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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549 
FORM 10-Q
 
(Mark One)
 
      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 
For the period ended September 30, 2022
 
      TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 
For the transition period from              to             
 
Commission file number 001-36157 
ESSENT GROUP LTD.
(Exact name of registrant as specified in its charter)
Bermuda Not Applicable
(State or other jurisdiction of
incorporation or organization)
 (I.R.S. Employer
Identification Number)
Clarendon House
2 Church Street
Hamilton HM11, Bermuda
(Address of principal executive offices and zip code)
(441297-9901
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Shares, $0.015 par valueESNTNew York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes   No
 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232-405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files.)  Yes   No
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act. 
Large accelerated filer Accelerated filer
Non-accelerated filerSmaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes ☐  No 
The number of the registrant’s common shares outstanding as of November 3, 2022 was 107,707,483.


Essent Group Ltd. and Subsidiaries
 
Form 10-Q
 
Index
 
   
   
 
   
 
   
 
   
 
   
 
   
   
   
   
   
   
   
   
   
 

i

Unless the context otherwise indicates or requires, the terms “we,” “our,” “us,” “Essent,” and the “Company,” as used in this Quarterly Report on Form 10-Q, refer to Essent Group Ltd. and its directly and indirectly owned subsidiaries, including our primary operating subsidiaries, Essent Guaranty, Inc. and Essent Reinsurance Ltd., as a combined entity, except where otherwise stated or where it is clear that the terms mean only Essent Group Ltd. exclusive of its subsidiaries.
 
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
 
This Quarterly Report on Form 10-Q, or Quarterly Report, includes forward-looking statements pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts or present facts or conditions, such as statements regarding our future financial condition or results of operations, our prospects and strategies for future growth, the introduction of new products and services, and the implementation of our marketing and branding strategies. In many cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential” or the negative of these terms or other comparable terminology.
 
The forward-looking statements contained in this Quarterly Report reflect our views as of the date of this Quarterly Report about future events and are subject to risks, uncertainties, assumptions and changes in circumstances that may cause events or our actual activities or results to differ significantly from those expressed in any forward-looking statement. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future events, results, actions, levels of activity, performance or achievements. A number of important factors could cause actual results to differ materially from those indicated by the forward-looking statements, including, but not limited to, those factors described below, in Part I, Item 2 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of this Quarterly Report, and in Part I, Item 1A “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2021 filed with the Securities and Exchange Commission. These factors include, without limitation, the following:
 
the duration, spread and severity of the outbreak of novel coronavirus disease 2019 ("COVID-19"), which is currently ongoing and still evolving; the actions taken to contain the virus or treat its impact, including government and GSE actions to mitigate the economic impact of the outbreak; the nature and extent of the forbearance and modification options available to borrowers affected by the outbreak on mortgages we insure; reserve and other accounting estimates relating to the impact of the COVID-19 outbreak; borrower behavior in response to the outbreak and its economic impact; how quickly and to what extent normal economic and operating conditions can resume, including whether any future outbreaks interrupt economic recovery; how quickly and to what extent affected borrowers can recover from the negative economic impact of the outbreak; and whether and to what extent the outbreak and related economic conditions will exacerbate other risks and uncertainties facing our business, financial condition and business strategy;

changes in or to Fannie Mae and Freddie Mac, which we refer to collectively as 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 our customers or the loss of a significant customer;
 
lenders or investors seeking alternatives to private mortgage insurance;

increase in the number of loans insured through Federal government mortgage insurance programs, including those offered by the Federal Housing Administration;

decline in the volume of low down payment mortgage originations;

uncertainty of loss reserve estimates;

decrease in the length of time our insurance policies are in force;

deteriorating economic conditions (including inflation, rising interest rates and other adverse economic trends);

recently enacted U.S. Federal tax reform and its impact on us, our shareholders and our operations;

ii

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, which may discourage the use of private mortgage insurance;

management of risk in our investment portfolio;

fluctuations in interest rates;

inadequacy of the premiums we charge to compensate for our losses incurred;

dependence on management team and qualified personnel;

disturbance to our information technology systems;

change in our customers’ capital requirements discouraging the use of mortgage insurance;

declines in the value of borrowers’ homes;

limited availability of capital or reinsurance;

unanticipated claims arise under and risks associated with our contract underwriting program;

industry practice that loss reserves are established only upon a loan default;

disruption in mortgage loan servicing, as a result of COVID-19 or otherwise;

risk of future legal proceedings;

customers’ technological demands;

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

potential restrictions on the ability of our insurance subsidiaries to pay dividends.
 
Readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on these forward-looking statements. All of the forward-looking statements we have included in this Quarterly Report are based on information available to us on the date of this Quarterly Report. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as otherwise required by law.
 

iii

PART I — FINANCIAL INFORMATION
 
Item 1.   Financial Statements (Unaudited)
 
Essent Group Ltd. and Subsidiaries

Condensed Consolidated Balance Sheets (Unaudited)
 
 September 30,December 31,
(In thousands, except per share amounts)20222021
Assets  
Investments  
Fixed maturities available for sale, at fair value (amortized cost: 2022 — $4,744,377;
2021 — $4,584,521)
$4,253,705 $4,649,800 
Short-term investments available for sale, at fair value (amortized cost: 2022 —
$331,605; 2021 — $313,086)
331,139 313,087 
Total investments available for sale4,584,844 4,962,887 
Other invested assets263,126 170,472 
Total investments4,847,970 5,133,359 
Cash79,467 81,491 
Accrued investment income29,598 26,546 
Accounts receivable59,069 46,157 
Deferred policy acquisition costs10,408 12,178 
Property and equipment (at cost, less accumulated depreciation of $66,562 in 2022 and
$64,340 in 2021)
19,778 11,921 
Prepaid federal income tax405,910 360,810 
Other assets104,704 49,712 
Total assets$5,556,904 $5,722,174 
Liabilities and Stockholders’ Equity  
Liabilities  
Reserve for losses and LAE$212,494 $407,445 
Unearned premium reserve169,413 185,385 
Net deferred tax liability340,627 373,654 
Credit facility borrowings (at carrying value, less unamortized deferred costs of $4,400 in 2022 and $5,177 in 2021)
420,600 419,823 
Other accrued liabilities119,562 99,753 
Total liabilities1,262,696 1,486,060 
Commitments and contingencies (see Note 7)
Stockholders’ Equity  
Common shares, $0.015 par value:
  
Authorized - 233,333; issued and outstanding - 107,697 shares in 2022 and 109,377
shares in 2021
1,615 1,641 
Additional paid-in capital1,345,598 1,428,952 
Accumulated other comprehensive (loss) income(423,577)50,707 
Retained earnings3,370,572 2,754,814 
Total stockholders’ equity4,294,208 4,236,114 
Total liabilities and stockholders’ equity$5,556,904 $5,722,174 
 
See accompanying notes to condensed consolidated financial statements.

1

Essent Group Ltd. and Subsidiaries
 
Condensed Consolidated Statements of Comprehensive Income (Unaudited)
 
 Three Months Ended September 30,Nine Months Ended September 30,
(In thousands, except per share amounts)2022202120222021
Revenues:  
Net premiums written$209,230 $202,348 $619,303 $608,996 
Decrease (increase) in unearned premiums(1,296)16,370 15,972 46,226 
Net premiums earned207,934 218,718 635,275 655,222 
Net investment income32,594 21,573 86,613 65,104 
Realized investment (losses) gains, net175 221 (7,648)609 
Income from other invested assets9,617 40,741 36,275 41,389 
Other income11,447 2,283 20,272 9,270 
Total revenues261,767 283,536 770,787 771,594 
Losses and expenses:    
(Benefit) provision for losses and LAE4,252 (7,483)(178,805)34,490 
Other underwriting and operating expenses42,144 42,272 124,838 125,625 
Interest expense4,450 2,063 9,563 6,187 
Total losses and expenses50,846 36,852 (44,404)166,302 
Income before income taxes210,921 246,684 815,191 605,292 
Income tax expense32,870 41,331 131,204 104,496 
Net income$178,051 $205,353 $683,987 $500,796 
Earnings per share:    
Basic$1.67 $1.85 $6.37 $4.48 
Diluted1.66 1.84 6.35 4.47 
Weighted average shares outstanding:    
Basic106,870 111,001 107,314 111,708 
Diluted107,337 111,387 107,732 112,070 
Net income$178,051 $205,353 $683,987 $500,796 
Other comprehensive income (loss):    
Change in unrealized appreciation (depreciation) of investments, net of tax expense (benefit) of ($22,000) and ($8,599) in the three months ended September 30, 2022 and 2021 and ($82,132) and ($10,944) in the nine months ended September 30, 2022 and 2021
(137,010)(36,917)(474,284)(59,760)
Total other comprehensive income (loss)(137,010)(36,917)(474,284)(59,760)
Comprehensive income$41,041 $168,436 $209,703 $441,036 
 
See accompanying notes to condensed consolidated financial statements.

2

Essent Group Ltd. and Subsidiaries
 
Condensed Consolidated Statements of Changes in Stockholders’ Equity (Unaudited)
 
 Three Months Ended September 30,Nine Months Ended September 30,
(In thousands)2022202120222021
Common Shares  
Balance, beginning of period$1,615 $1,687 $1,641 $1,686 
Issuance of management incentive shares  9 9 
Cancellation of treasury stock (23)(35)(31)
Balance, end of period1,615 1,664 1,615 1,664 
Additional Paid-In Capital
Balance, beginning of period1,340,650 1,558,142 1,428,952 1,571,163 
Dividends and dividend equivalents declared264 190 683 559 
Issuance of management incentive shares  (9)(9)
Stock-based compensation expense4,702 5,511 13,707 16,075 
Cancellation of treasury stock(18)(70,838)(97,735)(94,783)
Balance, end of period1,345,598 1,493,005 1,345,598 1,493,005 
Accumulated Other Comprehensive Income (Loss)
Balance, beginning of period(286,567)115,431 50,707 138,274 
Other comprehensive loss(137,010)(36,917)(474,284)(59,760)
Balance, end of period(423,577)78,514 (423,577)78,514 
Retained Earnings
Balance, beginning of period3,216,297 2,409,568 2,754,814 2,151,510 
Net income178,051 205,353 683,987 500,796 
Dividends and dividend equivalents declared(23,776)(20,120)(68,229)(57,505)
Balance, end of period3,370,572 2,594,801 3,370,572 2,594,801 
Treasury Stock
Balance, beginning of period    
Treasury stock acquired(18)(70,861)(97,770)(94,814)
Cancellation of treasury stock18 70,861 97,770 94,814 
Balance, end of period    
Total Stockholders' Equity$4,294,208 $4,167,984 $4,294,208 $4,167,984 

See accompanying notes to condensed consolidated financial statements.

3

Essent Group Ltd. and Subsidiaries
 
Condensed Consolidated Statements of Cash Flows (Unaudited)
 
 Nine Months Ended September 30,
(In thousands)20222021
Operating Activities  
Net income$683,987 $500,796 
Adjustments to reconcile net income to net cash provided by operating activities:  
Realized investment losses (gains), net7,648 (609)
Income from other invested assets(36,275)(41,389)
Distribution of income from other invested assets11,149 1,568 
Depreciation and amortization2,230 2,578 
Stock-based compensation expense13,707 16,075 
Amortization of premium on investment securities14,654 25,300 
Deferred income tax provision49,106 62,670 
Change in:  
Accrued investment income(3,052)(4,694)
Accounts receivable(11,811)1,780 
Deferred policy acquisition costs1,770 3,698 
Prepaid federal income tax(45,100)(45,650)
Other assets(50,722)(3,319)
Reserve for losses and LAE(194,951)38,015 
Unearned premium reserve(15,972)(46,226)
Other accrued liabilities(9,912)7,574 
Net cash provided by operating activities416,456 518,167 
Investing Activities  
Net change in short-term investments(18,052)417,078 
Purchase of investments available for sale(1,022,095)(1,503,051)
Proceeds from maturities and paydowns of investments available for sale183,232 214,424 
Proceeds from sales of investments available for sale673,945 509,998 
Purchase of other invested assets(69,019)(56,166)
Return of investment from other invested assets1,490 16,000 
Purchase of property and equipment(2,511)(1,695)
Net cash used in investing activities(253,010)(403,412)
Financing Activities  
Credit facility borrowings 25,000 
Credit facility repayments (25,000)
Treasury stock acquired(97,770)(94,814)
Payment of issuance costs for credit facility(154) 
Dividends paid(67,546)(56,946)
Net cash used in financing activities(165,470)(151,760)
Net (decrease) increase in cash(2,024)(37,005)
Cash at beginning of year81,491 102,830 
Cash at end of period$79,467 $65,825 
Supplemental Disclosure of Cash Flow Information
Income tax payments$(73,226)$(35,000)
Interest payments(8,044)(5,321)
Noncash Transactions
Lease liabilities arising from obtaining right-of-use assets$10,096 $ 
 
See accompanying notes to condensed consolidated financial statements.
4

Essent Group Ltd. and Subsidiaries
 
Notes to Condensed Consolidated Financial Statements (Unaudited)
 
In these notes to condensed consolidated financial statements, “Essent”, “Company”, “we”, “us”, and “our” refer to Essent Group Ltd. and its subsidiaries, unless the context otherwise requires.
 
Note 1. Nature of Operations and Basis of Presentation
 
Essent Group Ltd. (“Essent Group”) is a Bermuda-based holding company, which, through its wholly-owned subsidiaries, offers private mortgage insurance and reinsurance for mortgages secured by residential properties located in the United States. Mortgage insurance facilitates the sale of low down payment (generally less than 20%) mortgage loans into the secondary mortgage market, primarily to two government-sponsored enterprises (“GSEs”), Fannie Mae and Freddie Mac.

The primary mortgage insurance operations are conducted through Essent Guaranty, Inc. (“Essent Guaranty”), a wholly-owned subsidiary approved as a qualified mortgage insurer by the GSEs and is licensed to write mortgage insurance in all 50 states and the District of Columbia. Essent Guaranty reinsures new insurance written ("NIW") to Essent Reinsurance Ltd. (“Essent Re”), an affiliated Bermuda domiciled Class 3A Insurer licensed pursuant to Section 4 of the Bermuda Insurance Act 1978 that provides insurance and reinsurance coverage of mortgage credit risk. In April 2021, Essent Guaranty and Essent Re agreed to increase the quota share reinsurance coverage of Essent Guaranty’s NIW provided by Essent Re from 25% to 35% effective January 1, 2021. The quota share reinsurance coverage provided by Essent Re for Essent Guaranty’s NIW prior to January 1, 2021 will continue to be 25%, the quota share percentage in effect at the time NIW was first ceded. Essent Re also provides insurance and reinsurance to Freddie Mac and Fannie Mae. In 2016, Essent Re formed Essent Agency (Bermuda) Ltd., a wholly-owned subsidiary, which provides underwriting consulting services to third-party reinsurers. In accordance with certain state law requirements then in effect, Essent Guaranty also reinsures that portion of the risk that is in excess of 25% of the mortgage balance with respect to loans insured prior to April 1, 2019, after consideration of other reinsurance, to Essent Guaranty of PA, Inc. (“Essent PA”), an affiliate.

In addition to offering mortgage insurance, we provide contract underwriting services on a limited basis through CUW Solutions, LLC ("CUW Solutions"), a Delaware limited liability company, that provides, among other things, mortgage contract underwriting services to lenders and mortgage insurance underwriting services to affiliates.

We have prepared the condensed consolidated financial statements included herein pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). We have condensed or omitted certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) pursuant to such rules and regulations. In the opinion of management, the statements include all adjustments (which include normal recurring adjustments) required for a fair statement of financial position, results of operations and cash flows for the interim periods presented. These statements should be read in conjunction with the consolidated financial statements and notes thereto, including Note 1 and Note 2 to the consolidated financial statements, included in our Annual Report on Form 10-K for the year ended December 31, 2021, which discloses the principles of consolidation and a summary of significant accounting policies. The results of operations for the interim periods are not necessarily indicative of the results for the full year. We evaluated the need to recognize or disclose events that occurred subsequent to September 30, 2022 prior to the issuance of these condensed consolidated financial statements.

Certain amounts in prior years have been reclassified to conform to the current year presentation.
 
Note 2. Recently Issued Accounting Standards

Accounting Standards Not Yet Adopted

    In March 2020, the Financial Accounting Standards Board ("FASB") issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments in this update provide temporary optional guidance to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform. It provides optional expedients and exceptions for applying generally accepted accounting principles to contract, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. This standard may be elected and applied prospectively over time from March 12, 2020 through December 31, 2022 as reference rate reform activities occur. The adoption of, and future elections under, this ASU are not expected to have a material impact on our consolidated financial statements as the ASU will ease, if warranted, the requirements for accounting for the future effects of
5

Essent Group Ltd. and Subsidiaries
 
Notes to Condensed Consolidated Financial Statements (Unaudited)

the rate reform. We continue to monitor the impact the discontinuance of LIBOR or another reference rate will have on our contracts and other transactions.

In June 2022, the FASB issued ASU No. 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. This update clarifies the guidance in ASC 820 on the fair value measurement of an equity security that is subject to a contractual sale restriction and requires specific disclosures related to such an equity security. The update clarifies that a contractual sale restriction prohibiting the sale of an equity security is a characteristic of the reporting entity holding the equity security and is not included in the equity security's unit of account. Accordingly, an entity should not consider the contractual sale restriction when measuring the equity security’s fair value. The update also requires specific disclosures related to equity securities that are subject to contractual sale restrictions, including (1) the fair value of such equity securities reflected in the balance sheet, (2) the nature and remaining duration of the corresponding restrictions, and (3) any circumstances that could cause a lapse in the restrictions. The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years, with early adoption permitted. The adoption of this ASU is not expected to have a material effect on the Company's consolidated operating results or financial position.

Note 3. Investments
 
Investments available for sale consist of the following:
September 30, 2022 (In thousands)Amortized
Cost
Unrealized
Gains
Unrealized
Losses
Fair
Value
U.S. Treasury securities$566,466 $2 $(30,832)$535,636 
U.S. agency securities    
U.S. agency mortgage-backed securities879,028  (126,792)752,236 
Municipal debt securities (1)627,772 95 (68,083)559,784 
Non-U.S. government securities70,126  (9,292)60,834 
Corporate debt securities (2)1,501,150 7 (155,888)1,345,269 
Residential and commercial mortgage securities586,771 123 (63,286)523,608 
Asset-backed securities645,522 15 (37,207)608,330 
Money market funds199,147   199,147 
Total investments available for sale$5,075,982 $242 $(491,380)$4,584,844 
December 31, 2021 (In thousands)Amortized
Cost
Unrealized
Gains
Unrealized
Losses
Fair
Value
U.S. Treasury securities$447,926 $3,833 $(2,966)$448,793 
U.S. agency securities5,501 3  5,504 
U.S. agency mortgage-backed securities1,005,611 13,365 (10,113)1,008,863 
Municipal debt securities (1)598,764 30,122 (1,287)627,599 
Non-U.S. government securities77,366 3,232 (855)79,743 
Corporate debt securities (2)1,428,645 36,067 (9,465)1,455,247 
Residential and commercial mortgage securities541,638 10,452 (6,667)545,423 
Asset-backed securities582,144 1,673 (2,114)581,703 
Money market funds210,012   210,012 
Total investments available for sale$4,897,607 $98,747 $(33,467)$4,962,887 
 September 30,December 31,
(1) The following table summarizes municipal debt securities as of:20222021
Special revenue bonds78.5 %77.1 %
General obligation bonds21.5 20.5 
Certificate of participation bonds  1.9 
Tax allocation bonds 0.5 
Total100.0 %100.0 %
6

Essent Group Ltd. and Subsidiaries
 
Notes to Condensed Consolidated Financial Statements (Unaudited)

 September 30,December 31,
(2) The following table summarizes corporate debt securities as of:20222021
Financial39.4 %33.7 %
Consumer, non-cyclical17.5 19.8 
Communications8.8 11.4 
Industrial6.8 7.0 
Consumer, cyclical7.2 7.0 
Energy6.6 6.0 
Technology5.6 6.8 
Utilities6.1 4.6 
Basic materials2.0 3.7 
Total100.0 %100.0 %

7

Essent Group Ltd. and Subsidiaries
 
Notes to Condensed Consolidated Financial Statements (Unaudited)

The amortized cost and fair value of investments available for sale at September 30, 2022, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Because most U.S. agency mortgage-backed securities, residential and commercial mortgage securities and asset-backed securities provide for periodic payments throughout their lives, they are listed below in separate categories.
 
(In thousands)Amortized
Cost
Fair
Value
U.S. Treasury securities:  
Due in 1 year$169,120 $167,667 
Due after 1 but within 5 years353,483 330,053 
Due after 5 but within 10 years38,835 34,103 
Due after 10 years5,028 3,813 
Subtotal566,466 535,636 
U.S. agency securities:  
Due in 1 year  
Due after 1 but within 5 years  
Subtotal  
Municipal debt securities:  
Due in 1 year6,992 6,943 
Due after 1 but within 5 years141,922 137,108 
Due after 5 but within 10 years164,538 151,508 
Due after 10 years314,320 264,225 
Subtotal627,772 559,784 
Non-U.S. government securities:
Due in 1 year10,452 10,396 
Due after 1 but within 5 years27,362 25,697 
Due after 5 but within 10 years8,893 7,979 
Due after 10 years23,419 16,762 
Subtotal70,126 60,834 
Corporate debt securities:  
Due in 1 year235,975 233,177 
Due after 1 but within 5 years696,023 657,186 
Due after 5 but within 10 years419,294 345,569 
Due after 10 years149,858 109,337 
Subtotal1,501,150 1,345,269 
U.S. agency mortgage-backed securities879,028 752,236 
Residential and commercial mortgage securities586,771 523,608 
Asset-backed securities645,522 608,330 
Money market funds199,147 199,147 
Total investments available for sale$5,075,982 $4,584,844 

8

Essent Group Ltd. and Subsidiaries
 
Notes to Condensed Consolidated Financial Statements (Unaudited)

The components of realized investment (losses) gains, net on the condensed consolidated statements of comprehensive income were as follows:
 
 Three Months Ended September 30,Nine Months Ended September 30,
(In thousands)2022202120222021
Realized gross gains$1,650 $654 $14,397 $1,422 
Realized gross losses(1,370)(433)(14,634)(813)
Impairment loss(105) (7,411) 
 
The fair value of investments available for sale in an unrealized loss position and the related unrealized losses for which no allowance for credit loss has been recorded were as follows:
 
 Less than 12 months12 months or moreTotal
September 30, 2022 (In thousands)Fair
Value
Gross
Unrealized
Losses
Fair
Value
Gross
Unrealized
Losses
Fair
Value
Gross
Unrealized
Losses
U.S. Treasury securities$361,655 $(15,490)$161,968 $(15,342)$523,623 $(30,832)
U.S. agency mortgage-backed securities508,415 (74,350)243,821 (52,442)752,236 (126,792)
Municipal debt securities527,796 (64,097)14,588 (3,986)542,384 (68,083)
Non-U.S. government securities51,784 (5,922)9,050 (3,370)60,834 (9,292)
Corporate debt securities1,166,786 (127,688)143,745 (28,200)1,310,531 (155,888)
Residential and commercial mortgage securities
376,356 (38,046)143,118 (25,240)519,474 (63,286)
Asset-backed securities481,105 (27,029)122,339 (10,178)603,444 (37,207)
Total$3,473,897 $(352,622)$838,629 $(138,758)$4,312,526 $(491,380)
 
 Less than 12 months12 months or moreTotal
December 31, 2021 (In thousands)Fair
Value
Gross
Unrealized
Losses
Fair
Value
Gross
Unrealized
Losses
Fair
Value
Gross
Unrealized
Losses
U.S. Treasury securities$207,122 $(2,170)$28,012 $(796)$235,134 $(2,966)
U.S. agency mortgage-backed securities