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8 August 2022

Essent posts 45% rise in Q2 profit

Essent Group, the mortgage re/insurer based in Bermuda, has reported net income for the second quarter of $232 million, a 45% year-on-year increase from $160 million for the same quarter a year ago.

New insurance written for the quarter was just over $20 billion, down from $25 billion in Q2 2021.

The combined ratio was negative (16.2%), compared with negative (30.7%) in the first quarter of 2022 and 23.3% in Q2 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 second quarter, Essent entered into a forward excess of loss transaction with a panel of reinsurers that covers 20% of all eligible policies written by Essent Guaranty Inc for 1 October 2021 through 31 December 2022.

“We are pleased with our strong financial results for the second quarter, which reflect the continued favourable credit performance of our portfolio,” said Mark Casale, Essent Group chairman and chief executive officer.

“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,” he added.

New insurance written for the quarter was just over $20 billion, down from $25 billion in Q2 2021.

The combined ratio was negative (16.2%), compared with negative (30.7%) in the first quarter of 2022 and 23.3% in Q2 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 second quarter, Essent entered into a forward excess of loss transaction with a panel of reinsurers that covers 20% of all eligible policies written by Essent Guaranty Inc for 1 October 2021 through 31 December 2022.

“We are pleased with our strong financial results for the second quarter, which reflect the continued favourable credit performance of our portfolio,” said Mark Casale, Essent Group chairman and chief executive officer.

“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,” he added.




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23 September 2022   Essent’s risk-adjusted capitalisation is at the strongest level in base and stress scenarios.
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3 February 2023   Purchases Agents National Title and Boston National Title for $100m.
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16 March 2023   The exec has worked at the mortgage re/insurer since 2009.

More on this story

article
23 September 2022   Essent’s risk-adjusted capitalisation is at the strongest level in base and stress scenarios.
News
3 February 2023   Purchases Agents National Title and Boston National Title for $100m.
News
16 March 2023   The exec has worked at the mortgage re/insurer since 2009.