Essent Group price target raised to $64 from $58 at RBC Capital

RBC Capital raised the firm’s price target on Essent Group to $64 from $58 and keeps an Outperform rating on the shares as part of a broader research note previewing Insurance companies’ Q1 results. P&C pricing trends remain resilient, and while core underwriting margin improvement is difficult, companies should continue generating attractive combined ratios for Q1, the analyst tells investors in a research note. Mortgage insurers should also see continued favorable reserving, unemployment rate, default rate, persistency ratio, combined ratio, and ROE trends albeit on lower transaction volume, while life insurers should continue to benefit from better spreads and robust annuity sales, the firm added.