Dividends Restrictions

12 Months Ended

Dec. 31, 2015

Statutory Accounting Practices, Statutory Amount Available for Dividend Payments [Abstract]

Dividends Restrictions

Dividends Restrictions

Our U.S. insurance subsidiaries are subject to certain capital and dividend rules and regulations as prescribed by jurisdictions in which they are authorized to operate. Under the insurance laws of the Commonwealth of Pennsylvania, Essent Guaranty and Essent PA 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 specifies that dividends and other distributions can be paid out of positive unassigned surplus without prior approval. At December 31, 2015, Essent Guaranty had negative unassigned surplus of approximately $43.1 million, and and therefore would require prior approval by the Pennsylvania Insurance Commissioner to make any dividend payment or other distributions in 2016. Essent Guaranty paid no dividends to Essent Group or any intermediate holding companies in the years ended December 31, 2015, 2014 or 2013. Essent PA had unassigned surplus of approximately $8.1 million as of December 31, 2015. In the years ended December 31, 2015, 2014 and 2013, Essent PA paid to its parent company, Essent US Holdings, Inc. ("Essent Holdings") a dividend of $0, $200,000 and $5,000, respectively. Essent PA paid a $3.75 million dividend to Essent Holdings in January 2016.

Essent Re is subject to certain dividend restrictions as prescribed by the Bermuda Monetary Authority and under certain agreements with counterparties. In connection with the quota share reinsurance agreement with Essent Guaranty, Essent Re had agreed to maintain a minimum total equity of $100 million. As of December 31, 2015, Essent Re had total equity of $220.2 million.

At December 31, 2015, our insurance subsidiaries were in compliance with these rules, regulations and agreements.