NMI Holdings NMIH 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.

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 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 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 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%.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

MGIC Investment Corporation (MTG) : Free Stock Analysis Report

W.R. Berkley Corporation (WRB) : Free Stock Analysis Report

Radian Group Inc. (RDN) : Free Stock Analysis Report

NMI Holdings Inc (NMIH) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research