Essent Group Ltd has reported net income of $136.4 million, or $1.39 per diluted share, for the second quarter.

That is up on the $111.8 million for the same period last year.

Mark Casale, chairman and chief executive officer, said: “We are pleased with our strong financial results for the second quarter and our continued progress in transitioning our franchise to a buy, manage and distribute model through utilisation of EssentEDGE and reinsurance.

“Our performance, along with the use of reinsurance, continues to generate excess capital. As a result, we are pleased to announce our inaugural dividend and believe that it is a tangible demonstration of the benefits in a buy, manage and distribute operating model.”

Net premiums earned for the second quarter were $188.5 million, compared to $177.8 million in the first quarter of the year, and $157 million in the second quarter of 2018.

The expense ratio for the second quarter was 22 per cent, compared to 23.1 per cent in the first quarter, and 23.2 per cent in the second quarter of last year.

The combined ratio for the second quarter was 24.7 per cent, compared to 27.1 per cent in the first quarter, and 24.4 per cent in the second quarter of 2018.

Essent’s first dividend payment will be 15 cents per common share, to be paid on September 16 to share holders of record on September 4.

The company’s shares were trading at $45.75 in New York on Friday.