Published on 15 Feb 2024 on Zacks via Yahoo Finance

NMI Holdings (NMIH) Q4 Earnings Beat on Higher Premiums

NMI Holdings NMIH reported fourth-quarter 2023 operating net income per share of $1.01, which beat the Zacks Consensus Estimate by 6.3%. The bottom line increased 17.4% 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 $151.4 million increased 13.7% year over year on higher net premiums earned (up 11.1%) and net investment income (up 36.8%). Revenues beat the Zacks Consensus Estimate by 0.9%.Primary insurance in force increased 7.1% to $197 billion. Annual persistency was 86.1%, up 260 basis points (bps) year over year.New insurance written was $8.9 billion, down 16.7% year over year.Underwriting and operating expenses totaled $29.7 million, up 11.3% year over year. Insurance claims and claim expenses were $8.2 million, up 1.4% year over year.The loss ratio was 6.2, which improved 330 bps year over year.The adjusted expense ratio of 22.4 improved 10 bps year over year, while the adjusted combined ratio of 28.5 improved 330 bps year over year.