On July 30, 2024, NMI Holdings Inc (NMIH, Financial) released its 8-K filing reporting record financial results for the second quarter of 2024. NMI Holdings Inc, through its subsidiaries, provides private mortgage guaranty insurance, offering mortgage insurance, reinsurance on loans, and outsourced loan review services to mortgage loan originators.
Performance Overview
NMI Holdings Inc (NMIH, Financial) reported net income of $92.1 million, or $1.13 per diluted share, surpassing the analyst estimate of $1.05 per share. This represents a 4% increase from the previous quarter's $1.08 per share and a 19% increase from $0.95 per share in the same quarter last year. Adjusted net income was $97.6 million, or $1.20 per diluted share, exceeding the previous quarter's $1.08 per share and the prior year's $0.95 per share.
Financial Achievements
Total revenue for the quarter was $162.1 million, up from $156.3 million in the previous quarter and $142.7 million in the same quarter last year. Net premiums earned were $141.2 million, compared to $136.7 million in the previous quarter and $126.0 million in the same quarter last year. The company’s primary insurance-in-force at the end of the quarter was $203.5 billion, up from $199.4 billion at the end of the previous quarter and $191.3 billion at the end of the same quarter last year.
Key Metrics and Financial Statements
| Metric | Q2 2024 | Q1 2024 | Q2 2023 | Q/Q Change | Y/Y Change |
|---|---|---|---|---|---|
| Net Premiums Earned | $141.2M | $136.7M | $126.0M | 3% | 12% |
| Net Investment Income | $20.7M | $19.4M | $16.5M | 7% | 25% |
| Insurance Claims and Claim Expenses | $0.3M | $3.7M | $2.9M | (92%) | (90%) |
| Underwriting and Operating Expenses | $28.3M | $29.8M | $27.4M | (5%) | 3% |
| Adjusted Net Income | $97.6M | $89.0M | $80.3M | 10% | 22% |
| Adjusted Diluted EPS | $1.20 | $1.08 | $0.95 | 11% | 26% |
Analysis and Commentary
Adam Pollitzer, President and Chief Executive Officer of National MI, commented,
“In the second quarter, we again delivered standout operating performance, strong growth in our high-quality insured portfolio, and record financial results. We have built an exceptionally high-quality book covered by a comprehensive set of risk transfer solutions, our credit performance continues to stand ahead, and we have a robust balance sheet supported by the significant earnings power of our platform. Looking forward, we’re well positioned to continue delivering differentiated growth, returns and value for our shareholders.”
Balance Sheet and Cash Flow
As of June 30, 2024, NMI Holdings Inc (NMIH, Financial) reported total assets of $3.1 billion, up from $2.94 billion at the end of 2023. Shareholders' equity stood at $2.0 billion, with a book value per share of $25.65. Excluding net unrealized gains and losses, the book value per share was $27.54, reflecting a 4% increase from the previous quarter and a 17% increase from the same quarter last year.
Conclusion
NMI Holdings Inc (NMIH, Financial) has demonstrated strong financial performance in Q2 2024, exceeding analyst estimates and showcasing robust growth in its insured portfolio. The company's strategic focus on high-quality risk transfer solutions and strong credit performance positions it well for continued success in the mortgage insurance industry.
Explore the complete 8-K earnings release (here) from NMI Holdings Inc for further details.
