Essent Group Ltd, the mortgage re/insurer based in Bermuda, has reported net income for the first quarter of $274.2 million compared to $135.6 million for the prior year quarter.

The company’s board of directors declared a quarterly cash dividend of $0.21 per common share payable on June 10 to shareholders of record on June 1.

“Our strong results for the quarter reflect the continued favourable credit performance of our portfolio,” said Mark A Casale, chairman and chief executive officer.

“Our outlook on housing remains positive, and we believe that the fundamentals of our business remain solid.

“More importantly, with the strength of our balance sheet and buy, manage, and distribute operating model, we are built to manage through economic cycles.”

Insurance in force as of March 31 was $206.8 billion, compared to $207.2 billion as of December 31 and $197.1 billion as of last March 31.

New insurance written was $12.8 billion, compared to $16.4 billion in the fourth quarter of 2021 and $19.3 billion in the first quarter last year.

Net premiums earned were $215.3 million, compared to $217.3 million in the fourth quarter of 2021 and $219.1 million in the prior year first quarter.

Income from other invested assets was $24.7 million, compared to $15 million in the fourth quarter of 2021.

The percentage of loans in default as of March 31 was 1.93 per cent, compared to 2.16 per cent as of December 31, and 3.7 per cent at the end of the first quarter last year.

The combined ratio was negative 30.7 per cent, compared to 17.4 per cent in the fourth quarter of 2021 and 34 per cent in the first quarter a year ago.

The consolidated balance of cash and investments at March 31 was $5.1 billion, which includes holding company net cash and investments available for sale of $578.6 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 9.9:1 as of March 31.