Essent Group Ltd, the mortgage re/insurer based in Bermuda, has reported net income dropped 37 per cent to $170.8 million for the first quarter of the year.

That compares to net income of $274.2 million in the prior year quarter.

New insurance written was $12.9 billion, compared to $13 billion in the fourth quarter of 2022 and $12.8 billion in the first quarter of 2022.

Insurance in force as of March 31 was $231.5 billion, compared to $227.1 billion as of December 31, 2022 and $206.8 billion at the end of the first quarter in 2022.

The combined ratio for the quarter was 22.7 per cent, compared to 24.6 per cent in the fourth quarter of 2022 and minus 30.7 per cent in the first quarter a year ago.

“We are pleased with our first quarter 2023 financial results, which benefited from rising interest rates and favourable credit performance,” said Mark A Casale, chairman and chief executive officer.

“Our results continue to demonstrate the earnings power of our business and provide us with attractive levels of operating cash flows.

“We continue to believe deploying our capital in a balanced manner is in the best long-term interest of our shareholders.”

Essent said its board has declared a quarterly cash dividend of $0.25 per common share payable on June 12 to shareholders of record on June 1.