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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, 2021
 
      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 2, 2021 was 110,432,477.


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, 2020 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;

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)20212020
Assets  
Investments  
Fixed maturities available for sale, at fair value (amortized cost: 2021 — $4,462,616;
2020 — $3,677,815)
$4,560,235 $3,838,513 
Short-term investments available for sale, at fair value (amortized cost: 2021 —
$309,781; 2020 — $726,875)
309,782 726,860 
Total investments available for sale4,870,017 4,565,373 
Other invested assets161,250 88,904 
Total investments5,031,267 4,654,277 
Cash65,825 102,830 
Accrued investment income24,642 19,948 
Accounts receivable47,760 50,140 
Deferred policy acquisition costs13,307 17,005 
Property and equipment (at cost, less accumulated depreciation of $63,545 in 2021 and
$60,967 in 2020)
12,485 15,095 
Prepaid federal income tax348,286 302,636 
Other assets45,944 40,793 
Total assets$5,589,516 $5,202,724 
Liabilities and Stockholders’ Equity  
Liabilities  
Reserve for losses and LAE$412,956 $374,941 
Unearned premium reserve204,210 250,436 
Net deferred tax liability356,835 305,109 
Credit facility borrowings (at carrying value, less unamortized deferred costs of $2,386 in 2021 and $3,280 in 2020)
322,614 321,720 
Other accrued liabilities124,917 87,885 
Total liabilities1,421,532 1,340,091 
Commitments and contingencies (see Note 7)
Stockholders’ Equity  
Common shares, $0.015 par value:
  
Authorized - 233,333; issued and outstanding - 110,915 shares in 2021 and 112,423
shares in 2020
1,664 1,686 
Additional paid-in capital1,493,005 1,571,163 
Accumulated other comprehensive income78,514 138,274 
Retained earnings2,594,801 2,151,510 
Total stockholders’ equity4,167,984 3,862,633 
Total liabilities and stockholders’ equity$5,589,516 $5,202,724 
 
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)2021202020212020
Revenues:  
Net premiums written$202,348 $222,223 $608,996 $619,870 
Decrease in unearned premiums16,370 35 46,226 20,355 
Net premiums earned218,718 222,258 655,222 640,225 
Net investment income21,573 18,639 65,104 59,138 
Realized investment gains, net221 267 609 2,133 
Income (loss) from other invested assets40,741 (445)41,389 (217)
Other income2,283 2,319 9,270 6,676 
Total revenues283,536 243,038 771,594 707,955 
Losses and expenses:    
(Benefit) provision for losses and LAE(7,483)55,280 34,490 239,220 
Other underwriting and operating expenses42,272 37,100 125,625 117,866 
Interest expense2,063 2,227 6,187 6,925 
Total losses and expenses36,852 94,607 166,302 364,011 
Income before income taxes246,684 148,431 605,292 343,944 
Income tax expense41,331 23,895 104,496 54,505 
Net income$205,353 $124,536 $500,796 $289,439 
Earnings per share:    
Basic$1.85 $1.11 $4.48 $2.78 
Diluted1.84 1.11 4.47 2.77 
Weighted average shares outstanding:    
Basic111,001 111,908 111,708 104,147 
Diluted111,387 112,134 112,070 104,383 
Net income$205,353 $124,536 $500,796 $289,439 
Other comprehensive income (loss):    
Change in unrealized (depreciation) appreciation of investments, net of tax (benefit) expense of ($8,599) and $3,856 in the three months ended September 30, 2021 and 2020 and ($10,944) and $14,469 in the nine months ended September 30, 2021 and 2020
(36,917)12,036 (59,760)76,247 
Total other comprehensive (loss) income(36,917)12,036 (59,760)76,247 
Comprehensive income$168,436 $136,572 $441,036 $365,686 
 
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)2021202020212020
Common Shares  
Balance, beginning of period$1,687 $1,686 $1,686 $1,476 
Issuance of common shares— — — 207 
Issuance of management incentive shares— — 9 5 
Cancellation of treasury stock(23)— (31)(2)
Balance, end of period1,664 1,686 1,664 1,686 
Additional Paid-In Capital
Balance, beginning of period1,558,142 1,561,737 1,571,163 1,118,655 
Issuance of common shares, net of issuance costs of $18,894 in 2020
— (19)— 439,749 
Dividends and dividend equivalents declared190 163 559 486 
Issuance of management incentive shares— — (9)(5)
Stock-based compensation expense5,511 4,567 16,075 13,915 
Cancellation of treasury stock(70,838)— (94,783)(6,352)
Balance, end of period1,493,005 1,566,448 1,493,005 1,566,448 
Accumulated Other Comprehensive Income (Loss)
Balance, beginning of period115,431 120,398 138,274 56,187 
Other comprehensive (loss) income(36,917)12,036 (59,760)76,247 
Balance, end of period78,514 132,434 78,514 132,434 
Retained Earnings
Balance, beginning of period2,409,568 1,939,508 2,151,510 1,808,527 
Net income205,353 124,536 500,796 289,439 
Dividends and dividend equivalents declared(20,120)(18,068)(57,505)(51,990)
Balance, end of period2,594,801 2,045,976 2,594,801 2,045,976 
Treasury Stock
Balance, beginning of period    
Treasury stock acquired(70,861)— (94,814)(6,354)
Cancellation of treasury stock70,861 — 94,814 6,354 
Balance, end of period    
Total Stockholders' Equity$4,167,984 $3,746,544 $4,167,984 $3,746,544 

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)20212020
Operating Activities  
Net income$500,796 $289,439 
Adjustments to reconcile net income to net cash provided by operating activities:  
Gain on the sale of investments, net(609)(2,133)
(Income) loss from other invested assets(41,389)217 
Distribution of income from other invested assets1,568 1,010 
Depreciation and amortization2,578 2,522 
Stock-based compensation expense16,075 13,915 
Amortization of premium on investment securities25,300 18,075 
Deferred income tax provision62,670 17,417 
Change in:  
Accrued investment income(4,694)(617)
Accounts receivable1,780 (4,713)
Deferred policy acquisition costs3,698 (999)
Prepaid federal income tax(45,650)(17,251)
Other assets(3,319)(7,563)
Reserve for losses and LAE38,015 238,375 
Unearned premium reserve(46,226)(20,355)
Other accrued liabilities7,574 21,167 
Net cash provided by operating activities518,167 548,506 
Investing Activities  
Net change in short-term investments417,078 (637,590)
Purchase of investments available for sale(1,503,051)(1,053,494)
Proceeds from maturity of investments available for sale214,424 185,433 
Proceeds from sales of investments available for sale509,998 426,023 
Purchase of other invested assets(56,166)(11,381)
Return of investment from other invested assets16,000 9,046 
Purchase of property and equipment(1,695)(1,354)
Net cash used in investing activities(403,412)(1,083,317)
Financing Activities  
Issuance of common shares, net of costs 440,018 
Credit facility borrowings25,000 200,000 
Credit facility repayments(25,000) 
Treasury stock acquired(94,814)(6,354)
Payment of issuance costs for credit facility (8)
Dividends paid(56,946)(51,504)
Net cash (used in) provided by financing activities(151,760)582,152 
Net (decrease) increase in cash(37,005)47,341 
Cash at beginning of year102,830 71,350 
Cash at end of period$65,825 $118,691 
Supplemental Disclosure of Cash Flow Information
Income tax payments$(35,000)$(27,500)
Interest payments(5,321)(6,566)
 
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, 2020, 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, 2021 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.

Note 3. Investments
 
Investments available for sale consist of the following:
September 30, 2021 (In thousands)Amortized
Cost
Unrealized
Gains
Unrealized
Losses
Fair
Value
U.S. Treasury securities$327,320 $5,117 $(1,221)$331,216 
U.S. agency securities5,507 29  5,536 
U.S. agency mortgage-backed securities976,415 18,543 (5,406)989,552 
Municipal debt securities (1)561,493 31,861 (896)592,458 
Non-U.S. government securities77,424 3,756 (1,186)79,994 
Corporate debt securities (2)1,487,833 43,907 (7,596)1,524,144 
Residential and commercial mortgage securities529,822 13,573 (4,209)539,186 
Asset-backed securities553,127 2,235 (887)554,475 
Money market funds253,456   253,456 
Total investments available for sale$4,772,397 $119,021 $(21,401)$4,870,017 
December 31, 2020 (In thousands)Amortized
Cost
Unrealized
Gains
Unrealized
Losses
Fair
Value
U.S. Treasury securities$259,378 $9,088 $(22)$268,444 
U.S. agency securities17,930 155  18,085 
U.S. agency mortgage-backed securities963,670 33,205 (970)995,905 
Municipal debt securities (1)513,870 37,662 (15)551,517 
Non-U.S. government securities56,045 5,562  61,607 
Corporate debt securities (2)1,070,027 56,864 (379)1,126,512 
Residential and commercial mortgage securities391,921 18,641 (1,280)409,282 
Asset-backed securities452,527 3,246 (1,056)454,717 
Money market funds679,322  (18)679,304 
Total investments available for sale$4,404,690 $164,423 $(3,740)$4,565,373 
 September 30,December 31,
(1) The following table summarizes municipal debt securities as of :20212020
Special revenue bonds78.0 %76.8 %
General obligation bonds19.4 20.3 
Certificate of participation bonds 2.0 2.3 
Tax allocation bonds0.6 0.6 
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 :20212020
Financial35.8 %34.9 %
Consumer, non-cyclical19.2 19.1 
Communications11.7 9.3 
Industrial7.6 5.3 
Consumer, cyclical6.4 8.0 
Energy5.5 8.2 
Technology5.4 6.1 
Utilities4.9 5.9 
Basic materials3.4 3.1 
Government0.1 0.1 
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, 2021, 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$41,836 $41,915 
Due after 1 but within 5 years253,103 255,311 
Due after 5 but within 10 years31,396 32,960 
Due after 10 years985 1,030 
Subtotal327,320 331,216 
U.S. agency securities:  
Due in 1 year5,507 5,536 
Subtotal5,507 5,536 
Municipal debt securities:  
Due in 1 year9,058 9,099 
Due after 1 but within 5 years120,844 126,574 
Due after 5 but within 10 years220,458 235,041 
Due after 10 years211,133 221,744 
Subtotal561,493 592,458 
Non-U.S. government securities:
Due in 1 year4,370 4,426 
Due after 1 but within 5 years24,290 25,795 
Due after 5 but within 10 years21,457 23,497 
Due after 10 years27,307 26,276 
Subtotal77,424 79,994 
Corporate debt securities:  
Due in 1 year174,413 175,621 
Due after 1 but within 5 years664,536 681,475 
Due after 5 but within 10 years398,353 410,404 
Due after 10 years250,531 256,644 
Subtotal1,487,833 1,524,144 
U.S. agency mortgage-backed securities976,415 989,552 
Residential and commercial mortgage securities529,822 539,186 
Asset-backed securities553,127 554,475 
Money market funds253,456 253,456 
Total investments available for sale$4,772,397 $4,870,017 

Gross gains and losses realized on the sale of investments available for sale were as follows:
 
 Three Months Ended September 30,Nine Months Ended September 30,
(In thousands)2021202020212020
Realized gross gains$654 $391 $1,422 $4,916 
Realized gross losses433 124 813 2,354 
 
8

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

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, 2021 (In thousands)Fair
Value
Gross
Unrealized
Losses
Fair
Value
Gross
Unrealized
Losses
Fair
Value
Gross
Unrealized
Losses
U.S. Treasury securities$192,231 $(1,221)$ $ $192,231 $(1,221)
U.S. agency mortgage-backed securities431,344 (5,119)23,894 (287)455,238 (5,406)
Municipal debt securities64,368 (896)  64,368 (896)
Non-U.S. government securities23,561 (1,186)  23,561 (1,186)
Corporate debt securities413,519 (6,772)16,215 (824)429,734 (7,596)
Residential and commercial mortgage securities
230,806 (3,517)20,589 (692)251,395 (4,209)
Asset-backed securities271,485 (717)18,149 (170)289,634 (887)
Total$1,627,314 $(19,428)$78,847 $(1,973)$1,706,161 $(21,401)
 
 Less than 12 months12 months or moreTotal
December 31, 2020 (In thousands)Fair
Value
Gross
Unrealized
Losses
Fair
Value
Gross
Unrealized
Losses
Fair
Value
Gross
Unrealized
Losses
U.S. Treasury securities$28,776 $(22)$ $ $28,776 $(22)
U.S. agency mortgage-backed securities152,671 (924)3,007 (46)155,678 (970)
Municipal debt securities3,838 (15)  3,838 (15)
Corporate debt securities141,803 (379)  141,803 (379)
Residential and commercial mortgage securities
63,203 (777)9,516