Schedule II-Financial Information of Registrant

12 Months Ended

Dec. 31, 2015

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Schedule II-Financial Information of Registrant

Schedule II—Financial Information of Registrant

Balance Sheets

Parent Company Only

	December 31,
(In thousands)	2015			2014
Assets
Investments
Fixed maturities	$	36,549		$	1,197
Short-term investments	25,511			116,630
Total Investments	62,060			117,827
Cash	8,541			8,500
Due from affiliates	1,021			1,179
Investment in consolidated subsidiaries	1,047,114			828,482
Other assets	866			668
Total Assets	$	1,119,602		$	956,656
Liabilities and stockholders' equity
Liabilities
Other accrued liabilities	$	361		$	918
Total liabilities	361			918
Commitments and contingencies
Stockholders' Equity
Common shares	1,390			1,388
Additional paid-in capital	904,221			893,285
Accumulated other comprehensive income (loss)	(99		)	4,667
Retained earnings	213,729			56,398
Total stockholders' equity	1,119,241			955,738
Total liabilities and stockholders' equity	$	1,119,602		$	956,656

See accompanying supplementary notes to Parent Company condensed

financial information and the consolidated financial statements and notes thereto.

Essent Group Ltd. and Subsidiaries

Schedule II—Condensed Financial Information of Registrant

Condensed Statements of Comprehensive Income

Parent Company Only

	Year Ended December 31,
(In thousands)	2015			2014			2013
Revenues:
Investment income	$	421		$	1,019		$	4
Realized gains (losses), net	(181		)	218			—
Administrative service fees from subsidiaries	437			1,020			—
Total revenues	677			2,257			4
Expenses:
Administrative service fees to subsidiaries	1,762			826			90
Other operating expenses	3,554			4,085			1,567
Total expenses	5,316			4,911			1,657
Loss before income taxes and equity in undistributed net income in subsidiaries	(4,639		)	(2,654		)	(1,653		)
Loss before equity in undistributed net income of subsidiaries	(4,639		)	(2,654		)	(1,653		)
Equity in undistributed net income of subsidiaries	161,970			91,151			67,066
Net income	$	157,331		$	88,497		$	65,413
Other comprehensive income (loss):
Change in unrealized appreciation (depreciation) of investments, net of tax expense (benefit) of ($1,285) in 2015, $2,825 in 2014 and ($2,080) in 2013	(4,766		)	6,114			(3,861		)
Total other comprehensive income (loss)	(4,766		)	6,114			(3,861		)
Comprehensive income	$	152,565		$	94,611		$	61,552

See accompanying supplementary notes to Parent Company condensed

financial information and the consolidated financial statements and notes thereto.

Essent Group Ltd. and Subsidiaries

Schedule II—Condensed Financial Information of Registrant

Condensed Statements of Cash Flows

Parent Company Only

	Year Ended December 31,
(In thousands)	2015			2014			2013
Operating Activities
Net income	$	157,331		$	88,497		$	65,413
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in net income of subsidiaries	(161,970		)	(91,151		)	(67,066		)
Gain on the sale of investments, net	181			(218		)	—
Stock-based compensation expense	880			1,076			—
Amortization of premium on investment securities	399			502			—
Excess tax benefits from stock-based compensation	(2,420		)	(1,809		)	—
Changes in assets and liabilities:
Other assets	(40		)	(358		)	(1,450		)
Other accrued liabilities	15,153			13,252			4,196
Net cash provided by operating activities	9,514			9,791			1,093
Investing Activities
Net change in short-term investments	91,119			(114,628		)	999
Investments in subsidiaries	(61,328		)	(255,155		)	(197,000		)
Purchase of investments available for sale	(130,461		)	(95,128		)	—
Proceeds from sales of investments available for sale	94,429			93,650			—
Net cash used in investing activities	(6,241		)	(371,261		)	(196,001		)
Financing Activities
Issuance of common shares net of costs	(537		)	126,441			438,403
Treasury stock acquired	(5,168		)	(2,498		)	(311		)
Excess tax benefits from stock-based compensation	2,420			1,809			—
Other financing activities	53			—			—
Net cash (used in) provided by financing activities	(3,232		)	125,752			438,092
Net increase (decrease) in cash	41			(235,718		)	243,184
Cash at beginning of year	8,500			244,218			1,034
Cash at end of year	$	8,541		$	8,500		$	244,218

See accompanying supplementary notes to Parent Company condensed

financial information and the consolidated financial statements and notes thereto.

Essent Group Ltd. and Subsidiaries

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, the 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. Essent Guaranty currently has negative unassigned surplus and therefore, would require prior approval by the Pennsylvania Insurance Commissioner to make any dividend payment or other distributions in 2016. Essent PA had unassigned surplus of approximately $8.1 million as of December 31, 2015. Essent PA paid a $3.75 million dividend to Essent Holdings in January 2016.

During the three years ending December 31, 2015, the Parent Company did not receive any dividends from its subsidiaries.