Essent : Guaranty Q2 2022

*13634202220100102*

PROPERTY AND CASUALTY COMPANIES - ASSOCIATION EDITION

QUARTERLY STATEMENT

AS OF JUNE 30, 2022

OF THE CONDITION AND AFFAIRS OF THE

ESSENT GUARANTY, INC.

NAIC Group Code

4694

4694

NAIC Company Code 13634

Employer's ID Number

26-3728115

(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

11/14/2008

Commenced Business

07/09/2009

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

David Weinstock

,

610-230-0569

(Name)

(Area Code) (Telephone Number)

[e-mail]

,

610-386-2396

(E-mail Address)

(FAX Number)

OFFICERS

CEO	Mark Anthony Casale	SVP/CLO/Secretary	Mary Lourdes Gibbons
President	Christopher Gerard Curran #	CAO/Interim CFO	David Bruce Weinstock #

OTHER

		William Daniel Kaiser, SVP/COO			Joseph James Manion Jr., VP/Treasurer		Anthony David Shore, VP/Assistant Secretary
					DIRECTORS OR TRUSTEES
		Mark Anthony Casale			Christopher Gerard Curran #		Robert Emil Glanville
		Angela Louise Heise			Roy James Kasmar		Douglas John Pauls
State of	Pennsylvania			SS:
County of	Philadelphia

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.

	Christopher Gerard Curran		Mary Lourdes Gibbons		David Bruce Weinstock
		President		SVP/CLO/Secretary		CAO/Interim CFO
						a. Is this an original filing?	Yes [ X ] No [ ]
Subscribed and sworn to before me this			b. If no,
8th		day of		August 2022		1. State the amendment number
					2.	Date filed
					3.	Number of pages attached
Lois A. Chapla

Notary Public 06/11/2023

STATEMENT AS OF JUNE 30, 2022 OF THE ESSENT GUARANTY, 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	2,989,832,589			2,989,832,589	3,034,059,987
2.	Stocks:
	2.1 Preferred stocks				0	0
	2.2 Common stocks	868,877	228,377		640,500	656,500

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 ($	59,381,885 ), cash equivalents
	($	69,910,147	) and short-term
	investments ($	14,008,998 )	143,301,030		143,301,030	174,795,037
6.	Contract loans (including $	premium notes)			0	0
7.	Derivatives					0	0
8.	Other invested assets		102,906,455	0	102,906,455	81,389,854
9.	Receivables for securities		204,527		204,527	7,590
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)	3,237,113,478	228,377	3,236,885,101	3,290,908,968
13.	Title plants less $	charged off (for Title insurers
	only)					0	0
14.	Investment income due and accrued	19,052,732		19,052,732	18,855,613
15.	Premiums and considerations:
	15.1 Uncollected premiums and agents' balances in the course of collection	39,797,768		39,797,768	37,962,102

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			47,392,747	20,254,594	27,138,153	25,958,463
19.	Guaranty funds receivable or on deposit				0	0
20.	Electronic data processing equipment and software		3,568,876	3,073,369	495,507	692,485
21.	Furniture and equipment, including health care delivery assets
	($	)		1,181,513	1,181,513	0	0
22.	Net adjustment in assets and liabilities due to foreign exchange rates			0	0
23.	Receivables from parent, subsidiaries and affiliates		462,522	423,655	38,867	55,900
24.	Health care ($	) and other amounts receivable			0	0
25.	Aggregate write-ins for other than invested assets		83,370,023	82,945,023	425,000	425,000
26.	Total assets excluding Separate Accounts, Segregated Accounts and
	Protected Cell Accounts (Lines 12 to 25)		3,431,939,659	108,106,531	3,323,833,128	3,374,858,531

27. From Separate Accounts, Segregated Accounts and Protected Cell

	Accounts			0	0
28.	Total (Lines 26 and 27)	3,431,939,659	108,106,531	3,323,833,128	3,374,858,531
	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.	Prepaid expenses	82,945,023	82,945,023	0	0
2502.	Accounts receivable	425,000		425,000	425,000
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)	83,370,023	82,945,023	425,000	425,000

2

STATEMENT AS OF JUNE 30, 2022 OF THE ESSENT GUARANTY, INC.

LIABILITIES, SURPLUS AND OTHER FUNDS

			1	2
			Current	December 31,
			Statement Date	Prior Year
1.	Losses (current accident year $	28,633,247 )	139,773,505	276,244,439
2.	Reinsurance payable on paid losses and loss adjustment expenses		0
3.	Loss adjustment expenses		1,288,443	1,746,954

4. Commissions payable, contingent commissions and other similar charges

5.	Other expenses (excluding taxes, licenses and fees)				29,843,475	35,775,327
6.	Taxes, licenses and fees (excluding federal and foreign income taxes)				960,870	1,394,618
7.1	Current federal and foreign income taxes (including $	on realized capital gains (losses))		8,705,123	1,855,664
7.2	Net deferred tax liability
8.	Borrowed money $	and interest thereon $
9.	Unearned premiums (after deducting unearned premiums for ceded reinsurance of $	46,987,340	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)		121,129,031	135,533,617
10.	Advance premium
11.	Dividends declared and unpaid:
	11.1 Stockholders
	11.2 Policyholders
12.	Ceded reinsurance premiums payable (net of ceding commissions)				65,885,714	74,139,460
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		35,176	40,087
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		5,687,412	4,366,288
20.	Derivatives		0	0
21.	Payable for securities		2,902,959	7,224,684
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			1,928,826,606	1,792,671,074
26.	Total liabilities excluding protected cell liabilities (Lines 1 through 25)		2,305,038,314	2,330,992,212
27.	Protected cell liabilities
28.	Total liabilities (Lines 26 and 27)			2,305,038,314	2,330,992,212
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			702,810,000	702,810,000
35.	Unassigned funds (surplus)				313,484,814	338,556,319
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)			1,018,794,814	1,043,866,319
38.	Totals (Page 2, Line 28, Col. 3)			3,323,833,128	3,374,858,531
	DETAILS OF WRITE-INS
2501.	Contingency reserve				1,928,826,606	1,792,671,074
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)			1,928,826,606
		1,792,671,074
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 JUNE 30, 2022 OF THE ESSENT GUARANTY, 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 $	427,775,921	)		445,044,242	469,546,605	935,906,891
	1.2 Assumed (written $		)				0
	1.3 Ceded (written $	157,266,994	)		160,130,731	170,450,935	342,468,430
	1.4 Net (written $	270,508,927 )			284,913,511	299,095,670	593,438,461
		DEDUCTIONS:
2.	Losses incurred (current accident year $	28,672,434	):
	2.1 Direct				(193,659,214)	50,886,470	39,733,532
	2.2 Assumed						0
	2.3 Ceded				(58,672,485)	21,341,675	18,515,344
	2.4 Net				(134,986,729)	29,544,795	21,218,188
3.	Loss adjustment expenses incurred			(358,145)	(768,252)	(1,576,715)
4.	Other underwriting expenses incurred			46,978,174	46,554,556	93,096,933
5.	Aggregate write-ins for underwriting deductions		0	0	0
6.	Total underwriting deductions (Lines 2 through 5)		(88,366,700)	75,331,099	112,738,406
7.	Net income of protected cells
8.	Net underwriting gain or (loss) (Line 1 minus Line 6 + Line 7)		373,280,211	223,764,571	480,700,055
		INVESTMENT INCOME
9.	Net investment income earned			43,168,964	31,140,783	65,076,189
10.	Net realized capital gains (losses) less capital gains tax of $	803,923	2,905,920	(124,619)	76,380
11.	Net investment gain (loss) (Lines 9 + 10)			46,074,884	31,016,164	65,152,569
		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			2,625,000	3,229,066	6,355,387
15.	Total other income (Lines 12 through 14)			2,625,000	3,229,066	6,355,387
16.	Net income before dividends to policyholders, after capital gains tax and before all other federal
	and foreign income taxes (Lines 8 + 11 + 15)			421,980,095	258,009,801	552,208,011
17.	Dividends to policyholders
18.	Net income, after dividends to policyholders, after capital gains tax and before all other federal and
	foreign income taxes (Line 16 minus Line 17)			421,980,095	258,009,801	552,208,011
19.	Federal and foreign income taxes incurred			54,697,361	23,655,680	54,556,435
20.	Net income (Line 18 minus Line 19)(to Line 22)		367,282,734	234,354,121	497,651,576
		CAPITAL AND SURPLUS ACCOUNT
21.	Surplus as regards policyholders, December 31 prior year		1,043,866,319	1,048,878,385	1,048,878,385
22.	Net income (from Line 20)				367,282,734	234,354,121	497,651,576
23.	Net transfers (to) from Protected Cell accounts
24.	Change in net unrealized capital gains (losses)	less capital gains tax of $	10,486,622	15,284,348	37,591,328
25.	Change in net unrealized foreign exchange capital gain (loss)
26.	Change in net deferred income tax			1,273,565	158,599	(9,511,696)
27.	Change in nonadmitted assets			(67,958,894)	(1,738,473)	9,354,263
28.	Change in provision for reinsurance					0

1. Change in surplus notes
2. Surplus (contributed to) withdrawn from protected cells

31. Cumulative effect of changes in accounting principles

32. Capital changes:

32.1 Paid in

1. Transferred from surplus (Stock Dividend)
2. 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	(200,000,000)	(100,000,000)	(247,208,031)
36.	Change in treasury stock			0
37.	Aggregate write-ins for gains and losses in surplus	(136,155,532)	(148,602,220)	(292,889,506)
38.	Change in surplus as regards policyholders (Lines 22 through 37)	(25,071,505)	(543,625)	(5,012,066)
39.	Surplus as regards policyholders, as of statement date (Lines 21 plus 38)	1,018,794,814	1,048,334,760	1,043,866,319
	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.	Service fee income	2,625,000	3,229,066	6,355,387
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)	2,625,000
3,229,066	6,355,387
3701.	Increase in contingency reserves	(136,155,532)	(148,602,220)	(292,889,506)
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)	(136,155,532)	(148,602,220)	(292,889,506)

4

STATEMENT AS OF JUNE 30, 2022 OF THE ESSENT GUARANTY, INC.

CASH FLOW

			1	2	3
			Current Year	Prior Year	Prior Year Ended
			To Date	To Date	December 31
	Cash from Operations
1.	Premiums collected net of reinsurance		260,419,513	287,590,884	552,661,763
2.	Net investment income		43,710,544	39,350,259	83,447,272
3.	Miscellaneous income		2,625,000	3,212,468	6,445,933
4.	Total (Lines 1 to 3)		306,755,057	330,153,611	642,554,968
5.	Benefit and loss related payments		1,484,205	2,358,667	3,922,797
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		53,281,655	55,916,988	96,206,755
8.	Dividends paid to policyholders		0	0	0
9.	Federal and foreign income taxes paid (recovered) net of $	tax on capital
	gains (losses)		48,651,825	19,798,480	50,015,671
10.	Total (Lines 5 through 9)		103,417,685	78,074,135	150,145,223
11.	Net cash from operations (Line 4 minus Line 10)		203,337,372	252,079,476	492,409,745

Cash from Investments

12. Proceeds from investments sold, matured or repaid:

12.1	Bonds	332,913,773	155,429,792	634,252,964
12.2	Stocks	16,000	0	0
12.3	Mortgage loans	0	0	0
12.4	Real estate	342,805	1,000,162	2,017,422
12.5	Other invested assets	7,155,455	8,659,838	80,320,936
12.6	Net gains or (losses) on cash, cash equivalents and short-term investments	0	0	18,844
12.7	Miscellaneous proceeds	0	18,056,505	1,641,428
12.8 Total investment proceeds (Lines 12.1 to 12.7)	340,428,033	183,146,297	718,251,594
13. Cost of investments acquired (long-term only):
13.1	Bonds	292,676,955	536,023,647	1,147,995,807
13.2	Stocks	0	33,200	33,200
13.3	Mortgage loans	0	0	0
13.4	Real estate	342,805	1,263,870	1,263,870
13.5	Other invested assets	9,311,187	22,537,138	37,487,189
13.6	Miscellaneous applications	4,518,662	0	0
13.7	Total investments acquired (Lines 13.1 to 13.6)	306,849,609	559,857,855	1,186,780,066
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)	33,578,424	(376,711,558)	(468,528,473)

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	200,000,000	100,000,000	247,208,031
	16.6 Other cash provided (applied)	(68,409,803)	(2,683,830)	(2,860,508)
17.	Net cash from financing and miscellaneous sources (Line 16.1 through Line 16.4 minus Line 16.5
	plus Line 16.6)	(268,409,803)	(102,683,830)	(250,068,539)
	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)	(31,494,007)	(227,315,912)	(226,187,267)
19.	Cash, cash equivalents and short-term investments:
	19.1	Beginning of year	174,795,037	400,982,304	400,982,304
	19.2 End of period (Line 18 plus Line 19.1)	143,301,030	173,666,392	174,795,037

Note: Supplemental disclosures of cash flow information for non-cash transactions:

5