Essent Group Ltd, the Bermudian-based mortgage re/insurer, has reported net income of $681.8 million in fiscal year 2021.

That compares with $413 million in 2020.

The company reported net income for the quarter ended December 31, 2021 of $181 million, compared with $123.6 for the prior year fourth quarter.

Essent said its board of directors has declared a quarterly cash dividend of $0.20 per common share, payable on March 21 to shareholders of record on March 10.

Mark A. Casale, chairman and chief executive officer of Essent, said the results reflect continued focus on optimising unit economics.

He said: “Our strong operating performance also generated excess capital, which we continued to deploy in a balanced manner between reinvestment in our franchise and distribution to shareholders.”

Fourth-quarter and full-year 2021 financial highlights include:

• Insurance in force as of December 31, 2021 was $207.2 billion, compared with $208.2 billion as of September 30, 2021 and $198.9 billion as of December 31, 2020.

• New insurance written for the fourth quarter was $16.4 billion, compared with $23.6 billion in the third quarter of 2021 and $29.6 billion in the fourth quarter of 2020.

• Net premiums earned for the fourth quarter were $217.3 million, compared with $218.7 million in the third quarter of 2021 and $222.3 million in the fourth quarter of 2020.

• Income from other invested assets for the fourth quarter included $12 million, or $0.09 per diluted share on an after-tax basis, pertaining to net unrealised gains associated with strategic investments in limited partnerships.

• The expense ratio for the fourth quarter was 19 per cent, compared with 19.3 per cent in the third quarter of 2021 and 16.6 per cent in the fourth quarter of 2020.

• The provision for losses and LAE for the fourth quarter was a benefit of $3.4 million, compared to a benefit of $7.5 million in the third quarter of 2021 and a provision of $62.1 million in the fourth quarter of 2020.

• The percentage of loans in default as of December 31, 2021 was 2.16 per cent, compared with 2.47 per cent as of September 30, 2021 and 3.93 per cent as of December 31, 2020.

•The combined ratio for the fourth quarter was 17.4 per cent, compared with 15.9 per cent in the third quarter of 2021 and 44.5 per cent in the fourth quarter of 2020.

• The consolidated balance of cash and investments at December 31, 2021 was $5.2 billion, which includes holding company net cash and investments available for sale of $618.3 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 10.4:1 as of December 31, 2021.

• On November 10, 2021, Essent Guaranty Inc obtained $439.4 million of fully collateralised excess of loss reinsurance coverage on mortgage insurance policies written by Essent in April 1, 2021 through September 30, 2021 from Radnor Re 2021-2 Ltd, a newly formed Bermuda special-purpose insurer.

Radnor Re 2021-2 Ltd is not a subsidiary or an affiliate of Essent Group Ltd.

• On December 10, 2021, Essent Group Ltd entered into an amended and restated credit facility, increasing to $825 million the committed capacity and extending the contractual maturity to December 10, 2026.

Essent Group Ltd is a Bermudian-based holding company which, through its wholly-owned subsidiary, Essent Guaranty Inc, offers private mortgage insurance for single-family mortgage loans in the United States.

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