In a recent article, we discussed NMI Holdings (NMIH), the smallest and fastest-growing player in the PMI (private mortgage insurance) sector. However, investors interested in this market should not overlook Essent Group Ltd (
Essent Group: A Solid Leader Of The PMI Market At A Fair Price
Summary
- Essent Group Ltd. continued writing high-quality policies and maintained its excellent portfolio characteristics in Q1-2021.
- ESNT will keep benefiting from a strong mortgage origination throughout 2021.
- Forbearances and default rates remain the catalyst for investors' confidence in the PMI market.
- ESNT stock has entered its lower-end fair value territory, but there is still room for further upside.
Yiannis Zourmpanos, founder of Yiazou IQ, an AI-driven stock research platform providing all-in-one stock reports. Experience: Previously worked at Deloitte and KPMG in external/internal auditing and consulting. Education: Chartered Certified Accountant, Fellow Member of ACCA Global, with BSc and MSc degrees from U.K. business schools. Investment Style: We focus on GARP/Value stocks—high-quality, reasonably priced businesses with strong moats and significant growth potential. We prioritize fundamentals and seek stocks trading at a discount to intrinsic value, with a clear margin of safety. Our long-term approach (5-7 years) aims for wealth accumulation through compounding while emphasizing downside protection and sometimes taking contrarian views during market uncertainties.
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