Published on 1 May 2024 on Zacks via Yahoo Finance

NMI Holdings (NMIH) Q1 Earnings and Revenues Beat, Rise Y/Y

NMI Holdings NMIH reported first-quarter 2024 operating net income per share of $1.08, which beat the Zacks Consensus Estimate by 12.5%. The bottom line increased 22.7% year over year. The quarterly results reflected higher premiums and net investment income, and increased persistency, which drove growth in the company’s high-quality insured portfolio.

Operational Update

NMI Holdings’ total operating revenues of $156 million increased 13.8% year over year on higher net premiums earned (up 12.2%) and net investment income (up 30.5%). Revenues beat the Zacks Consensus Estimate by 2.5%.Primary insurance in force increased 7.1% to $199.4186.7 billion. Annual persistency was 85.8%, up 70 basis points (bps) year over year. New insurance written was $9.4 billion, up 7.6% year over year.Underwriting and operating expenses totaled $29.8 million, up 15.5% year over year. Insurance claims and claim expenses were $3.7 million, reflecting a drop of 44.7% year over year. The loss ratio was 2.7, which improved 280 bps year over year.The adjusted expense ratio of 22.4 deteriorated 60 bps year over year, while the adjusted combined ratio of 24.5 improved 60 bps year over year.