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NMI Holdings Q3 Earnings, Revenues Top Estimates, Premiums Up Y/Y
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NMI Holdings (NMIH - Free Report) reported third-quarter 2024 operating net income per share of $1.15, which beat the Zacks Consensus Estimate by 4.6%. The bottom line increased 15% 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.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
NMI Holdings Inc Price, Consensus and EPS Surprise
NMI Holdings’ total operating revenues of $166 million increased 12.3% year over year on higher net premiums earned (up 10.2%) and net investment income (up 25.8%). Revenues beat the Zacks Consensus Estimate by 0.7%.
Primary insurance in force increased 6.5% to $207.5 billion. Annual persistency was 85.5%, up 10 basis points (bps) year over year. New insurance written was $12.2 billion, down 2% year over year.
Underwriting and operating expenses totaled $29.2 million, up 5.1% year over year. Insurance claims and claim expenses were $10.3 million, more than doubling year over year. The loss ratio was 7.2, which deteriorated 350 bps.
The adjusted expense ratio of 20.1 deteriorated 20 bps year over year, while the adjusted combined ratio of 27.5 fell 720 bps.
Financial Update
Book value per share, a measure of net worth, was up 7.8% year over year to $27.67 as of Sept. 30, 2024.
NMI Holdings had $133.3 million in cash and cash equivalents, which decreased 37.9% from 2023 end. The debt balance of $414.5 million increased 4.3% from the end of 2023.
The annualized adjusted return on equity was 17.5%, which contracted 150 bps year over year.
Total PMIERs available assets were $3 billion. Net risk-based required assets totaled $1.7 billion at the end of third-quarter 2024.
The Travelers Companies (TRV - Free Report) reported third-quarter 2024 core income of $5.24 per share, which beat the Zacks Consensus Estimate by 38.2%. Total revenues increased 10.7% from the year-ago quarter to $11.84 billion, primarily driven by higher premiums, net investment income, fee income and other revenues. The top-line figure beat the Zacks Consensus Estimate by 1.4%.
Travelers’ net written premiums increased 8% year over year to a record $11.31 billion, driven by strong growth across all three segments. The figure was higher than our estimate of $10.5 billion. Travelers witnessed an underwriting gain of $685 million against a loss of $136 million incurred in the year-ago quarter. The consolidated underlying combined ratio of 85.6 improved 500 bps year over year. The combined ratio improved 780 bps year over year to 93.2 due to an improvement in the underlying combined ratio and net favorable prior-year reserve development.
The Progressive Corporation’s (PGR - Free Report) third-quarter 2024 earnings per share of $3.97 beat the Zacks Consensus Estimate of $3.40. The bottom line more than doubled year over year. Operating revenues of $19.5 billion improved 24.9% year over year and beat the consensus estimate by 2.6%.
Net premiums written were $19.5 billion in the quarter, up 25% from $15.6 billion a year ago. Combined ratio — the percentage of premiums paid out as claims and expenses — improved 340 bps from the prior-year quarter’s level to 89.
RLI Corp. (RLI - Free Report) reported third-quarter 2024 operating earnings of $1.31 per share, beating the Zacks Consensus Estimate by 33.7%. The bottom line more than doubled year over year. Operating revenues for the reported quarter were $426 million, up 1.4% year over year. The top line beat the Zacks Consensus Estimate of $420 million.
Gross premiums written increased 13% year over year to $563.4 million. This uptick can be attributed to the solid performance of the Casualty (up 15.7%), Property (up 9.6%) and Surety segments (up 9%). Our estimate was $572.3 million. Underwriting income increased to $40.7 million from $4.2 million in the year-ago quarter. The combined ratio improved 910 bps year over year to 89.6. The Zacks Consensus Estimate for the metric was pegged at 96, while our estimate was 103.1.
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NMI Holdings Q3 Earnings, Revenues Top Estimates, Premiums Up Y/Y
NMI Holdings (NMIH - Free Report) reported third-quarter 2024 operating net income per share of $1.15, which beat the Zacks Consensus Estimate by 4.6%. The bottom line increased 15% 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.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
NMI Holdings Inc Price, Consensus and EPS Surprise
NMI Holdings Inc price-consensus-eps-surprise-chart | NMI Holdings Inc Quote
Operational Update
NMI Holdings’ total operating revenues of $166 million increased 12.3% year over year on higher net premiums earned (up 10.2%) and net investment income (up 25.8%). Revenues beat the Zacks Consensus Estimate by 0.7%.
Primary insurance in force increased 6.5% to $207.5 billion. Annual persistency was 85.5%, up 10 basis points (bps) year over year. New insurance written was $12.2 billion, down 2% year over year.
Underwriting and operating expenses totaled $29.2 million, up 5.1% year over year. Insurance claims and claim expenses were $10.3 million, more than doubling year over year. The loss ratio was 7.2, which deteriorated 350 bps.
The adjusted expense ratio of 20.1 deteriorated 20 bps year over year, while the adjusted combined ratio of 27.5 fell 720 bps.
Financial Update
Book value per share, a measure of net worth, was up 7.8% year over year to $27.67 as of Sept. 30, 2024.
NMI Holdings had $133.3 million in cash and cash equivalents, which decreased 37.9% from 2023 end. The debt balance of $414.5 million increased 4.3% from the end of 2023.
The annualized adjusted return on equity was 17.5%, which contracted 150 bps year over year.
Total PMIERs available assets were $3 billion. Net risk-based required assets totaled $1.7 billion at the end of third-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 third-quarter 2024 core income of $5.24 per share, which beat the Zacks Consensus Estimate by 38.2%. Total revenues increased 10.7% from the year-ago quarter to $11.84 billion, primarily driven by higher premiums, net investment income, fee income and other revenues. The top-line figure beat the Zacks Consensus Estimate by 1.4%.
Travelers’ net written premiums increased 8% year over year to a record $11.31 billion, driven by strong growth across all three segments. The figure was higher than our estimate of $10.5 billion. Travelers witnessed an underwriting gain of $685 million against a loss of $136 million incurred in the year-ago quarter. The consolidated underlying combined ratio of 85.6 improved 500 bps year over year. The combined ratio improved 780 bps year over year to 93.2 due to an improvement in the underlying combined ratio and net favorable prior-year reserve development.
The Progressive Corporation’s (PGR - Free Report) third-quarter 2024 earnings per share of $3.97 beat the Zacks Consensus Estimate of $3.40. The bottom line more than doubled year over year. Operating revenues of $19.5 billion improved 24.9% year over year and beat the consensus estimate by 2.6%.
Net premiums written were $19.5 billion in the quarter, up 25% from $15.6 billion a year ago. Combined ratio — the percentage of premiums paid out as claims and expenses — improved 340 bps from the prior-year quarter’s level to 89.
RLI Corp. (RLI - Free Report) reported third-quarter 2024 operating earnings of $1.31 per share, beating the Zacks Consensus Estimate by 33.7%. The bottom line more than doubled year over year. Operating revenues for the reported quarter were $426 million, up 1.4% year over year. The top line beat the Zacks Consensus Estimate of $420 million.
Gross premiums written increased 13% year over year to $563.4 million. This uptick can be attributed to the solid performance of the Casualty (up 15.7%), Property (up 9.6%) and Surety segments (up 9%). Our estimate was $572.3 million. Underwriting income increased to $40.7 million from $4.2 million in the year-ago quarter. The combined ratio improved 910 bps year over year to 89.6. The Zacks Consensus Estimate for the metric was pegged at 96, while our estimate was 103.1.