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NMI Holdings (NMIH) Q4 Earnings Beat on Higher Premiums
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NMI Holdings (NMIH - Free Report) 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.
NMI Holdings Inc Price, Consensus and EPS Surprise
Operating net income per share of $3.84 increased 13.3% year over year. Operating revenues improved 10.7% year over year.
Adjusted expense ratio improved 300 bps, while adjusted combined ratio deteriorated 220 bps.
Financial Update
Book value per share, a measure of net worth, was up 23.3% year over year to $23.81 as of Dec 31, 2023.
NMI Holdings had $96.7 million in cash and cash equivalents, more than doubled from 2022-end. The debt balance of $397.6 million increased 0.4% from the end of 2022.
Annualized adjusted return on equity was 18%, which contracted 40 bps year over year.
Total PMIERs available assets were $2.7 billion and net risk-based required assets totaled $1.5 billion at the fourth quarter of 2023-end.
The Travelers Companies (TRV - Free Report) reported fourth-quarter 2023 core income of $7.01 per share, which beat the Zacks Consensus Estimate of $5.04. The bottom line more than doubled year over year, driven by higher underlying underwriting gain, lower catastrophe losses and higher net investment income. Travelers’ total revenues increased 13.5% from the year-ago quarter to $10.9 billion, primarily driven by higher premiums. The top-line figure beat the Zacks Consensus Estimate by 0.2%.
Net written premiums increased 13% year over year to about $10 billion, driven by strong growth across all three segments. The figure was higher than our estimate of $9.7 billion. TRV witnessed an underwriting gain of $1.4 billion, up more than three-fold year over year, driven by higher business volumes. The combined ratio improved 870 bps year over year to 85.8, driven by a lower underlying combined ratio and catastrophe losses.
The Progressive Corporation’s (PGR - Free Report) fourth-quarter 2023 earnings per share of $2.96 beat the Zacks Consensus Estimate of $2.38. The bottom line improved 97.3% year over year. Operating revenues of $16.6 billion beat the Zacks Consensus Estimate by 3% and increased 23.2% year over year.
Net premiums written were $15.1 billion in the quarter, up 21% from $12.5 billion a year ago. PGR’s premiums beat our estimate of $14 billion. Net premiums earned grew 22% to $15.8 billion and beat our estimate of $14.8 billion.
Progressive’s combined ratio improved 520 bps from the prior-year quarter’s level to 88.7.
W.R. Berkley Corporation’s (WRB - Free Report) fourth-quarter 2023 operating income of $1.45 per share beat the Zacks Consensus Estimate of $1.35 by 7.4%. The bottom line improved 25% year over year. Operating revenues came in at $3.2 billion, up 9.3% year over year, on the back of higher net premiums earned as well as improved net investment income. The top line beat the consensus estimate by 1.3%
W.R. Berkley’s net premiums written were $2.7 billion, up 12% year over year. The figure was lower than our estimate of $2.8 billion. Pre-tax underwriting income increased 8.2% to $315.9 million. The consolidated combined ratio remained flat year over year at 88.4.
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NMI Holdings (NMIH) Q4 Earnings Beat on Higher Premiums
NMI Holdings (NMIH - Free Report) 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.
NMI Holdings Inc Price, Consensus and EPS Surprise
NMI Holdings Inc price-consensus-eps-surprise-chart | NMI Holdings Inc Quote
Full-Year Highlights
Operating net income per share of $3.84 increased 13.3% year over year. Operating revenues improved 10.7% year over year.
Adjusted expense ratio improved 300 bps, while adjusted combined ratio deteriorated 220 bps.
Financial Update
Book value per share, a measure of net worth, was up 23.3% year over year to $23.81 as of Dec 31, 2023.
NMI Holdings had $96.7 million in cash and cash equivalents, more than doubled from 2022-end. The debt balance of $397.6 million increased 0.4% from the end of 2022.
Annualized adjusted return on equity was 18%, which contracted 40 bps year over year.
Total PMIERs available assets were $2.7 billion and net risk-based required assets totaled $1.5 billion at the fourth quarter of 2023-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
The Travelers Companies (TRV - Free Report) reported fourth-quarter 2023 core income of $7.01 per share, which beat the Zacks Consensus Estimate of $5.04. The bottom line more than doubled year over year, driven by higher underlying underwriting gain, lower catastrophe losses and higher net investment income. Travelers’ total revenues increased 13.5% from the year-ago quarter to $10.9 billion, primarily driven by higher premiums. The top-line figure beat the Zacks Consensus Estimate by 0.2%.
Net written premiums increased 13% year over year to about $10 billion, driven by strong growth across all three segments. The figure was higher than our estimate of $9.7 billion. TRV witnessed an underwriting gain of $1.4 billion, up more than three-fold year over year, driven by higher business volumes. The combined ratio improved 870 bps year over year to 85.8, driven by a lower underlying combined ratio and catastrophe losses.
The Progressive Corporation’s (PGR - Free Report) fourth-quarter 2023 earnings per share of $2.96 beat the Zacks Consensus Estimate of $2.38. The bottom line improved 97.3% year over year. Operating revenues of $16.6 billion beat the Zacks Consensus Estimate by 3% and increased 23.2% year over year.
Net premiums written were $15.1 billion in the quarter, up 21% from $12.5 billion a year ago. PGR’s premiums beat our estimate of $14 billion. Net premiums earned grew 22% to $15.8 billion and beat our estimate of $14.8 billion.
Progressive’s combined ratio improved 520 bps from the prior-year quarter’s level to 88.7.
W.R. Berkley Corporation’s (WRB - Free Report) fourth-quarter 2023 operating income of $1.45 per share beat the Zacks Consensus Estimate of $1.35 by 7.4%. The bottom line improved 25% year over year. Operating revenues came in at $3.2 billion, up 9.3% year over year, on the back of higher net premiums earned as well as improved net investment income. The top line beat the consensus estimate by 1.3%
W.R. Berkley’s net premiums written were $2.7 billion, up 12% year over year. The figure was lower than our estimate of $2.8 billion. Pre-tax underwriting income increased 8.2% to $315.9 million. The consolidated combined ratio remained flat year over year at 88.4.