Essent pleased with Q2 financials
Essent Group Ltd, the mortgage re/insurer based in Bermuda, has reported net income for the second quarter of $231.8 million.
That compares with net income of $159.8 million for the same quarter a year ago.
Mark A Casale, chairman and chief executive officer, said: “We are pleased with our strong financial results for the second quarter, which reflect the continued favourable credit performance of our portfolio.
“We believe that the fundamentals of our business remain solid and despite near-term headwinds, our long-term structural outlook for the housing market remains positive.”
New insurance written for the quarter was $20.1 billion, compared with $12.8 billion in the first quarter of 2022 and $25 billion in the second quarter of 2021.
Insurance in force as of June 30 was $215.9 billion, compared with $206.8 billion as of March 31 and $203.6 billion as of June 30, 2021.
The combined ratio for the second quarter was negative (16.2 per cent), compared with negative (30.7 per cent) in the first quarter of 2022 and 23.3 per cent in the second quarter of 2021.
The provision in the second quarter included a $62.9 million benefit associated with a change in the claim rate assumption for Covid-19 defaults recorded in the second and third quarters of 2020.
During the quarter, Essent entered into a forward excess of loss transaction with a panel of reinsurers. The agreement covers 20 per cent of all eligible policies written by Essent Guaranty Inc for the period October 1, 2021 through December 31, 2022.
Essent’s board of directors has declared a quarterly cash dividend of $0.22 per common share, payable on September 12 to shareholders of record on September 1.