Essent's net income increases 39% on new policy growth

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Essent Group Ltd., the Hamilton, Bermuda-based parent of Essent Guaranty, reported first-quarter net income of $66.6 million.

This was an increase of nearly 39% over the $48 million net income for the first quarter of 2016. Total revenue increased to $127.6 million from $102.5 million one year ago.

New insurance written was $8 billion, up 48% from $5.4 billion in the first quarter of 2016. Insurance-in-force was $88 billion as of March 31, a 30% increase from $67.7 billion one year prior.

Separately, NMI Holdings Inc. had net income of $5.5 million, compared with a net loss of $3.9 million in the first quarter of 2016.

Results for the quarter include fees and expenses of approximately $1.6 million related to repricing and extension of its term loan and the issuance of insurance-linked notes.

The notes "enhances National MI's financial strength by providing a layer of protection against adverse losses, while at the same time providing expected additional writing capacity under PMIERs of approximately $200 million," said Bradley Shuster, the chairman and CEO of the Emeryville, Calif.-based company, in a press release. PMIERs are the capital requirements established by Fannie Mae and Freddie Mac for mortgage insurers that guaranty loans sold to them.

NIW fell 16% year over year to $3.6 billion from $4.25 billion. But its insurance-in-force nearly doubled to $34.8 billion from $18.6 billion on March 31, 2016.

Earlier this week, Genworth Financial said its U.S. mortgage insurance business had operating earnings of $73 million, compared with $61 million in the first quarter of 2016.

There was a slight increase in NIW, to $7.6 billion from $7.4 billion one year prior.

Insurance-in-force grew 12% to $139.3 billion from $124.1 billion at the end of 2016's first quarter.

Genworth Financial, which also has stakes in mortgage insurers in Canada and Australia, as well as life and long-term care lines, had net income of $155 million, compared with $53 million one year prior.

The parent company has an agreement to be acquired by China Oceanwide Holdings Group. That deal is on hold as the parties first withdrew and then refiled a joint voluntary notice to the Committee on Foreign Investment in the U.S. to allow for further time for review and discussion.

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