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NMI Holdings (NMIH) Q4 Earnings Top, Revenues Miss Estimates
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NMI Holdings (NMIH - Free Report) reported fourth-quarter 2020 operating net income per share of 59 cents, which beat the Zacks Consensus Estimate by 20.4%. However, the bottom line declined 21.3% year over year.
The fourth-quarter performance was aided by strength of the purchase mortgage market and the refinance market, resulting in new business opportunity. This helped the mortgage insurer deliver sturdy new insurance written.
Operational Update
NMI Holdings recorded total operating revenues of $110 million, which increased 4.8% year over year on higher net premiums earned (up 5%) and net investment income (up 5.3%). Revenues, however, missed the Zacks Consensus Estimate by 1.1%.
Primary insurance-in-force increased 17% to $111.3 billion.
New insurance written was $19.8 billion, up 66.4% year over year.
Net underwriting and operating expenses totaled $35 million, up 11.8% year over year. Insurance claims and claim expenses were $3.5 million, down 18.6%.
Loss ratio was 3.5%, which improved 100 basis points year over year.
NMI Holdings Inc Price, Consensus and EPS Surprise
Of the insurance industry players that have reported fourth-quarter results so far, The Travelers Companies (TRV - Free Report) , W.R. Berkley Corporation (WRB - Free Report) and Progressive Corporation (PGR - Free Report) beat the respective Zacks Consensus Estimate for earnings.
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NMI Holdings (NMIH) Q4 Earnings Top, Revenues Miss Estimates
NMI Holdings (NMIH - Free Report) reported fourth-quarter 2020 operating net income per share of 59 cents, which beat the Zacks Consensus Estimate by 20.4%. However, the bottom line declined 21.3% year over year.
The fourth-quarter performance was aided by strength of the purchase mortgage market and the refinance market, resulting in new business opportunity. This helped the mortgage insurer deliver sturdy new insurance written.
Operational Update
NMI Holdings recorded total operating revenues of $110 million, which increased 4.8% year over year on higher net premiums earned (up 5%) and net investment income (up 5.3%). Revenues, however, missed the Zacks Consensus Estimate by 1.1%.
Primary insurance-in-force increased 17% to $111.3 billion.
New insurance written was $19.8 billion, up 66.4% year over year.
Net underwriting and operating expenses totaled $35 million, up 11.8% year over year. Insurance claims and claim expenses were $3.5 million, down 18.6%.
Loss ratio was 3.5%, which improved 100 basis points year over year.
NMI Holdings Inc Price, Consensus and EPS Surprise
NMI Holdings Inc price-consensus-eps-surprise-chart | NMI Holdings Inc Quote
Financial Update
Book value per share, a measure of net worth, grew 18% to $16.08 as of Dec 31, 2020 from 2019 end.
NMI Holdings had $1.9 billion in cash and investments, up 63%. Debt balance of $393.3 million more than doubled year over year.
Annualized adjusted return on equity was 15.2%
Total PMIERs available assets were $1.8 billion and net risk-based required assets totaled $984 million at 2020 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 Insurers
Of the insurance industry players that have reported fourth-quarter results so far, The Travelers Companies (TRV - Free Report) , W.R. Berkley Corporation (WRB - Free Report) and Progressive Corporation (PGR - Free Report) beat the respective Zacks Consensus Estimate for earnings.
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Imagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027.
Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.
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