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NMI Holdings (NMIH) Q1 Earnings and Revenues Beat Estimates

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NMI Holdings (NMIH - Free Report) reported first-quarter 2021 operating net income per share of 62 cents, which beat the Zacks Consensus Estimate by 5.1%. However, the bottom line declined 17.3% year over year.

Quarterly results benefited from record new insurance written volume, significant growth in insured portfolio and strong financial performance.

NMI Holdings Inc Price, Consensus and EPS Surprise

Operational Update

NMI Holdings recorded total operating revenues of $115 million, which increased 6.5% year over year on higher net premiums earned (up 7%) and net investment income (up 8.8%). Revenues beat the Zacks Consensus Estimate by 2.1%.

Primary insurance-in-force increased 26% to $123.8 billion.

New insurance written was $26.4 billion, up 134% year over year.

Annual persistency was 51.9%, down from 71.7% in the year ago quarter.

Net underwriting and operating expenses totaled $34.1 million, up 5.6% year over year. Insurance claims and claim expenses were $5 million, down 12.3%.

Loss ratio was 4.7, which improved 110 basis points year over year. Expense ratio of 32.2 improved 50 basis points year over year while combined ratio of 36.9 improved 160 basis points year over year.

Financial Update

Book value per share, a measure of net worth, grew 14% year over year to $16.138 as of Mar 31, 2021.

NMI Holdings had $1.9 billion in cash and investments, up 1% from 2020 end. Debt balance of $393.6 million increased 0.1% from 2020 end.

Annualized adjusted return on equity was 15.5%, down 660 basis points.

Total PMIERs available assets were $1.8 billion and net risk-based required assets totaled $1.3 billion at first-quarter 2021 end.

Zacks Rank

NMI Holdings currently carries a Zacks Rank #2 (Buy). 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 first-quarter results so far, The Travelers Companies (TRV - Free Report) , W.R. Berkley Corporation (WRB - Free Report) and RLI Corporation’s (RLI - Free Report) earnings beat the Zacks Consensus Estimate.

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