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NMI Holdings (NMIH) Q2 Earnings and Revenues Top, Rise Y/Y

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NMI Holdings NMIH reported second-quarter 2021 operating net income per share of 67 cents, which beat the Zacks Consensus Estimate by 6.4%. The bottom line increased 67.5% year over year.

Quarterly performance benefited from significant new business production, strong growth in high quality and shared portfolio and record financial results.

NMI Holdings Inc Price, Consensus and EPS Surprise

NMI Holdings Inc Price, Consensus and EPS Surprise
NMI Holdings Inc Price, Consensus and EPS Surprise

NMI Holdings Inc price-consensus-eps-surprise-chart | NMI Holdings Inc Quote

Operational Update

NMI Holdings recorded total operating revenues of $121 million, which increased 12% year over year on higher net premiums earned (up 12%) and net investment income (up 32.7%). Revenues beat the Zacks Consensus Estimate by about 1%.

Primary insurance-in-force increased 38% to $136.6 billion.

New insurance written was $22.6 billion, up 73.4% year over year.

Annual persistency was 53.9%, down from 64.1% in the year-ago quarter.

Net underwriting and operating expenses totaled $34.7 million, up 14.1% year over year. Insurance claims and claim expenses were $4.6 million, down 86.6%.

Loss ratio was 4.2, which improved 3050 basis points year over year. Expense ratio of 31.3 deteriorated 60 basis points year over year while combined ratio of 35.5 improved 2990 basis points year over year.

Financial Update

Book value per share, a measure of net worth, grew 15% year over year to $17.03 as of Jun 30, 2021.

NMI Holdings had $2.1 billion in cash and investments, up 11% from 2020 end. Debt balance of $393.9 million increased 0.2% from 2020 end.

Annualized adjusted return on equity was 16.4%, up 570 basis points.

Total PMIERs available assets were $1.9 billion and net risk-based required assets totaled $1.2 billion at second-quarter 2021 end.

Zacks Rank

NMI Holdings 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 Property & Casualty Insurers

Of the insurance industry players that have reported second-quarter results so far, The Travelers Companies TRV, The Progressive Corporation PGR and RLI Corporation’s RLI earnings beat the Zacks Consensus Estimate.



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