Essent Group Ltd, the Bermuda-based holding company, has reported net income for the second quarter of $159.8 million or $1.42 per diluted share, compared to $15.4 million or 15 cents per diluted share for the same quarter a year ago.

Essent, through its wholly-owned subsidiary, Essent Guaranty, Inc, offers private mortgage insurance for single-family mortgage loans in the United States.

It said it provides private capital to mitigate mortgage credit risk, allowing lenders to make additional mortgage financing available to prospective homeowners.

Essent also offers mortgage-related insurance, reinsurance and advisory services through its Bermuda-based subsidiary, Essent Reinsurance Ltd.

Mark Casale, chairman and chief executive officer of Essent Group, said: "We are pleased with our financial performance for the second quarter as we produced strong earnings and generated excess capital.

“Our results reflect a favourable operating environment as credit continues to normalise and housing demand remains elevated. Our buy, manage and distribute model is operating on all cylinders and confidence in our economic engine remains high."

The company said insurance in force as of June 30 was $203.6 billion, compared to $197.1 billion as of March 31 and $174.6 billion as of June 30, 2020.

New insurance written for the second quarter was $25 billion, compared to $19.3 billion in the first quarter of 2021 and $28.2 billion in the second quarter of 2020.

Net premiums earned for the second quarter were $217.4 million, compared to $219.1 million in the first quarter of 2021 and $211.5 million in the second quarter of 2020.

The expense ratio for the second quarter was 18.9 per cent, compared to 19.3 per cent in the first quarter of 2021 and 18.4 per cent in the second quarter of 2020.

The percentage of loans in default as of June 30 was 2.96 per cent, compared to 3.7 per cent as of March 31, and 5.19 per cent as of June 30, 2020.

The combined ratio for the second quarter was 23.3 per cent, compared to 34 per cent in the first quarter of 2021 and 101.5 per cent in the second quarter of 2020.

The consolidated balance of cash and investments at June 30 was $5 billion, including cash and investment balances at Essent Group Ltd of $509.8 million.

On June 23, the company said Essent Guaranty, Inc obtained $557.9 million of fully collateralised excess of loss reinsurance coverage on mortgage insurance policies written by Essent in August 2020 through March 2021 from Radnor Re 2021-1 Ltd, a newly formed Bermuda special purpose insurer.

It added that Radnor Re 2021-1 Ltd is not a subsidiary or an affiliate of Essent Group Ltd.

Essent’s board of directors has declared a quarterly cash dividend of 18 cents per common share, payable on September 10 to shareholders of record on September 1.