NMI Holdings Q3 Earnings, Revenues Top Estimates, Premiums Up Y/Y

Core Insights - NMI Holdings (NMIH) reported a third-quarter 2024 operating net income per share of $1.15, exceeding the Zacks Consensus Estimate by 4.6% and reflecting a 15% year-over-year increase [1] - The company's total operating revenues reached$ 166 million, a 12.3% increase year over year, driven by higher net premiums earned and net investment income [2] - The primary insurance in force rose by 6.5% to $207.5 billion, with an annual persistency rate of 85.5%, up 10 basis points year over year [2] Operational Update - NMI Holdings' net premiums earned increased by 10.2%, while net investment income surged by 25.8% [2] - New insurance written decreased by 2% year over year to$ 12.2 billion [2] - Underwriting and operating expenses totaled $29.2 million, up 5.1% year over year, with insurance claims and claim expenses more than doubling to$ 10.3 million [3] Financial Update - Book value per share increased by 7.8% year over year to $27.67 as of September 30, 2024 [4] - Cash and cash equivalents decreased by 37.9% from the end of 2023 to$ 133.3 million, while the debt balance rose by 4.3% to $414.5 million [4] - The annualized adjusted return on equity contracted by 150 basis points year over year to 17.5% [4] PMIERs and Risk-Based Assets - Total PMIERs available assets were reported at$ 3 billion, with net risk-based required assets totaling $1.7 billion at the end of the third quarter of 2024 [5] Industry Performance - The Travelers Companies reported a third-quarter 2024 core income of$ 5.24 per share, beating estimates by 38.2%, with total revenues increasing by 10.7% to $11.84 billion [7] - Progressive Corporation's earnings per share of$ 3.97 exceeded estimates by 16.6%, with operating revenues improving by 24.9% year over year to $19.5 billion [9] - RLI Corp. reported operating earnings of$ 1.31 per share, beating estimates by 33.7%, with gross premiums written increasing by 13% year over year to $563.4 million [11]