Essent Group Ltd, the Bermuda-based mortgage re/insurer, has reported net income of $205.4 million for the third quarter.

That compares with net income of $124.5 million for the third quarter a year ago.

Mark A. Casale, chairman and chief executive officer, said: “We are pleased with our strong financial results which continue to reflect a positive operating environment and ongoing strength in credit performance.

“Our results for the quarter demonstrate the benefits of our economic engine in generating high quality earnings, strong returns and excess capital.

“In connection with our performance, we are pleased to announce that our board has approved an increase in our quarterly dividend to $0.19 per share.”

Insurance in force as of September 30 was $208.2 billion, compared to $203.6 billion as of June 30 and $190.8 billion as of September 30, 2020.

New insurance written for the third quarter was $23.6 billion, compared to $25 billion in the second quarter of 2021 and $36.7 billion in the third quarter of 2020.

Net premiums earned for the third quarter were $218.7 million, compared to $217.4 million in the second quarter of 2021 and $222.3 million in the third quarter of 2020.

Income from other invested assets for the third quarter included $39.5 million, or $0.28 per diluted share on an after-tax basis, pertaining to net unrealised gains associated with strategic investments in limited partnerships.

Of this amount, $21.1 million represents net unrealised gains that were accumulated in other comprehensive income at June 30 and prior periods.

The percentage of loans in default as of September 30 was 2.47 per cent, compared to 2.96 per cent as of June 30 and 4.54 per cent as of September 30, 2020.

The combined ratio for the third quarter was 15.9 per cent, compared to 23.3 per cent in the second quarter of 2021 and 41.6 per cent in the third quarter of 2020.

The consolidated balance of cash and investments at September 30 was $5.1 billion, which includes net cash and investments available for sale at Essent Group Ltd and Essent US Holdings, Inc of $513 million.

The combined risk-to-capital ratio of the US mortgage insurance business, which includes statutory capital for both Essent Guaranty Inc and Essent Guaranty of PA, Inc, was 10.5:1 as of September 30.

On September 24, AM Best affirmed its “A (Excellent)” financial strength rating of Essent Guaranty, Inc and a long-term issuer credit rating of "a" of the operating subsidiaries of Essent Group Ltd. Essent Guaranty Inc also has financial strength ratings of “A3” by Moody’s and “BBB+” by S&P.