We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
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 Q4 Earnings and Revenues Miss Estimates, Premiums Up Y/Y
Read MoreHide Full Article
NMI Holdings (NMIH - Free Report) reported fourth-quarter 2024 operating net income per share of $1.07, which missed the Zacks Consensus Estimate by 3.6%. The bottom line increased 5.9% year over year.
NMI Holdings’ total operating revenues of $167 million increased 10.6% year over year on higher net premiums earned (up 8%) and net investment income (up 25%). Revenues, however, missed the Zacks Consensus Estimate by 1.7%.
Primary insurance in force increased 7% to $210.2 billion. Annual persistency was 84.6%, down 150 basis points (bps) year over year. New insurance written was $11.9 billion, up 34% year over year.
Underwriting and operating expenses totaled $31.1 million, up 5% year over year. Insurance claims and claim expenses were $17.3 million, up 110% year over year.
The loss ratio of 12% deteriorated 580 bps year over year. Expense ratio improved 70 bps year over year while the combined ratio of 34 deteriorated 580 bps year over year.
Full-Year Highlights
Operating net income per share of $4.50 missed the Zacks Consensus Estimate of $4.54. The bottom line increased 5.9% year over year.
Total operating revenues of $650.9 million increased 12.4% year over year. Revenues missed the Zacks Consensus Estimate of $653.8 million.
Loss ratio deteriorated 120 bps year over year to 5.6% while combined ratio of 266 deteriorated 50 bps year over year.
Financial Update
Book value per share, a measure of net worth, was up 18.5% year over year to $28.2.1 as of Dec. 31, 2024. NMI Holdings had $54.3 million in cash and cash equivalents, which decreased 43.8% from 2023 end. The debt balance of $415 million increased 4.4% from the end of 2023.
The annualized adjusted return on equity was 17% in 2024, which contracted 80 bps year over year. Total PMIERs available assets were $3.1 billion. Net risk-based required assets totaled $1.8 billion at the end of 2024.
Share Buyback Update
The board of directors approved an additional $250 million share repurchase plan effective through Dec. 31, 2027.
Radian Group Inc. (RDN - Free Report) reported fourth-quarter 2024 adjusted operating income of $1.09 per share, which beat the Zacks Consensus Estimate by 14.7%. The bottom line increased 13.5% year over year. Operating revenues decreased 4% year over year to $316 million due to lower services revenues. Net premiums earned were $238.5 million, which increased 2.5% year over year. MI New Insurance Written increased 24% year over year to $13.2 billion. Primary mortgage insurance in force increased 2% year over year to an all-time high of $275.1 billion as of Dec. 31, 2024.
MGIC Investment Corporation (MTG - Free Report) reported fourth-quarter 2024 operating net income per share of 72 cents, which beat the Zacks Consensus Estimate by 10.8%. Moreover, the bottom line increased 10.2% year over year. MGIC Investment recorded total operating revenues of $303.1 million, which increased 6.4% year over year on higher net investment income, net premiums earned and other revenues. The top line, however, missed the consensus mark by 1.1%.
Insurance in force increased 0.6% from the prior-year quarter to $295.4 billion. The Zacks Consensus Estimate was $294 billion. Our estimate was $293.6 billion. The insurer witnessed a 4.4% increase in primary delinquency to 26,791 loans. For the quarter under review, the loss ratio was 3.6% against negative 4.2% in the fourth quarter of 2023. Underwriting expense ratio was 20.8, marking an improvement of 380 bps year over year.
W.R. Berkley Corporation’s (WRB - Free Report) fourth-quarter 2024 operating income of $1.13 per share beat the Zacks Consensus Estimate by 20.2%. The bottom line improved 17.7% year over year. Operating revenues were $3.5 billion, up 9.2% year over year. The top line beat the consensus estimate by 4.2%
W.R. Berkley’s net premiums written were $2.9 billion, up 8% year over year. The figure was lower than our estimate of $3 billion. The consolidated combined ratio (a measure of underwriting profitability) deteriorated 180 bps year over year to 90.2%. The Zacks Consensus Estimate was 91%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
NMI Holdings Q4 Earnings and Revenues Miss Estimates, Premiums Up Y/Y
NMI Holdings (NMIH - Free Report) reported fourth-quarter 2024 operating net income per share of $1.07, which missed the Zacks Consensus Estimate by 3.6%. The bottom line increased 5.9% year over year.
See the Zacks Earnings Calendar to stay ahead of market-making news.
The quarterly results reflected higher premiums and net investment income but lower persistency.
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 $167 million increased 10.6% year over year on higher net premiums earned (up 8%) and net investment income (up 25%). Revenues, however, missed the Zacks Consensus Estimate by 1.7%.
Primary insurance in force increased 7% to $210.2 billion.
Annual persistency was 84.6%, down 150 basis points (bps) year over year.
New insurance written was $11.9 billion, up 34% year over year.
Underwriting and operating expenses totaled $31.1 million, up 5% year over year. Insurance claims and claim expenses were $17.3 million, up 110% year over year.
The loss ratio of 12% deteriorated 580 bps year over year. Expense ratio improved 70 bps year over year while the combined ratio of 34 deteriorated 580 bps year over year.
Full-Year Highlights
Operating net income per share of $4.50 missed the Zacks Consensus Estimate of $4.54. The bottom line increased 5.9% year over year.
Total operating revenues of $650.9 million increased 12.4% year over year. Revenues missed the Zacks Consensus Estimate of $653.8 million.
Loss ratio deteriorated 120 bps year over year to 5.6% while combined ratio of 266 deteriorated 50 bps year over year.
Financial Update
Book value per share, a measure of net worth, was up 18.5% year over year to $28.2.1 as of Dec. 31, 2024. NMI Holdings had $54.3 million in cash and cash equivalents, which decreased 43.8% from 2023 end. The debt balance of $415 million increased 4.4% from the end of 2023.
The annualized adjusted return on equity was 17% in 2024, which contracted 80 bps year over year. Total PMIERs available assets were $3.1 billion. Net risk-based required assets totaled $1.8 billion at the end of 2024.
Share Buyback Update
The board of directors approved an additional $250 million share repurchase plan effective through Dec. 31, 2027.
Zacks Rank
NMIH 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
Radian Group Inc. (RDN - Free Report) reported fourth-quarter 2024 adjusted operating income of $1.09 per share, which beat the Zacks Consensus Estimate by 14.7%. The bottom line increased 13.5% year over year. Operating revenues decreased 4% year over year to $316 million due to lower services revenues.
Net premiums earned were $238.5 million, which increased 2.5% year over year. MI New Insurance Written increased 24% year over year to $13.2 billion. Primary mortgage insurance in force increased 2% year over year to an all-time high of $275.1 billion as of Dec. 31, 2024.
MGIC Investment Corporation (MTG - Free Report) reported fourth-quarter 2024 operating net income per share of 72 cents, which beat the Zacks Consensus Estimate by 10.8%. Moreover, the bottom line increased 10.2% year over year. MGIC Investment recorded total operating revenues of $303.1 million, which increased 6.4% year over year on higher net investment income, net premiums earned and other revenues. The top line, however, missed the consensus mark by 1.1%.
Insurance in force increased 0.6% from the prior-year quarter to $295.4 billion. The Zacks Consensus Estimate was $294 billion. Our estimate was $293.6 billion. The insurer witnessed a 4.4% increase in primary delinquency to 26,791 loans. For the quarter under review, the loss ratio was 3.6% against negative 4.2% in the fourth quarter of 2023. Underwriting expense ratio was 20.8, marking an improvement of 380 bps year over year.
W.R. Berkley Corporation’s (WRB - Free Report) fourth-quarter 2024 operating income of $1.13 per share beat the Zacks Consensus Estimate by 20.2%. The bottom line improved 17.7% year over year. Operating revenues were $3.5 billion, up 9.2% year over year. The top line beat the consensus estimate by 4.2%
W.R. Berkley’s net premiums written were $2.9 billion, up 8% year over year. The figure was lower than our estimate of $3 billion. The consolidated combined ratio (a measure of underwriting profitability) deteriorated 180 bps year over year to 90.2%. The Zacks Consensus Estimate was 91%.