NMI Holdings (NMIH - Free Report) reported second-quarter 2021 operating net income per share of 67 cents, which beat the Zacks Consensus Estimate by 6.4%. The bottom line increased 67.5% year over year.
Quarterly performance benefited from significant new business production, strong growth in high quality and shared portfolio and record financial results.
NMI Holdings Inc Price, Consensus and EPS Surprise
Operational Update
NMI Holdings recorded total operating revenues of $121 million, which increased 12% year over year on higher net premiums earned (up 12%) and net investment income (up 32.7%). Revenues beat the Zacks Consensus Estimate by about 1%.
Primary insurance-in-force increased 38% to $136.6 billion.
New insurance written was $22.6 billion, up 73.4% year over year.
Annual persistency was 53.9%, down from 64.1% in the year-ago quarter.
Net underwriting and operating expenses totaled $34.7 million, up 14.1% year over year. Insurance claims and claim expenses were $4.6 million, down 86.6%.
Loss ratio was 4.2, which improved 3050 basis points year over year. Expense ratio of 31.3 deteriorated 60 basis points year over year while combined ratio of 35.5 improved 2990 basis points year over year.
Financial Update
Book value per share, a measure of net worth, grew 15% year over year to $17.03 as of Jun 30, 2021.
NMI Holdings had $2.1 billion in cash and investments, up 11% from 2020 end. Debt balance of $393.9 million increased 0.2% from 2020 end.
Annualized adjusted return on equity was 16.4%, up 570 basis points.
Total PMIERs available assets were $1.9 billion and net risk-based required assets totaled $1.2 billion at second-quarter 2021 end.
Zacks Rank
NMI Holdings currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Property & Casualty Insurers
Of the insurance industry players that have reported second-quarter results so far, The Travelers Companies (TRV - Free Report) , The Progressive Corporation (PGR - Free Report) and RLI Corporation’s (RLI - Free Report) earnings beat the Zacks Consensus Estimate.
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NMI Holdings (NMIH - Free Report) reported second-quarter 2021 operating net income per share of 67 cents, which beat the Zacks Consensus Estimate by 6.4%. The bottom line increased 67.5% year over year.
Quarterly performance benefited from significant new business production, strong growth in high quality and shared portfolio and record financial results.
NMI Holdings Inc Price, Consensus and EPS Surprise
Operational Update
NMI Holdings recorded total operating revenues of $121 million, which increased 12% year over year on higher net premiums earned (up 12%) and net investment income (up 32.7%). Revenues beat the Zacks Consensus Estimate by about 1%.
Primary insurance-in-force increased 38% to $136.6 billion.
New insurance written was $22.6 billion, up 73.4% year over year.
Annual persistency was 53.9%, down from 64.1% in the year-ago quarter.
Net underwriting and operating expenses totaled $34.7 million, up 14.1% year over year. Insurance claims and claim expenses were $4.6 million, down 86.6%.
Loss ratio was 4.2, which improved 3050 basis points year over year. Expense ratio of 31.3 deteriorated 60 basis points year over year while combined ratio of 35.5 improved 2990 basis points year over year.
Financial Update
Book value per share, a measure of net worth, grew 15% year over year to $17.03 as of Jun 30, 2021.
NMI Holdings had $2.1 billion in cash and investments, up 11% from 2020 end. Debt balance of $393.9 million increased 0.2% from 2020 end.
Annualized adjusted return on equity was 16.4%, up 570 basis points.
Total PMIERs available assets were $1.9 billion and net risk-based required assets totaled $1.2 billion at second-quarter 2021 end.
Zacks Rank
NMI Holdings currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Property & Casualty Insurers
Of the insurance industry players that have reported second-quarter results so far, The Travelers Companies (TRV - Free Report) , The Progressive Corporation (PGR - Free Report) and RLI Corporation’s (RLI - Free Report) earnings beat the Zacks Consensus Estimate.
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Since 1950, presidential election years have been strong for the market. This report names 5 timely stocks to ride the wave of electoral excitement.
They include a medical manufacturer that gained +11,000% in the last 15 years… a rental company absolutely crushing its sector… an energy powerhouse planning to grow its already large dividend by 25%... an aerospace and defense standout that just landed a potentially $80 billion contract… and a giant chipmaker building huge plants in the U.S.
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