as secured borrowings.
- The Company does not have any reverse repurchase agreement transactions accounted for as secured borrowings.
- The Company does not have any repurchase agreements transactions accounted for as a sale.
- The Company does not have reserve repurchase agreements transactions accounted for as a sale.
- No significant change from year-end 2023.
- No significant change from year-end 2023.
- No significant change from year-end 2023.
- The Company does not have any working capital finance investments.
- The Company does not offset or net assets or liabilities associated with derivatives, repurchase and reverse repurchases, or securities borrowing and securities lending assets and liabilities.
- No significant change from year-end 2023.
- No significant change from year-end 2023.
- No significant change from year-end 2023.
- The Company does not participate in a cash pooling arrangement.
- Joint Ventures, Partnerships and Limited Liability CompaniesNo significant change from year-end 2023.
- Investment Income
No significant change from year-end 2023. - Derivative Instruments
The Company had no derivative instruments at March 31, 2024. - Income Taxes
- - I. No significant change from year-end 2023.
- Information concerning Parent, Subsidiaries, Affiliates, and Other Related Parties
- - N. No significant change from year-end 2023.
- Debt
- No significant change from year-end 2023.
- The Company does not have any agreements with the Federal Home Loan Bank (FHLB).
- Retirement Plans, Deferred Compensation, Postemployment Benefits and Compensated Absences and Other Postretirement Benefit Plans
A, B, The Company has no defined benefit plans.
C & D
- No significant change from year-end 2023.
VNQ
STATEMENT AS OF MARCH 31, 2024 OF THE ESSENT GUARANTY OF PA, INC.
NOTES TO FINANCIAL STATEMENTS
- No significant change from year-end 2023.
- No significant change from year-end 2023.
- No significant change from year-end 2023.
- No significant change from year-end 2023.
- Capital and Surplus, Dividend Restrictions and Quasi-ReorganizationsNo significant change from year-end 2023.
- Liabilities, Contingencies and AssessmentsNo significant change from year-end 2023.
- Leases
No significant change from year-end 2023. - Information About Financial Instruments with Off-Balance Sheet Risk and Financial Instruments with Concentrations of Credit Risk
No significant change from year-end 2023. - Sale, Transfer and Servicing of Financial Assets and Extinguishments of Liabilities
The Company did not have any transfers of receivables reported as sales, transfer and servicing of financial assets, or wash sales. - Gain or Loss to the Reporting Entity from Uninsured A & H Plans and the Uninsured Portion of Partially Insured Plans
No significant change from year-end 2023. - Direct Premium Written by Managing General Agents/Third Party AdministratorsNo significant change from year-end 2023.
- Fair Value Measurements
- 1) Fair value measurements as of March 31, 2024:
Assets at Fair Value | |||||||||
Description | Level 1 | Level 2 | Level 3 | Total | |||||
Cash Equivalents | |||||||||
Other Money Market Mutual Funds | $ | 8,636,144 | $ | - | $ | - | $ | 8,636,144 | |
Total Cash Equivalents | 8,636,144 | - | - | 8,636,144 | |||||
Total Assets at Fair Value | $ | 8,636,144 | $ | - | $ | - | $ | 8,636,144 | |
- Fair value measurements in Level 3 - None.
- Level 3 gains or losses for the period recognized in income or surplus - None.
- Level 3 purchases, sales, issues and settlements - None.
- There were no transfers into or out of Level 3.
- Transfers between all levels are recognized as of the end of the quarter in which the transfer occurs
- There are no Level 2 or Level 3 securities measured at fair value.
- There are no derivative assets or liabilities.
B. None.
VNR
STATEMENT AS OF MARCH 31, 2024 OF THE ESSENT GUARANTY OF PA, INC.
NOTES TO FINANCIAL STATEMENTS
- Aggregate Fair Value of Financial Instruments
March 31, 2024 | ||||||||||||
Aggregate | Admitted | Not Practicable | ||||||||||
Type of Financial Instrument | Fair Value | Assets | Level 1 | Level 2 | Level 3 | (Carrying Value) | ||||||
Financial Assets: | ||||||||||||
Bonds | $ | 92,019,417 | $ | 97,118,005 | $ | 14,503,010 | $ | 77,516,407 | $ | - | $ | - |
Cash equivalents | 8,636,144 | 8,636,144 | 8,636,144 | - | - | - | ||||||
December 31, 2023 | ||||||||||||
Aggregate | Admitted | Not Practicable | ||||||||||
Type of Financial Instrument | Fair Value | Assets | Level 1 | Level 2 | Level 3 | (Carrying Value) | ||||||
Financial Assets: | ||||||||||||
Bonds | $ | 92,776,007 | $ | 97,598,799 | $ | 14,515,630 | $ | 78,260,377 | $ | - | $ | - |
Cash equivalents | 7,291,580 | 7,291,580 | 7,291,580 | - | - | - |
The following methods and assumptions were used in estimating fair values of financial instruments:
- Bonds, short-term investments and cash equivalents - Bonds, short-term investments and cash equivalents are valued using quoted market prices in active markets, when available, and classified as Level 1 of the fair value hierarchy. Investments are classified as Level 2 in 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. Pricing services are used for valuation of all investments.
- None.
- None.
-
Other Items
No significant change from year-end 2023. - Events Subsequent
The Company has considered subsequent events through May 6, 2024. - Reinsurance
No significant change from year-end 2023. - Retrospectively Rated Contracts & Contracts Subject to Redetermination
The Company does not have any retrospective rated contracts or contracts subject to redetermination. - Changes to Incurred Losses and LAE
-
Reserves as of December 31, 2023 were $610,873. For the period ended March 31, 2024, $10,058 was paid for incurred claims and claim adjustment expenses attributable to insured events of prior years. Reserves remaining for prior years are now $533,018 as a result of re-estimation of unpaid claims and claim adjustment expenses.
Therefore, there has been a $67,797 favorable prior-year development during the period of December 31, 2023 to March 31, 2024. The decrease is generally the result of ongoing analysis of recent loss development trends including the impact of previously identified defaults that cured. Original estimates are increased or decreased as additional information becomes known regarding individual claims. The Company does not adjust premiums based on past claim activity. - No significant change from year-end 2023.
-
Reserves as of December 31, 2023 were $610,873. For the period ended March 31, 2024, $10,058 was paid for incurred claims and claim adjustment expenses attributable to insured events of prior years. Reserves remaining for prior years are now $533,018 as a result of re-estimation of unpaid claims and claim adjustment expenses.
- Intercompany Pooling ArrangementsNo significant change from year-end 2023.
- Structured Settlements
No significant change from year-end 2023. - Healthcare Receivables
No significant change from year-end 2023. - Participating Policies
No significant change from year-end 2023. - Premium Deficiency Reserve
No significant change from year-end 2023.
VNS
STATEMENT AS OF MARCH 31, 2024 OF THE ESSENT GUARANTY OF PA, INC.
NOTES TO FINANCIAL STATEMENTS
-
High Deductibles
No significant change from year-end 2023. - Discounting of Liabilities for Unpaid Losses or Unpaid Loss Adjustment ExpensesNo significant change from year-end 2023.
- Asbestos/Environmental Reserves
No significant change from year-end 2023. - Subscriber Savings Accounts
No significant change from year-end 2023. - Multiple Peril Crop Insurance
No significant change from year-end 2023.
36. Financial Guaranty Insurance
The Company does not write financial guaranty insurance.
VNT
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Essent Group Ltd. published this content on 16 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 May 2024 17:54:02 UTC.