First-quarter earnings at Essent Group Ltd. declined slightly year-over-year to US$175.4 million, or US$1.69 per diluted share, as new insurance written rose and investment income increased by 12% compared to the same period in 2024.
The Bermuda-based holding company, which provides private mortgage insurance, reinsurance, and title-related services through its US subsidiaries, reported net income of US$181.7 million, or US$1.70 per diluted share, in the first quarter of last year.
While earnings saw a modest decline, the company reported US$9.9 billion in new insurance written in the first quarter of 2025, compared to US$8.3 billion in the same period a year earlier. This figure was down from US$12.2 billion in the fourth quarter of 2024.
As of March 31, 2025, insurance in force totaled US$244.7 billion, slightly up from US$243.6 billion at year-end 2024 and US$238.5 billion at the end of the first quarter in 2024.
Net investment income for the quarter reached US$58.2 million, an increase from US$52 million in the prior-year period.
To manage capital allocation, Essent repurchased 3.9 million common shares through April 30, totaling approximately US$218 million. These transactions fall under a US$500 million repurchase program authorized by the board in February 2025. As of the end of April, US$429 million remained available under the plan.
The company’s board of directors declared a quarterly dividend of US$0.31 per common share, scheduled for payment on June 10, 2025, to shareholders of record as of May 30.
Essent also expanded its risk management structure during the quarter by entering two forward quota share agreements with highly rated third-party reinsurers. These arrangements cede 25% of the risk on eligible mortgage insurance policies written by Essent Guaranty, Inc. in 2025 and 2026.
In April, two excess-of-loss reinsurance agreements were also finalized, effective July 1 of each year, covering 20% of eligible policies for the same two-year period.
Chairman and CEO Mark A. Casale attributed the quarterly results to credit trends, policy persistency, and investment performance.
“We remain confident in our ability to continue to generate high-quality earnings and grow book value per share,” said Casale.
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