Mortgage insurer Essent Group reported higher net income for the first quarter of 2016 as premium growth outpaced rising expenses.
Bermuda-based Essent reported net income of $48 million, an increase of 38% year-over-year. Diluted earnings per share for the quarter were 52 cents.
The company profited mainly from strong growth in its net premiums earned. This figure rose 26% to $94.4 million. Essent also recorded a 44% jump in net investment income, to $6.2 million.
New insurance written for the first quarter rose to $5.5 billion from $5.3 billion in the first quarter of 2015.
The income gains were counterweighed in part by higher expenses. Essent reported total losses and expenses of $35.1 million, 19% higher than a year ago. The provision for losses increased to $3.7 million from $2 million.
