Essent Group Ltd
NYSE:ESNT

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Essent Group Ltd
NYSE:ESNT
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Price: 53.26 USD 0.66% Market Closed
Market Cap: 5.7B USD
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Essent Group Ltd
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Essent Group Ltd
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Essent Group Ltd
NYSE:ESNT
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Essent Group Ltd
Glance View

Market Cap
5.7B USD
Industry
Financial Services

Essent Group Ltd. stands as a notable player in the private mortgage insurance sector, a critical component of the broader financial services landscape. Founded in 2008 in the midst of economic upheaval, the company seized an opportunity as demand for private mortgage insurance (PMI) surged. As a PMI provider, Essent plays a vital role in the housing market by protecting lenders from potential losses arising from borrower defaults. This is especially significant for homebuyers who are unable to make a 20% down payment on their loans. The insurance product provided by Essent helps these buyers obtain mortgages with smaller down payments, facilitating home ownership while simultaneously mitigating lender risk. The company's business model is chiefly grounded in underwriting and offering private mortgage insurance. Essent generates revenue by collecting premiums from borrowers, which serve as the cost of the insurance protection offered. The company’s profits are derived from the premiums that exceed the claims paid out and operational costs. Essent Group's adept risk management and underwriting practices are pivotal, as they ensure that the risks taken are judiciously calculated, allowing the company to maintain financial stability and profitability. By strategically leveraging data analytics and market knowledge, Essent navigates the intricate balance between growth and risk in the dynamic real estate market. This ability to adapt and respond to changing market conditions has cemented Essent's position as a formidable entity within the insurance industry.

ESNT Intrinsic Value
82.45 USD
Undervaluation 35%
Intrinsic Value
Price

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