Schedule II - Condensed Financial Information of Registrant

12 Months Ended

Dec. 31, 2024

Condensed Financial Information Disclosure [Abstract]

Schedule II - Condensed Financial Information of Registrant

Schedule II—Condensed Financial Information of Registrant

Condensed Balance Sheets

Parent Company Only


	December 31,
(In thousands)	2024		2023
Assets
Investments
Fixed maturities available for sale, at fair value (amortized cost: 2024 — $158,953; 2023 — $94,221)	$	151,600	$	86,558
Short-term investments available for sale, at fair value (amortized cost: 2024 — $158,242; 2023 — $81,993)	158,242		81,992
Total investments available for sale	309,842		168,550
Other invested assets	—		2,166
Cash	2,267		4,073
Due from affiliates	2,517		1,487
Investment in consolidated subsidiaries	5,792,965		5,346,888
Other assets	6,631		4,283
Total Assets	$	6,114,222	$	5,527,447

Liabilities and stockholders' equity
Liabilities
Due to affiliates	$	—	$	415
Senior notes due 2029, net	493,959		—
Credit facility borrowings, net	—		421,920
Other accrued liabilities	16,605		2,562
Total liabilities	510,564		424,897
Commitments and contingencies
Stockholders' Equity
Common shares	1,575		1,599
Additional paid-in capital	1,214,956		1,299,869
Accumulated other comprehensive loss	(303,984)		(280,496)
Retained earnings	4,691,111		4,081,578
Total stockholders' equity	5,603,658		5,102,550
Total liabilities and stockholders' equity	$	6,114,222	$	5,527,447

See accompanying supplementary notes to Parent Company condensed

financial information and the consolidated financial statements and notes thereto.

Schedule II—Condensed Financial Information of Registrant

Condensed Statements of Comprehensive Income

Parent Company Only


	Year Ended December 31,
(In thousands)	2024		2023		2022
Revenues:
Net investment income	$	9,030	$	5,663	$	6,433
Realized investment losses, net	(2)		(11,722)		(12,170)
Loss from other invested assets	(2,336)		—		—
Administrative service fees from subsidiaries	830		710		642
Total revenues	7,522		(5,349)		(5,095)
Expenses:
Administrative service fees to subsidiaries	4,717		3,738		3,908
Other operating expenses	8,046		7,010		7,614
Interest expense	35,319		30,137		15,609
Total expenses	48,082		40,885		27,131
Loss before income taxes and equity in undistributed net income in subsidiaries	(40,560)		(46,234)		(32,226)
Income tax expense (benefit)	—		(181)		—
Loss before equity in undistributed net income of subsidiaries	(40,560)		(46,053)		(32,226)
Equity in undistributed net income of subsidiaries	769,963		742,439		863,579
Net income	$	729,403	$	696,386	$	831,353
Other comprehensive income (loss):
Change in unrealized (depreciation) appreciation of investments, net of tax (benefit) expense of $(7,818) in 2024, $17,944 in 2023 and $(75,013) in 2022	(23,488)		102,294		(433,497)
Total other comprehensive income (loss)	(23,488)		102,294		(433,497)
Comprehensive income	$	705,915	$	798,680	$	397,856

See accompanying supplementary notes to Parent Company condensed

financial information and the consolidated financial statements and notes thereto.

Schedule II—Condensed Financial Information of Registrant

Condensed Statements of Cash Flows

Parent Company Only


	Year Ended December 31,
(In thousands)	2024		2023		2022
Operating Activities
Net income	$	729,403	$	696,386	$	831,353
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in net income of subsidiaries	(769,963)		(742,439)		(863,579)
Loss on the sale of investments, net	2		11,722		12,170
Loss from other invested assets	2,336		—		—
Dividends from subsidiaries	300,000		60,000		—
Stock-based compensation expense	1,134		1,000		927
Amortization of premium on investment securities	129		324		800
Deferred income taxes	—		(181)		—
Changes in assets and liabilities:
Other assets	889		816		1,775
Other accrued liabilities	40,289		18,365		19,232
Net cash provided by operating activities	304,219		45,993		2,678
Investing Activities
Net change in short-term investments	(76,250)		(14,370)		94,988
Purchase of investments available for sale	(106,653)		(9,860)		(157,468)
Proceeds from maturities and paydowns of investments available for sale	33,515		24,787		81,351
Proceeds from sales of investments available for sale	8,276		128,249		164,733
Net cash (used in) provided by investing activities	(141,112)		128,806		183,604
Financing Activities

Issuance of senior notes	498,160		—		—
Credit facility repayments	(425,000)		—		—
Treasury stock acquired	(111,542)		(70,670)		(97,914)
Payment of debt issuance costs	(8,488)		—		(154)

Dividends paid	(118,043)		(106,215)		(92,128)
Net cash used in financing activities	(164,913)		(176,885)		(190,196)
Net decrease in cash	(1,806)		(2,086)		(3,914)
Cash at beginning of year	4,073		6,159		10,073
Cash at end of year	$	2,267	$	4,073	$	6,159

Supplemental Disclosure of Cash Flow Information
Interest payments	$	(17,196)	$	(28,574)	$	(13,595)

See accompanying supplementary notes to Parent Company condensed

financial information and the consolidated financial statements and notes thereto.

Schedule II—Condensed Financial Information of Registrant

Parent Company Only

Supplementary Notes

Note A

The accompanying Parent Company financial statements should be read in conjunction with the consolidated financial statements and notes to consolidated financial statements. These financial statements have been prepared on the same basis and using the same accounting policies as described in the consolidated financial statements included herein, except that the Parent Company uses the equity method of accounting for its majority-owned subsidiaries.

Note B

Under the insurance laws of the Commonwealth of Pennsylvania, insurance subsidiaries may pay dividends during any 12-month period in an amount equal to the greater of (i) 10% of the preceding year-end statutory policyholders' surplus or (ii) the preceding year's statutory net income. The Pennsylvania statute also requires that dividends and other distributions be paid out of positive unassigned surplus without prior approval. As of December 31, 2024, Essent Guaranty had unassigned surplus of approximately $396.6 million. As of January 1, 2025, Essent Guaranty has dividend capacity of $396.6 million.

During the years ended December 31, 2024 and 2023, the Parent Company received dividends from Essent Re totaling $300 million and $60.0 million, respectively. As of January 1, 2025, Essent Re has dividend capacity of $441.9 million. During the year ended December 31, 2022, the Parent Company did not receive any dividends from its subsidiaries.

Essent Group Ltd. 10-K