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 record adjusted EPS of $4.50, up 17% compared to 2023 [8][17] - Total revenue for Q4 was a record $166.5 million, with adjusted net income of $86.1 million, or $1.07 per diluted share, and a 15.6% adjusted return on equity [21][14] - The company closed 2024 with $46 billion of total new insurance written (NIW) volume and a record $210.2 billion of primary insurance-in-force [7][13] Business Line Data and Key Metrics Changes - The primary insurance-in-force grew to $210.2 billion, up 1% from Q3 and 7% compared to Q4 2023 [22] - The company activated 118 new lenders in 2024, ending the year with over 1,600 active accounts [15] - The net premiums earned in Q4 were a record $143.5 million, compared to $143.3 million in Q3 and $132.9 million in Q4 2023 [22] 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 [17] - The company reported a 1% default rate at year-end, with 6,642 defaults, including 471 new notices for loans in FEMA-declared disaster areas [24][25] Company Strategy and Development Direction - The company plans to continue focusing on customer service, value-added engagement, and technology leadership while prioritizing discipline and risk responsibility [10] - The management emphasized the importance of building value for shareholders, growing earnings, and prudently distributing excess capital [10][20] - The company is well-positioned to support housing goals and expand access to home ownership, as recognized by bipartisan discussions in Washington [11][81] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the macro outlook and the private MI market opportunity, highlighting the strength of their customer franchise and the quality of their insured portfolio [20] - The company expects continued growth in their high-quality insured portfolio and strong returns for shareholders [30] - Management noted that credit performance remains strong, with existing borrowers well-positioned against the resilient U.S. economy [19] Other Important Information - The company completed a successful debt refinancing and returned capital to shareholders through a repurchase program, purchasing $27.9 million of common stock in Q4 [16][26] - Shareholders' equity at year-end was $2.2 billion, with book value per share at $28.21, up 4% from Q3 and 17% from Q4 2023 [26] Q&A Session Summary Question: How should we think about the pacing of capital return? - Management indicated that the repurchase program is expected to maintain a consistent pace of about $25 million per quarter, with a total of approximately $330 million available over the next 12 quarters [35][36] 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 in the quarter coming from loans that defaulted in earlier quarters [44][45] Question: Any updates on claims activity and underwriting assumptions? - Claims expense for the quarter was $17.3 million, with a 12% loss ratio, and management remains encouraged by the credit performance of their book [48][49] Question: What about dividends in the future? - Currently, the focus is on the repurchase program, but there may be an ability to introduce a common dividend as performance continues to grow [60] Question: Any updates on specific markets of concern? - Management noted that there have been no fundamental changes in risk profiles for specific markets, and they continue to actively manage their mix of business [62] Question: How does credit deterioration impact yield? - A deterioration in credit could put pressure on net yield, as claims experience affects the profit commission from reinsurance treaties [77][78]

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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