NMI Holdings Q4 Earnings and Revenues Miss Estimates, Premiums Up Y/Y

Core Viewpoint - NMI Holdings (NMIH) reported mixed financial results for the fourth quarter of 2024, with operating net income per share of $1.07, missing estimates, despite a year-over-year increase in earnings and revenues [1][5]. Financial Performance - Fourth-quarter operating revenues reached $167 million, a 10.6% increase year over year, driven by higher net premiums earned (up 8%) and net investment income (up 25%), although it fell short of estimates by 1.7% [3]. - Full-year operating net income per share was $4.50, slightly below the consensus estimate of $4.54, with a year-over-year increase of 5.9% [5]. - Total operating revenues for the year amounted to $650.9 million, reflecting a 12.4% increase year over year, but also missing the consensus estimate of $653.8 million [5]. Underwriting and Claims - Underwriting and operating expenses totaled $31.1 million, up 5% year over year, while insurance claims and claim expenses surged to $17.3 million, a 110% increase year over year [4]. - The loss ratio deteriorated to 12%, worsening by 580 basis points year over year, while the combined ratio also deteriorated to 34, down 580 basis points [4]. Operational Metrics - Primary insurance in force increased by 7% to $210.2 billion, with new insurance written at $11.9 billion, a 34% year-over-year increase [3]. - Annual persistency decreased to 84.6%, down 150 basis points year over year [3]. Financial Position - As of December 31, 2024, book value per share rose 18.5% year over year to $28.21, while cash and cash equivalents decreased by 43.8% to $54.3 million [6]. - The debt balance increased by 4.4% to $415 million, and the annualized adjusted return on equity contracted by 80 basis points to 17% [6]. Shareholder Actions - The board of directors approved an additional $250 million share repurchase plan, effective through December 31, 2027 [7].