Core Insights - NMI Holdings (NMIH) reported a revenue of $166.5 million for the quarter ended December 2024, reflecting a 10% increase year-over-year, but fell short of the Zacks Consensus Estimate by -1.65% [1] - The earnings per share (EPS) for the quarter was $1.07, an increase from $1.01 in the same quarter last year, but also missed the consensus estimate of $1.11 by -3.60% [1] Financial Performance Metrics - Insurance in force (IIF) was reported at $210.18 billion, slightly below the average estimate of $210.88 billion from three analysts [4] - Risk in force (RIF) stood at $56.11 billion, exceeding the average estimate of $55.53 billion [4] - The combined ratio was 33.7%, slightly higher than the average estimate of 33.3% [4] - The loss ratio was reported at 12%, better than the estimated 12.3% [4] - The expense ratio was 21.7%, compared to the average estimate of 21% [4] - Net investment income reached $22.72 million, which is a year-over-year increase of +24.5%, but slightly below the average estimate of $22.80 million [4] - Net premiums earned were $143.52 million, lower than the average estimate of $146.26 million, but represented an 8% year-over-year increase [4] - Other revenues were reported at $0.23 million, matching the average estimate and showing a +20.7% change compared to the year-ago quarter [4] Stock Performance - NMI Holdings' shares have returned +9.5% over the past month, outperforming the Zacks S&P 500 composite, which saw a +2.1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Core Viewpoint - NMI Holdings (NMIH) reported quarterly earnings of $1.07 per share, missing the Zacks Consensus Estimate of $1.11 per share, but showing an increase from $1.01 per share a year ago, indicating a -3.60% earnings surprise [1][2] Financial Performance - The company posted revenues of $166.5 million for the quarter ended December 2024, which was below the Zacks Consensus Estimate by 1.65%, compared to $151.38 million in the same quarter last year [2] - Over the last four quarters, NMI Holdings has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] Stock Performance - NMI Holdings shares have increased approximately 6.2% since the beginning of the year, outperforming the S&P 500's gain of 3.1% [3] - The current consensus EPS estimate for the upcoming quarter is $1.13 on revenues of $173.11 million, and for the current fiscal year, it is $4.68 on revenues of $701.75 million [7] Industry Outlook - The Zacks Industry Rank for Insurance - Property and Casualty is currently in the bottom 47% of over 250 Zacks industries, suggesting that the industry outlook may negatively impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Data and Key Metrics Changes - In Q4 2024, the company reported record adjusted net income of $365.6 million, up 13% compared to 2023, and adjusted EPS of $4.50, up 17% compared to 2023 [7][14][22] - Total revenue for Q4 was a record $166.5 million, compared to $151.4 million in Q4 2023, marking a 12% increase year-over-year [12][19][21] - The adjusted return on equity for the quarter was 15.6% [18][22] Business Line Data and Key Metrics Changes - The company generated $11.9 billion of new insurance written (NIW) in Q4 2024, with a total of $46 billion for the year [12][14] - The primary insurance in force grew to $210.2 billion, up 1% from Q3 2024 and 7% compared to Q4 2023 [18][21] - The company maintained a high-quality insured portfolio with a default rate of 1% at year-end [20][35] Market Data and Key Metrics Changes - The total MI industry NIW volume was estimated at $300 billion in 2024, demonstrating strength despite elevated interest rates [14][15] - The company activated 118 new lenders in 2024, ending the year with over 1,600 active accounts [13] Company Strategy and Development Direction - The company plans to continue focusing on customer service, value-added engagement, and technology leadership to differentiate itself in the evolving mortgage market [9][10] - The management emphasized the importance of maintaining a disciplined approach to risk management while growing the insured portfolio [10][15] - The company aims to build value for shareholders through earnings growth, compounding book value, and prudent capital distribution [10][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the macroeconomic outlook and the private MI market opportunity, indicating a strong position to deliver value for stakeholders [16][22] - The management noted constructive conversations with policymakers in Washington, recognizing the role of private mortgage insurance in expanding access to homeownership [10][11] Other Important Information - The company repurchased $27.9 million of common stock in Q4, with a total of $245 million repurchased throughout the year [21] - The company has $80 million of repurchase capacity remaining under its existing program, with an additional $250 million authorization [21] Q&A Session Summary Question: How should we think about the pacing of capital return? - The company plans to maintain a consistent repurchase pace of about $25 million per quarter, with flexibility to be opportunistic if market conditions change [25][26] Question: Can you provide color on the reserve release for prior period defaults? - The reserve release for prior years was $4.4 million, with the majority of cures coming from loans that defaulted in earlier quarters [30][31] Question: Any updates on credit and claims activity? - Claims expense for the quarter was $17.3 million, with a 12% loss ratio, and the company remains encouraged by the credit performance of its book [33][34] Question: When might dividends become part of the capital return strategy? - Currently, the focus is on the repurchase program, but there may be potential for dividends in the future as the company continues to perform and grow [40][41] Question: What is the current competitive landscape regarding pricing? - The company does not receive much pushback on pricing from lenders and aims to strike a balance between supporting lenders and protecting returns [45][46] Question: Will premium yield trend up or down? - Core yield is expected to remain stable, while net yield may vary based on claims experience [52][53] Question: What is the right amount of PMIERs excess to operate with? - The company aims for a balanced approach, maintaining a comfortable PMIERs excess position while delivering strong returns [61][62] Question: Why is the expense ratio not decreasing as expected? - The company targets a low to mid-20s expense ratio and continues to seek efficiency, but the current ratio reflects operational realities [63][64]

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 ...