We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
NMI Holdings (NMIH) Q1 Earnings and Revenues Beat, Rise Y/Y
Read MoreHide Full Article
NMI Holdings (NMIH - Free Report) reported first-quarter 2024 operating net income per share of $1.08, which beat the Zacks Consensus Estimate by 12.5%. The bottom line increased 22.7% 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 $156 million increased 13.8% year over year on higher net premiums earned (up 12.2%) and net investment income (up 30.5%). Revenues beat the Zacks Consensus Estimate by 2.5%.
Primary insurance in force increased 7.1% to $199.4186.7 billion. Annual persistency was 85.8%, up 70 basis points (bps) year over year. New insurance written was $9.4 billion, up 7.6% year over year.
Underwriting and operating expenses totaled $29.8 million, up 15.5% year over year. Insurance claims and claim expenses were $3.7 million, reflecting a drop of 44.7% year over year. The loss ratio was 2.7, which improved 280 bps year over year.
The adjusted expense ratio of 22.4 deteriorated 60 bps year over year, while the adjusted combined ratio of 24.5 improved 60 bps year over year.
NMI Holdings Inc Price, Consensus and EPS Surprise
Book value per share, a measure of net worth, was up 3.1% year over year to $24.56 as of Mar 31, 2024.
NMI Holdings had $139.7 million in cash and cash equivalents, which increased 44.5% from 2023 end. The debt balance of $397.6 million increased 0.1% from the end of 2023.
The annualized adjusted return on equity was 18.2%, which expanded 30 bps year over year.
Total PMIERs available assets were $2.8 billion and net risk-based required assets totaled $1.6 billion at the end of first-quarter 2024.
The Travelers Companies (TRV - Free Report) reported first-quarter 2024 core income of $4.69 per share, which missed the Zacks Consensus Estimate of $4.75 on higher-than-expected catastrophe loss. The bottom line increased 14.1% year over year, driven by higher underlying underwriting gain and higher net investment income, partially offset by higher catastrophe losses. Travelers’ total revenues increased 15.3% from the year-ago quarter to $11.2 billion, primarily driven by higher premiums. The top-line figure beat the Zacks Consensus Estimate by 0.1%.
Net written premiums increased 8% year over year to about $10.2 billion, driven by strong growth across all three segments. The figure was higher than our estimate of $9.9 billion. Travelers witnessed an underwriting gain of $1.4 billion, up 57.3% year over year, driven by higher business volumes.
Consolidated underlying combined ratio of 87.7 improved 290 bps year over year. The combined ratio improved 150 bps year over year to 93.9 due to an improvement in the underlying combined ratio, partially offset by higher catastrophe losses and lower net favorable prior-year reserve development. The Zacks Consensus Estimate was pegged at 94.
Progressive Corporation’s (PGR - Free Report) first-quarter 2024 earnings per share of $3.83 beat the Zacks Consensus Estimate of $3.20. The bottom line improved nearly eight times year over year. Operating revenues of $17.1 billion beat the Zacks Consensus Estimate by 2.4% and increased 20.1% year over year.
Net premiums earned grew 19% to $16 billion and beat our estimate of $14.4 billion. Combined ratio — the percentage of premiums paid out as claims and expenses — improved 1,290 bps from the prior-year quarter’s level to 86.1.
RLI Corp. (RLI - Free Report) reported first-quarter 2024 operating earnings of $1.89 per share, beating the Zacks Consensus Estimate as well as the year-ago number by 16%. The quarterly results reflected continued premium growth across all product segments. Operating revenues for the reported quarter were $394 million, up 17.6% year over year, driven by 17% higher net premiums earned and 21.3% higher net investment income. The top line, however, missed the Zacks Consensus Estimate by 0.1%.
Gross premiums written increased 13% year over year to $468 million. This uptick can be attributed to the solid performance of the Casualty (up 12.6%), Property (up 13.5%) and Surety (up 12.1%) segments. Our estimate was $511 million. Underwriting income of $77.7 million increased 16%. Combined ratio deteriorated 60 bps year over year to 78.5. The Zacks Consensus Estimate for the metric was pegged at 85, while our estimate was 77.7.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
NMI Holdings (NMIH) Q1 Earnings and Revenues Beat, Rise Y/Y
NMI Holdings (NMIH - Free Report) reported first-quarter 2024 operating net income per share of $1.08, which beat the Zacks Consensus Estimate by 12.5%. The bottom line increased 22.7% 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 $156 million increased 13.8% year over year on higher net premiums earned (up 12.2%) and net investment income (up 30.5%). Revenues beat the Zacks Consensus Estimate by 2.5%.
Primary insurance in force increased 7.1% to $199.4186.7 billion. Annual persistency was 85.8%, up 70 basis points (bps) year over year. New insurance written was $9.4 billion, up 7.6% year over year.
Underwriting and operating expenses totaled $29.8 million, up 15.5% year over year. Insurance claims and claim expenses were $3.7 million, reflecting a drop of 44.7% year over year. The loss ratio was 2.7, which improved 280 bps year over year.
The adjusted expense ratio of 22.4 deteriorated 60 bps year over year, while the adjusted combined ratio of 24.5 improved 60 bps 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, was up 3.1% year over year to $24.56 as of Mar 31, 2024.
NMI Holdings had $139.7 million in cash and cash equivalents, which increased 44.5% from 2023 end. The debt balance of $397.6 million increased 0.1% from the end of 2023.
The annualized adjusted return on equity was 18.2%, which expanded 30 bps year over year.
Total PMIERs available assets were $2.8 billion and net risk-based required assets totaled $1.6 billion at the end of first-quarter 2024.
Zacks Rank
NMIH 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
The Travelers Companies (TRV - Free Report) reported first-quarter 2024 core income of $4.69 per share, which missed the Zacks Consensus Estimate of $4.75 on higher-than-expected catastrophe loss. The bottom line increased 14.1% year over year, driven by higher underlying underwriting gain and higher net investment income, partially offset by higher catastrophe losses. Travelers’ total revenues increased 15.3% from the year-ago quarter to $11.2 billion, primarily driven by higher premiums. The top-line figure beat the Zacks Consensus Estimate by 0.1%.
Net written premiums increased 8% year over year to about $10.2 billion, driven by strong growth across all three segments. The figure was higher than our estimate of $9.9 billion. Travelers witnessed an underwriting gain of $1.4 billion, up 57.3% year over year, driven by higher business volumes.
Consolidated underlying combined ratio of 87.7 improved 290 bps year over year. The combined ratio improved 150 bps year over year to 93.9 due to an improvement in the underlying combined ratio, partially offset by higher catastrophe losses and lower net favorable prior-year reserve development. The Zacks Consensus Estimate was pegged at 94.
Progressive Corporation’s (PGR - Free Report) first-quarter 2024 earnings per share of $3.83 beat the Zacks Consensus Estimate of $3.20. The bottom line improved nearly eight times year over year. Operating revenues of $17.1 billion beat the Zacks Consensus Estimate by 2.4% and increased 20.1% year over year.
Net premiums earned grew 19% to $16 billion and beat our estimate of $14.4 billion. Combined ratio — the percentage of premiums paid out as claims and expenses — improved 1,290 bps from the prior-year quarter’s level to 86.1.
RLI Corp. (RLI - Free Report) reported first-quarter 2024 operating earnings of $1.89 per share, beating the Zacks Consensus Estimate as well as the year-ago number by 16%. The quarterly results reflected continued premium growth across all product segments. Operating revenues for the reported quarter were $394 million, up 17.6% year over year, driven by 17% higher net premiums earned and 21.3% higher net investment income. The top line, however, missed the Zacks Consensus Estimate by 0.1%.
Gross premiums written increased 13% year over year to $468 million. This uptick can be attributed to the solid performance of the Casualty (up 12.6%), Property (up 13.5%) and Surety (up 12.1%) segments. Our estimate was $511 million. Underwriting income of $77.7 million increased 16%. Combined ratio deteriorated 60 bps year over year to 78.5. The Zacks Consensus Estimate for the metric was pegged at 85, while our estimate was 77.7.