Sustainability Report 2022
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Sustainability Report 2022
A MESSAGE FROM OUR CEO
At Essent, our mission is to serve as a trusted, best-in-class Essent clearly illustrated its promise of Innovation in 2021
partner to the housing finance industry by responsibly offering launching the next generation of our pricing engine
mortgage insurance, reinsurance and risk management products EssentEDGE®, making significant advances in our cloud
to mortgage lenders and investors. Together we support migration and continuing our investment in the transformation
affordable and sustainable homeownership. We are proud of of our operations to deliver a differentiated customer
our success and the path we are on as a good experience. These Innovation initiatives are focused on meeting
corporate citizen and member of the the growing needs and expectations of our customers. Our
mortgage insurance industry. Innovation strategy is designed to deliver our best price
to our customers and support broadening the accessibility
Essent’s continued success is directly
of homeownership.
related to our commitment to our Core
Values — Integrity, Service, Innovation As a responsible corporate citizen, Essent is dedicated to
and Community. These values are the Service and Community. Essent’s practices make a difference
building blocks of Essent’s business and in the communities where we live and work. Our corporate
ESG practices. giving and employee volunteer programs are designed to
sponsor national and local community organizations with
Essent’s commitment to Integrity starts
a focus on children, education, health and housing. Please read
with our Board’s active oversight of
about the success of our long-term initiatives in education and
our Code of Business Conduct,
more recent commitment to community mental health both of
as well as our environmental
which are included in this report. I am very pleased with the
awareness strategy, cybersecurity,
positive impact Essent is making year over year.
corporate culture, employee
engagement and diversity and Essent has a talented team of leaders and employees who are
community commitments. In 2021, dedicated to our business, mission and values. I am pleased
we designated an ESG officer to share our 2022 Sustainability Report, which illustrates that
and created an internal ESG dedication, as well as our continued focus on being a good
committee comprised of cross- neighbor, business partner, employer, community supporter
functional leaders dedicated to and global citizen.
advancing our sustainability
Mark A. Casale
goals and long-term value
Chairman & CEO
creation.
March 2022
CONTENT
NAVIGATING OUR REPORT…
1.0 ENVIRONMENTAL, SOCIAL AND 01 5.0 OPERATING WITH INTEGRITY 13
GOVERNANCE (ESG) AT ESSENT GROUP
Leading With Integrity 14
ESG Risk Management And Responsible Investment 16
2.0 PANDEMIC RESPONSE AND RESOURCES 03
Business Continuity, Cybersecurity And Data Privacy 17
Protecting The Environment 18
3.0 INVESTING IN OUR EMPLOYEES 05
Compensation and Benefits 06
Trademark Attributions 19
Employee Engagement and Development 08
Legal Disclaimer 19
Diversity And Inclusion 08
4.0 BEING A COMMUNITY PARTNER 09
Employee Matching And Volunteering 10
Our Commitment to Giving Back 11
Creating Pathways To Homeownership 12
2022 ESSENT GROUP SUSTAINABILITY REPORT i
1.0 ENVIRONMENTAL, SOCIAL AND GOVERNANCE AT ESSENT GROUP
To serve as a trusted, best-in-class
partner to the housing finance industry by
responsibly offering mortgage insurance,
reinsurance and risk management products
to mortgage lenders and investors that
support affordable and sustainable
homeownership.
2022 ESSENT GROUP SUSTAINABILITY REPORT 01
1.0 ESG AT ESSENT GROUP
OUR VALUES HOW WE COMBINE OUR VALUES AND ESG FOCUS
Integrity
We Believe Our Employees Are Our Greatest Asset.
We adhere to high ethical standards and are committed to doing
what is best for our policy holders, employees and shareholders. As a strong believer in education, we provide many
opportunities to support, grow and challenge our employees,
Service including:
We are focused on managing risk and dedicated to serving as • Competitive benefits
a strong and fair counterparty. • Career development opportunities
• Flexible work arrangements
Innovation
• A friendly and professional work environment dedicated to
We are motivated to generate solutions for our customers that equality and inclusion
raise the bar within our organization and our industry.
Investing in our employees enables us to attract and retain
Community best-in-class team members who act like owners.
We are dedicated to responsible corporate stewardship through
philanthropic, environmental and social initiatives. We Enable Homeownership And Invest In Communities.
We believe our long-term success depends not only on our Having a home provides a sense of security, well-being and
belonging. The very core of what we do (mortgage insurance)
business strategy and competitive advantages, but also on keeping
enables more people to buy their own homes, creating a
our promises to our customers, employees and communities.
positive ripple effect throughout their communities. The
Under the direction of our Chief Executive Officer and the Board expanded opportunity we provide to homeowners helps them
of Directors, we are committed to supporting ESG initiatives that accumulate wealth that comes with homeownership. We
are relevant to the Company and align with our Company-wide also employ approximately 340 people who live, work and
dedication to responsible corporate citizenship that positively give back to their communities. Our employees volunteer
impacts the communities and people we serve. in schools, day cares and nursing homes. They serve on
the boards of universities, high schools and churches. They
run marathons, build houses and serve meals at homeless
BOARD OVERSIGHT
shelters ― all within their communities.
Essent has a strong top-down approach to ESG. Our Board is
We also provide service opportunities to our employees
very active and has oversight over our environmental awareness,
and offer an employee match program to encourage and
cybersecurity, corporate culture, employee engagement, diversity
enhance charitable giving. Additionally, the company has its
and community commitments. Our Nominating, Governance
own charitable giving program that is focused on supporting
and Corporate Responsibility Committee is responsible under
education, children and housing.
its charter for the “governance” and “environmental” aspects of
the Company’s ESG programs. The Compensation Committee’s
We Are Prudent Risk Managers And Operate In
role includes overseeing the “social” aspects of the Company’s
A Sustainable Way.
ESG programs, including receiving periodic updates from the
Company’s management team responsible for significant social As professional risk managers, we are experienced at
activities. In addition, our Corporate Governance Guidelines further analyzing the consequences of our actions. Planning for
detail the Board’s oversight of technology, innovation, cyber risk the long-term through a measured approach resonates
and continued commitment to diversity and inclusion. throughout our business.
At the same time, we strive to operate in a sustainable manner
to the benefit of our broader environment.
2022 ESSENT GROUP SUSTAINABILITY REPORT 02
2.0 PANDEMIC RESPONSE AND RESOURCES
The safety and well-being of our
employees, customers and communities
are our primary concern.
2022 ESSENT GROUP SUSTAINABILITY REPORT 03
2.0 PANDEMIC RESPONSE AND RESOURCES
Pandemic Planning
In 2021, Essent implemented a comprehensive DEDICATED RESOURCE CENTER
safe return-to-work plan for our office-bound We maintain a dedicated COVID-19 Resource Center on our website
employee base. We believe that the long-term to provide guidance to lenders and servicers regarding their
strength and viability of the company is dependent mortgage insurance (MI) coverage. Visit our COVID-19 Resource
in part on office-based activities that cannot be Center at essent.us/covid-19 to learn more.
robustly duplicated in a remote environment —
personal interactions, leadership development
and professional mentoring.
…Essent implemented
Our return-to-work plan included the following measures:
• The adoption of a new Health and Wellness policy
a comprehensive safe
• Updated office facilities including low touch doors, motion return-to-work plan
detector sinks and soap dispensers, upgraded low-touch coffee
machines, etc. for our office-bound
• Hand sanitizing stations placed strategically around each office
• Disinfecting wipes placed in high traffic zones
employee base.
• Nightly cleaning crews contracted to disinfect common
areas and workspaces
• Robust contact tracing program
• COVID-19 vaccine/booster and general flu shots available in the
office for employees and families
We continue to monitor the recommendations and guidelines
provided by the CDC, federal, state and local governments to
ensure a flexible, safe and effective workplace.
2022 ESSENT GROUP SUSTAINABILITY REPORT 04
3.0 INVESTING IN OUR EMPLOYEES
We believe an engaged and diverse
workforce builds a sustainable future.
2022 ESSENT GROUP SUSTAINABILITY REPORT 05
3.0 INVESTING IN OUR EMPLOYEES
Compensation and Benefits
~340
EMPLOYEES
EMPLOYEE
RETENTION RATE
OVER 5 YEARS
~95%
UNITED STATES & BERMUDA
OFFICES
PENNSYLVANIA, NORTH CAROLINA, ~90% OF EMPLOYEES
ARE EQUITY
SHAREHOLDERS
CALIFORNIA & BERMUDA
Our employees are the key to our long-term Fair Wages And Benefits.
success. At Essent, we encourage our employees to Employee engagement begins at the time of hire by paying a fair
cultivate their entrepreneurial spirit and embrace and livable wage and providing medical, dental, vision, prescription,
our customer-first focus to continuously innovate life, and short-term and long-term disability coverage to full-time
our technology, our products and our processes to employees.
not only help our customers grow their businesses,
Recruitment Process.
but also to grow their businesses better. We are a
The process through which we recruit employees has an impact on
company with approximately 340 employees, with
the quality, diversity and timing of filling positions. Open positions
offices located in Pennsylvania, North Carolina,
may be filled internally through our internal posting process or
California and Bermuda. We believe in attracting and externally through a combination of broadly available Internet job
retaining talented people who want to do meaningful boards such as Indeed, LinkedIn® and Glassdoor, as well as college
work and do it well. That’s why we design compelling placement services, trade journals, newspapers and professional
job opportunities that align with our mission, foster recruiting firms.
work-life balance and offer competitive compensation
and benefits that promote the health and financial Employee Retention.
security of our employees and their families. Attracting, developing and retaining quality employees is
imperative to a successful and sustainable business model. Our
“do the right thing” culture has enabled us to average a 95%
retention rate over the past 5 years.
2022 ESSENT GROUP SUSTAINABILITY REPORT 063.0 INVESTING IN OUR EMPLOYEES
EMPOWERING FINANCIAL WELL-BEING.
Share Grant Program We so strongly believe that all employees should make good decisions, do the right thing and act like
owners. That’s why we have made our employees owners through a share grant program. As of December
31, 2021, approximately 90% of the current workforce have been granted equity shares in our Company.
Essent Babies We believe in education and saving for education. We grant each employee’s new baby a $1,500 gift card to
be deposited into a 529 plan of their parents’ choice to help families get started with saving for education.
Adoption Assistance
We support the building of families and offer an adoption assistance reimbursement program.
Program
Employee Assistance We provide an Employee Assistance Program to all employees, featuring unlimited telephone and
Program online confidential support, as well as counseling, referrals and practical help for a variety of work-life
balance issues. Topics covered include substance abuse, marital or family issues, mental illness, stress,
domestic violence, health education and disease prevention. The program also provides for certain
face-to-face counseling sessions per year.
Commuter Benefits The use of mass transit helps to reduce our carbon footprint and we encourage the use of mass transit
when possible. Our headquarters is strategically located within walking distance from Amtrak and local
train lines. We offer WageWorks, a pretax monthly benefit to help defray mass transit and parking costs.
401(k) ESG Options Our 401(k) plan, which is available to all full- and part-time U.S. employees, provides a generous non-
discretionary matching contribution up to 100% of the first 5% of an employee’s eligible compensation.
Employees are eligible to participate as of their date of hire and all contributions immediately vest. Our
401(k) offerings include funds that have an ESG sustainability score, which assists employees in making
personal investment decisions in alignment with their values. Our employees value this benefit. As of
December 31, 2021, our participation rate was approximately 82%.
Town Hall Meetings Our CEO hosts virtual “town hall” style calls and in-person meetings with employees throughout the
year, providing an opportunity for employee questions to be directly answered by senior management.
We believe that this format facilitates strong and productive conversations across our organization.
Employee Recognition Employee recognition happens in many ways. We celebrate birthdays, work anniversaries and other
accomplishments on our company Intranet, as well as through other employee communication channels.
Annual promotions are announced company-wide by our CEO. Our CEO also recognizes individual
employees and teams during our Town Hall meetings. Spot-bonus awards are also available to reward
an employee for a job well done.
PROMOTING MENTAL AND PHYSICAL • Medical (including telehealth & telemental health),
prescriptions, dental and vision
WELL-BEING • Group life insurance
Group Health Insurance And Health Savings • Short-term and long-term disability
Accounts. • Paid time off
Our health and welfare benefits are carefully designed to • Healthcare Flexible Spending Accounts
answer the needs of our employees in the communities where • Health Savings Accounts
they live. Our health plans, which are available to all full-time • Health club discounts
U.S.-based employees and their eligible family members • Weight management and tobacco cessation
including spouses, domestic partners and children as of their • Diabetes management
date of hire include: • Employee Assistance Program
2022 ESSENT GROUP SUSTAINABILITY REPORT 073.0 INVESTING IN OUR EMPLOYEES
Employee Engagement and Development
Periodic Engagement Events. Management Trainee Program.
We believe in fostering a hardworking, but enjoyable work We offer a management training program as an entry level position
environment. Throughout the year, we host holiday parties, picnics, designed to prepare new talent for a successful and challenging
sporting events, lunch & learns, internal contests and more. Food career. Over the course of 24 months, participants are immersed in
truck days, special gourmet lunches, gift cards and customized the business development and operations departments before being
Essent apparel are just a few of the ways we let our employees permanently placed. This rotation exposes trainees to a variety of
know we appreciate them. managers and management styles and provides a unique inside
perspective on many aspects of our business. These new leaders
COMPANY-WIDE TRAINING also provide well-rounded support to our business.
Clear Duties And Feedback. Internships.
We provide compliance and job-related training to all newly hired We have committed to make two of our summer internship positions
employees, as well as annual compliance training to ensure their open to minority candidates through the Fannie Mae future housing
ongoing success. We also provide many opportunities throughout leadership program to assist in ensuring a sustainable diverse
the year to participate in sales, underwriting, risk management employee base.
and other related training, as well as education around how to stay
connected virtually and have held numerous classes around video ADVANCED TRAINING
conferencing best practices.
Training And Continuing Education.
PROFESSIONAL DEVELOPMENT We are a strong believer in education and training as a way to keep
employees motivated and skilled. We have a tuition reimbursement
College Internships. program and offer certifications and professional training
Each year, we offer summer internships for college and university opportunities, including Mortgage Bankers Association (MBA)
students interested in gaining a realistic, professional and meaningful certifications, Nationwide Multistate Licensing System & Registry
educational experience in the insurance industry. Our internship (NMLS) continuing education for underwriters and other professional
programs have been hosted in our Pennsylvania, North Carolina and training in areas including but not limited to cybersecurity, risk,
California offices. accountancy, actuarial sciences, human resources, underwriting,
information technology, appraisals, marketing, project management,
legal and AWS.
Diversity And Inclusion
Our Compensation Committee of the Board of Directors is populations that are not located within commuting distance to an
responsible for Diversity and Inclusion oversight. As of December 31, established office. This is good for the employees, communities and
2021, 33% of our Board was comprised of minorities and women. our Company. We also provide mandatory annual employee training
For our employees, diversity starts at recruiting. Our recruiting covering important topics such as diversity and inclusion. Further
efforts include internal postings to encourage career paths for educational opportunities regarding diversity and inclusion are also
current employees including minorities, women and other protected available for our employees on demand.
classes. With our Diversity and Prevention of Discrimination and We believe a diverse and inclusive workforce provides for a broad
Harassment Policy, we comply with all applicable laws relating to array of viewpoints, talents and skills, and assists in building
fair employment. a sustainable future.
Recruiting efforts also include broad external postings on the
largest career sites including Indeed, LinkedIn® and others to attract
the broadest candidate pool possible. We have identified certain OF OUR WORKFORCE IS COMPRISED OF
positions that can be successfully accomplished on a remote basis ~63% WOMEN AND MINORITIES.
through technology, training and leadership. Developing appropriate [As of December 31, 2021]
remote work capabilities enables us to seek candidates from diverse
2022 ESSENT GROUP SUSTAINABILITY REPORT 084.0 BEING A COMMUNITY PARTNER
Our commitment to ESG starts in our own
communities. We partner with certain
charitable organizations, make donations
and connect our employees with volunteer
opportunities to better their communities.
2022 ESSENT GROUP SUSTAINABILITY REPORT 094.0 BEING A COMMUNITY PARTNER
Employee Matching And Volunteering
Our Board of Directors, management team and employees are
committed to supporting our communities by leveraging the power
of our Company. Our employees volunteer their time and talents to
...all full-time employees
support local charities and community organizations. We maintain
an Employee Match portion of our Corporate Charitable Giving
program, encouraging employee service engagement by providing
a 1:1 match of donations to 501(c)(3) organizations, up to $1,000 are granted a full
per employee per year. In addition, our summer interns organize
a service opportunity that enables our employee base to participate
day of paid time off for
in some of our favorite charities. We understand that providing
volunteer opportunities and introducing our employees to new and
a Day of Service.
worthy causes fosters good citizenship. All matches are made to
501(c)(3) organizations that do not discriminate against
a person or group on the basis of race, religion, color, national
origin, age, sex, gender identity, disability, status as a disabled
veteran, political preference, sexual orientation, pregnancy,
membership or non-membership in any lawful organization or
other basis prohibited by local laws or regulations.
Community Engagement.
In alignment with our core value of citizenship, we encourage our
employees to contribute their time to support various community
and charitable activities. To encourage this important activity,
all full-time employees are granted a full day of paid time off for
a “Day of Service.” These hours can be used to perform volunteer
services to help their communities through a 501(c)(3) organization.
1:1
MATCH OF DONATIONS TO 501(C)(3) ORGANIZATIONS
UP
TO $1K
PER EMPLOYEE PER YEAR
2022 ESSENT GROUP SUSTAINABILITY REPORT 104.0 BEING A COMMUNITY PARTNER
Our Commitment To Giving Back
We are passionate about making a difference in
our community. Essent sponsors national and local OUR COMMITMENT TO HEALTH,
community organizations with a focus on children, CHILDREN & EDUCATION
education, health and housing.
Education.
ALLEVIATING HOUSING INSECURITY Our charitable program places special emphasis on
championing education, in particular, for underserved youth.
In addition to supporting the U.S. housing market through our
We have made a $3 million, 10-year commitment to Cristo
mortgage insurance business, below are some other ways we
Rey Philadelphia High School. Cristo Rey is an inner-city,
support housing through our corporate giving strategy.
independent college preparatory school for students of all
faiths who cannot otherwise afford a private education. Cristo
MBA Opens Doors Foundation Rey Philadelphia is a new model of private high school that
opened in 2012 and has developed a unique partnership
We are an annual contributor to this foundation, which is
with local educators, businesses and universities. The
dedicated to helping families in need meet their mortgage and
school supports boys and girls from some of the poorest
rental obligations. Through its home grant program, Opens
neighborhoods in Philadelphia.
Doors provides mortgage and rental payment assistance
grants to parents and guardians caring for a critically ill or Additionally, we have a $500,000 multi-year commitment to
injured child, allowing them to take unpaid leave from work support a Science, Technology, Engineering and Math (STEM)
and spend precious time together without jeopardizing their program specifically for young women.
cherished homes. In addition to being a corporate sponsor,
an Essent officer also serves on the foundation’s board
Mental Health.
of directors. In 2021, we expanded our corporate giving program with
a significant multi-year grant to Main Line Health Behavioral
Health Services. One in four members of the local community
Covenant House
has grappled with mental health issues. Our donation
We are also an annual contributor to Covenant House. supported the development of a new behavioral health unit
For more than four decades, Covenant House has helped expansion, which opened in early 2022.
transform and save the lives of more than a million homeless,
runaway and trafficked young people by providing crisis
care, shelter and long-term support. We are proud to have an
$1.7M
Essent officer on its board of directors.
Clarifi
In 2021, we committed $250,000 to establish the Clarifi
CONTRIBUTIONS MADE IN 2021
Housing Stability Center and a Housing Stabilization Fund to
aid Philadelphia families in housing crisis. Founded over 50
40
years ago, Clarifi is a non-profit that empowers individuals
to achieve financial resilience and positively impact their
communities. We are proud to have an Essent officer on its WORTHY
board of directors.
CAUSES
SUPPORTED IN 2021
2022 ESSENT GROUP SUSTAINABILITY REPORT 114.0 BEING A COMMUNITY PARTNER
Creating Pathways To Homeownership
We offer private mortgage insurance for single-family We provide access to GSE (Government Sponsored Enterprise)-
mortgage loans in the United States, as well as private approved homebuyer education courses at essent.us/homebuyers
to help homebuyers prepare for the challenges and responsibilities
capital to mitigate mortgage credit risk, allowing
of homeownership. We believe that prospective homebuyers can
lenders to make additional mortgage financing also benefit from homebuyer education programs sponsored by
available to prospective homeowners. community, nonprofit and governmental agencies.
SUPPORT THE FAIR HOUSING ACT AND EQUAL CREDIT
OPENING DOORS WITH MORTGAGE OPPORTUNITY ACT
INSURANCE AND RELATED PROGRAMS We promote the expansion of viable homeownership opportunities
The biggest hurdle for many potential homebuyers is the 20% through the use of fair and reasonable underwriting requirements
down payment required by most lenders. Our primary revenue that support our objective of making homeownership affordable
source is providing mortgage insurance (MI) on mortgage loans and sustainable. We believe in fair treatment of all homebuyers
with down payments that are less than 20%. By providing MI, in accordance with applicable law. We operate in accordance
we create an opportunity to homebuyers that otherwise may not with the provisions of the Fair Housing Act and the Equal Credit
be able to qualify for a loan. We are proud of the role we play Opportunity Act.
in supporting the U.S. housing finance system and providing an (Though these laws are not directly applicable to Essent, The Fair
opportunity for homeowners to begin their economic security and Housing Act makes it unlawful to discriminate in housing-related
realize the long-term benefits of owning a home. activities against any person because of race, color, religion,
national origin, sex, handicap or familial status. The Equal Credit
As An MI Provider, We… Opportunity Act prohibits discrimination with respect to any aspect
SUPPORT FIRST-TIME HOMEBUYER INITIATIVES of a credit transaction on the basis of sex, race, color, religion,
national origin, marital status or age, provided the applicant has
Fannie Mae’s HomeReady® and Freddie Mac’s Home Possible®
the capacity to enter into a binding contract, receipt of public
are federally sponsored affordable loan programs that offer low-
assistance or because the applicant has in good faith exercised any
and moderate-income homebuyers the opportunity to become
right under the Consumer Credit Protection Act.)
first-time homeowners. By being an approved MI provider for
HomeReady and Home Possible mortgages, we are proud to be We fully support the letter and the spirit of both of these
able to help homebuyers build a stronger foundation of economic laws and will not condone discrimination in any mortgage
security by becoming homeowners with as little as 3% down. guaranty insurance transaction. It is our objective to help make
homeownership affordable and attainable. Our commitment to
HELP WEALTH ACCUMULATION THROUGH HOMEOWNERSHIP
homeowners and the housing finance industry is a responsibility
The expanded opportunity we provide to homeowners helps them we take seriously, as we work to encourage fair lending, open new
accumulate wealth that comes with homeownership. markets and expand our insurance services.
PROVIDE EDUCATIONAL SUPPORT TO FIRST-TIME HOMEBUYERS SUPPORT THE CARES ACT AND THE RELIEF PROGRAMS FOR
Owning a home can be financially challenging, but it can also be HOMEOWNERS IMPACTED BY COVID-19
financially rewarding. We believe that our work with lenders and Mortgage servicers working with homeowners experiencing
industry associations will help educate the public on common financial hardship due to the COVID-19 emergency may implement
misconceptions about down payment requirements and create all GSE late fee relief, forbearance and repayment plans and
more inclusive opportunities for homebuyers. modification programs without our prior approval. We believe
We support the U.S. Department of Housing and Urban providing borrowers time to recover from the adverse impact of
Development’s (HUD) efforts to identify approved housing the COVID-19 event may allow some families to be able to remain
counseling agencies by state on their website. These programs in their homes and avoid foreclosure.
offer advice on understanding the homebuying process, default
prevention and credit management.
2022 ESSENT GROUP SUSTAINABILITY REPORT 125.0 OPERATING WITH INTEGRITY
Our corporate governance policies set clear
expectations and responsibilities for our
leaders, employees and business partners
to ensure we conduct our operations in a
manner consistent with the high standards
of business ethics.
2022 ESSENT GROUP SUSTAINABILITY REPORT 135.0 OPERATING WITH INTEGRITY
Leading with Integrity
Our Board of Directors is collectively responsible
OF OUR BOARD IS COMPRISED OF
for the leadership, management and long-term
success of the company. Meetings are held regularly
33% MINORITIES AND WOMEN.
[As of December 31, 2021]
throughout the year to review our operations and
discuss our business plans and strategies.
There Are Currently Five Board Committees: We are committed to providing a healthy
• Audit Committee and safe working environment in line with
• Compensation Committee internationally declared human rights.
• Nominating, Governance & Corporate Responsibility Committee
Our Policies.
• Risk Committee
• Technology, Innovation & Operations Committee To demonstrate our commitment to integrity and corporate
responsibility, we have formalized and adopted a number
2021 Corporate Governance Highlights: of internal policies, a representative sample of which is
• Board oversight of ESG matters provided below:
• Lead Independent Director • Anti-Corruption Policy
• 2 of our 9 directors or 22% are women (as of 12/31/21) • Anti-Money Laundering Awareness Policy
• 3 of our 9 directors or 33% are minorities and women (as of • Anti-Trust Policy
12/31/21) • Business Continuity and Disaster Recovery Plan
• Formal commitment to diverse representation on the Board • Complaint Management Policy
to incorporate different points of view, including education, • Corporate Giving Policy
skill, professional background, personal accomplishments,
• Diversity and Prevention of Discrimination
geography, race, gender, age, ethnic background, sexual
& Harassment Policy
orientation, national origin, and experience with mortgage
• Fitness for Duty Policy
insurance, reinsurance or other businesses and organizations
that the Board deems relevant and useful • Fraud Policy & Procedures
• Majority voting standards • Gift & Entertainment Policy
• Defined retirement age • Government Relations & Political Activities Policy
• Stock ownership guidelines for Executive Directors and • Human Rights & Labor Policy
Non-Management Directors • Identity Theft Prevention Policy
• Information Security Program Policy
• Media and External Communications Policy
... commitment to diverse • Privacy Policy
• Reasonable Accommodations Policy
representation on the • Statement of Freedom of Association, Right to
Board to incorporate
Collective Bargaining
• Substance Abuse Policy
different points of view... • Third-Party Code of Conduct
• Vulnerability Management Policy
• Whistleblower Policy
2022 ESSENT GROUP SUSTAINABILITY REPORT 145.0 OPERATING WITH INTEGRITY
Code Of Business Conduct And Ethics. Additionally, we train selected groups of employees on the
following topics:
Our Code of Business Conduct and Ethics details the ethical
standards and professional behavior expected of directors, • Accurate Financial Statements/SOX
officers and employees. The Code covers issues such as conflicts • Appropriate Electronic Communication
of interest, insider trading, fair dealing, confidentiality, bribery, • Equal Credit Opportunity
discrimination and harassment, and accuracy of financial records.
• Fraud
The Code requires the reporting of illegal or unethical behavior so
• Regulation Fair Disclosure
that the company can address issues as they arise.
• State Specific Harassment Training
Ethics & Compliance Training.
Independent Reporting Hotline.
Our employees receive ongoing training on our ethics and
compliance practices and policies on at least an annual basis. Should any ethical violations or reporting concerns arise, we have
Annually, 100% of our full- and part-time employees, Board an independent third-party hotline available for 24/7 anonymous
members and contractors complete mandatory compliance training reporting. We do not tolerate acts of retaliation against any director,
and read and acknowledge our Code of Business Conduct and Ethics. officer or employee who makes a good faith report of known or
suspected acts of misconduct or other violations. We have adopted a
Annual required compliance courses include:
Whistleblower Policy in support of these protections.
• Accurate Books and Records
• Americans With Disabilities Act
Third-Party Code Of Conduct.
• Anti-corruption, Bribery, Kickbacks and Other Improper Payments We expect all parties providing goods and services to us to conduct
their business activities with the same high standards of business
• Antitrust
ethics, social responsibility and environmental stewardship that
• Confidential and Proprietary Information
we have committed to, and in accordance with all applicable laws
• Conflicts of Interest and regulations. We have adopted a Third-Party Code of Conduct
• Diversity, Inclusion and Discrimination that outlines our expectations for external partners to establish
• Employment Discrimination and maintain a business relationship with Essent, supporting a
• Essent Code of Business Conduct and Ethics professional environment where all are treated with respect and
dignity and where their health and safety are protected.
• Fair Competition
• Fair Purchasing Practices Know Your Customer (KYC).
• Identifying and Protecting Against Cyber Attacks Before we partner with a potential lender, we perform our
• Identifying and Protecting Against Workplace Hazards required due diligence. We apply our comprehensive risk
• Information Security management framework to identify any potential risks to our
• Insider Threat mortgage insurance portfolio, as well as any investment, liquidity
or regulatory compliance risk, among others.
• Insider Trading
• Intellectual Property of Others Health & Safety And Human Rights.
• Privacy We are committed to providing a healthy and safe working
• Protecting Company Assets environment in line with internationally declared human rights.
• Respectful Communication (Social Media) Similarly, third parties are expected to provide a healthy and
safe working environment in line with internationally declared
• Responding to Breaches
human rights.
• Speaking Up and Reporting Concerns
• Staying Secure in Virtual and Mobile Settings Freedom Of Association.
• Unfair Deceptive and Abusive Practices Our employees have the right to lawfully form and join
• Upgrading Your P@$$word organizations of their own choosing and peacefully associate. We
• Workplace Harassment expect third parties to allow their personnel to lawfully form and
join organizations and peacefully associate. As of December 31,
2021, none of our employees were represented by a labor union.
2022 ESSENT GROUP SUSTAINABILITY REPORT 155.0 OPERATING WITH INTEGRITY
ESG Risk Management And Responsible Investment
RISK GOVERNANCE RESPONSIBLE INVESTMENT
We are committed to a risk management approach that ensures Our approach to investing is driven by our commitment to our
the appropriate level of risk consideration is undertaken in policyholders and our shareholders. The primary objectives
creating, preserving and realizing value for Essent. The Risk with respect to our investment portfolio are to preserve capital,
Committee of the Board of Directors oversees our management of generate investment income and maintain sufficient liquidity to
key risks and exposures that could materially impact the Company cover operating expenses and pay future insurance claims. We
and is supported by a Management Risk Committee, chaired by leverage a buy and maintain investment philosophy, and our
our Chief Risk Officer and comprised of senior members of our portfolio is comprised predominantly of investment grade fixed
executive management team. We believe that our risk management income holdings. We engage external asset managers to assist in
framework encompasses all of the major risks we face, including the management of the majority of our investment portfolio.
our mortgage insurance portfolio, investment risk, liquidity risk A key consideration to achieving these objectives is to invest
and regulatory compliance risk among others. responsibly. We acknowledge that environmental, social and
As part of our Enterprise Risk Management (ERM) program, we governance (ESG) factors can be financially material, and related
follow guidance promulgated in the Committee of Sponsoring risks and opportunities can have an impact on the long-term
Organizations of the Treadway Commission (COSO) ERM fundamentals and returns expectations of our investments.
framework. COSO has partnered with the World Business Council Consistent with our investment objectives, our approach to ESG is
for Sustainable Development (WBCSD) to provide additional focused on risk management and downside mitigation in order to
guidance in applying the COSO ERM framework to environmental, enhance the risk adjusted return of the portfolio. As such, we have
social and governance-related risks. We follow such guidance with instructed our managers to leverage an integrated ESG approach
respect to ESG risks in the conduct of the ongoing execution of our when appropriate. Our managers have dedicated teams and
ERM program. A summary of the significant ESG risks is presented resources focused on ESG, and utilize a combination of external
to the management-level operating risk committee and also to the data providers as well as proprietary research. ESG has been
Nominating, Governance and Corporate Responsibility Committee. incorporated into credit research both at the sector and issuer
levels, and has been fully integrated into the portfolio management
process when appropriate. Further, the cross-functional ESG
committee at Essent includes dedicated representation from the
investment team to ensure our investment framework is aligned
with the broader organization’s goals.
We recognize that ESG and responsible investing is still in its
early stages, with a dynamic and quickly changing landscape.
We continue to monitor developments in the space, and continue
to think through opportunities to enhance the sustainability of our
portfolio in the context of our investment objectives.
2022 ESSENT GROUP SUSTAINABILITY REPORT 165.0 OPERATING WITH INTEGRITY
Business Continuity, Cybersecurity
And Data Privacy
BUSINESS CONTINUITY AND DISASTER audits in accordance with our Vulnerability Management Policy
to ensure safeguards are implemented, protocols are in place to
RECOVERY manage risk and our program is effectively meeting our program
Our comprehensive Business Continuity Planning and Disaster goals as designed.
Recovery (BCP/DR) plan includes measures to ensure effective
In 2021, our third-party risk management team worked with 296
recovery of our Business IT infrastructure and systems in the
institutional clients to conduct IT security audits in response to
event of a human-induced or natural disaster. The BCP/DR plan
a total of 545 inquiries. This team also conducted in-depth security
also includes an extensive pandemic plan, which was created
and compliance reviews of 58 vendors that provide services to
several years ago and implemented during the 2020 COVID-19
the company.
pandemic. The Technology, Innovation and Operations Committee
of our board is responsible for the overall role of technology in Our commitment to our information security program extends
executing the business strategy of the company, including our across the organization. We have an internal information security
business continuity planning and disaster recovery capabilities Committee comprised of cross-departmental company executives
and contingency plans as part of our broader enterprise risk and IT leaders to ensure we maintain strong governance
management framework and risk assessment guidelines. mechanisms and to ensure compliance with our security policies
and procedures. In 2020, we chartered a Privacy Subcommittee,
which is focused on privacy rights and data use management, and
CYBERSECURITY AND DATA PRIVACY which reports to the Information Security Committee. Additionally,
Protecting the data of our customers, as well as our own company our Board of Directors, led by its Technology, Innovation and
and employees is paramount. Our comprehensive Information Operations Committee, actively oversees our information security
Security Program Policy governs cybersecurity and the use of all program, with our management team providing that committee
company and customer data we process and store. Our approach with regular updates and reporting on our IT strategy, including
is considered a defense-in-depth strategy with multiple tiers of information security strategies and initiatives, event preparedness
security controls and monitoring. We have developed our security and incremental improvement efforts.
program using the National Institute of Standards and Technology
We use a high degree of care to protect the availability, integrity
Cybersecurity Framework (NIST) as our benchmark to manage
and private information in our possession and are committed to
cybersecurity-related risks.
complying with all applicable privacy and security laws. We do not
We regularly conduct awareness trainings with our employees, knowingly collect personal information for anyone under the age of
including the use of test emails to help them identify and report thirteen. For more detailed information about how we collect, use,
any fraudulent communications or “phishing” attempts to our IT share and protect personal information, visit the Privacy section of
Security team. We also conduct regular system assessments and our corporate website.
545
IN-DEPTH SECURITY AND COMPLIANCE SECURITY AUDITS FOR
SECURITY INQUIRIES
RESPONDED TO
REVIEWS
OF 58
VENDORS
296
INSTITUTIONAL CLIENTS
2022 ESSENT GROUP SUSTAINABILITY REPORT 175.0 OPERATING WITH INTEGRITY
Protecting The Environment
35,000+ TREES OUR CORPORATE HEADQUARTERS IS
ENERGY STAR®
PLANTED
THROUGH ONE TREE PLANTED CERTIFIED
We care deeply about protecting the environment, and ENERGY EFFICIENCY
our commitment to being environmental stewards is The Nominating, Governance and Corporate Responsibility
woven into our business practices as an extension of Committee oversees our environmental and sustainability-
our core value of integrity. related efforts. We seek to operate our corporate facilities in
an environmentally sustainable, safe and healthy manner. We
We insist on environmentally responsible behaviors
strive to be energy efficient across our operations, utilizing
by our Company, our employees and our business energy management systems intended to reduce energy use and
partners in the communities where we operate, and greenhouse gas (GHG) emissions, improve water efficiency,
we comply with all applicable environmental laws reduce waste to landfills and increase employee awareness.
and regulations. • Several of our corporate facilities are outfitted with LED lights,
occupancy control sensors and reflective energy saving film
ENVIRONMENTAL STEWARDSHIP on the windows, among other energy conservation measures
COMMITTEE designed to reduce energy consumption.
• Green and eco-friendly landscaping, cleaning and janitorial
Our environmental stewardship opportunities include reduction
supplies are sourced and used whenever possible to improve the
in travel by using video conferencing and virtual meetings,
health and well-being of our employees and partners and further
using sustainable pantry products and supplies as appropriate,
lower our environmental impact.
improving recycling efforts, installing water bottle refilling
stations, using motion sensor light switches, faucets, soap • Our corporate headquarters in Radnor, Pennsylvania is Energy
dispensers and toilets. Star® certified as an environmentally-conscious corporate
headquarters.
ONE TREE PLANTED Through our environmental initiatives, we are committed to:
In 2021, our summer interns championed One Tree Planted as their • Energy productivity and efficiency
philanthropic focus. Their campaign raised important awareness • The health, safety and wellness of our employees
around environmental needs and raised enough funds to plant • Recycling programs in all corporate locations
more than 35,000 trees. Trees from this campaign will be planted • Employee awareness of environmental initiatives
throughout the Chesapeake Bay watershed. The trees will be
• Encouraging our employees’ use of mass transit to lower our
planted along waterways to act as a buffer to pollution and provide
carbon footprint
a host of other stream benefits, including stabilizing banks, cooling
water temperatures, flood mitigation, and improving habitat
quality. Forested buffers play a critical role in supporting soil
health alongside streams and adjacent lands. As a result, drinking
water sources are cleansed, habitat for native brook trout and
macro invertebrates is improved and farm productivity and herd
health is increased.
2022 ESSENT GROUP SUSTAINABILITY REPORT 186.0 ATTRIBUTES AND DISCLAIMERS
Trademark Attributions
Indeed® is a registered trademark of Indeed, Inc. Home Possible® is a registered trademark of Freddie Mac.
LinkedIn® is a registered trademark of LinkedIn Corporation. Energy Star® is a registered trademark of the U.S. Environmental
Protection Agency.
Glassdoor® is a registered trademark of Glassdoor, Inc.
HomeReady® is a registered trademark of Fannie Mae.
Legal Disclaimer
The Essent Group 2022 Sustainability Report is for informational undue reliance should not be placed on such information.
purposes only. Forward-looking statements may be identified by the use of
terminology including, but not limited to, “may,” “will,” “should,”
This Report covers activities as of December 31, 2021, unless
“expect,” “anticipate,” “target,” “project,” “estimate,” “intend,”
otherwise indicated.
“continue,” or “believe,” or the negatives thereof or other variations
This Report was prepared for the sole purpose of summarizing thereon or comparable terminology.
Essent’s ESG processes, and does not constitute an offer to sell, or
Essent Group makes no representation or warranty, express
the solicitation of an offer to buy, any security, product, or service.
or implied, with respect to the accuracy, reasonableness, or
The information contained in this Report may not necessarily be completeness of any of the information contained herein, including
complete and may change at any time without notice. Essent Group without limitation, information obtained from third parties.
does not have any responsibility to update this Report to account Essent does not accept any responsibility for the content of such
for any such changes. Certain information contained herein may be information and does not guarantee the accuracy, adequacy, or
“forward-looking” in nature. Due to various risks and uncertainties, completeness of such information.
actual events may differ materially from those reflected or
contemplated in such forward-looking information. As such,
2022 ESSENT GROUP SUSTAINABILITY REPORT 19NYSE: ESNT | essentgroup.com EG-6008.320 (05/22)
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