Schedule II-Condensed Financial Information of Registrant

12 Months Ended

Dec. 31, 2016

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Schedule II-Condensed Financial Information of Registrant

Schedule II—Condensed Financial Information of Registrant

Balance Sheets

Parent Company Only

	December 31,
(In thousands)	2016			2015
Assets
Investments
Fixed maturities	$	10,004		$	36,549
Short-term investments	32,036			25,511
Total investments	42,040			62,060
Cash	4,521			8,541
Due from affiliates	1,750			1,021
Investment in consolidated subsidiaries	1,393,720			1,047,114
Other assets	2,452			866
Total Assets	$	1,444,483		$	1,119,602
Liabilities and stockholders' equity
Liabilities
Revolving credit facility borrowings	$	100,000		$	—
Other accrued liabilities	710			361
Total liabilities	100,710			361
Commitments and contingencies
Stockholders' Equity
Common shares	1,397			1,390
Additional paid-in capital	918,296			904,221
Accumulated other comprehensive loss	(12,255		)	(99		)
Retained earnings	436,335			213,729
Total stockholders' equity	1,343,773			1,119,241
Total liabilities and stockholders' equity	$	1,444,483		$	1,119,602

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)	2016			2015			2014
Revenues:
Net investment income	$	284		$	421		$	1,019
Realized investment gains (losses), net	111			(181		)	218
Administrative service fees from subsidiaries	473			437			1,020
Total revenues	868			677			2,257
Expenses:
Administrative service fees to subsidiaries	1,760			1,762			826
Other operating expenses	5,258			3,554			4,085
Total expenses	7,018			5,316			4,911
Loss before income taxes and equity in undistributed net income in subsidiaries	(6,150		)	(4,639		)	(2,654		)
Loss before equity in undistributed net income of subsidiaries	(6,150		)	(4,639		)	(2,654		)
Equity in undistributed net income of subsidiaries	228,756			161,970			91,151
Net income	$	222,606		$	157,331		$	88,497
Other comprehensive income (loss):
Change in unrealized (depreciation) appreciation of investments, net of tax (benefit) expense of ($2,941) in 2016, ($1,285) in 2015 and $2,825 in 2014	(12,156		)	(4,766		)	6,114
Total other comprehensive (loss) income	(12,156		)	(4,766		)	6,114
Comprehensive income	$	210,450		$	152,565		$	94,611

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)	2016			2015			2014
Operating Activities
Net income	$	222,606		$	157,331		$	88,497
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in net income of subsidiaries	(228,756		)	(161,970		)	(91,151		)
(Gain) loss on the sale of investments, net	(111		)	181			(218		)
Stock-based compensation expense	880			880			1,076
Amortization of premium on investment securities	169			399			502
Excess tax benefits from stock-based compensation	(1,083		)	(2,420		)	(1,809		)
Changes in assets and liabilities:
Other assets	121			(40		)	(358		)
Other accrued liabilities	17,433			15,153			13,252
Net cash provided by operating activities	11,259			9,514			9,791
Investing Activities
Net change in short-term investments	(6,525		)	91,119			(114,628		)
Investments in subsidiaries	(130,101		)	(61,328		)	(255,155		)
Purchase of investments available for sale	—			(130,461		)	(95,128		)
Proceeds from maturity of investments available for sale	10,000			—			—
Proceeds from sales of investments available for sale	16,582			94,429			93,650
Net cash used in investing activities	(110,044		)	(6,241		)	(371,261		)
Financing Activities
Revolving credit facility borrowings	100,000			—			—
Treasury stock acquired	(4,024		)	(5,168		)	(2,498		)
Payment of issuance costs for revolving credit facility	(2,436		)	—			—
Excess tax benefits from stock-based compensation	1,083			2,420			1,809
Issuance of common shares net of costs	—			(537		)	126,441
Other financing activities	142			53			—
Net cash provided by (used in) financing activities	94,765			(3,232		)	125,752
Net (decrease) increase in cash	(4,020		)	41			(235,718		)
Cash at beginning of year	8,541			8,500			244,218
Cash at end of year	$	4,521		$	8,541		$	8,500

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. As of December 31, 2016, Essent Guaranty had unassigned surplus of approximately $13.6 million. Essent PA had unassigned surplus of approximately $8.4 million as of December 31, 2016. Essent PA paid a $5.0 million dividend to Essent Holdings in February 2017.

During the three years ending December 31, 2016, the Parent Company did not receive any dividends from its subsidiaries.