NMI (NMIH) Q4 2024 Earnings Call February 06, 2025 05:00 PM ET Company Participants John Swenson - Vice President of Investor Relations & TreasuryBrad Shuster - Executive ChairmanAdam Pollitzer - President and Chief Executive OfficerAurora Swithenbank - Executive VP & CFOBose George - Managing Director Conference Call Participants Douglas Harter - Equity Research AnalystTerry Ma - Senior Equity Research AnalystRichard Shane - Stock AnalystMark Hughes - AnalystMihir Bhatia - Equity Research Analyst Operator ...

Financial Performance - Net income for Q4 2024 was $86.2 million, or $1.07 per diluted share, compared to $92.8 million, or $1.15 per diluted share in Q3 2024, and $83.4 million, or $1.01 per diluted share in Q4 2023[2][3] - Full year net income for 2024 was $360.1 million, or $4.43 per diluted share, up from $322.1 million, or $3.84 per diluted share in 2023[3] - Total revenue for Q4 2024 was $166.5 million, compared to $166.1 million in Q3 2024 and $151.4 million in Q4 2023[6][7] - Total revenues for the year ended December 31, 2024, reached $650,971,000, up from $579,003,000 in 2023, reflecting an increase of 12.3%[21] - Net income for Q4 2024 was $86,167,000, compared to $83,413,000 in Q4 2023, marking a rise of 3.3%[21] - The diluted earnings per share (EPS) for the year 2024 was $4.43, up from $3.84 in 2023, indicating a growth of 15.4%[21] Premiums and Insurance - Net premiums earned in Q4 2024 were $143.5 million, slightly up from $143.3 million in Q3 2024 and an 8% increase from $132.9 million in Q4 2023[6][7] - Net premiums earned increased to $143,520,000 in Q4 2024 from $132,940,000 in Q4 2023, representing a growth of 6.4%[21] - New Insurance Written (NIW) for Q4 2024 was $11.9 billion, a 2% decrease from $12.2 billion in Q3 2024 but a 34% increase from $8.9 billion in Q4 2023[7] - The total Primary NIW for the year ended December 31, 2024, was $46,044 million, compared to $40,473 million for the year ended December 31, 2023[38] Claims and Expenses - Insurance claims and claim expenses in Q4 2024 were $17.3 million, a 67% increase from $10.3 million in Q3 2024 and a 110% increase from $8.2 million in Q4 2023[6][7] - The total claims and claim expenses incurred for the year ended December 31, 2024, were $31,544 thousand, compared to $21,895 thousand in 2023[51] - The average amount paid per claim increased to $44 for the three months ended December 31, 2024, compared to $29 in the same period of 2023[55] Ratios and Performance Metrics - The adjusted combined ratio for Q4 2024 was 33.7%, compared to 28.5% in Q4 2023, reflecting a deterioration of 5.2 percentage points[21] - The loss ratio for Q4 2024 was 12.0%, up from 6.2% in Q4 2023, indicating an increase of 5.8 percentage points[21] - The expense ratio for the year 2024 was 21.0%, slightly down from 21.7% in 2023, showing a minor improvement[21] - The combined ratio for Q4 2024 was 33.7%, compared to 28.5% in Q4 2023, indicating a deterioration in underwriting performance[27] Assets and Equity - Total assets increased to $3,349,973,000 as of December 31, 2024, from $2,940,507,000 in 2023, an increase of 13.9%[23] - Shareholders' equity rose to $2,217,432,000 as of December 31, 2024, compared to $1,926,004,000 in 2023, representing a growth of 15.1%[23] - Available assets as of December 31, 2024, were $3,108,211 thousand, an increase from $2,717,804 thousand in 2023[57] Share Repurchase and Book Value - The company announced an additional $250 million share repurchase authorization effective through December 31, 2027[4] - Book value per share, excluding net unrealized gains and losses, was $29.80, up 4% from $28.71 in Q3 2024 and 17% from $25.54 in Q4 2023[6][7] - Book value per share increased to $28.21 in Q4 2024 from $23.81 in Q4 2023, reflecting a growth of 18.5%[25] Risk and Default Rates - The default rate increased to 1.01% in Q4 2024 from 0.87% in Q3 2024[30] - The cumulative default rate for policies ever in force is 6.2% as of December 31, 2024, with a current default rate of 0.2%[48] - The ending default inventory as of December 31, 2024, was 6,642, up from 5,099 in 2023, with new defaults totaling 8,757 for the year[54]

EMERYVILLE, Calif., Feb. 06, 2025 (GLOBE NEWSWIRE) -- NMI Holdings, Inc. (Nasdaq: NMIH) today reported net income of $86.2 million, or $1.07 per diluted share, for the fourth quarter ended December 31, 2024, which compares to $92.8 million, or $1.15 per diluted share, for the third quarter ended September 30, 2024 and $83.4 million, or $1.01 per diluted share, for the fourth quarter ended December 31, 2023. Adjusted net income for the quarter was $86.1 million, or $1.07 per diluted share, which compares to ...

Core Insights - NMI Holdings, Inc. reported a net income of $86.2 million for Q4 2024, a decrease from $92.8 million in Q3 2024 but an increase from $83.4 million in Q4 2023 [1][6] - For the full year 2024, net income was $360.1 million, up from $322.1 million in 2023, with adjusted net income at $365.6 million compared to $322.1 million in the previous year [2][24] - The company announced a $250 million share repurchase plan effective through December 31, 2027, indicating confidence in its financial position [3][4] Financial Performance - Q4 2024 highlights include: - Primary insurance-in-force reached $210.2 billion, up 1% quarter-over-quarter and 7% year-over-year [5][6] - New Insurance Written (NIW) was $11.9 billion, down 2% from Q3 2024 but up 34% from Q4 2023 [5][6] - Net premiums earned were $143.5 million, a slight increase from $143.3 million in Q3 2024 and an 8% increase from $132.9 million in Q4 2023 [5][6] - Total revenue for Q4 2024 was $166.5 million, compared to $166.1 million in Q3 2024 and $151.4 million in Q4 2023 [6][24] - Insurance claims and claim expenses rose to $17.3 million, significantly higher than $10.3 million in Q3 2024 and $8.2 million in Q4 2023, resulting in a loss ratio of 12.0% [6][7] Shareholder Value - The company reported a book value per share of $28.21, up 4% from $28.71 in Q3 2024 and 17% from $25.54 in Q4 2023 [6][7] - The annualized return on equity for Q4 2024 was 15.6%, down from 17.5% in Q3 2024 and 18.0% in Q4 2023 [6][7] - Shareholders' equity at the end of Q4 2024 was $2.2 billion, reflecting a strong capital position [6][24]

Earnings Announcement - NMI Holdings Inc will report its Q4 and full-year 2024 results after market close on February 6 2025 [1] Conference Call Details - The company will hold a conference call and live webcast at 2:00 pm PT / 5:00 pm ET on February 6 2025 [2] - The webcast will be available on the company's investor relations website [2] - The call can be accessed by dialing (844) 481-2708 in the US or (412) 317-0664 internationally [2] - A replay of the webcast and earnings materials will be available on the company's website [2] Company Overview - NMI Holdings Inc is the parent company of National Mortgage Insurance Corporation (National MI) [3] - National MI is a US-based private mortgage insurance company [3] - The company enables low-down-payment borrowers to achieve home ownership while protecting lenders and investors from borrower default risks [3]

NMI Holdings Inc. (NMIH) has been trading above its 50-day simple moving average (SMA), signaling a short-term bullish trend. Its share price as of Jan. 21, 2025, was $37.76, down 11.1% from its 52-week high of $42.49.The 50-day SMA is a key indicator for traders and analysts to identify support and resistance levels. It is considered particularly important as this is the first marker of an uptrend or downtrend.With a market capitalization of $2.98 billion, NMIH is set to gain from improving mortgage insura ...

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I haven’t written for SA for several months. My articles over time were generally of two types. One was recommending purchase of value stocks in the housing and consumer finance industries, my area of experience. TheGary Gordon’s career was on Wall Street, where he was a stock analyst covering the housing, mortgage and consumer finance industries. He also served as a U.S. investment strategist and as a portfolio manager. The bulk of his work career was at PaineWebber and UBS. He is now retired. Mr. Gordon i ...

Shares of NMI Holdings (NMIH) have gained 23.1% year to date, underperforming the industry’s growth of 26.5% and the S&P 500 composite’s rise of 25.3%. The company has outperformed the  Finance sector’s rally of 17.2%.NMIH shares are trading well above the 50-day moving average, indicating a bullish trend.An improving mortgage insurance portfolio, higher new insurance written volume, a comprehensive reinsurance program, a solid capital position and effective capital deployment should drive NMI Holdings’ sto ...

Core Viewpoint - NMI Holdings, Inc. has appointed Mohammad Yousaf as the Chief of Operations and Technology, effective January 1, 2025, reflecting his significant contributions and leadership within the company [1][3]. Company Overview - National MI is a private mortgage insurance company that enables low down payment borrowers to achieve home ownership while protecting lenders and investors against losses from borrower defaults [5]. Leadership and Contributions - Mohammad Yousaf has been with National MI since 2018, previously serving as Senior Vice President and Chief Business Transformation Officer and Vice President of Business Development and Technology Partnerships [4]. - The appointment of Mr. Yousaf is seen as a well-deserved promotion, highlighting his instrumental role in the company's success and innovation [3]. Future Direction - In his new role, Mr. Yousaf will continue to lead the innovation of National MI's customer platform and technology roadmap, collaborating with the executive team to shape the company's future [2][5]. - Mr. Yousaf expressed pride in leading the operations and technology teams, emphasizing the company's commitment to providing differentiated solutions and services in the private mortgage insurance industry [5].