NMI (NMIH) - 2024 Q4 - Annual Results

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$86,167,000, compared to $83,413,000 in Q4 2023, marking a rise of 3.3$4.43, up from $3.84 in 2023, indicating a growth of 15.4$143.5 million, slightly up from $143.3 million in Q3 2024 and an 8$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$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$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$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]