Essent Group Ltd.

Previous wording

The following discussion should be read together with the “Selected Financial Data” and our audited consolidated financial statements and related notes included in our Annual Report on Form 10-K as of and for the year ended December 31, 2024 as filed with the Securities and Exchange Commission and referred to herein as the “Annual Report,” and our condensed consolidated financial statements and related notes as of and for the three and six months ended June 30, 2025 included in Part I, Item 1 of this Quarterly Report on Form 10-Q, which we refer to as the “Quarterly Report.” In addition to historical information, this discussion contains forward-looking statements that involve risks, uncertainties and assumptions that could cause actual results to differ materially from management’s expectations. Factors that could cause such differences are discussed in the sections entitled “Special Note Regarding Forward-Looking Statements” in this Quarterly Report and Part I, Item 1A “Risk Factors” in our Annual Report and Part II, Item 1A “Risk Factors” in this Quarterly Report. We are not undertaking any obligation to update any forward-looking statements or other statements we may make in the following discussion or elsewhere in this document even though these statements may be affected by events or circumstances occurring after the forward-looking statements or other statements were made.

Current wording

The following discussion should be read together with the “Selected Financial Data” and our audited consolidated financial statements and related notes included in our Annual Report on Form 10-K as of and for the year ended December 31, 2024 as filed with the Securities and Exchange Commission and referred to herein as the “Annual Report,” and our condensed consolidated financial statements and related notes as of and for the three and nine months ended September 30, 2025 included in Part I, Item 1 of this Quarterly Report on Form 10-Q, which we refer to as the “Quarterly Report.” In addition to historical information, this discussion contains forward-looking statements that involve risks, uncertainties and assumptions that could cause actual results to differ materially from management’s expectations. Factors that could cause such differences are discussed in the sections entitled “Special Note Regarding Forward-Looking Statements” in this Quarterly Report and Part I, Item 1A “Risk Factors” in our Annual Report and Part II, Item 1A “Risk Factors” in this Quarterly Report. We are not undertaking any obligation to update any forward-looking statements or other statements we may make in the following discussion or elsewhere in this document even though these statements may be affected by events or circumstances occurring after the forward-looking statements or other statements were made.

Previous wording

Essent Guaranty, Inc., our wholly-owned mortgage insurance subsidiary which we refer to as "Essent Guaranty," is approved by Fannie Mae and Freddie Mac and licensed to write coverage in all 50 states and the District of Columbia. Our mortgage insurance operations generated new insurance written, or NIW, of approximately $12.5 billion and $22.5 billion for the three and six months ended June 30, 2025, respectively, compared to approximately $12.5 billion and $20.8 billion for the three and six months ended June 30, 2024, respectively. The financial strength ratings of Essent Guaranty are A2 with a stable outlook by Moody’s Investors Service (“Moody's”) (up from A3 with a positive outlook as a result of an upgrade by Moody’s announced on August 6, 2025), A- with a stable outlook by S&P Global Ratings (“S&P”) and A (Excellent) with a stable outlook by A.M. Best Ratings Services, Inc. ("AM Best").

Current wording

Essent Guaranty, Inc., our wholly-owned mortgage insurance subsidiary which we refer to as "Essent Guaranty," is approved by Fannie Mae and Freddie Mac and licensed to write coverage in all 50 states and the District of Columbia. Our mortgage insurance operations generated new insurance written, or NIW, of approximately $12.2 billion and $34.7 billion for the three and nine months ended September 30, 2025, respectively, compared to approximately $12.5 billion and $33.3 billion for the three and nine months ended September 30, 2024, respectively. The financial strength ratings of Essent Guaranty are A2 with a stable outlook by Moody’s Ratings (“Moody's”), A- with a stable outlook by S&P Global Ratings (“S&P”) and A (Excellent) with a stable outlook by A.M. Best Ratings Services, Inc. ("AM Best").

Previous wording

Through our wholly-owned Bermuda-based subsidiary, Essent Reinsurance Ltd., which we refer to as "Essent Re", we reinsure U.S. mortgage risk in the GSE credit risk transfer market and provide underwriting consulting services to third-party reinsurers. As of June 30, 2025, Essent Re provided insurance or reinsurance relating to GSE risk share and other reinsurance transactions covering approximately $2.3 billion of risk. Essent Re also reinsures Essent Guaranty’s NIW under a quota share reinsurance agreement. The insurer financial strength ratings of Essent Re are A- with a stable outlook by S&P and A (Excellent) with a stable outlook by AM Best.

Current wording

Through our wholly-owned Bermuda-based subsidiary, Essent Reinsurance Ltd., which we refer to as "Essent Re", we reinsure U.S. mortgage risk in the GSE credit risk transfer market and provide underwriting consulting services to third-party reinsurers. As of September 30, 2025, Essent Re provided insurance or reinsurance relating to GSE and other mortgage risk share and other reinsurance transactions covering approximately $2.2 billion of risk. Essent Re also reinsures Essent Guaranty’s NIW under a quota share reinsurance agreement. The financial strength ratings of Essent Re are A- with a stable outlook by S&P and A (Excellent) with a stable outlook by AM Best.

Previous wording

We have a highly experienced, talented team with 521 employees as of June 30, 2025. Our holding company and reinsurance business are domiciled in Bermuda. Our U.S. mortgage insurance and title insurance operations are headquartered in Radnor, Pennsylvania.

Current wording

We have a highly experienced, talented team with 510 employees as of September 30, 2025. Our holding company and reinsurance business are domiciled in Bermuda. Our U.S. mortgage insurance and title insurance operations are headquartered in Radnor, Pennsylvania.

Previous wording

The Federal Reserve increased the target federal funds rate several times during 2022 and 2023 in an effort to reduce consumer price inflation. As a result of progress on inflation, the Federal Reserve has reduced the target federal funds rate by 100 basis points since September 2024. Mortgage interest rates, however, remain elevated, which has reduced home buying and mortgage refinance activity resulting in lower volumes of mortgage originations, NIW and title insurance and settlement service transactions. Higher interest rates have also resulted in increases in our net investment income generated by our investment portfolio and the persistency of our mortgage insurance in force.

Current wording

The Federal Reserve increased the target federal funds rate several times during 2022 and 2023 in an effort to reduce consumer price inflation. As a result of progress on inflation, the Federal Reserve reduced the target federal funds rate by 100 basis points in 2024 and by another 25 basis points in the three and nine months ended September 30, 2025. Mortgage interest rates, however, remain elevated, which has reduced home buying and mortgage refinance activity resulting in lower volumes of mortgage originations, NIW and title insurance and settlement service transactions. Higher interest rates have also resulted in increases in our net investment income generated by our investment portfolio and the persistency of our mortgage insurance in force.

Previous wording

In January 2025, several wildfires caused property damage in Southern California. As of June 30, 2025, our insurance in force in areas with Federal Emergency Management Agency ("FEMA") disaster declarations due to these wildfires was less than 0.1% of our total insurance in force. These wildfires are not expected to have a material impact on our reserves.

Current wording

In January 2025, several wildfires caused property damage in Southern California. Our insurance in force in areas with Federal Emergency Management Agency (FEMA) disaster declarations at the time of these wildfires was less than 0.1% of our total insurance in force. These wildfires are not expected to have a material impact on our reserves.

Previous wording

Mortgage insurance premiums are paid either on a monthly installment basis (“monthly premiums”), in a single payment at origination (“single premiums”), or in some cases as an annual premium. For monthly premiums, we receive a monthly premium payment which is recorded as net premiums earned in the month the coverage is provided. Monthly premium payments are based on the original mortgage amount rather than the amortized loan balance. Net premiums written may be in excess of net premiums earned due to single premium policies. For single premiums, we receive a single premium payment at origination, which is recorded as “unearned premium” and earned over the estimated life of the policy, which ranges from 36 to 156 months depending on the term of the underlying mortgage and loan-to-value ratio at date of origination. If single premium policies are cancelled due to repayment of the underlying loan and the premium is non-refundable, the remaining unearned premium balance is immediately recognized as earned premium revenue. Substantially all of our single premium policies in force as of June 30, 2025 were non-refundable. Premiums collected on annual policies are recognized as net premiums earned on a straight-line basis over the year of coverage. For the six months ended June 30, 2025 and 2024, monthly premium policies comprised 99% and 98% of our NIW, respectively.

Current wording

Mortgage insurance premiums are paid either on a monthly installment basis (“monthly premiums”), in a single payment at origination (“single premiums”), or in some cases as an annual premium. For monthly premiums, we receive a monthly premium payment which is recorded as net premiums earned in the month the coverage is provided. Monthly premium payments are based on the original mortgage amount rather than the amortized loan balance. Net premiums written may be in excess of net premiums earned due to single premium policies. For single premiums, we receive a single premium payment at origination, which is recorded as “unearned premium” and earned over the estimated life of the policy, which ranges from 36 to 156 months depending on the term of the underlying mortgage and loan-to-value ratio at date of origination. If single premium policies are cancelled due to repayment of the underlying loan and the premium is non-refundable, the remaining unearned premium balance is immediately recognized as earned premium revenue. Substantially all of our single premium policies in force as of September 30, 2025 were non-refundable. Premiums collected on annual policies are recognized as net premiums earned on a straight-line basis over the year of coverage. For the nine months ended September 30, 2025 and 2024, monthly premium policies comprised 99% and 98% of our NIW, respectively.

Previous wording

Premiums associated with our GSE and other risk share transactions are based on the level of risk in force and premium rates on the transactions.

Current wording

Premiums associated with our GSE and other mortgage risk share transactions are based on the level of risk in force and premium rates on the transactions.

Previous wording

The percentage of IIF that remains on our books after any 12-month period is defined as our persistency rate. Because our insurance premiums are earned over the life of a policy, higher persistency rates can have a significant impact on our profitability. The persistency rate on our portfolio was 85.8% at June 30, 2025. Generally, higher prepayment speeds lead to lower persistency.

Current wording

The percentage of IIF that remains on our books after any 12-month period is defined as our persistency rate. Because our insurance premiums are earned over the life of a policy, higher persistency rates can have a significant impact on our profitability. The persistency rate on our portfolio was 86.0% at September 30, 2025. Generally, higher prepayment speeds lead to lower persistency.

Previous wording

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. The results of these investing activities are reported in income from other invested assets. These investments are generally accounted for under the equity method or fair value using net asset value (or its equivalent) as a practical expedient. For entities accounted for under the equity method that follow industry-specific guidance for investment companies, our proportionate share of earnings or losses includes changes in the fair value of the underlying assets of these entities. Fluctuations in the fair value of these entities may increase the volatility of the Company’s reported results of operations.

Current wording

As part of our overall investment strategy, we also allocate a relatively small percentage of our portfolio to limited partnership investments and traditional venture capital and private equity investments. The results of these investing activities are reported in income from other invested assets. These investments are generally accounted for under the equity method or fair value using net asset value (or its equivalent) as a practical expedient. For entities accounted for under the equity method that follow industry-specific guidance for investment companies, our proportionate share of earnings or losses includes changes in the fair value of the underlying assets of these entities. Fluctuations in the fair value of these entities may increase the volatility of the Company’s reported results of operations.

Previous wording

•the distribution of claims over the life of a book. As of June 30, 2025, 41% of our IIF relates to business written since January 1, 2023 and was less than three years old. As a result, based on historical industry performance, we expect the number of defaults and claims we experience, as well as our provision for losses and loss adjustment expenses ("LAE"), to increase as our portfolio seasons. See “— Mortgage Insurance Earnings and Cash Flow Cycle” below.

Current wording

•the distribution of claims over the life of a book. As of September 30, 2025, 45% of our IIF relates to business written since January 1, 2023 and was less than three years old. As a result, based on historical industry performance, we expect the number of defaults and claims we experience, as well as our provision for losses and loss adjustment expenses ("LAE"), to increase as our portfolio continues to season. See “— Mortgage Insurance Earnings and Cash Flow Cycle” below.

Previous wording

Based upon our experience and industry data, claims incidence for mortgage insurance is generally highest in the third through sixth years after loan origination. As of June 30, 2025, 41% of our IIF relates to business written since January 1, 2023 and was less than three years old. Although the claims experience on new insurance written by us to date has been favorable, 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. The actual default rate and the average reserve per default that we experience as our portfolio matures is difficult to predict and is dependent on the specific characteristics of our current in-force book (including the credit score of the borrower, the loan-to-value ratio of the mortgage, geographic concentrations, etc.), as well as the profile of new business we write in the future. In addition, the default rate and the average reserve per default will be affected by future macroeconomic factors such as housing prices, interest rates and employment.

Current wording

Based upon our experience and industry data, claims incidence for mortgage insurance is generally highest in the third through sixth years after loan origination. As of September 30, 2025, 45% of our IIF relates to business written since January 1, 2023 and was less than three years old. Although the claims experience on new insurance written by us to date has been favorable, 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. The actual default rate and the average reserve per default that we experience as our portfolio matures is difficult to predict and is dependent on the specific characteristics of our current in-force book (including the credit score of the borrower, the loan-to-value ratio of the mortgage, geographic concentrations, etc.), as well as the profile of new business we write in the future. In addition, the default rate and the average reserve per default will be affected by future macroeconomic factors such as housing prices, interest rates and employment.

Previous wording

The Federal Reserve increased the target federal funds rate several times during 2022 and 2023 in an effort to reduce consumer price inflation. As a result of subsequent reductions in inflation rates, the Federal Reserve has reduced the target federal funds rate by 100 basis points since September 2024. Mortgage interest rates, however, have remained elevated, which may lower home sale activity and affect the options available to delinquent borrowers. It is reasonably possible that our estimate of losses could change in the near term as a result of changes in the economic environment, the impact of elevated levels of consumer price inflation on home sale activity, housing inventory, and home prices.

Current wording

The Federal Reserve increased the target federal funds rate several times during 2022 and 2023 in an effort to reduce consumer price inflation. As a result of subsequent reductions in inflation rates, the Federal Reserve reduced the target federal funds rate by 100 basis points in 2024 and by another 25 basis points in the three and nine months ended September 30, 2025. Mortgage interest rates, however, have remained elevated, which may lower home sale activity and affect the options available to delinquent borrowers. It is reasonably possible that our estimate of losses could change in the near term as a result of changes in the economic environment, the impact of elevated levels of consumer price inflation on home sale activity, housing inventory, and home prices.

Previous wording

In January 2025, several wildfires caused property damage in Southern California. As of June 30, 2025 our insurance in force in areas with Federal Emergency Management Agency (FEMA) disaster declarations due to these wildfires was less than 0.1% of our total insurance in force. These wildfires are not expected to have a material impact our reserves.

Current wording

In January 2025, several wildfires caused property damage in Southern California. Our insurance in force in areas with Federal Emergency Management Agency (FEMA) disaster declarations at the time of these wildfires was less than 0.1% of our total insurance in force. These wildfires are not expected to have a material impact on our reserves.

Previous wording

Our most significant expense is compensation and benefits for our employees, which represented 49% and 53% of other underwriting and operating expenses for the three and six months ended June 30, 2025, respectively, compared to 50% and 51% of other underwriting and operating expenses for the three and six months ended June 30, 2024, respectively. Compensation and benefits expense includes base and incentive cash compensation, stock compensation expense, benefits and payroll taxes.

Current wording

Our most significant expense is compensation and benefits for our employees, which represented 49% and 51% of other underwriting and operating expenses for the three and nine months ended September 30, 2025, respectively, compared to 51% and 51% of other underwriting and operating expenses for the three and nine months ended September 30, 2024, respectively. Compensation and benefits expense includes base and incentive cash compensation, stock compensation expense, benefits and payroll taxes.

Previous wording

As discussed above, mortgage insurance premiums we collect and earn are generated based on our IIF, which is a function of our NIW and cancellations. The following table includes a summary of the change in our IIF for the three and six months ended June 30, 2025 and 2024 for our U.S. mortgage insurance portfolio. In addition, this table includes our RIF at the end of each period.

Current wording

As discussed above, mortgage insurance premiums we collect and earn are generated based on our IIF, which is a function of our NIW and cancellations. The following table includes a summary of the change in our IIF for the three and nine months ended September 30, 2025 and 2024 for our U.S. mortgage insurance portfolio. In addition, this table includes our RIF at the end of each period.

Previous wording

As of June 30, 2025, the net risk in force for Essent Guaranty was $34.0 billion and its statutory capital was $3.7 billion, resulting in a risk-to-capital ratio of 9.2:1. The amount of capital required varies in each jurisdiction in which we operate; however, generally, the maximum permitted risk-to-capital ratio is 25.0 to 1. State insurance regulators have continued to examine their respective capital rules to determine whether, in light of the 2007-2008 financial crisis, changes are needed to more accurately assess mortgage insurers' ability to withstand stressful economic conditions. As a result, the capital metrics under which they assess and measure capital adequacy may change in the future. Independent of the state regulator and GSE capital requirements, management continually assesses the risk of our insurance portfolio and current market and economic conditions to determine the appropriate levels of capital to support our business.

Current wording

As of September 30, 2025, the net risk in force for Essent Guaranty was $33.4 billion and its statutory capital was $3.7 billion, resulting in a risk-to-capital ratio of 8.9:1. The amount of capital required varies in each jurisdiction in which we operate; however, generally, the maximum permitted risk-to-capital ratio is 25.0 to 1. State insurance regulators have continued to examine their respective capital rules to determine whether, in light of the 2007-2008 financial crisis, changes are needed to more accurately assess mortgage insurers' ability to withstand stressful economic conditions. As a result, the capital metrics under which they assess and measure capital adequacy may change in the future. Independent of the state regulator and GSE capital requirements, management continually assesses the risk of our insurance portfolio and current market and economic conditions to determine the appropriate levels of capital to support our business.

Previous wording

Net premiums earned for the three and six months ended June 30, 2025 decreased compared to the three and six months ended June 30, 2024. For more information, see Net Premiums Written and Earned under “Results of Operations: Mortgage Insurance” and Net Premiums Earned under “Results of Operations: Corporate & Other”.

Current wording

Net premiums earned for the three and nine months ended September 30, 2025 decreased compared to the three and nine months ended September 30, 2024. For more information, see Net Premiums Written and Earned under “Results of Operations: Mortgage Insurance” and Net Premiums Earned under “Results of Operations: Corporate & Other”.

Previous wording

The increase in net investment income for the three months ended June 30, 2025 as compared to the same period in 2024 was due to an increase in the weighted average balance of our investment portfolio as well as an increase in the pre-tax investment income yield. The increase in net investment income for the six months ended June 30, 2025 compared to the same period in 2024 was due to an increase in the weighted average balance of the investment portfolio.

Current wording

The increase in net investment income for the three months ended September 30, 2025 as compared to the same period in 2024 was due to an increase in the weighted average balance of our investment portfolio as well as an increase in the pre-tax investment income yield. The increase in net investment income for the nine months ended September 30, 2025 as compared to the same period in 2024 was due to an increase in the weighted average balance of our investment portfolio.

Previous wording

The average cash and investment portfolio balance increased to $6.3 billion for the three months ended June 30, 2025 from $6.0 billion for the three months ended June 30, 2024 and increased to $6.4 billion for the six months ended June 30, 2025 from $5.9 billion for the six months ended June 30, 2024. The increase in the average cash and investment portfolio was primarily due to investing cash flows from operations.

Current wording

The average cash and investment portfolio balance increased to $6.3 billion for the three months ended September 30, 2025 from $6.2 billion for the three months ended September 30, 2024 and increased to $6.3 billion for the nine months ended

Previous wording

The pre-tax investment income yield increased from 3.8% in the three months ended June 30, 2024 to 3.9% for the three months ended June 30, 2025, primarily due to a general increase in investment yields due to rising interest rates. The pre-tax investment income yield was 3.8% for both the six months ended June 30, 2025 and 2024. See “— Liquidity and Capital Resources” for further details of our investment portfolio.

Current wording

The pre-tax investment income yield increased from 3.8% in the three months ended September 30, 2024 to 3.9% for the three months ended September 30, 2025, primarily due to a general increase in investment yields due to rising interest rates. The pre-tax investment income yield was 3.8% for both the nine months ended September 30, 2025 and 2024. See “— Liquidity and Capital Resources” for further details of our investment portfolio.

Previous wording

Income (loss) from other invested assets for the three months ended June 30, 2025 was income of $4.5 million as compared to a loss of $0.4 million for the three months ended June 30, 2024 and income of $11.9 million for the six months ended June 30, 2025 compared to a loss of $2.3 million for the six months ended June 30, 2024. The increase in income from other invested assets was primarily due to favorable fair value adjustments recorded during the three and six months ended June 30, 2025 as compared to the same periods in 2024.

Current wording

Income from other invested assets for the three months ended September 30, 2025 was $1.8 million as compared to $2.8 million for the three months ended September 30, 2024 and $13.6 million for the nine months ended September 30, 2025 compared to $0.5 million for the nine months ended September 30, 2024. The increase in income from other invested assets for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 was primarily due to increased favorable fair value adjustments recorded.

Previous wording

Other income for the three months ended June 30, 2025 was $6.7 million as compared to $6.5 million for the three months ended June 30, 2024 and $13.0 million for the six months ended June 30, 2025 compared to $10.3 million for the six months ended June 30, 2024. The increase in other income for the six months ended June 30, 2025 compared to the same period in 2024 was largely due to fair value adjustments on embedded derivatives contained in certain of our reinsurance agreements. For the six months ended June 30, 2025 we recorded a net unfavorable decrease in the fair value of the embedded derivatives of $0.2 million compared to a net unfavorable decrease of $1.2 million for the six months ended June 30, 2024.

Current wording

Other income for the three months ended September 30, 2025 was $4.4 million as compared to $7.4 million for the three months ended September 30, 2024 and $17.3 million for the nine months ended September 30, 2025 compared to $17.7 million for the nine months ended September 30, 2024. The decrease in other income for the three months ended September 30, 2025 compared to the same period in 2024 was largely due to decreases in underwriting consulting services provided to third-party reinsurers and title settlement services revenues.

Previous wording

The increased provision for losses for the three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024 was primarily due to the aging of defaults remaining within the mortgage insurance portfolio as of June 30, 2025, which resulted in an increase in our reserve per default. See “Results of Operations: Mortgage Insurance" for more information.

Current wording

The increased provision for losses for the three and nine months ended September 30, 2025 compared to the three and nine months ended September 30, 2024 was primarily due to an increase in the number of defaults as well as an increase in average reserve per default due to aging of defaults remaining within the mortgage insurance portfolio and a reduction in hurricane-related defaults without a corresponding change in reserves for hurricane-related defaults. See “Results of Operations: Mortgage Insurance" for more information.

Previous wording

The decrease in underwriting and operating expenses for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 was primarily due to a decrease in compensation expense as a result of a decrease in stock based compensation and a reduction in title operating expenses as a result of fewer title policies issued. Other underwriting and operating expenses for the six months ended June 30, 2025 were largely unchanged compared to the six months ended June 30, 2024. For more information, see “Results of Operations: Mortgage Insurance” and “Results of Operations: Corporate & Other.”

Current wording

The decrease in underwriting and operating expenses for the three and nine months ended September 30, 2025 compared to the three and nine months ended September 30, 2024 was primarily due to a decrease in compensation expense as a result of a decrease in stock based compensation and a reduction in title operating expenses as a result of fewer title policies issued. For more information, see “Results of Operations: Mortgage Insurance” and “Results of Operations: Corporate & Other.”

Previous wording

For the three and six months ended June 30, 2025, we incurred interest expense of $8.1 million and $16.3 million as compared to $7.8 million and $15.7 million for the three and six months ended June 30, 2024, respectively. On July 1, 2024, Essent Group completed an underwritten public offering of $500 million principal amount of 6.25% Senior Notes due 2029 (the “Senior Notes"). The Company used the net proceeds from the sale of the Senior Notes to repay all of the borrowings outstanding under the term loan portion of the Existing Credit Facility on July 1, 2024. The increase in interest expense was due to an increase in the average borrowings outstanding during the three and six months ended June 30, 2025 compared to same periods in 2024. For the three and six month periods ended June 30, 2025, the average amount of borrowings outstanding were $500 million compared to $425 million for the three and six months ended June 30, 2024. For the three and six months ended June 30, 2025, our total borrowings had a weighted average interest rate of 6.25% as compared to 7.14% for the three and six months ended June 30, 2024, respectively.

Current wording

For the three and nine months ended September 30, 2025, we incurred interest expense of $8.3 million and $24.5 million as compared to $11.5 million and $27.2 million for the three and nine months ended September 30, 2024, respectively. On July 1, 2024, Essent Group completed an underwritten public offering of $500 million principal amount of 6.25% Senior Notes due 2029 (the “Senior Notes"). The Company used the net proceeds from the sale of the Senior Notes to repay all of the borrowings outstanding under the term loan portion of the Existing Credit Facility on July 1, 2024. The decrease in interest expense during both the three and nine months ended September 30, 2025 was primarily due to a loss on debt extinguishment of $3.2 million recorded during the third quarter of 2024. For the three and nine month periods ended September 30, 2025, the average amount of borrowings outstanding were $500 million compared to $500 million and $450 million for the three and nine months ended September 30, 2024, respectively. For the three and nine months ended September 30, 2025, our total borrowings had a weighted average interest rate of 6.25% as compared to 6.32% and 6.84% for the three and nine months ended September 30, 2024, respectively.

Previous wording

Our subsidiaries in the United States file a consolidated U.S. Federal income tax return. Our income tax expense was $35.8 million and $35.6 million for the three months ended June 30, 2025 and 2024, respectively and $67.4 million and $67.6 million for the six months ended June 30, 2025 and 2024, respectively. The provision for income taxes for the six months ended June 30, 2025 was calculated using an estimated annual effective tax rate of 15.4% compared to 15.1% for the six months ended June 30, 2024. For the six months ended June 30, 2025, income tax expense includes $2.7 million of discrete tax expense associated with realized and unrealized gains recognized during the period partially offset by $0.8 million excess tax benefits associated with the vesting of common shares and common share units. For the six months ended June 30, 2024, income tax expense includes $1.3 million of discrete tax benefit associated with realized and unrealized losses recognized during the period partially offset by excess tax deficits associated with the vesting of common shares and common share units.

Current wording

Our subsidiaries in the United States file a consolidated U.S. Federal income tax return. Our income tax expense was $34.9 million and $31.4 million for the three months ended September 30, 2025 and 2024, respectively and $102.3 million and $99.0 million for the nine months ended September 30, 2025 and 2024, respectively. The provision for income taxes for the nine months ended September 30, 2025 was calculated using an estimated annual effective tax rate of 16.2% compared to 15.1% for the nine months ended September 30, 2024. The increase in our estimated annual effective tax rate is primarily related to withholding taxes incurred on intercompany dividends paid by Essent US Holdings, Inc. to its parent company. For the nine months ended September 30, 2025, income tax expense includes $3.2 million of discrete tax expense associated with realized and unrealized gains recognized during the period partially offset by $0.8 million excess tax benefits associated with the vesting of common shares and common share units as well as $0.8 million of favorable adjustments related to prior year tax returns. For the nine months ended September 30, 2024, income tax expense includes $0.6 million of discrete tax benefit associated with realized and unrealized losses recognized during the period partially offset by excess tax deficits associated with the vesting of common shares and common share units.

Previous wording

For the three months ended June 30, 2025, our Mortgage Insurance segment reported income before income tax expense of $238.2 million, compared to income before income tax expense of $249.1 million for the three months ended June 30, 2024. The decrease in our operating results during the three months ended June 30, 2025 compared to the same period in 2024 was primarily due to an increase in the provision for losses partially offset by increases in net investment income and income from other invested assets and a decrease in other underwriting and operating expenses.

Current wording

For the three months ended September 30, 2025, our Mortgage Insurance segment reported income before income tax expense of $204.2 million, compared to income before income tax expense of $216.0 million for the three months ended September 30, 2024. The decrease in our operating results during the three months ended September 30, 2025 compared to the same period in 2024 was primarily due to an increase in the provision for losses and decreases in income from other invested assets and other income, partially offset by an increases in net investment income and decreases in other underwriting and operating expenses.

Previous wording

For the six months ended June 30, 2025, our Mortgage Insurance segment reported income before income tax expense of $452.7 million, compared to income before income tax expense of $472.7 million for the six months ended June 30, 2024. The decrease in our operating results during the six months ended June 30, 2025 compared to the same period in 2024 was primarily due to an increase in the provision for losses partially offset by increases in net premiums earned, net investment income and income from other invested assets and a decrease in other underwriting and operating expenses.

Current wording

September 30, 2024. The decrease in our operating results during the nine months ended September 30, 2025 compared to the same period in 2024 was primarily due to an increase in the provision for losses partially offset by increases in net premiums earned and net investment income and a decrease in other underwriting and operating expenses.

Previous wording

Net premiums earned decreased in the three months ended June 30, 2025 by 0.6% compared to the three months ended June 30, 2024. The decrease in net premiums earned was primarily due to an increase in ceded premiums as a result of higher ceded losses under our third party quota share arrangements, partially offset by an increase in our average IIF from $239.5 billion for the three months ended June 30, 2024 to $245.7 billion for the three months ended and June 30, 2025. The average net premium rate was 0.36% for both the three months ended June 30, 2025 and 2024.

Current wording

Net premiums earned in the three months ended September 30, 2025 were largely unchanged compared to the three months ended September 30, 2024 as an increase in our average IIF from $242.1 billion for the three months ended September 30, 2024 to $247.8 billion for the three months ended and September 30, 2025, was offset by an increase in ceded premiums as a result of higher ceded losses under our third party quota share arrangements. The average net premium rate was 0.35% for both the three months ended September 30, 2025 and 2024.

Previous wording

Net premiums earned increased in the six months ended June 30, 2025 by 0.4% compared to the six months ended June 30, 2024. The increase in net premiums earned was due to an increase in our average IIF from $239.2 billion for the six months ended June 30, 2024 to $244.9 billion for the six months ended June 30, 2025, partially offset by an increase in ceded premiums as a result of higher ceded losses under our third party quota share arrangements. The average net premium rate was 0.36% for the six months ended June 30, 2025 and 2024, respectively.

Current wording

Net premiums earned increased to $699.2 million in the nine months ended September 30, 2025 compared to $696.8 million in the nine months ended September 30, 2024. The increase in net premiums earned was due to an increase in our average IIF from $240.2 billion for the nine months ended September 30, 2024 to $245.9 billion for the nine months ended September 30, 2025, partially offset by a decrease in the average net premium rate to 0.35% for the nine months ended September 30, 2025 compared to 0.36% for the nine months ended September 30, 2024. The decrease in the average net premium rate was due to an increase in ceded premiums as a result of higher ceded losses under our third party quota share arrangements.

Previous wording

In the three months ended June 30, 2025 and 2024, unearned premiums decreased by $7.3 million and $6.3 million, respectively. The change in unearned premiums was a result of net premiums written on single premium policies of $2.2 million and $1.6 million, respectively, which was offset by $9.5 million and $7.9 million, respectively, of unearned premium that was recognized in earnings during the periods. In the six months ended June 30, 2025 and 2024, unearned premiums decreased by $14.9 million and $13.4 million, respectively. This was a result of net premiums written on single premium policies of $4.1 million and $4.5 million, respectively, which was offset by $19.0 million and $17.9 million, respectively, of unearned premium that was recognized in earnings during the periods.

Current wording

In the three months ended September 30, 2025 and 2024, unearned premiums decreased by $4.5 million and $6.0 million, respectively. The change in unearned premiums was a result of net premiums written on single premium policies of $2.1 million and $2.4 million, respectively, which was offset by $6.6 million and $8.4 million, respectively, of unearned premium that was recognized in earnings during the periods.

Previous wording

In the three months ended June 30, 2025 we recorded a provision for losses of $15.4 million compared to a benefit of $1.2 million for the three months ended June 30, 2024. In the six months ended June 30, 2025 we recorded a provision of $46.1 million compared to a provision of $8.1 million for the six months ended June 30, 2024. The increase in the provision for losses in the three and six months ended June 30, 2025 compared to the same periods in 2024 was primarily due to the aging of defaults remaining within the mortgage insurance portfolio as of June 30, 2025, which resulted in an increase in our reserve per default.

Current wording

In the three months ended September 30, 2025 we recorded a provision for losses of $44.2 million compared to a provision of $29.8 million for the three months ended September 30, 2024. In the nine months ended September 30, 2025 we recorded a provision of $90.3 million compared to a provision of $37.9 million for the nine months ended September 30, 2024. The increase in the provision for losses in the three and nine months ended September 30, 2025 compared to the same periods in 2024 was primarily due to an increase in the number of defaults as well as an increase in our reserve per default. The increase in average reserve per default was due to aging of defaults remaining within the mortgage insurance portfolio as well as a reduction in hurricane-related defaults during the three and nine months ended September 30, 2025 without a corresponding change in reserves established for hurricane-related defaults.

Previous wording

During the three months ended June 30, 2025, the Mortgage Insurance provision for losses and LAE was a provision of $15.3 million, comprised of $45.1 million of current year losses partially offset by $29.8 million of favorable prior years’ loss development. During the three months ended June 30, 2024, the benefit for losses and LAE was $1.2 million, comprised of $30.7 million of current year losses offset by $31.9 million of favorable prior years’ loss development.

Current wording

During the three months ended September 30, 2025, the Mortgage Insurance provision for losses and LAE was a provision of $44.2 million, comprised of $62.3 million of current year losses partially offset by $18.2 million of favorable prior years’ loss development. During the three months ended September 30, 2024, the provision for losses and LAE was $29.8 million, comprised of $51.6 million of current year losses offset by $21.8 million of favorable prior years’ loss development.

Previous wording

During the six months ended June 30, 2025, the Mortgage Insurance provision for losses and LAE was $46.0 million, comprised of $94.0 million of current year losses partially offset by $48.0 million of favorable prior years’ loss development. During the six months ended June 30, 2024, the provision for losses and LAE was $8.1 million, comprised of $70.0 million of current year losses partially offset by $61.9 million of favorable prior years’ loss development.

Current wording

During the nine months ended September 30, 2025, the Mortgage Insurance provision for losses and LAE was $90.2 million, comprised of $156.4 million of current year losses partially offset by $66.2 million of favorable prior years’ loss development. During the nine months ended September 30, 2024, the provision for losses and LAE was $37.9 million, comprised of $121.7 million of current year losses partially offset by $83.8 million of favorable prior years’ loss development.

Previous wording

•Compensation and benefits decreased during the three months ended June 30, 2025 compared to the same period in 2024 primarily due to a decrease in average number of employees during the current period. Compensation and benefits during the six months ended June 30, 2025 were largely unchanged compared to the same period in 2024 as the impact of lower average employees in 2025 was offset by the timing of stock-based compensation due to provisions in certain equity grants that reduced the service period resulting in higher expense in early 2025. Compensation and benefits includes salaries, wages and bonus, stock compensation expense, benefits and payroll taxes. The first quarter of each year typically has higher compensation and benefits expense than the subsequent quarters due to payroll taxes on annual bonus payouts and vesting of nonvested stock and stock units, as well as higher stock-based compensation expense.

Current wording

•Compensation and benefits decreased during the three and nine months ended September 30, 2025 compared to the same periods in 2024 primarily due to a decrease in average number of employees during the current periods. Compensation and benefits includes salaries, wages and bonus, stock compensation expense, benefits and payroll taxes. The first quarter of each year typically has higher compensation and benefits expense than the subsequent quarters due to payroll taxes on annual bonus payouts and vesting of nonvested stock and stock units, as well as higher stock-based compensation expense.

Previous wording

•The increases in ceding commission during the three and six month periods ended June 30, 2025 compared to the same periods in 2024 results from increases in the amount of reinsured insurance in force under our outstanding quota share arrangements.

Current wording

•The increases in ceding commission during the three and nine month periods ended September 30, 2025 compared to the same periods in 2024 results from increases in the amount of reinsured insurance in force under our outstanding quota share arrangements.

Previous wording

Net premiums earned reported in Corporate & Other relate to premiums earned by our title insurance operations. The decrease in net premiums earned is primarily due to a decrease in title insurance policies issued in the three and six month periods ended June 30, 2025 compared to the same periods in 2024.

Current wording

Net premiums earned reported in Corporate & Other relate primarily to premiums earned by our title insurance operations. The decrease in net premiums earned is primarily due to a decrease in title insurance policies issued in the three and nine month periods ended September 30, 2025 compared to the same periods in 2024.

Previous wording

The provision for losses reported in Corporate & Other relates to loss provisions recorded by our title insurance operations. The increase in the provision for losses in the three and six month periods ended June 30, 2025 compared to the same periods in 2024 is primarily due to the impact of recent industry experience and trends on our IBNR reserves. Title insurance reserves were $18.7 million at both June 30, 2025 and December 31, 2024.

Current wording

The provision for losses reported in Corporate & Other primarily relates to loss provisions recorded by our title insurance operations. The increase in the provision for losses in the nine month period ended September 30, 2025 compared to the same period in 2024 is primarily due to the impact of recent industry experience and trends on our IBNR reserves. Title insurance and other reserves were $17.5 million at September 30, 2025 and $18.7 million at December 31, 2024.

Previous wording

•Compensation and benefits decreased in the three months ended June 30, 2025 compared to the same period in 2024 primarily due to decreases in stock based compensation expense as a result of provisions in certain equity grants that reduced the service period, resulting in higher expense in early 2025. Compensation and benefits increased during the six months ended June 30, 2025 compared to the same period in 2024 as a result of an increase in the average number of employees. Compensation and benefits includes salaries, wages and bonus, stock compensation expense, benefits and payroll taxes.

Current wording

•Compensation and benefits decreased in the three months ended September 30, 2025 compared to the same period in 2024 primarily due to decreases in stock based compensation expense as a result of provisions in certain equity grants that reduced the service period, resulting in higher expense in early 2025. Compensation and benefits decreased during the nine months ended September 30, 2025 compared to the same period in 2024 as a result of decreased stock based compensation expense, partially offset by an increase in the average number of employees. Compensation and benefits includes salaries, wages and bonus, stock compensation expense, benefits and payroll taxes.