Mortgage insurer Essent Group (ESNT) filed an initial public offering this week to raise $287.5 million, Reuters reports.

Reuters says the IPO is part of an expansion plan to help the insurer benefit from the recovering U.S. housing market.

Per Reuters:

Bermuda-based Essent, which has about 800 customers, reported new insurance written of $10.2 billion for the six months ended June 30.

Mortgage insurers cover losses when homeowners default and foreclosures fail to recoup costs. Typically, coverage is required when homeowners make a downpayment of less than 20 percent on a property.