Profile: Essent Group Ltd (ESNT.N)
20 Sep 2019
Essent Group Ltd., incorporated on July 1, 2008, is a private mortgage insurance company. The Company is engaged in offering private mortgage insurance and reinsurance for mortgages secured by residential properties located in the United States. Its products and services include mortgage insurance, contract underwriting, and Bermuda-based insurance and reinsurance. The primary mortgage insurance operations were conducted through Essent Guaranty, Inc. (Essent Guaranty), a mortgage insurer, which was licensed to write mortgage insurance in all 50 states and the District of Columbia, as of December 31, 2016. It offers primary mortgage insurance, pool insurance and master policy. It provides contract underwriting services through CUW Solutions, LLC (CUW Solutions), which is a subsidiary of Essent Holdings, Inc. Its subsidiaries include Essent Agency (Bermuda) Ltd and Essent Reinsurance Ltd (Essent Re).
The Company's primary mortgage insurance is offered to customers on individual loans at the time of origination on a flow basis, but can also be written in bulk transactions. Most of its policies are primary mortgage insurance. Customers that purchase its primary mortgage insurance select a specific coverage level for each insured loan. For loans not sold to the government-sponsored enterprises (GSEs), which are Fannie Mae and Freddie Mac, the customer determines its coverage percentage. The Company's risk across all policies written was approximately 25% of the primary insurance, but varied from policy to policy between 6% and 35% coverage, as of December 31, 2016.
The Company's pool insurance provides additional credit enhancement for certain secondary market and other mortgage transactions. Its pool insurance covers the excess of the loss on a defaulted mortgage loan that exceeds the claim payment under the primary coverage.
The Company issues a master policy to each customer approved as a counterparty by its risk department before accepting their applications for insurance. The master policy sets the terms and conditions of its mortgage insurance coverage, including loan eligibility requirements, coverage terms, policy administration, premium payment obligations, exclusions or reductions in coverage, conditions precedent to payment of a claim, claim payment requirements, subrogation and other matters attendant to its coverage.
The Company provides contract underwriting services on a limited basis. It assesses if data provided by the customer relating to a mortgage application complies with the customer's loan underwriting guidelines. These services are provided for loans that require private mortgage insurance, as well as for loans that do not require private mortgage insurance. It operates additional underwriting and service centers in Winston-Salem, North Carolina and Irvine, California.
Bermuda-Based Insurance and Reinsurance
The Company offers mortgage-related insurance and reinsurance through Essent Re, which provides insurance or reinsurance relating to the risk in force on loans in reference pools acquired by Freddie Mac and Fannie Mae, including in connection with Agency Credit Insurance Structure (ACIS) and Credit Insurance Risk Transfer (CIRT) programs. Essent Re also reinsured 25% of Essent Guaranty, Inc.'s GSE-eligible mortgage insurance, as of December 31, 2016.
The Company competes with Arch Mortgage Insurance Company, Genworth Financial Inc., Mortgage Guaranty Insurance Corporation, National Mortgage Insurance Corporation and Radian Guaranty Inc.
Essent Group Ltd
Clarendon House, 2 Church Street
HAMILTON HM 11