Essent Group Ltd. Provides Guidance on Capital Position Under PMIERs 2.0
September 28 2018 - 4:30PM
Business Wire
Essent Group Ltd. (NYSE: ESNT), the parent company of Essent
Guaranty, Inc., today provided guidance on its capital position
under the revised Private Mortgage Insurer Eligibility Requirements
(PMIERs 2.0) released by Fannie Mae and Freddie Mac (the GSEs), and
the Federal Housing Finance Administration (FHFA) on September 27,
2018.
As previously disclosed, as of June 30, 2018, based on PMIERs
1.0, Essent Guaranty, Inc.’s Available Assets exceeded Minimum
Required Assets by $387 million. If PMIERs 2.0 had been in effect
as of June 30, 2018, Essent Guaranty’s excess of Available Assets
over Minimum Required Assets would be substantially unchanged from
the amount computed under PMIERs 1.0.
The GSEs and FHFA have indicated that the PMIERs 2.0 framework
will take effect on March 31, 2019. Essent expects to remain in
full compliance with the existing and revised PMIERs, as
applicable, prior to and after March 31, 2019.
Forward-Looking Statements
This press release may include “forward-looking statements”
which are subject to known and unknown risks and uncertainties,
many of which may be beyond our control. Forward-looking statements
generally can be identified by the use of forward-looking
terminology such as "may," "will," “should,” “expect,” "plan,"
"anticipate," "believe," “estimate,” “predict,” or "potential" or
the negative thereof or variations thereon or similar terminology.
Actual events, results and outcomes may differ materially from our
expectations due to a variety of known and unknown risks,
uncertainties and other factors. Although it is not possible to
identify all of these risks and factors, they include, among
others, the following: changes in or to Fannie Mae and Freddie Mac
(the “GSEs”), whether through Federal legislation, restructurings
or a shift in business practices; failure to continue to meet the
mortgage insurer eligibility requirements of the GSEs; competition
for customers; lenders or investors seeking alternatives to private
mortgage insurance; an increase in the number of loans insured
through Federal government mortgage insurance programs, including
those offered by the Federal Housing Administration; decline in new
insurance written and franchise value due to loss of a significant
customer; decline in the volume of low down payment mortgage
originations; the definition of "Qualified Mortgage" reducing the
size of the mortgage origination market or creating incentives to
use government mortgage insurance programs; the definition of
"Qualified Residential Mortgage" reducing the number of low down
payment loans or lenders and investors seeking alternatives to
private mortgage insurance; the implementation of the Basel III
Capital Accord discouraging the use of private mortgage insurance;
a decrease in the length of time that insurance policies are in
force; uncertainty of loss reserve estimates; deteriorating
economic conditions; our non-U.S. operations becoming subject to
U.S. Federal income taxation; becoming considered a passive foreign
investment company for U.S. Federal income tax purposes; and other
risks and factors described in Part I, Item 1A “Risk Factors” of
our Annual Report on Form 10-K for the year ended December 31, 2017
filed with the Securities and Exchange Commission on February 20,
2018. Any forward-looking information presented herein is made only
as of the date of this press release, and we do not undertake any
obligation to update or revise any forward-looking information to
reflect changes in assumptions, the occurrence of unanticipated
events, or otherwise.
About the Company
Essent Group Ltd. (NYSE: ESNT) is a Bermuda-based holding
company (collectively with its subsidiaries, “Essent”) which,
through its wholly-owned subsidiary Essent Guaranty, Inc., offers
private mortgage insurance for single-family mortgage loans in the
United States. Essent provides private capital to mitigate mortgage
credit risk, allowing lenders to make additional mortgage financing
available to prospective homeowners. Headquartered in Radnor,
Pennsylvania, Essent Guaranty, Inc. is licensed to write mortgage
insurance in all 50 states and the District of Columbia, and is
approved by Fannie Mae and Freddie Mac. Essent also offers
mortgage-related insurance, reinsurance and advisory services
through its Bermuda-based subsidiary, Essent Reinsurance Ltd.
Additional information regarding Essent may be found at
www.essentgroup.com and www.essent.us.
Source: Essent Group Ltd.
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Essent Group Ltd.Media
Contact610-230-0556media@essentgroup.comorInvestor Relations
ContactChristopher G. CurranSenior Vice President – Investor
Relations855-809-ESNTir@essentgroup.com
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