Essent Group, a mortgage insurer based in Bermuda, closed out its first full year as a public company in the black, as increased premiums continued to fuel profitability.
Essent ended the fourth quarter of 2014 with $28.9 million in profits, rising by 51.8% year-over-year from the fourth quarter of 2013’s net income of $19 million, according to the quarterly results released Friday. Diluted earnings per share for the quarter were 33 cents.
The company benefited from strong growth in its net premiums earned, which jumped 68.2% to $67.8 billion during 2014’s fourth quarter when compared with the same period the year prior. New insurance written for the fourth quarter was $6.5 billion, compared to $8.8 billion in the third quarter and $4.5 billion in the fourth quarter of 2013.
The company’s expenses continued to increase a bit, with the biggest change once again occurring in the provision for losses. This figure more than quadrupled year-over-year, expanding to $3.05 million from $692,000. Operational expenses also grew in 2014 when compared with the preceding year, this time by roughly 15% to $28.7 million.